A PROJECT REPORT ON MARKET ANALYSIS AND CUSTOMER SATISFACTION ANALYSIS FOR MARUTI SUZUKI VEHICLES Submitted to INPARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT 2009-11 By ASHISH KUMAR SINHGAD INSTITUTE OF BUISNESS ADMINISTRATION & RESEARCH 1
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A
PROJECT REPORT
ON
MARKET ANALYSIS AND CUSTOMER SATISFACTION ANALYSIS FOR MARUTI SUZUKI VEHICLES
Submitted to
INPARTIAL FULFILLMENT OF
POST GRADUATE DIPLOMA IN MANAGEMENT
2009-11
By
ASHISH KUMAR
SINHGAD INSTITUTE OF BUISNESS ADMINISTRATION
& RESEARCH
S. NO. 40/4A+4B/1, Near PMC Octroi post , Kondhwa – Saswad road, Kondhwa(BK), Pune – 411 048. Tel.: +91-20-2693 4542.
1
CERTIFICATE
This is to certify that Ashish kumar student of SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH, Pune has completed his field work report at SIBAR on the topic of “ Market Analysis And Customer Satisfaction Analysis For Maruti Suzuki Vehicles” and has submitted the field work report in partial fulfillment of PGDM for the academic year 2009-10
He has worked under our guidance and direction. The said report is based
on bonafide information.
Prof. Shreekrishnan Patil Prof. Abdhoot Pol
Project Guide Director
Date:-
Place:-
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SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH, KONDHWA (BK), PUNE
DECLARATION
I hereby declare that the project title “Market Analysis And Customer Satisfaction Analysis For Maruti Suzuki Vehicles” is an original piece of research work carried out by me under the guidance and supervision of Prof Shreekrishnan
Patil . The information has been collected from genuine and authentic sources the work as been submitted in partial fulfillment of requirement of PGDM(Post Graduate diploma in Management) to SIBAR.
ASHISH KUMAR
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ACKNOWLEDGEMENT
I believe that one hand cannot accomplish the task successful, so I sincerely thank the staff of SIBAR for given us the opportunity to become a part of such a prestigious project & providing a true helping hand throughout.
I would like to express my sincere thank to Prof. ABDHOOT POL, Director SIBAR, Pune.
And also thanks my project guide Mr. SHREEKRISHNAN PATIL for their Support and motivation for providing their valuable suggestion and information needed to prepare the project report.
Finally yet importantly, I am thankful to my senior and friends who directly and indirectly contributed for the successful completion of the report.
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TABLE OF CONTENTS
Sr. No. Contents
Page no.
1. Introduction 21-23
2. Objectives 24-26
3. Company Profile 27-31
4. Review of Literature 32-34
5. Research Methodologies 35-37
6. Data Analysis 38-49
7. Recommendation 50-51
8. Conclusion 52-53
9. Bibliography 53-54
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6
MARUTI CARS
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8
9
EXECUTIVE SUMMARY
MARUTI SUZUKI
Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the
car segment, both in terms of volume of vehicles sold and revenue earned. Until recently,
18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan.
The Indian government held an initial public offering of 25% of the company in June 2003. As
of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this,
Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual production
commenced in 1983 with the Maruti 800, based on the Suzuki Alto Kei car which at the time
was the only modern car available in India, its only competitors- the Hindustan Ambassador and
Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti
Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various
several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not
manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in
Pakistan and other South Asian countries.
The company annually exports more than 50,000 cars and has an extremely large domestic
market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest
selling compact car ever since it was launched in 1983. More than a million units of this car have
been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti
Suzuki Swift is the largest selling in A2 segment.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is
commonly used to refer to this compact car model. Till recently the term "Maruti", in popular
Indian culture, in India Hindu's lord Hanuman is known as "maruti", was associated to the
Maruti 800 model.
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Maruti Suzuki has been the leader of the Indian car market for over two decades.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi.
Maruti Suzuki’s Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity
of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines
and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over
700,000 units annually.
More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of
Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned
by the public and financial institutions. It is listed on the Bombay Stock Exchange and National
Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over
six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14
that Maruti should first do something in this regard and hence this initiative of Maruti Driving
Schools."
RECOMMENDATIONS
Maruti has great chance of success In the future
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. CHAPTER 1
INTRODUCTION
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INTRODUCTION
COMPETITION-MARUTI SUZUKI INDIA LTD.
Today Maruti-suzuki,automobile company is the leader of the market in India.
This project is about the competition of Maruti with the other brands in India.
There are 2 locations at Sangli and Satara in MAHARASHTRA. At Pune there is
an outlet in TAVRE COLONY.At KATRAJ there is a full-fledged body shop. At
a distance of 3kms there is always a service station.
Another showroom is activated at ambegao on the Pune-Bombay Highway.
NOIDA
MARUTI-SUZUKI is located in NOIDA at THREE different places.
1) Sec. 18
2) Sec. 62
3) Sec. 33
The Chowgule Maruti Suzuki showrooms include sales, service,Used Cars,
Spares, back office, a conference hall, special uniforms etc.
Overall there were 200 employees 4 years back in Maruti but today there are in all
600 employees all over Goa and on expansion ,there are plans to increase the man
power still further.
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Mr. Y. R. Gupta is the Managing Director and the entire activitiesin Goa are
handled by Mr. Sunil Agrawal who is the General Manager.
In all there are 80 executives all over Noida.
THERE ARE 2 SEGMENTS A1 AND A2
THE A1 SEGMENT
The A1 Segment consists of Maruti SX4 and Maruti Grand Vitara.
THE A2 SEGMENT
The A2 SEGMENT consists of Ritz,Alto,Swift,A-star,Estilo and Wagon-R.
Now recently Maruti is losing its grip in the A2 segment.
The A2 segment excludes Maruti 800 .
STATEMENT OF THE PROBLEM
Statement of problem is the core part of any research. If problem is clear and well defined other
work of research can easily be formulated. During summer project assigned to me was “To
study the competition of MARUTI with other products” In this statement the problem,
instrument used, and the area covered are clearly mentioned. ‘Structured questionnaire’ means a
set of questions having definite answers .A survey was conducted all over NOIDA
RANDOMLY.
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CHAPTER 2
OBJETIVES
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OBJECTIVES OF THE PROJECT (FINDINGS)
1) TO STUDY THE COMPETITION OF MARUTI SUZUKI WITH OTHER
PRODUCTS ?
2) TO STUDY WHY THERE IS SHORTAGE OF VEHICLES
3) TO STUDY THE PROBLEMS ABOUT DISCOUNTS
SCOPE OF THE STUDY
Scope of study
The scope of study was limited to the following areas:
Sr. No. Respondents Area Covered
1. Customers
2. Dealers
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SIGNIFICANCE OF THE PROBLEM
To study the COMPETITION OF MARUTI with other cars in Noida. Objective of the study plays an important role for the success of the study. By this we came to know that Maruti is the Market leader in Noida. As per facts MARUTI is the market leader in the country.
ASSUMPTIONS
Assumption about the research means to predict the solution of the problem.
LIMITATION OF THE PROBLEM
The scope of the problem is limited only for the NOIDA
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CHAPTER 3
COMPANY
PROFILE
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THE CHOWGULE
The BIG INDUSTRIALISTS “THE CHOWGULE’S” have other huge businesses too such as
MINING,SHIPPING ,EDUCATION(St.Josephs,Chowgule college at Margao)
They have a huge Golf Club at MARGOA AT ARLEM.
A lot of cultural and commercial activities are held here.
They have lot of ship building activities and schools too.
Late Vishwasrao.D. Chowgule set up the shipping and mining and he was instrumental.
The company took iniatiatives to get the best technologies from JAPAN . Late Vishwasrao.D.
Chowgule was instrumental for getting technology in mining.
THE Chowgule Industry came into business in 1963.Initially the processing use to be done.
In 1983 they went in for the television.(THE CALTRON T.V.) Later on they stagnated.
In 1983 itself SWARAJ MAJDA was started in Panjim which is today at Margao.
They went into Commercial Vehicles i.e.the Swaraj Majda.
Khandeparkar is the G.M. of Swaraj Majda .At this time the sales were not good. Only around
4000 vehicles were sold which were of Swaraj Majda.
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Izsuzu is a Volvo Bus which is a commercial vehicle started in Pune but not yet started in Goa.
MARUTI UDHYOG ACTIVITIES
There are various activities that are carried out .
They are Selling Insurance, selling finance, selling excel accessories,
Some other activities are Exchange of cars for Maruti-Suzuki cars.
There are even driving schools which been started by Maruti-Suzuki.These schools are very
much renowned.
RDSE
There are activitieswhich are carried out in rural areas too.The RDSE handles it.(RDSE-Rural
Dealer Sales Executives).
THE SALES OPERATION STANDARDS
One of the most important functions are maintaining sales operations standards.
Its purpose s are
- Satisfaction with dealer performance
- Vehicle quality
- Lots of customer meets
- Ambience in the showroom
- Customer core activities
- Feedback systems
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GOLDEN RULE
3 Important things that help in increasing business are
RECOMMENDATION,REVISIT AND REPURCHASE.
CUSTOMER MEETS
Lot of customer meets are held during holidays .There are customer care managers
who handle this.
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SALES PROCESS
PRE-
DELIVERY
PROCESS
DELIVERY
PROCESS
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ENQUIRY TRACKING
ORDER BOOKING
FINANCE PROCESS
DELIVERY MANAGEMENT
DELIVERY EXPLANATION
DELIVERY CEREMONY
VEHICLE DELIVERY
CHAPTER 4
REVIEW OF
LITERATURE
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I.E. EXECUTIVE SUMMARY
Under this heading, the literature about the project in other words, theory of project is been
discussed. As the topic of my project was based on COMPETITION using the questionnaire as
an instrument, THE PROJECT reveals about the Maruti status in Noida as the market leader.
It also shows certain extra things such as:-
A study of consumer buying habits as far as cars are concerned
To find out the demand of Maruti
To find out the factors affecting sales of Maruti recently
To determine brand loyalty
To find the customer satisfaction level
To determine factors which influenced consumers in choosing a brand
LIMITATIONS
1) Hesitent to reveal true reasons sometimes
2) Biases play a major role too
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These were the problems faced during the survey process.
Type of research in which this research can be framed is descriptive type of research. Typically
descriptive studies are either longitudinal or cross-sectional. Longitudinal type of study,
generally takes the form of a sample of respondents who are studied over a period of time from a
few months to few years. This type suffers from a selection bais.
Cross sectional design- this is most commonly used in marketing research. This is a one shot
research study at a given point of time, and consists of a sample (cross section) of the population
of interest.
Its advantages are that it gives a good overall picture of the position at a given time. The
disadvantages could be that a cross sectional study tends to rely too much on numbers, can be
affected by poor quality of interviewer or supervisors and tend to view the population in terms of
too many generalization.
On the whole, though, cross sectional research appears to be most preferred by market
researchers and their clients on account of its simplicity & understandability.
Sampling:
Sampling consists of many elements the most important element is human respondent, who
could be consumer, potential consumer, a dealer or a person. Some other possible elements for a
study could be companies, families or household, retail stores etc. There are two major types of
sampling- probability sampling and non-probability sampling. The sampling technique used in
this research is random sampling. It involves picking any available set of respondents convenient
for the researcher to do the project in a proper required manner.
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CHAPTER 5
RESEARCH
METHODOLOGY
35
Data: Data are the facts, figures and other relevant information material , past present , serving
as bases for the study and analysis . Data are considered the backbone of any research project as
it helps the manager to take right decision.
Data are primarily of two types:
1. Primary Data
2. Secondary Data
Primary Data is the initial data in hand.
Secondary data may be defined as the data which has been collected earlier for some purpose
other than the purpose of the present study. Any data that is available prior to the commencement
of the research project is secondary data, there fore secondary data is also called as historical
data. Secondary sources of the data provide wealth of information to the researcher. It often
obviates the need of the primary data collection and saves the valuable time, effort and money.
Even where the subsequent primary data collection is required, an analysis of the secondary data
enlightens the researcher regarding many aspects of the study and gives contextual familiarity of
the primary data collection. It thus provides rich insights into the process.
SAMPLING:-
Simple random sampling was done.
Questionnaire: A set of questions prepared by the researcher for collecting required information
from the respondent is called questionnaire.
In this method a questionnaire is sent to the respondent with a request to answer and return the
questionnaire..
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CHAPTER 6
DATA ANALYSIS AND
INTERPRETATION
37
DATA ANALYSIS
This was the questionnaire designed and 754 people were surveyed randomly in Noida.
In <Sec. 18> 405 people were surveyed randomly
In <Sec. 62> 155 people were surveyed
In <Sec. 33> 47 people were surveyed
In <New delhi> 102 people were surveyed
In <GBD> 45 people were surveyed
Maruti Other0
50
100
150
200
250
300
350
400
450
500
Graphical Representation of Data
Graphical Representation of Data
Out of the 754 people surveyed 475 were owning Maruti and the remaining 279 were owning
other brand cars.
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People opted MARUTI for various reasons.they are:-
BRAND-199 people opted due to the brand
PRICE-183 people opted due to the price
COMFORT-266 people opted due to the comfort
PETROL EFFICIENCY-328 people opted due to the petrol efficiency
MANTAINENCE COST-256 people opted due to the maintainance cost
OTHER REASONS-13 people opted due to the other reasons such as service
REASONS FOR OPTING MARUTI
BRANDPRICE
COMFO
RT
PET.EFFI
MAIN
.COST0
10203040506070
Series 1
Series 1
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REASONS FOR OPTING CARS OTHER THAN MARUTI
BRAND-192 people opted due to the brand
PRICE-87 people opted due to the brand
COMFORT-257 people opted due to the brand
PETROL EFFICIENCY-127 people opted due to the brand
MAINTAINENCE COST-74 people opted due to the brand
OTHER REASONS-17 people opted due to the brand
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BRANDPRICE
COMFO
RT
PET.EFFI
MAIN
.COST0%
20%
40%
60%
80%
PERCENTAGE
PERCENTAGE
THE FUTURE PLANS OF THE PEOPLE IN NOIDA
MARUTI-According to the survey conducted 319 people are ready for
purchasing MARUTI in the future .
245 people are planning for other brands like Honda ,Chevorlet etc.
190 people are not yet sure of the brand they would purchase in the
future
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Sales
Maruti 319Other Brands 245Not Decided Group 190
OTHER PROBLEMS
There is shortage of vehicles and problem in services too. Sometimes there is also shortage of
vehicles ,discounts and services.
SHORTAGE OF VEHICLES
Shortage of vehicles is another problem faced by the company.
Due to the excessive demand of the vehicles in a certain category respectively the company faces
a problem. The production is not as fast as the demand of the people rises rapidly.
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Today it is known to everybody that MARUTI-SUZUKI is the market leader owning a share of
more than 60%.Hence there is excessive demand for Maruti in the country.
DISCOUNTS
Customers tend to ask more of discounts .This happens because people in India stress a lot on the
word “PRICING”.
Here it means that the customers in INDIA are very much price conscious.
Every person in india concentrates on savings ;this is why people over here tend to ask for more
discounts.
VISION, MISSION, GOALS
The main mission or the vision of the company is the ultimate customer satisfaction.The sales is
another important goal of the company.
PRODUCTS, AWARDS, FUTURE PLANS,CURRENT STATUS
1) Memberships Certificate by federation of Automobile dealers association (FADA)
2) AIB-VINCOTTE International Limited (BELGIUM) for Quality Management Systems.
3) International Certification Network for quality management.
4) International Certification Network for quality management (separate year)
5) Excellence in HR (TROPHY)
6) BAJAJ ALLIANZ (TROPHY)
7) 1ST PLACE (Service Award by Chowgule Industries) in BANGKOK
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STRATEGIES FOR FUTURE
They have a lot of plans in mind for expansions. They have a lot of future plans of changing and
expanding their business and profits a lot by the year 2015 with good services.
QUALITY POLICY
5 Ss is a quality system.
THIS INCLUDES
i) SEIRI OR SORTING
ii) SEITON OR SYSTEMATIZE
iii) SEISO OR SHINING (I.E. SWEEPING AND WASHING)
iv) SEIKETSU OR STANDERDISATION
v) SHITSUKE OR SELF-DISCIPLINE
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SEIRI OR SORTING
Seiri means sorting through everything in each work area. It requires keeping only what is
necessary.
Materials etc that are used frequently should be moved to a separate area. Items never used
should be discarded.This makes it easier to find the things needed and frees up additional space.
“TAGGING” items is usually a common approach when one decides what is to be thrown away.
An area is targeted and tagged with a red tag and a date. This is a very essential task.
SEITON OR SYSTEMATIZE
This is the next step. It requires organizing ,arranging and identifying everything in the work
area for efficient retrieval and return to its proper place.
Commonly used tools are readily available ,cabinets, shells etc are labeled. Floors are cleaned
and painted to spot dirt. Place is outlined to identify work areas.All things are labeled
systematically to be identified easily.
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SEISO OR SHINING (I.E. SWEEPING AND WASHING)
Once everything from each individual work area to the entire fascility is sorted and organized it
needs to be kept that way.
Regular cleaning and inspection makes it easy to spot lubricant leaks,equipment
breakage ,missing tools and low levels of supply. When done on a regular and frequent basis
cleaning and inspectin does not take a lot of time and in the long run actually saves time.
SEIKETSU OR STANDERDISATION
SEIKETSU ensures that the first three steps of the 5S programme continue to be effective. The
good practices developed in the first 3 steps need to be standerdised.
Therefore ,organizations must develop a work structure that will support the new practices and
turn them into habits.
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SHITSUKE OR SELF-DISCIPLINE
This implies continuous training and maintenance of standards. The organization must build a
formal system for monitoring the results of the programme. A follow-up is a must for the above
4 steps to continue to be practice.
There will have to be continuous education about maintaining standards.When there are changes
that will affect the 5s problem – such as new equipment,new products or new work rules ,it is
essential to make changes in the standards and provide training.
A good way to continue educating employees and maintaining standards is to use 5s posters and
signs.
USP (UNIQUE SELLING PRODUCT)
The USP i.e. the unique selling proposition defines a companies competitive advantage.One
must identify what makes him different from his competitors and emphasie these advantages in
his marketing.
The basis of his strong USP is the customer value proposition. For this one has to find out the
customers interests ,his needs, the services he requires etc.
One has to get the customer feedbacks regularly to improve upon the products,their
services ,about the company etc.
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One has to communicate to the customers about certain important things. They are:-
1) PRODUCT FEATURE:-This USP may be based on product features associated with the
product ranging from what it does to the quality of your support services.
2) EMOTION:- The USP may be based on the emotional appeal such as love, humour or
fear
3) ASSOCIATION:- The USP may be communicated by association with a well-known
personality.
FUTURE PLANS
There are certain credits that are given to a company.They are silver,gold,and platinum.Platinum
is the highest among all.Today Maruti Udhyog is at the highest level that is at the PLATINUM
level.
Maruti Suzuki is planning to expand its sales by various methods of sales promotion etc. Lot of
plans are being made for expansions. To increase market share of Maruti Suzuki India LTD.,at
the dealership in Noida in terms of sales and service.
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CHAPTER 7
RECOMMENDATION
49
RECOMMENDATIONS:
MARUTI SUZUKI which presently has a good market share of vehicle they can increase their
market with improving customer care services. Customer care service is the one area where
maruti suzuki is lacking very much.
Promotional strategy helps a lot to sell vehicles so company should do canopy in the companies.
By this co. can improve their sales.
MARUTI SUZUKI should give more emphasis on its vehicle service and can provide better
schemes as the customer demand is very high when compared to other brand.
MARUTI should reduce price of its high cost of vehicle.
Company can lower the customer turnover by giving emphasis on the satisfaction level.
MARUTI SUZUKI should increase the number of employees for the purpose of customer
satisfaction.
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CHAPTER 8
QUESTIONNAIRE
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The Questionnaire
Q.1) Which car do you have at present? How old is your car?