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A Research Project Report ON

SERVICE QUALITY AND CONSUMER SATISFACTION STUDY FOR MARUTI SERVICE CENTER IN CHANDIGARH

PREFACE

The research project program is the integral part of MBA curriculum during the course of training ; the trainees are expected to use and apply their academic knowledge and gain a valuable insight into corporate culture with all its environment operational complexities. The training offers a valuable opportunity to the trainee to meet their academic knowledge to the real world situation. I have undertaken commercial department to study about the various activities done in this department in details, as the result of that I came out with the project title. Service Quality And Consumer Satisfaction For Maruti Service Center in this report I have put my finest efforts to compile the data with utmost accuracy and hope this report will give complete satisfaction regarding the various aspects of Service & Consumer Satisfaction activity.

Ankit Pathak M.B.A IV Sem Roll No - 1006470005

ACKNOWLEDGEMENT

This is a great opportunity to acknowledge and to thanks all those persons without whose support and help this project would have been impossible. We would like to add a few heartfelt words for the people who were part of this project in numerous ways. I would like to thanks to my project guide MS. RIJU AGRAWAL for her indefatigable guidance, valuable suggestion, moral support, constant encouragement and contribution of time for the successful completion of project work. I am very grateful to her, for providing all the facilities needed during the project development. I Also thank my counsellors for his indispensable support and encouragement thought the project. I would like to thank project guide & all those who helped me directly or indirectly.

Ankit Pathak

M.B.A IV Sem

Roll No- 1006470005

DECLARATION

I, ANKIT PATHAK , student of MBA (Master of Business Administration) IV Sem from HINDUSTAN COLLEGE OF SCIENCE AND TECHNOLOGY, MATHURA, Affiliated to MAHAMAYA TECHNICAL UNIVERSITY, NOIDA, here by declare that the following report Service Quality And Consumer Satisfaction For Maruti Service Center is an original piece of work no part of this project is either copied of partially or totally taken from some previous works.

Ankit Pathak M.B.A IV Sem Roll No- 1006470005

INDEX
Introduction..7 Objectives of the Study..9 Company Profile..10
o Milestones.12 o Awards16 o ISO 9001:2000 certificate.19

Maruti Products24 Research Methodology..39


Market Research..40 o Customer Satisfaction.41 o Market Segmentation..45 o Positioning..46 o Suppliers.47 o Advertising & Communication...47 o Values & Vision48 Maruti Authorized Service Network.50 o Wider Area Coverage52
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o Better service quality..53

Survey.60 o Survey Findings...61


o SWOT Analysis.64 o SCM Strategies.66

Recommendation 69 Limitation of Study..70 Findings & Interpretation....71 Summary & Conclusion.73 Bibliography..75 Appendices.76
o Questionnaire.76

INTRODUCTION
India is one of the most important emerging car economies in the world today. Premier Automobile Ltd. (PAL) earned the distinction of manufacturing the first car in the country. Hindustan Motors (HM), which started as a manufacturer of auto components graduated to manufacture cars in 1949. Thanks to the Licence Raj which restricted foreign competitors to enter the Indian car market, Indian roads were ruled by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for many of the initial years. The control imposed on car makers related to production capacity and distribution. The GOI control even extended to fixation of prices for cars and dealer commissions. The three decades of the passenger car industry in India up to the early 1980s, proved to be the 'dark ages' for the consumer, as his choice throughout this period was limited to two models Ambassador and Padmini. It was only in 1981, after the entry of Maruti Udyog, that the car makers were given a free hand to fix the prices of cars, thus, effectively abolishing all controls relating to the pricing of the end product.

In the early 80's, a series of liberal policy changes were announced marking another turning point for the automobile industry. The very face of the industry was changed for ever in 1983 with the entry of public sector Maruti Udyog in a joint venture with the Suzuki Corporation of Japan. Maruti Udyog Ltd introduced 'Maruti 800' in 1983 providing a complete face lift to the Indian car industry. The car was launched as a "Peoples car" with a price tag of Rs 40,000. This changed the industry's profile dramatically. Maruti 800 was well accepted by middle income families in the country. Many companies have entered the car manufacturing sector, to tap the middle and premium end of car industry. The new entrants are Daewoo (Matiz), Tata (Indica) and Hyundai (Santro) in upper end of economy car market. GM, Ford, Peugeot, Mitsubishi, Honda and Fiat has entered the mid-sized car segment and Mercedes-Benz is in the premium end of market.

OBJECTIVE OF THE STUDY


To know the current and future standing of the Maruti Udyog Ltd. To know the visions and values of the company. To calculate the market of different brands of Maruti. To find out the main factor affecting the buying behavior or buying decision of the consumers. To know the effectiveness of advertisement of Maruti cars in buying decision of the customer. To know the position and segments in which the whole market is divided. To know the level of consumer satisfaction and the factors affects it. To know the level of service quality for maruti service center.

COMPANY PROFILE
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to Maruti Udyog Limited contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A license and a Joint Venture agreement was signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives of MUL then were:

Modernization of the Indian Automobile Industry. Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth. SMC and MUL have drawn up an investment plan of Rs 9000 crore in India upto 2010.

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Vision
"The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India"

Core Values
Customer Obsession Fast, Flexible and First Mover Innovation and Creativity Networking and Partnership Openness and Learning

Technological Advantage
We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuelefficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car. Our other innovation has been the introduction of Electronic Power Steering (EPS) in select models. This results in better and greater maneuverability. In other words, our cars have become even more pleasurable to drive.

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Production/R & D
Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti Udyog Plant has already rolled out over 6.3 million vehicles. In fact, on an average, two vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to make a car. More importantly, with an incredible range of 11 models available in 50 variants, there's a Maruti Suzuki made here to fit every car-buyer's budget, and dream. SMC and MUL have drawn up an investment plan of Rs 9000 corer in India up to 2010.

Production Milestones

1st vehicle produced, December 1983 1,00,000 vehicles produced by August, 1986 5,00,000 vehicles produced by June, 1990 10,00,000 vehicles produced by March, 1994 15,00,000 vehicles produced by April, 1996 20,00,000 vehicles produced by October, 1997 25,00,000 vehicles produced by March, 1999 30,00,000 vehicles produced by June, 2000 35,00,000 vehicles produced by December 2001 40,00,000 vehicles produced by April, 2003 45,00,000 vehicles produced by April, 2004 50,00,000 vehicles produced by April, 2005

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Milestones
2005 2004 The fiftieth lakh car rolls out in April, 2005 Growth in overall sales by 15.8% New (non A/C) variant of Alto Alto becomes India's new best selling car LPG variant of 'Omni Cargo' Versa 5-seater, a new variant Baleno LXi, a new variant Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago 2003 New Suzuki Grand Vitara XL-7 Redesigned and all-new Zen New upgraded WagonR Enters into partnership with State Bank of India Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times 2002 WagonR Pride Esteem Diesel. All other variants upgraded Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited Alto Spin LXi, with electronic power steering Special edition of Maruti 800, Indias first colourcoordinated car Maruti True value in Mumbai Maruti Finance in Mumbai with 10 finance companies Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 percent 2001 Zen LXi Maruti True Value launched in Bangalore and Delhi Maruti Versa, Indias first luxury MPV Alto Spin LXi, with electronic power steering 13

Alto Vxi Customer information centers launched in Hyderabad, Bangalore and Chennai Launch of versa 2000 First car company in India to launch a Call Center New Alto Altura, a luxury estate car IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits 1999 Maruti 800 EX ( 796cc, hatchback car) Zen LX (993cc, hatchback car) Zen VXi (993cc, hatchback car with power steering) Omni XL (796cc, MUV, high roof) Baleno (1600cc, 3 Box Car) Wagon R Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives 1998 Maruti launches website as part of CRM initiatives Zen D (1527 cc diesel, hatchback car) Zen VX & Zen VX Automatic New (Omni & Omni E) (796cc, MUV) Launch of website as part of CRM initiatives

1997

1998 Esteem (1299cc, 3 box car) LX, VX and AX New Maruti 800 (796cc,hatchback Car) Standard and Deluxe Produced the 2 millionth vehicle since the commencement of production

1996

Gypsy (E) (970cc, 4WD 8 seater) Omni (E) (796cc, MUV, 8 seater) Gypsy King (1298cc, 4WD, off road vehicle) Zen Automatic (993cc, hatchback car) Esteem 1.3L (1298 cc, 3 box Car)AX Launch of 24-hour emergency on-road vehicle service

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1995

Esteem 1.3L (1298 cc, 3 box car)VX With the launch of second plant, installed capacity reached 200,000 units

1994

Esteem1.3L (1298cc, 3 box car)LX Produced the 1 millionth vehicle since the commencement of production

1993 1992 1991 1990

Zen(993cc, hatchback Car), which was later exported in Europe and elsewhere as the Alto SMC increases its stake in Maruti to 50 percent Reaches cumulative indigenisation of 65 percent for all vehicles produced Maruti 1,000(970cc, 3 box), Indias first contemporary sedan

1988 1987 1986 1985 1984 1983 1982 1981

Installed capacity increased to 1,00,000 units Exported first lot of 500 cars to Hungary Maruti 800 (New Model-796cc, hatchback Car) Produced 1,00,000 vehicles (cumulative production) Launch of Maruti Gypsy (970cc, 4WD off-road vehicle) Omni, a 796cc MUV Installed capacity reached 40,000 units Maruti 800, a 796 cc hatchback, Indias first affordable car. Production was started under JVA License and JV agreement signed between Maruti Udyog Ltd. and SMC of Japan Maruti Udyog Ltd was incorporated under the provisions of the Indian Companies Act, 1956

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Awards
2005 Number one in JD Power SSI for the second consecutive year. Number one in JD Power CSI for the sixth time in a row the only car to win. it so many times. M800, WagonR and Swift topped their segments in the TNS Total. Customer Satisfaction Study. Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment. WagonR and Esteem top their segments in the JD Power APEAL study TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05 Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC (2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in India-Oct 04 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04

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2004 Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R) No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG 2003 Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (2001) for 4th time in a row 2001 MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first

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2000 Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world 1999 MSM launched as model workshop in India; achieves highest CSI rating. Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee 1998 CII's Business Excellence Award 1996 Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the Star Trading House status by Ministry of Commerce 1994-95 Engineering Exports Promotion Council's award for export performance 1994 Best Canteen award among Haryana Industries as part of employee welfare

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1992-93 Engineering Exports Promotion Council's award for export performance 1991-92 Engineering Exports Promotion Council's award for export performance

ISO 9001:2000
At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into the product". Technicians themselves inspect the quality of work. Supervisors educate and instruct technicians to continually improve productivity and quality. The movement of quality indicators is reviewed in weekly meetings by the top management. In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere in the world to get an ISO 9000:2000 certification. AV Belgium, global auditors for International Organization for Standardization(ISO), certified Maruti after a four day long audit, covering varied parameters like Customer Focused organization, Leadership, Involvement of people, Process approach, System approach to Management, Continual improvement, etc. In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance in production, installation, marketing and sales as well as after sales services. We were also one of the first companies in the world to pioneer ISO 9000 certification for our dealers. In October 1993, MUL passed the Conformity Of Production (COP) Audit, which is based on a European Union Directive. This authenticated our quality systems and testing facilities for export to Europe.
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The emphasis on total quality has meant that today it is in a position to guide vendors and dealers in establishing and consolidating their individual quality systems. This commitment to quality has ensured a consistently satisfying product and world-class sales and after-sales services.

Employee Quality Measures


Kaizen is based on the concept of making incremental improvements in its products. It incorporates a series of continuous small and simple improvements, which aim at involving employees at all levels. The Suggestion Scheme is based on the same principle. Under this scheme, employees are encouraged to make suggestions for improvement in any area of our operation. Over 50,000 suggestions are received from employees every year. Maruti has won the First place in "Excellence in Suggestion Scheme Contest 2003", which is the 6th consecutive award won in as many years. This contest is organized by Indian National Suggestion Schemes Association (INSSAN). Since 1998 Maruti has won this award 10 times. "Quality Circles" are groups of five to eight members from a particular work area who work as a team to identify priorities and solve work related problems in the area. It believe that it is this unwavering commitment to quality that will lead to the further growth of the organization as competition increases
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WHATS NEW

Maruti Leads March with Stellar Performance


Your favourite car company, Maruti Udyog Limited has closed the financial year 2005-06 with an annual sale of 6,72,122 units, the highest ever since the company began operations 20 years ago. This annual sale figure includes exports of 71175 units, the highest ever since Maruti began exporting cars in 1988, a growth of 59% over 2004-05. Maruti's annual sale in 2005-06 represents a growth of 30 per cent over 2004-05. During March 2006, the company sold 52700 units, including 8282 exports. This is the highest ever sale in the domestic market in a month by Maruti. This is also the highest ever export in a month by the company. The record sale performance was a fitting end to an eventful year during which the company's Public Issue was oversubscribed 10 times and became a landmark for the Indian stock markets and the Government's Divestment programme. During the year, Maruti earned further customer appreciation, being ranked FIRST in J D Power Customer Satisfaction Survey for a record fourth year in a row. The company's WagonR, Zen and Esteem models topped their categories in the J D Power Initial Quality Study 2005.

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Quality improvements along the chain, notably by the company's component suppliers, contributed to this achievement. Besides, WagonR was ranked FIRST in its category in Total Customer Satisfaction Survey conducted by NFO Automotive. The year also saw Maruti make major strides towards its goal of becoming Suzuki Motor Corporation's R and D hub for Asia outside Japan. It introduced upgraded versions of WagonR and Zen, the latter completely designed and styled inhouse. India's most popular car, Maruti 800, strengthened its leadership with a 17 per cent growth even as Maruti's partnership with State Bank of India and its Associate Banks enabled it to reach car finance to smaller towns and cities across the country. During the year, Maruti consolidated its leadership in the A 2 (premium compact) segment, with Alto growing by over 130 per cent and finishing as the country's fastest growing A2 Segment model for the year. With the launch of Grand Vitara XL-7 during the year, Maruti marked its entry into the top-end Luxury SUV segment of the Indian car market. The record sales performance was ably supported by Maruti's dealerships. During the year, the company ended its relationship with several non-performing dealerships and enhanced it with the good performers. The new car sales network grew from 243 outlets to 280, with coverage expanding from 160 cities to 182.

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The dealerships also participated in the expansion of Maruti's new businesses, including Maruti Insurance, Maruti Finance, Maruti True Value (Pre Owned cars) and N2N (Corporate Lease and Fleet Management Services). These services made Maruti vehicles even more attractive for customers. Maruti's service network, known for its size and quality, expanded to a landmark 1000 cities and towns during the year. The Maruti-managed Institute of Driving Training and Research in Delhi made major contribution to safe drivinq which was widely recoqnised. notably by the Hon'ble Delhi High Court.

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MARUTI PRODUCTS
Maruti Vitara
The Grand Vitara is handsome and a very capable off-road vehicle, it is above average at this end of the market with good quality fabrics and plastics. It is equipped with an ergonomic dashboard and is superbly backlit with great heating controls. The car has excellent headroom and rear legroom. However, front passenger foot well has limited legroom. The headrests are difficult to adjust, especially to get them at the correct height for our heads or necks. It is also difficult to adjust drivers seat with the door shut. Don't get me wrong the Suzuki Grand Vitara has true off road performance, car-like ease to drive and is excellent value for money. It would go where many a so-called four-wheel drive would falter without lacking comfort or refinement. The Grand Vitara comes with a security conscious integrated radio single slot CD player, which is capable and very easy to use. This machine is a joy to drive and an excellent alternative to the family car.

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Maruti Wagon R
The 1061cc MPFI low friction engine delivers an awesome 64bhp@6200rpm power for smoother pick-up and faster acceleration than other car engines in this category. A 16 bit on-board computer with diagnostic capability monitors engine performance continuously. It checks the condition of the engine as soon as you turn it on and monitors the air-fuel ratio for optimum fuel efficiency. The 4 valves per cylinder engine configuration gives better fuel economy than other cars. As per Autocar (May'04) WagonR gives a mileage of 14.15 kmpl as against 13.3 kmpl by Santro Xing. This has been made possible due to the superior WagonR engine. Dual Distributor-less Digital Ignition (DDLI) means an instant, hassle-free start every time and more efficient power distribution. A flat torque curve ensures quick pick-up at higher gears and lower rpm. You won't need to change the gears often. Its not just performance, WagonR also has numerous innovative features.

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accordingly, including a new engine. Wagon R is Japans top selling model, and it is to be seen if its success can be emulated in India.

Maruti Alto
The hottest little thing is really a hot cake among the car lovers. Just get inside and try this cool car. You will definitely fall in love with it. Finally your fantasy compact car is now a reality. It's unique features make it distinct from the other cars. The electronic tachometer helps improve unmatched fuel efficiency. It is also equipped with a remote controlled fuel lid and trunk opener. A digital trip meter indicated the miles you have enjoyed riding on this cool car. It is a highly safe car to drive on Indian roads. High tensile steel side door beams guard against front, rear and side collision impact. It has room for almost everything making it a real family car. Put all you want into a low roomy luggage compartment. It also has more boot space than other cars. Its seductive lines and stylish curves complement the muscular look. Two pressed lines on either side give it a distinct character and an unique halogen head lamp make it a beauty. The cool interiors of the car include a powerful AC, which is ideal for India's climate.

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Maruti Esteem
Looked at against other cars in the Indian market in the midsize segment, the Esteem seems a bit ordinary. For one, it definitely needs a new look as it is the replica of the earlier Maruti 1000 introduced in the mid-eighties. The Maruti 1000 was withdrawn as it was an extremely underpowered vehicle, and no one can deny that the Esteem has a great engine under its hood. The fact remains, though, that the design has been around for close to two decades and a new look could do wonders for the car. This is because the Esteem's main asset is its engine, which leaves no doubt in anyone's mind that the Japanese make the best petrol motors on this planet. The all-aluminium engine with its hollow camshaft, which cuts down rotational inertia, is extremely light and responsive. The Esteem typifies Suzuki's expertise in using the fourvalve-per cylinder, multi-point fuel-injection combination to create a power machine. The mid-size Esteem can reach 100 kmph speed from standstill in just 11.4 seconds quicker than the Lancer and the Astra. The power-to-weight ratio of the Esteem is also the most favourable for a mid-size car. The power steering in the variants is quick and direct with a certain degree of feel. This is a boon in tight city driving conditions. The gearbox is slick and shifting a real joy.

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The Esteem is available in a large number of variants. New Euro 2 variants of the Esteem LX, VX and AX are the biggest attraction now. As for the diesel variants there is the Esteem Di and the base Esteem D version. Then there is the Esteem Vxi and the Esteem LX Euro 1 version. The Euro 2 versions are a definite upgrade on the earlier versions as they come with 85 bhp against the earlier weaker 57 bhp variants. Among the two diesel variants, the Di is the top-ofthe-line version with power steering, windows, rear defogger and halogen lamps, to name a few features. The Vxi version and the Euro 2, VX and AX come well equipped with power steering and power everything. But the VXI version is a step ahead as it has a rear defogger, a laminated windshield and a number of extra add-on features such as protective mouldings on the side.

Maruti Baleno
The Baleno has the looks and feel of a winner. This was Maruti Udyog's first D-segment car launched in India to compete with the Mitsubishi Lancer and the Honda City. This is also Suzuki's biggest passenger car and in Japan and other markets. The Baleno is called the Cultus in Japan. The Baleno is probably the best-equipped car in the market today. It is available in two variants one the base version and the top-end Baleno Altura. Both are identical in almost every

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aspect except that the Altura version is bigger and heavier and is equipped with some standout features like grip assist, which is there both in the front and the rear, electrically operated A/C louvre switches, a rear windshield wiper and washer, roof rails, foot rest and luggage hooks. Other features present in both the models include a rear defogger, third brake light, trunk lighting, rear safety belts and the very useful 'key-not-removed buzzer.' By any standards, the car is very spacious and here at last is one car that provides ample legroom for the rear passengers. The Baleno's 1.6-litre engine with 16 valves, multi-pointfuel-injection, a hollow camshaft and distributor-less electronic ignition is a gem. It is a SOHC unit where all four valves are operated via rockers driven by a single camshaft. It gives 94bhp at 6,000 rpm and a torque of 13.4kgm at 3,000rpm. The spirit of the car is bottled in a highly responsive and fuel-efficient 1590cc SOHC engine. The Baleno is identical to the Honda City in length and width though it is smaller than the Lancer and the Astra. The Baleno's rectangular, meshed grille stands out from the bodywork with its chrome border. The bonnet flows smoothly around the grille area and blends into the bumper. The Baleno is suspended on a fully-independent set-up, with MacPherson struts, both front and rear. An anti-roll bar is standard in the front. The suspension is mounted on a subframe, which reduces noise, vibration and harshness levels. The Baleno reaches 0-100 kmph in 11.13 seconds and a top speed of 180 kmph and gives a mileage of 11.1 kmpl in
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towns and 15.9 kmpl on highways. The Baleno is Maruti's first upper-end model to compete with the Opel Astra, the Mitsubishi Lancer and the Honda City. The Baleno is Suzuki's biggest and most important passenger car.

Maruti 800
The Maruti 800 is the largest-selling car in India and with good reason. This car offers the best value for money among all Indian cars combining ease of driving, good fuel economy and reliability. Historically, it has the blessings of the government behind it also. But the car's low-cost structure remains unmatched. No manufacturer today, maybe not even Maruti Udyog itself, would be able to make a car like the 800 today, at the same price. Hence, the cost advantage of the indomitable 800 is the reason behind its phenomenal success. The Maruti 800, which enabled millions of urban middleclass families to become first-generation owners of a fourwheeler because of its affordable price, has seen several improvements over the years the main reason why it has stuck around for so long. The latest improvement in the Maruti 800 is the introduction of a multi-point fuel-injection (MPFI) system to meet new emission norms. The MPFI system is complemented by a four-valve per-cylinder head and five-speed gearbox giving it a

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level of performance very few cars in this segment can match. It is also the most manoeuvrable car around. It's compact, nimble and the easiest thing to drive in urban surroundings. Parking is also not a problem for this baby. For those wanting to save on fuel the Maruti 800 is the answer. The increased power hasn't changed its fuel efficiency. It gives a highway run of 21.9 kmpl, while in the city it gives 13.9 kmpl.

Maruti Gypsy
The Maruti Gypsy is India's version of the Suzuki Jimny, which was at one time one of the best-selling fourwheel drives in the world. The Gypsy can go nearly anywhere, though is not as solid a workhorse as the Mahindra Jeeps. But considering its size and weight, it is tough and can take a lot of battering. As a personal four-wheel-drive car, it does well as it is refined, better finished and is much easier to drive than any Jeep. And it is also extremely reliable and, to a large extent, trouble-free. In India it is available in two Euro 2 variants the HT and the ST version. The HT version has features like fabric upholstery and a fibre reinforced plastic top, while the ST version has a foldable windscreen and a removable canvas top.

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Apart from this the two are nearly the same as they both give 80 bhp power @ 6000 rpm and come with a 1300cc engine pulled by a torque of 103 Nm @ 4500 rpm.

Maruti Omni
The Maruti Omni Van is basically a Japanese commercial van that has been converted with some modifications into a passenger vehicle. This is basically an underpowered vehicle mainly due to its excessive weight. It is heavier than a car because its body is not aerodynamic. Also due to its high stance it appears to be slightly unstable. In high-speed crosswinds, the Omni becomes unstable and shaky because its wheels are small and the centre of gravity high. The Omni also has a tendency to pitch and bounce on an uneven terrain. The ride quality is also not up to regular standards due to the suspension, which appears to be of leaf spring lineage. However, manoeuvrability is very good for a car of such dimensions and is far superior to that of the 800. Its turning cycle, too, is better than the 800s. In terms of space efficiency, the Omni beats the higherpriced breed of small cars. The vehicle can accommodate five passengers and stack their luggage easily. The rear sides offer greater comfort with plenty of legroom and door-to-door carpets.

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The sliding doors help in easy entry and exit when in a crowded parking lot.

Maruti Versa
If you are looking out for a station wagon that you can drive to work and also take out your family and friends for a picnic, you can safely reach out for the Maruti Versa, a minivan with the looks of a car. The Maruti Versa, unlike the Omni, has a fairly well-defined snout with a three -groove grille. The bonnet, the headlights, the black chin spoiler and the bumper with a huge air-intake capacity give it a sporty look. It is an incredibly light car. Decked in a conventional van layout, the Versa's engine is located under the front seats. Its bonnet houses the radiator and electric fan as well as the AC condenser and reservoirs for the coolant, washer fluid and brake fluid. The Versa uses disc brakes for the front and also has a pressure-regulating valve. The side panels are tastefully delineated with snazzy graphics, which extend from the tail lamp to the front door. The car employs the proven and ultra reliable 1298cc four-cylinder SOHC of the Esteem. Maruti engineers have taken special care to reduce noise, vibrations and harshness levels to acceptable limits. They have also made appreciable efforts to improve safety features in the car, and the monocque construction provides a

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rigid safety cell with side impact bars to protect against frontal impacts. Firm suspension settings ensure comfort and control. The Versa's interiors have a familiar Maruti ring. The interiors are tastefully done with brushed aluminium look, though a substantial borrowing has been made from the Maruti family parts bin to bring down costs. With a similar dashboard, steering wheel and instrument panel, there is very little difference between a Versa, the Alto or a WagonR. But the new SDX version of the Versa has a leather-wrapped steering wheel and metallic finished dashboard. The SDX version is a seven-seater, while the base Versa DX and the middle variant DX2 is an eight-seater. One can slide and recline the front row seats to adjust space between the first and middle rows. The SDX and DX2 versions of the Versa are equipped with twin air conditioners one in front and one at the rear. The rear AC has independent controls and overhead ducts. The Versa is probably among the safest cars to drive. Safety features include side-impact absorbing beams, frontimpact beams and a steel pipe frame in the rear seat. Height adjustable head restraints, brake boosters and a collapsible steering column are the other safety features. The Versa boasts of a powerful 16-valve, 1298cc engine generating 82 bhp at 6000 rpm, and controlled by a 16-bit engine management system. The car also possesses higher power to weight ratio not present in any other MUV. The Versa can reach 100 kmph from standstill position in just 13.5 seconds.

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Maruti Zen
The Zen is based on the 1991 Suzuki Cervo Mode, a Japanese-market-only model. The Maruti Zen was the first car by Maruti designed for the worldwide market, with India being the only production hub. The car's design and specifications are contemporary with world standards. In essence, the Zen, (sold as Suzuki Alto abroad) which looks like an extremely well-fed Maruti 800, drives like a dream. It offers more than adequate performance and is delightful to handle. The Zen was also the first Indian car to win accolades abroad, being voted the best car in its category in Belgium and the Netherlands in 1997 in addition to being the top car in the UK in terms of operating costs in the same year. Zen was the first car to have all-aluminium engine, electronic distributor pump, electric fuel pump in the fuel tank, suction resonator and a dash panel of sandwich construction. Starting from the 993cc engine, developing 50bhp in carburetted form and 58.5bhp in fuel-injected form, most of the power of the Zen comes in at the higher reaches of the power band. The five-speed ultra-slick gearbox in the Zen continues to be one of best boxes in an Indian car. A collapsible steering column is another safety feature present in all the variants of

35

the car. The Zen is available in four variants the LX, VX, VXi and D. A deluxe model has also just been launched; it boasts of central wood finish console and suede leather upholstery. Accessories in the car include, music system, sun visors on both sides, front and rear assist grip, fabric upholstery, power window and power steering is available in the VX and Vxi variants. Safety features in all the variants include: energy absorbing collapsible steering column, side-impact door beams in front and rear, child-proof locks on rear doors, rear windshield wiper and washer, central locking and protective mouldings on side.

Maruti Swift
Maruti Udyog, flush with bookings for the new Swift, will ramp up its production from 200 to 250-260 units per day, starting 19 June. The plant will be shut for a week prior to that for annual maintenance work. Launched on May 25 in New Delhi, the Swift has also been launched in several other cities since then, including Mumbai, Ahmedabad, Hyderabad and Chennai. With an estimated 20,000 bookings, the car is booked for the coming three months or so. Meanwhile, the company has already announced an increase in prices for the car, marking the end of 'introductory pricing' which Maruti's MD, Jagdish Khattar had alluded to at the

36

launch. As a result, all bookings effective 9 June will be made at the new retail tags. While the base model LXi's price has been increased by Rs 8,000, those of the VXi and ZXi have been raised by Rs 10,000 each. Maruti has said the prices are for fresh bookings and will not impact the estimated 20,000 bookings already received. The increases in retail price tags, barely two weeks after the launch, will bring the Swift's price closer to that of its closest competitor, the Hyundai Getz, prices of which start at around Rs 4.5 lakh. Sources said that while Maruti had indicated that prices would change, the timing has come as a bit of a surprise, as one would have expected the introductory pricing to be in force for at least a month. According to other sources, Maruti had not expected so many bookings, and the company wouldn't mind the little extra breathing space if some potential customers cancelled their bookings. Maruti's sales in the first two months of this fiscal have been down by about four percent, at an estimated 80,476 units as against 84,050 units in the year-earlier period. Exports have also fallen by 61 percent in this period. The company's volume in the domestic A2 segment grew by 23 percent which is inclusive of 2,981 units of the Swift, dispatched during May 2005. In the A3 segment, Maruti's sales grew 48 percent during the month compared to sales in the year-earlier period. The company has laid the foundation stone of its new plant at Manesar. The new plant will involve an investment of over Rs 3,200 crore, of which Rs 1,500 crore will be spent to build a new car assembly plant and Rs 1,748 crore for a diesel engine manufacturing facility for local consumption and exports.
37

Maruti 800 Days Are Numbered If.


1. The used or second-hand car market in India is likely to become more organized in future. The car dealers will themselves deal with used cars. It is expected that a used second hand Indica, Santo, Astra or Cielo will be priced close to a new Maruti 800. This could put a question mark on the prevalent assumption that a large number of current two-wheeler users in India will graduate to a Maruti 800 in future with higher incomes. 2. An analysis of the world car market shows that no car company in the world, with the expectation of the Japanese, has a car in its range, which is directly comparable to the Maruti 800. Contrary to popular belief, the Ford Fiesta, Opel Corsa and the VW Golf would compete with Maruti Esteem or Maruti Zen, and not with Maruti 800. All these cars, though small by Western standards, are high-power cars which would be priced in India in the luxury range. Given that only 30% of the market is estimated for cars above 1000cc and with so many companies already in the Indian market, the industry seems to be heading for a shake out. The firms that would be able to design and properly implement sound marketing strategies are likely to be the winners. 3. The easy financing schemes are also posing threat to the Maruti because customers can directly graduate to SEGMENT B without having first time purchase at Maruti 800. Since car purchase is India is a one time decision and people will prefer

38

to have one investment that will differ not very highly for better features.

4. Diesel engine cars are also posing a big threat due to their fuel cost differential since in India people do give a lot of emphasis on fuel efficiency and price do play an important role in this category. Huge success of INDICA in the sub urban and rural areas is just an Indicator of the future so

Maruti 800 beware India is slipping out of your hands.

Research Methodology
The type decision and specification of a work or taste is as important as its target and achievement. The study of aimed to provide the comparative account regarding the Total models of Maruti cars in the market. I found out the position and condition of selected models and various things. For this project survey, I made the questionnaire and collected data from the journals, internet, and magazines. Research: Research can also be defined as scientific and systematic search to time information for specific topic. Problem Identification: Define the problem chosen for investigation such as-: (a) Analysis of after sales- services (b) Analysis the level of customer satisfaction.

39

(c) Market share of different brands etc. Research design Research design is the basic framework which provides guidelines for data collection and data analysis the researcher especially pin point that to carryout research properly. 1) How the data would be collected. 2) Which instrument for data collection would be used? 3) What sampling plan would be used?

The data collection methods are basically of these typesobservation, experimentation and survey. I used the survey method of data collection because in the Market Research method I can gather a wide range of valuable information on over behavior of consumer for product. Sources of information: through Primary & secondary Data.

Primary data: Primary data is that which data collect in new by primary sources. Questionnaire I used the survey method frank questionnaire with general face-to-face interaction of consumers.

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Secondary data: these data already exist in the companies magazines. I collect the secondary data from: Magazines Journals Internet Annual Reports Sample size: Sampling plan is to decide the population for study. My total sampling for research is 100 for different areas of Agra.

Customer Satisfaction
The Quality Advantage Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2005). The M800 was chosen No.1 in the premium compact car segment and the Esteem and Swift in the entry level mid - size car segment across 9 parameters. The J.D. Power APEAL Study 2005 proclaimed the Wagon R no. 1 in the premium compact car segment and the Esteem No.1 in the entry level mid - size car segment. This study measures owner in terms of design, content, layout and performance of vehicles across 8 parameters. A Buying Experience like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000
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trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2005. Quality Service across 1036 Cities In the J.D. Power CSI Study 2005, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2005 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. One Stop Shop At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all your car related needs. The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost you face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruit Suzuki. It is in the economy segment that

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the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. We are proud to have the lowest cost of operation/km (among petrol vehicles) - the top 6 models are all Maruti Suzuki models: Maruti 800, Alto, Swift ,Zen, Omni and Wagon R.

Marketing Research
Marketing managers often commission formal marketing studies of specific problems & opportunities. They may request a market survey a product preference that a sales forecast by region or an advertising evaluation. Marketing research is the systematic design, collection analysis and reporting of data and findings relevant to a specific marketing situation facing company. Marketing research as a systematic gathering recording and analyzing of data about problems relating to marketing of goods and service. Generally, in India, accuracy and reliability is lacking in most marketing research investigation. Let us take the example
43

of advertising media like newspaper, TV. Etc., giving advertisements. Without a clear methodology and objectives (research design), the researcher cannot adopt a particular track for conducting research. Zaltman & Burger (1975) define marketing research as the field which involves the diagnosis of information needs and the selection of relevant interrelated variables about which valid and reliable information is gathered, recorded and analyzed. The nature of marketing research can better be understood if we explain it from seven points of view, viz. As an economic resource 1. As a system of authority 2. As an activity of marketing management 3. As team effort 4. As an art or science 5. As a profession 6. As an interdisciplinary A wide range of research activities is covered by the mktg. Research. For our convenience, we can put these activities in to seven categories viz. 1. Product and service research. 2. Market research. 3. Promotion research 4. Distribution research 5. Pricing research 6. Corporate responsibilities research 7. Miscellaneous research
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Business executives are becoming increasingly dependent upon marketing research. The increasing importance of marketing research is based on the following three trends: 1. Shift from the local to national and international market. 2. Transition from consumer needs to consumer wants. 3. Shift from price competition to non-price competition.

MARKET SEGMENTATION

The Indian automobile market is still in its evolutionary or early growth stage. Therefore, no fixed or widely accepted method of segmenting the market has evolved as yet. Segmentation has mostly been done on product types or price ranges. There has hardly been any kind of segmentation on psychographic or behavioral parameters as seen in developed car markets. The segmentation provided in this paper is based on an understanding of the current state of the industry. These segments are quite different from the segments known in the US, European or Japanese markets. The following segments based on price and type of car has been identified:

Segment A:
Economy segment, comprising cars priced less than RS 250,000 and in this category Maruti 800, Maruti Omni and Alto are major players with Maruti 800 as undisputed market leader.
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Segment B:
Mid-size segment, comprising cars in the RS 250,000 and Rs. 450,000 price bracket, e.g., Maruti Zen, Maruti Alto, Swift, Tata Indica, Matiz, Hyundai Santro and Fiat Palio are major players.

Segment C:
Premium segment, comprising cars priced at higher than Rs. 450,000-1,000,000 e.g., Maruti Esteem, Tata Sierra, Peugeot 309, Opel Astra, Cielo, Ford Escort, Mitsubishi Lancer.

Segment D:

Luxury segment, comprising cars priced at higher than


RS. 10,00,000 e.g., Mercedes-Benz, BMW, and Audi.

POSITIONING
Since the Indian car market is in a state of flux, the positioning of most companies in the consumer's mind appears to be confused. However, the companies have developed imagebased positioning strategies for their brands. Some of them are

46

Maruti: Small Complete Car with Value for money concept. General Motors Opel (GM) German engineering Daewoo - Family car Honda - superior engine performance. Peugeot - sound-free diesel engine Ford - smooth drive

Indica - more car per car

SUPPLIER

There are about 6,350 small and large component manufacturers in India, out of which about 350 are in the organized sector and are registered with the Automotive Components Manufacturers Association. There is a sizeable replacement market for parts and components, but this market is heavily dominated by manufacturers who sell unbranded products at very low prices.

ADVERTISING & COMMUNICATION

Advertising in the Indian passenger car industry hardly existed till the onset of competition. Today however, the industry is one of the highest spenders on advertising among consumer durables. Advertising has been concentrated to the print media. The company also recognizes that effective PR exercises would be a critical component of its marketing efforts in future. Recognizing this now companies are focusing on lot of competitive advertising in which the features essential or new value adds are compared extensively. Maruti is on its drive for

47

the big time LEADERSHIP FACT advertisement campaign working on ten core strengths of Maruti. This campaign has been extensively launched through out India with Print Media.

VISION AND VALUES

VISION

The leader in the Indian Automobile Industry,


creating customer delight and shareholders wealth; A pride of India.

VALUES

CUSTOMER OBSESSION FAST, FLEXIBLE & FAST MOVER INNOVATION AND CREATIVITY NETWORKING AND PARTNERSHIP OPENNESS AND LEARNING

HR VISION Lead and Facilitate continuous change towards organizational excellence; create a learning and vibrant organization with high sense of pride amongst its members.

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CULTURE BUILDING INITIATIVES SINCE INCEPTION Japanese Management philosophy of Team Spirit Common uniform Open office Common Canteen Open Office Easy accessibility, Speedy Communication and decision making Morning Meetings Morning Exercises

TRAINING & DEVELOPMENT Annual Training Plan - All Levels Topics selected based on Vision, Values & Departmental Feedback of Company-wide Managers
Technical Training on latest Technologies abroad at SMC, Japan

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Maruti Dealer Network

Maruti dealer network is one of its greatest strengths and it score over many manufacturers due to this strength only. It also form part of its communication strategy by giving advertisement related it its service centre coverage. Maruti service

station Hai Kya This


network give it a give advantage over companies like FIAT that are ailing from poor service centre coverage and has to bear huge losses due to lost sales. The company has set up a committee of directors to negotiate with the 375-odd vendors on a regular basis in order to reduce costs and improve productivity, both within and outside the company. The latest Leadership Fact campaign launched by the Maruti as part of promotion strategy (copies attached at the end of report) is also laying a lot of stress upon the service dependability of Maruti supply chain and its service network.

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MARUTI AUTHORIZED SERVICE STATIONS (MASS)

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MARUTI AUTHORIZED SERVICE STATIONS (MASS)

A. NICOBAR ANDHRA PRADESH ARUNACHAL PRADESH ASSAM BHUTAN BIHAR CHANDIGARH CHATTISGARH DADRA & NAGAR HAVELI DELHI GOA GUJRAT HARYANA HIMACHAL PRADESH JAMMU & KASHMIR

JHARKHAND KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA MIZORAM MEGHALAYA NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU UTTAR PRADESH o NOIDA

CITY MOTORS C-2 SECTOR 63

AUTO POINT C-107 SECTOR-2

NODIA CAR SCAN A-58 SECTOR -16

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Better Service Quality

Your Maruti is an automotive marvel and the pride of millions of owners. Every component is specially designed to deliver unmatched Performance, safety & Comfort. Be it Maruti Genuine Parts or any part. But no part, no matter how stringently engineered, is designed to last forever. So should the need for replacement ever arise, beware of spurious spares.

These cheap imitations lead to expensive consequences, both to previous lives and machine. Frequently burden your pocket with sleep fuel and maintenance bills. Reduce your prized possession to a piece of junk. You bought stallion. Why get saddled with a mule?

You are guaranteed outstanding performance with Maruti Genuine Parts. Performance that comes from genuine parts, made to the standards of the originals fitted in every new Maruti. These are authenticated by Suzuki Motor Corporation & Maruti Udyog Ltd. Moreover, MPFI vehicles which give you better performance require even better care, especially in terms of usage of Maruti Genuine Parts.

There are two type of service process 1. Directly 2. External

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Format

INSTANT FEEDBACK CARD PROCESS

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Format -2 MARUTI SERVICE QUALITY STANDARD CARD

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MARUTI SERVICE QUALITY STANDARD

Maruti Honda Genral Motor Fort

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Format-3

CUSTOMER SATISFACTION CARD PROCESS


Thank You for getting your car servicedat out workshop. We would lie to know how we performed. Please spare a few moments to give us your valuable feedback on the following as it will help us in improving our services.
Please put a tick mark( ) in the appropriate box.

Excellent Good Average Unacceptable

1. Delivery of vehicle on time.

2. Availability of spare part for the service.

3. How much time is taken to repair the vehicle by our.

4. Behaviors of staff during servicing of vehicle.

5. Ability of staff to understand problem with vehicle.

6. Work done at delivery and details of expenses.

7. Getup of vehicle and its clearness

8. Mode of payment.

9. All the necessary repairs done.

10. What kind of feedback is asked form u after service.

11. Facility of service and maintenance.

12. After service whether the information has been collected form you.

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13. What did they informed you after service.

14. Rule of service change.

15. Please described the whole mode of the service center work.

As per your satisfaction would you like to suggest any one about our workshop for the service. Yes No Maybe Never

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CUSTOMER SATISFACTION SURVEY

120
100 80 60 40 20 0 Maruti General Motor Honda Ford Tata

In customer satisfaction Maruti Udyog Ltd. is No. 1 from last 7 yrs. Their current customer satisfaction index is 96.4%. they were trying hard to raise customer satisfaction index up to 100%.

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SURVEY
One of the most common and widely used primary data collection methods is survey. With use of survey, we can gather a wide range of valuable information on overt behavior of the consumer, viz, attitudes motive, and opinions. The earlier two methods (observation and experiment) are not capable to yield such information. The primary data, using any of these three above mentioned method can be collected from any population comprised any type of respondent group like customers, middlemen, competitors, salesmen, company employees, etc. Surveys are best suited for descriptive research. Companies undertake survey to learn about the peoples knowledge, belief, preferences, and satisfaction and to measure there magnitudes in the general population.

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Survey findings
Number of respondent 6 Income group (p.a.) 3-5 Lakhs Retained customers (%) 100 Shifted customer (%) 0

5-7 Lakh

57.14

42.86

More than 7 lakh

12.5

87.5

The above table is a part of the study conducted for Maruti Suzuki In Ranchi. It shows that Maruti is able to retain its customers which have a low income group. But couldnt able to retain the higher income group.

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Retention in the income group of 3-5 lakhs


0

100

Retained Customers Shifted Customers

No. of respondents in the income group of 3-5 lakh was 6 and the company is able to retain all the 6 customers.

Retention In The Income Group of 5-7 lakhs

42.86 57.14 Retained Customers Shifted Customers

No. of respondents in the income group of 5-7 lakh was 7 and the company is able to retain 4 of them.

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Retention In The Income Group above 7 lakhs


12.5

Retained Customers Shifted Customers 87.5

No. of respondents in the income group of 7 lakh and above was 9 and the company is able to retain only 1 of them.
120

100

80 Retained Customers Shifted Customers 40

60

20

0 3-5 lakhs 5-7 lakhs more than 7 lakhs

Fig: Graph showing no. of retained and shifted customers for Maruti in different income groups

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MARUTI SWOT ANALYSIS

STRENGTH

Early mover Advantage Established supply chains and dealer networks. Strong brand names Good reputation among customers Cost advantages from Economies of Muscle power in government policies. Wider service network. Better service quality. scale.

WEAKNESS

Lack of in house R&D spending. Reactive in launching new models Cost advantage in Maruti 800 segment going down. No presence in diesel engine segment which is gives post purchase fuel economy.

Disinvestment policy ambiguity is playing on future strategies.

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THREAT

Shifts in consumer tastes away from the firm's products. Emergence of substitute new models by competitors. Disinvestment process getting slower and decreasing efficiency. Maruti 800 sales going down which is star performer of company till now.

Government decreasing custom duties on second hand and imported cars.

Tata Indica and Hyundai getting hold in medium size segment.


OPPORTUNITY

New car can be launched. Battery Cars with low price. Disinvestment and Suzuki gaining full control. Diesel variants of new cars. Huge installed capacity can be used for exports from India. Rural customers can be graduated from scooter to entry level Maruti 800.

Rising middle class income. Financing options Second hand car sales market Auto parts market

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SCM STRATEGIES SCM strategies:

It encompasses all processes from `Mother earth to point of sale'. Seamless flow of material and information is the key for supply chain. This helps in reducing inventory which in turn leads to low costs and increases flexibility, improving price-value offerings. This resulted in reducing the indigenous inventory level at MUL to 2.9 days in1998-99 from nine days in 199596.

Material handling and storage:

This is being effectively managed by using recyclable packaging with plastic bins and metal trolleys. This has done away the job of unpacking the supplies at the factory unit. It also aids decentralized unloading near the assembly line and uses gravity conveyors using no electric power or manpower.

Extended enterprise:

MUL developed a long-term relationship with the vendors by looking at them as extended enterprises. It trusted its vendors to the extent of asking them to do self-inspection of parts supplied by them and by not going in for a second quality check at the factory point. This has resulted in minimizing duplication of work and thus avoiding performance of non-value adding activities.

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Vendor selection:

Much attention has been paid by MUL in the selection of its vendors as most of them have been identified as OEMs avoiding Tier-I category. This has led to an effective percolation of all SCM practices across the organisation.

Modularization:
This has been the key area of focus for MUL. It encouraged proximity warehousing by locating most vendors near by the factory unit at Gurgaon. Modularization of vendors has helped MUL in addressing the specific problems of a particular set of vendors.

Material transportation:

This is the most tangible form of logistic cost and this has been achieved by a milk-run system. This unique method of pooling supplies of various vendors of one area in a truck has resulted in a drastic cut in this cost. MUL identified the vendors located in a particular area, classified their production pattern and achieved transportation of supplies from them at one go.

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Delight customers:

By providing better price-value offering. This can be achieved by re-engineering and re-configuring processes that reduce costs. At Maruti, this has been successfully achieved by adhering to kaizen principles diligently.

E-solution:

The maker of the little car that marked the beginning of a new revolution in the auto sector, this homegrown system was extended to its sales and dealer network through an email-based ordering system with about 250 outlets. For instance, if a dealer has to place an order, he generates it in his own machine with all the specifications (e.g. color, model etc) and sends it through an email to Maruti. The system there automatically checks the order, classifies it accordingly and sends it to the respective database.

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RECOMMENDATION
1. Baleno which has been ranked first should launch some upper grade variants of this car because it is not being widely endorsed by upper income group. 2. Esteem and Baleno should taken corrective measures for technological up gradation, to improve their performance such as- fuel efficiency, low maintenance and quality standard up to customer expectation. 3. Non personal tools have an impact in buying criteria of the customer where luxury car market as whole should take correct measure to improve their advertisements so that they may seem nubile, bairy and fun crazy to influence the decision process of buyers. 4. M800 and Omni are required to take some steps to improve their looks. 5. Discount scheme has no effect in buying decision in case of Alto and Esteem hence they should make their discount scheme attractive survey and customer. 6. Maruti should broaden their sales services, network and spare parts availability because it is prime criterion of buying process. 7. Baleno although has been ranked no 1 car it as luxury car, has unsuccessful to rated customer mind and perception as far as lack of the car are concerned, hence it should take measures to give its size and shape new look.

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LIMITATION OF THE STUDY


1. The educational & awareness level of the respondents with respect to the questionnaires is low. Hence they respond one question in affirmative, but same interrelated question has been responded in negative. 2. The sample plan is too small to give the research a wide coverage with reference to their opinion. 3. Sampleplan is Noida specific. Hence it may show imbalances of urban elite perceptions. 4. The respondent include those people who has car (but not a specifically a luxury car) and hence, their opinion could be based with the lower income group. 5. The respondents are not interested to reveal their income level. Causing a hurdle in finding out the price as a buying decision.

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FINDING & INTERPRETATION


1. When I surveyed the consumer, then I found that people below 1,00,000 income group is preferred 32.50% Maruti800, 3.84% Omni and 02.66% Maruti Zen. Esteem is not preferred by the below income group. 2. 1,00,000-3,00,000 income group preferred 25.84% MZen, 40.52% WagonR and 11.52% Alto. in the above 300000 income group preferred 3.84%baleno, 50.84% Swift, 11.52% WagonR and 7.68% MZen. 3. Newspaper are most affective advertisement mode. The baleno got 26.88%, city 15.36%, safari 11.52% and Siena 3.84%. In the TV section, only city got 7.68%. in the magazine effectiveness the baleno got 3.84%, city in nil, safari 15.36% and siena 11.52%. only safari got the 3.84 of the survey report mode of advertisement. 4. In the rate of effectiveness of different sale promotional activities, in the warranty section, baleno has 11.52%, city 3.84%, safari 7.68% and 3.84%. in price scheme section, 5. 68% baleno, 3.84%, city, 3.84%safari and 11.52% Siena. In guarantee section11.52 % baleno, 7.68% city, 15.36 % safari and 3.84% Siena. In discount scheme section safari and city got the response. The percentage is 3.84% city, 3.84% safari. 6. 7. 8. The most satisfying after sale services is Maruti baleno , after this safari than the city and Siena In the suggestion of other section, I found out that the Maruti baleno take the lead to his competitors. On the basis of these finding we concluded that the baleno got the first ranking among its competitors. The reasons behind that the baleno is the Marutis product, after sales
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services are more satisfying, easy availability of spare parts, price and looks. 9. The most satisfying better services quality provided in Maruti service centers.

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SUMMARY AND CONCLUSION


After analyzing the questionnaire and studying the facts available in the magazines. I can conclude that there is no controversy to tell that Maruti Udyog Ltd is still the undisputed king in cars market to have a market share of 55%. But the times are now coming, consumers perceptions are also changing at a great pace. In the market share of 56% of Maruti, there is a great contribution of Suzuki, when Maruti have no strong competitor. But trends have changed now. After coming of Honda and Tata, people have a good choice due to changing needs and demands of general people. They bring new concept in cars regularly. It provides good quality in various aspects. Age Factor: As being the oldest company Maruti have 56% market share in cars, but if we consider the age factor we find that other companies improved their position in four wheeler market. Class : Maruti have a good market share in lower income group. Because, the people of this income group have no choice Maruti800, Maruti Zen, and Alto are the popular brand in this segment. Because the four wheeler is a success while the higher income group is considers four wheeler is a necessary thing to these people but it also maintain their nature. The highest income groups need is different. Small cars are not a necessity to them. These people prefer, generally costly, good things according to there prestige.
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After sales service: We all know that the productive and endorsements of the four wheeler is quite high, so it is difficult to maintain their quality of after sale services thus it becomes much more important for the company to have a step head of its competitor by providing better after sales services. This can help the company to increase it sales and also to make a customers brand loyalty. In four wheeler market after sales services works as a advertising tool.

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BIBLIOGRAPHY
In order to prepare my research project report, I have gone through these books & magazines: Philip Kotler : Marketing Management

Ramanuj Mazoomdar : Product Management in India A&M News Papers Business Today. www.marutiindia.com www.marutisuzuki.com

www.autocarindia.com
www.marutiudyog.com

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APPENDICES
QUESTIONAIRE
NAME:-.. ADDRESS:-. CONTECT NO.

Q - 1:- Do you have a four wheeler? (A) YES (B) NO [ [ ] ]

Q 2:- If yes, which company do you have? (A) Maruti (B) Tata (C) Hyundai [D] Honda [ [ [ [ ] ] ] ]

Q 3:- Specify the print media which influenced you most in buying it? (A) NEWSPAPER (B) TV ADS & MOVIES (C) OTHERS [ [ [ ] ] ]

Q 4:- Which features of four wheeler affected your buying decision? (A) LOOKS/STYLE (B) MAINTENANCE/MILAGE (C) PICKUP/POWER (D) RE-SALE VALUE (E) PRICE
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[ [ [ [ [

] ] ] ] ]

(F) AFTER SALES SERVICE

Q 5:- To which income group you belong? (A) BELOW Rs. 1, 00,000 (B) Rs. 1,00,000- 3,00,000 (C) Rs. 3,00,000- 700,000 (E) Rs. 700,000 - ABOVE [ [ [ [ ] ] ] ]

Q 6:- Are you satisfied with the price of your four wheeler? (A) YES (B) NO [ [ ] ]

Q 7:- Are you satisfied with its performance? (A) FULLY SATISFIED (B) PARTIALLY SATISFIED (C) UNSATISFIED [ [ [ ] ] ]

Q 8:- Are you satisfied with its after sales services? (A) YES (B) NO [ [ ] ]

Q 9:- How will your rank your car features? Please use the following rating scale. (A) MILAGE [ [ [ [ [ [
77

] ] ] ] ] ]

(B) POWER/PICKUP (C) PERFORMANCE (D) LOOKS/STYLE (E) (F) MONEY VALUE GOOD WILL

Q -10:- What major problems (Demerits) do you face with your car? (A) LOOKS/STYLE (B) HEADLIGHTS (C) HORN (D) SEAT (E) BREAKING (F) SUSPENSION [ [ [ [ [ [ ] ] ] ] ] ]

Q 11:- Will you advice other to buy a particular brand of four wheeler? (A) YES (B) NO [ [ ] ]

Q 12:- Are you willing to buy another brand four wheeler? (A) YES (B) NO [ [ ] ]

Q 13:-Are you satisfied with its services quality? (A) YES (B) NO [ [ ] ]

Q 14:-Lastly, do you need any improvement in your car? Please give your suggestion. . .

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