1.1 INTRODUCTION The Indian Automobile Market is expected to grow at a CAGR of 9.5 percent amounting to Rs. 13,008 million by 2010. The Commercial Vehicle Segment has been contributing to the automobile market to a great extent. Many foreign companies have been investing in the Indian Automobile Market in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations. The auto market in India can boast of attractive finance schemes, increasing purchasing power, and launch of the latest products. Total sales of major car manufacturers in India registered a figure of 0.674 million units at the end of March, 2007. The number of car exports in India was 39,295 units. General Motors, Maruti, and Honda accounted for 60 percent of the market sales at the end of April,2007. There has been an increase in the purchase of motorcycles and cars both, in the rural as well as urban areas. Maruti Suzuki is India’s No. 1 customer satisfaction car company. Its sale is more than 50% of care of Indian car market. But now it is getting a good competition with other new car company and foreign companies and its sales is going down because other car companies are trying to present different types of new car in different segment. So in our study in we had tried to study Maruti Suzuki segmentation of cars and its sales trend and its effect on customer. This project is all about segmentation and sales trend study of Maruti Suzuki. Through our study we are trying to analyze the customer demand in different segments and advancement required in Maruti’s segmentation. We are also analyzing Maruti Suzuki salestrend. We had visited different customer of Maruti Suzuki and other company in Gandhinagar three village (kudasan,Raysan,Koba) and asked some question and based on that we are tying to analyze the data and sales trend of Maruti Suzuki & competition from another car manufacture. We had also collected some secondary data of different study done on Maruti Suzuki and based on that we are trying to present the competition trend analysis of Maruti Suzuki. 1.2 INDIA FOUR WHEELER INDUSTRY 1 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT, RAJPUR. The Four-Wheeler Industry in India has not quite matched up to the performance of its counterparts in other parts of the world. The primary reason for this has been the allpervasive regulatory atmosphere prevailing till the opening up of the industry in the mid-1990s. The various layers of legislative Acts sheltered the industry from external competition for a long time. Moreover, the industry was considered low-priority as cars were thought of as unaffordable luxury". Post Liberalization, the car market in India have been in a burgeoning stage with all types of cars flooding the market in order to meet thedemands of Indian customers who are increasingly exposed to state of the worldautomobiles and want the best when it comes to purchasing a car. It is expected that by 2030, the Indian car market will be the 3rd largest car market across the globe. The main encouraging factors for the success story of the car market in India are the increase in the opportunity for new investments, the rise in the GDP rate, the growing per capita income, massive population, and high ownership capacity. The liberalization policies followed by the Indian government had been inviting foreign players to participate in the car market in India. The recent trend within the new generation to get work in the software based sector has led to the risein the income level and change in the lifestyle significantly, which has further led to the increase in the demand for luxurious cars among them. The car Market in India is crowded with all varieties of car models like the smallcars, mid-size cars, luxury cars, super luxury cars, and sports utility vehicles. Initially the most popular car model dominating the Car Market in India was the Ambassador,which however today gave way to numerous new models like Hyundai, Honda, Mercedes-Benz, BMW, Bentley and many others. Moreover, there are many other models of cars in the pipeline, to be launched in the car market in India. Some of the leading brands dominating the carmarket in India at present are Hindustan Motors, Reva Electric Car Co., Fiat IndiaPrivate Ltd., Daimler Chrysler India Private Ltd, Ford India Ltd., Honda Siel Cars India Ltd., General Motors India, Hyundai Motors India Ltd., Skoda Auto India Private 2 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT, RAJPUR. Ltd., and Toyota Kirloskar Motor Ltd. Since the demand for foreign cars are increasing with time, big brands like Mercedes Benz, Volkswagen, Aston Martin,Ferrari, and Rolls-Royce have long since made a foray into the Indian car market. 1.3 FACTS ABOUT INDIAN CAR MARKET:Although the Indian automobile industry has come a long way since the deregulation in 1993, India does not rank well among its global peers in many respects, viz., the contribution of the sector to industrial output, number of cars per person, employment by the sector as a percentage of industrial employment, number of months' income required to purchase a car, and penetration of cars. Figure:-Passenger vehicle stock per 100 people India is far behind from other countries with just 6.9 cars per 100 persons, while Unites States has 76.9 cars on per 100 persons. Among developing countries, Russia also stands ahead than India and China with 16.3 cars per 100 persons. Two things that stunted growth of the Indian automobile industry in the past have been low demand and lack of vision on the part of the original equipment manufacturers (OEMs). However, the demand has picked up after the liberalization of the regulatory environment, and global OEMs who enjoy scale economies both in terms of manufacturing and research and development (R&D) entered the Indian market. This has resulted in a significant shift in the way business is conducted by suppliers, assemblers and marketers. 1.4 KEY DATA 1. Country: INDIA 2. BSE: 532500 3 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT, RAJPUR. 2009 Sales: 206. Major Industry: Automotive 6.910. Fiscal Yr Ends: March 12.028. Share Type: Ordinary 1. Shares Outstanding: 288.638.060 13. NSE: MARUTI 4. Sub Industry: Diversified Automotive Mfrs.000 (Year Ending Jan 2010) 8. Exchanges: BOM 5.129. Market Cap: 399. Employees: 7.159 9.000.3.369 11. .5 COMPANY PROFILE Maruti suzuk i India LTD 4 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. 7. RAJPUR. Currency: Indian Rupees 10. outside Japan and Korea. It was established with the objectives of -modernizing the Indian automobile industry. in 1992. There was an option in the agreement to raise Suzuki’s equity to 40%. Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. A license and a Joint Venture agreement were signed ith the Suzuki Motor Company of Japan in Oct 1983.6 COMPANY HISTORY AND BACKGROUND The Evolution Maruti’s history of evolution can be examined in four phases: 5 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. In 2000-01. Maruti is the highest volume car manufacturer in Asia. RAJPUR. high depreciation on new model launches resulted in a book loss. Maruti created history by going into production in a record 13 months. Maruti is one of the most successful automobile joint ventures. which it exercised in 1987.5 billion. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. Five years later. 1. and has made profits every year since inception till 2000-01. although Maruti generated operating profits on an income of Rs 92. . by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. having producedover 5 million vehicles by May 2005. producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population.Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament. two phases during pre-liberalization period (1983-86. During the initial years Maruti had 883 employees. Employees grew to 2000 (end of first phase 1986).67 mn in 1984 to Rs. 1997-2002). Batches of Japanese personnel came over to Maruti to train. a capital of Rs.54 mn in 1998 but started declining during 9972001.During the pre-liberalization period (1983-1992) a major source of Maruti’s strength was the wholehearted willingness of the Government of India to subscribe to Suzuki’s technology and the principles and practices of Japanese management. 607 mn and profit of Rs. 1986-1992) and two phases during post-liberalization period (1992-97. RAJPUR. supervise and manage.3900 (end of second phase 1992) and 5700 in 1999. followed by the full privatization of Maruti in June 2003 withthe launch of an initial public offering (IPO). 6854. The Path to Success for Maruti was as follows: teamwork and recognition that each employee’s future growth and prosperity is totally dependent on the company’s growth and prosperity strict work discipline for individuals and the organization constant efforts to increase the productivity of labor and capital 6 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. The profit after tax increased from Rs 18. Largenumber of Indian managers. From such a modest start the company in just about a decade (beginning of second phase in 1992) had turned itself into an automobile giant capturing about 80% of the market share in India. Maruti’s style of management was essentially to follow Japanese management practices. . 17 mn without any taxobligation.The first phase started when Maruti rolled out its first car in December 1983. supervisors and workers were regularly sent to the Suzuki plants in Japan for training. The company vouches for customer satisfaction. Mr Shinzo Nakanishi. . a subsidiary of Suzuki Motor Corporation of Japan. In all. ethics and human beings. of which 53. over six million Maruti cars are on Indian roads since the first car was rolled out on 14 December 1983. 2. Managing Director 7 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. has been the leader of the Indian car market for over two decades. steady improvements in quality and reduction in costs customer orientation long-term objectives and policies with the confidence to realize the goals respect of law. Maruti Suzuki sold 764. RAJPUR. Maruti Suzuki India Limited. 1.7 BOARD OF DIRECTORS 1. The “path to success” translated into practices that Maruti’s culture approximated from the Japanese management practices. Chairman Mr Jagdish Khattar. During 2007-08. For its sincere efforts it has been rated (by customers)first in customer at is faction among all car makers in India for ten years in a row in annual survey.024 were exported.842 cars. . Joint Managing Director Mr Shinichi Takeuchi. Director Mr Amal Ganguli. 4.8 VISION AND MISSION 8 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. 7. Director Ms Pallavi Shroff. 12. Director Mr Manvinder Singh Banga. Director 1. Director Mr S V Bhave. Director Mr Kumar Mangalam Birla.3. 5. 11. RAJPUR. Mr Hirofumi Nagao. 10. Director (Marketing and Sales) Mr Osamu Suzuki. 9. 8. 6. Joint Managing Director Mr Kinji Saito. Director Mr R C Bhargava. 1. Maruti has a network of 391 sales outlets across 230 cities all over India.142 authorized service outlets.Vision The leader in the India Automobile Industry. A pride of India” Mission To provide maximum value for money to their customers through continuous improvement of products and services.113 towns and cities.9 KEY SUCCESS FACTORS (1)The Quality Advantage Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J. RAJPUR.The company's change in strategy and emphasis on developing effective marketing communications was their highlights.1in the 9 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. The service network covers 1. . The Alto was chosen No.D. Power IQS Study 2004). Creating Customer Delight and Shareholder’s Wealth. bolstered by 2. most user-friendly service and best service initiation experience. The J. Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle. Whether it is easy finance. . best service advisor experience. best in-service experience.size car segment across 9 parameters. 92% of Maruti Suzuki owners feel that work gets done right the first time during service.Maruti Suzuki is set to provide a single-window solution for all car related needs. Power CSI Study 2004. RAJPUR. exchange.D. highest service quality. (3)Quality Service Across 1036 Cities In the J. (4)One Stop Shop At Maruti Suzuki. (5) The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost customers face when buying a car. it may not necessarily be affordable to 10 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. customers will find all car related needs met under one roof. best service delivery. (2)A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities. Although a car may be affordable to buy.premium compact car segment and the Esteem in the entry level mid . insurance. fleet management services.D. with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car. while 90% owners would probably repurchase the same make of vehicle. maintain. quality and reliability in 11 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. It is in the economy segment that the affordability of spares is most competitive. (7) Technological Advantage It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. and it is here where Maruti Suzuki shines. (6)Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen. practicality and styling. A runaway success on the roads of Europe. 1. . Wagon R. as some of its regularly used spare parts may be priced quite steeply.LET’S GOS The alto is a great combination of economy. it exemplifies the benchmark in build. Esteem. Not so in the case of a Maruti Suzuki. Alto and Omni. Maruti 800.10 PRODUCT OF THE ORGANIZATION ALTO . This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. RAJPUR. 12 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. BALENO – SURPRISING PERFORMANCE India’s true performance sedan is upwardly mobility. 2003 of covering 3082 kms in 24 hours at an average speed of 128 kmph. the Baleno is a truly awesome performer. Enjoying a cult following among those who appreciate technology as an art form. The 13 advanced noise reduction technologies ensure the cabin is quiet and peaceful. This is testified by the 24 hour endurance record set onAugust 3. The flat torques of 132 Nm allows one to enjoy 94 bhp of refine power. RAJPUR.a compact car. redefined. . GRAND VITARA XL – 7 . of course. 8 seater. Which enables you to conquer any terrain withutmost ease? Enjoyed by both the adventurous and successful. This faithful workhouse is easy on the pocket. It meets diverse needs across different user segments and can double up both as a people carrier and a goodscarrier. RAJPUR. OMNI – FITS ALL The Omni is truly India’s Original Multipurpose Vehicle.THE JOY OF TRAVELLING TOGETHER Equipped with twin AC.CHANGE YOUR LIFE 13 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. CNG and LPG. the new restyled Grand Vitara XL –7 is now available in India directly imported from Suzuki. large sliding doors and flexible seating. The adventurous streak runs through all the gypsy siblings. VERSA . Today it is available in sixavatars – 5 seater. In spite of being so spacious. It’s useful fifth gear. Japan. the Gypsy King glide by with ease. its design allows for easy maneuverability in the city. . GYPSY – ADVENTURES UNLIMITED Be it the wild outdoors or the urban jungle. 166 bhp of power and 236Nm of torque. delivers over drive for on – road cruising. the Versa encourages families and friends to enjoy long drives and gateways together. This luxurious 7 seater.LIVE THE GRAND LIFE Live the grand life with the new GRAND VITARA XL –7. MARUTI 800 . cargo. 4 wheel drive sports utility vehicle comes equipped with a powerful V6 engine. yet tough on the job. This 1300 cc off – road vehicle combines the raw of 80 bhp (at 6000rpm) with superb 4 – wheel drive maneuverability and a rugged frame (it’s available in both soft and hard topversions). ambulance. WAGON R-INSPIRIED ENGINEERING The Wagon R’S original tall body design. RAJPUR. It complements the buyers unique personality enables him to live a multi-dimensional life by the sheer excellence of its engineering and its versatility. the esteem is the perfect combination of power. ergonomically designed interior and flexible seating all set it apart from other cars. 600000 satisfied customers in India and around the world bear testimony to this fact. QUALITY AND FUEL EFFICIENCY Undoubtedly one of India’s favorite entry – level “C” class vehicles. comfort and economy. it tops its class in quality surveys. With its new contemporary and aggressive look. Not surprisingly. The Esteem offers the option of an 85 bhp petrol engine for those who desire power and a 57 bhp diesel for those who value economy. Standing testimony to this claim is the fact that more than 2 millions Maruti 800s have been sold till date. It’s also the preferred choice of rally drivers across the country for its performance and reliability. ZEN –SURRENDER TO THE NEW ZEN If you are looking for a car with drop – dad looks and unmatched performances. . the Zen preserves its core values of driver appeal. unmatched reliability and economy. Today. by bringing the joy of motoring to millions across the length and the breadthof the country. India best selling continues to be the final word on value and economy at the entry-level segment. SWIFT. ESTEEM – PERFORMANCE.It has gone beyond being just a car.YOU ARE THE FUEL 14 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. it has actually changed the lifestyles of countless people. spaciousness. then you need look beyond the Zen. the automatic climate control. Swift has entered MUL’s portfolio. with maximum ground clearance. all so affordable. the air bags. mileage coming around 20km per liter. The wait is over. Maruti presents the Maruti Suzuki Eeco – a car that not only meets your family’s dreams. SWIT DZIRE. but also helps you achieve your work aspirations! 15 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT.“LIVE THE MOMENT” Model of 2009 known by the name Suzuki splash having attractive back with maximum ground clearance EECO For those who seek happiness on four wheels for both home and work. Its sure steal many of hearts including yours. sexy interiors. world class “drive by wire” . . SX-4 – MEN ARE BACK Revolutionary European design.Most spacious in its class. luxurious interiors. RITZ . Steering mounted audio controls. it’s the best fuel efficient car in its category with. What are you waiting for? A-STAR-STOP @ NOTHING Powered by state of art 998 cc engine. RAJPUR.THE HEART CAR A car having everything you desire stunning looks. enough power to capture your heart. Just slide in desire and take it for a spin. the power steering moreover.The hot looks. high on safety with dual airbags. styling and features. the version of the Maruti 800 brand currently sold in the market is asignificantly upgraded version. design and styling. B. in terms of technology. Of these.1. and utility vehicle segment of the Indian passenger car market.” They sell ten models with more than 50 variants in segments A. For example. they retain the brand name of the product through various stages of product upgrades over time. of the Maruti 800 launched in 1983. Their models and variants are designed to address the changing demands of the market and are periodically upgraded in technology. . RAJPUR. andanticipate and address the customer’s needs and preferences in all aspects and stages of car ownership. GRADE CAR A A B B B C C C C Utility Vehicle Utility Vehicle Maruti 800 OMNI Zen Wagon R Alto Esteem Baleno Versa SWIFT Utility Vehicle GRAND VITARA 16 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. C. To take advantage of the brand recognition associated with their products. they manufacture nine models and import the Grand Vitara as a completely built unit from Suzuki in Japan.to provide what they refer to as the “360 degree customer experience.11 OBJECTIVE OF THE COMPANY Maruti’s marketing objective is to continually offer the customer new products and services that: Reduce the customer’s cost of ownership of their cars. .12THE PRODUCTION PROCESS AT MARUTI STEEL COILS BLANKING PRESSING WELDING PAINTING FROM VENDORS FROM VENDORS ASSEMBLY VEHICLE INSPECTION FROM VENDORS TEST RUN SUPPLY & DISPATCH 17 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT.1. RAJPUR. . The service network covers 1.767 authorized service outlets. RAJPUR. The company's change in strategy and emphasis on developing effective marketing communications was their highlights 18 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT.314 towns and cities. bolstered by 2.1 MARKET SCENERIO (2008 -09) Maruti has a network of 681 sales outlets across 454 cities all over India.FINANCE DEPARTMENT 2. when it became the first automobile company in India to produce one million (10 lakh) cars in a year. . of which 53. over six million Maruti cars are on Indian roads since the first car was rolled out on 14 December 1983. has been the leader of the Indian car market for over two decades. a subsidiary of Suzuki Motor Corporation of Japan. And finally in 2009-10.2 SALES ANALYSIS The company vouches for customer satisfaction. the nation's number one car manufacturer joined a select club of global automobile makers. Maruti Suzuki sold 764.2. Maruti Suzuki India Limited. 19 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. RAJPUR. During 2007-08.024 were exported. In all.842 cars. For its sincere efforts it has been rated (by customers) first in customer satisfaction among all car makers in India for ten years in a row in annual survey. 024 recorded in 2007-08. Over these 25 years the company has sold over 7 million (70 lakh) cars in the domestic market. 13 20 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. During the fiscal.167 vehicles. During the year.842 units in 2007-08. Additionally. Introduced Maruti 800 Duo . The company's sales included exports of 70. These include: • Focus on R&D: Manpower strength to 730 engineers from 460 in end March 2008. Fiscal 2008-09 marked Maruti Suzuki's Silver Jubilee year in India. During the fiscal.1 per cent over sales of 53. up by 32. • New technology engine: Brand new facility for K-series engine launched on schedule. was led by A-star. despite the challenging market situation.000 units of A-star exported to Europe including United Kingdom.023 units in 2008-09. Company plans 1. • Launching new models: A-star launched. Italy. Maruti Suzuki's Alto continued to be the preferred vehicle for the great Indian middle class crossing the 1 million-mark in cumulative sales in domestic market. the highest ever by the company. The annual sales in 2008-09 is the highest ever by the company in its 25 year history.2. France. The 2008-09 export numbers. Maruti Suzuki Swift crossed the 3 lakh-sales mark cumulative domestic sales since launch and became the quickest vehicle model to do so.an alternate fuel option that runs on LPG and petrol. the company continued its focus on long term initiatives. over half a million cars made by Maruti Suzuki have been exported world-over. RAJPUR. . The export tally includes around 19. the fuel efficient compact car launched in Europe during the year as Suzuki Alto. Netherlands. Germany.000 engineers in R&D by 2010. Denmark and Switzerland.3 HIGHLIGHTS OF 2008-09 FINANCIAL HIGHLIGHT: In the fiscal 2008-09 Maruti Suzuki sold a total of 792. The previous highest annual sales were 764. Accolades During the year. RAJPUR. o True Value : From 265 outlets (in 166 cities) last year to 315 outlets (181 cities) • Increased Pre-owned car sales from 1. • Network expansion: o Sales : From 600 sales outlets (in 393 cities) last year to 681 outlets (in 454 cities) o Service : From 2. its products and services received many awards and accolades instituted by independent expert groups. . used for A-star shipment.000 people in safe driving in three years. • Export of A star (as Suzuki Alto) to Europe commenced as per schedule. media houses and research agencies.through innovative programs. the company.government employees and rural customers . The network of Maruti Driving Schools further expanded and crossed 50 schools.23 lakh units in 2008-09 • National Road Safety Mission launched .01 lakh units in 2007-08 to 1. • Reached out to new segments of customers . These include: 21 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. • Dedicated export port facilities for cars at Mundra completed.000 to one million units (Gurgaon plus Manesar plants).• Annual capacity to manufacture expanded from 800.628 service outlets (1220 cities) last year to 2.767 (in 1314 cities).a nation-wide Corporate Social Responsibility (CSR) initiative to train 500. Maruti Suzuki India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 26. 2010 and to recommend dividend if any. to consider and approve the audited financial results for the year ended on March 31. inter alia. 3. . 1 for a record 9th consecutive year in the JD Power Customer Satisfaction Index Study.1 MARKETING DEPARTMENT 22 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. RAJPUR. on equity shares of the Company for the financial year 2009-10.• A star as the "Car of the year" • A star as the "Best small car of the year" • K10B Engine as the "Automotive technology of the year" • Maruti Suzuki as the "Manufacturer of the year" The company was rated No. 2010. 3. Marketing is a societal process by which individual and group obtain what they need and want through creating. They can arrange fore focus groups send out questioning and gather primary date in several other ways companies can duplicate and speed up internet communication money their employs. RAJPUR. its job opportunity and other information of internet to visitors.Today’s Company also has a new set of capabilities. toeing and dir exchanging products and services of value with other. the internet permit them to transmit on almost unlimited amount of information Nat only can companies and abundant information. its history. Companies can operate powerful new information and sales channel with augmented geographical reach to inform and promote there business and products and service.2 MARKET SHARE 3. its business philosophy. but they can also conduit Marketing Research using the internet.3 BUSINESS STRATEGY 23 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Unless the ads and brochures of the part. . while offering products in most segments of the Indian passenger car market. They aim to achieve their principal objectives by pursuing the following business strategies: Maintain and enhance their product range: They intend to utilize Suzuki’s expertise in small car technology to produce new variants of their existing models and to upgrade their products with contemporary technology and features. of their products across India. RAJPUR. Increased availability of automobile finance: They continue to seek opportunities to expand the size of the Indian passenger car market. Continue to benchmark their manufacturing capabilities: They plan to continue to benchmark our manufacturing capabilities with the most efficient car manufacturing facilities of Suzuki and its subsidiaries. . through facilitating easy availability of automobile finance. Secure repeat purchases by offering a “360 degree customer experience”: On the basis of their belief that securing repeat purchases from an existing customer requires less expenditure than acquiring a new customer. in terms of sales volumes. To that end. in terms of geographical spread. Increase reach and penetration: They plan to continue to utilize their extensive sales and service network to increase the reach. they aim to provide customers with a “one-stop shop” for automobiles and automobile-related products and services. they have recently entered into an agreement with the State Bank of India. especially in the small car segment. and penetration. Continue to reduce costs to offer more competitive products: 24 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT.They intend to continue to focus on the small car segment. central to their strategy as the leading manufacturer in the small car segment to expand the size of the market by offering competitively priced. RAJPUR. during the life of the vehicle. the cost of fuel and maintenance. . The components of this strategy are: • • • • • • Higher levels of localization Vendor participation in cost reduction Cost reduction on warranties Reduction in initial investment cost Reduction in number of vehicle platforms Achieve further cost reduction through higher productivity Lower cost of ownership: Through their business strategies. including spare parts and repairs. insurance.Cost competitiveness has been. which comprises the cost of purchase. they seek to reduce the consumer’s cost of ownership of their cars. high quality products. 3. and resale value.4 NEW INITIATIVES IN MARUTI SUZUKI LIMITED (one stop shop to meet all your needs) 25 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. and continues to be. Hassle-free transactions. this service includes the following: customized car policies. Branded Maruti N2N.Virtually Cashless Repairs Post accident repairs and insurance support at any dealer workshop MARUTI TRUE VALUE 26 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. maintenance. emergency assistance. insurance. MARUTI GENUINE ACCESSORIES A single point of contact. . registration. It offers the customer all the advantages of settling insurance claims directly with any of the company’s authorized dealers. Maruti has entered the car insurance business as well. servicing. accident management and eventual re-sale of cars. The service is being extended across the country in a phased manner. This business provides complete fleet solutions to corporate and institutions.MARUTI INSURANCE In an effort to become a complete car company. MARUTI FINANCE Maruti Finance offers the best finance packages to consumers across the entire Maruti range. economical car leasing. RAJPUR.Emergency Assistance . Using their technological expertise. ANYTIME MARUTI Maruti Suzuki has also set up state-of-the-art call centers (operational in Delhi. network support and the experience they have gained in the last 18 years. RAJPUR. . EXTENDED WARRANTY 4 years or 80. Bangalore and Hyderabad) Branded Anytime Maruti. Chennai. Gurgaon. the company ensures the customers gets great value and completes the transaction zero hassles.000 kms Can bought anytime during primary warranty.Maruti has taken its first steps in the pre-owned car business under the brand name of Maruti True Value. 27 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Mumbai. best at time of purchase. this 24 hour help-line clarifies all doubts and queries regarding Suzuki any time of the day or night. spares and accessories. They reward dealers who perform well on the “Balanced Scorecard” with a cash payment at the end 28 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT.3. These agreements are generally renewable for successive terms of three years. RAJPUR.5 SALES NETWORK Dealers: They offer their products to the customer through a network of 178 authorized dealers with 243 sales outlets across 161 cities.500 sales executives. Their dealers provide services to customers such as predelivery inspection of vehicles. Their agreements with their dealers usually have terms of five years. by mutual agreement. . Using this tool. In order to assist their dealers in enhancing their performance and capabilities. financial management and management systems. five area offices and 187 sales and marketing personnel. after sales service. They believe that this is the largest network of dealers amongst car manufacturers in India. They have nine regional offices. including sales. they have introduced a concept of “Balanced Scorecard”. Their dealers employed more than 3. supply of spare parts and other services that promote sales of cars within the territory for which they are appointed. Agreements with dealers: They generally appoint a limited number of dealers for a certain geographical territory. they seek to measure the performance of a dealership in several areas of operations. The sales of their spares. accessories and automobile-related services such as insurance and finance serve as additional sources of revenue for our dealers. They have the right to sell their products and services through other dealers or intermediaries in any territory. They follow the performance of their dealers and frequently suggest improvements. sales of cars. service. They believe that the availability of these related products and services at sales outlets also helps to attract customers to the outlets and promotes sales of their cars. Their dealers are required to maintain their outlets in accordance with their specifications and employ well-trained sales staff. their regional offices and their area offices monitor and assist their dealer network. They are linked to their sales network through their secure extranet-based information network. The agreements typically permit termination by either the dealer or them with six months’ prior notice. Enhancing dealer performance: Their central office in Delhi. whether or not one of their dealers is already established in that territory. 600 and 3. they have launched service stations under the brand “Maruti Service Masters. or MASSs. In order to increase the penetration.6 AFTER-SALES SERVICE NETWORK As on date there are 342 Maruti dealer workshops and 1. in three locations in India. Kolkata. Dealer training: They have established standard operating procedures.400 dealer sales personnel. they sell spares under the brand name “Maruti Genuine Parts”. to their dealers. showroom ambience and service quality standards for dealerships. They have service stations on 30 highways in India under the brand “Express Service Stations”. These are distributed through their dealer network and through authorised sellers of their spare parts. They believe that the “Balanced Scorecard” serves as an effective incentive for dealers to enhance their performance. of their products in these remote areas. they are exploring opportunities to integrate some of the MASSs into the sales process in order to increase sales of their cars and related products and services such as spares and accessories. As a benchmark for dealers with respect to service quality and infrastructure facilities.. to whom they refer as stockists. 29 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. 3. or MSMs. Guwahati and Pune. In addition.545 Maruti Authorised Service Stations. . RAJPUR. They intend to extend this service to an additional 25 cities over the next three years. or MGP. To promote sales of their spare parts and the availability of high quality. insurance and financing. 24-hour mobile service is offered in 38 cities under the brand “Maruti On-road Service”. in terms of sales volumes. reliable spare parts for their products. True Value Solutions Ltd. They provide periodic training through their training centers located at their manufacturing facility and at Chennai.of the fiscal year. provides value-added services. covering 898 cities in India. Many of their MASSs are at remote locations where they do not have dealers. They have trained more than 2. Their subsidiary. such as manpower recruitment and training. RAJPUR. The extended warranty program is intended to maintain the dealer’s contact with the customer and increase the revenue generated from sale of spares. Their dealers are required to address any claim made by a customer. They offer an extended paid-warranty program marketed under the brand. in the case of manufacturing defects. . security systems. They have entered into arrangements with insurance companies to cover the costs of warranties offered under this program. WARRANTY AND EXTENDED WARRANTY PROGRAM They offer a two-year warranty on all their vehicles at the time of sale. They seek to provide customers with the opportunity to customize their vehicles with accessories such as music systems. in accordance with practices and procedures prescribed by them. They analyse warranty claims from dealers and either claim the cost from vendors. “Forever Yours” for the third and fourth year after purchase. or bear the cost ourselves.GENUINE ACCESSORIES They have also entered the business of marketing car accessories under the brand name “Maruti Genuine Accessories”. through their dealership network. or upgrade to a new Maruti car. An effort is made during the period of the extended warranty to encourage the customer to exchange his existing Maruti car for a new Maruti car. 30 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. in the case of defective components. accessories and automobile-related services. under the provisions of the warranty in force at that time. car-care products and utility products. The dealers subsequently claim the warranty cost from them. or MGA. HMIL has announced plans for its second plant. HMIL is India's fastest growing car company having rolled-out over 970. Hyundai Motor India is on the 31 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. The plant will be built on a 2. . HMIL exports to around 60 countries globally and recently made a foray into the highly competitive UK market by exporting its first shipment of 820 cars. The Santro in the B segment. quality and testing capabilities in the country.000 in 2006.851 during calendar year 2005 with a growth of 17. HMIL’s service network will be expanded to over 1.3. The company recorded combined sales of 252.000 per annum by 2007. the Elantra in the D segment.1 million square meter site adjacent to the existing facility .800 crores.000 units per annum. Propelled by the strong performance in year 2005. which will produce 300. In continuation of its investment in providing the Indian customer global technology.000th” export car. which will be increased from 157 to 200 this year.26% over year 2004. Apart from expansion of production capacity. HMIL plans to expand its dealer network. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production. RAJPUR. Getz in the B+ segment. 1. the Accent in the C segment. South Korea and is the second largest and the fastest growing car manufacturer in India.000 cars in just over 80 months since its inception and is the largest exporter of passenger cars with exports of over Rs.2% in exports over the year 2004. raising HMIL’s total production capacity to 600. The year 2005 has been a significant year for Hyundai Motor India. the Sonata Embera in the E segment and the Tucson and Terracan in the SUV segment.HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. HMIL presently markets 31 variants of passenger cars in six segments. HMIL has recorded a growth of 27.7 THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY HYUNDAI MOTOR INDIA LTD Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company. And with the company’s greater focus on the quality of its after-sales service. It achieved a significant milestone by rolling out the fastest “200. Tata Motors has the unique distinction of giving India its first and only indigenously built passenger car . FORD INDIA LIMITED 32 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. development. The Indica. utility vehicles and passenger cars. manufacturing. RAJPUR. It would be no exaggeration to say that Tata Motors provides the wheels for India's growth. assembly and quality control. Every stage of product evolutiondesign. Pune in the West and Lucknow in the North.000 sales mark within 52 months of launch. Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation.50.35 billion. . This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology.The Tata Indica and the premium feature sedan . is carried out meticulously. buses. launched in 1998. Tata Motors is India's only fully integrated automobile manufacturer with a portfolio that covers trucks.The Tata Indigo. Their manufacturing plants are situated at Jamshedpur in the East. TATA MOTORS Tata Motors is one of the largest companies in the Tata Group with a total income of US$ 2. More than 3 million Tata vehicles ply on Indian roads making Tata a dominant force in the Indian automobile industry.threshold of yet another grand milestone of rolling out its ‘One millionth’ car which is expected soon. reached the 2. currently Ford has a 78% stake.Customer) wherein daily random checks are conducted from a customer's point of view. equipped with state-of-the-art vehicle manufacturing technology from Ford. It is among the top five industrial corporations in the world and is available in more than 200 countries around the world. Its intensive manpower training.from Chennai.up with Mahindra Motors to manufacture the Ford Escort.The Ford Motor Company has a rich legacy of translating better motoring ideas to the roads.The plant has the capacity to manufacture 1. . GENERAL MOTORS INDIA 33 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. provides employment to over 20000 people. Lincoln. Presently offering seven different models. Acknowledgement has come in the form of the J D power 1997 India Initial Quality and Customer Satisfaction Awards. advanced service equipment and dedicated consumer satisfaction are the are its plus points which is being followed by the entire industry. To be doubly sure.C (New Overall Vehicle Audit . This is an honour as it its only the second time in automotive history that the same brand/manufacturer has received both the awards in the same year. A project that has been set up with a investment of Rs. routine calls are made to dealerships to check the quality of cars delivered to them. Mercury and the Jaguar. The Maraimalai Nagar Plant of Ford India Limited. It has manufactured notable brands such as the Ford. At Mahindra's dealerships are present trained professionals who provide the best levels of service in India.000 vehicles per annum. RAJPUR. located roughly 45k. Ford has entered the Indian market through a tie . These internationally acclaimed and recognized awards voted the Ford Escort as the Best Quality car and the Mahindra Ford and its dealerships were rated the highest in Customer Satisfaction. Ford India Limited is a subsidiary of Ford Motor Company.00. Ford India Limited (FIL) is catching up fast with the Indian consumer. which is going up to 92% soon.1700 crore.m. This is secured through a quality check program based on the principles of NOVA . In 1994. Similarly in 2004. The SPO business was integrated with the main business in the same company in 2000. The sales volume in 2003 was 15.000-square-meter plant near Halol.General Motors India. the market share of GM India has gone to nearly 2%. 1999.155 cars in 2003 registering a growth of 73% while overall passenger car growth during the year was only around 23-24%. GM bought the holdings of Hindutan Motors and GM India became a 100% subsidiary of General Motors Corporation of USA. and Holden (Australia) holds 14 percent. In February. In India. RAJPUR. and Chevrolet Tavera. Birla Group of Companies. The Chevrolet Forester and Opel Vectra are sold as CBUs (Completely Built in Units) and as imported from Japan and Germany respectively. 45 kilometers northwest of Vadodara. in the western state of Gujarat. With sales volume going up. incorporated in 1994 as a 50-50 joint venture company with the C. GM India entered into a 50% Joint Venture partnership with Hindustan Motors and modernized the 45. Corsa Sail. GM strengthened its presence with new product launches Chevrolet Optra in 2003 and Chevrolet Tavera (Multi Utility Vehicle) in 2004. GM APH LLC currently holds 86 percent of voting shares. . the company sold a total of 26.155 units while 2004 figure is expected to be around 27. Chevrolet Optra. The existing GM India plant was originally built by Hindustan Motors. TOYOTA 34 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT.K.000 units.166 cars as against 15. In 2004. 8369 Opel Corsas and 8417 units of the new generation premium multi-utility vehicle (MUV) Chevrolet Tavera. These included 9191 Chevy Optras in Entry 'D' Luxury sedan segment. GM India is expected to register a growth of 90% over 2003. The company was restructured in 1999 and was converted from a Public Limited company to a Private Limited company. The plant produces the Opel Corsa. became a fully owned subsidiary of GM in 1999 when GMOC bought the remaining shares. events. Special Invite to co-sponsored events. like Customer gets free service voucher with the card.3. To promote their product they organize exchange mela. They offer good schemes like providing free Test Drive worth Rs 250 petrol at the time of sale of any car. . They reach to the customers either by distributing Leaflets. They launch one “Co Branded Credit Card” to provide additional benefits and services to the Toyota customers. They provide 4 free services after sale and with full clean diesel. adjustment and lubrication that will keep vehicle in the safest and most efficient condition. they provide one booklet in which they give simple and useful tips for maintenance of the car. They do road shows to attract customers. Toyota) they are giving free accessories worth Rs15000. Recently they organized one drawing competition between the kids of their existing customers just to interact with the customer and build loyalty of their company products.Toyota Motor Corporation is the third largest automaker in the world. Personal accident insurance coverage: Up to 20 lakhs etc. All employees of Galaxy Toyota shall consider how they should act and how they might change their ways to benefit the company. RAJPUR. which will ensure that vehicle. This Credit Card will give Toyota customers a better payment flexibility and convenience. They have one Guest 35 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. The maintenance schedule may include periodic inspection. They target only high profile customers. They build customer loyalty by giving happy calls to the customer after sale of every 1. They collect customer database from Directory (Yellow Pages) or through customer references even they solve customers query online and give information through emails.7 month. Brochures to the customers. They provide Periodic maintenance schedule. is kept in best able-bodied at all times. various cash discounts like currently they are running one discount scheme on purchase of any of their car (Innova. They have 34 dealers in India and in Delhi they have 2 dealers. first one is ‘South Delhi Toyota’ and second one is in Moti Nagar in which They work by dividing their work like in one showroom they have separate teams for every product like relating to Corolla it comprises of 7 or 8 executives who handle all the work weather it is of sale or any enquiry or telemarketing call that team must have some specific target to achieve. They judge their customer satisfaction by analyzing that repeat buyers are more or not & moreover they have customer feedback form in which they can analyze customers background and can forecast customer future demands. which will help them to improve their service. The reason is simple: Civic is a new car from the house of Honda. They have Feedback form in which they take feedback of the customer as well as their salesperson because through this they are able to get the information of both the 36 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. to have interaction with customer in a minute to know that are they satisfied with their services and what they are expecting from them in the near future.Book in which they store valuable comments of customers. They prefer to have mode of communication with the customer through mail. They are now focusing on their new model ‘Civic’. To judge customer satisfaction they some times invite their customers to have a get together. To increase their sales they try to extort surreptitious information from the customers and on their end they aim to ensure that the product quality and product quantity should be available in required quantity in their dealership. They have a good superiority with superior brand name in the country. RAJPUR. . They display their models in 8th Auto Expo. which they think are very important for them. Honda's Civic perhaps drew the maximum attention. they have 6 dealers. Customers who don’t have time even to see the model or to call the dealer to make inquiries about their reservation they desire to solve their query online itself. HONDA Honda is one of the leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. During my survey I get to know that Honda City Model is the second largest selling car in the ‘C’ segment. only through this they are able to make good sales. which held in New Delhi. They do surveys to know customers need. I have visited one of them. They target either existing or their perspective customers by giving advertisement in the newspaper or through there satisfied customers which give references. They don’t believe on targeting competitor’s customers because by not doing so they have such a brand reputation with good quality products. telephone and sometimes by letter. They have 20 dealers in 42 different cities around India. They make maximum of their sales from the fresh customers rather than their repeat purchasers. 9 COMPETITIVE FORCES IN INDIAN PASSENGER CAR MARKET 37 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. 3. This Dealership even provide technical skills and techniques to their employees that how to deal with the customer thoughtfully every after 6 months.8 COMPARATIVE STUDY OF MODELS OF MARUTI AND ITS COMPITATORS IN DIFFERENT SEGMENTS 3. . RAJPUR.customer & their salesperson that are they giving the full information to the customer. Automotive players are rationalizing their vendor base to Market strength of consumers: Increasing Rivalry within the industry: High There is keen Competition in select segments. (compact and mid size segments). Lower tariffs in post WTO may expose Indian companies Market strength of suppliers: Low A large number of automotive components suppliers. This is related to the quantum of investments made by the players in capacity creation and the selling price of the car. Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities for semi 38 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. The amount of investment in capacities by passenger car manufacturers in turn epends on the production Threat from the new players: Increasing Most of the major global players are present in the Indian market. inter product substitution is taking place (Mini cars are being replaced) strategies of the car manufacturers. New multinational Increased competitive intensity has limited the Increased awareness among consumers has increased expectations. Access to distribution network is important. Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital. few more are expected to enter. Product differentiation via new features. . Thus the ability to Innovate is critical. improved performance and after sales support is critical. RAJPUR.Critical Issues and Future Trends The critical issue facing the Indian passenger car industry is the attainment of breakeven volumes. Threat from substitutes: Low to medium With consumer preferences changing. both in terms of volume of vehicles sold and revenue earned. Marutis are sold in India and various several other countries. of India no longer has stake in Maruti Udyog. In recent years. its' only competitors. . India is also likely to increasingly serve as the sourcing base for global automotive companies. the growth rates are likely to vary across segments. it is likely to continue losing market share. Although the Mini segment is expected to sustain volumes. of India sold its complete share to Indian financial institutions. This apart. Maruti has produced over 5 Million vehicles.000 cars annually. However. in terms of engine capacity. As of May 10. The Indian government held an initial public offering of 25% of the company in June 2003. Maruti Udyog Limited (MUL) was established in February 1981. even though the ratio of sales to capacity (an important indicator of the ability to reach break-even volumes) of the domestic car manufacturers have improved. Maruti 800.the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Govt. and automotive exports are likely to gain increasing importance over the medium term. Additionally. based on the Suzuki Alto kei car which at the time was the only modern car available in India. Govt.2% by Suzuki of Japan.28% of the company was owned by the Indian government. With this. Until recently. RAJPUR. and 54. depending upon export orders. 2007. Through 2004. Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment. growth in the medium term is expected to be led largely by the Compact and Mid-range segments. 18. The company annually exports more than 50. till 2004.000 cars and has an extremely large domestic market in India selling over 730. Models similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries. Morethan a 39 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT.was the India's largest selling compact car ever since it was launched in 1983. though the actual production commenced in 1983 with the Maruti 800. it is still low for quite a few car manufacturers in India.knocked down kits or complete knocked down kits. competition is likely to intensify in the SUV segment in India following the launch of new models at competitive prices. the Indian passenger car market is moving towards cars of higher capacity. the term "Maruti" is commonly used to refer to this compact car model. 40 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Zen Estilo. Versa. . remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.Ritz.842 cars. in popular Indian culture.000 units per year and a Diesel Engine plant with an annual capacity of 100. which owns 54. Baleno. Due to the large number of Maruti 800s sold in the Indian market. A star and SX4 are maufactured in Manesar. Swift Dzire. RAJPUR. lightweight engine that is clean and fuel efficient. Gypsy.000 units per annum. Swift dzire. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact. Maruti Suzuki India Limited.000 engines and transmissions. is a global leader in mini and compact cars for three decades. Swift.2 per cent of Maruti. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. Currently.000 units annually. A Star. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. The Manesar facilities. Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment. Till recently the term "Maruti". Maruti’s Gurgaon facility has an installed capacity of 350. a subsidiary of Suzuki Motor Corporation of Japan.More than half the cars sold in India are Maruti cars. the parent company. Maruti Suzuki sold 764. launched in February 2007 comprise a vehicle assembly plant with a capacity of 100.million units of this car have been sold worldwide so far. has been the leader of the Indian car market for over two decades. The rest is owned by the public and financial institutions. Swift. Suzuki Motor Corporation. Maruti 800. Inall.Esteem. During 2007-08. was associated to the Maruti 800 model.024 were exported. Manesar and Gurgaon facilities have a combined capability to produce over 700. Alto. SX4. Maruti Suzuki offers 15 models. Grand Vitara is imported from Japan as a completely built unit (CBU). 1983. of which 53. Wagon R. Japan. The company is a subsidiary of Suzuki Motor Corporation. and Grand Vitara. Omni. over six million Maruti cars are on Indian roads since the first car was rolled out on December 14. 4.000 people are employed directly by Maruti and its partners.1 INTRODUCTION 41 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. .Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75. RAJPUR. 3 MARKET RESERCH PROCESS Step 1:42 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Marketing Research is a continuous activity. distribution analysis and competition analysis. why they sales company’s product and ratio of the product sales etc. such as:- 4.Philip Kotler. The selection of decision depends upon the information available to him.2 TITLE OF PROJECT – ‘ Competitive Analysis and Sales Trend” Period of Project – 6 to 8 weeks There are six steps involve in effective marketing research process: 4. In our market research process we had followed different steps of marketing research.The marketing manager had to take various decision regarding activities of marketing. are the questions that might spore within managers for answers of such questions. . If has to decide about many matters such as who are dealer. RAJPUR. “Marketing Research is a systematic problem analysis model building and facts binding for the purpose of improve decision making and control in the marketing of goods and service” . It includes product analysis. Market analysis. A new concept establish in marketing which is called marketing research. Define the problem and research objectives It is extremely important to define the problem very clearly. The marketing manager needs to know the Cost of the research plan before approving it. research instruments. primary data. print media and other source. or both.Primary data can be collected in five main ways: through Observation.I gathered data from external source like website. More specifically defined the objectives would be to find out the kind of accounts being closed down and the objective would be stated as “To study the reasons for closure of savings accounts in urban and metro areas”. Step 2:Develop the research plan The second stage of marketing research calls for developing the most efficient plan For gathering the needed information. Primary data – I have used questionnaires to collect primary data by survey and interview method. The Objectives of the research have to be very clearly defined. surveys. Secondary data . Data sources: . research approaches. No amount of Vagueness is acceptable here. . and experiments. focus groups. Sampling plan. RAJPUR.The researcher can gather secondary data. Research approaches: . and contact methods. behavioural data. Primary data are data freshly gathered for a specific research Project. RESEARCH INSTRUMENTS:Marketing researchers have a choice of three main research Instruments in collecting primary data: 43 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Designing a research plan calls for Decisions on the data sources. Secondary data are data that were collected for another purpose and already exist somewhere. RAJPUR. (a) Qualitative measures: . (b) Mechanical devise: -Mechanical devices are occasionally used in marketing research .Some marketers prefer more qualitative methods for gauging consumer opinion because consumer actions do not always match their answers to survey questions.I have use questionnaires instrument to collect primary data. the marketing researcher must design a sampling plan.Mechanical devices like galvanometers measure the respondent’s interest or emotions aroused by exposure to a specific ad or picture. and they are a creative means of ascertaining consumer perceptions that may other-Wise be difficult to uncover. Qualitative research techniques are relatively unstructured measurement approaches that permit a range of possible responses. SAMPLING PLAN: After deciding on the research approach and instruments. This calls for three decisions: 44 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. . My sample size is 100 car user. and Raysan nearest Gandhinagar whose used car.Who is to be surveyed? The marketing researcher must define the target population that will be sampled.How should the respondents be chosen? To obtain a representative sample of the population should be drawn. Kudasan. Some marketing researchers feel that no probability samples are very useful in many circumstances. My sampling unit is 100 from Koba. even though they do not allow sampling error to be measured. CONTACT METHODS:Once the sampling plan has been determined. (c)Sampling procedure: . it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. the marketing researcher must decide how the subject should be contact: I have taken personnel interview and telephonic contact method. However. . 45 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT.(a)Sampling unit: . RAJPUR. Probability sampling allows the calculation of confidence limits for sampling error.How many people should be surveyed? Large samples give more reliable results than small samples. (b)Sample size: . researcher can include a questionnaire on its Web site and offer a people to answer the questionnaire. There are so many ways to use the Net to do research. Personal interviewing takes two forms. In arranged interviews. (d)Online interviews: . Step 3:-Collect the information The data collection phase of marketing research is generally the most expensive and the most prone to error. Some respondents will not be at home and must be contacted again or replaced. The response rate is typically higher than in the case of mailed questionnaires. RAJPUR. (b)Telephone interview: . four major problems arise. (c)Personal interview: . the interviewer is also able to clarify questions if respondents do not understand them. In this case of surveys.The mail questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. Mail questionnaires require simple and clearly worded questions. such as dress and body language. respondents are contacted for an appointment. Intercept interviews involve stopping people at a shopping mall or busy street corner and requesting an interview.(a)Mail questionnaire: . The interviewer can ask more questions and record additional observations about the respondent.There is increased use of online methods. In this method.Personal interviewing is the most versatile method. Other respondents will refuse to cooperate. 46 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. and often a small payment or incentive is offered. Still others will give biased or dishonest answers.Telephone interviewing is the best method for gathering information quickly. . Getting the right respondents is critical. the findings support their inclination.Finally. It is important to recognize that not everyone in the sample population will be online. The researcher tabulates the data and develops frequency distributions. The researcher should not overwhelm management with lots of numbers and fancy statistical techniques. but rather should present major findings that are pertinent to the major marketing decisions facing management. They may even decide to study the issues further and do more 47 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. . Averages and measures of dispersion are computed for the major variables. Step 5:-Present the findings As the last step in marketing research. If their confidence in the findings is low. If they are predisposed to launching the service. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings. Step 4:-Analyze the information The next-to-last step in the process is to extract findings from the collected data. Step 6:-make the decision The managers who commissioned the research need to weigh the evidence. the researcher presents his or her findings to the relevant parties. RAJPUR. they may decide against introducing the in-flight internet service. some interviewers will be biased or dishonest. Finding:48 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. but hopefully the research provided them with insight into the problem. No . The decision is theirs. (1) Have you heard about Maruti Suzuki? Yes Objective – from this question I know about awareness of Maruti Suzuki and start interaction with customers. Now after collection data we have to interpret those data for any suggestion.research.” This means first we have to define the problem and research objective. Along with this there may be 3 type of research methodology these are :They are – · Exploratory Research · Descriptive Research · Casual Research Our research is based on the exploratory research. Exploratory Research “The objective of this research is to gather preliminary information that will help us to Define the problem and to suggest any hypothesis. RAJPUR. then we have to develop the research plan for collecting information. . RAJPUR.Answer Response Percentage Yes 100 100% No 0 0% Total 100 100% INTERPRETATION: From the above graph I have found that 100% people are aware about the maruti Suzuki all the respondents are well familiar with maruti Suzuki cars. So we have found that Maruti Suzuki is very well known company in Indian car market (2) Do you use four wheeler? Yes Objective:To know respondents are using the car or not No Answer Response Yes 100 No 0 Total 100 49 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Percentage 100% 0% 100 INTERPRETATION: From the above graph we have found that 100% respondent of our survey is used car of various brand and we have selected only respondent who is using car now in present so 100% respondents are giving Ans in yes. (3) Which Company’s car do you use? Objective:To know respondents are using which company car. Tata Ford GM Mahindra Hyundai Mitsubishi Maruti Suzuki Honda 50 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT, RAJPUR. Volkswagen Answer Response Percentage Tata 10 10% Hyundai 15 15% Ford 8 8% Mists 6 6% GM 12 12% Maruti 27 27% Mahindra 8 8% Honada 12 12% Volks 2 2% 100 100% INTERPRETATION: From the above graph we have found that majority of car user from Maruti Suzuki is27% of total population then after we have found that Hundai is major competitor of Maruti Suzuki its portion in total population is 15% General Motors & Honda have cover 12% of the target population then Ford & Mahindra cover 8% of target population and 2% respondents are using Volkswagen. (4) What was your purchase priority for your car? Objective:To know which feature is most consider in buying a new car by the respondents. For better driving performance For better look For low maintenances For better fuel efficiency 51 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT, RAJPUR. For better after sales service For better ground clearance Answer Driving Response 7 Percentage 7% Look 14 12% Maintenance 21 18% Mileage Service 47 8 47% 8% Ground Clearance 3 3% Total 100 100% INTERPRETATION: Now a day people are more aware about mileage in buying a new car 47% respondent give priority on mileage then after 21% of respondent give priority to after sale service & maintenance,14% respondent are giving more priority to look & appearance of the car,7% respondent give priority to consider good driving performance in buying a new car (5) Do you want to replace your old car in near future? Objective:To know respondent are ready to replace their old car in near future Yes No Answer Response Percentage Yes 32 32% No 68 68% Total 100 100 52 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT, RAJPUR. INTERPRETATION: From the above graph we found those 32% respondents are ready to replace their car in near future and 68%respondent are not ready to replace their old car in near future because they have all reedy buy a new car from last two to four years. (6) By how long do you plant to exchange your old car? Objective:To know respondents are ready to exchange their old car in how many years 0 To1 Year’s 2 To 3 Year’s 4 To 5 Year’s 1 To 2 Year’s 3 To 4 Year’s Above 5 Year’s 53 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. RAJPUR. . Lks) Suv Car Executive Car (5to10.4 years are respectively 19%.Year Response Percentage 0 to 1 6 6% 1 to 2 8 8% 2 to 3 11 11% 3 to 4 19 19% 4 to 5 24 24% 5 & Above 32 32% Total 100 100% INTERPRETATION: From the above research we have found that 6% respondents are ready to plane to exchange their within one year car 8% respondent say to exchange their car within two years and respondent who exchange their car within 3.24%. Lks) Sedan 54 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. RAJPUR. . (7) In which segment you prefer to purchase a new car? Objective:To know the preference of respondent in buying a new car & to know which segment is most like by respondents Small Car (3to5.and majority of respondent are say that they are ready to exchange their their car after five years. Lks) Luxurious Car (Above. (8) Which Company’s new car do you prefer. RAJPUR. 50lks) SUV 8 8% Sedan 3 3% Luxurious 2% 2% Total 100 100% INTERPRETATION: From the above graph we found that major respondent give preference to a executive car in buying their new car because they have already small car so they have planning to buy a executive car 49% respondents planning to buy a executive car and another major portion of respondent are planning for buying small car because of easily driving in traffic and upgrading their old model of car and 8% respondent required sport car and 3% are prefer sedan car for comfort and status 2% respondent required to purchase upgrading their sedan car in to luxury car. . which replacing your old car? Objective:-To find out respondent interest in which brand car for replacing their old car Tata Ford Fiat Nissan Honda Hyundai Mitsubishi Maruti Suzuki Mahindra Volkswagen 55 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. 50lks) Car Response Percentage Small 38 38% Executives 49 49% (25to.(10to25. Answer Tata Hyundai Ford Mitsubishi GM Maruti Suzuki Nissan Mahindra Honda Volkswagen Total Response 8 28 5 4 12 23 2 6 11 1 100 Percentage 8% 28% 5% 4% 12% 23% 2% 6% 11% 1% 100% INTERPRETATION: Fromm the above data we have found that customer are like to exchange their car with Hyundai is 28% & 23% respondent are ready to replace with Maruti Suzuki then after respondent give priority to General Motor is 12% & respondent who exchange their car with Honda is 11% and respondent give priority to exchange their old car with other brand are like Tata. 2%. Nissan. 6%. RAJPUR. Ford. Yes Answer Response Percentage Yes 22 22% No No 78 78% Total 100 100 56 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Mitsubishi & Volkswagen are respectively 8%. 4%. Mahindra. . 1%. (9) Are you ready to replace your car with Maruti Suzuki? Objective:To find out respondents interest in replacing their old car with maruti Suzuki. 5%. To find out which model is like by the Answer Response Percentage respondents. Eco 6 6% RAJPUR. (10) Which model you like most in Maruti Suzuki? Objective:. Alto 8 8% A star 3 3% Alto A-star WagoneWagone R 15 15% R Omni Omni 4 4% Zen Zen Estilo Swift Ritz Zen 3 3% Sx 4 Eeco Vitra Zen Estilo 9 9% Desire Swift 21 21% Ritz 3 3% SX 4 8 8% 57 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Vitra 2 2% Desire 18 18% Total 100 100% .INTERPRETATION: From the above graph we have found that 22% respondents are ready to replace their car with maruti suzuki & 78% respondent say No. zen ritz like by 3% same respectively 2% respondent like vitracar (11) What is your overall opinion about Maruti? Objective:To find out overall opinion toward maruti Suzuki by the respondents.INTERPRETATION: From the above graph we have found that which model of maruti suzuki is most like by the respondent from the research data we analysis that swift is most likable model of the maruti suzuki 21% respondent are like the swift second reference of car in executive car respondent also like the desire 18% respondents are like the desire model of maruti suzuki wagon R is most like by the middle class respondent who want a good car at low price 15% respondent are like wagon R model of maruti Suzuki alto & sx4 is like by 8% respondents zen estilo is like by the 9% respondents eco is like by 6% respondents omani like by 4% respondent A star. 1 Very Bed 2 Bad 3 Neither Bad Nor Good 4 Good 5 Very Good 58 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. . RAJPUR. (12) Any suggestion do you want to give about Maruti Suzuki? Objective:To find out any suggestion by respondent which will help to improve performance of maruti Suzuki? from the above question we have found many suggestion from the respondent is us under 59 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. .Answer Very Bad Response 4 Percentage 4% Bad 7 7% Neither Nor 12 12% Good 57 57% Very God 20 20% Total 100 100% INTERPRETATION: From the above graph we have found that overall respondents opinion about maruti Suzuki is good 57% then 7% respondent say bed & 20% respondent say very good opinion to maruti Suzuki &12% respondent say neither good nor bed nor good say average opinion toward maruti Suzuki. RAJPUR. One respondent say in service station company employee change their car original spar part and replace old part in his car 3. RAJPUR. Some respondent say that maruti Suzuki car are not maintain their durability for long time SWOT ANALYYSIS OF MARUTI SUZUKI INDIA LTD. Respondent suggest the company to reduce their delivery time of their car because it’s too long than any other company in car market. 5. .1. 4. Many respondents say to improve quality of service station because of sometime they can’t get good service from their service station 2. STRENGTHS:- India’s largest car manufacture across the country in automobile industries Largest car seller in India. MARUTI SUZUKI has created one image as trustable in customer.. Some respondents have suggest that they have to purchase another company car because of maruti Suzuki car is not available on the sport 6. 60 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Respondent want new luxury car from maruti Suzuki. Company having good reputation in automobile industry. . Company providing various segment car at lowest price then its competitor . OPPORTUNITY High end car segment Overseas market Improve handling 61 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. Distributor network brand loyalty. High fuel efficiency WEAKNESS: Low Resale value Low engine capacity. Japan technology and Service distribution After sales service Cost-effective Low maintenance Indian middle-class Low price. RAJPUR. RAJPUR. Add extra features to small segmentcars Attracting youth Export small cars TREAT: Fuel price Foreign brands Price high of raw material Small car competition KEY COMPETITORS Tata Motors Hyundai Ford FIAT General Motors Honda 62 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. . To improve the performance of engine. 63 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. . Wagen R most like by middle class respondents SUGGESTION: Respondent suggest the company to reduce their delivery time of their car because it’s too long than any other company in car market so reduced delivery time of car when customer place order. From the research web have found that some respondents are brand loyal of maruti Suzuki Respondent want luxury car from maruti Suzuki. Maruti Suzuki have give more concentration to village area also to increase their sales volume.FINDING & SUGGESTION FINDING: Maruti Suzuki has given more concentration to village area also because of now a day village area people are also capable to buying a car. RAJPUR. Maruti Suzuki swift car is most likable car by respondent. so it can be said that the chosen sample is not representing whole population. The sample size was small.LIMITATIONS This report had to take several constrain and limitation. 64 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. . It may be possible that the respondents are providing wrong information. The psychology and temperament of the respondents of the respondents play a significant role. Some of them are as under. Duration of study is very short and it is not possible to understand whole market within this short span. A change in the composition of the respondents can affect the answers adversely or favorably. The sample size of customers was very small and in selected area so the response from them does not reflect the exact view because they may be biased. Some respondents are more sensitive as against who are more tolerant. Convenient sampling was used as the mode of conducting the research. RAJPUR. The overall system should have perfect co-ordination and cooperation among all its activities starting from the product in the production process till it is sold to a customer. Maruti Suzuki can be said as the most reverential and one of the best managed company of India.CONCLUSION After in depth survey. RAJPUR. This requires use of promotional schemes that are the most essential in today’s market. Maruti has proved that it has well established and robust network system. 65 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT. One important part of automobile companies is its distribution network. . In order to achieve higher growth rates per capita consumption and penetration levels have to be increased. analysis and study a conclusion can be made that most of the customers are enough satisfied with the company. Though this could not guarantee brand loyalty by the consumers but at least the customers will try the products and generate sales for the company.