RESEARCH PROJECTON “A STUDY OF MARKETING MIX OF MARUTI SUZUKI” AMAR SHAHEED BABA AJIT SINGH JUJHAR SINGH MEMORIAL COLLEGE Affiliated To PUNJABI UNIVERSITY PATIALA In the partial fulfillment of requirement for the award of Degree of Bachelor of Business Administration (BBA ) Submitted To: Submitted By: Punjabi University Patiala Bhupinder Singh Roll.No. 2170 B.B.A- 6th Sem. 1 DECLARATION I am a student of BBA 6th Semester of AMAR SHAHHED BABA AJIT SINGH JUJHAR SINGH MEMORIAL COLLEGE, BELA declare that the Project Report entitled A STUDY OF MARKETING MIX OF MARUTI SUZUKI is the outcome of my own work and the same has not been submitted to any university/institute for the award of any degree or any Professional Degree. Date: Bhupinder Singh 2 ACKNOWLEGEMENT “Success is not a description, but a journey.” While I reach towards the end of this journey, I realized I may not have come this far without the guidance, help and support of the people who acted as guides, friends and torch bearers along the way. I take this opportunity to thank Prof. Gurlal Singh without their cooperation I would not have been able to complete this project. I express my deepest and most sincere thanks to my organization guide, Mr.Harjit Singh (Manager) from who I had the opportunity to learn a lot, I would like to thank him for giving me valuable suggestion and guidance with which, my project would have been complete. 3 INDEX Student Declaration 2 Acknowledgement 3 Chapter 1 About the Company 5-33 Chapter 2 Research Methodology 34-37 Chapter 3 Marketing Strategies 38-80 Chapter 4 Findings and analysis 81-85 Chapter 5 Conclusion 86--87 Chapter 6 Recommendations 88-89 Chapter 6 Bibliography 90 4 . 1 ABOUT THE COMPANY 5 .Chapter: . Through 2004 . 6 . Models similar to Maruti Suzuki ( but not manufactured by Maruti udyog) are sold by Suzuki Motors corporation and manufactured in Pakistan and other south Asian countries.000 cars and has an extremely large domestic market in India selling over 7. held an initial public offering of 25% of the company in June 2003. Till recently the term “ Maruti” in popular Indian culture in India. Maruti Udyog Limited (MUL) was established in February 1981. Maruti 800 till 2004 was the India’s largest selling compact car ever since it was launched in 1983. The company anually exports more than 50. Maruti Suzuki had produced over 5 Million vehicles. As of 10 May 2007 government of India sold its complete share to Indian financial Institution. Its only competitor was Hindustan Motor’s Ambassador and the Premier Padmini were both around 25 years out of date at that point. More than a Million unit of this car have been sold worldwide so far.1 Introduction Maruti Suzuki is India’s number one leading automobile manufacturer and the market leader in the car segment both in terms of volume of vehicle and revenue earned.000 cars anually.Due to large number of Maruti 800’s sold in the Indian market the term “Maruti” is commonly used to refer to this compact car model. The Indian Govt.2% by the Suzuki of Japan.28% of the company was owned by the Indian government and 54. Of India has no longer stake in Maruti Udyog. Currently Maruti Suzuki Alto tops the sales chart and Maruti Suzuki Swift is the largest selling car in A2 segment. Maruti Suzuki are sold in India and various several other countries depending upon export orders. Hindu’s lord Hanuman is known as “Maruti” was associated with Maruti 800 model. though the actual production was started in 1983 with the Maruti 800 based on the Suzuki Alto Kei Car which at that time was the only modern car available in India. Until recently 18. With this govt.30.1. 7 . Swift Dzire.D. Alto. Swift. The rest is owned by the Public and Finance Institution. A Star.000 units per year and a Diesel Engine plant with an annual capacity of 1. Products Offered Maruti Suzuki offers 15 models and they are.000 engines and transimission. Swift Dzire . Omni. Over Six Million Maruti Suzuki cars on Indian roads since the first car was rolled out on 14 December 1983.000 people are employed directly by the Maruti Suzuki and its Partner. Eeco.000 units per annum. Omni . The Manesar facility launched in February 2007 comprises a vehicle assembly plant with a capacity of 1. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J. Ritz. Swift. Ritz. During 2007-08 Maruti Suzuki sold 7.64.2 percent of Maruti Suzuki.024 are exported in all. Maruti 800. A Star and SX4 are manufactured in Manesar and the remaining models such as Maruti 800. Eecoetc are manufactured at Gurgoan Plant.Out of these models Grand Vitara is imported from Japan a completely built unit (CBU). Maruti Suzuki’s Gurgoan facility has an installed capacity of 3. Alto.00. Power Asia Pacific. “Gurgoan” and “Manesar” south of Delhi.000 units annually. SX4.842 cars of which 53.Manufacturing Facilities Its manufacturing facilities are located at two facilities. Wagon R.50. Zen Estilo. Gypsy and Grand Vitara. Human Resources Nearly 75. Manesar and Gurgoan facility have a combined capacity to produce over 7. Zen Estilo.00.00. 8 . Wagon R. The company is a subsidiary of Suzuki Motors Corporation of Japan which owns 54.More than a half of the cars sold in India are Maruti Suzuki cars.It was listed on the Bombay ( now Mumbai) stock exchange in India. Indira Gandhi . Of India as a joint venture parteners with 50% share. Indira Gandhi’s cabinet passed a uninamous resolution for the devlopment and production of “people’s car”. The name of the car was choosen as “Maruti”. envisioned the manufacture of an indigenous . After the death of Sanjay Gandhi.1983. Sanjay Gandhi was awarded the exclusive contract and licence to design. and funds. Over the next few years the company was sidelined due to the Bangladesh Liberation war and the emergency. Sanjay Gandhi.820 cars. devlop and manufacture the “People’s car. In the early days under the powerful patronage of Sanjay Gandhi. By the year 1994 the company had sold upto 1. cost – effective . Indira Gandhi decided that the project should not be allowed to die. The media perceived it to be another area of growing corruption. low maintenance compact car for the Indian middle class. becoming the first Indian company to cross this milestone. tax breaks . 2003. mostly by selling its cheif product the “Maruti 800”.The company went into liquidation in 1977. Political advisor and younger son to then Prime minister of India.000 cars for the decade ending 1983.This exclusive right of production generated some criticism in certain quaters. It reaches the 2 million mark in October 1997. It created record by taking 13 months to go from design to rolling out car from a production line.96. Maruti entered into collaboration with Suzuki Motors . 9 .1. For the next ten years the Indian car market had stagnated at a volume of of 30.2 History Around 1970. the Premium Padmini which was slowly gaining a part of the market share dominated by the Ambassador. it produced one million vehicle . after the name of a hindu deity named Marut. Unfortunately Maruti started to fly only after the death of Sanjay Gandhi.000 to 40. which was directly targeted at Indira Gandhi . By March 1994. when Suzuki joined the Govt. The collaboration heralded a resolution in the Indian car industry by the production of “Maruti 800”. Sanjay Gandhi’s company was christened Maruti Limited. The car went into sale on December 14. At that time Hindustan Motor’s Ambassador was the cheif car and the company had came out with a new enterant . and rolled out its 4th million vehicle an ALTO (LX) on April 19. Till the end of 1970’s the company had not started the production and a prototype test model was met with criticism and skepticism. the company was provided with free land . These ranges from Economy cars to Luxury cars to Super SUV’s. Maruti Udyog Limited (MUL) was established in February 1981 through an act of parliament. It has completely revolutionised the Indian car market and has brought out numerous model to cater to every section of society. 10 . The Company entered into collaboration with Suzuki Motors of Japan to manufacture cars. is the premium car company in India.The main objectives behind formation of Maruti Udyog Limited was to meet the growing demand of a personal mode of transport caused by the lack of an efficient Public Transport System. Today Maruti Udyog Limited is garneshing share of automobile market in India.Maruti Udyog Ltd. 1. Indira Gandhi decided that the project should not be allowed to die.3 Company’s Profile Around 1970.3. after a hindu deity named Marut. political advisor and younger son to the then Prime minister of India.1 Stock Exchange on which company is listed Maruti Suzuki is listed on Bombay stock exchange now Mumbai. Sanjay Gandhi’s company was christened Maruti Limited. low maintenance compact car for the Indian middle class. envisioned the manufacture of an indigenous. cost effective. Indira Gandhi. Unfortunately Sanjay Gandhi died without fulfilling his dream. 11 . It is also listed on NYSE ( New York Stock Exchange) as well as stock exchange of Japan. And from 1980’s to till day today Maruti’s have dominated the Indian Automobile industry as well as automobile market. The name of the car was was chosen as Maruti. Maruti entered into collaboration with the Suzuki Motors of Japan. The car went into sale on 14 December 1983. Indira Gandhi’s cabinet passed an uninamous resolution for the development and production of “Peoples car”. The collaboration heralded a resolution in the Indian car industry by producing Maruti 800. Sanjay Gandhi. 1. After this death . Production of large number of motor vehicles which are necessary for the Economic Growth. what is want to accomplish in the larger environment and its goal which are specific . 4. Market penetration.efficient vehicles to conserve scarce resources. 3. Market developments. Core Values : Customer Obsession Fast. shareholder’s wealth two is the prime concern for running business smoothly. creating Customer Delight one and shareholder’s wealth two eventually become pride of India.effective.2 Vision. The main Objectives / Mission of Maruti Udyog Limited are:1. The only way of Nora’s dilemma of selecting principles for the company’s working vision was to maximize profit and sales and hence Maruti Udyog Limited (MUL) declared its vision as:“The leader in the Indian Automobile Industry. value delivery networks. 5. but on the other hand Suzuki’s participation ensures not only need of profit. Modernisation of Indian Automobile Industry.1. but the need of maximum profit. 2. As the Maruti Udyog Limited (MUL) is started by governmental initiatives it tends to be more consumer oriented and hence cost. Developing cars faster and selling for less. Maruti Udyog Limited (MUL) knows this and understands “Customer Is King” . Production of fuel. after sales service and customer are best and beyond expectations. 6. realistic.3. value chain. similar product development and diversification. he can change the future of any company hence goes company’s brand line : COUNT ON US! Mission:Mission is the statement of any organisation’s purpose . Flexible and First Mover 12 . Customer Delight One is making sure that Performance. Parter relation management. Missions are described over Visions and Visions demand certain objectives. and motivating. Mission and Core values of Maruti Suzuki Vision:Vision of any company is those values on which company works. Innovation and Creativity Networking and Partnership Openness and Learning 13 . 3.D) and Chief Executive Officer (C. Kenichi Ayukawa Director Mr.E.Brar Director Mr. Tsuneo Ohashi Director and Management Executive Officer 14 .ShujiOishi Director Ms.D.Maninder Singh Banga Director Mr. Bhargava Chairman Mr. Osamu Suzuki Director Mr.S.O) Mr.Shinzo Nakanishi Managing Director (M.AmalGanguli Director Mr.C.1.PallaviShroff Director Mr. R.3 Company Board Of Directors Mr. Keiichi Asai Director Mr. India’s first colour-coordinated car Maruti True value in Mumbai Maruti Finance in Mumbai with 10 finance companies 15 .1.3.4 MILESTONES 2005 2004 The fiftieth lakh car rolls out in April. 2005 Growth in overall sales by 15. with electronic power steering Special edition of Maruti 800. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited Alto Spin LXi. a new variant Maruti closed the financial year 2003-04 with an annual sale of 472122 units.8% New (non A/C) variant of Alto Alto becomes India's new best-selling car LPG variant of 'Omni Cargo' Versa 5-seater. All other variants upgraded Maruti Insurance. a new variant Baleno LXi. 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 vehicles. Listed on BSE and NSE after a public issue oversubscribed 10 times 2002 WagonR Pride Esteem Diesel. hatchback car) Zen LX (993cc. Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54. hatchback car) 16 . hatchback car) Zen VXi (993cc.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. with electronic power steering Alto VXi Customer information centers launched in Hyderabad. India’s first luxury MPV Alto Spin LXi. 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. Bangalore and Chennai 2000 Launch of versa First car company in India to launch a Call Center New Alto Altura. MUV. hatchback car with power steering) Omni XL ( 796cc.2 percent 2001 Zen LXi Maruti True Value launched in Bangalore and Delhi Maruti Versa. 3 Box Car) Wagon R Launch of Maruti . high roof) Baleno (1600cc. 3 box car)VX With the launch of second plant. MUV) Launch of website as part of CRM initiatives 1998 Esteem (1299cc. 4WD 8 seater) Omni (E) (796cc. 3 box).000 units 17 .000 units 1994 Esteem1. 3 box car) LX. India’s first contemporary sedan 1988 Installed capacity increased to 100.3L (1298 cc. 3 box Car)AX Launch of 24-hour emergency on-road vehicle service Esteem 1. 8 seater) Gypsy King (1298cc. installed capacity reached 200. which was later exported in Europe and elsewhere as the Alto 1992 SMC increases its stake in Maruti to 50 percent 1991 Reaches cumulative indigenisation of 65 percent for all vehicles produced 1990 Maruti 1000(970cc. 4WD.1997 Zen VX & Zen VX Automatic New (Omni & Omni E) (796cc.3L (1298 cc.hatchback Car) Standard and Deluxe Produced the 2 millionth vehicle since the commencement of production 1996 1995 Gypsy (E) (970cc.3L (1298cc. hatchback Car). hatchback car) Esteem 1. off road vehicle) Zen Automatic (993cc. 3 box car)LX Produced the 1 millionth vehicle since the commencement of production 1993 Zen (993cc. MUV. VX and AX New Maruti 800 (796cc. 3. 4WD off-road vehicle) 1984 Omni. WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study .the only car to win it so many times M800. a 796 cc hatchback. and 1983 1982 SMC of Japan 1. Production was started under JVA License and JV agreement signed between Maruti Udyog Ltd. Esteem number one in its segment for the 3rd year in a row.000 units Maruti 800.1987 Exported first lot of 500 cars to Hungary 1986 Maruti 800 ( New Model-796cc.Alto number one in its segment for the 2nd time in a row. India’s first affordable car. hatchback Car) Produced 100. a 796cc MUV Installed capacity reached 40.000 vehicles (cumulative production) 1985 Launch of Maruti Gypsy (970cc.5 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 . Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study 18 . Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 19 .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 AutocarCNBC ( 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 . 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. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Customer atisfaction.Sep '04 2004 Maruti Suzuki was No. 1 in Total Customer Satisfaction (Maruti 800. No. 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. 1 in Product Appeal (Esteem and Wagon R) No. 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 2000 Maruti bags JD Power CSI .2003. achieves highest CSI rating. Central Board of Excise & Customs awards Maruti with "SammanPatra". 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 20 . unique achievement by market leader anywhere in the world 1999 MSM launched as model workshop in India.1st rank. 21 .welfare 1992-93 Engineering Exports Promotion Council's award for export performance. Executives Sr.1. Executives .4 ORGANISATION STRUCTURE Maruti Udyog Limited has a flat organisation structure with a maximum of three levels. Executives Jr. The Organisation Structure of Maruti Udyog Limited is follows:- MANAGING DIRECTOR Manufacturing Financial General Director Controller Manager DGMs/AGMs DGMs/AGMs DGMs /AGMs Managers / AM Managers /AM Managers / AM Engineers and Sr. Executives Jr. Executives 22 Sr. Executives Jr. 2 THE PRODUCTION PROCESS AT MARUTI STEEL COILS BLANKING PRESSING WELDING PAINTING FROM VENDOR VENDORS FROM VENDOR VENDORS ASSEMBLY VEHICLE INSPECTION FROM VENDORS VENDORS TEST RUN SUPPLY & DISPATCH 1.3 Recruitment and Selection Process Of Maruti Suzuki 23 .1.4.4. religion. B) Application Form :. experience. It is a series of successive hurdles or barriers which an applicant must have to cross. It should provide all the information relevant to selection. skills. Steps involved in the Selection Process Selection process consists a series of steps and at each stage facts may come into light that may lead to rejection of the application of the applicants. birth place. It helps to determine whether it is worthwhile for a candidate to fill up the application form.Application form is a traditional and widely used device for collecting information about the candidate. Process of identifying and hiring best qualified candidate for a job vacancy in a most timely and cost effective manner.S context. may be avoided as it may be regarded an evidence of description. Meaning of Selection It is the process of searching the potential candidate. It is positive in nature in the Indian context. the necessary information is also elicited from the candidate about their education. salary expected and the like . It is negative in nature in the Indian context but positive in U. A) Preliminary Interview (Screening Applications) :.Meaning of recruitment It is a process of searching the potential candidate and offers him or her the job.Initial screening is done to weed out totally undesirable or unqualified candidate at the outset. 24 . where refeErence for caste. It is essentially a sorting process in which prospective candidate are given necessary information about the nature of the job and the organisation at the same time. H) Employment :. the rank. D) Employee Interview:. These people are requested to give their opinion about the candidate without incurring any liabilities. 2) It prevents the employement of people suffering from contagious diseases. grade. E) Medical Examination :.C) Selection Test :. Tests are useful when the number of applicants is large as at the best it reveals that the candidate who scores above the predetermined cutoff points are likely to be more successful than those scoring below the cut off points.Interview is an essential element of selection and no selection procedure is complete without one or more personal interview. F) Reference Checks :. where the decision of the departments are recommendatory.Employment is offered in the form of an appointment letter mentioning the post. the names and address of two or more persons who knows him very well.Applicants who have crossed the above stage are sent for the physical medical examination either to the company’s physician or to a medical officer approved for the purpose . 3) It identifies candidate who are are otherwise suitable but requires specific job due to physical handicaps and allergies. These may be their previous employer . selection process is carried out by the Human resource department. the salary. G) Final Approval :-In most of the Organisations. heads of educational institution or public figures. behaviour and performance. where the information collected through application letter or application forms and test can be crossed checked in the interview. The candidate shortlisted by the department are finally approved by the executive of the concerned department or the unit. the date by which the candidate should join and other terms and condition in briefs. Such examination serves the following purpose :1) It determines whether the candidate is physically fit to perform the job where those who are physically unfit are rejected.The applicants are asked to mention in his application form.Psychological test are being increasingly used in employee selection where a test may evolve some aspects of an individual’s attitude . 25 . I) Induction :-The process of receiving employee when they begin work introducing thm to the company and to their colleagues and informing them of the activities. J) Follow ups :. customes and traditions of the company is called “ induction”. it is a stage where employee is asked how he or she feels about progress to the date and the worker’s immediate supervisor is asked for comments which is compared with the notes taken at the time of selection.All selection should be validated by follow ups. 26 . 1.4 Training and Devlopment Programs of Maruti Suzuki TRAINING & DEVELOPMENT Annual Training Plan .Design & Maintenance AOTS Managerial Training (4-10weeks) for Manager & above . Japan and AOTS (Assoc. Tool & Die Specialists .OJT in SMC.4.Technological Knowhow R & D Training (2 yrs. Scholarship)(covered 1600 employees under the various schemes) 6 months SMC Training for Technicians .5 to 6 months) for Supervisors & above . Japan STRONG FOCUS ON TRAINING INITIATIVES - Build a Learning Organisation - Continuous Value Additions to Professional Skills - Customised Training - Training to the personnel of Business Partners Overseas training Training held in co-ordination with SMC.Research on new Technologies 27 .Managerial Best Practices AOTS Technical Training (3.All Levels Training customised to meet Organisational Objectives Topics selected based on Vision. for Overseas Tech. Japan (2 batches/yr of 50 each) 9 months Javada Training for Press.) . Values & Departmental wide Managers Feedback of Company- Competency Mapping to identify Individual Training Needs Technical Training on latest Technologies abroad at SMC. 5 APPRAISAL & REWARD Appraisal New Appraisal System based on KRAs & Targets Review of Targets at regular Intervals People Development an important KRA Reward Promotions based on Performance Productivity & Profit-linked Incentive Schemes Training including Long-term SMC Japan Trg. Highest paid workforce in the Industry.1. if not the Country LEADERSHIP Vision.4. Value & Team Building Workshops for Top Management CFT (Cross Functional Teams) of Managers for Major Thrust Areas Managers sent to Joint Ventures to upgrade their practices to MUL standards 28 . France and Italy Maruti vehicles have made a mark. in the current year. Greece. The markets outside of Europe that have large quantities. The Middle-East region has also opened up and is showing good potential for growth. U. has been very popular in Europe where a landmark 200. In the financial year 2008-09 Maruti exports contributed to more than 10% of total Maruti sales. Hungary. 29 . Uganda. Chile. Saudi Arabia. Europe is the largest destination of Maruti’s exports and coincidentally after the first commercial shipment of 480 units to Hungary in 1987. Benin. Ethiopia. where it is selling over 70% of its exported quantity. Djibouti. Germany. France and Poland in that order. 2003 Maruti crossed a milestone of exporting 300.000 vehicles since its first export in 1986. Italy. Nepal. The top ten destinations of the cumulative exports have been Netherlands. Chile. Germany. Bahrain. Costa Rica and El Salvador. the 300. The Alto. Morocco. are Saudi Arabia. Even in the highly developed and competitive markets of Netherlands.000 vehicles in 200809 which was 59% higher than last year.6 INTERNATIONAL BUSINESS In August.. Maruti exported more than 51.4. Qatar and UAE. Kuwait. Srilanka and Bangladesh. Some markets in this region where Maruti is.K.00 mark was crossed by the shipment of 571 units to the same country.1. are Algeria. Maruti has entered some unconventional markets like Angola. which meets the Euro-3 norms. it is exporting in over 70 countries. UK. Though the main market for the Maruti vehicles is Europe.000 vehicle were exported till March 2003. Official website of Maruti Suzuki (www.1 Graph showing the Continent wise export of Maruti Udyog Limited Since Inception.com) 30 .marutisuzuki.Continent wise export of Maruti Udyog Limited Since inception Sales Asia Africa America Europe Oceania Graph 1. Description :Asia 12% Africa 7% America 9% Europe 70% Oceania 2% Refrence :. 29 2000 2001 Equity Share 135.46 288910060 5 144.00 144.00 144.00 132.29 13229162 100 132.46 2002 2003 Equity Share 155.46 288910060 5 144.46 2006 2007 Equity Share 372.29 1999 2000 Equity Share 135.29 13229162 100 132.46 2001 2002 Equity Share 135.1 Capital structure The capital structure of Maruti Udyog limited are as follows :From Year To Year Class Of Share Authorized Capital Issued Capital 2009 Paid Up Paid Up Shares (Nos) Face Value 2010 Equity Share 372.00 132.29 13229162 100 132.46 2007 2008 Equity Share 372.00 144.46 288910060 5 144.46 288910060 5 144.00 144.00 144.Official website of Maruti Suzuki ( www.46 288910060 5 144.5 Financial Structure of Maruti Suzuki 1.46 2005 2006 Equity Share 155.00 132.00 144.46 2004 2005 Equity Share 155.29 Table 1.00 144.29 13229162 100 132.46 288910060 5 144.29 1993 1999 Equity Share 135.46 2008 2009 Equity Share 372.00 144.com) 31 Paid Up Capital .5.46 2003 2004 Equity Share 155.marutisuzuki.00 132.1.46 288910060 5 144.46 288910060 5 144.1 Showing the capital Structure of Maruti Suzuki From 2006 to 2010 Refrence :. 50 144.90 92.382.00 4.315.30 238.190.80 4.10 26.40 8.60 3.051.90 1.070.20 387.649.856.180.60 7.50 144.2 BALANCE SHEET OF MARUTI UDYOG LIMITED For the financial year 2006-10 Balance sheet Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Sources of funds (in lakhs) Owner's fund Equity share capital 144.10 63.30 - 12.270.570.50 10.50 3.60 7.00 3.200.80 900.938.308.296.60 - - - - - Less : accumulated depreciation 5.285.10 1.40 3.50 2.90 6.70 4.5.088.176.40 2.60 861.90 698.690.409.173.176.779.184.50 144.043.80 3.024.870.20 2.709.70 794.10 2.30 6.30 10.10 0.70 Less : current liabilities & provisions 3.40 5.956.70 3.50 144.487.70 1.70 8.1.656.40 102.00 7.10 3.720.30 5.788.988.90 - - - - - Reserves & surplus Loan funds ( in lakhs) Secured loans Unsecured loans Total Uses of funds (in lakhs) Fixed assets Gross block Less : revaluation reserve Capital work-in-progress Investments Net current assets (in lakhs) Total net current assets Miscellaneous expenses not written 32 .695.484.80 9.40 Net block 5.60 9.80 3.30 736.10 567.146.685.259.80 3.50 0.50 71.20 Current assets.60 3. loans & advances 3.406.659.60 1.631.954.50 Share application money - - - - - Preference share capital - - - - - 11.70 5.00 3.80 67.524.00 5. 040.2 showing Balance Sheet of Maruti Suzuki for the year 2006 to 2010 Refrence :.20 2.10 2.80 Contingent liabilities 3.10 Table :.10 108.289.484.169.70 Number of equity sharesoutstanding (Lacs) 2889.10 2889.Mar ' 10 Total Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 12.70 2.10 Market value of quoted investments 215.60 7.524.10 2889.315.70 219.162.734.043.10 2889.Official wesite of Maruti Suzuki (www.40 289.80 9.657.60 1.10 2889.50 10.marutisuzuki.20 5.10 3.com) 33 .901.094.398.50 270.1.70 5.60 3.656.30 Notes: Book value of unquoted investments 11.20 1. 339.218.236.189.066.368.90 274.126.00 170.379.90 Table :.90 76.60 33.80 457.50 2.80 7.90 Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 22.30 37.20 -23.10 144.30 28.60 356.80 7.70 547.825.10 130.70 1.70 489.60 916.20 2.80 909.435.10 1.60 763.80 11.551.267.30 51.551.60 2.40 18.marutisuzuki.198.244.90 1.40 361.00 2.60 568.40 59.204.40 1.20 4.80 14.00 33.40 1.50 825.40 285.50 37.947.451.20 8.20 101.30 12.60 5.402.515.80 173.134.70 471.622.1.00 268.70 20.10 14.10 17.com) 34 .30 1.30 -19.70 8.866.729.80 10.3 PROFIT AND LOSS ACCOUNT The Profit and Loss account of Maruti Suzuki for the year 2006 to 2010 is as follows :Profit loss account Mar 10 Mar 09 Mar 08 Mar 07 Mar 06 Income Operating income 29.90 617.40 2.223.501.10 4.40 1.730.806.497.1.90 5.30 1.795.80 288.80 3.317.50 24.616.561.631.355.515.00 670.828.903.60 271.579.10 1.20 389.00 21.60 228.70 4.80 15.10 13.20 560.10 20.5.30 51.278.094.40 1.10 738.60 1.70 5.20 326.602.40 499.331.197.00 3.30 18.70 359.497.30 560.10 3.00 706.063.10 2.20 545.30 456.90 37.3 Showing Profit and loss account of Maruti Suzuki Refrence :.299.00 404.Official website of Maruti Suzuki (www.256.50 -14.90 1.693.90 2.70 16.60 25.20 -22.70 10.40 12.50 1.565.40 101.20 44.10 2.70 356.10 2.737.50 705.007.90 1.70 -55.40 -83.60 10.20 9.60 -6. 1 M e a n i n g o f R e s e a rch Redman and Mory define research as a “systemized effort to gain new knowledge.” Some people consider research as a movement. a movement from the known to the unknown.2 Research Methodology 2 .Chapter :. 35 . formulating hypothesis or suggested solutions. To study about Maruti Suzuki i. According to Clifford Woody.” Is a famous Hudson Maxim in context of which the 36 . for it leads to inquiry and inquiry leads to invention.e. The main objectives of this research was to :1. and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. why it was established and by whom it was established. 3 S i gn i f i c a n c e o f R e s e a rch “All process is born of inquiry. Organisational structure etc. To study the strategies adopted by Maruti Suzuki due to which they are able to dominate the Indian Automobile Sector since last three decades. 3. financial structure. when it was established .Research is an academic activity and as such the term should be used in a technical sense. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. 2 . Doubt is often better than overconfidence. 2. collecting. research comprises defining and redefining problems. making deductions and reaching conclusions. 2 O b j e c t i v e s o f R e s e a rch The purpose of research is to discover answers to questions through the application of scientific procedures. To study about the marketing mix and the strategies adopted by Maruti Suzuki in order to cater the needs of the people and also to face tough competition in the market since after the Globalisation of the Indian economy many competitors have grown and tries to undermine the monopoly created by Maruti Suzuki. 2 . Though each research study has it’s own specific purpose. organizing and evaluating data. It may be understood as a science of studying how research is done scientifically. The data collected for this project has been taken from the secondary source. Secondary Data:Any data. which have been gathered earlier for some other purpose. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization.significance of research can well be understood. 4 R e s e a rch M e t h od o l o g y Research methodology is a way to systematically solve the research problem. 5 D a t a C o l l e c t i o n So u rce Information for this project was collected primarly through secondary sources. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology. as an aid to economic policy. are secondary data in the hands of researcher. 2 . either by the researcher or by someone else. has gained added importance. especially for the purpose of the study is known as primary data. Those data collected first hand. The role of research in several fields of applied economics. Increased amounts of research make progress possible. whether related to business or to the economy as a whole. has greatly increased in modern times.The data collected from the secondary sources are called as Secondary data. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Research. both for government and business 2 . Sources of secondary data are : Internet Magazines Publications 37 . due to lack of time the necessary data were collected from the secondary sources. 6 L I M I TATI O N S The biggest limitation of this project was time .3 Marketing Strategies 38 . Due to tough competition in the market the companies are not willing to disclose their strategies adopted to face the competition so sufficient information were not collected and the information collected are not 100% accurate. Chapter: .. Newspapers Brouchers 2 . 9Other strategies adopted by Maruti 3.6 Promotion 3.1 Meaning of Marketing 3.10Customer satisfaction 39 .3 Products 3.8Market Share 3. Targeting and Positioning 3.3.5 Place 3.4 Price 3.2 Brand 3.7 Market Segmentation . Matching the products with the market means determining the needs and requirements of potential customer and supplying them the product which meets their requirements. 40 . and exchanging product of value with others”. directing.3. “Marketing is the business process by which the products are matched with the market and through transfer of ownership are affected”. and controlling the market activities. wants satisfying products to target markets to achieve Organisational objectives”. Sanjay Gandhi the political advisor and younger son to then Prime minister of India. According to Cundiff and Still. envisioned the manufacture of an Indigenous. “ Marketing is the social and managerial process by which individuals and groups obtain what they need and want through creating. According to American Marketing Association. Indira Gandhi’s cabinet unanimously passed a resolution for the development and production of “people’s car”. “Marketing is the performance of the business activity that directs the flow of goods and services through producers to consumers to users”. price. “Marketing is a total system of interacting business activities designed to plan. cost effective.2 BRAND Around 1970. and distribute. coordinating. In general we can say that Marketing includes all those activities carried on to transfer those goods from the manufactures or the producers to the consumers that can satisfy the needs and the requirements of the consumers. 3. promote. According to Philip Kotler. Sanjay Gandhi’s company was christened Maruti Limited. It is accountable for planning.1 Marketing It is the process of directing of directing the flow of goods and services from the producers or the manufacturers to the customers or consumers. low maintenance and compact car for the Indian middle class. Stanton. The name was chosen as Maruti after a Hindu deity named “Maruti”. motivating. According to William J. offering. Indira Gandhi. organising. ii) size of the product. v) packaging. etc. viii) product range. developing. The car went on sale on December 14. and producing the right types of products and services to be marketed by the firm. vi) warranties and after sale service. It deals with the product range. iii) design of the product. emphasis should also be laid on their branding. The collaboration heralded a resolution in the Indian car industry by producing Maruti 800. durability and other qualities. vii) product testing. packaging. iv) volume of the production. 3. Apart from producing right products. After the death of Sanjay Gandhi. Maruti entered into collaboration with the Suzuki motors of Japan.3 PRODUCT Product mix involves planning.Unfortunately Sanjay Gandhi died without completing his project. Indira Gandhi decided that the project should not be allowed to die. colour and other features. 41 . 1983. In short product planning and development involves decision about : i) quality of the product. Star Ritz Swift Swift Dzire The Utility Cars of Maruti Suzuki includes :A) B) C) D) Maruti Omni (Van) Maruti Eeco Maruti Gypsy Grand Vitara The Luxury Cars of Maruti Suzuki includes :A) Maruti Esteem B) Maruti SX4 PRODUCTYEAR IN WHICH LAUNCHED Maruti Suzuki 800 1983 Maruti Suzuki Omni 1984 Maruti Suzuki Gypsy 1985 Maruti Suzuki Alto 2000 Maruti Suzuki Wagon R 2002 Maruti Suzuki Swift 2005 42 .Products Offered by Maruti Suzuki Maruti Suzuki comes with a large number of products i.e cars ranging from economy cars to luxury cars to super SUV’s. The economy cars includes :A) B) C) D) E) F) G) H) Maruti 800 Alto Zen Estilo Wagon R A . 640 Kgs (AC Euro I) . 665 Kgs ( AC Euro II). Technical Specifications:Dimensions Length 3335 mm Width 1440 mm Height 1405 mm Unladen Weight 655 Kgs (AC Euro I) .Maruti Suzuki SX4 2007 Maruti Suzuki A Star 2008 Maruti Suzuki Swift Dzire 2008 Maruti Suzuki Zen Estilo 2009 Maruti Suzuki Eeco 2010 Maruti 800 Maruti 800 is the most popular entry segment car in India. With the introduction of Maruti 800 in 1980’s Maruti Udyog Limited broke the hegemony of Ambassador and Fiat in the Indian Car market. 650 Kgs (AC Euro II) Ground Clearance 170 m Wheel Base 2175 mm Power Engine Type 4 Stroke. Water cooled SOHC Piston Displacement 796 cc 43 . 1 gear box reverse Suspension Front McPherson strut and coil spring Rear Leaf Spring Steering Type Manual Rack and Pinion Turning radius 4. Power 39. Torque 5.4 mts Brakes Type Dual Circuit Front Disc Rear Drum Tyres 5.7 N m @ 2500 rpm Fuel System Carburettor Transmission and Manual. 4 Forward (Synchromesh).5 bhp @ 5500 rpm Max.Max.65 – 12 – 4 PR Capacities Seating Fuel Tank 4 Persons 30 Litres Maruti Alto 44 . 4 valve per cylinder MPFI No. 3 pot motor with a four valve head and its electronic tachometer results in unmatched fuel efficiency .Maruti Alto is one of the hottest selling compact cars in Indian market. Alto uses Maruti 800’s proven and highly fuel efficient . turning radius 4. It is the most fuel efficient car in A2 Segment. Power 47 bhp @ 6200 rpm 45 . of cylinder 3 Engine control 32 bit computer Max.6 m Ground clearance 160 mm Weight Alto 725 kgs Alto LX. LXi 740 Kgs Gross vehicle weight 1165 Kgs Engine Swept volume 796 cc Engine type FC Engine. TECHNICAL SPECIFICATIONS :Dimensions Length 3495 mm Width 1495 mm Height 1460 mm Wheel base 2360 mm Tread 1290 mm Min. Max. Torque 62 Nm @ 3000 rpm Transmisson 5 Speed all synchromesh, Manual Suspension System Front McPherson strut with Torsion type coil anti roll bar Rear Coil sprint with double action telescopic shock absorbers Seating Capacity 4 persons Tyres 145/80 R12 Maruti Omni ( Van) Maruti Omni is popularly known as Maruti Van. Maruti Omni comes in three variants and they are :- Omni 5- Seater , Omni 8- seater and Omni LPG. Maruti Omni is a perfect family car. It has enough space for our life style needs whether we are going on a picnic, weekend outing or for a game of golf. We can pick our entire luggage without thinking twice. Omni provides ample headroom and legroom to ensure a comfortable and enjoyable journey. TECHNICAL SPECIFICATIONS :Dimensions Length 3370 mm Width 1410 mm Height 1640 mm Wheelbase 1840 mm Ground clearance 165 mm 46 Min turning radius 4.1 m Weight Omni 785 Kgs Omni E 800 Kgs Engine Type 4 Stroke cycle, water cooled No. of cylinders 3 No. of cylinder valves 6 Piston displacement 796 cc Max. Power 35.0 bhp @ 5000 rpm Max. Torque 601 NM @ 3000 rpm Power Transmisson Type Manual, 4 forward all synchromesh Front Booster assisted disc Rear Drum Brakes Fuel tank capacity 36 Litres Maruti Eeco EECO was introduced in India by Maruti Suzuki during 2010. This car is essentially an updated Versa, this is an urgent refresh in lines with Maruti Suzuki not being able to come up 47 with a new minivan. EECO comes with 5 seater and 7 seater options. EECO is equipped with advanced Engine Management System for optimizing fuel efficiency and performance. It is branded by the manufacturer as a perfect car for every occasion-a business trip or a picnic with the loved ones[1]. A new minivan from Maruti Suzuki is expected in 2011 to replace the Eeco/Versa and (possibly) the ageing Omni. Maruti EECO is available in following variants :5 seater, standard 5 seater, AC 7 seater, Standard EECO is powered by Bharath Stage IV compliant engine. TECHNICAL SPECIFICATIONS :Fuel: Petrol Engine type: Aluminium Fuel distribution: Multipoint Injection Power: 73 bhp (54 kW; 74 PS) @ 6000 rpm Displacement: 1196 cc Layout: 4 cylinder in-line Max. Torque: 101 N·m (74 ft·lbf) @ 3000 rpm Valve train: 16 valves / 4 per cylinder Transmission: Manual-5 speed Suspension Front Suspension: McPherson strut 48 excellent pick up and acceleration. It has several technology that makes it stand out from other cars in its segment. the highest in its class. with its power to weight ratio of 78.Rear Suspension: 3 Link Rigid Brakes Front Brakes : Ventilated disc Rear Breakes : Tyres: Tyre type: Drum 155 R-13 LT Tubeless ZEN ESTILO Maruti Zen is a clear leader in the premium compact car segment in India. more control and a better grip.bit Micro processor in Zen delivers ideal combo of speed. Maruti Zen comes equipped with 16 x 4 all aluminium hyper tech engines. Its electronic power steering ensures effortless maneuverability. power and fuel efficiency.4 bhp per tonnes . The 16. the engine also offers optimum fuel economy . 49 . 4 cylinder inline engine 32 bit ECM Multipoint fuel injection Maximum engine output in 60 @ 6200 bhp/rpm 50 . 4 cylinder inline engine 16 bit ECM Multipoint fuel injection Maximum engine output in 60@ 6000 engine torque in 8@4500 bhp/rpm Maximum kgm/rpm Compression ratio 9.4:1 PETROL Bharat Stage III LX LXi VXi All aluminum engine 16 valve.TECHNICAL SPECIFICATIONS :Capacities Seating Persons 5 Fuel in litres 35 Engine in CC 993 Unladen weight in kgs 765 Laden weight in kgs 1190 Tyres 145 / 80 R 12 (Front & rear) PETROL Bharat Stage II LX LXi VXi All aluminium engine 16 valve. 4:1 DIMENSIONS Overall length 3535mm Overall width 1495mm Overall height 1405mm Wheelbase 2335mm Ground clearance 165m 51 .Maximum engine torque in 8 @ 4500 kgm/rpm Compression ratio 9. Dual Distributor less Digital Ignition (DDLI) ensures an instant hassle free start every time and a more efficient power distribution.VXi) 840 (AX) Gross Weight 1225 (LX.LXi. TECHNICAL SPECIFICATIONS :Dimension in MM Length 3495 Width 1495 Height 1660 Wheelbase 2360 Front track 1295 Rear track 1290 Min.Wagon R comes with 1064 cc MPFI low friction engine that delivers an awesome 64 bhp @6200 rpm for smoother pick up and faster acceleration. Maruti Wagon R LXi. ground clearance 165 m Weight in Kg Kerb weight 825(LX. high seats and wide opening doors make it easier to get in and out. Maruti Wagon R VXi and Maruti Wagon R AX.WAGON R Wagon R is a hugely successful car which comes in four variants- Maruti Wagon R LX. Wagon R’s tall body .LXi. VXi) 1240(AX) Engine Swept volume 1061 cc 52 . 53 . of cylinders 04 Max. Torque 84 NM @ 3500 rpm Power Steering Type Electronic Power Steering (EPS) Transmission Manual (). All synchromesh Suspension Front McPherson strut with torsion type roll control device Rear Coil spring. 4 Valve per cylinder .5 speed . gas filled shock absorber with 3 link rigid axle isolated trialing arms. MPFI Fuel distribution Multipoint injection Engine control 16 – Bit Electronic Control Module (ECM) No. Power 64 bhp @6200 rpm Max.Type FC Engine . 5 Weight In Kgs Kerb weight 870 Gross Vehicle weight Capacity Seating capacity 5 persons Fuel tank capacity 35 litres Engine Swept volume 1061 cc 54 . Maruti has unveiled A Star as a next generation model of its model Alto which is already selling greatly in the segment.A-STAR Indian car market leader Maruti Suzuki has launched A-Star in the hatchback car segment in which the company holds ruling position with 55% market share. Scroll down to know more about the sporty and striking features of all new A Star Car. Turning radius 4. Ground clearance 170 Min. TECHNICAL SPECIFICATIONS :Dimension in mm Length 3500 Width 1600 Height 1490 Wheelbase 2360 Front track 1295 Rear track 1290 Min. All synchromesh Suspension system Front McPherson strut and coil spring Rear Isolated trailing link and coil spring 55 . power 67 bhp @6200 rpm Max. Power assisted Transmission Manual () – 5 Speed . Torque 90 NM @ 3500 rpm Steering Rack and pinion .Type KB series Fuel distribution Multipoint injection Displacement 998 cc No. of cylinders 03 Max. Swift VXi.208 56 .5 Compression Ratio :- 9. Swift ZXi.0 :1 Max. It’s appealing looks . and a whole a lot of user friendly features at once catch our attention.904 3rd 1. of cylinders :- 4 Bore X stroke :- 74.0 X 75. Power :- 87 bhp @ 6000 rpm Max. TECHNICAL SPECIFICATIONS :Body Type Body Type :- Hatch back No. spacious interiors.545 2nd 1. of doors :- 5 Seating Capacity :- 5 Engine Capacity :- 1298 cc No. It comes in three variants :-Maruti Suzuki Swift LXi.SWIFT Maruti Swift brings a feeling of freshness to the compact car segment . Torque:- 113 Nm @ 4500 rpm Fuel distribution :- Multipoint injection Transmission Type :- 5 Speed Manualwith synchromeshin all and 1 reverse Gear ratios :- 1st 3. 0272 Power Steering Type :- Electronic power steering (EPS) Suspension System Front: McPherson Strut with torsion type roll control device Rear :- coil spring. gas filled shock absorber with 3 link rigid axle isolated trailing arms 57 .4th 0.757 Reverse 3.966 5th 0. 2 in) for front wheels and from 1.310 mm (51.220 mm (48. Maruti introduced the "widetrack Gypsy" codenamed MG410W replacing the MG410.6 in) Height 1875/1845 mm* Wheelbase 2. Both front and rear track of the wheels are increased by 90mm (from 1.5 in) Front Track 1. In July 1993.540 mm (60.620 kg* Engine 58 . it was only available as a soft-top.010 mm (157. It was codenamed MG410 that stood for Maruti Gypsy 4 cylinder 1.MARUTI GYPSY It is manufactured in India by Maruti Suzuki.300 mm (51.6 in) Kerb Weight 985 kg/1.0 litre engine.6 in) to 1.210 mm (47. It was introduced in the Indian market in 1985 with the 970 cc F10A Suzuki engine and was an instant hit in the civilian market as well as with law enforcement.375 mm (93. Initially.310 mm (51.6 in) for rear wheels) and these Gypsys are instantly recognizable by the pronounced painted fender flares.300 mm (51.9 in) Width 1.0 in) to 1. 040 kg* Gross Vehicle Weight 1585 kg/1.2 in) Rear Track 1. TECHNICAL SPECIFICATIONS :Dimensions Length 4. but a bolt on hardtop was later introduced to the public after the aftermarket hardtops became extremely popular. One reverse Transfer gearbox Two-speed Type constant mesh Transfer gear ratio High : 1. 9 imp gal) Engine oil 4 L (1.268 Suspension Front and Rear Rear Leaf spring with Double action damper Brakes With Booster Front Disc Rear Drum Tyres F78-15-4 PR 205/70R15 Capacities Fuel tank 40 L (11 US gal.1 US gal. 0. Type G13BB MPFI 16 Valve Gasoline Cylinders 4 Displacement 1298 cc Maximum Power 80 bhp (60 kW. Low : 2.409. 81 PS) @6000 rpm Maximum Torque 103 N·m (76 lb·ft) @ 4500 rpm Transmission Type Five forward (all Synchromesh).9 imp gal) 59 . 60 . 6 L 16 V No. Technical Specifications :Dimensions & Weight Length (mm) 4490 Width (mm) 1735 Height (mm) 1560 Wheelbase (mm) 2500 Kerb Weight (kgs) 1170 Seating Capacity 05 Engine Model Designation 1. the SX4 (an abbreviation of "Sports Xover 4 all seasons ") replaces the Aerio (some markets called Liana).MARUTI SUZUKI SX4 Designed by GiorgettoGiugiaro'sItaldesign studio. The "SX 4" designation was used by American Motors (AMC) for a sporty liftback model in its all-wheel drive AMC Eagle passenger cars. Of Cylinders 04 Inline Configuration DOHC Displacement (cc) Transmission Top Speed (kmph) 1586 5 Manual 175 Suspension 61 . Front Independent strut Rear suspension gas-filled McPherson & anti-roll bar Semi-independent torsion beam with gas filled shock absorbers Brakes Type with Disc Front / Rear Brakes Ventilated Discs/ Drums Tyres Type 195/65 R15 Wheels 15" Steel Fuel Tank 50 Litres Performance Max. Torque (kg m/rpm) 145 Nm @ 4200 rpm 62 . Horsepower (ps/rpm) 103 PS @ 5500 rpm Max. Zip effortlessly down the highway and with plenty of low end torque. Technical Specifications :Dimension in MM Length 4760 Width 1780 Height 1740 Wheelbase 2800 Front track 1500 Rear track 1500 Min.7 litres DOHC V6 engine can empower the Grand Vitara to climb up steep terrains. the 2. With 127 KW @ 6000 rpm on call. Ground clearance 183 m Weight in Kgs Kerb Weight 1700 Gross Weight 2300 Capacity Seating Fuel tank 7 persons 66 litres Engine 63 . the high performance vehicle can take on snowy ramps and muddy tracks with equal ease. Its four wheel drive gives Vitara the power to go places.GRAND VITARA Grand Vitara is meant for the people who want to live life grand size. Speed 183 Km / Hr Steering Rack and Pinion Brakes Front Disc Rear Drum Suspension Front McPherson strut Rear 5 – Link rigid with coil spring Tyres 235 / 60 R 16 Tubeless tyres 64 .Type H27A V6 type No. of valves 24 Piston displacement 2736 cc Bore X Stroke 88 X 75 Compression ratio 9. Of cylinders 06 No. Output 166 bhp @ 6000 rpm Max. Torque 236 NM @ 4500 rpm Fuel distribution Multipoint injection Max.5 : 1 Max. the company has decided to pass on only a part of the increase in costs to the customers.27. Zen. and WagonR (Petrol).982 Maruti Suzuki Eeco 2.94.19.818 Maruti Suzuki SX4 7.96.09.412 Maruti Suzuki Wagon R 3. In this phase.822 Maruti Suzuki Swift 4.84.09. There is no change in the prices of Swift.620 Maruti Suzuki Omni 2.The price increase is due to rise in input costs and freight costs. .058 Maruti Suzuki A Star 3.226 65 .31.671 Maruti Suzuki Gypsy 5.) Maruti Suzuki 800 1. Ex-Showroom Prices in Delhi (in Rs) :Models Prices (Rs.28.062 Maruti Suzuki Grand Vitara 17.39.28.3.757 Maruti Suzuki Alto 2.63.08.635 Maruti Suzuki Swift Dzire 4.4 PRICES OF MARUTI PRODUCTS Car market leader Maruti Udyog Limited has announced a marginal increase in price of certain models.488 Maruti Suzuki Zen Estilo 3. which increased following the rise in oil prices.220 Maruti Suzuki Ritz 4. holdings etc.6 PROMOTION Main Promotion of Maruti Suzuki cars is done by the advertising.In Price case They provide a list of different types of models of cars They also gives a discount in the range of 20 % to 25 %. sportsmen etc. They also maintain customer relation and they do direct marketing. 3. They provides many useful inventory they define the transport facility of the company to the market and market to the customers. Now a days the main promotion is done by the brand Ambassador such as film stars. They decide area in which they deal customers. and in this case they decide their actual and equired sales force for selling their cars. Many showrooms of MUL are there in our India. They show the permanent location for selling the cars. 66 . celebrities. different newspapers. 3. The advertising is mainly done in the form of different Television channels .5 PLACE The Place of Maruti cars is in the whole world. Maruti Udyog Limited decides its distribution channel for selling cars like some time or level or sometimes two levels marketing channels. the marketers targets the identified customer groups with proper marketing.e opening of Indian economy for rest of the world) many competitors started in enter the Indian market .7. Satisfy their basic needs 2. Solve their problem 3.7 SEGMENTATION 3. 3.1 Meaning of segmentation :Market segmentation is the process of dividing a potential market into distinct sub.markets of consumers with common needs and characterstics.7. Once the segmentation takes place .3.3 Segmentation of Market by Maruti Suzuki:Maruti Udyog Limited was set up to manufacture low price cars that can be afforded by the Indians but after 1990 that means after the globalisation ( i. Market segmentation is the starting steps in applying the marketing strategies. Further with the develoment of the Indian economy the income of the peoples of India also increased and people started to afford luxury cars also.2 Objectives of Segmentation :The main objective of segmentation is to provide those products to the customer they can :1. They have also catogorised their cars into different segments depending upon the choices of different peoples depending upon their income and other behaviours and these segments are : Mini hatch back segment or A1 segment :Maruti 800 Compact hatchback segment or A2 segment :Maruti Alto Zen Estilo Wagon R 67 .mix so as to position the products/ brands/ company as perceived by the target customer.7. Make themselves feel good 3. 2 Positioning of products by Maruti :Management of Maruti’s always tries that their products should be available at the authorised outlets in every city of India.A – Star Swift Mid size segment or A3 segment :Maruti Esteem SX4 Utility Vehicle or MUV :Maruti Eeco Maruti Gypsy Grand Vitara 3.8. semi urban and to the rular areas also. 3. 68 .8 Market Positioning 3.8. In case of any new product they tries to make it available at every outlets in metropolitian cities and by getting the response of customers they increases the production and extends the availability in urban .1 Meaning :Market positioning means placing the potential product in the market that can satisfy the needs and requirements of the target customers. 9. These are distributed through their dealer network and through authorised sellers of their spare parts. 24-hour mobile service is offered in 38 cities under the brand “Maruti On-road Service”.3 Warranty and Extended Warranty Program They offer a two-year warranty on all their vehicles at the time of sale. they sell spares under the brand name “Maruti Genuine Parts”.545 Maruti Authorised Service Stations. through their dealership network.9 Other Strategies adopted by Maruti Suzuki 3. In order to increase the penetration. 3. of their products in these remote areas. covering 898 cities in India. they have launched service stations under the brand “Maruti Service Masters. or MGA. They have service stations on 30 highways in India under the brand “Express Service Stations”. In addition. The dealers subsequently claim the warranty cost from them.9. As a benchmark for dealers with respect to service quality and infrastructure facilities. in three locations in India.3.2 Genuine Accessories They have also entered the business of marketing car accessories under the brand name “Maruti Genuine Accessories”. to whom they refer as stockists. Many of their MASSs are at remote locations where they do not have dealers. or MGP. They analyse warranty claims from 69 . or MASSs. To promote sales of their spare parts and the availability of high quality. in terms of sales volumes.9. under the provisions of the warranty in force at that time. 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. They seek to provide customers with the opportunity to customize their vehicles with accessories such as music systems. 3. or MSMs. security systems. car-care products and utility products. in accordance with practices and procedures prescribed by them. Their dealers are required to address any claim made by a customer. insurance and financing. They intend to extend this service to an additional 25 cities over the next three years.1 After Sale service :As on date there are 342 Maruti dealer workshops and 1. reliable spare parts for their products. which they refer to as the “360 degree customer experience”. AtithiDevoBhava: One-stop shop Inspired by the spirit of India. in the case of defective components. 70 . automobile finance. and pre-owned cars. They have entered into arrangements with insurance companies to cover the costs of warranties offered under this program. the best place to buy and sell reliable used cars . They offer an extended paid-warranty program marketed under the brand. and the caring relationship they share with those who drive their cars. AtithiDevoBhava. services. It captures the Indian tradition of honouring guests. range of products and extensive sales and service network to expand the size of the passenger car market in India. fleet management. or upgrade to a new Maruti car. exchange Maruti Suzuki is set to provide a single window solution for all your car related needs. Whether it is easy finance. or bear the cost ourselves. means “a guest is like God”.4 New business Initiatives As the largest manufacturer and leader in the small car segment. The extended warranty program is intended to maintain the dealer’s contact with the customer and increase the revenue generated from sale of spares. and build on their wide customer base and extensive sales and service network to make available to their customers a wide range of Maruti-branded services at different stages of ownership. They aim to provide customers with a “one-stop shop” for automobiles and automobile-related products and services. accessories and automobile-related services.9. you will find all your car related needs met under one roof. in the case of manufacturing defects. leasing and fleet management. Similarly Maruti Finance brings together some of the biggest names in the car insurance industryto provide insurance solution to every type of the car consumer. they continually seek new ways to utilize their vast car parc. Maruti finance an agglomeration of the biggest finance companies in India brought together by Maruti Suzukitoensurethat the dream car is within everyone’s reach. “Forever Yours” for the third and fourth year after purchase. 3. They have recently launched new initiatives to develop the market for automobile insurance. That’s why they have Maruti True Value. 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.dealers and either claim the cost from vendors. in Sanskirit. insurance. At Maruti Suzuki. It's also the inspiration for the welcome you’ll receive at a Maruti Suzuki dealership. 3.9.5 Maruti Insurance :It was launched in 2002. Maruti Suzuki provides vehicles insurance to its customers with the help of National Insurance Company , Bajaj Allianz , New India Assurance and Royal Sundaram. The service was set up by the company with the inception of two subsidiaries Maruti Insurance Distributors Pvt. Ltd. and Maruti Insurance Brokers Pvt. Ltd. The services started as a benefit or value addition to the customers and was able to ramp up easily. By December 2005 they were to sell more than two Million Insurance policies since its inception. 3.9.6 Maruti Finance :To promote the bottom line growth Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Country wide with City Group and GE countrywide respectively to assist its clients in securing loans. Maruti Suzuki tied up with ABN Amro Bank , HDFC Bank , ICICI Limited , Kotak Mahindra , Standard Chartered and Sundaram to start this venture including its strategic partnership with SBI in March 2003. Since March 2003, Maruti had sold over 12,000 vehicles through SBI – Maruti Finance. SBI – Maruti Finance is currently available in 166 cities across India. “ Maruti Finance marks with coming together of the biggest players in the car finance business. They are the benchmark in quality and efficiency. Combined with Maruti volumes and networked dealership , this will enable Maruti Finance to offer superior services and competitive rates in the Market place”. - JagdishKhatter, Managing Director of Maruti Udyog Limited 71 Citycorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog Limited. Its primary business started by the company is “hire – purchase” financing of Maruti Suzuki Vehicles . Citi Finance India limited is a wholly owned subsidiary of City Bank Overseas Investment Corporation Delaware which inturn is a 100% wholly owned subsidiary of City Bank N.A. City Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital , HDFC and Maruti Suzuki together came in 1995 to form Maruti Countrywide. Maruti Claims that its finance program offers most competitive interest rates to its customers which are lower by 0.25% to 0.5% from the market rates. 3.9.7 Maruti True Value :Maruti True service offered by Maruti Suzuki to its customers. It is a market place for the used Maruti Suzuki Vehicles. One can buy ,sell or exchange used Maruti Suzuki Vehicles with the help of this service in India. As of 2009 there are 315 Maruti True Value Outlets. 3.9.8 Maruti Driving school :As a part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving school in Delhi. Later the service extended to other cities of India as well. These schools are modelled on international standards, where the learners go through the classroom session and practical sessions. Many standards facilities like road behaviour and attitude are taught in these schools. Before driving actual vehicles participants are trained on stimulators. 72 3.10 MARKET SHARE Graph 3.1 Showing Market Share of Maruti Suzuki Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com) 73 2009 Market Share Segment A2 Sales Maruti Tata Hyundai Chart 3.2008.1 Showing Market Share in A2 Segment Description Maruti 59% Tata 20% Hyundai 21% Refrence :. March 2010 74 .Auto India (Automobile Magzine). Auto India (Automobile Magzine).2 Showing Market Share in A3 Segment Description Tata 20% Ford 14% GM 6% Honda 20% Maruti 17% Hyundai 16% Others 7% Refrence :. March2010 75 .2008 – 2009 Market share Segment A3 Sales Tata Ford GM Honda Maruti Hyundai Others Chart 3. 3 Showing Market Share of passenger cars Description Hyundai 17% Maruti 55% Tata 16% Honda 4% GM 3% Toyota 10% Others 3% Refrence :. March 2010 76 .2008 -2009 Market Share Passenger Car Sales Hyundai Maruti Tata Honda Ford GM Toyota Others Chart 3.Auto India ( Automobile Magzine). 019 9% 66.038 8% Passenger Vehicles .173 28% 29.Total Industry 758.637 109% 31.204 4.Total Industry 901.132 47% 271.664 8% Passenger Cars .029 17% 948.555 12% 46% 5.1 Showing Sales of Maruti cars in the year 2006 to 2009 Reference : Autocar ( Automobile Magzine) .561 17% 116. March 2010 77 ./Prem.947 28% 487.262 A2 (Compact .669 7% MUV (Utility Vehicles) 3.939 8% NA NA NA NA NA NA 59.374 -16% Passenger Vehicles .Hatchback) 176./Luxury) C (Van Type) Growth 2007-08 Growth 2008-09 Growth -31% 89.198 16% 522.129.MUL 417.150 24% 1.24 6 17% 1.392 28% 482.123 26% 885.280 A3 (Mid Size) A4/A5/A6 (Exec.31 6 8% Table 3.Hatchback) 167.366 2% Passenger Cars .526 15% 65.MUL 420.402 16% 527.050.136 24% 14.MARUTI ALL INDIA SALES – 3 YEARS TREND Segment 2006-07 A1 (Mini .223 -23% 54% 335. X Trail. WagonR. GM . C (Van Type) Omni.City. Skoda . .Mondeo.Jeeps.Prado &Innova and Fortuner. Swift Hyundai .Sumo & Safari.COMPETITION MODELS Segment Maruti Competition A1 (Mini . Honda Accord. &Aveo. Grand Vitara 78 Mitsubishi .Octavia & Superb. Ford . GM ./Luxury) Hyundai .Corsa. & S Class.Ikon.Hatchback) Zen. Scprpio and Xylo.Indigo & Petra. Hyundai .Spark & Beat A3 (Mid Size) Esteem.Hatchback) M800 A2 (Compact . Honda . Ford . Tata Indica&Palio.Forrester &Tavera. Bolero. Honda . Mahindra . Daimler Chrysler C. Toyota .Terracan& Tucson. GM .E.Endeavor. GM . Fusion.CRV. Toyota Corolla & Camry.Accent.Elantra& Sonata. Alto./Prem.Pajero. Versa MUV (Utility Vehicles) Gypsy. Optra.Vectra. & Fiesta A4/A5/A6 (Exec. Tata .Santro& Getz. Tata . SX4 Hyundai . Nissan . Ford . A marketer can remain in the mind of the customers only if he is able to satisfy the needs and requirements of the potential customers (i. 3. information and technical assistance on websites that are accessible 24 hours a day and 7 days a week Identifies how each individual customer defines quality and then designs service strategies for each customer based on these individual requirements and expectations. Provides a user friendly mechanism for registering customer complaints (complaints that are not registering with the company cannot be resolved and are a major source of customer dissatisfaction). Provides Product Information. With the Globalisation and Liberalisation (i.11 Customer Satisfaction By Maruti Suzuki Now a day’s Customer satisfaction is the main aim or objectives of all the business organisations.1 Customer Service:The CRM Program allows Maruti Suzuki to acquire customers.e.m It also helps to identify problems quickly before they occur.11. A good CRM program can improve customer service in several ways. In such situations Maruti Suzuki took an initiative to satisfy its customer in the following ways. Provides a fast mechanism for managing and scheduling follow up sales call to assess post purchase cognitive dissonance. repurchase. service the customers. and retain good customers and to determine which customer can be retained or given a higher level of service. product use. increase the value of customers to the company. probabilities repurchase times and repurchase times. All the Indian companies or the business organisations have to match their products with the International standard level in order to remain in the market. 79 .e. opening of Indian market ) the competition has increased to a great extent. Provides a mechanism to track all points of contact between customer and the company and do it in an integrated way so that all sources and the types of contact are included and all the user of the system see the same view of the customer (reduces confusion). when customers get value for their money).3. Use internet to engage in collaborative customization or real time customization.2 Improving Customer Relationships :CRM programs are also able to improve customer relationship. Proponents say this is so because:CRM Technology can track customer interests. repair and ongoing support (improve efficiency and effectiveness). Provides a fast mechanism for correcting services deficiencies (correcting the problem before other customer experience the same dissatisfaction). needs and buying habits as they progress their life cycles and tailors the marketing efforts accordingly. Provides a fast mechanism for managing. scheduling. increase customer loyalty.segment the buying centre and helps co – ordinate the conflicting and changing purchase criteria of its members. The CRM can be integrated into other cross functional systems and thereby provides accounting and production information to customers when they want it. increases sales revenue and thereby increases profit margins. decreases marketing costs (associated with customer acquisition and customer training). decreases customer turnover. improve customer relationship. Uses internet cookies to track customer interest and personalize product offerings accordingly. These way Customers get what they need as the product ages. the technology can be used to micro. In Industrial markets. 80 . 3.11.Provides a fast mechanism for handling problems and complaints (complaints that are resolved quickly increased customer satisfaction). When any of the technology driven improvement in customer service (mentioned above) contribute to long term satisfaction they can ensure repeat purchases. The technology can track customer products use as the product progresses through its life cycle and tailors the service accordingly. This way customers get exactly want they want as they change. maintenance. However all of these elements are facilitated by or for humans to achieve.Repeat purchase however comes from customer satisfaction which inturn comes from deeper understandings of each customer. CRM is therefore a companywide attitude as much as software solution. their individual business challenges rather than a “one size fits all” approach. CRM software enables sales people to achieve this one on one approach to selling and can automate some elements of it via tailorable marketing communication. 81 . 2 Showing Customer Satisfaction Index Ranking Refrence :.Tata Ford Mahindra Renault Chervolet Toyota Honda Skoda Mahindra Hyundai Mitsubishi Maruti 660 680 700 720 740 760 780 800 820 Graph 3.Autodrive ( Automobile Magzine). June 2010 82 840 . Chapter :-4 Findings And Analysis 83 . 1 nameplate in the J. with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. highest service quality. Maruti genuine parts. Maruti Suzuki focuses on overall segment of market and the strategied adopted by Marutis are very appealing and interacting for the customers. Along with manufacturing of cars Maruti also started another operations like :. Quality Service Across 1036 Cities In the J. Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced.After the study of the project . Initially it focused on providing cheap cars to the customers but after Globalisation of the Indian economy (1990s) many foreign companies started to enter the Indian market then to stand in the market Maruti Suzuki also started to manufacture luxury cars also.D.Maruti finance. we have got several information and real facts about Maruti Suzuki : It was the idea of Sanjay Gandhi. Maruti Insurance. Some other findings about Maruti Suzuki A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities. Maruti True value. Power CSI Study 2004..D. best in-service 84 . Maruti Driving school etc. After sale service. son of Indian Prime Minister Indira Gandhi to provide cheap and low maintenance cars to Indiansand for this purpose Maruti limited was established but after his death Maruti limited went into collaboration with the Suzuki Motors of Japan. Our high sales and customer care standards led us to achieve the No. Power SSI Study 2004. It is in the economy segment thatb the affordability of spares is most competitive and it is here where Maruti Suzuki shines. Not so in the case of Maruti Suzuki. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The Maruti 800 has the cheapest spares of any Indian car. exchange. The Low Cost Maintenance Advantage The acquisition cost is unfortunately not only the cost we face buying a car. In this segment the Maruti Suzuki Versa had scored particularly well with the lowest cost of spares in the segment. most user-friendly service and best service initiation experience. Where the cars have to be not only affordable on purchase price but alsoneed to combine quality and have comfortable interiors. In the Maruti Suzuki Stable. while 90% owners would probably repurchase the same make of vehicle. Whether it is easy finance.D. In the lower Mid Size segment as well price consciousness is very high . insurance. The recent auto car survey conducted in August 2004 bears testimony to this fact. best service advisor experience. fleet management services. the Omni has the lowest aggregate cost of the spares followed by the Maruti 800. One Stop Shop At Maruti Suzuki. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle. The J.experience. Although a car may be afforded to buy . it may not necessarily be afforded to maintain as some of its regularly used spare partsmay be priced quite steeply. you will find all your car related needs met under one roof. best service delivery.Maruti Suzuki is set to provide a single-window solution for all your car related needs. In the upper Mid Size Segment the Maruti Suzuki Baleno had the segment lowest price on a majority of spares. Lowest Cost of Ownership 85 . 5.D. it should be easy on the pocket to buy and to runwhich is why the cost of ownership is so important. 7. Esteem. The 6 highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen.To be really happy with the car one owns. Great service and nationwide penetration Experience in the Indian market Very old player in the Indian market First major player Established distribution and after sales network WEAKNESSES :1. Alto. SWOT analysis of Maruti Suzuki are as follows :- STRENGTHS :1. Omni and Wagon R. Maruti 800. 3. 2. Wagon R. a Maruti Suzuki is a clear winner. SWOT analysis stands for Strengths . After getting the knowledge about the weakpoints and threats from the external environment the management tries to overcome the weaknesses and the threats. Diseconomies of scale 2. Weakness. It is clear that a Maruti Suzuki delights you even when you run it for years. as shown by the recent J. 8. With the help of this analysis we can get the information about a company’s strengths and weaknesses and also about the opportunities and threats that a company is going to face or facing. Alto and Omni. SWOT ANALYSIS SWOT Analysis is the analysis of a company. 4. Not diversified 86 . They are proud to have the lowest cost of operation / km (among petrol vehicles) . No Online presence 3. And here again. Brand Image Reliable and cheap Established brand in the Indian marke.the top 5 models are all Maruti Suzuki models: Maruti 800.Power CSI study 2004. Zen. 6. Opportunities and threats. etc) Lower cost competitors and cheap imports Price war 6. 3. 2. taxes. 4. 3. Competition Cheaper technology External changes ( Government policies.OPPORTUNITIES 1. Product substitution 87 . :- Acquisition Innovation Online Product and service expansion Takeovers THREATS :1. 5. 4. 5. 2. Chapter :.5 Conclusion 88 . 2. The marketing strategies though aggressive and very customer specific are not prime force towards the sales. However much information on the distribution network can not be gathered. The prices of Maruti cars are competitive but they are not the price leaders. 3.Conclusion This chapter concludes the study by highlighting the key findings of the study and some recommendations for Maruti Suzuki for future. The main driver of the sales of Maruti cars in India are the Product features. The aim of the study is to critically analyse Maruti’s marketing strategies in India and to examine the effect on its sales . For this purpose secondary sources were used to collect information about the Marketing Strategies of Maruti Suzuki. 4. The conclusion that can be drawn are :1. 89 . Chapter : 6 Recommendations 90 . Maruti was established to provide low cast cars to the Indians so it should carry on its objectives but it should also focus on the customer satisfaction by providing them quality products at low cost. Maruti have developed a brand name and the customer have a high brand preference. 91 . means market with its low range ( but high quality ) products. There is need to incash on this by continuing to launch good quality products. This can be done by becoming more customer friendly to the Indian as well as Asian market. Due to the opening of the Indian market that means globalisation and due to entry of many competitors in the Indian automobile market Maruti should project itself more aggressively to the low end.Recommendations There is need for Maruti Suzuki to differentiate itself from past . T.R Research methodology.driveinside.carindia. Vikas Publishing house.surfindia. C.DhanpatRai and co.com www. 1997 Magzines : Overdrive Autocar Autodrive Websites : www. 2003 Chhabra.. 2010 Kothari.com www. Philip Principles of Marketing Management.carwale.com 92 .BIBLIOGRAPHY Books : Kotler. prentice hall India.com www.com www.marutisuzuki.N Marketing Management.