BELLAD MOTORS (P) LTD EXECUTIVE SUMMARY The project report was carried on to know the influential factors to buy cars at RNS though Bellad Motors selling the same, provided by the company will help to enhance the company’s sales. To know the satisfaction level of existing consumers this will help to maintain loyalty of the costumer. The project report entitled “A Study on Impact of consumer buying behaviuor on sales” provided by Bellad Motors (Maruti Suzuki) Unkal cross, Hubli. is undertaken in partial fulfillment of requirement of MBA 4th semester in Belgaum institute of Management studies, Belgaum. It was an opportunity to learn the practical aspects of industries. This topic is concerned to their (industry) requirement as the Bellad Motors (P) Ltd. (Maruti Suzuki) is newly opened exclusive showroom for Maruti Suzuki Cars Belgaum Institute Of Management Studies (MBA) Belgaum. 1
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BELLAD MOTORS (P) LTD
EXECUTIVE SUMMARY
The project report was carried on to know the influential factors to buy cars at RNS
though Bellad Motors selling the same, provided by the company will help to enhance the
company’s sales. To know the satisfaction level of existing consumers this will help to
maintain loyalty of the costumer. The project report entitled “A Study on Impact of
consumer buying behaviuor on sales” provided by Bellad Motors (Maruti Suzuki) Unkal
cross, Hubli. is undertaken in partial fulfillment of requirement of MBA 4th semester in
Belgaum institute of Management studies, Belgaum.
It was an opportunity to learn the practical aspects of industries. This topic is concerned
to their (industry) requirement as the Bellad Motors (P) Ltd. (Maruti Suzuki) is newly
opened exclusive showroom for Maruti Suzuki Cars and now they want to know why the
most of the customers prefer to purchase Maruti Cars at RNS.
So they need to know what are the influential factors, Why customers preferring RNS
Motors. The needed information collected by a structured questionnaire that included all
the requirements what the Bellad Motors needed and questionnaire is attached in the
appendix.
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DATA COLLECTION APPROACH
Using both primary and secondary sources collected the information required the sources
are as follows:
Primary sources:
a) Questionnaire
b) Personal Interview
Secondary sources:
a) Company websites
b) Related information from Internet
c) Company reports
d) Text books
SELECTION OF SAMPLE:
Population : Hubli city car owners.
Population Frame : All Maruti Car owners.
Sample Unit : Existing customers of Bellad Motors
Sample Size : 100
Method : Random convenience sample.
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ANALYSIS & MEASUREMENT TECHNIQUES:
Data analysis involves converting a series recorded observation about descriptive
statement and information about relationship. The measurement and evaluation of the
data is done using SPSS 11.0 Version software, Simple frequency, cross tabs, and
graphical representation.
RECOMMENDATION AND CONCLUSION
Enhance newspaper advertisements to create more awareness.
Allow more cash discounts.
Stick to commitments.
Timely delivery of car should be maintained.
Appoint the experienced staff for service station.
Maintain good customer relationship.
The findings make it clear that automotive manufacturers and dealers must focus on
better collaboration, stronger commitment to developing a long-term relationship with the
customer, and increased communication throughout the vehicle lifecycle if they hope to
improve customer loyalty as well as business performance.
LIMITATION:
The sample size of 100 customers may not reveal the exact result and same of the
information provided by the respondents may be biased.
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INTRODUCTION
Understanding how consumers shop for vehicles, what leads them to buy, and how
to acquire and maintain their loyalty is increasingly important in today’s complex
environment.
Buying a car used to be a pretty simple process: A consumer would check out some
ads, talk to a few friends and head into the dealer for more information. Today that
process has grown more complex, as consumers increasingly rely on new tools such as
the Internet, blog sites, Web forums and online social networks. This increased
sophistication has resulted in changing buying patterns as well as a shift of power in
favour of the consumer. Keeping up with the pace of change isn’t easy for many vehicle
manufacturers and dealers. Understanding how consumers shop for vehicles, what leads
them to buy, and how to acquire and maintain their loyalty is increasingly important in
this complex environment. Without this knowledge—or with insufficient or inaccurate
knowledge—companies and dealers will find it difficult to improve the customer
experience as well as their own business performance.
Consumers are increasingly driven by their hearts, as well as their heads: although
rational factors such as safety, price and reliability play a role in consumers’ decision-
making process, more emotional aspects often trump them. For example, when
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consumers were asked why they switched to a different brand, responses such as “fits my
needs,” wanted to try something new” and “enjoyment of the vehicle” scored higher than
fuel economy and safety. And when it comes to the factors that lead buyers to repurchase
from the same dealer, greater importance is placed on trustworthiness and friendliness
these days than on factors such as the degree of knowledge possessed by the sales staff.
This poses a challenge for manufacturers and dealers since it requires that they appeal to
both the rational and emotional aspects of buying a car.
Customer loyalty is fleeting: With so much riding on the relationship and emotional
factors, consumer trust and loyalty can be easily broken. Consumers are ever more
demanding and are prepared to walk at any time, even within a month of purchase, and
often they won’t give a company a second chance. If that response isn’t fast enough,
many consumers will look for a new dealer, a new manufacturer or both.
Loyalty doesn’t end with the sale: Vehicle ownership is a long-term, complex
relationship among the consumer, the manufacturer and the dealer. Post-sale
communications and after sales services are essential to keep the relationship alive. For
example, consumers indicated that they appreciate or greatly appreciate dealer contact
such as having the service manager phone following vehicle servicing, receiving regular
service reminders or having a sales consultant phone following delivery of a vehicle. It’s
also clear that personalized communication is key to maintaining the relationship. Among
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the types of contact that consumers said would be more likely to lead them to purchase
their next vehicle from the same dealer or manufacturer were a personalized repurchase
offer via post and personalized communication after a complaint.
Further collaboration between the manufacturer and dealer is key to driving
growth: Consumers don’t always make the distinction between vehicle manufacturer and
dealer. For instance, if either party fails to respond quickly enough to an inquiry,
consumers will switch both brand and dealer. These points are the importance of retail
integration in the battle of customers and sustainable profits. Together, both
manufacturers and dealers are better positioned to respond faster and more effectively to
consumers’ needs, wants and preferences.
The project report was carried on to know the influential factors to buy cars at RNS
though Bellad Motors selling the same, provided by the company will help to enhance the
company’s sales. To know the satisfaction level of existing consumers this will help to
maintain loyalty of the costumer. The project report entitled “A Study on Impact of
consumer buying behavior on sales” provided by Bellad Motors (Maruti Suzuki) Unkal
cross, Hubli. Is fulfillment of requirement of MBA 4th semester in Belgaum institute of
Management studies (MBA), Belgaum.
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It was an opportunity to learn the practical aspects of industries. Selected this topic
concerned to their (industry) requirement as the Bellad Motors (P) Ltd. (Maruti Suzuki) is
newly opened exclusive showroom for Maruti Suzuki Cars and now they want to know
why the most of the customers prefer to purchase Maruti Cars at RNS. So they need to
know what are the influential factors, Why customers preferring RNS Motors. The
needed information collected by a structured questionnaire that included all the
requirements what the Bellad Motors needed and questionnaire is attached in the
appendix.
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LITERATURE REVIEW
Consumer buying behaviour
Possibly the most challenging concept in marketing deals with understanding why buyers
do what do (or do not do). But such knowledge is critical for markets since having a
strong understanding of buyer behaviour will help shed light on what is important to the
customer and also suggest the important influence on customer decision making. Using
this information, marketers can create marketing programs that they believe will be of
interest to customers. As we might guess, factors affecting how customer makes
decisions are extremely complex. Buyers’ behaviour is deeply rooted in psychology with
dashes of sociology thrown in just to make things more interesting. Since every person in
the world is different, it is impossible to have simple rules that explain how buying
decisions are made. But who have spent many years and analyzing customer activity have
presented us with useful “guidelines” in how someone decides whether or not to make a
purchase.
Types of Purchase Decisions
Consumers are faced with purchase decisions nearly every day. But not all decisions are
treated the same. Some decisions are more complex than others and thus require more
effort by the consumer. Other decisions are fairly routine and require little effort. In
general, consumers face four types of purchase decisions:
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Minor New Purchase: These purchases represent something new to a consumer but in
the customer’s mind is not a very important purchase in terms of need, money or other
reason (e.g., status within a group).
Minor Re-purchase: these are the most routine of all purchases and often the consumer
returns to purchase the same product without giving much thought to other product
options (e.g., consumer is brand loyalty).
Major New Purchase: These purchases are the most difficult of all purchases because
these are important to the consumer but the consumer has little or no previous experience
making the purchase and is important. This type of decision often (but not always)
requires the consumer to engage in an extensive decision-making process.
Major Re-Purchase: These purchase decisions are also important to the customer but
the customer feels more confident in making the decision since they have experienced
purchasing the product in past. For marketers it is important to understand how customers
treat the purchase decisions they face. If a company is targeting customers who feel a
purchase decision is difficult (i.e., Major New purchase), their marketing strategy may
vary greatly from a company targeting customers who view the purchase decision as
routine. In fact the same company may face both situations at the same time, for some of
the product is new, while other customers see the purchase as routine. The implication of
buying behaviour for marketers is that different buying situations require different
marketing efforts.
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Consumer Behaviour.
The decision process and physical activity individuals engage in when evaluating,
acquiring, using, or disposing of the goods and services.
OR
The mental, emotional, and physical activities that people engage in when selecting,
purchasing, using and disposing of products and services so as to satisfy needs and
desires.
1. Decision Making as Problem Solving
a) To make purchases, consumers, go through a buying decision process that can be
thought of as solving a problem.
b) This process has six stages:
(1) Need Recognition
(2) Choice of an involvement level
(3) Identification of alternatives
(4) Evaluation of alternatives
(5) Decisions
(6) Post-purchase behaviour
c) There are number of factors that may affect this model of decision making.
i) The buyer can withdraw at any stage prior to the actual purchase.
ii)Some stages in this model may be skipped, depending upon the buying situation.
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iii) The stages are not all of the same length. For example a need may be recognized
in an instant but the identification of alternatives to satisfy the need may take
hours, days, or weeks.
iv) Not all stages will be performed consciously for all purchases.
d) Recognition of an unsatisfied need, or need recognition, creates tension or
discomfort for the consumer.
i) This need may arise internally, such as feeling hungry or thirsty, or
ii) It may arise because of external stimulation through such things as:
1) An ad for a product,
2) The sight of the product itself
iii) Needs may also be stimulated through dissatisfaction with the consumer is
currently using.
iv) Recognition of a need will often cause conflict for the consumer.
1. The consumer has decided how to allocate his/her resources of time and
money between completing needs.
2. If this conflict is not resolved the buying process stops.
e) The choice of an involvement level is when the consumers decide how much effort
in satisfying a need. The more effort exerted, the higher the involvement.
i) Involvement tends to be greater under any of the following
(1) The consumer lacks information about the purchase
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(2) The product is viewed as important
(3) The risk of making a bad decision is previewed as high
(4) The product has considerable social importance
(5) The product is seen as having a potential for providing significant benefits.
ii)Most buying decisions for relatively low priced products with close substitutes are
low involvement. This would include most products sold in supermarkets, and
variety stores.
iii) It is important to remember that involvement is consumer related and not product
related. This means that a low involvement product foe one person may be a high
involvement product for another person.
(1) The purchase of stereo may be a high involvement purchase for consumers
who is concerned about the cost, but
(2) Be a low involvement purchase for a wealthy consumer who is buying for a
family room.
iv) Impulse buying is an important form of low involvement decision making.
a. These purchase decisions that are made with little or no advance planning.
b. Shoppers have been conditioned to do more impulse buying through self
service, open display retailing.
c. Because of this greater emphasis must be placed in getting shoppers in the store
and making packages and displays more appealing.
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v) Identification of alternatives includes both product and brand alternatives. This
may be simple as a memory scan or an extensive search.
a. The consumer must first identify which of the major product categories might
satisfy the experienced need. For example, a need for transportation may be
satisfied by automobiles, motorcycle, motor scooters, or bicycle.
b. Then the consumer must choose which brands from the selected category to
consider. Using the previous examples, the consumer chooses motorcycle and
not must consider Honda, Yamaha, Kawasaki, and Harley-Davidson.
c. The search for alternative will be influenced by:
(1) How much information the consumer already has from past experience and
other sources
(2) The consumer’s confidence in that information
(3) What the time and money costs would be to collect more information.
g) Evaluation of alternative involves establishing criteria with which to evaluate each
alternative before making a decision.
a. This may be a single criterion or several criteria. If there are several criteria, they
normally do not carry equal weight.
b. The criteria that consumers use come from
i. Past experience and feelings toward various brands
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ii. Opinions of family members and friends.
h) The purchase decisions are a series of related decisions the consumer must make if
they decide to make a purchase.
These decisions may take a long time and include such things as:
i. Special features of the product
ii. Where and when to make the actual purchase
iii. How to take possession
iv. Method of payment.
b. One of the most important of these decisions is which store to purchase the product
from. The reason a person shops at a certain store are called patronage buying
motives and include:
i. Feeling comfortable in the store
ii. Having people like themselves shopping in the store
iii. An environment that reflects their values
c. Successful retailers evaluate their target customer carefully and design their stores
accordingly.
d. It is important to understand customer satisfaction because that is what the
marketing concept is built on.
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i. Customer satisfaction is based upon a comparison between the consumer’s
expectations before using a product and his actual experience with the product.
ii. A consumer is satisfied when the product experience equals or exceeds
expectations.
iii. A consumer is dissatisfied when the experience falls short of expectations.
Marketers can influence consumer’s expectations through advertising claims and
sales presentations.
iv. Marketers can influence the consumer’s experience through the quality of the
product.
i) Post-Purchase Behaviour can influence repeat sales and what the buyers tell other
about the product.
1. In all but the most routine purchases, consumers may experience anxieties the are
explained by the theory of cognitive dissonance. Cognitive Dissonance is any time
there is inconsistency in a person’s cognitions such as knowledge, attitudes, beliefs,
and values.
2. Post purchase dissonance occurs because each of the alternatives considered by the
consumer has both advantages and disadvantages. So even he selected product has
some drawbacks while rejected alternatives have some advantages.
3. Dissonance typically increases as:
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i ) The dollar value of the purchase increases
ii) The degree of similarity between items selected and items rejected increases
iii) The relative importance of the decision increases.
4. To help reduce post purchase dissonance consumers:
i) Avoid information that is likely to increase dissonance
ii) Seek out information that reinforces the selected product; and
iii) Spend more time in pre-decision evaluations.
5. Marketers can help reduce dissonance through:
ii. Reassuring buyers through their advertising and personal selling
iii. Giving quality post-sales service.
Action steps for bahaviour change
This is circular process. Working through steps 2, 3 and 4 may lead to redefining the
objective in step 1.
1. Define your objective. What is your desired end result? You may begin by thinking
broadly, but narrow your objective so it’s achievable and, if possible, measurable.
How will you know when you’ve achieved your desired result?
2. Select your audience. Brainstorm the possible audiences you could work with and
choose one. Pick the most likely to get your desired result.
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3. Learn about your audience. What do they need? What do they want? What do they
know? What are their perceptions? Who do they respect? Who do they interact with
(business and social networks)? Define the specific change you want the audience to
make to achieve your overall result.
4. Find out about your audience’s barriers to making the change. Go ask your
audience. Possible barriers include: External: it costs too much, technology isn’t
available, laws are conflicting, etc. Personal: they don’t recognize the problem, don’t
know what to do, don’t consider it a priority, etc.
5. Develop strategies to reach your audience, using the behaviuor change principles
(e.g., commitment, feedback, credibility, role models). Are there communities or
political leaders, associations, retailers innovators, or other specific target groups that
could help you reach your desired end result?
6. Develop a method to measure the effectiveness of your strategies. Refer back to
your objective in step 1.
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SUMMARY
Key behaviour change principles
Just providing information has a limited effect on behaviour. There is no clear casual
relationship between providing information and changing behaviour.
a. Learn about your customer or audience. What do they know? Care about? Think
about? Who influence them?
b. Address the barriers to changing behaviuor. Barriers may be external (it costs too
much, technology isn’t available, laws are conflicting) or personal (the person doesn’t
know what to do, doesn’t consider it a priority, thinks it’s too hard).
1. Getting involved is the first step to making a commitment, and making a commitment
makes people more people more likely to act. Small commitments lead to big ones.
Start by getting the shop owner involved in a visit. Then ask them to sign a form
stating changes they will make.
2. Feedback and follow-up are important. Feedback gives people cues about the impacts
of their behaviour changes. Additional contacts are also very important in motivating
people to stick with a task.
3. People will listen first to their friends or relatives, or others they see as credible. What
they hear at a dinner party will have more weight than a comprehensive data
summary.
4. Change agents and role models are important. A few people in a group will typically
adopt innovative ideas and behaviors first, and spread them through the group. Find
these people and help them successfully adopt a new behaviour.
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5. Changing attitudes may not change behaviour. There is no strong, direct or consistent
relationship between attitudes and subsequent action.
6. Incentive may help change short-term. But when the reward is removed, they generally
revert to their original behaviour.
7. If you need to provide information, present it effectively. People are more likely to
pray attention to information that is:
a. Vivid: Use language that conjures up a vivid and memorable image, or provide a
demonstration that will stick in someone’s mind.
b. Personal: Make statistical data personally relevant. Talk about personal
consequences or refer to a group with which the person identifies.
c. Specific and concrete: Tell them how to do the behaviour you want them to do.
d. Stated in terms of loss rather than gain: Focus on showing people or business’s
how much they are losing every month or year by not doing a specific behaviour.
e. Told as a story: Use success stories as a motivating example.
f. Emotional: People tend to be persuaded more by emotional messages than
logical ones.
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MANAGEMENT PROBLEM
In Indian car industry, small car segments have played a very crucial and significant role
due to its economy, efficiency and effectiveness. Due to invasion of foreign cars into
Indian markets the pace of competition has hiked. This has brought into market numbers
of brands, dealers, and their variants competing with each other.
Hence in the meeting with Deputy General Manager (sales) and sales manager a research
project was discussed where both the managers wanted to analyze the why most of the
customers preferring to purchase car at RNS though Bellad selling the same.
RESEARCH PROBLEM.
Newly opened Bellad Motors (P) Ltd is exclusive showroom for sales, spares and service
for Maruti Suzuki cars. They want to know why customers buy Maruti Cars at RNS only
though Bellad Motors is also selling the same.
Hence statement problem as follows
“A study on impact of consumer buying behavior on sales at Belled motors Hubli”.
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PURPOSE OF THE STUDY
Management will come to know the influential factors, why consumers preferring RNS
motors to purchase a car and it will help to increase sales of cars, and they will come to
know the consumer buying behavior, expectation and the drawback of the management.
This study will help the management for making strategic decisions, acquire market
share, and building a good brand.
To study the influential factors behind buying Maruti Cars at RNS.
To know the expectations of prospective customers from Bellad Motors.
To understand consumer buying behaviour.
To know the satisfaction level of service station.
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SCOPE OF THE STUDY
The area covered for project is Hubli City and the existing customers of the Bellad
Motors and the functional departments like sales and service, after sales service division,
reception of the organization.
OBJECTIVES OF THE STUDY
The main objective of the study-
To study the influential factors behind buying Maruti Cars at RNS.
Sub objectives are-
To know the expectations of prospective customers from Bellad Motors.
To understand consumer buying behaviour.
To know the satisfaction level of service station.
To know the overall performance about the Bellad Motors.
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ORGANIZATION PROFILE
MARUTI UDYOG LIMITED
ORGANIZATION OVERVIEW:
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the
lack of an efficient public transport system.
Suzuki Motor Company was chosen from seven prospective partners worldwide. This
was not only due to their undisputed leadership in small cars but also to their
commitment to actively bring to MUL contemporary technology and Japanese
management practices (which had catapulted Japan over USA to the status of the top auto
manufacturing country in the world).
A license and a Joint Venture agreement were signed between Govt of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.
The objectives of MUL then were:
1. Modernization of the Indian Automobile Industry.
2. Production of fuel-efficient vehicles to conserve scarce resources.
3. Production of large number of motor vehicles which was necessary for economic
growth.
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ORGANIZATION VISION:
"The Leader in The Indian Automobile Industry, creating Customer Delight
and Shareholder's Wealth; A pride of India."
OUR CORE VALUES:
1. Customer Obsession
2. Fast, Flexible and First Mover
3. Innovation and Creativity
4. Networking and Partnership
5. Openness and Learning
TECHNOLOGICAL ADVANTAGE:
We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti
Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a
fuel efficient 4-valve engine to create optimum engine delivery. This means every Maruti
Suzuki owner gets the ideal combination of power and performance from his car.
Our other innovation has been the introduction of Electronic Power Steering (EPS) in
select models. This results in better and greater maneuverability. In other words, our cars
have become more pleasurable to drive.
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PRDUCTION/ R & D:
Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti
Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two
vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to
make a car. More importantly, with an incredible range of 11 models available in 50
variants, there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream.
Production Milestones
1 st vehicle produced, December 1983
1,00,000 vehicles produced by August, 1986
5,00,000 vehicles produced by June, 1990
10,00,000 vehicles produced by March, 1994
15,00,000 vehicles produced by April, 1996
20,00,000 vehicles produced by October, 1997
25,00,000 vehicles produced by March, 1999
30,00,000 vehicles produced by June, 2000
35,00,000 vehicles produced by December 2001
40,00,000 vehicles produced by April, 2003
45,00,000 vehicles produced by April, 2004
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MILESTONES:
2006
The car of the Year Maruti SWIFT.
2005
The fiftieth lakh car rolls out in April, 2005 Growth in overall sales by 15.8%
2004
New (non AlC) variant of Alto, Alto becomes India's new best selling car LPG variant
of 'Omni Cargo', Versa 5-seater, a new variant Baleno LXI, a new variant Maruti
closed the financial year 2003-04 with an annual sale of 472122
units, the highest ever since the company began operations 20 years ago
2003
New Suzuki Grand Vitara XL-7, Redesigned and
all-new Zen
New upgraded WagonR
Enters into partnership with State Bank of India
Production of 4 millionth vehicle. Listed on BSE and NSE after a public
issue oversubscribed 10 times
2002
WagonR Pride
Esteem Diesel. All other variants upgraded
Maruti Insurance. Two new subsidiaries started: Maruti Insurance
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Distributor Services and Maruti Insurance Brokers Limited
Alto Spin LXi, with electronic power steering
Special edition of Maruti 800, India's first colour-coordinated car
Maruti True value in Mumbai
Maruti Finance in Mumbai with 10 finance companies
Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 Percent
2001
Zen Lxi
Maruti True Value launched in Bangalore and Delhi
Maruti Versa, India's first luxury MPV
Alto Spin LXi, with electronic power steering
Alto Vxi
Customer information centers launched in Hyderabad, Bangalore and Chennai
Launch of versa
2000
First car company in India to launch a Call Center
New Alto
Altura, a luxury estate car
IDTR (Institute of Driving Training and Research) launched jointly with
the Delhi government to promote safe driving habits
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1999
Maruti 800 EX ( 796cc, hatchback car)
Zen LX (993cc, hatchback car)
Zen VXi (993cc, hatchback car with power steering)
Omni XL ( 796cc, MUV, high roof)
Baleno (1600cc, 3 Box Car)
Wagon R
Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social
initiatives
1998
Maruti launches website as part of CRM initiatives
Zen D (1527 cc diesel, hatchback car)
Zen VX & Zen VX Automatic
New (Omni & Omni E) (796cc, MUV)
Launch of website as part of CRM initiatives
1997
1998 Esteem (1299cc, 3 box car) LX, VX and AX
New Maruti 800 (796cc,hatchback Car) Standard and Deluxe
Produced the 2 millionth vehicle since the commencement of production
1996
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Gypsy (E) (970cc, 4WD 8 seater)
Omni (E) (796cc, MUV, 8 seater)
Gypsy King (1298cc, 4WD, off road vehicle)
Zen Automatic (993cc, hatchback car)
Esteem 1.3L (1298 cc, 3 box Car)AX
Launch of 24-hour emergency on-road vehicle service
1995
Esteem 1.3L (1298 cc, 3 box car)VX
With the launch of second plant, installed capacity reached 200,000 units
1994
Esteem1.3L (1298cc, 3 box car) LX Produced the millionth vehicle since the
commencement of production
1993
Zen (993cc, hatchback Car), which was later exported in Europe and elsewhere as
the Alto
1992
SMC increases its stake
1991
Reaches cumulative indigenisation of 65 percent for all vehicles produced
1990
Maruti 1000(970cc, 3 box), India's first contemporary sedan
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1988
Installed capacity increased to 100,000 units
1987
Exported first lot of 500 cars to Hungary
1986
Maruti 800 ( New Model-796cc, hatchback Car)
Maruti 800 ( New Model-796cc, hatchback Car)
1985
Launch of Maruti Gypsy (970cc, 4 WD off-road vehicle)
1984
Omni, a 796cc MUV
Installed capacity reached 40,000 units
1983
Maruti 800, a 796 cc hatchback, India's first affordable car.
Production was started under JV A
1982
License and JV agreement signed between Maruti Udyog Ltd. and SMC of Japan
1981
Maruti Udyog Ltd was incorporated under the provisions of the Indian
Companies Act, 1956
AWARDS
2006
JD Power SSI: 1st Rank, 3 years in a row 2004 – 2006
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Tops TNS TCS Survey in key segments, 5 years in a row 2002 – 2006
Among Top 5 car companies in the Forbes list of the Worlds Most Reputed Companies –
Nov 06
Features in Business Today’s annual list of “20 companies to look for in 2007” – Nov 06
The only automobile manufacturer to feature in Business Today’s list of “India’s Best 10
Marketers – Nov 06
Ranks 1st for Corporate Social Responsibility by TNS Automotive
2005
Ranks 1st among Automobile companies in the Corporate Image Monitor (CIM) Study
2005 conducted by AC Nielsen ORG-MARG
Receives a commendation from Ministry of Economy, Trade and Industry (MITI) of
Japan – Sept 05
Number one in JD Power SSI for the second consecutive year
Number one in JD Power CSI for the sixth time in a row - the only car to win it so many
times
M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction
Study
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Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the
2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift
number one in the premium compact segment
WagonR and Esteem top their segments in the JD Power APEAL study
Ranks 1st in Auto sector for Corporate Reputation Strength (CSR) study – Feb 05
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto
sector)-Feb 05
Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC ( 2nd time in a
row)-Feb 05
First Indian car manufacturer to reach 5 million vehicles sales
Business World ranks Maruti among top five most respected companies in India-Oct 04
Maruti ranked among top ten (Rank7) greenest companies in India by Business Today -
Sep '04
2004
Maruti Suzuki was No.1 in Customer Satisfaction, No.1 in Sales
Satisfaction No.1 in Product Quality (Esteem and Alto) and No.1 in
Product Appeal (Esteem and Wagon R)
No.1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)
Business World ranked us among the country's five most respected companies
Business World ranked us the country's most respected automobile company
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Voted Manufacturer of the year by CNBC
Voted one of India's Greenest Companies by Business Today-AC
Nielson ORG-MARG
2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10
automotive brands in "Most Trusted Brand survey 2003"
J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem
Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study
2003.
MUL tops in J D Power CSI (200 1) for 4th time in a row
2001
MUL tops in J D Power CSI (200 1) for 2nd time in a row: another
international first
2000
Maruti bags JD Power CSI – 1st rank; unique achievement by market
leader anywhere in the world
1999
MSM launched as model workshop in India; achieves highest CSI rating.
Central Board of Excise & Customs awards Maruti with "Samman
Patra", for contribution to exchequer and being an ideal tax assessee
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1998
CII's Business Excellence Award
1996
Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the
Star Trading House status by Ministry of Commerce
1994-95
Engineering Exports Promotion Council's award for export performance
1994
Best Canteen award among Haryana Industries as part of employee welfare
1992-93
Engineering Exports Promotion Council's award for export performance
1991-92
Engineering Exports Promotion Council's award for export performance
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SOCIAL WELFARE:
Welfare Camps
Every year we organize blood donation camps along with Red Cross, in which
employees donate blood. Eye check-up camps, family planning related camps and other
health camps are also organized periodically.
Medical support & welfare
The employees of Maruti have always donated generously to people affected by natural
calamities. They contributed Rs. 2 million to rehabilitate earthquake victims in Latur.
We also run a creche for the children of construction workers, which provides food
shelter and education for 85 children.
Education to underprivileged
DPS Maruti Shiksha Kendra, an education programme for the underprivileged, was
inaugurated at DPS, Maruti Kunj recently. The objective of his project is to educate the
children of below poverty line (BPL) families from the nearby villages of Gurgaon
district. 120 students in the age group of 5-8 years have already enrolled. DPS Maruti
Kunj is providing books, writing material and uniforms, refreshment and transport
facilities to these children.
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Education Programme for mothers
'Chetna', an education programme for mothers - is an another endeavour to provide
basic education to mothers of the students of DPS Maruti Kunj and surrounding villages.
Majority of students at the school is first generation learners. Therefore, the concept of
starting a movement of learning 'Chetna' for mothers has been promoted. The response
has been encouraging and about 130 mothers are attending it regularly.
ENVIRONMENT CONCERN
Our environment Policy:
Prevent pollution.
Promote energy reduction and use of alternative energy.
Manage/ reduce those materials that put stress on environment.
Promote the three R's (Reduce, Reuse, Recycle).
Promote "Green" procurement.
Provide our employees with environmental education to
increase their awareness.
Since the commencement of operations in 1981 we've been committed to the protection
of the environment and conservation of non-renewable .energy sources. Our proactive
approach depends not only upon meeting the expectations of the regulatory authorities
but achieving the high standards that we've set as a responsible corporate citizen.
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This philosophy of trying to make a difference to the environment penetrates through
our employees to the process of manufacture and finally into our products.
Pollution Control Camps
Our elaborate system of Free Pollution Check-Up Camps which run at regular intervals,
is designed at making the cars already on the road operate more efficiently. It also
inculcates awareness for environmental protection among the many car users of India.
MPFI
We have introduced Euro II compliant MPFI engines in all our models. Along with
our vendors, we've made investments of over Rs. 60 million for introducing MPFI
technology compliant cars.
CNG
Maruti is a strong advocate of CNG, a more eco-friendly fuel alternative to diesel and
petrol. In our endeavour to provide a cleaner and greener option to the customer, we are
in the process of equipping an extensive dealer network to assist Maruti owners in fitting
CNG kits.
Rain Water Harvesting
To recharge the aquifer, measures were taken to harvest the rain water through soak
pits, recharging shafts and water lagoons. These measures are capable of charging nearly
50% of the average annual rainfall at Maruti, into the Earth.
MARUTI CULTURE:
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Our employees are our greatest strength and asset. It is this underlying philosophy that
has molded our workforce into a team with common goals and objectives. Our
Employee-
Management relationship is therefore characterized by:
Participative Management.
Teamwork & Kaizen.
Communication and information sharing.
To implement this philosophy, we have taken several measures like a flat organizational
structure. There are only three levels of responsibilities ranging from the Board Of
Directors, Division Heads to Department Heads. Other visible features of this philosophy
are an open office, common uniforms (at all levels), and a common canteen for all.
This structure ensures better communication and speedy decision-making processes. It
also creates an environment that builds trust, transparency and a sense of belonging
amongst employees.
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THE MAJOR PLAYERS IN SMALL CAR SEGMENT
Hyundai Motors India Ltd
Telco
Fiat India Ltd
The battle royal in the India car market has entered the next phase. One old assumption
has been vindicated – that over 80% of the Indian car market is still confined to the small,
sub – Rs 4 lakh models. And that mod-size and digger models can only provide the icing
on the cake, not the cake itself to any manufacturer.
Quite apart from these specific lessons that each man learnt, there were several surprises
that the car market threw up. First world-class technology and quality were considered a
given now. Second, the Indian buyer had begun to expect model and engine upgrades as
frequently as his US or European counterparts. The Indica had to upgrade their engines in
less than one year after launch, the power steering option barely a year after it hit the
market.
And finally, while the manufacturers could continue to refer to it as the ‘Indian small car
segment ’, the buyer characteristics were anything but homogeneous. There were distinct
group with distinct preferences. And the days of one model becoming the undisputed
heavyweight champion were over for good.
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BRIEF DESCRIPTION OF MAJOR PLAYERS
Hyundai : Hyundai has become the undisputed number two in the Indian auto market,
and the only one-even rivals admit- with the capability of giving leader Maruti a run for
its money in the total volume stakes though Hyundai in India currently sells just about a
quarter of the numbers that Maruti does.
Hyundai got everything right because it got the value-price–technology equation almost
perfectly right from day one. The Santro was an instant winner from the day it was
introduced in the Indian market because it offered the optimum mix of space and
technology in the small car market, at a highly competitive price.And with easy consumer
financing available in the market, Hyundai did not have to work too hard to persuade
even entry-level car buyers to go for the Santro instead of the Maruti 800.
And when it launched mid-size Accent some time later, Hyundai proved that it could get
its value-price equation consistently right across different segments.
But despite its great start, Hyundai made two mistakes and by Maruti it is also one under
the most pressure because after zooming to the number two spot, it cannot afford to skid
in the race. But Telco’s Indica is snapping at its heels. And Maruti's backlash is
expected to target the Santro more than any other model.
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The two miscalculations that Hyundai made? First, while Hyundai Santro was harping on
the fact that it was a new generation car, it hadn't brought its latest engine technology to
India, it was a mistake that rival Matiz capitalised on once Euro-II pollution norms were
announced for the motors. Daewoo most of the fact that every Matiz was Euro-II
complaint –while Hyundai could offer an Euro-II version only at a higher price. Though the
latter moved quickly in a damage-control exercise, the Santro did lose a bit of its sheen.
But worse for Hyundai, it-miscalculated demand for its cars. The result: when demand
peaked for the Santro, it was in no position to offer the car off-the-shelf like its rivals.
Buyers had to wait for three months to get a Santro after booking it.
Hyundai is moving fast to sort out its capacity problem. Work will soon start on the
second phase of its Sriperumbudur car project, one year ahead of what was initially
planned. An additional investment of $400 million will help expand capacity from 1.2
lakh cars to 2 lakh cars per annum.
That apart, the big worry for Hyundai is that other than the Santro (the Atos in Korea), it
doesn't 'have any other small car in its armoury. Unlike Suzuki which is primarily a small
car specialist, Hyundai can only introduce bigger cars in the Indian market either from its
own product range, or those of Kia Motors, which it took over last year.
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And the car maker is planning to do precisely that. Over the next two years, It plans to
offer the Sonata, priced at around Rs "12 lakh, m the segment above the Astra/Lancer/City
category. 'The Sonata is a niche product. We hope to sell about 250 cars a month," says
Gandhi. Also, Hyundai will be launching a sports utility vehicle (SUV), currently under
development in Korea.
Hyundai is looking a bit vulnerable now because globally it is a minnow in the car
market. St lacks the sheer money power and product muscle to keep fighting the Fords and
Telco in any market. And if Ford does take over Daewoo Motors, Hyundai's number two
position in India could be seriously under threat.
TELCO: THE HOME-GROWN CHALLENGER
When it first announced its plans,' scepticism abounded. With dozens of global carmakers
hitting the Indian market with new products, few people would have given Telco much of a
chance with an indigenously-developed car. Especially since Telco did not boast a great
reputation for developing even world-class commercial vehicles, forget passenger cars.
When the Indica hit the market, the consensus opinion was that Telco had goofed up again.
It had got its car and engine developed abroad - but all that was marred by the production
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quality of the cars when they rolled out of the Telco plant in Pune. The Indica was riddled
with quality problems. A year down the line, almost everyone grudgingly admits that the
Indica has been a success. The Telco formula of pushing the biggest small car with a
rugged diesel engine has been a major hit in the semi-urban and rural markets.
Rajesv Dube, general manager, commercial (passenger cars), Telco, points out the
company's biggest advantage: low costs, fin other words, Telco can recover the costs of
introducing a new car at a much lower volume of sales than its rivals can. But the flip side
is that all global giants can amortise the costs of development by selling the same car
across different world markets, Telco can't.
At the moment though, the Telco strategy is to tap the niches first. The Indica, with the
diesel engines being pushed hard, was clearly aimed at a segment none of the rivals was
addressing. Similarly, the new car Magna it is planning to launch is again expected to be
a niche car addressing a particular need \n the Rs 12-16 lakh car segment. And in the SUV
market, Telco has already introduced the premium Safari, which again focuses on a
small niche.
It is a smart strategy as it avoids taking any of the big guns head on. But in the long run,
Telco knows it has to take on its rivals in the mainstream markets as well. It is ramping up
capacity to 160,000 from the current 120,000 cars anticipating that it will get the demand.
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But Telco is also the weakest player in the small car market - and unless it keeps
springing surprises,it could be the first casualty in this round of the car battles.
FIAT INDIA LTD:
Fiat the Auto Titan was established in 1899 by Giovanni Agnelli. The company first set
its foot on the Indian Turf in the year 1905, with the appointment of Mumbay Motor Cars
Agency as its Sales Agent. The relationship with India was further strengthened when it
signed a licence and servicing contract with Premier Automobiles Limited (PAL), paving
the way for manufacturing and selling of 1100 and 1100D Fiat, Padmini, Uno and the
latest offering being the cars from the project "178 World Car" range which includes
Siena, Siena Weekend and the Palio.
The company’s pivotal interest remains automobiles. It has the most admired and sought
after models worldwide to boast of which includes Fiat Lancia, Ferrari, Maserati, Alfa
Romeo etc., Siena being the latest offering to the Indian consumers.
Fiat is the only automobile manufacturer to have won the most coveted "EUROPEAN
CAR OF THE YEAR" award for a record nine times, more than any other car
manufacturer. These awards have not made the group complacent as it strives to achieve
the best in all aspects, which include the people, environment, technology and energy.
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This is seen in the company’s endure towards Environmental issues and co-operation
with all environmental organizations.
Fiat has ambitious plans for making India its operational hub and plans to invest one
billion US dollars in the coming years.
Later the company introduced the Uno — Europe’s favourite car for the last two decades
into India. The Fiat 178 World Car Project has been developed specifically to expand
production in overseas markets. This project includes international-class cars like the
Siena sedan, the Siena Weekend station wagon and the Palio hatchback.
Fiat has achieved a high level of localization for all its cars, and is making world-class
cars available in India at even more competitive and affordable prices. Fiat Automobiles
SpA owns the most-admired and sought-after models worldwide, including the Fiat
Lancia, the Ferrari, the Maserati and the Alfa Romeo.
Fiat is the only automobile manufacturer in the world that has won the coveted European
Car of the Year award nine times. It is also the only company in the world that
manufacturers recyclable cars.
In the pipeline are ambitious plans to make India its operational hub in Asia in the future
and invest US $1 billion here in the coming years.
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BELLAD MOTORS (P) LTD.
BELLAD MOTORS (P) Ltd is a multi franchise automobile dealership based at Hubli
servicing the North Karnataka. The Bellad Group with a standing of more than three
decades in Automobile industry established their prestigious Maruti Dealership in the
year 2006.
Ideally located on Hubli Dharwad highway the dealership can boast of a spacious 4000 sq
ft. and well lit showroom with ample frontage. The showroom has the complete range of
cars for display and test drive and professional and trained sales staff always eager to
serve and delight our value customers.
The service center with an area of 6000 sq ft has two post lifts, pneumatic tools,
computerized wheel alignment and wheel balancing machines and a most modern paint
booth which can handle any make of car. The service personnel highly trained and
professional with up to date knowledge owing to the groups policy of implementing
continuous learning programs. A 24 hours emergency road service attached to the service
division is always on call and is a confidence booster to our customer.
The parts center in an area of 2000 sq ft is well stocked and has a wide range of
accessories to suit the varying needs of our customers.
The dealership with its professional management looks forward to their growth by
focusing on customer centric and value added offers to their customers. Bellad Motors
(P) Ltd with their network of branches at Bagalkot and Karwar are striving hard to satisfy
their customers.
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ORGANIZATION CHART
Belgaum Institute Of Management Studies (MBA) Belgaum.