Ie Project on Maruti Suzuki

MARUTI SUZUKI

Industrial Exposure Project Submitted in partial fulfillment of the requirements for the 

Award of degree/diploma of BBA-IV

 2012 – 2013

Submitted by:                                         Guided by:

UPENDER GOEL                               Miss SHRADHA VERNEKAR                   

BHARATI VIDYAPEETH DEEMED UNIVERSITY SCHOOL OF DISTANCE EDUCATION

Academic Study Centre - BVIMR, New DelhiAn ISO 9001:2008 Certified Institute

NAAC Accredited Grade “A” University

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to and owe my foremost regards to

Miss Shradha Vernekar for giving me an opportunity to carry out this project work under his

guidance. This work would not have been possible without his invaluable support and

thought provoking comments. It is due to his patient guidance that I have been able to

complete the task.

I also extend my gratitude to the Librarian and the Library staff who made available

the required materials within time. I am indebted to all those who guided me while doing the

research work. Their valuable contributions have played a vital role in the completion of this

project.

Though I have tried out best at the same time I know that there is nothing called perfection so I would like to have all valuable suggestion for future

I dedicate this project to all the people who believe that hard work and creativity needs protection and encouragement.

UPENDER GOEL

BBA- IV

CONTENTS

Chapter 1:       Introduction to Company

1. Nature of Business2. Type & ownership Pattern3. Organizational Structure4. Production Lay out5. Organisational Policies

Chapter 2:       Industrial Analysis

1. Industry Overview –(Growth rate of Industry, Contribution to GDP)2. Current Issues (From Newspaper, Journals –For Company and Industry)3. Key Competitors4. Environmental Scanning –Political environment, Economic environment,

Socio-Cultural Environment, technological environment, environmental issues (Green environment) and Legal environment.

5.  Porters five forces model of competition –Michael Porter

Chapter 3:       Marketing Strategies

1. Products of Company2. 4 Ps (Product: Price, Place & Promotion)3. STP (Segmentation, Targeting and Positioning)4. Distribution Channels5. Promotion Strategies

Chapter 4:    Financial Analysis

1. Sources of Finance2. Ratio Analysis –Any 53. Net Profit/ Balance sheet (from annual report) -Analyse

Chapter 5:       Key Learning’s from the Company and Recommendations

1. Reasons for the expansion/contraction/diversification of Company2. Market share/growth rate of Company3. SWOT Analysis of the Company

Chapter 6:       Findings

Chapter 7:       Conclusions and Suggestions

Chapter 1:- Introduction to Company

Nature of business

Maruti Suzuki is India’s number one leading automobile manufacturer and the market leader in the car segment both in terms of volume of vehicle and revenue earned. Until recently 18.28% of the company was owned by the Indian government and 54.2% by the Suzuki of Japan. The Indian Govt. held an initial public offering of 25% of the company in June 2003. As of 10 May 2007 government of India sold its complete share to Indian financial Institution. With this govt. Of India has no longer stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production was started in 1983 with the Maruti 800 based on the Suzuki Alto Kei Car which at that time was the only modern car available in India. Its only competitor was Hindustan Motor’s Ambassador and the Premier Padmini were both around 25 years out of date at that point.Through 2004 , Maruti Suzuki had produced over 5 Million vehicles. Maruti Suzuki are sold in India and various several other countries depending upon export orders. Models similar to Maruti Suzuki (but not manufactured by Maruti udyog) are sold by Suzuki Motors corporation and manufactured in Pakistan and other south Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic Market in India selling over 7,30, 000 cars annually. Maruti 800 till 2004 was the India’s largest selling compact car ever since it was launched in 1983. More than a Million unit of this car have been sold worldwide so far. Currently Maruti Suzuki Alto tops the sales chart and Maruti Suzuki Swift is the largest selling car in A2 segment. Due to large number of Maruti 800’s sold in the Indian market the term “Maruti” is commonly used to refer to this compact car model. Till recently the term “ Maruti” in popular Indian culture in India, Hindu’s lord Hanuman is known as “Maruti” was associated with Maruti 800 model.

Manufacturing Facilities Its manufacturing facilities are located at two facilities, “Gurgoan” and “Manesar” south of Delhi. Maruti Suzuki’s Gurgoan facility has an installed capacity of 3,50,000 units per annum. The Manesar facility launched in February 2007 comprises a vehicle assembly plant with a capacity of 1,00,000 units per year and a Diesel Engine plant with an annual capacity of 1,00,000 engines and transimission. Manesar and Gurgoan facility have a combined capacity to produce over 7,00,000 units annually.More than a half of the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motors Corporation of Japan which owns 54.2 percent of Maruti Suzuki. The rest is owned by the Public and Finance Institution.It was listed on the Bombay ( now Mumbai) stock exchange in India. During 2007-08 Maruti Suzuki sold 7,64,842 cars of which 53,024 are exported in all. Over Six Million Maruti Suzuki cars on Indian roads since the first car was rolled out on 14 December 1983.

Products Offered Maruti Suzuki offers 15 models and they are, Maruti 800, Alto, Wagon R, Zen Estilo, A Star, Ritz, Swift, Swift Dzire, SX4, Omni, Eeco, Gypsy and Grand Vitara.Out of these models Grand Vitara is imported from Japan a completely built unit (CBU). Swift, Swift Dzire , A Star and SX4 are manufactured in Manesar and the remaining models such as Maruti 800, Alto, Wagon R, Zen Estilo, Ritz, Omni , Eeco etc are manufactured at Gurgoan Plant.

Human Resources Nearly 75,000 people are employed directly by the Maruti Suzuki and its Partner. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J.D. Power Asia Pacific.

History

Around 1970, Sanjay Gandhi, Political advisor and younger son to then Prime minister of India, Indira Gandhi , envisioned the manufacture of an indigenous , cost – effective , low maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed a uninamous resolution for the devlopment and production of “people’s car”. Sanjay Gandhi’s company was christened Maruti Limited. The name of the car was choosen as “Maruti”, after the name of a hindu deity named Marut. At that time Hindustan Motor’s Ambassador was the cheif car and the company had came out with a new enterant , the Premium Padmini which was slowly gaining a part of the market share dominated by the Ambassador. For the next ten years the Indian car market had stagnated at a volume of of 30,000 to 40,000 cars for the decade ending 1983. Sanjay Gandhi was awarded the exclusive contract and licence to design, devlop and manufacture the “People’s car.This exclusive right of production generated some criticism in certain quaters, which was directly targeted at Indira Gandhi . Over the next few years the company was sidelined due to the Bangladesh Liberation war and the emergency. In the early days under the powerful patronage of Sanjay Gandhi, the company was provided with free land , tax breaks , and funds. Till the end of 1970’s the company had not started the production and a prototype test model was met with criticism and skepticism.The company went into liquidation in 1977. The media perceived it to be another area of growing corruption. Unfortunately Maruti started to fly only after the death of Sanjay Gandhi, when Suzuki joined the Govt. Of India as a joint venture parteners with 50% share. After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with Suzuki Motors . The collaboration heralded a resolution in the Indian car industry by the production of “Maruti 800”. The car went into sale on December 14,1983. It created record by taking 13 months to go from design to rolling out car from a production line. By the year 1994 the company had sold upto 1,96,820 cars, mostly by selling its cheif product the “Maruti 800”. By March 1994, it produced one million vehicle , becoming the first Indian company to cross this milestone. It reaches the 2 million mark in October 1997, and rolled out its 4th million vehicle an ALTO (LX) on April 19, 2003. Maruti Udyog Ltd. is the premium car company in India. Maruti Udyog Limited (MUL) was established in February 1981 through an act of parliament. The Company entered into collaboration with Suzuki Motors of Japan to manufacture cars.The main objectives behind formation of Maruti Udyog Limited was to meet the growing demand of a personal mode of transport caused by the lack of an efficient Public Transport System. Today Maruti Udyog Limited is garneshing share of automobile market in India. It has completely revolutionised the Indian car market and has brought out numerous model to cater to every section of society. These ranges from Economy cars to Luxury cars to Super SUV’s.

Company’s Profile Around 1970, Sanjay Gandhi, political advisor and younger son to the then Prime minister of India, Indira Gandhi, envisioned the manufacture of an indigenous, cost effective, low maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed an uninamous resolution for the development and production of “Peoples car”. Sanjay Gandhi’s company was christened Maruti Limited. The name of the car was was chosen as Maruti, after a hindu deity named Marut. Unfortunately Sanjay Gandhi died without fulfilling his dream. After this death , Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration with the Suzuki Motors of Japan. The collaboration heralded a resolution in the Indian car industry by producing Maruti 800. The car went into sale on 14 December 1983. And from 1980’s to till day today Maruti’s have dominated the Indian Automobile industry

as well as automobile market.

Stock Exchange on which company is listed Maruti Suzuki is listed on Bombay stock exchange now Mumbai. It is also listed on NYSE ( New York Stock Exchange) as well as stock exchange of Japan.

Vision, Mission and Core values of Maruti Suzuki

Vision:- Vision of any company is those values on which company works. As the Maruti Udyog Limited (MUL) is started by governmental initiatives it tends to be more consumer oriented and hence cost- effective, but on the other hand Suzuki’s participation ensures not only need of profit, but the need of maximum profit. The only way of Nora’s dilemma of selecting principles for the company’s working vision was to maximize profit and sales and hence Maruti Udyog Limited (MUL) declared its vision as:-

“The leader in the Indian Automobile Industry, creating Customer Delight one and shareholder’s wealth two eventually become pride of India. Customer Delight One is making sure that Performance, after sales service and customer are best and beyond expectations, shareholder’s wealth two is the prime concern for running business smoothly. Maruti Udyog Limited (MUL) knows this and understands “Customer Is King” , he can change the future of any company hence goes company’s brand line : COUNT ON US!

Mission:- Mission is the statement of any organisation’s purpose , what is want to accomplish in the larger environment and its goal which are specific , realistic, and motivating. Missions are described over Visions and Visions demand certain objectives. The main Objectives / Mission of Maruti Udyog Limited are:-

1. Modernisation of Indian Automobile Industry. 2. Developing cars faster and selling for less. 3. Production of fuel- efficient vehicles to conserve scarce resources. 4. Production of large number of motor vehicles which are necessary for the

Economic Growth. 5. Market penetration, Market developments, similar product development and

diversification. 6. Parter relation management, value chain, value delivery networks.

Core Values :- Customer Obsession Fast, Flexible and First Mover Innovation and Creativity Networking and Partnership Openness and Learning

Company Board Of Directors

  Mr. R. C. Bhargava   Mr. Shinzo Nakanishi  Mr. Manvinder Singh Banga

Chairman Managing Director and CEO

Director

  Mr. Amal Ganguli   Mr. D. S. Brar   Mr. Keiichi Asai

Director Director Director & MEO(Engineering)

Mr. Osamu Suzuki   Mr. Shuji Oishi   Ms. Pallavi Shroff

Director Director & MEO (Marketing & Sales)

Director

Mr. Kenichi Ayukawa   Mr. Tsuneo Ohashi    

Director Director and Managing Executive Officer (Production)

Type & ownership Pattern

Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have a tenure of five years

R.C. Bhargava was the initial managing director of the company since the inception of the joint venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in 1982 he held several key positions in the company before heading the company as Managing Director. Currently he is on the Board of Directors.] After completing his five year tenure, Mr. Bhargava later assumed the office of Part-Time Chairman. The Government nominated Mr. S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited as General Manager. In 1987 he was promoted as Chief General Manager. In 1988 he was named Director, Productions and Projects. The next year (1989) he was named Director of Materials and in 1993 he became Joint Managing Director.

Organizational Structure

DIVISIONS AND DEPARTMENTS

Corporate Services Division

•Legal & Secretarial Department•Corporate Communication Cell•Protocol•Strategic Initiative Group

•Recruitment & Management Compensation

Human Resource Division•Employee Relations Department•Establishment & Time Office•Factory Administration Department•Organizational Development Department

Production Division

•Plant- 1•Plant- 2•Plant- 3•Plant- 6 at Manesar

Production Engineering•Production Engineering Division•Production Service Division

Engineering Directorate•QAIN Division•Service Division•Service- 1-5•MSS(D)•Parts Inspection Division•Engineering Division

Supply Chain division•Supply Chain- 1,2,3 Division•Shipping & transport Department•Imports Department•Consumables Department

Information Technology Division

•Application Group1 (AG1)•Application Group2 (AG2)•Application Group3 (AG3)•Information Technology Strategies(ITS)•IT Operation and Services(ITOS)

Marketing & Sales Secretariat

•Marketing Strategy & Development•Marketing•Sales•Exports•Web-IT, E-Commerce

Spare Parts Division•Spare Parts Procurement•Warehousing & Dispatch•Spare Parts Sales•Accessories

Vigilance Division•Security Wing•Vigilance Wing

Finance Division•Budget, Cost & Accounts Department Income

Production Layout

THE GURGAON AND MANESAR PLANTS

Maruti Suzuki Gurgaon plant, where the company started operations in 1983, has a capacity of producing seven lakh units per annum and the Manesar Plant commissioned in February 2007, has a capacity of three lakh units. Together the two facilities make a combined capacity ofApproximately 10 lakh units per annum. However, with a continued focus on enhancing flexibility in our operations between Gurgaon & Manesar Plants and with the introduction of unique facility called as flexible assembly lines, we have been able to produce well above our capacity. Maruti Suzuki continues to be the leader in introducing various path breaking innovations offering a wide range of fourteen models including the premium luxury sedan Kizashi. The vast range of Maruti Suzuki cars extends to over two hundred variants across a wide spectrum of features and prices. The company has half of the market share in the passenger car segment. lt has also helped hundreds of small and large associated businesses to realize their dreams. Maruti Suzuki continues to dream of a brighter future.

Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles annually but productivity improvements have enabled it to manufacture 700,000 vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-

house. The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy, Ertiga and Eeco.

Manesar Manufacturing Facility

The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The Manesar Plant produces the A-star, Swift, Swift DZire and SX4.

MSIL, GURGAON

MSIL, MANESAR

PRODUCTION MILESTONES

1st vehicle produced on 14th December, 19831,00,000 vehicles produced by August, 19865,00,000 vehicles produced by June, 199010,00,000 vehicles produced by March, 1 99415,00,000 vehicles produced by April, 199620,00,000 vehicles produced by October, 199725,00,000 vehicles produced by March, ,l99930,00,000 vehicles produced by June, 200035,00,000 vehicles produced by December, 200140,00,000 vehicles produced by April, 200345,00,000 vehicles produced by April, 200450,00,000 vehicles produced by April, 200555,00,000 vehicles produced by February, 200660,00,000 vehicles produced by December, 200665,00,000 vehicles produced by Augusi, 200770,00,000 vehicles produced by March, 200880,00,000 vehicles produced by July, 200990, 00,000 vehicles produced by May, 20101,00,00,000 vehicles produced by March,

Production process

STEEL COILS

BLANKING

PRESSING

WELDING

PAINTING

FROM VENDOR

FROM VENDOR

ASSEMBLY

FROM VENDOR

VEHICLE INSPECTION

TEST RUN

SUPPLY & DISPATCH

Organisational Policies

Recruitment and Selection Process Of Maruti Suzuki

Meaning of recruitment It is a process of searching the potential candidate and offers him or her the job. It is positive in nature in the Indian context. Process of identifying and hiring best qualified candidate for a job vacancy in a most timely and cost effective manner.

Meaning of Selection It is the process of searching the potential candidate. It is negative in nature in the Indian context but positive in U.S context.

Steps involved in the Selection Process Selection process consists a series of steps and at each stage facts may come into light that may lead to rejection of the application of the applicants. It is a series of successive hurdles or barriers which an applicant must have to cross.

A) Preliminary Interview (Screening Applications) :- Initial screening is done to weed out totally undesirable or unqualified candidate at the outset. It is essentially a sorting process in which prospective candidate are given necessary information about the nature of the job and the organisation at the same time, the necessary information is also elicited from the candidate about their education, skills, experience, salary expected and the like . It helps to determine whether it is worthwhile for a candidate to fill up the application form.

B) Application Form :- Application form is a traditional and widely used device for collecting information about the candidate. It should provide all the information relevant to selection, where reference for caste, religion, birth place, may be avoided as it may be regarded an evidence of description.

C) Selection Test :- Psychological test are being increasingly used in employee selection where a test may evolve some aspects of an individual’s attitude , behaviour and performance. Tests are useful when the number of applicants is large as at the best it reveals that the candidate who scores above the predetermined cutoff points are likely to be more successful than those scoring below the cut off points.

D) Employee Interview:- Interview is an essential element of selection and no selection procedure is complete without one or more personal interview, where the information collected through application letter or application forms and test can be crossed checked in the interview.

E) Medical Examination :- Applicants who have crossed the above stage are sent for the physical medical examination either to the company’s physician or to a medical officer approved for the purpose . Such examination serves the following purpose :-

1) It determines whether the candidate is physically fit to perform the job where those who are physically unfit are rejected.

2) It prevents the employement of people suffering from contagious diseases.

3) It identifies candidate who are are otherwise suitable but requires specific job due to physical handicaps and allergies.

F) Reference Checks :- The applicants are asked to mention in his application form, the names and address of two or more persons who knows him very well. These may be their previous employer , heads of educational institution or public figures. These people are requested to give their opinion about the candidate without incurring any liabilities.

G) Final Approval :- In most of the Organisations, selection process is carried out by the Human resource department, where the decision of the departments arerecommendatory. The candidate shortlisted by the department are finally approved by the executive of the concerned department or the unit.

H) Employment :- Employment is offered in the form of an appointment letter mentioning the post, the rank, the salary, grade, the date by which the candidate should join and other terms and condition in briefs.

I) Induction :-The process of receiving employee when they begin work introducing thm to the company and to their colleagues and informing them of the activities, customes and traditions of the company is called “ induction”.

J) Follow ups :- All selection should be validated by follow ups, it is a stage where employee is asked how he or she feels about progress to the date and the worker’s immediate supervisor is asked for comments which is compared with the notes taken at the time of selection.

Training and Devlopment Programs of Maruti Suzuki TRAINING & DEVELOPMENT

Annual Training Plan - All Levels

Training customised to meet Organisational Objectives

Topics selected based on Vision, Values & Departmental Feedback of Company-wide Managers

Competency Mapping to identify Individual Training Needs

Technical Training on latest Technologies abroad at SMC, Japan

STRONG FOCUS ON TRAINING INITIATIVES

- Build a Learning Organisation

- Continuous Value Additions to Professional Skills

- Customised Training

- Training to the personnel of Business Partners

Overseas training Training held in co-ordination with SMC, Japan and AOTS (Assoc. for Overseas Tech. Scholarship) (covered 1600 employees under the various schemes)

6 months SMC Training for Technicians - OJT in SMC, Japan (2 batches/yr of 50 each)

9 months Javada Training for Press, Tool & Die Specialists - Design & Maintenance

AOTS Managerial Training (4-10weeks) for Manager & above - Managerial Best Practices

AOTS Technical Training (3.5 to 6 months) for Supervisors & above - Technological Knowhow

R & D Training (2 yrs.) - Research on new Technologies

Chapter 2:-

Industrial Analysis

Industry Overview –(Growth rate of Industry, Contribution to GDP

Growth rate

FACTS: The Automotive Industry in India is one of the largest industries and a key sector of the economy. The Indian automotive industry started from 1991with the government’s de-licensing of the sector and subsequent opening up for 100 per cent FDI through automatic route. Since then many large global companies have set up their facilities in India taking the production of vehicle from 2 million in 1991 to 9.7 million in 2006. At present, India is the world's

Largest tractor and three-wheel vehicle producer. Second largest two-wheel vehicle producer. Fourth largest commercial vehicle producer. Eleventh largest passenger car producer.

 Production: According to the Society of Indian Automobile Manufacturers, the Indian automobile industry has reached double-digit growth for the past three years in a row. In 2006, the industry produced 10.9 million vehicles, an increase of 16.22% over 2005. In 2005, production grew 14.5% over the previous year. The production of the automotive industry is expected to achieve a growth rate of over 20 per cent in 2006-07 and about 15 per cent in 2007-08. 

Exports: the cumulative annual growth rate of automotive exports during the period 2000-01 to 2005-06 was 32.92 per cent. Exports during 2006-

2006 and 2007-2008 are expected to grow over 20 per cent. Imports: Europe is the biggest importer of cars from India, while African nations largely account for the import of buses and trucks. China is most recently making inroads into this market.  The South-East Asian region is the prime destination for Indian two wheelers.

Sales:

Passenger Vehicles: Growth in sales of passenger vehicles was 18.45% in 2006.  This was almost three times the growth witnessed in 2005. Sale of passenger cars expanded by 20.0%. Export of passenger vehicles increased by 12.9%

Utility Vehicles: 12.4% Two-wheelers, commercial vehicles and three-wheelers: Export

growth at a rate of 24%, 26% and 72% respectively.

Investment: Among the car companies that are investing in India are US automakers General Motors and Ford, Germany's BMW and DaimlerChrysler AG, France's Renault, Japan's Suzuki, Toyota and Honda, and South Korea's Hyundai. There is also a boom in auto ancillary companies. India is an attractive outsourcing destination for global auto companies because of its strong engineering skills and low costs. Sourcing parts from India is 10-20% cheaper for US auto makers and about 50% cheaper for their European counterparts. Auto Components:

This industry grew by over 28 percent between 1995 and 1998, and has been sustaining double digit growth, clocking 16 percent in 2004-05, and 15 percent in 2005-06.  The Indian auto component industry is quite comprehensive with around 500 firms in the organized sector producing practically all automotive components; there are more than 10,000 firms total. India’s component industry now has the capability to manufacture the entire range of auto-components, for example, engine parts, drive, transmission parts, suspension and braking parts, electricals, body and chassis parts, equipment, etc The Industry's Challenge: 

Even though the automotive industry is robust, car manufacturers are complaining that the government's frequent change in policies is not encouraging the industry. Changing the policies and guidelines frequently severely hurts the companies’ plans. It also affects investment decisions in the country 

Future Plans: The Government has prepared a ten-year Automotive Mission Plan (AMP) to draw a future plan of action and remove obstacles in the way of competition, such as that required infrastructure be put in place well in time to alleviate its constraining impact on the growth. The plan envisages a tax holiday for the industry on investments exceeding $225,000, 100% tax deductions of export profits, and deductions of 50% on foreign-exchange earnings. It also calls for a one-stop clearance for foreign-direct-investment proposals in the sector and deductions of 30% of net income for 10 years for new industrial undertakings. To bring down the cost of power and fuel, which accounts for 6% of the manufacturing costs in the auto sector, captive power generation would be encouraged to enable industries to access reliable, quality and cost-effective power.

Contribution to GDP

At present time, Indian automobile industry is making a major contribution in increasing the country's GDP by 9% every year. New heights has been scaled by the industry in the year 2010. In January 2010, total automobile sales in the domestic market reached 1114157 units, the figures shows an increment of 44.9% compared to the sales units of 7,68,698 of same period last year. Even for the month of April-October after a gap of 11 years, total automobile sales in India stood at 1,120,081 Units. Annually, the Indian automobile industry is growing at an average rate of 30% and marking itself as one of the fastest growing industries in India. According to the reports of Society of Indian Automobile Manufacturers, annual car sales are estimated to reach 5 million vehicles by 2015 and more than 9 million by 2020 To believe New York Times reports, several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki have expanded their manufacturing facilities owing to India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars. 

The following statistics explains the market share of different vehicles in the Indian automobile Industry. This data is valid for the Indian domestic market only.Passenger Vehicles : 15.86%Commercial Vehicles : 4.32%Three Wheelers : 3.58%Two Wheelers : 76.23%Production Rate Statistics 

The production of automobiles in India has greatly increased in the last decade. At present India is the largest tractor and three-wheel vehicle producer, second largest two-wheel vehicle producer, fourth largest commercial vehicle producer and eleventh largest passenger car producer. For the year 2003-2004 the

production rate crossed 7,243,5648 and for the current year it has reached 14,049,830 in terms of total vehicles production. As a result of all this, the resultant annual turnover of the Indian automobile industry for the year is recorded to be 38,238 million USD by Soceity of Indian automobile Manufacturer (SIAM). For the year 2009-10, the production rate for different category of vehicles is as followed(As per SIAM) 

Passenger Vehicles : 2,351,240Commercial Vehicles : 566,608Three Wheelers : 619,093Two Wheelers : 10,512,889Grand Total : 14,049,830 

Export Market Statistics 

Last year, India's automobile exports had reached $4.5 billion and a consistent export growth rate can be estimated in the year 2010 also with the estimation that it will cross $12 billion by 2014. As per the SIAM records automobile exports have under gown a growth of 22.30 percent during the current financial year. United Kingdom is largest export market for India's automobile industry followed by Germany, Netherlands and South Africa. In the year 2009-10, India has made a huge profit by exporting 1,804,619 no. vehicles. Different brands are utilizing the Indian automobile engineering expertise to manufacture and export maximum no. of vehicles from their Indian plants. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. Listed below is the statistics showcasing export sales rate of Indian automobile industry for the year 2009-10. 

Passenger Vehicles : 446,146Commercial Vehicles : 45,007Three Wheelers : 173,282Two Wheelers : 1,140,184Grand Total : 1,804,619 

Domestic Market Statistics 

Even in the domestic market, the automobile industry is experiencing tremendous success. As per statistics launched by Society of Indian Automobile Manufacturers (SIAM), there has been a growth of 32.28% in the domestic car sales, justified from the January 2010 sales 145,905 units against the 2009 sales of 110,300 units. The Commercial Vehicles segment grew marginally at 4.07 percent. While Medium & Heavy Commercial Vehicles declined by 1.66 percent, Light Commercial Vehicles recorded a growth of 12.29 percent. Listed below is the statistics showcasing domestic market sales rate of Indian automobile industry for the year 2009-10. 

Passenger Vehicles : 1,949,776Commercial Vehicles : 531,395Three Wheelers : 440,368Two Wheelers : 9,371,231Grand Total : 12,292,770 

Current Issues  

Manesar plant problem is political issue: Maruti Suzuki

photo shows workers shouting slogans during a strike at Maruti's Manesar plant

Terming the labour problem at its Manesar plant as a “political issue”, car-maker Maruti Suzuki India on Thursday said it will not compromise on its established norms for industrial relations while attempting to resolve the disturbance.

“My understanding is that the Manesar labour problem is essentially a political issue and not a problem which involves any significant demand from the workers,” Maruti Suzuki India (MSI) Chairman R.C. Bhargava said at the company’s 30th Annual General Meeting here.

Since it is a political problem, its resolution will be based on Maruti’s established principles for industrial relations, he added.

“We do not intend to compromise on that. We have been talking to the workers and we have made it clear to them that we will not compromise,” Mr. Bhargava said.

The company, however, expect to sort out the issue at the earliest possible, he added.

Production has been severely hit at the first plant in Manesar since August 29 when the management prevented workers from entering the unit without signing a ‘good conduct bond’ after alleged “sabotage” and deliberate quality compromise on cars.

The workers, however, said the management was taking the steps in “revenge” for a 13-day strike in June demanding the recognition of a new union — the Maruti Suzuki Employees Union (MSEU) — at the plant located in Haryana.

During the first two days of the stand-off, MSI dismissed five permanent workers. In addition, it suspended 26 permanent workers and discontinued the services of another 18 trainees on charges of sabotage and causing quality problems in cars.

The plant has a total of about 2,500 workers, of which 950 are regular employees.

On average, the firm produces about 1,200 units of its Swift, A-Star and SX4 cars every day from the plant, where the labour troubles are centred.

Although limited production is going on, the loss suffered by MSI since the trouble surfaced is estimated at about 8,550 units, valued at about Rs 425 crore, as of September 7.

Earlier, in June, a 13-day strike demanding the recognition of the MSEU at the Manesar plant crippled output, with the company witnessing a production loss of 12,600 cars, valued at about Rs 630 crore.

Commenting on the domestic market situation, Mr. Bhargava said there has been a slowdown due to the cyclical nature of the automobile industry, which has been compounded by high interest rates and fuel prices.

“In the festive season, the market should move up and next year, it will be much better,” he added.

Mr. Bhargava also said the lack of a proper auto fuel policy, especially regarding the pricing of diesel, has prevented auto companies from investing on engine plants.

In the absence of a clear roadmap on how diesel prices would be placed in future, he said MSI has been unable to decide on whether to invest on increasing production capacities for diesel or petrol engines.

Maruti to start recruiting new workers for Manesar plant

Manufacturing of cars under way on the production line at Maruti Suzuki's Manesar plant

Encouraged by support from Haryana labour authority and its parent Suzuki Motor Corp in the ongoing tussle with workers at the Manesar plant, Maruti Suzuki India is understood to be planning to recruit new permanent employees to replace the existing ones.

With no signs of an end to the standoff that started on August 29, the company has decided to give the current workers time till Monday to sign the “good conduct bond” before replacing them with new workers.

“From Tuesday onwards the company will start hiring trained technicians, who will be on the permanent rolls, to replace the current workers who refuse to sign the bond,” a source close to the management said.

When contacted MSI spokesperson declined to comment.

Production has been severely hit at the first plant in Manesar since August 29 when the management prevented workers from entering the unit without signing a ‘good conduct bond’ after alleged “sabotage” and deliberate quality compromise on some cars.

The bond required the workers to declare that they would “not resort to go slow, intermittent stoppage of work, stay-in-strike, work-to-rule, sabotage or otherwise indulge in any activity, which would hamper the normal production in the factory”.

So far, 81 workers have signed the bond but majority of them have refused to sign it. MSI has about 2,500 workers at the first plant in Manesar and around 1,000 of them are permanent.

During the first two days of the stand-off, MSI dismissed five permanent workers. In addition, it suspended 26 permanent workers and discontinued the services of another 18 trainees on charges of sabotage and causing quality problems in cars.

Last evening, Haryana Labour Commissioner Satwanti Ahlawat said that the good conduct bond, which the company management is insisting its workers at Manesar plant to sign, is as per rules.

“Whatever the bond that the management (MSI) is asking its workers to sign is as per rule and workers will have to sign it,” she told PTI, adding the state labour department was persuading the workers to rejoin work as soon as possible.

Besides, MSI’s parent Suzuki Motor Corp (SMC) has also stood behind the company with Chairman Osamu Suzuki ruling out any compromise on discipline.

Suzuki had told representatives of Maruti Udyog Kamgar Union (MUKU), the elected union of Maruti Suzuki India (MSI) that the management of the Indian arm would not accept any indiscipline in the company.

“Indiscipline is not tolerated... not in Japan, not in India. It is never in the interest of any company and its people,” Mr. Suzuki said.

Strike at Suzuki Powertrain affects Maruti Suzuki’s production

Casual workers of Maruti Suzuki India's Manesar plant protesting against the management's decision

to not allow them to join duty in front of the plant gate 

The country’s largest car-maker Maruti Suzuki India today said the production at its plant in Gurgaon has been impacted due to strike at Suzuki Powertrain India Ltd (SPIL), which supplies engines to MSI.

The production loss is estimated to be around 1,000 vehicles a day at the plant due to the ongoing labour unrest.

“Supply of diesel engines and also transmissions from Suzuki Powertrain India Limited (SPIL) has stopped. As a result, the company’s (MSI) Gurgaon plant is likely to produce around 1,800 vehicles today (against the normal 2,800 units),” MSI said in a statement.

On law and order situation at its Manesar plant, MSI said: “The plant (in Manesar) is effectively captive in the hands of striking workers who are bent upon violence.”

They have indulged in random acts of violence like beating up company managers, supervisors and those co-workers who are not supporting the strike, the statement alleged.

“They have also damaged equipment and property. In the situation, production remains at a standstill in the plant,” it added.

On Sunday, MSI had dismissed 10 workers, terminated five trainees and suspended 10 employees in connection “with the strike and violence at the Manesar factory premises“.

Workers at the Manesar plant went on stay-in strike on Friday afternoon affecting production. The total number of workers who went on the stay-in strike inside the Manesar plant was around 2,000. This included all categories like regular, contractual, apprentices and trainees.

“The illegal strike by the workers, and the violence, violate the agreement signed by the workers with the company management on October 1, in the presence of the Haryana government,” MSI alleged.

Meanwhile, workers’ strike at Suzuki Motorcycle India Pvt Ltd (SMIPL) continued. Workers at SMIPL are on strike in support of agitating colleagues at MSI’s Manesar factory.

“The strike at SMIPL continues and no production is taking place,” Suzuki Motorcycle India Employees Union President Anil Kumar said.

Maruti Suzuki lower sales growth forecastPosted by Jayashankar Menon  10 mnths ago

Maruti Suzuki India Ltd (MSIL), the country’s largest car maker, has had its sales growth target for the current year lowered from the earlier projection of 13 per cent to eight per cent. That would bring sales to 1.18 million vehicles in 2011-12, a BS report said.

A Reuters report from Tokyo on Thursday, Osamu Suzuki, CEO of Suzuki Motor Corporation, the parent company, is quoted by the report as saying: “With inflation and other issues, a decision was made to lower the sales growth forecast. I personally think a five percent rise would be about right.”

Maruti sold 1.13 million vehicles, posting growth of 30 percent, in 2010-11. The company had a market share of about 45 percent. If one assumes the passenger vehicle segment would grow at 14-16 percent (the revised forecast of Siam, the Society of Indian Automobile Manufacturers), at a growth rate of eight percent, MSIL's market share would fall to around 42 percent this year, the report stated.

Rising interest rates and high fuel prices have been taking a toll on automobile companies over the past two months. After recording a scorching growth rate of 29 percent in 2010-11, the passenger car industry slowed to a twenty-month low at seven percent growth last month. Auto makers sold 158,817 cars in May, compared with 148,425 units in the year-ago period, the report continued.

MSIL reported four percent growth in domestic sales at 93,519 units. But its bread-and-butter compact car segment, sensitive to fuel prices and interest rates, reported a fall of three per

cent. A senior executive said, “Rising interest rates and increase in the price of petrol have made consumers defer purchases, specially at the entry level. The conversion rate in the industry has come down to 15 percent from the earlier recorded 20 percent.”

SIAM has revised its yearly growth forecast for passenger vehicles from 16-18 percent to 14-16 percent. This, it says, is subject to further change if the situation does not improve. Car makers agree. MSIL had, earlier this month, said even this may not be achievable. Passenger vehicle sales have risen eleven percent in the past two months. For the target to be met, the growth has to be over 18 percent in the remaining months of the year. This, say officials, is difficult. Maruti Suzuki shares closed at Rs 1099.8 a piece, down by 1.7 percent on the Bombay Stock Exchange, added the report.

Key competitors

Tata Motors

Hyundai

Ford

FIAT

General Motors

Honda

Volkswagen

Nissan

Toyota

PESTEL ANALYSIS

POLITICAL ENVIRONMENT

• Indian government auto policy aimed at promoting an integrated, phased and conducive growth of the Indian automotive industry.

• Allowing automatic approval for foreign equity investment up to 100 per cent, with no minimum investment criteria.• Establish an international hub for manufacturing small, affordable passenger cars as well astractors and two wheelers.• Ensure a balanced transition to open trade at minimal risk to the Indian economy and localindustry.• Assist development of vehicles propelled by alternate energy sources.• Laying emphasis on R&D activities carried out by companies in India by giving a weighted tax deduction of up to 150 per cent for in-house research and R&D activities.• Plan to have a terminal life policy for CV along with incentives for replacement for such vehicles.• Promoting multi-modal transportation and the implementation of mass rapid transport systems.

ECONOMIC ENVIRONMENT

• The Indian economy has grown at 8.5 per cent per annum.• The manufacturing sector has grown at 8–10 per cent per annum in the last few years.• More than 90 per cent of the CV purchase is on credit.• Finance availability to CV buyers has grown in scope during the last few years.• The increased enforcement of overloading restrictions has also contributed to an increase in the number of CVs plying on Indian roads.• Several Indian firms have partnered with global players. While some have formed jointventures with equity participation, others have entered into technology tie-ups.• Establishment of India as a Manufacturing hub, for mini, compact cars, OEMs, and for autocomponents.

SOCIAL ENVIRONMENT

• Growth in urbanization, 4th largest economy by PPP index.• Upward migration of household income levels.• Increase in PPP, led to the increase in market share of compact cars.• 85% of Cars are financed in India (15% in China).• Cars priced below USD 12000 accounts for nearly 80% of the market.• Vehicles priced between USD 7000 –12000 form the largest segment in the passenger car market.• Indian customers are highly discerning, educated and well informed. They are price sensitive and put a lot of emphasis on value for money.• Preference for small and compact cars. They are socially acceptable, even amongst the well-off.• Preference for fuel efficient cars with low running costs. The Tata Indica has the lowestrunning cost at US 8.5 cents per mile.

TECHNOLOGICAL ENVIRONMENT

• With the entry of global companies into the Indian market, advanced technologies, both in product and production processes have developed.• With the development or evolution of alternate fuels, hybrid cars have made entry into the market.• Few global companies have setup their R&D centres in India.• Major global players like Audi, BMW, Hyundai etc. have setup their manufacturing units in India.• Government initiatives regarding tax rebates have led to global players setting up their R&D centres in India. Govt. initiatives in establishing NATRIP network across the country will further lead to enhancing R&D and technological advancements.

ECOLOGICAL ENVIRONMENT -Physical infra structure such as roads and bridges affect the use of automobiles. If there is good availability of roads or the roads are smooth then it will affect the use of automobiles.-Physical conditions like environmental situation affect the use of automobiles. If the environment is pleasant then it will lead to more use of vehicles.-Technological solutions helps in integrating the supply chain, hence reduce losses and increase profitability.-With the entry of global companies into the Indian market, advanced technologies, both in product and production process have developed.-With the development or evolution of alternate fuels, hybrid cars have made entry into the market.-Few global companies have setup R&D center in India.-Major global players like Audi, BMW, etc. Have setup their manufacturing units in India.

LEGAL ENVIRONMENT

-Legal provision relating to environmental population by automobiles.-Legal provisions relating to safety measures.-Confirms the government‘s intention on harmonising the regulatory standards with therest of the world.-Indian government auto policy aimed at promoting an integrated, phased and conductive growth of the Indian automobile industry.-Establish an international hub of manufacturing small, affordable passenger cars.

Porters five forces model of competition –Michael Porter

Michael Porter identified 5 forces that determined the long run attractiveness of a business. We would analyze Porter‘s five forcesin context of the Maruti Suzuki

Threat of New Entrants: IncreasingAlthough most of the major global players are present in the Indian market; few more are expected to enter due to the welcoming government policies and expected retaliation.

Threat of Substitutes: Low to Medium Maruti Suzuki faces serious threat from consumer shifting to hybrid or electric cars. Currently, the electric car market in India is dominated by sole player Reva Electric Car Company. However brands like Tata Motors, Chevrolet and Nissan are also planning to launch their electric car this year.

Bargaining power of Supplier: Low Automakers are the key to the supply chain of the automotive industry. Maruti Suzuki has manufacturing units where engines are manufactured and parts supplied by first tier tier suppliers and second tier suppliers are assembled. There are a large number of automobile component suppliers whose switching costs are very high. Thus reducing the bargaining power of the suppliers.

Bargaining power of buyers: IncreasingToday, consumers are considered kings in the automobile market. There is an increasing awareness among them and they are given a humongous number of choices. Buyers get incentives in the form of cost discounts and better after sales services. This further increases the bargaining power of the buyers.

Competitive Rivalry: HighCompetition in certain segments is very high e.g., small and mid car segment. Brands like Hyundai, Chevrolet, Tata and Skoda have given huge competition to Maruti Suzuki. In the recent past Volkswagon, Honda, Ford have also given competition to the premium car segment.

Chapter 3:-

Marketing Strategies

PRODUCTS OF COMPANY

800 (Launched 1983)

Omni (Launched 1984)

Gypsy (launched 1985)

WagonR (Launched 1999)

Alto (Launched 2000)

Swift (Launched 2005)

Estilo (Launched 2009)

SX4 (Launched 2007)

Swift DZire (Launched 2008)

A-star (Launched 2008)

Ritz (Launched 2009)

Eeco (Launched 2010)

Alto K10 (Launched 2010)

Grand Vitara

4 Ps (Product: Price, Place & Promotion)

PRODUCT Product mix involves planning, developing, and producing the right types of products and services to be marketed by the firm. It deals with the product range, durability and other qualities. Apart from producing right products, emphasis should also be laid on their branding, packaging, colour and other features. In short product planning and development involves decision about : i) quality of the product, ii) size of the product, iii) design of the product, iv)

volume of the production, v) packaging, vi) warranties and after sale service, vii) product testing, viii) product range, etc.

Products Offered by Maruti Suzuki Maruti Suzuki comes with a large number of products i.e cars ranging from economy cars to luxury cars to super SUV’s. The economy cars includes :-

A) Maruti 800 B) Alto C) Zen Estilo D) Wagon R E) A - Star F) Ritz G) Swift H) Swift Dzire

The Utility Cars of Maruti Suzuki includes :- A) Maruti Omni (Van) B) Maruti Eeco C) Maruti Gypsy D) Grand Vitara

The Luxury Cars of Maruti Suzuki includes :- A) Maruti Esteem B) Maruti SX4

PRODUCT YEAR IN WHICH LAUNCHED Maruti Suzuki 800 1983 Maruti Suzuki Omni 1984 Maruti Suzuki Gypsy 1985 Maruti Suzuki Alto 2000 Maruti Suzuki Wagon R 2002 Maruti Suzuki Swift 2005 Maruti Suzuki SX4 2007 Maruti Suzuki A Star 2008 Maruti Suzuki Swift Dzire 2008 Maruti Suzuki Zen Estilo 2009 Maruti Suzuki Eeco 2010

PRICES Car market leader Maruti Udyog Limited has announced a marginal increase in price of certain models. .The price increase is due to rise in input costs and freight costs, which increased following the rise in oil prices. In this phase, the company has decided to pass on only a part of the increase in costs to the customers. There is no change in the prices of Swift, Zen, and WagonR (Petrol).

Ex-Showroom Prices in Delhi (in Rs) :- Models Prices (Rs.)

Maruti Suzuki 800 1,94,620Maruti Suzuki Omni 2,09,757Maruti Suzuki Alto 2,28,982Maruti Suzuki Eeco 2,84,488Maruti Suzuki Zen Estilo 3,31,412Maruti Suzuki Wagon R 3,39,058Maruti Suzuki A Star 3,63,220Maruti Suzuki Ritz 4,09,822Maruti Suzuki Swift 4,27,635Maruti Suzuki Swift Dzire 4,96,671Maruti Suzuki Gypsy 5,28,818Maruti Suzuki SX4 7,08,062Maruti Suzuki Grand Vitara 17,19,226

In Price case They provide a list of different types of models of cars They also gives a discount in the range of 20 % to 25 %.

PLACE The Place of Maruti cars is in the whole world. Maruti Udyog Limited decides its distribution channel for selling cars like some time or level or sometimes two

levels marketing channels. They decide area in which they deal customers. They show the permanent location for selling the cars. They provide many useful inventory they define the transport facility of the company to the market and market to the customers. Many showrooms of MUL are there in our India.

PROMOTION Main Promotion of Maruti Suzuki cars is done by the advertising. The advertising is mainly done in the form of different Television channels , different newspapers, holdings etc. Now a days the main promotion is done by the brand Ambassador such as film stars, celebrities, sportsmen etc. and in this case they decide their actual and equired sales force for selling their cars. They also maintain customer relation and they do direct marketing.

STP (Segmentation, Targeting and Positioning) SEGMENTATION

Meaning of segmentation :- Market segmentation is the process of dividing a potential market into distinct sub- markets of consumers with common needs and characterstics. Market segmentation is the starting steps in applying the marketing strategies. Once the segmentation takes place , the marketers targets the identified customer groups with proper marketing- mix so as to position the products/ brands/ company as perceived by the target customer.

Objectives of Segmentation :- The main objective of segmentation is to provide those products to the customer they can :-

1. Satisfy their basic needs 2. Solve their problem 3. Make themselves feel good

Segmentation of Market by Maruti Suzuki:- Maruti Udyog Limited was set up to manufacture low price cars that can be afforded by the Indians but after 1990 that means after the globalisation ( i.e opening of Indian economy for rest of the world) many competitors started in enter the Indian market . Further with the develoment of the Indian economy the income of the peoples of India also increased and people started to afford luxury cars also. They have also catogorised their cars into different segments depending upon the choices of different peoples depending upon their income and other behaviours and these segments are :-

Mini hatch back segment or A1 segment :-

Maruti 800

Compact hatchback segment or A2 segment :-

Maruti Alto Zen Estilo Wagon R A – Star Swift

Mid size segment or A3 segment :-

Maruti Esteem

SX4

Utility Vehicle or MUV :-

Maruti Eeco Maruti Gypsy Grand Vitara

Positioning Meaning :- Market positioning means placing the potential product in the market that can satisfy the needs and requirements of the target customers.

Positioning of products by Maruti :- Management of Maruti’s always tries that their products should be available at the authorised outlets in every city of India. In case of any new product they tries to make it available at every outlets in metropolitian cities and by getting the response of customers they increases the production and extends the availability in urban , semi urban and to the rular areas also.

Other Strategies adopted by Maruti Suzuki

After Sale service :- As on date there are 342 Maruti dealer workshops and 1,545 Maruti Authorised Service Stations, or MASSs, covering 898 cities in India. In addition, 24-hour mobile service is offered in 38 cities under the brand “Maruti On-road Service”. They intend to extend this service to an additional 25 cities over the next three years. As a benchmark for dealers with respect to service quality and infrastructure facilities, they have launched service stations under the brand “Maruti Service Masters, or MSMs, in three locations in India. They have service stations on 30 highways in India under the brand “Express Service Stations”. To promote sales of their spare parts and the availability of high quality, reliable spare parts for their products, they sell spares under the brand name “Maruti Genuine Parts”, or MGP. These are distributed through their dealer network and through authorised sellers of their spare parts, to whom they refer as stockists. Many of their MASSs are at remote locations where they do not have dealers. In order to increase the penetration, in terms of sales volumes, of their products in these remote areas, they are exploring opportunities to integrate some of the MASSs into the sales process in order to increase sales of their cars and related products and services such as spares and accessories, insurance and financing.

Genuine Accessories They have also entered the business of marketing car accessories under the brand name “Maruti Genuine Accessories”, or MGA, through their dealership network. They seek to provide customers with the opportunity to customize their vehicles with accessories such as music systems, security systems, car-care products and utility products.

Warranty and Extended Warranty Program They offer a two-year warranty on all their vehicles at the time of sale. Their dealers are required to address any claim made by a customer, in accordance with practices and procedures prescribed by them, under the provisions of the warranty in force at that time. The dealers subsequently claim the warranty cost from them. They analyse warranty claims from dealers and either claim the cost from vendors, in the case of defective components, or bear the cost ourselves, in the case of manufacturing defects.

They offer an extended paid-warranty program marketed under the brand, “Forever Yours” for the third and fourth year after purchase. They have entered into arrangements with insurance companies to cover the costs of warranties offered under this program. The extended warranty program is intended to maintain the dealer’s contact with the customer and increase the revenue generated from sale of spares, accessories and automobile-related services. An effort is made during the period of the extended warranty to encourage the customer to exchange his existing Maruti car for a new Maruti car, or upgrade to a new Maruti car.

New business Initiatives

As the largest manufacturer and leader in the small car segment, they continually seek new ways to utilize their vast car parc, range of products and extensive sales and service network to expand the size of the passenger car market in India. They have recently launched new initiatives to develop the market for automobile insurance, automobile finance, leasing and fleet management, and pre-owned cars. They aim to provide customers with a “one-stop shop” for automobiles and automobile-related products and services, and build on their wide customer base and extensive sales and service network to make available to their customers a wide range of Maruti-branded services at different stages of ownership, which they refer to as the “360 degree customer experience”.

Atithi Devo Bhava: One-stop shop Inspired by the spirit of India. Atithi Devo Bhava, in Sanskirit, means “a guest is like God”. It captures the Indian tradition of honouring guests. It's also the inspiration for the welcome you’ll receive at a Maruti Suzuki dealership, and the caring relationship they share with those who drive their cars. At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management. services, exchange Maruti Suzuki is set to provide a single window solution for all your car related needs. That’s why they have Maruti True Value, the best place to buy and sell reliable used cars . Maruti finance an agglomeration of the biggest finance companies in India brought together by Maruti Suzukito ensurethat the dream car is within everyone’s reach. Similarly Maruti Finance brings together some of the biggest names in the car insurance industryto provide insurance solution to every type of the car consumer.

Maruti Insurance :- It was launched in 2002. Maruti Suzuki provides vehicles insurance to its customers with the help of National Insurance Company , Bajaj Allianz , New India Assurance and Royal Sundaram. The service was set up by the company with the inception of two subsidiaries Maruti Insurance Distributors Pvt. Ltd. and Maruti Insurance Brokers Pvt. Ltd. The services started as a benefit or value addition to the customers and was able to ramp up easily. By December 2005 they were to sell more than two Million Insurance policies since its inception.

Maruti Finance :- To promote the bottom line growth Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Country wide with City Group and GE countrywide respectively to assist its clients in securing loans. Maruti Suzuki tied up with ABN Amro Bank , HDFC Bank , ICICI Limited , Kotak Mahindra , Standard Chartered and Sundaram to start this venture including its strategic partnership with SBI in March 2003. Since March 2003, Maruti had sold over 12,000 vehicles through SBI – Maruti Finance. SBI – Maruti Finance is currently available in 166 cities across India. “ Maruti Finance marks with coming together of the biggest players in the car finance business. They are the benchmark in quality and efficiency. Combined with Maruti volumes and networked dealership , this will enable Maruti Finance to offer superior services and competitive rates in the Market place”.

- Jagdish Khatter,

Managing Director of Maruti Udyog Limited Citycorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog Limited. Its primary business started by the company is “hire – purchase” financing of Maruti Suzuki Vehicles . Citi Finance India limited is a wholly owned subsidiary of City Bank Overseas Investment Corporation Delaware which inturn is a 100% wholly owned subsidiary of City Bank N.A. City Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital , HDFC and Maruti Suzuki together came in 1995 to form Maruti Countrywide. Maruti Claims that its finance program offers most competitive interest rates to its customers which are lower by 0.25% to 0.5% from the market rates.

Maruti True Value :-

Maruti True service offered by Maruti Suzuki to its customers. It is a market place for the used Maruti Suzuki Vehicles. One can buy ,sell or exchange used Maruti Suzuki Vehicles with the help of this service in India. As of 2009 there are 315 Maruti True Value Outlets.

Maruti Driving School:- As a part of its corporate social responsibility Maruti Suzuki launched the MarutiS Driving School in Delhi. Later the service extended to other cities of India as well. These schools are modelled on international standards, where the learners go through the classroom session and practical sessions. Many standards facilities like road behaviour and attitude are taught in these schools. Before driving actual vehicles participants are trained on stimulators.

TargetingMaruti Suzuki target market will be the low-level income group, middle class and bike owners. Bike owners are the most critical as large number of consumer cur rent ly   in   Ind ia t rave l   through b ikes.  Safety  hazards  o f   th is   type are tremendous considering the increasing number of accidents that occur due to unsafe bikes. With constant awareness and education about Maruti Suzuki affordability and safety features, this type of group could be acquired resulting in increase of brand loyal consumers. People are more aware and therefore, they are constantly m o r e   p a r t i c u l a r   w h e n   d e c i d i n g   w h i c h   c a r   t o  p u r c h a s e .   W i t h   s t r a t e g i c advertisement, consumers can be attracted with its latest features and a new image Maruti Suzuki will provide to owners.

Maruti Suzuki TARGET MARKET: GEOGRAPHIC SEGMENTThe major concern of Maruti Suzuki is to capture all the district headquarters of the country resulting in its coverage of almost all over the country.Maurti Suzuki TARGET MARKET: PSYCHOGRAPHICSWith new image Maruti Suzuki will provide to its buyers, owners will feel more confident and proud considering that Maruti Suzuki is an international organization with strong background resulting driving Maruti Suzuki a status symbol. Also safety and comfort are big factors of considerations in a consumers mind so Maruti Suzuki by focusing on these factors will attract safety and comfort conscious people. Seeing its potential, consumers will most likely shift to Maruti Suzuki..Maruti Suzuki TARGET MARKET: DEMOGRAPHICSPrimary Target market belongs to middle class, upper middle class and low earning income people in society, falling in income

bracket of below Rs. 50,000. Also the target will be people from 25

- 60year old who are major automobile buyers.

Distribution channelBasically there are two types of distribution channel available: Direct distribution and In-direct distribution.

Recommendation

Maruti Suzuki will adopt both distribution channels for distribution of car.

Use of Direct distribution:- Maruti Suzuki has its showrooms in major divisional headquarters; at these station Maruti Suzuki will use its direct distribution channel. Also it is recommended to increase direct distribution

coverage area by setting up showrooms in more areas to have better control over distribution.

Use of In-direct distribution:- In those areas where Maruti Suzuki doesn’t have its showrooms it will use its chain of authorized dealers to sell out its cars in these areas.

Promotion StrategiesAdvertising: Any non personal paid form of communication using any form of mass media.

Public relations: Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers

Personal selling: Selling a product service one to one

Direct Mail: Is the sending of publicity material to a named person within an organisation

Direct mail allows an organisation to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. By personalising advertising, response rates increase thus increasing the chance of improving sales.  Listed below are links to organisation who's business involves direct mail.

Internet Marketing: Promoting and selling your services online using various forms of online marketing techniques such as banner advertisments, videos or social media.

Sponsorship: Where you pay an organisation to use your brand or logo. This organisation usually has a high profile so that you know that your brand will be seen by a large audience. Most common use of sponsorship is with sporting events. The 2012 Olympics being held in London is being sponsored by a number of organisations such as Mcdonalds and Coca-Cola as the event will attract a world wide audience that will run into hundreds of millions.

Chapter 4:-

Financial Analysis

Sources of fundsMar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of FundsTotal Share Capital 144.50 144.50 144.50 144.50 144.50Equity Share Capital 144.50 144.50 144.50 144.50 144.50Share Application Money

0.00 0.00 0.00 0.00 0.00

Preference Share 0.00 0.00 0.00 0.00 0.00

CapitalReserves 13,723.00 11,690.60 9,200.40 8,270.9

06,709.40

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 13,867.50 11,835.10 9,344.90 8,415.4

06,853.90

RatiosMar '11 Mar '10 Mar

'09Mar '08

Mar '07

Investment Valuation RatiosFace Value 5.00 5.00 5.00 5.00 5.00Dividend Per Share 7.50 6.00 3.50 5.00 4.50

Operating Profit Per Share (Rs)

115.72 129.38 65.89 88.31 76.30

Net Operating Profit Per Share (Rs)

1,265.50

1,014.77 717.50 625.34

512.49

Free Reserves Per Share (Rs) 474.32 403.82 318.45 286.28

231.89

Bonus in Equity Capital -- -- -- -- --Profitability RatiosOperating Profit Margin(%) 9.14 12.74 9.18 14.12 14.88Profit Before Interest And Tax Margin(%)

6.24 9.73 5.62 10.70 12.74

Gross Profit Margin(%) 6.37 9.93 5.77 10.97 16.66Cash Profit Margin(%) 8.69 10.78 9.13 11.79 12.08Adjusted Cash Margin(%) 8.69 10.78 9.13 11.79 12.01Net Profit Margin(%) 6.13 8.34 5.72 9.34 10.29Adjusted Net Profit Margin(%)

6.13 8.34 5.72 9.34 10.22

Return On Capital Employed(%)

21.69 27.89 17.37 26.18 30.65

Return On Net Worth(%) 16.50 21.10 13.04 20.56 22.79Adjusted Return on Net Worth(%)

16.08 20.29 13.23 19.20 22.63

Return on Assets Excluding Revaluations

479.99 409.65 323.45 291.28

237.23

Return on Assets Including Revaluations

479.99 409.65 323.45 291.28

237.23

Return on Long Term Funds(%)

21.74 28.80 17.48 27.35 30.74

Liquidity And Solvency RatiosCurrent Ratio 1.47 0.91 1.51 0.91 1.40Quick Ratio 1.14 0.68 1.26 0.66 1.13Debt Equity Ratio 0.02 0.07 0.07 0.11 0.09Long Term Debt Equity Ratio 0.02 0.04 0.07 0.06 0.09Debt Coverage RatiosInterest Cover 126.04 105.39 34.21 40.93 61.01Total Debt to Owners Fund 0.02 0.07 0.07 0.11 0.09Financial Charges Coverage Ratio

167.58 130.02 48.06 50.46 68.23

Financial Charges Coverage Ratio Post Tax

136.33 100.18 38.75 39.57 49.76

Management Efficiency RatiosInventory Turnover Ratio 33.33 30.47 30.46 22.93 21.27Debtors Turnover Ratio 42.93 33.92 26.33 25.76 21.12

Investments Turnover Ratio 33.33 30.47 30.46 22.93 28.76Fixed Assets Turnover Ratio 3.13 2.82 2.38 2.48 6.32Total Assets Turnover Ratio 2.59 2.32 2.06 1.94 1.98Asset Turnover Ratio 3.13 2.82 2.38 2.48 2.41Average Raw Material Holding

10.01 10.66 13.21 9.33 12.36

Average Finished Goods Held

4.56 5.35 3.17 12.49 6.52

Number of Days In Working Capital

20.80 0.83 33.66 2.03 28.61

Profit & Loss Account RatiosMaterial Cost Composition 78.99 77.21 77.10 77.25 73.36Imported Composition of Raw Materials Consumed

11.99 12.89 11.70 10.84 12.62

Selling Distribution Cost Composition

2.62 3.12 3.56 3.10 3.37

Expenses as Composition of Total Sales

9.56 15.49 7.24 4.10 3.90

Cash Flow Indicator RatiosDividend Payout Ratio Net Profit

11.00 8.09 9.70 9.78 9.72

Dividend Payout Ratio Cash Profit

7.62 6.08 6.14 7.36 8.28

Earning Retention Ratio 88.72 91.59 90.44 89.53 90.21Cash Earning Retention Ratio

92.24 93.74 93.92 92.25 91.67

AdjustedCash Flow Times 0.10 0.25 0.36 0.41 0.35

Mar '11 Mar '10 Mar '09

Mar '08

Mar '07

Earnings Per Share 79.21 86.45 42.18 59.91 54.07Book Value 479.99 409.65 323.45 291.2

8237.23

Balance SheetBalance Sheet of Maruti Suzuki India

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of FundsTotal Share Capital 144.50 144.50 144.50 144.50 144.50Equity Share Capital 144.50 144.50 144.50 144.50 144.50Share Application Money

0.00 0.00 0.00 0.00 0.00

Preference Share Capital

0.00 0.00 0.00 0.00 0.00

Reserves 13,723.00 11,690.60 9,200.40 8,270.90

6,709.40

Revaluation Reserves

0.00 0.00 0.00 0.00 0.00

Networth 13,867.50 11,835.10 9,344.90 8,415.40

6,853.90

Secured Loans 31.20 26.50 0.10 0.10 63.50Unsecured Loans 278.10 794.90 698.80 900.10 567.30Total Debt 309.30 821.40 698.90 900.20 630.80Total Liabilities 14,176.80 12,656.50 10,043.80 9,315.6

07,484.70

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of FundsGross Block 11,737.70 10,406.70 8,720.60 7,285.3

06,146.80

Less: Accum. Depreciation

6,208.30 5,382.00 4,649.80 3,988.80

3,487.10

Net Block 5,529.40 5,024.70 4,070.80 3,296.50

2,659.70

Capital Work in Progress

1,428.60 387.60 861.30 736.30 238.90

Investments 5,106.70 7,176.60 3,173.30 5,180.70

3,409.20

Inventories 1,415.00 1,208.80 902.30 1,038.00

713.20

Sundry Debtors 893.30 809.90 918.90 655.50 747.40Cash and Bank Balance

95.50 98.20 239.00 324.00 114.80

Total Current Assets 2,403.80 2,116.90 2,060.20 2,017.5 1,575.40

0Loans and Advances

1,626.30 1,739.10 1,809.80 1,173.00

1,072.60

Fixed Deposits 2,413.00 0.00 1,700.00 0.00 1,308.00Total CA, Loans & Advances

6,443.10 3,856.00 5,570.00 3,190.50

3,956.00

Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 3,805.20 3,160.00 3,250.90 2,718.9

02,288.60

Provisions 525.80 628.40 380.70 369.50 490.50Total CL & Provisions

4,331.00 3,788.40 3,631.60 3,088.40

2,779.10

Net Current Assets 2,112.10 67.60 1,938.40 102.10 1,176.90Miscellaneous Expenses

0.00 0.00 0.00 0.00 0.00

Total Assets 14,176.80 12,656.50 10,043.80 9,315.60

7,484.70

Contingent Liabilities

5,450.60 3,657.20 1,901.70 2,734.20

2,094.60

Book Value (Rs) 479.99 409.65 323.45 291.28 237.23

Chapter 5:-

Key learning’s from the company and

Recommendations

Performance analysis

Maruti Suzuki India Limited is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It is founded in the year 1981. It is India’s largest passenger car company with a market share of over 45% in the domestic car market. The company offers a complete range of cars from entry level to hatchback and sedans. It was the first company in India to mass produce and successfully sell more than a million cars. The company’s headquarters is located in New Delhi. It clocked revenue of 37,522 crores in the financial year 2010-11. It registered a net income was 2,288 crores. It employs more than 6,903 people.It was established as Maruti Udyog Limited (MUL) in February 1981, though the actual production commenced in 1983. On 17 September 2007, MUL was renamed as Maruti Suzuki India Limited. The company exports more than 50,000 cars annually and sales over 730,000 cars in domestic market annually. It has manufacturing facilities located at Gurgaon and Manesar with capacities of 350,000 and 200,000 engine units per year respectively.Maruti Suzuki has 933 dealerships across 666 towns and cities in India. It has 2,946 service stations in 1,395 towns and cities throughout India. It has 30 Express service stations on 30 National Highways. Its flawless and elegant service is a major revenue generator for the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. The Express Service stations help many stranded vehicles on the highways by sending across their repair men to the vehicle.

Company’s current product portfolio Maruti Suzuki is planning to reinvigorate its product portfolio in the Indian market including its most sought after cars like Swift Dzire. It is losing grip on its long standing stronghold of volume driven mass segment as a number of foreign auto biggies have marked their debut in this segment in last one year. It is imperative now for Maruti to get their act together amidst the fierce competition. Maruti may see a dip in their market share. If the domestic car market grows exponentially, it will be difficult for Maruti to keep a high market share.

With the rapid growth of the Indian economy and its greater integration with the world, the range of customer expectations is reaching new heights. The customers are very conscious about reliability, fuel efficiency, low maintenance cost, affordable service cost and easy accessibility of service centers. Besides they look for cars that are trendy, stylish, swanky and contemporary. The company has invested up to 9000 crores in 2010 in new facilities including the new car plant and diesel facility at Manesar and Gurgaon plants. Maruti’s relentless focus on quality, productivity and manufacturing excellence has helped it secure a larger role in Suzuki’s global plans. Last year, Maruti commenced exports of Zen Estilo to Indonesia and has increased its presence in non-European markets.

Current situation of Maruti Suzuki In the recent past Maruti Suzuki is going through a lean patch with the protests of the workers union taking a heavy toll on the car production in its Manesar plant. The strikes arising from the stand-off between the workers and management is affecting the product quality, imports of vehicles and profit margins. The situation needed the intervention of the Union Minister of Commerce and Industry, Anand Sharma. According to the Emkay Global Financial Services research firm, Maruti Suzuki September quarter net sales are expected to go down by 19% at Rs 7411.8 crores, year-on-year basis. The company's net profit is expected to go down 43.6% at Rs 339.9 crores on year-on-year basis. The current market situation in the automobile segment is not so favorable due to sluggish demand, increased fuel prices and continuing inflation. Added to these problems, Maruti Suzuki’s production of the Swift, the largest selling premium hatchback in India, remains severely crippled due to the strike. The company is also facing component shortage. According to reports Maruti has already suffered production loss of over 50,000 units since the first strike in June. Maruti Suzuki’s Alto will finally see competition from second largest player in passenger car market – Hyundai’s Eon which looks much better than Alto.

Reason for the expansion/ contraction/ diversification of company

(1)The Quality Advantage

Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters.

(2)A Buying Experience Like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MARUTI SUZUKI INDIA LIMITED customers in finding the right car.

(3)Quality Service Across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service

experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

(4)One Stop Shop

At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs.

(5) The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

(6)Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, swift dzire, Maruti 800, Alto and Omni.

(7) Technological Advantage

It has 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.

Market share/ Growth rate of company

Maruti Suzuki India Limited commonly referred to as Maruti, is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It has a market share of 47.30% of the Indian passenger car market as of March 2011. Maruti Suzuki offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift, Wagon-R, Estillo and sedans DZire, SX4, in the 'C' segment Maruti Eeco and Sports Utility vehicle Grand Vitara.

It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to

India. It is the market leader in India, and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. The company's headquarters are located in New Delhi. In February 2012, the company sold its 10th million vehicles in India.

SWOT Analysis

Strengths

•Brand Image•Brand loyalty•Reliable and cheap.•Established brand in Indian market.•Great service and nationwide penetration.•Products for many segments of market

Weakness

•Lack of experience with foreign market•Comparatively new to diesel cars•Heavy import tariffs on fully built imported models•Not diversified

Opportunities

•Increased purchasing power of the Indian middle class•Government subsidies•Tax Benefits•Prospective buyers from two wheeler segment

Threats

•Cheaper technology from Chinese Manufacturers•External changes (government, politics, taxes, etc)•Lower cost competitors or imports•Price wars•Increase in fuel prices•Competition from second hand cars

Chapter 6:- Findings

Findings

On an average more than 73% people feel that the prices are affordable whereas 12% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied with the discounts offered. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the people’s car as it is satisfactory on all other parameters: knowledgeable sales persons , employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, prices are affordable, attractive discounts are offered, décor of the waiting area is pleasing, responds to complaints quickly, service at maruti service station is excellent, careful with personal information and is value for money . The overall opinion about Maruti is very good.

Chapter 7:-

Conclusions and Suggestions

CONCLUSION

The price of a car is just one-third of what it cost you over its lifetime. Running and maintaining it make up the other two-thirds. Take into account resale value and its real cost becomes clear. Maruti Suzuki stands for value as much as it stands for performance. In spite of rising input costs, we try our best to keep prices down. Their running costs and resale values are unbeatable too. Nothing matches the delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki owners stated that they would definitely recommend the car they drive to someone else. Infact, you don’t buy a Maruti Suzuki. You invest in it.

After the rash of new cars launches the past two years, the relative lull in the auto industry is showing up in the customer satisfaction indices. According to the 2005 four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist division of TNS Automotive, the automobile ownership experience or customer ownership experience has declined in all areas compared to 2004. The study is one of the largest syndicated automotive studies in India, representing the responses of more than 7,000 new car buyers. The comprehensive study covers over 50 models with customer evaluations taken in the key areas of sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image, and cost-of-ownership. The TCS index score provides a measure of satisfaction and loyalty a given model enjoys with its customers. According to TNS Automotive, the decline is predominantly for older, small and entry mid-size car models. The ageing of these models seems to be posing a stiffer challenge for manufacturers to sustain past performance levels at a time when customer expectations are rising sharply.

Suggestions Quality of Dealership should be improve

Uniform of Sales Executives

Proper visiting cards should be available to the executives

Mostly dealers don’t have their specific website

Maruti should regard as generous discount offers during Festival Season

like Navratra, Dusshera, and Diwali to gear-up their sales

Maruti should advertise in Sports because sports are increasingly cutting

into the share of mass entertainment channels

Maruti can start Money Bond Scheme instead of giving Cash Discount

with more value. Customers eligible for an income bond, encashable

after a 15year period.

More test drives should be offered.

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer.

Should put in more efforts to promote Maruti Finance, Autocard and Accessories.

BIBLIOGRAPHY

Books:- Kotler, Philip Principles of Marketing Management, prentice hall India, 2003 Chhabra, T.N Marketing Management, Dhanpat Rai and co., 2010 Kothari, C.R Research methodology, Vikas Publishing house, 1997

Magzines:- Overdrive Autocar Autodrive

Websites:- www.marutisuzuki.com www.surfindia.com www.carwale.com www.driveinside.com www.carindia.com