Final Maruti Udyog Limited Edited Version

8/6/2019 Final Maruti Udyog Limited Edited Version

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GURU GOBIND SINGH INDRAPRASTHA UNIVERSITYNEW DELHI

PROJECT REPORT

ON

STUDY OF MARKETING STRATEGIES

OF

MARUTI UDYOG LIMTED

SUBMITTED TO: SUBMITTED BY:

Ms. Monika Bhatia Aman Sachan

Semester VI

BBA-0451061708


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C E

I

I C A

E

This is ce ify that th e Proj ec t Rep ort / Di sse rtation ( BB -310) entitl ed

STUDY OF MA K TING STRATEGIES OF M ARUTI UDYOG LIMITED don e by

Aman Sachan , enrollm ent no. 0451061708 , is com p le t ed un de r my gui dan ce .

Signatur e of th e Guide

(Ms. Mo nika Bhatia)

Date:


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A CKNOWL E E E NT S

I owe my since re thank s an d gratitu de to M s. Monika Bhatia

who in sp ired m e by h er abl e guidan ce an d wa s a con stant gui ding light during th e

cour se of proj ec t stu dy.

The su pp ort an d knowl ed ge p rovi ded by h e r ha s b ee n a gr eat valu e add ition

for m e an d will go a long way in buil ding a p romi sing car ee r.

Last but not l east, I am al so thankful to all th e resp on de nt s of my surv ey without

whom th e proj ec t woul d not hav e bee n com ple ted success fully .

(M s . Monika Bhatia ) (Aman Sa chan )


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I ND EX

y INTRODUCTION OF THE COMP ANY 5

y W HY MARUTI SUZUKI 9

y M ARUTI CULTURE 17

y RESEARCH METHODO LOGY 19

y FINDINGS ABOUT THE COMP ANY 21

y FINDINGS FROM THE SUR VEY 37

y ANALYSIS OF THE FINDINGS 54

y LIMITATIONS 56

y CONCLUSIO N 57

y BIBILIOGRAPHY 60

y Q UESTIONNAIRE 61


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I NTRODUCT I ON OF TH E CO M AP A NY

MARUTI UDYOG LIMITED

Maruti i s India' s larg es t automobil e com pany. Th e com pany, a joint v entur e with

Suzuki of Ja pan, ha s bee n a success story lik e no oth er in th e annal s of th e Indian

automobil e industry.

Today, Maruti i s India' s larg es t automobil e com pany. Thi s f eat wa s achieved by th e

miss ionary z eal of our em ployees acro ss th e line an d th e far -sight ed vision of our

manag em ent.

The Company M iss ion:

To provi de a wi de rang e of mo de rn, high quality fu e l ef ficient v ehicles in or de r to

m ee t th e need of diff erent custom ers, both in dom es tic an d exp ort mark e ts.

The Company Vision:

We mu st b e an int ernationally com pe titiv e com pany in t erm s of our pro ducts an d

se rvices . W e mu st r e tain our l eade rship in India an d shoul d also a sp ire to b e among

th e global play ers.

Their fo cus is o n:

y Building a continuou sly improving organi sation a daptabl e to qui ck chang es

y Provi ding valu e an d sati sfa ction to th e custom er

y Aligning an d fully involving all our employ ees , supp liers an d de alers to fa ce

com pe tition

y Ma ximising Shar ehol de r's valu e

y Being a r esp on sible cor porat e citizen

At Maruti, th ey hav e a clear pe rspec tive on man pow er. Th ey see it a s a uniqu e

resour ce , in th e se nse that o p timal pro ductivity of oth er res our ces depe n ds larg e ly

on th e way human r es our ces ar e utili sed . The ba sic philo sophy of manag em ent


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that un de rlies th e Maruti cultur e is that all employ ees of th e com pany shoul d be

moul ded into a t eam whi ch th en striv es as on e , to a chieve commonly shar ed

com pany goal s an d obj ec tives . To mak e thi s philo sophy t enabl e , th e Com pany

tak es se veral initiativ es . Input s ar e sought from employees at all l eve ls. They

be lieve that everyon e shoul d contribut e to th e formulation of com pany policies ,goal s an d obj ec tives . Secon dly, at Maruti, th ey encourag e leade rship in th e bes t

se nse of th e wor d. Accor ding to u s, a leade r is on e who mu st b e im partial, mu st

hav e th e ability to ri se abov e his own subj ec tivity, an d , mo st im portantly, mu st

pra ctice what h e preaches .

They un de rstan d that th e pro cess of creating a se nse of b e longing that all

employees can i de ntify with i s a lengthy on e . To ensur e that thi s tran slat es into

con cre te reality, th ey hav e tak en se veral simple but spec ific an d we ll thought out

m easur es . The first step in thi s direc tion ha s bee n th e intro duction of a common

uniform for all employ ees . Anoth er m easur e is th e creation of a common cant ee n

wh ere all employees hav e lun ch, stan d in common qu eues , an d sit on th e sam e

tabl e . Common toil e ts, common tran sport an d similar fa cilities for all l eve ls of

employees ar e oth er m easur es that r e infor ce th e ir empha sis on g enuin e equality in

th e work place .

At Maruti Th ey do not b e lieve in th e notion of organi sational hi erar chies . As a

matt er of fa ct, th e manag ement stru ctur e an d systems in Maruti hav e bee n

des ign ed to promot e dece ntrali sation of authority. Maruti ha s a horizontal

manag em ent stru ctur e with only four fun ctional l eve ls of r esp on sibility to fa cilitat e

qui cker dec ision making.

Anoth er fo cus ar ea of th e Maruti cultur e is th e ma int enan ce of a smoothly

fun ctioning communi cation n e twork. Maruti b e lieves that communi cation chann e ls

be tw ee n labour an d manag em ent cannot sim ply con sist of having a labour

rep rese ntativ e on th e Boar d of th e Com pany. Th ey hav e faith in th e ability of

labour to eff ec tive ly parti cipat e in manag em ent an d mak e con stru ctive

sugg es tion s. To encourag e thi s, th ey ensur e that th ere is a thorough disse mination

of information at all l eve ls, through n ewsle tt ers or via a l e tt er from th e Chief

Executiv e to all employees . Mee ting s with th e Union ar e he ld regularly, an d


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programm es be ing cont emplat ed by th e Com pany ar e discussed with th e Union.

The Sahyog Samiti, a collec tion of r ep rese ntativ es of non -unioni sed employees ,

training programm es in Japan, Quality Cir cles , pro du ctivity -linked incentiv e

schem es , an d an e tho s of discipline an d teamwork, all contribut e to th e Maruti

cultur e .

Several m easur es of pe rforman ce hav e ma de am ply clear that Maruti ha s

es tabli shed a truly h ealthy work cultur e . They hav e m e t all proj ec t an d

pe rforman ce targ e ts since incep tion. Th e ir pro ductivity l eve ls ar e con stantly

improving. Th e Com pany ha s ha d goo d labour r e lation s with em ployees from th e

very b eginning, an d th ey hav e bee n success ful in th e exp ort mark e t. Ye t, th e

Maruti cultur e is on e that does not b e lieve in r es ting on it s laur e ls. They adhere to

th e sp irit of Kaiz en, whi ch stat es that con stant im prov em ent i s alway s poss ible . The

mo st ba sic tene t of pro ductivity that th ey hol d de ar i s that " To day shoul d be be tt er

than Y es terday an d Tomorrow shoul d be be tt er than To day".

Maruti U dyog Limit ed (MUL) wa s es tabli shed in Feb 1981 through an A ct of

Parliam ent, to m ee t th e growing de man d of a pe rsonal mo de of tran sport cau sed

by th e lack of an efficient publi c tran sport system.

Suzuki Motor Com pany wa s cho se n from se ven pro spec tive partn ers worl dwide .

This wa s due not only to th e ir un disput ed leade rship in small car s but al so to th e ircommitm ent to a ctive ly bring to MUL cont em porary t echnology an d Japan ese

manag em ent pra ctices (whi ch ha d cata pult ed Japan ov er USA to th e statu s of th e

to p auto manufa cturing country in th e worl d).

A licence an d a Joint Ventur e agr ee m ent w ere signed be tw ee n Gov ernm ent of

India an d Suzuki Motor Com pany (now Suzuki Motor Cor poration of Ja pan ) in Oct

1982 .

The obj ec tives of MUL th en w ere:

y Mo de rnization of th e Indian Automobil e Industry.

y Pro duction of fu e l-efficient v ehicles to con se rve scar ce resour ces .

y Pro duction of larg e numb er of motor v ehicles , whi ch wa s necess ary for

economi c growth.


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Core Value

y Custom er Ob sess ion

y Fast, Flexible an d First Mov er

y Innovation an d Creativity

y N e tworking an d Partn ership

y Ope nn ess an d Learning

Vision

The leade r in th e India Automobil e Industry, Cr eating Cu stom er De light an d

Shar ehol de r s Wealth; A pride of India

Techn o log ical Advanta ge

They hav e intro duced th e supe rior 16 * 4 Hype rt ech engin es acro ss th e entir e

Maruti Suzuki rang e . This new t echnology harn esses th e pow er of a brainy 16-bit

com put er to a fu e l-e fficient 4-valve engin e to creat e optimum engin e de livery. Thi s

m ean s every Maruti Suzuki own er ge ts th e ide al combination of pow er an d

pe rforman ce from hi s car.

Our oth er innovation ha s bee n th e intro duction of El ec troni c Pow er Stee ring (EP S) in se lec t mo de ls. This result s in b e tt er an d great er man euv erability. In oth er wor ds ,

our car s hav e becom e even mor e pleasurabl e to drive .

Producti on/ R&D

Spread over a sp rawling 297 acres with 3 fully -int egrat ed pro duction fa cilities , th e

Maruti U dyog Plant ha s alr eady rolled out ov er 4.3 million v ehicles . In fa ct, on an

averag e , two v ehicles roll out of th e fa ctory every minut e . And it tak es on an

averag e , ju st 14 hour s to mak e a car. Mor e importantly, with an in cred ible rang e of

11 mo de ls availabl e in 50 variant s, th ere 's a Maruti Suzuki ma de here to fit every

car -buy er' s bu dge t & dream.


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WHY M A RU T I S UZUK I

The Q uality Advanta ge

A car i s an engin ee ring p ro du ct, only a s goo d as th e t ec hnology u sed to mak e

it. Actual u se rs of our t ec hnology ar e saying som e thing v e ry clearly Maruti

Suzuki i s N o. 1 in quality :

Maruti Suzuki own ers expe rience f ewer probl em s with th e ir vehicles than any

oth er can manufa ctur er in In dia (J.D. Pow er IQ S Stu dy 2008) . The Alto wa s cho se n

N o. 1 in th e premium com pact car segm ent an d th e Estee m in th e entry l eve l mid-

size car se gm ent a cro ss 9 param e ters.

The J.D. Pow e r APEAL Stu dy 2008 p ro claim ed th e Wagon R. N o. 1 in th e

p remium com pa ct car se gm ent an d th e Es t ee m N o. 1 in th e entry l eve l mi d -

s ize car se gm ent. Thi s stu dy m e asur es own e r de light in t e rm s of des ign,

cont ent, layout an d pe rforman ce of v ehi cles a cro ss 8 p aram e t e rs .

Maruti Suzuki ha s a sal es n e twork of 307 s tat e - of -th e- art showroom s a cro ss

189 cit ies *, with a workfor ce of ov e r 6000 train ed sal es pe r sonn e l to gui de

our cu stom e rs in fin d ing th e right car. Our high sal es an d cu s tom e r car e

s tan dar ds led u s to a chi eve th e N o. 1 nam ep lat e in th e J.D. Pow e r SSI s tu dy

2008 . Th e SSI s tu dy m e asur es sal es sati sfa ction a cro ss 6 p aram e t e r s: de al

rece ived pape rwork, de al e r fa cility, sal espe rson, an d de live ry timing an d

de live ry p ro cess . Maruti Suzuki ha s not only got th e N o. 1 nam ep lat e in th e

J.D. Pow e r SSI stu dy 2008 , but al so rank ed way abov e th e in du s try av e rag e

(Maruti Suzuki wa s at 784 whil e in du stry av e rag e wa s at 760) . What i s

s ignificant i s that it wa s rank ed abov e Sko da, For d , Ch evrol e t, Mit subi shi an d

Hyun dai.

To b e re ally ha pp y with th e car you own, it shoul d hav e a r e liabl e se rv ice

n e twork at han d an d within easy re a ch. Th e ir 1036 city strong se rvice

n e twork i s equi pped to se rvice 20 ,000 vehi cles a day. N o won de r Maruti

Suzuki ha s b ee n awar ded th e N o. 1 nam ep lat e in cu s tom e r sati sfa ction in


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In dia for th e fifth y e ar in a row, a f e at un p recede nt ed for any automobil e

mark e t leade r in th e worl d .

In th e J.D. Pow e r CSI stu dy 2008 , Maruti Suzuki scor ed th e high es t a cro ss all

7 param e t e rs: leas t p robl em s expe ri en ced with v ehi cle se rviced , high es t

se rv ice quality, b es t in -se rv ice expe ri en ce , b es t se rvice de live ry, b es t in -

se rv ice expe ri en ce , mo s t u se r -fr ien d ly se rvice an d b es t se rvice initiation

expe ri en ce .

In fa ct, 92% of Maruti Suzuki own ers f ee l that work g e ts don e right th e first tim e

during se rvice . The J.D. Pow er CSI stu dy 2008 also r eveals that 97% of Maruti

Suzuki own ers woul d probabl e recomm end th e sam e mak e of v ehicle , whil e 90%

own ers woul d probabl e rep ur cha se th e sam e mak e of v ehicle .

A Buyin g Experience Like No O ther

Maruti Suzuki ha s a sales ne twork of 307 stat e-of -th e-art showroom s acro ss 189

cities , with a workfor ce of ov er 6000 train ed sales pe rsonn e l to gui de our

custom ers in fin ding th e right car. Our high sales an d custom er car e stan dar ds led

us to a chieve th e N o. 1 nam ep lat e in th e J.D. Pow er SSI Stu dy 2008 .

Q uality Service Across 1036 Citie s

In th e J.D. Pow er CSI Stu dy 2008 , Maruti Suzuki scor ed th e high es t a cro ss all 7

param e ters: least probl ems expe rienced with v ehicle se rviced , high es t se rvice

quality, b es t in -se rvice expe rience , bes t se rvice de livery, b es t se rvice advisor

expe rience , mo st u se r -friendly se rvice an d bes t se rvice initiation expe rience .

92% of Maruti Suzuki own ers f ee l that work g e ts don e right th e first tim e during

se rvice . The J.D. Pow er CSI stu dy 2008 also r eveals that 97% of Maruti Suzuki

own ers woul d probably r ec omm end th e sam e mak e of v ehicle , whil e 90% own ers

woul d probably r ep ur cha se th e sam e mak e of v ehicle .

One Stop Shop

At Maruti Suzuki, you will fin d all your car r e lat ed needs m e t un de r on e roof.

Wh e th er it is easy finan ce , insuran ce , flee t manag em ent se rvices , exchang e - Maruti

Suzuki i s se t to provi de a single-win dow solution for all your car r e lat ed needs .


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The Low Cos t M aintenance Advanta ge

The a cqui s ition co s t i s unfortunat e ly not th e only co st you fa ce wh en buying

a car. Although a car may b e affor dabl e to buy, it may not n ecess arily b e

affor dabl e to maintain, a s som e of it s regularly u sed sp ar e p art s may b e

p ri ced quit e s t eep ly . N ot so in th e case o f a Maruti Suzuki. It i s in th e

ec onomy se gm ent that th e affor dability of sp ar es is mo s t com pe titiv e , an d it

is h e re wh e re Maruti Suzuki shin es . The rece nt Auto car Surv e y con du ct ed in

Augu s t 2008 b e ar s t es timony to thi s fa ct. In th e Maruti Suzuki s tabl e , th e

Omni ha s th e low es t aggr egat e co s t of sp ar es follow ed by th e Maruti -800 .

The Maruti -800 ha s th e ch eapes t sp ar es of any In d ian car with a ba ske t of

ju s t Rs. 23 ,422 . In th e Lowe r Mi d -s ize se gm ent a s we ll , p rice-c on sc iou sn ess is

ve ry high, wh e r e th e car s hav e to b e not only affor dabl e on pur cha se p ri ce

but al so n eed to combin e quality, d rivability an d hav e comfortabl e int e rior s.

In thi s se gm ent, th e Maruti Suzuki Ve rsa ha s scor ed parti cularly w e ll with th e

low es t co s t of sp ar es in th e se gm ent. In th e Uppe r Mi d-s ize se gm ent, th e

Maruti Suzuki Bal eno ha s th e se gm ent' s low es t p ri ces on a majority of th e

sp ar es .

Low est Cos t of Ow ner ship

To b e r eally ha pp y with th e car on e own s , it shoul d b e easy on th e po cke t to

buy an d to run -whi ch i s why th e co st of own e rshi p is so im portant. An d h e re

again, a Maruti Suzuki i s a clear winn e r, a s shown by th e rece nt J.D.Pow e r CSI

s tu dy 2008 . It is cle ar that a Maruti Suzuki de light s you e ven wh en you run it

for y e ar s. The 6 high es t sati sfa ction rating s with r egar d to co s t of own e rshi p

among all mo de ls ar e all Maruti Suzuki v e hi cles: Zen, Wagon R, E s t ee m,

Maruti 800 , Alto an d Omni. Th e y ar e p rou d to hav e t h e low es t co s t of

o pe ration / km (among pe trol v ehi cles) - th e to p 5 mo de ls ar e all Maruti

Suzuki mo de ls: Maruti 800 , Alto, Zen, Omni an d Wagon R.


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Empl o yee Q uality M ea sure s

Kaizen is ba sed on th e con cep t of making in crem ental im prov em ent s in our

pro duct s. It in cor porat es a se ries of continuou s small an d simple improv em ent s,

whi ch aim at involving employees at all l eve ls.

The Sugg es tion Schem e is ba sed on th e sam e prin ciple . Unde r thi s schem e ,

employees ar e encourag ed to mak e sugg es tion s for im prov em ent in any ar ea of

our o pe ration. Ov er 50,000 sugg es tion s ar e rece ived from employees every year.

Maruti ha s won th e First place in "Excellence in Sugges tion Scheme Conte st 2007 " ,

whi ch is th e 6th con sec utiv e awar d won in a s many y ear s. This cont es t is organiz ed

by Indian National Suggestion Schemes Association (IN SSAN ). Since 1998 Maruti

ha s won thi s awar d 10 tim es .

"Quality Cir cles " ar e grou ps of five to e ight m emb ers from a parti cular work ar ea

who work a s a t eam to i de ntify prioriti es an d solve work r e lat ed probl em s in th e

ar ea.

We be lieve that it i s thi s unwav ering commitm ent to quality that will l ead to th e

furth er growth of th e organization a s com pe tition in creases .

ISO 9001: 2000

At Maruti, our a pp roa ch to quality i s in keep ing with th e Japan ese pra ct ice-- "buil d

it into th e product". Techni cian s th emse lves inspec t th e quality of work.

Supe rvisor s ed ucat e an d instru ct t echni cian s to continually im prov e pro ductivity

an d quality. Th e mov em ent of quality in dicator s is reviewed in w ee kly m ee ting s by

th e to p manag em ent.

In 2001, Maruti Udy og Ltd b ecame one of the f irst aut o m ob ile co mpanie s

any where in the wo rld to g et an ISO 9 000: 2000 certi f icati on . AV Belgium, global

au ditor s for Int ernational Organization for Stan dar disation(I SO), ce rtified Maruti

aft er a four day long au dit, cov ering vari ed param e ters like Custom er Focussed

organi sation, L eade rship, Involv em ent of pe ople , Pro cess app roa ch, System

app roa ch to Manag ement, Continual im prov em ent, e tc.


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In May 199 5, Maruti go t ISO 9 002 certi f icati on . The au dit for thi s covered quality

assuran ce in pro duction, in stallation, mark e ting an d sales as we ll as aft er sales

se rvices . W e were also on e of th e first com pani es in th e worl d to pion ee r ISO 9000

ce rtifi cation for our de alers.

In Oct ob er 1993 , MU L pa ss ed the Confo rmity of P roducti on (COP) Audit, which is

b ased on a Eur o pean Union Directive . This auth enti cat ed our quality systems an d

tes ting fa cilities for exp ort to Euro pe .

The ir empha sis on total quality ha s m eant that to day th ey ar e in a position to gui de

vendor s an d de alers in es tabli shing an d con solidating th e ir individual quality

system s. This commitm ent to quality ha s ensur ed a con sistently sati sfying pro duct

an d worl d-c lass sales an d aft er-sales se rvices .

TS16949:2002 - A new f eath er wa s added rece ntly in Maruti s cap in th e fie ld of

quality wh en th e Quality Manag em ent System of it s Press Sho p & associat ed

fun ction s (collec tive ly term ed as Press Fun ction ) got ce rtification for conforman ce

to th e requir em ent s of TS16949:2002 stan dar d.

As a part of Quality system r equir em ent s, GM r equir es all it s supp liers to b e

ce rtified to e ith er ISO TS 16949 or Q S 9000 .

These stan dar ds add ress Quality System r equir em ent s, whi ch ar e parti cularly

spec ific to th e automotiv e industry an d requir es an organization t o b e in

com plian ce with I SO 9000 system s as a ba sic requir em ent. How ever, wh ereas Q S

9000 woul d becom e de fun ct an d cease to exist aft er Dec 2010 , TS 16949 is going to

be th e stan dar d of th e futur e .

The TS 16949 stan dar d, brought out by I SO in th e year 1999 , is an extension of th e

ISO 9001:2000 stan dar d that presc rib es Quality manag em ent system r equir em ent s

that ar e spec ifically a pp licabl e to th e automotiv e industry.

TS 16949 ha s gain ed high popularity an d almo st all major automobil e players

acro ss th e glob e including GM, For d , Daiml er Chry sler, N issan, Hon da ar e

embra cing & promoting it.


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T A RG E T M A RK E T I NG

Tar get Marketin g involv es br eaking a mark e t into segm ent s an d th en

con ce ntrating your mark e ting effort s on on e or a f ew k ey se gm ent s.

The beauty of targ e t mark e ting i s that it mak es th e promotion, pricing an d distribution of your pro ducts an d/or se rvices easier an d mor e cost -e ff ec tive . Targ e t

mark e ting i s th e se lec tion of custom ers you wi sh to se rvice . The dec ision s involv ed

in it ar e:

y Which se gm ent s to targ e t

y How many pro ducts to off er

y Which pro ducts to off er in whi ch se gm ent s

There ar e thr ee steps to targ e ting :

y Mark e t se gm entation

y Targ e t choi ce

y Pro duct positioning

One of th e first thing s you n eed to do is to r efine your pro duct or se rvice so that

you ar e N OT trying to b e 'all thing s to all pe ople .

N ex t, you n eed to un de rstan d that pe ople pur cha se pro ducts or se rvices for thr ee

ba sic reason s:

y To sati sfy ba s ic n eeds .

y To solv e p robl em s.

y To mak e th e m se lves f ee l goo d .

The nex t step in creating an eff ec tive mark e ting strat egy is to z ero in on your targ e t

mark e t.

Targ e t mark e ting i s on e of cor porat e America' s mo st eff ec tive bu siness strat egies .

The ide a is to in crease sales by fir st ide ntifying, an d th en targ e ting small er, y e t

mor e profitabl e custom er grou ps within th e total mark e t.


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Four W ay s to Identi f y Tar get M arket s

1. Ge og raphic: The lo cation, size of th e ar e a, de n sity, an d climat e zon e

of your cu s tom e rs.

2. Dem og raphic s : The ag e , gen de r, in com e , family com po sition an d size ,

o ccu pation, an d ed u cation of your cu stom e r s.

3. Ps ych og raphic s : The gene ral pe rsonality, b e havior, lif e-s tyl e , rat e of

u se , repe tition of n eed , b en e fi t s sought, an d loyalty chara ct e ri sti cs of

your cu s tom e rs.

4. Behavi o rs : The n eeds th ey see k to fulfill th e leve l of knowl ed ge ,

information sour ces , attitu de , u se or r esp on se to a p ro du ct of your

cu stom e rs .

One of th e bes t way s to i de ntify your targ e t mark e t is to look at your existing

custom er ba se . Who ar e your i de al client s? What do th ey hav e in common ? If you

do not hav e an existing custom er ba se , or if you ar e targ e ting a com ple te ly new

au dience , spec ulat e on who th ey might b e , ba sed on th e ir n eeds an d th e benefits

th ey will rece ive . Inves tigat e com pe titor s or similar bu sinesses in oth er mark e ts to

gain in sight.

TARGET MARKETING

y Who ar e your b es t custom ers? Wh ere shoul d you direc t your mark e ting

activiti es?

y Wh ere an d how shoul d you allo cat e your a dverti sing an d promotional

effort s?

Targ e t Mark e ting, p rovi des Fo cu s for your bu s in ess . It h e lps to es tabli sh

criti cal O pe rational goal s an d de fines what mu s t b e don e to a chi eve th em

W hat Cu sto mer s W ant

y Mark e ting i s mor e than an a ctivity, it i s an attitu de


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y In st ead of trying to g e t cu stom e rs to buy what th e firm lik es to mak e ,

or ha ppe n s to hav e on han d , th e mark e ting ori ent ed firm tri es to

p ro du ce or se ll w hat its customers w an t w hich can be sold at a pro fit.

y Do not simply throw out everything that you now hav e an d rep la ce goo ds or

pro duction ma chin ery with com ple te ly new it em s. y HOW EVER, AS YOU ANALYZE YOUR MARKET AND CUSTOMER PROFI LES,

AND SO GAIN AN UNDERSTANDING OF THEIR W ANTS, DESIRES, AND

PERCEIVED NEEDS, YOU CAN BEGIN TO REORIENT YOUR BUSINESS OVER

TIME TO TAKE BEST ADVANTAGE OF THESE NEW INSIGHTS. CONSIDER

BOTH THE SHORT TERM AND LONG-TERM IMP LICATIONS OF DEVELOPING

AND IMP LEMENTING THE RIGHT TARGET MARKETING STRATEGY FOR

YOUR BUSINESS.

Cus to mer Attitude s

y For a long tim e , pe ople hav e be lieved that a dverti sing can b e used to

chang e pe ople 's min ds about what th ey want. Thi s is an in cred ibly difficult

pro cess at b es t, an d an ex tr em e ly expe nsive on e . Becau se of th ese two

factor s, it is a pro cess that small er firm s simply cannot affor d to pur sue .

Instead , it is mu ch mor e pro ductive for any size firm to tun e in to targ e t

custom er attitu des as th ey curr ently exist. On ce th ey hav e ide ntifi ed th e

actual prevailing attitu des , th ey can b egin to organiz e com pany r es our ces

needed to cons tructively addre ss and sati sf y the se attitude s the key

que stio n is,

" W hat are the e xis tin g cu s t o mer attitude s?"

With thi s as an obj ec tiv e , de ve lo p ing an un de rs tan d ing of ex isting cu stom e r

attitu des b ec om es esse ntial, an d th e ir ide ntifi cation b ec om es an im portant

part of th e mark e ting p ro cess . On ce th ese cu s tom e r attitu des , n eeds or

p re f e r en ces ar e ide ntifi ed , th e entir e firm can th en organiz e it se lf to sati sfy

th ese n eeds a s com p le t e ly an d e fficiently a s p o ss ible .


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M A RU T I CULTUR E

The ir employees ar e th e ir gr eat es t str ength an d asse t. It i s thi s un de rlying

philo sophy that ha s moul ded th e ir workfor ce into a t eam with common goal s an d

obj ec tives . The ir Employee- Manag em ent r e lation ship is th erefor e chara cterized by :

y Parti cipativ e Manag em ent.

y Team work & Kaiz en.

y Communi cation an d information sharing.

y Ope n offi ce cultur e for easy a ccess ibility

To im plem ent thi s philo sophy, th ey hav e tak en se veral m easur es like a flat

organizational stru ctur e . There ar e only thr ee leve ls of r esp on sibilities ranging from

th e Boar d of Direc tor s, Division H eads to D ep artm ent H eads . Oth er visible f eatur es

of thi s philo sophy ar e an o pe n offi ce , common uniform s (at all l eve ls), an d a

common cant ee n for all.

This stru ctur e ensur es be tt er communi cation an d speed y dec ision making

pro cesses . It al so creat es an environm ent that buil ds tru st, tran spar ency an d a

se nse of b e longing among st employees .

Fo r Inve sto rs:

Maruti U dyog Limit ed , a sub sidiary of Suzuki Motor Cor poration of Ja pan, ha s bee n

th e leade r of th e Indian car mark e t for about two dec ades . It s manufa cturing plant,

locat ed som e 25 km south of N ew De lhi in Gurgaon, ha s an in stall ed capacity of

3,50 ,000 unit s pe r annum, with a capability to pro duce about h alf a million

vehicles .

The com pany ha s a portfolio of 11 bran ds , including Maruti 800 , Omni, premium

small car Zen, int ernational bran ds Alto an d WagonR, off -roa de r Gypsy, mi d size

Estee m, lu xury car Baleno, th e MPV, Ve rsa, Swift an d Luxury SUV Gran d Vita ra XL7.

In r ece nt y ear s, Maruti ha s ma de major stri des towar ds its goal of b ecoming Suzuki

Motor Cor poration' s R and D hub for A sia. It ha s intro duced upgra ded version s of

WagonR Z en an d Estee m, com ple te ly des ign ed an d styled in -hou se .


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Maruti' s contribution a s th e engin e of growth of th e Indian auto in dustry, in deed

its impact on th e lif es tyle an d psyche of an entir e generation of In dian mi dd le class ,

is wide ly a cknowl ed ged . Its emotional conn ec t with th e custom er continu es .

Maruti to ps custom er sati sfa ction again for sixth y ear in a row a ccor ding to th e J.D.

Pow er Asia Pa cific 2009 India Custom er Sati sfa ction In dex (CSI) Stu dy.

The com pany ha s also rank ed high es t in In dia Sales Sati sfa ction Stu dy.

The com pany' s quality system s an d pra ctices hav e bee n rat ed as a "b enchmark for

th e automotiv e industry worl d- wide " by A V Belgium, global au ditor s for

Int ernational Organi sation for Stan dar disation.

In keep ing with it s leade rship position, Maruti supp ort s saf e driving an d traffi c

manag em ent through ma ss m ed ia m ess ag es an d a stat e-of -th e art driving training

an d rese ar ch in stitut e that it manag es for th e De lhi Gov ernm ent.

The com pany' s se rvice bu sinesses including sale an d pur cha se of pre own ed car s

(Tru eValu e) , lease an d flee t manag em ent se rvice for cor porat es (N 2N ), Maruti

Insuran ce an d Maruti Finan ce ar e now fully o pe rational. Th ese initiativ es , bes ides

providing total mobility solution s to custom ers in a conv enient an d tran spar ent

mann er, hav e he lped improv e economi c viability of Th e Com pany s de alerships .

The com pany i s listed on Bombay Sto ck Exchang e an d N ational Sto ck Exchang e .

MUL is a Boar d- manag ed com pany. Curr ently th e direc tor s on th e Boar d ar e:

y Mr Shinzo N akani shi, Chairman

y Mr Jag dish Khattar, Managing Dir ec tor

y Mr Hirofumi N agao, Joint Managing Dir ec tor

y Mr Shini chi Tak euchi, Joint Managing Dir ec tor

y Mr Kinji Saito, Dir ec tor (Mark e ting an d Sales)

y Mr O samu Suzuki, Dir ec tor

y Mr R C Bhargava, Dir ec tor

y Mr S V Bhav e , Direc tor


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R ESEA RCH M E THODOLOGY

OBJECTIVES OF THE STUDY

PRIM ARY OBJECTIVE:

y To know about th e Mark e ting Strat egies of Maruti U dyog Limit ed

y To know about th e Co s Core Valu es , Vision & it s Technologi cal Advantag e

SECONDARY OBJECTIVE:

y

To know about th e bu siness strat egies of th e com pany, th e ir sales ne twork

an d th e se lling t echniqu es

y To know about th e strat egies of th e oth er play ers in th e industry

y To fin d out th e ar eas in whi ch th e com pany la cks behin d oth ers

y To fin d out th e ar eas of im provi sation

y To know about th e organization stru ctur e

y To know about th e com pe titiv e str ength s of th e com pany

y To know about th e new bu siness initiativ es


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F I ND I NG S AB OUT T E CO M PA NY

PRICES OF MARUTI PRODUCTS

Car mark e t leade r Maruti U dyog Limit ed ha s announ ced a marginal in crease in

price of ce rtain mo de ls. The increase , whi ch com es into eff ec t , vari es from 0.17

pe rcent to 1.47 pe rcent.

The p ri ce in crea se is due to ri se in in put co st s an d fr e ight co s t s, whi ch

in creased following th e ri se in oil p rices . In thi s pha se , th e com pany ha s

dec ided to pa ss on only a part of th e in cre ase in co s t s to th e cu stom e rs .

The re is no chang e in th e p ri ces of Swift, Z en, Bal eno ( Vxi) an d WagonR(P e trol ).

Ex-Show roo m Price s in Delhi (in Rs) Mo del New Old Increa se Chan ge % M 800 Std 191646 191146 500 0.26% M 800 Std Ac 213062 212562 500 0.24% Alto S td 231585 231085 500 0.22% Alto Lx 265262 264762 500 0.19% Alto Lxi 283878 283378 500 0.18% Omni Car go LPG 194725 192725 2000 1.04%

Omni Car go 213706 213206 500 0.23% Omni (Eight Seater) 221268 220768 500 0.23% Omni LPG 230388 227388 3000 1.32% Esteem Lx 445968 444968 1000 0.22% Esteem Lxi 476223 475223 1000 0.21% Esteem Vxi 511520 510520 1000 0.20% Balen o Lxi 576173 575173 1000 0.17% Ver sa Dx 433575 432575 1000 0.23% Ver sa Dx2 471779 470779 1000 0.21% Ver sa Std 360182 359182 1000 0.28% W ago nR Lx LPG 345106 340106 5000 1.47%

W ago nR Lxi LPG 373160 368160 5000 1.36%


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ORG A N ISA T I ON S TRUCTUR E A T MUL

Maruti U dyog lt d. ha s a flat organi sation stru ctur e with a ma ximum of thr ee leve ls.

Head off ice

MD

MFG FIN OTHER

DIRECTOR N CON TROLLER GM DGMS AGMS

GM/ DGM S DGMS AGMS MGRS/AMS

MGRS/AMS MGRS/AM SR GM/EX

EN GIN EERS (EX) SR. EX. /EX TRAIN EES

J.E. (TRAIN EES)


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THE PRODUCTION PROCESS AT MARUTI

S T EE L CO I L S

B L A NK I NG

P R ESSI NG

W E LD I NG

PAI NT I NG

ASSE M B LY

VE H I CL E I N SPE CT I ON

T ES T RUN

S U PP LY &D ISPA TCH

FROMVE NDOR

FROMVE NDOR

FROMVE NDOR


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CO M PE T I T I VE S TR E NGTH S

MUL be lieves that th ey ar e we ll position ed to maintain an d enhan ce th e ir

leade rship position in th e small car se gm ent in In dia, whil e continuing to off er

pro ducts in mo st se gm ent s of th e Indian mark e t, on a ccount of th e ir com pe titiv e

str ength s, whi ch in clu de th e following :

Experti s e in small car techn o log y: As a sub sidiary of Suzuki, th ey hav e a ccess

to globally r espec t ed t ec hnology in th e small car se gm ent. Th ey hav e th e

advantag e of Suzuki s expe rt i se in all a spec t s of small car t ec hnology an d

des ign, with r espec t to th e ir p ro du ct s , th e ir manufa cturing p ro cesses an d

bu s in ess p ra cti ces , th e de ve lo pm ent of th e ir su pp ly chain an d th e training of

th e ir pe rsonn e l.

Exten s ive pr o duct p o rt fo lio : The ir dive rse p ro du ct rang e in clu des car s in

se gm ent s A, B an d C, an d utility v ehi cles . The y manufa ctur ed five out of th e

t en mo de ls that w e re sol d in th e combin ed A an d B se gm ent s in In d ia in fi scal

2002 . They ar e th e only manufa ctur e r of car s in se gm ent A ( p ri ced b e low

Rs .300 , 000) wh e re th ey hav e two mo de ls , th e Maruti 800 an d th e Omni. Th e

Maruti 800 ha s b ee n th e larg es t se lling car in In dia for se ve ral y ear s, an d

continu ed to hav e th e high es t sal es volum es of any mo de l , with a mark e t

shar e of 25 .3%.

Q uality pr o duct s : In N ov emb e r 2001 , th e y w e re on e of th e firs t automobil e

manufa ctur e r s in th e worl d to r ece ive th e ISO 9001:2000 ce rtifi cation. Th e y

b egan to exp ort p ro du ct s in 1988 , p rimarily in or de r to b en chmark our

p ro du ct s again st int e rnational quality stan dar ds . The y hav e exp or t ed

p ro du ct s to a pp ro ximat e ly 70 countri e s , in clu d ing countri es in W es t e rn

Euro pe . Th e ir p ro du ct s for exp ort ar e manufa ctur ed u s ing th e sam e asse mbly

line as our p ro du ct s for th e dom es ti c mark e t.

Exten s ive sale s and s ervice net wo rk: They b e lieve that th ey hav e th e larg es t

n e twork of de al e rs an d se rv ice ce nt e rs among st car manufa ctur e rs in In dia.

As of Mar ch 31 , 2007 , w e ha d 178 authoriz ed de al e rs with 243 sal es outl e t s


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in 161 cit ies . Th ey es timat e th e ir car p ar c to b e in excess of 3.5 million

vehi cles . To se rv ice thi s car par c, at Mar ch 31 , 2007 , th ey ha d 342 de al e r

work sho ps an d 1 ,545 Maruti Authoriz ed Se rv ice Station s, or MA SSs, whi ch

cov e red 898 cit ies in In dia ba cked by Exp ress Servi ce Cent e rs on 30 highway s

acro ss th e country. In a dd ition to th e d istribution of th e ir car s, th e irde al e rshi p n e twork i s a criti cal r es our ce in our e ffort s to p rovi de cu s tom e r s

with a on e- s to p sho p for automobil es an d automobil e re lat ed p ro du ct s an d

se rv ices su ch a s automobil e finan ce , automobil e in suran ce , Maruti -ce rtifi ed

p re- own ed car s availabl e for pur cha se , a n d le as ing an d flee t manag e m ent, in

or de r to p romot e cu stom e r loyalty.

Brand s tren gth : They hav e b ee n p rese nt in th e In dian mark e t for almo s t

tw enty y ear s an d hav e built th e ir bran d on th e ba sis of th e valu es of tru s t

an d re liability. Mo s t of th e ir p rin ci pal com pe titor s hav e b ee n p rese nt in th e

In dian passe ng e r car mark e t for a significantly short e r pe rio d . Ce rtain

manufa ctur e r s hav e ce ased to manufa ctur e ce rtain p ro du ct s shortly aft e r

intro du cing th em, or hav e le ft th e mark e t altog e th e r. In contra st, th ey

continu e to supp ort th e maint enan ce of th e ir p ro du ct s. This ha s contribut ed

to th e s tr ength of th e ir bran d . In 2000 , 2001 an d 2002 , J. D. Pow e r Asia

Pa cif ic, In c. rank ed u s N o. 1 in th e In d ia Cu stom e r Sati sfa ction In dex , whi ch

assesses cu stom e r sati sfa ction with p ro du ct quality an d de al e r se rv ice . Th ey

b e lieve that thi s wa s th e first tim e that a volum e leade r in th e automobil e

in du s try anywh e r e in th e worl d wa s rank ed fi rst on th e JD Pow e r Cu s tom e r

Sati sfa ction In dex . N FO Automotiv es 2002 Total Cu stom e r Sa ti sfa ction Surv e y

rank ed Maruti p ro du ct s as N o. 1 in th e Economy , Pr emium Com p a ct an d

Entry Mi ds ize se gm ent s r espec tive ly, for 2002 .

Inte grated manu f acturin g f acility: The ir manufa cturing fa cility com p ri ses

thr ee int egrat ed p lant s with fl ex ibl e asse m bly lin es lo cat ed at Gurgaon in th e

north e rn stat e of Haryana. Th e ir fa cility ha s advan ced engin ee ring capability

an d e a ch p lant i s u pgra ded on an ongoing ba sis to im p rov e p ro du ctivity an d

quality. A s a r es ult, th e ir fir s t plant se t u p in fi scal 1984 is t e c hnologi cally at

par with th e ir n ew e r p lant s an d is al so u sed in th e p ro duction of th e ir n ew


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mo de ls. Th ey b e lieve that th ey ar e on e of th e mo s t e fficient among th e

vehi cle manufa cturing fa cilities of Suzuki s sub sid iari es out side Ja pan in

t e rm s of p ro du ctivity m e asur ed as th e ratio of numb e r of v ehi cles p ro du ced

to numb e r of e m p loy ees . Th ey hav e an in s tall ed capa city of 350 ,000 vehi cles

pe r year, whi ch i s th e high es t among pa sse ng e r car manufa ctur e rs in In d iaan d among th e p asse ng e r car manufa cturing fa ci li ties of Suzuki s sub s id iari es

out s ide Ja pan. Th e y hav e con sis t ently p ro du ced in excess of th e ir in stall ed

cap a city in th e five fisc al ye ar s en ded Mar ch 31 , 2002 .

The y b e lieve that th ey woul d b e abl e to exp an d th e ir p ro du ction to 500 ,000

car s pe r year with minimal a dd itional cap ital expe n d itur e . This woul d enabl e

th em to b en e fit from signifi cant ec onomi es of sc al e .

Str o n g vend o r b a s e and hi gher rate s of lo calizati o n : They work clo se ly withth e ir ven dor ba se for th e su pp ly of raw mat e rial s, com pon ent s an d sp ar e

part s of th e ir p ro du ct s. In or de r to im p rov e quality an d gen e rat e ec onomi es

of scal e , th ey hav e red u ced th e numb e r of th e ir ven dor s of com pon ent s in

In dia from 370 as of Mar ch 31 , 2000 to 299 as of Mar ch 31 , 2007 , an d int en d

to continu e to r ed u ce th e numb e r of our v e n dor s . 113 of th e ir ven dor s at

Mar ch 31 , 2007 w e re in t ec hni cal collaboration with for e ign entiti es . As of

th e sam e dat e , w e ha d strat egic equity int e res t s through joint v entur e

agr ee m ent s in 13 of th e ir ven dor s , who tog e th e r su pp ly a sub stantial portion

of th e ir pur cha ses of com pon ent s. The p ro du ction sys t e m s of th e ir ven dor s

ar e gen e rally align ed to th e ir n eed for a r e liabl e an d tim e ly su pp ly of

com pon ent s that m ee t th e ir quality r equir em ent s. This ha s enabl ed th em to

in crease th e p ro portion of lo cally sour ced , low e r co s t com pon ent s in th e ir

mo de ls, a con cep t th ey re f e r to a s lo calisation. Th ey hav e b ee n abl e , in

collaboration with th e ir ven dor s, to in cr e ase th e rat e at whi ch th ey ar e abl e

to lo calise p ro du ction of th e ir n e w mo de ls ov e r tim e . This ha s h e lped th e m

red u ce th e co st of th e ir com pon ent s .


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Cos t com pe titiv en ess ha s b ee n, an d continu es to b e , ce ntral to th e ir strat egy

as th e lead ing manufa ctur e r in th e small car se gm ent to exp an d th e size of

th e mark e t by off e ring com pe titiv e ly p ri ced , high quality p ro du ct s . The

com pon ent s of thi s s trat egy ar e:

y Highe r leve ls of lo calization

y Ve n dor parti cipation in cos t r ed u ction

y Cost r ed u ction on warranti es

y Red u ction in initial inv es tm ent co s t

y Red u ction in numb e r of v ehi cle p latform s

y Achi eve furth e r co s t r ed u ction through high e r p ro du ctivity

Low er cos t of ow ner ship:

Through th e ir bu sin ess s trat egies , th e y see k to r ed u ce th e con sum e r s co st of

own e rshi p of th e ir car s, whi ch com p ri ses th e co s t of pur cha se , th e co s t of

fu e l an d maint enan ce , in clu ding sp ar e part s an d rep air s, during th e lif e of

th e vehi cle , in suran ce , an d res al e valu e .


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SA L ES NE TWORK

De al e rs: They off e r th e ir p ro du ct s to th e cu s tom e r through a n e twork of 178

authoriz ed de al e rs with 243 sal es outl e t s a cro ss 161 cit ies . They b e lieve that

thi s is th e larg es t n e twork of de al e rs among st car manufa ctur e rs in In d ia.

The ir de al e rs em p loyed mor e than 3,500 sal es exec utiv es . Th ey ar e linked to

th e ir sal es n e twork through th e ir sec ur e ex tran e t -ba sed information

n e twork. Th e sal es of th e ir sp ar es , a ccess ori es an d automobil e - re lat ed

se rv ices su ch a s in suran ce an d finan ce se rv e a s add itional sour ces of r eve nu e

for our de al e rs . Th ey b e lieve that th e availability of th ese re lat ed p ro du ct s

an d se rv ices at sal es outl e t s al so h e lps to attra ct cu s tom e rs to th e outl e t s

an d p romot es sal es of th e ir car s.

Agree m ent s with de al e rs : The y gen e rally a pp oint a limit ed numb e r of de al e rs

for a ce rtain g eogra phi cal t e rritory. Th e ir de al e rs p rovi de se rvices to

cu stom e rs su ch a s p re-de live ry in spec tion of v ehi cles , sal es of car s, aft e r

sal es se rv ice , su pp ly of sp ar e part s an d oth e r se rvices that p romot e sal es of

car s within th e t e rritory for whi ch th e y ar e app oint ed . They hav e th e right to

se ll th e ir p ro du ct s an d se rvices through oth e r de al e rs or int e rm ed iari es in

any t e rritory, wh e th e r or not on e of th e ir de al e rs is alr eady es tabli sh ed in

that t e rritory. Th e ir de al e rs ar e requir ed to maintain th e ir outl e t s inaccor d an ce with th e ir spec if ication s an d em p loy w e ll -train ed sal es s taff.

The ir agr ee m ent s with th e ir de al e rs u sually hav e t e rm s of fiv e year s. These

agr ee m ent s ar e gen e rally r en ewabl e for su ccess ive t e rm s of thr ee ye ar s , by

mutual agr ee m ent. Th e agr ee m ent s ty p ically pe rmit t e rmination by e ith e r

th e de al e r or th em with six month s p rior noti ce .

De al e r training : They hav e es tabli sh ed stan dar d o pe rating p ro ced ur es ,

showroom ambi en ce an d se rvice quality stan dar ds for de al e rshi p s . The y

p rovi de pe rio d ic training through th e ir training ce ntr es lo cat ed at th e ir

manufa cturing fa cility an d at Ch ennai, Kolkata, Guwahati an d Pun e . Th ey

hav e train ed mor e than 2,600 an d 3,400 de al e r sal es pe rsonn e l. The ir

sub sid iary, Tru e Valu e Solution s Ltd ., p rovi des valu e-added se rvi ces , su ch a s

man pow e r r ec ruitm ent an d training, to th e ir de al e rs.


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A FT E R- SA L ES SE RV I C E

Net wo rk

As on dat e th e r e ar e 342 Maruti de al e r work sho ps an d 1,545 Maruti

Authori sed Se rvice Station s, or MA SSs, cov e ring 898 cit ies in In d ia. In

add ition, 24- hour mobil e se rvi ce is off e red in 38 cit ies un de r th e bran d

Maruti On -roa d Serv ice . They int en d to ex t e n d thi s se rvice to an a dd itional

25 cit ies ov e r th e n ex t thr ee year s. As a b en chmark for de al e rs with r espec t

to se rv ice quality an d infra stru ctur e fa cilities , th ey hav e laun ch ed se rvice

s tation s un de r th e bran d Maruti Service Ma s t e r s, or M SMs, in thr ee

lo cation s in In d ia. Th e y hav e se rvice s tation s on 30 highway s in In d ia un de r

th e bran d Exp r ess Se rvice Station s .

To p romot e sal es of th e ir sp ar e part s an d th e availability of high quality,

re liabl e sp ar e part s for th e ir p ro du ct s , th ey se ll sp ar es un de r th e bran d nam e

Maruti G enuin e Part s , or MGP. Th ese ar e d istribut ed through th e ir de al e r

n e twork an d through authori sed se lle rs of th e ir sp ar e par t s, to whom th ey

re f e r a s s to ckis t s.

Many of th e ir MASSs ar e at r emot e lo cation s wh e r e th e y do not hav e

de al e rs. In or de r to in crease th e pe n e tration, in t e rm s of sal es volum es , of

th e ir p ro du ct s in th ese re mot e ar e as, th e y ar e exp loring o pp ortuniti es to

int egrat e som e of th e MASSs into th e sal es p ro cess in or de r to in cr ease sal es

of th e ir car s an d re lat ed p ro du ct s an d se rvices su ch a s sp ar es an d

access ori es , in suran ce an d finan cing.

Genuine Acce sso rie s

The y hav e al so ent e r ed th e bu s in ess of mark e ting car a ccess ori es un de r th e

bran d nam e Maruti G enuin e Access ori es , or MGA, through th e ir de al e rshi p

n e twork. Th ey see k to p rovi de cu s tom e rs with th e o pp ortunity to cu s tomiz e

th e ir vehi cles with a ccess ori es su ch a s mu s ic syst em s , sec urity syst e m s, car -

car e p ro du ct s an d utility pro du ct s .


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W arranty and Extended W arranty Prog ram

The y off e r a two -year warranty on all th e ir vehi cles at th e tim e of sal e . The ir

de al e rs ar e r equir ed to a dd r ess any claim ma de by a cu stom e r, in a ccor dan ce

with p ra cti ces an d p ro ced ur es p resc rib ed by th e m, un de r th e p rovi sion s of

th e warranty in for ce at that tim e . Th e de al e rs sub se qu ently claim th e

warranty co s t from th em. Th ey analy se warranty claim s from de al e rs an d

e ith e r claim th e co s t from v en dor s, in th e ca se of de f e c tiv e com pon ent s , or

b ear th e co st our se lves , in th e case of manufa cturing de f ec t s.

The y off e r an ex t en ded pai d -warranty p rogram mark e t ed un de r th e bran d ,

Fo rever Yo ur s for th e thir d an d fourth y ear aft e r pur cha se . Th ey hav e

ent e red into arrang em ent s with in suran ce com pani es to cov e r th e co s t s of

warranti es off e red un de r thi s p rogram. Th e ex t en ded warranty p rogram i s int en ded to maintain th e de al e r s conta ct with th e cu stom e r an d in cre ase

th e r evenu e gen e rat ed from sal e of sp ar es , a ccess ori es an d automobi l e-

re lat ed se rvices . An e ffort i s ma de during th e pe rio d of th e ex t en ded

warranty to en courag e th e cu s tom e r to exchang e hi s ex isting Maruti car for a

n ew Maruti car, or u pgra de to a n ew Maruti car.


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TH E P L A YE R S I N TH E I ND IA N A UTOMO BI L E I NDU S TRY

Hyundai Mo t o r India Ltd

Hyun dai Motor In dia Limited (HMIL) is a wholly own ed sub sidiary of Hyun dai Motor

Com pany, South Kor ea an d is th e sec on d larg es t an d th e fa stes t growing car

manufa ctur er in In dia. HMIL prese ntly mark e ts 31 variant s of passe ng er car s in six

se gm ent s. The Santro in th e B se gm ent, G e tz in th e B+ se gm ent, th e Acce nt in th e C

se gm ent, th e Elantra in th e D se gm ent, th e Sonata Emb era in th e E se gm ent an d

th e Tucson an d Terra can in th e SUV se gm ent.

The com pany r ecor ded combin ed sales of 252 ,851 duri ng calendar y ear 2009 with

a growth of 17.26% ov er year 2008 . HMIL is Ind ia' s fastes t growing car com pany

having roll ed- out ov er 970 ,000 car s in ju st ov er 80 month s since its incep tion an d is

th e larg es t export er of passe ng er car s with exp ort s of ov er Rs. 1,800 cror es . HMIL

ha s recor ded a growth of 27.2% in export s over th e year 2008 .

HMIL s fully int egrat ed stat e-of -th e-art manufa cturing plant n ear Ch ennai boa sts

som e of th e mo st a dvan ced pro duction, quality an d tes ting capabiliti es in th e

country. In continuation of it s inves tm ent in providing th e Indian custom er global

technology, HMIL ha s announ ced plan s for it s sec on d plant, whi ch will pro duce

300 ,000 unit s pe r annum, rai sing HMIL s total pro duction capacity to 600 ,000 pe r

annum by 2007 . The plant will b e built on a 2.1 million squar e m e ter site ad jacent

to th e existing fa cility .HMIL is inves ting to exp an d capacity in lin e with it s

positioning a s HMC s global exp ort hub for com pact car s. Apart from exp an sion of

pro duction capacity, HMIL plan s to exp an d its de aler n e twork, whi ch will b e

increased from 157 to 200 thi s year. An d with th e com pany s gr eat er fo cus on th e

quality of it s aft er -sales se rvice , HMIL s se rvice ne twork will b e exp an ded to ov er

1,000 in 2010 .


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Tata Mo t o rs

Tata Motor s is on e of th e larg es t com pani es in th e Tata Grou p with a total

in com e of U S$ 2.35 billion. Mor e than 3 million Tata v ehi cles p ly on In d ian

roa ds making Tata a dominant for ce in th e Ind ian automobil e in du s try.

Tata Motor s is In dia ' s only fully int egrat ed automobil e manu fa ctur e r with a

portfolio that cov e rs tru cks , bu ses , utility v ehi cles an d passe ng e r car s . It

woul d b e no ex agg e ration to say that Tata Motor s p rovi des th e wh ee ls for

In dia ' s growth.

Tata Motor s ow es its leading position in th e Indian automobil e industry to it s

strong fo cus on in digenisation. Thi s focus ha s driven th e Com pany to se t u p worl d -

class manufa cturing unit s with stat e-of -th e-art t echnology. Ev ery stag e of product

evolution -des ign, de ve lopm ent, manufa cturing, a sse mbly an d quality control, i s

carri ed out m e ticulou sly. Th e ir manufa cturing plant s ar e situat ed at Jam shedp ur in

th e East, Pun e in th e Wes t an d Lucknow in th e N orth.

Ford India Limited

The Ford Motor Com pany ha s a ri ch lega cy of tran slating b e tt er motoring i de as to

th e roa ds . It ha s manufa ctur ed notabl e bran ds such a s th e Ford , Lincoln, M ercury

an d th e Jaguar. It i s among th e to p five industrial cor poration s in th e worl d an d is

availabl e in mor e than 200 countri es aroun d th e worl d.

Ford ha s ent ered th e Indian mark e t through a ti e - up with Mahin dra Motor s to

manufa ctur e th e Ford Escort, A proj ec t that ha s bee n se t u p with an inv es tm ent of

Rs.1700 cror e . Ford India Limited is a sub sidiary of For d Motor Com pany; curr ently

Ford ha s a 78% stak e , whi ch is going u p to 92% soon. Th e Maraimalai N agar Plant

of For d India Limited , locat ed roughly 45k.m.from Ch ennai, provides employm ent

to ov er 20000 pe ople .The plant ha s th e capacity to manufa ctur e 1,00,000 vehicles

pe r annum, equi pped with stat e-of -th e-art v ehicle manufa cturing t echnology from

Ford.

Prese ntly off ering se ven diff erent mo de ls, For d India Limited (FIL) is cat ching u p


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34

fa st with th e Indian con sum er. Thi s is sec ur ed through a quality check program

ba sed on th e prin ciples of N OVA - C (N ew Overall Vehicle Audit - Custom er)

wh ere in daily ran dom checks ar e con ducted from a custom er' s point of vi ew. To b e

doubly sur e , routin e calls ar e ma de to de alerships to check th e quality of car s

de livered to th em.

At Mahin d ra' s de al e rshi ps ar e p rese nt train ed p rof ess ional s who p rovi de th e

b es t leve ls of se rvi ce in In d ia. It s int en s ive man pow e r training, a dvan ced

se rv ice equi pm ent an d ded icat ed con sum e r sati sfa ction ar e it s p lu s point s

whi ch ar e b e ing follow ed by th e entir e in du stry.

Acknowl ed gem ent ha s com e in th e form of th e J D pow er 1997 India Initial Quality

an d Custom er Sati sfa ction Awar ds . These int ernationally a cclaim ed an d recogniz ed

awar ds vot ed th e Ford Escort a s th e Bes t Quality car an d th e Mahin dra For d an d its

de alerships were rat ed th e high es t in Cu stom er Sati sfa ction. Thi s is an honour a s it

it s only th e sec on d tim e in automotiv e history that th e sam e bran d/manufa ctur er

ha s rece ived both th e awar ds in th e sam e year.

General Mo to rs India

Ge

ne

ral Motors

Ind

ia, incor

porat

edin

1994a

sa

50-50joint v

entur

e com

pany with

th e C.K.Birla Grou p of Com pani es , b ecam e a fully own ed sub sidiary of GM in 1999

wh en GMOC bought th e remaining shar es . The com pany wa s res tru ctur ed in 1999

an d wa s conv ert ed from a Publi c Limited com pany to a Privat e Limited com pany.

GM APH LLCcurr ently hol ds 86 pe rcent of voting shar es , an d Holde n (Australia )

hol ds 14 pe rcent. Th e SPO bu siness wa s int egrat ed with th e main bu siness in th e

sam e com pany in 2000 .

In India, GM str ength ened its prese nce with n ew pro duct laun ches Chevrol e t O ptrain 2003 an d Chevrol e t Tav era (Multi Utility Vehicle) in 2004 . Similarly in 2008 , GM

India is expec ted to r egister a growth of 90% over 2007 . With sales volum e going

up, th e mark e t shar e of GM In dia ha s gon e to n early 2%. T he sales volum e in 2007

wa s 15,155 unit s whil e 2008 figur e is expec ted to b e aroun d 27,000 unit s. In 2008 ,

th e com pany sold a total of 26,166 car s as again st 15,155 car s in 2007 registering a


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growth of 73% whil e overall passe ng er car growth during th e year wa s only aroun d

23-24% . These included 9191 Chevy Optra s in Entry 'D' Lu xury sed an se gm ent, 8369

Ope l Corsas an d 8417 unit s of th e new g eneration premium multi -utility v ehicle

(MUV) Chevrole t Tav era.

The existing GM In dia plant wa s originally built by Hin dustan Motor s. In 1994 , GM

India ent ered into a 50% Joint Ventur e partn ership with Hin dustan Motor s an d

mo de rniz ed th e 45,000-s quar e-m e ter plant n ear Halol, 45 kilom e ters northw es t of

Vadodara, in th e wes tern stat e of Gujarat. In F ebruary, 1999 , GM bought th e

hol dings of Hin dutan Motor s an d GM India b ecam e a 100% sub sidiary of G eneral

Motor s Corporation of U SA. The plant pro duces th e Ope l Corsa, Cor sa Sail,

Chevrol e t O ptra, an d Chevrole t Tav era. Th e Chevrol e t For es ter an d Ope l Vec tra ar e

sold as CBUs (Com p le te ly Built in Unit s) an d as im port ed from Ja pan an d Germany

respec tive ly.

All em p loyees of Gala xy Toyota shall con side r how th ey shoul d act an d how

th ey might chang e th e ir way s to b en e fit th e com pany. Th e y laun ch on e Co

Bran ded Cred it Car d to p rovi de add itional b en e fi t s an d se rvi ces to th e

Toyota cu s tom e rs . This Cred it Car d will give Toyota cu s tom e rs b e tt e r

paym ent fl ex ibility an d conv eni en ce , like Cus tom e r ge t s fr ee se rv ice vou ch e r

with th e car d , Spec ial Invit e to co -sp on sor ed event s , Pe rsonal a cc ide nt

in suran ce cov e rag e: Up to 20 lakh s e t c. They hav e on e Gu es t Book in whi ch

th ey s tor e valuabl e comm ent s of cu s tom e rs , whi ch th ey think ar e ve ry

im portant for th e m, whi ch will h e lp th em to im p rov e th e ir se rv ice .

HO NDA

Hon da is on e of th e leading manufa ctur ers of automobil es an d pow er pro ducts an d

th e larg es t manufa ctur e of motor cycles in th e worl d. They hav e 20 de alers in 42

diff erent cities aroun d India. In N ew De lhi th ey hav e 6 de alers; I hav e visit ed on e of

th em, whi ch is in N ajafgarh Roa d.

They do surv eys to know custom ers need . They targ e t e ith er existing or th e ir

pe rspec tive custom ers by giving a dverti se m ent in th e newspape r or through th ere


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36

sati sfied custom ers whi ch give ref erences . They don t be lieve on targ e ting

com pe titor s custom ers becau se by not doing so th ey hav e such a bran d rep utation

with goo d quality pro ducts, only through thi s th ey ar e abl e to mak e goo d sales .

The y d isp lay th e ir mo de ls in 8th Auto E xpo, whi ch h e ld in N ew De lhi. Th ey

ar e now fo cu s ing on th e ir n ew mo de l Civic . Honda' s Civic pe rha ps d rew th e

ma ximum att ention. Th e re ason i s sim p le: Civic is a n ew car from th e hou se

of Hon da. During my surv ey I ge t to know that Hon da City Mo de l is th e

sec on d larg es t se lling car in th e C s e gm ent. Th ey hav e a goo d su pe riority

with su pe rior bran d nam e in th e country.

The y p re f e r to hav e mo de of communi cation with th e cu stom e r through mail,

t e lep hon e an d som e tim es by l e tt e r. Cu stom e r s who don t hav e tim e even to

see th e mo de l or to call th e de al e r to mak e inquiri es about th e ir r ese rvation

th ey des ir e to solv e th e ir qu e ry onlin e it se lf.

To ju dge custom er sati sfa ction th ey som e tim es invit e th e ir custom ers to hav e a

ge t tog e th er, to hav e int era ction with custom er in a minut e to know that ar e th ey

sati sfied with th e ir se rvices an d what th ey ar e expec ting from th em in th e near

futur e . They mak e ma ximum of th e ir sales from th e fresh custom ers rath er than

th e ir repe at pur cha se rs. To in crease th e ir sales th ey try to ex tort surr ep titiou s information from th e custom ers an d on th e ir end th ey aim to ensur e that th e

pro duct quality an d pro duct quantity shoul d be availabl e in r equir ed quantity in

th e ir de alership.

They hav e Feed ba ck form in whi ch th ey tak e f eed ba ck of th e custom er a s we ll as

th e ir salespe rson b ecau se through thi s th ey ar e abl e to g e t th e information of both

th e custom er & th e ir salespe rson that ar e th ey giving th e full information to th e

custom er. Thi s Dealership even provi de techni cal skills an d techniqu es to th e ir

employees that how to de al with th e custom er thoughtfully every aft er 6 month s.


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37

FINDINGS FROM SUR VEY

To t l Nu ber of Res po nd ent s: 15 O ff i i ls

Number of Res on entsMaruti U yog Limite 5Hyun ai Motors In ia Lt 2General Motors 2Tata Motors 5For In ia Limite 1

Do you face roblems in maintaining goo an effecti ve relationshi swith customers

QuiteFrequentl y

Frequentl y Average Rarel y

Maruti U yogLimite

2 3 - -

Hyun ai MotorsIn ia Lt

- 2 - -

General Motors - 2 - -Tata Motors 3 2 - -For In ia Limite - 1 - -

Fin ings Accor ing to the res onses of the res on ents it can be conclu e that

all the res on ents face roblems in maintaining goo an effecti ve relationshi s

with customers. With changing customer nee s it s quite ob vious that maintaining

goo relations with customers nee an effort on art of the Dealers an

Manufacturers.

QuiteFrequently

33%

Frequently67%

Average0%Rarely0%


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How w ell can yo ur co mpany identi f y it s end u ser cu s t o mer s?

j Maruti U dyog Limit ed: Accor d ing to th e offi cial s of MUL, th e com p any s

en de avor i s to b e clo se to th e cu stom e r, to anti cipat e an d fulfill th e ir

n eeds . The y b e lieve that th e n e w bu sin ess initiativ es tak en by MUL hav e

exp an ded th e sc o pe of thi s re lation shi p . Maruti off e rs auto in suran ce ,

auto finan ce , cor porat e le ase an d flee t manag e m ent an d r es al e of p re-

own ed car s in partn e rshi p with it s de al e rs. For th e first tim e , car

cu stom e rs in In d ia ar e abl e to a ccess th ese se rv ices through a on e -s to p

sho p , ba cked by th e le ade r bran d . The way th ey look at it i s that thi s will

p rovi de com p le t e mobility solution s to th e Maruti cu stom e r. Thi s al so

enabl es th em to ex t en d th e ir r e lation shi p with th e cu s tom e r b eyon d th e point of pur cha se to th e entir e own e rshi p li f e cycle . Sin ce th ese se rv ices

p lay a vital rol e in th e car cu s tom e r' s own e rshi p expe ri en ce , th e n e w

initiativ es enabl e th e m to off e r Maruti own e r s gr e at e r valu e , a ss uran ce

an d conv eni ence .

j Hyun dai Motor s In d ia Ltd: Accor d ing to th e offi cials of Hyun dai Motor

In dia is at a v e ry exc iting stag e in In dia to day. Th ey ar e expe ri en cing

tr e m en dou s growth - whi ch i s a tru e sign of enjoying cu s tom e r

confi de n ce . In or de r to s tr ength en th e ir pos ition furth e r in th e In d ian

mark e t, th ey n eed to continuou sly work on buil d ing th e ir cor porat e

rep utation whil e aggr ess ive ly po sitioning th e ir p ro du ct s. For H MI' s fo cu s

an d commitm ent to th e Ind ian automobil e cu s tom e rs is of criti cal

im portan ce . It s b ee n th e ir continuou s en de avor to fulfill th e entir e

spec trum of cu stom e r n eeds an d des ir es , a cro ss all so cio -ec onomi c &

lif es tyl e grou ps . The y hav e th e re for e , in ju st 6 year s of HMI' s young lif e ,

es tabli sh ed nationwi de sal es & se rvice n e twork, sc al ed u p stat e- of -th e-

art manufa cturing cap acity, laun ch ed global -s tan dar d car s in ra p id

su ccess ion an d exp or t ed car s ma de - in -In dia a cro ss th e glob e . Ge tz, a

mu ch a dmir ed li f es tyl e bran d in Euro pe an d e lse wh e re , is a st ep in th e

sam e d ir ec tion an d is a cutting -ed ge , a dd ition to HMI' s ex t en sive p ro du ct

portfolio.


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j Gen e ral Motor s: Accor d ing to th e offi cials at G en e ral Motor s is po s ition ed

as a matur e an d resp on s ible car manufa ct ur e r, whi ch off e rs gr e at valu e-

for -mon ey p ro du ct s to it s cu s tom e rs. The com pany l eve rag es it s global

expe rt i se to manufa ctur e an d mark e t w e ll engin ee red an d saf e p ro du ct s

through it s w e ll -es tabli sh ed re tail n e twork that p rovi de an exce llentown e rshi p expe r ien ce to it s cu s tom e r s.

j Tata Motor s: Accor d ing to th e offi cials of Tata Motor s th e foun dation of

th e com p any s growth ov e r th e la s t 50 year s is a deep un de rs tan d ing of

ec onomi c s timuli an d cu stom e r n eeds , an d th e ability to tran slat e th em

into cu s tom e r -des ir ed off e ring s through l ead ing ed ge R&D.

j For d In d ia Limit ed: Accor d ing to th e offi cials of For d In d ia ha s re affirm ed

it s commitm ent to enhan cing th e pur cha se an d own e rshi p expe ri en ce for

it s cu s tom e rs with th e rollout of For d Bran d@ Re tail con cep t a cro ss th e

country. For d In d ia ha s b ee n r evam p ing all de al e rshi ps un de r th e For d

Bran d@ Re tail, a global cor porat e ide ntity p rogram to off e r a worl d -c la ss

pur cha se expe ri en ce to th e cu s tom e r. For d Ind ia continu es to exp an d it s

d istribution n e twork an d will grow to 115 de al e r outl e t s in 79 lo cation s

by th e en d of 2009 . The offi cials al so m ention ed that For d In dia p rovi des

training su pp ort to de al e rs in ar ea s in clu d ing cu stom e r sati sfa ction, sal es ,

t ec hni cal an d non -t ec hni cal a spec t s of th e bu sin ess an d in th e finan ci al

manag e m ent of th e de al e rshi p .

Can your company diff erentiate its cu st o mer s b ased o n their value toyou and their need s f ro m you?

Yes N oMaruti U dyog Limit ed 5 - Hyun dai Motor s In d ia

Ltd

2 -

Gen e ral Motor s 2 - Tata Motor s 5 - For d In d ia Limit ed 1 -


40/63


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during th e day an d all day s of th e wee k. The toll -free se rvice is 1800 1800 180 ,

it is access ible from any fi xed- line or mobil e phon e of BSN L/MTN L ne twork

acro ss th e nation. Th e Anytime Maruti Call-ce nt er can al so b e accessed using

te lep hon es on oth er n e twork s by dialing 09811801515 (not toll -free) . The

obj ec tive of thi s se rvice is to ensur e that custom ers hav e qui ck an d easy a ccess to all information on th e ir mo de ls, prices , de alers, valu e added se rvices , finan ce

option s, an d th e location s of our num erou s se rvice station s. Anytim e Maruti

he lps custom ers to l earn mor e about th e ir Maruti Car s an d also about oth er

se rvices off ered by Maruti. For pro spec tive buy ers, Anytim e Maruti can h e lp

th em dec iding among st variou s Maruti Mo de ls an d benefits of buying from

Maruti.

j Hyun dai Motor s In d ia Ltd: Accor d ing to th e offi cials at HMI Th e Com pany

ha s se t u p mor e than 70 de al e r work sho ps that ar e equi pped with th e

lat es t t ec hnology, ma chin e ry, an d int e rnational quality press , bo dy an d

paint sho ps , a cro ss th e country, th e reby p rovi ding a on e -s to p sho p for a

Hyun dai cu stom e r. Hyun dai al so ha s a fl ee t of 78 e m e rgen cy roa d se rvi ce

car s - spec ially equi pped Santro that can p rovi de e m e rgen cy se rvi ce to all

it s cu s tom e rs anytim e , anywh e r e . The cu s tom e rs can al so call on 1800-

11-4645 (Toll Free - Only from MT N L & BSN L numb e rs)

011- 26924645 (For all G SM Conn ec tion s / Lan d line oth e r than MT N L &

BSN L numb e rs) for any qu e ri es & cu s tom e r com p laint s.

j Gen e ral Motor s: Accor d ing to th e offi cial at GM, to bring gr e at e r valu e

an d se rvice to cu s tom e rs , th e y hav e intro du ced th e GM Servi ce Plu s a

uniqu e clu st e r of se rvices , des ign ed to com p lim ent eve ry a spec t of

owning a car an d ensuring com p le t e pe a ce of min d . So b e it e m e rg en cy

ass is tan ce , an urg ent car se rv icing or even sour cing g enuin e a ccess ori es ,

Custom e rs can b e a ss ur ed of y e t anoth e r gr eat mom ent from G en e ral

Motor s . For any car r e lat ed qu e ry or e m e rg e n cy requir em ent, cu s tom e rs

can call 24- hour a ss is tan ce at 30308080 . The uniqu e 3 -hour se rvice

p rogramm e com es with a p romi se of se rv icing your car in ju st 3 hour s, or


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you g e t th e se rvice fr ee . With th e ir 24- hour work sho ps , cu stom e rs can

now conv eni ently g e t th e ir car se rviced , wh en th e y u se it th e leas t.

Wi desp read sal es an d se rvice outl e t s a cro ss th e country en sur e that you

hav e th e ass uran ce of gr eat se rv ice wh e reve r you trav e l in Ind ia.

j Tata Motor s: a ccor d ing to th e offi cial s of Tata Motor s th e com pany ha s str ength en ed it s d is tribution an d cu stom e r car e n e twork an d to day ha s

77 de al e rs an d 230 authoriz ed se rvice outl e t s sp read a cro ss 119 lo cation s

in In dia.

j For d Ind ia Limit ed: Accor d ing to th e offi cials at For d solution s aim s to

p rovi de quality, pe a ce - of -min d p ro du ct s for th e cu stom e r an d e mbo d ies a

bran d synonymou s with it s ability to p rovi de p ro du ct s that can b e

tailor ed to suit on e 's in d ividual n eeds . For d Solution s se rv e to de ve lo p

p ro du ct s for For d an d th e De al e r bo dy that enhan ce cu stom e r

sati sfa ction. Wh en your v ehi cle n eeds a r ep air or a com pon ent r ep la ced ,

you n eed Quality Car e se rvice . Your For d De al e rshi p is s im p ly th e b es t

p la ce to hav e your v ehi cle se rviced . Brak es , sho cks , batt e ri es or anything

your v ehi cle may n eed , your de al e rshi p is th e p la ce to g e t it. Cu stom e rs

can p la ce an onlin e se rvice r equ es t at For d .


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Ho w w e ll does 3 ou r com pa n 3 cus tom i4 e its pro du ct s and serv ices base d on wh a t it 5 no ws abo ut it s cus tomers 6

Highly Customer

centric

Somewhat

Customer centric

Not Customer

centricMaruti U 7 yogLimite 7

5 - -

Hyun 7 ai MotorsIn 7 ia Lt 7

2 - -

General Motors 2 - -

Tata Motors 5 - -

For 7 In 7 iaLimite 7

1 - -

Fin 7 ings 8 All the officials of the Automobile Ma jors agree that all 9 ro 7 ucts an 7

ser vices are highl y customer centric an 7 base 7 on the information the y know about

the customers.

Highly Customer centric100%

SomewhatCustomer centric

0%

Not Customer centric

0%


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44

Does th e com pa n @ have es tab lishe d qua lit @ ass u ra nce p rocesses A

Yes NoMaruti U B yog Limite B 5 -

HyunB

ai Motors InB

iaLt B 2 -

General Motors 2 -Tata Motors 5 -For B In B ia Limite B 1 -

Fin B ings C Accor B ing to all the res D on B ents their res D ecti ve com D anies ha ve

establishe B qualit y assurance D rocesses.

Yes100%

No0%


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Does th e com pan E take cus tomers' nee ds int o co ns idera tion wh e nse lec ting a nd i m pleme nting t ec hn o log E ?

Yes NoMaruti U F yog Limite F 5 -

HyunF

ai Motors InF

iaLt F 2 -

General Motors 2 -Tata Motors 5 -For F In F ia Limite F 1 -

Fin F ings G Accor F ing to all the res H on F ents their res H ecti ve com H anies take

customers' nee F s into consi F eration when selecting an F im H lementing technolog y.

As H er officials of GM the Ta vera is a classic case of an In F ia-s H ecific H ro F uct.

Though it is an international H ro F uct, the car has been totall y re-engineere F for

In F ian market requirements.

At Hyun F ai Segment-nee F s an F bu F gets are s H ecific an F a suitable variant

strateg y is ine vitabl y require F to meet F ifferent segment-nee F s an F to be a

volume H layer in the segment. The variants are F eci F e F after consi F erable

research. The y ha ve been targete F at F ifferent segments an F the y H resentl y

witness a health y mi I . As this segment e volves the y rationalise the variant

strateg y an F a F F or F elete variants to meet market requirements. The y ha ve

H ut in H lace a customer contact H rogramme where the y interact with

Yes100%

No0%


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customers in grou P s as well at an in Q ivi Q ual le vel at regular inter vals to

assess their nee Q s an Q overall e R P erience with their P ro Q uct.

The t yp ical In Q ian consumer looks for value an Q Q oes not min Q paying a little

more for it. Fuel efficienc y, aircon Q itioning an Q reliabilit y along with ease of

ser vice an Q low cost of ownershi p are ma jor consi Q erations Q uring the

purchase p rocess in In Q ia.

Does th e com p a n S p rov id e it s em pl oyees with t ec hn o logy th a te n ab les th em t o h e lp cu s t omers ?

Yes NoMaruti U Q yog Limite Q 5 -Hyun Q ai Motors In Q iaLt Q

2 -

General Motors 2 -Tata Motors 5 -For Q In Q ia Limite Q 1 -

Fin Q ings T Accor Q ing to all the res pon Q ents the com pan y p ro vi Q es its

em p loyees with technolog y that enables them to hel p customers. Em p loyee

an Q Dealer Training is a part of e ver y com pan y Customer Ser vice Initiati ve.

This enables them to p ro vi Q e the customers with state of art p ro Q ucts an Q

ser vice to customers.

Y es100

No0


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Does th e com p a n y ma int a in a s t ra t e gy for co llec ting a nd u s ingin forma ti o n abo ut cu s t omers ?

Yes NoMaruti U U yog Limite U 5 -Hyun U ai Motors In U ia

LtU

2 -

General Motors 2 -Tata Motors 5 -For U In U ia Limite U 1 -

Fin U ings V Accor U ing to all the res pon U ents the y ha ve p roper information about

their most profitable customers. Com panies use Informal Meetings, Sales

Interaction an U calls to collect rele vant information nee U e U to maintain goo U

customer relationshi p . The most effecti ve com panies like Tata Motors use all the

abo ve while most of other tracks the U ata U uring sales interaction. All the

Automobile ma jors sur veye U use U CRM software for tracking Customer

Information. Accor U ing to the officials Customer an U Supp lier Fee U back are

gathere U through Call Centers, Mails an U Direct Inter views. There are other

metho U s too but the abo ve three are the most cost effecti ve.

Yes100%

No0%


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Ho w effec ti ve ly does th e com pa ny comb in e in forma ti o n o ncu s t omers with it s ex p er ie n ces t o ge nera t e kno wl e dg e abo ut it s cu s t omers ?

Highly Effective SomewhatEffecti ve

Not Effecti ve

Maruti U W yogLimite W

4 1 -

Hyun W ai MotorsIn W ia Lt W

2 - -

General Motors 2 - -

Tata Motors 3 2 -

For W In W iaLimite W

1 - -

Fin W ings X All the 80 Y officials of the Automobile Ma jors their com pan y highl y

effecti ve in combining information on customers with its e ` periences to

generate knowle W ge about its customers while 20 Y sai W that the com p an y

was somewhat effecti ve.

Highly Effective80%

a

omewhateffective

20%

Not Effective0%


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W hat step s ha s the co mpany taken to impr ove the to tal experience of

its cu st omer s?

j

Accor d ing to th e Maruti U dyog Limit ed Officials: Sal es expe ri en ce is th e mo st im portant fa ctor, a ccounting for 37 pe r ce nt of th e SSI sc or e , an d

in clu des iss u es su ch a s fulfillm ent of commitm ent s an d la ck of ha ss les

during th e sal es p ro cess , ov e rall hon es ty an d int egrity of th e de al e rshi p

pe rsonn e l an d suffi cient tim e to mak e th e dec ision. Maruti ent e r ed th e

In dian car mark e t, to p rovi de fu e l e ff icient, low -co s t v ehi cles , whi ch w e re

re liabl e an d of high quality. It al so off e red cu s tom e rs a fri en d ly sal es an d

aft e r sal es se rv ice . With high cu s tom e r sati sfa ction ratio an d Total

automobil e valu e th ese obj ec tiv es sha ped Maruti a s big Giant in th e fie ld

of automobil es .

j Accor d ing to Hyun dai Motor s (Ind ia ) Officials: Hyun dai ' s big hit wa s it s

com p a ct family car nam ed Santro whi ch b ec am e a hug e hit with it s

laun ch an d cap tur e h e art s of million s with in cre asing sati sfied cu stom e rs

day by day. Wh en Hyun dai foray ed into th e In d ian mark e t it mov ed

qui ckly to se t u p a n e twork of de al e rs an d se rv ice s tation s - it ha s clo se to

260 of th e latt e r. Servi ce wa s ide ntifi ed as a pow e rful d iff e rentiator toth e way thing s w e re don e an d wor d of mouth d id th e res t. It wa s on e of

th e way s to k eep th e Hyun dai cu stom e r within our fol d . Also, th ese ar e

advan ced car s, whi ch can't b e rep air ed by a corn e r m ec hani c. Hyun dai

off e rs se rv ice for l ess , it' s eas ily re achabl e an d allow s flex ibility an d

cu stom e rs app rec iat e that. Hyun dai Motor In dia Ltd (HMIL) laun ch ed

Achi eve Q 1P1 quality cam paign on Mar ch 24 , 2010 p rimarily fo cu s ing

on a chi eving th e Global N o. 1 Quality & Bran d imag e . The cam paign ha s

b ee n initiat ed a cro ss th e Hyun dai v en dor frat e rnity. Thi s n ew initiativ e

will str ength en th e Ve n dor quality organi sation an d will en sur e th e major

part quality im p rov e m ent su ch a s Six Sigma A ctivity, training an d im p rov e

th e Tie r 2 su pp lie rs . The cam paign will al so h e lp th e su pp lie rs to im p rov e

th e ir 3C5S (3C Correc t Contain e r, Corr ec t Quantity & Corr ec t Lo cation


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an d 5S Sorting, Sys t e matizing, Shining, Stan dar d izing & Se lf -Disc ip line) ,

TPM (Total Pro du ctivity Maint enan ce) , b e n chmarking a ctiviti es an d

u pgra de quality sys t e m s.

Accor d ing to For d In d ia Limit ed offi cial s, Pr ese ntly For d is off e ring se ven

d if f e rent mo de ls; For d In d ia Limit ed (FIL) is cat ching u p fa st with th e In d ian

con sum e r. FIL was th e first sub s id iary of a multinational car manufa ctur e r in

In dia to laun ch a car des ign ed spec if ically for In d ia. Th ey hav e con sis t ently

adap t ed th e spec if ication of th e Ikon to en sur e it m ee t s th e n eeds of In d ian

con sum e rs. Th ey hav e im p rov ed th e horn an d th e st ee ring column swit ch so

that th ey ar e mor e robu s t; th e n ew combination swit ch ha s p rov ed so

e ff ec tiv e that it i s u sed worl dwi de . They hav e al so de ve lo ped a hy d rauli cally

activat ed clut ch sys t e m, im p rov ed groun d cle aran ce an d u pgra ded air

con d itioning to sati sfy th e spec if ic n eeds of th e In d ian cu s tom e r. Thi s is part

of a continuou s im p rov e m ent p ro cess . Sati sfying our cu stom e rs th ey hav e

intro du ced initiativ es to a ssess cu s tom e r sati sfa ction an d to a ct on th e ir

con ce rn s. The Int en sif ied Cus tom e r Con c e rn D e finition (ICCD ) is a t e lep hon e

surv ey of cu s tom e rs con du ct ed to a ssess p robl em s in thr ee ar e as:

The y r ec ogni se th e n eed for a dd itional p ro duct s . The y ar e working towar ds

intro du cing p ro du ct s to mat ch our cu s tom e r s dynami c li f es tyl e , p ro du ct s

whi ch hav e p rogr ess ive styling an d ar e gr e at to d rive .

Ve hi cle quality con ce rn Des ign an d gen e ral comm ent s N e gativ e sal es

an d se rvi ce

j Accor d ing to GM offi cials: Gen e ral Motor s targ e t i s to off e r a choi ce of

p ro du ct s to th e ir cu s tom e rs to mat ch th e ir d iff e rent n eeds an d bu dge t s .

Being th e worl d s larg es t car manufa ctur e r, th ey hav e a ccess to a rang e of

p ro du ct s through th e ir global allian ces . They ar e alr eady p rese nt in mo s tse gm ent s an d will shortly hav e p ro du ct s in a dd itional se gm ent s .

How eve r, th ey ar e fo cu s ing on th e fa s t growing MP V se gm ent with th e

Chevrol e t Tav e ra an d hav e inv es t ed sub stantially in thi s p ro du ct lin e .

The y look for cu s tom e rs for lif e who will hav e a choi ce of p ro du ct s to buy

from th e ir stabl e . Su stain ed bran d buil ding e ffort s cou p led w ith int en s ive


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groun d- leve l activity ha s en sur ed that O p tra ha s remain ed among th e to p

two p lay e rs in it s se gm ent. Th ey hav e r e fr es h ed th e p ro du ct through

continuou s p ro du ct im p rov e m ent s an d hav e em e rg ed as se gm ent l eade r

in fu e l e ffi cien cy. Th e y hav e rece ntly laun ch ed a limit ed ed ition of 150

car s , whi ch ha s rece ived a v e ry po sitive r esp on se an d given u s ri chd ivide n d in t e rm s of bran d buil ding an d imag e ry. A p ro du ct r e fr es hm ent

p lan en sur es that th ey remain com pe titiv e an d ar e ready to m ee t futur e

chall eng es in thi s se gm ent. Th ey al so hav e a r egular Cu stom e r Re lation

Manag e m ent p rogramm e wh e reby ex isting cus tom e rs ar e off e red loyalty

p rogramm es an d gr eat off e r s. So far, th ey hav e organi sed six Op tra Ma x

Mil eag e Rally m ee t s wh e re Op tra cu s tom e rs com pe t e to e x tra ct th e b es t

fu e l e fficien cy out of th e ir car s an d all parti cipant s ar e tr e at ed to an

ov e rnight stay at an ex oti c lo cal e with an eve ning of ent e rtainm ent. Th e

winn e rs of th ese ralli es ar e given h ealthy ca sh r ewar ds . These vent s go a

long way in buil ding goo dwill an d bran d loyalty.

j Accor d ing to Tata Motor s Official s: TATA Motor s is In dia ' s for emo s t, an d

th e only fully int egrat ed automobil e manufa ctu r e r. Es tabli sh ed in 1945 as

TATA Engin ee ring & Lo comotiv e Com p any (TELCO), to manufa ctur e

lo comotiv es an d oth e r engin ee ring p ro du ct s , th e com pany i s to day

among th e worl d 's to p 10 p ro du c

Final Maruti Udyog Limited Edited Version

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