Project on Maruti Suzuki Modified

8/8/2019 Project on Maruti Suzuki Modified

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A STUDY OF MARKETING MIX OF

MARUTI SUZUKI

Submitted in Partial fulfilment for the Award of the

Degree Of Bachelor in Business Administration 2009-2012

Under the Guidance of: Submitted by :

Sanampreet Sharma Manish Shandilya

Lecturer (MAIMS) BBA 3rd B (2S)

13361101709

Maharaja Agrasen Institute Of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University

PSP Area, Plot No. 1, Sector 22, Rohini 110086

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Students Declaration

This is to certify that I have completed this Project titled Marketing Mix of

Maruti Suzuki under the guidance of Sanampreet Sharma in partial

fulfilment of the requirement for the award of degree of Bachelor of Business

Administration at Maharaja Agrasen Institute of Management Studies, Delhi.

This is an original piece of work and I have not submitted it earlier elsewhere.

Date: Signature:

Place: Delhi Name: Manish Shandilya

University Roll No. : 13361101709

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Certificate from Institute Guide

This is to certify that summer project titled Marketing Mix of Maruti Suzuki is an

academic work done by Manish Shandilya submitted in the partial fulfilment of the

requirement for the award of the degree of Bachelor of Business Administration at Maharaja

Agrasen Institute of Management Studies , Delhi, under my guidance and direction.

To the best of my knowledge and belief the data and information presented by him in the

Project has not been submitted earlier.

Signature :

Name of Faculty: Sanampreet Sharma

Designation: Lecturer

ACKNOWLEDGEMENT

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I owe my sincere thanks and gratitude to Mrs. Sanampreet Sharma ( Project guide) who

inspired me by her able guidance and was a constant guiding light during the course of

project study.The support and knowledge provided by her has been a great value addition for

me and will go a long way in building a promising career.

First of all I would like to thank Mr. N.K.Kakkar ( Hon.Director General , MAIMS ) who

gave me this golden opportunity to learn something new about project writing.

I would also like to thank Miss Smita Tejwani {course coordinator , BBA 3rd b (2s) } who

cooperated with me and gave me valuable suggestions during the entire project.

Last but not the least I would like to thank my friends and family members who supported me

and gave me valueable suggestions in this project.

Manish Shandilya

BBA 3rd B (2S)

Roll no. :- 9348

Enrollment No.:- 13361101709

INDEX

Student Declaration

Certificate from the Guide

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Acknowledgement

Table of Content Page no.

Chapter 1 About the Company

1.1 Introduction 8

1.2 History 10

1.3 Company Profile

1.3.1 Stock exchange 11

1.3.2 Vision Mission and Core values 11

1.3.3 Board of Directors 131.3.4 Milestones 14

1.3.5 Awards 17

1.4 Organisation Structure

1.4.1 Organisation structure 21

1.4.2 Production process 22

1.4.3 Recruitment and Selection 23

1.4.4 Training and Devlopment 25

1.4.5 Appraisal and Reward 261.4.6 International Business 27

1.5 Financial Structure

1.5.1 Capital Structure 29

1.5.2 Balance Sheet 30

1.5.3 Profit and loss A/c 31

Chapter 2 Research Methodology

2.1 Meaning of Research 33

2.2 Objectives Research 33

2.3 Significance of Research 33

2.4 Research Methodology 34

2.5 Data Collection Source 34

2.6 Limitations 35

Chapter 3 Marketing Mix

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3.1 Meaning 37

3.2 Brand 37

3.3 Products 38

3.4 Price 56

3.5 Place 57

3.6 Promotion 57

3.7 Market Segmentation 58

3.8 Market Positioning 59

3.9 Other Strategies 59

Chapter 4 Findings and analysis 73

Chapter 5 Conclusion 84

Chapter 6 Recommendations 86

Bibliography 88

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Chapter: - 1

ABOUT THE COMPANY

1.1 Introduction

Maruti Suzuki is Indias 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.

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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

Motors 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 anually exports more than 50,000 cars and has an extremely large domestic

market in India selling over 7,30,000 cars anually. Maruti 800 till 2004 was the Indias

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 800s sold in the Indian market the term Maruti is commonly used to refer to this

compact car model. Till recently the term Maruti in popular Indian culture in India,

Hindus 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 Suzukis 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.

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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.

1.2 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 Gandhis cabinet passed a

uninamous resolution for the devlopment and production of peoples car. Sanjay Gandhis

company was christened Maruti Limited. The name of the car was choosen as Maruti, after

the name of a hindu deity named Marut.

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At that time Hindustan Motors 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 Peoples 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 1970s 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 4 th 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 SUVs.

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1.3 Companys 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 Gandhis cabinet passed an

uninamous resolution for the development and production of Peoples car. Sanjay Gandhis

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 1980s to till day today Marutis have dominated the Indian Automobile industry

as well as automobile market.

1.3.1 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.

1.3.2 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 Suzukis participation ensures not only need

of profit, but the need of maximum profit. The only way of Noras dilemma of selecting

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principles for the companys 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

shareholders 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,

shareholders 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 companys brand line : COUNT ON US!

Mission:-

Mission is the statement of any organisations 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

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1.3.3 Company Board Of Directors

Mr. Shinzo Nakanishi Managing Director (M.D) and Chief

Executive Officer (C.E.O)

Mr. R.C. Bhargava Chairman

Mr. Maninder Singh Banga Director

Mr. Amal Ganguli Director

Mr. D.S.Brar Director

Mr. Keiichi Asai Director

Mr. Osamu Suzuki Director

Mr. Shuji Oishi Director

Ms. Pallavi Shroff Director

Mr. Kenichi Ayukawa Director

Mr. Tsuneo Ohashi Director and Management Executive

Officer

1.3.4 MILESTONES

2005 The fiftieth lakh car rolls out in April, 2005

Growth in overall sales by 15.8%

2004 New (non A/C) variant of Alto

Alto becomes India's new best-selling car

LPG variant of 'Omni Cargo'

Versa 5-seater, a new variant

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Baleno LXi, a new variant

Maruti closed the financial year 2003-04 with an annual sale of

472122 units, the highest ever since the company began operations

20 years ago

2003 New Suzuki Grand Vitara XL-7

Redesigned and all-new Zen

New upgraded WagonR

Enters into partnership with State Bank of India

Production of 4 millionth vehicles. Listed on BSE and NSE after a

public issue oversubscribed 10 times

2002 WagonR Pride

Esteem Diesel. All other variants upgraded

Maruti Insurance. Two new subsidiaries started: Maruti Insurance

Distributor Services and Maruti Insurance Brokers Limited

Alto Spin LXi, with electronic power steering

Special edition of Maruti 800, Indias first colour-coordinated car

Maruti True value in Mumbai

Maruti Finance in Mumbai with 10 finance companies

Suzuki Motor Corporation (SMC) increases its stake in Maruti to

54.2 percent

2001 Zen LXi

Maruti True Value launched in Bangalore and Delhi

Maruti Versa, Indias first luxury MPV

Alto Spin LXi, with electronic power steering

Alto VXi

Customer information centers launched in Hyderabad, Bangalore

and Chennai

Launch of versa

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2000 First car company in India to launch a Call Center

New Alto

Altura, a luxury estate car

IDTR (Institute of Driving Training and Research) launched jointly

with the Delhi government to promote safe driving habits

1999 Maruti 800 EX ( 796cc, hatchback car)

Zen LX (993cc, hatchback car)

Zen VXi (993cc, hatchback car with power steering)

Omni XL ( 796cc, MUV, high roof)

Baleno (1600cc, 3 Box Car)

Wagon R

Launch of Maruti - Suzuki innovative traffic beat in Delhi and

Chennai as social initiatives

1998 Maruti launches website as part of CRM initiatives

Zen D (1527 cc diesel, hatchback car)

Zen VX & Zen VX Automatic

New (Omni & Omni E) (796cc, MUV)

Launch of website as part of CRM initiatives

1997 1998 Esteem (1299cc, 3 box car) LX, VX and AX

New Maruti 800 (796cc,hatchback Car) Standard and Deluxe

Produced the 2 millionth vehicle since the commencement ofproduction

1996 Gypsy (E) (970cc, 4WD 8 seater)

Omni (E) (796cc, MUV, 8 seater)

Gypsy King (1298cc, 4WD, off road vehicle)

Zen Automatic (993cc, hatchback car)

Esteem 1.3L (1298 cc, 3 box Car)AX

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Launch of 24-hour emergency on-road vehicle service

1995 Esteem 1.3L (1298 cc, 3 box car)VX

With the launch of second plant, installed capacity reached 200,000

units

1994 Esteem1.3L (1298cc, 3 box car)LX

Produced the 1 millionth vehicle since the commencement of

production

1993 Zen (993cc, hatchback Car), which was later exported in Europe

and elsewhere as the Alto

1992 SMC increases its stake in Maruti to 50 percent

1991 Reaches cumulative indigenisation of 65 percent for all vehicles

produced

1990 Maruti 1000(970cc, 3 box), Indias first contemporary sedan

1988 Installed capacity increased to 100,000 units

1987 Exported first lot of 500 cars to Hungary

1986 Maruti 800 ( New Model-796cc, hatchback Car)

Produced 100,000 vehicles (cumulative production)

1985 Launch of Maruti Gypsy (970cc, 4WD off-road vehicle)

1984 Omni, a 796cc MUV

Installed capacity reached 40,000 units

1983 Maruti 800, a 796 cc hatchback, Indias first affordable car.

Production was started under JVA

1982 License and JV agreement signed between Maruti Udyog Ltd. and

SMC of Japan

1.3.5 AWARDS

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2005

Number one in JD Power SSI for the second consecutive year

Number one in JD Power CSI for the sixth time in a row - the only car to

win

it so many times

M800, WagonR and Swift topped their segments in the TNS Total

Customer Satisfaction Study

Leadership in the JD Power Initial Quality Study - Alto number one in

its

segment for the 2nd time in a row, Esteem number one in its segment for

the 3rd year in a row, Swift number one in the premium compact

segment

WagonR and Esteem top their segments in the JD Power APEAL study

TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study

(#1 in Auto sector)-Feb 05

Maruti bagged the "Manufacturer of the year" award from Autocar-

CNBC

( 2nd time in a row)-Feb 05

First Indian car manufacturer to reach 5 million vehicles sales

Business World ranks Maruti among top five most respected companies

in

India-Oct 04

Maruti ranked among top ten (Rank7) greenest companies in India by

Business Today - Sep '04

2004

Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales

Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in

Product Appeal (Esteem and Wagon R)

No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)

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Business World ranked us among the country's five most respected

companies

Business World ranked us the country's most respected automobile

company

Voted Manufacturer of the year by CNBC

Voted one of India's Greenest Companies by Business Today-AC

Nielson ORG-MARG

2003

Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10

automotive brands in "Most Trusted Brand survey 2003"

J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem

Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study

2003.

MUL tops in J D Power CSI (2001) for 4th time in a row

2001

MUL tops in J D Power CSI (2001) for 2nd time in a row: another

international first

2000

Maruti bags JD Power CSI - 1st rank; unique achievement by market

leader anywhere in the world

1999

MSM launched as model workshop in India; achieves highest CSI rating.

Central Board of Excise & Customs awards Maruti with "Samman

Patra", for contribution to exchequer and being an ideal tax assessee

1998

CII's Business Excellence Award

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1996

Maruti wins INSSAN award for "Excellence in Suggestion Scheme"

Awarded the Star Trading House status by Ministry of Commerce

1994-95

Engineering Exports Promotion Council's award for export performance

1994

Best Canteen award among Haryana Industries as part of employee

welfare

1992-93

Engineering Exports Promotion Council's award for export performance.

1.4 ORGANISATION STRUCTURE

Maruti Udyog Limited has a flat organisation structure with a maximum of three levels. The

Organisation Structure of Maruti Udyog Limited is follows:-

MANAGING DIRECTOR

Manufacturing Financial General

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Director Controller Manager

DGMs/AGMs DGMs/AGMs DGMs /AGMs

Managers / AM Managers /AM Managers / AM

Engineers and

Sr. Executives Sr. Executives Sr. Executives

Jr. Executives Jr. Executives Jr. Executives

1.4.2 THE PRODUCTION PROCESS AT MARUTI

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21

STEEL COILSBLANKINGPRESSINGWELDINGPAINTINGASSEMBLYVEHICLE

INSPECTION

TEST RUNSUPPLY &

DISPATCH

FROM

VENDO

R

VENDORS

FROM

VENDO

R

VENDORS

FROM

VENDO

RS

VENDORS


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1.4.3 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.

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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 refeErence 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 individuals 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

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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 companys 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.

A) 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.

B) Final Approval :- In most of the Organisations, selection process is carried out by

the Human resource department, where the decision of the departments are

recommendatory. The candidate shortlisted by the department are finally approved by

the executive of the concerned department or the unit.

C) 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.

D) 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.

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E) 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 workers

immediate supervisor is asked for comments which is compared with the notes taken

at the time of selection.

1.4.4 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

1.4.5 APPRAISAL & REWARD

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Appraisal

New Appraisal System based on KRAs & Targets

Review of Targets at regular Intervals

People Development an important KRA

Reward

Promotions based on Performance

Productivity & Profit-linked Incentive Schemes

Training including Long-term SMC Japan Trg.

Highest paid workforce in the Industry, if not the Country

LEADERSHIP

Vision, Value & Team Building Workshops for Top Management

CFT (Cross Functional Teams) of Managers for Major Thrust Areas

Managers sent to Joint Ventures to upgrade their practices to MUL standards

1.4.6 INTERNATIONAL BUSINESS

In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its first

export in 1986. Europe is the largest destination of Marutis exports and coincidentally after

the first commercial shipment of 480 units to Hungary in 1987, the 300,00 mark was crossed

by the shipment of 571 units to the same country. The top ten destinations of the cumulative

exports have been Netherlands, Italy, Germany, Chile, U.K., Hungary, Nepal, Greece, France

and Poland in that order.

The Alto, which meets the Euro-3 norms, has been very popular in Europe where a landmark

200,000 vehicle were exported till March 2003. Even in the highly developed and

competitive markets of Netherlands, UK, Germany, France and Italy Maruti vehicles have

made a mark. Though the main market for the Maruti vehicles is Europe, where it is selling

over 70% of its exported quantity, it is exporting in over 70 countries.

Maruti has entered some unconventional markets like Angola, Benin, Djibouti, Ethiopia,

Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East region has also

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opened up and is showing good potential for growth. Some markets in this region where

Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE.

The markets outside of Europe that have large quantities, in the current year, are Algeria,

Saudi Arabia, Srilanka and Bangladesh. Maruti exported more than 51,000 vehicles in 2008-09 which was 59% higher than last year. In the financial year 2008-09 Maruti exports

contributed to more than 10% of total Maruti sales.

Graph 1.1

Graph showing the Continent wise export of Maruti Udyog Limited Since Inception.

Description :-

Asia 12%

Africa 7%

America 9%

Europe 70%

Oceania 2%

Refrence :- Official website of Maruti Suzuki

(www.marutisuzuki.com)

1.5 Financial Structure of Maruti Suzuki

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Continent wise export of Maruti

Ud o Limited Since ince tion
http://www.marutisuzuki.com/http://www.marutisuzuki.com/


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1.5.1 Capital structure

The capital structure of Maruti Udyog limited are as follows :-

FromYear

ToYear

Class OfShare

AuthorizedCapital

IssuedCapital

Paid UpShares (Nos)

Paid UpFace

ValuePaid UpCapital

2009 2010EquityShare 372.00 144.46 288910060 5 144.46

2008 2009EquityShare 372.00 144.46 288910060 5 144.46

2007 2008EquityShare 372.00 144.46 288910060 5 144.46

2006 2007EquityShare 372.00 144.46 288910060 5 144.46

2005 2006EquityShare 155.00 144.46 288910060 5 144.46

2004 2005EquityShare 155.00 144.46 288910060 5 144.46

2003 2004EquityShare 155.00 144.46 288910060 5 144.46

2002 2003EquityShare 155.00 144.46 288910060 5 144.46

2001 2002EquityShare 135.00 132.29 13229162 100 132.29

2000 2001EquityShare 135.00 132.29 13229162 100 132.29

1999 2000EquityShare 135.00 132.29 13229162 100 132.29

1993 1999EquityShare 135.00 132.29 13229162 100 132.29

Table 1.1 Showing the capital Structure of Maruti Suzuki From 2006 to 2010

Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com)

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1.5.2 BALANCE SHEET OF MARUTI UDYOG LIMITED

For the financial year 2006-10

Balance sheet

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds (in lakhs)

Owner's fund

Equity share capital 144.50 144.50 144.50 144.50 144.50

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 11,690.60 9,200.40 8,270.90 6,709.40 5,308.10

Loan funds ( in lakhs)

Secured loans 26.50 0.10 0.10 63.50 71.70

Unsecured loans 794.90 698.80 900.10 567.30 -

Total 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30

Uses of funds (in lakhs)

Fixed assets

Gross block 10,406.70 8,720.60 7,285.30 6,146.80 4,954.60

Less : revaluation reserve - - - - -

Less : accumulated depreciation 5,382.00 4,649.80 3,988.80 3,487.10 3,259.40

Net block 5,024.70 4,070.80 3,296.50 2,659.70 1,695.20

Capital work-in-progress 387.60 861.30 736.30 238.90 92.00

Investments 7,176.60 3,173.30 5,180.70 3,409.20 2,051.20

Net current assets (in lakhs)

Current assets, loans & advances 3,856.00 5,570.00 3,190.50 3,956.00 3,870.70

Less : current liabilities & provisions 3,788.40 3,631.60 3,088.40 2,779.10 2,184.80

Total net current assets 67.60 1,938.40 102.10 1,176.90 1,685.90

Miscellaneous expenses not written - - - - -

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Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Total 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30

Notes:

Book value of unquoted investments 11.10 3,162.20 5,169.60 3,398.10 2,040.10

Market value of quoted investments 215.10 108.70 219.50 270.40 289.80

Contingent liabilities 3,657.20 1,901.70 2,734.20 2,094.60 1,289.70

Number of equity sharesoutstanding (Lacs) 2889.10 2889.10 2889.10 2889.10 2889.10

Table :- 1.2 showing Balance Sheet of Maruti Suzuki for the year 2006 to 2010

Refrence :- Official wesite of Maruti Suzuki (www.marutisuzuki.com)

1.5.3 PROFIT AND LOSS ACCOUNT

The Profit and Loss account of Maruti Suzuki for the year 2006 to 2010 is as follows :-

Profit loss account

Mar 10 Mar 09 Mar 08 Mar 07 Mar 06

Income

Operating income 29,317.70 20,729.40 18,066.80 14,806.40 12,197.90

Expenses

Material consumed 22,435.40 16,339.80 13,622.00 11,063.70 9,223.70

Manufacturing expenses 1,278.20 909.70 670.60 489.80 359.60

Personnel expenses 545.60 471.10 356.20 288.40 228.70

Selling expenses 916.00 738.20 560.20 499.90 356.00Adminstrative expenses 404.60 389.20 326.30 274.50 170.60

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Mar 10 Mar 09 Mar 08 Mar 07 Mar 06

Expenses capitalised - -22.30 -19.80 -14.30 -6.70

Cost of sales 25,579.80 18,825.70 15,515.50 12,602.00 10,331.90

Operating profit 3,737.90 1,903.70 2,551.30 2,204.40 1,866.00

Other recurring income 617.70 547.60 456.10 361.10 268.10

Adjusted PBDIT 4,355.60 2,451.30 3,007.40 2,565.50 2,134.10

Financial expenses 33.50 51.00 59.60 37.60 20.40

Depreciation 825.00 706.50 568.20 271.40 285.40

Other write offs - - - - -

Adjusted PBT 3,497.10 1,693.80 2,379.60 2,256.50 1,828.30

Tax charges 1,094.90 457.10 763.30 705.30 560.90

Adjusted PAT 2,402.20 1,236.70 1,616.30 1,551.20 1,267.40

Non recurring items 44.30 -55.90 37.90 -23.00 -83.70

Other non cash adjustments 51.10 37.90 76.60 33.40 5.40

Reported net profit 2,497.60 1,218.70 1,730.80 1,561.60 1,189.10

Earnigs before appropriation 10,501.80 8,244.40 7,368.10 5,947.10 4,631.20

Equity dividend 173.30 101.10 144.50 130.00 101.10

Preference dividend - - - - -

Dividend tax 28.80 17.20 24.80 21.90 14.20

Retained earnings 10,299.70 8,126.10 7,198.80 5,795.20 4,515.90

Table :- 1.3 Showing Profit and loss account of Maruti Suzuki

Refrence :- Official website of Maruti Suzuki (www.marutisuzuki.com)

Chapter :- 2

Research Methodology

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2.1 Meaning of Research

Redman and Mory define research as a systemized effort to gain new knowledge. Some

people consider research as a movement, a movement from the known to the unknown.

Research is an academic activity and as such the term should be used in a technical sense.

According to Clifford Woody, research comprises defining and redefining problems,

formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;

making deductions and reaching conclusions; and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis.

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2.2 Object ives of Research

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden and

which has not been discovered as yet. Though each research study has its own specific

purpose.

The main objectives of this research was to :-

1. To study about Maruti Suzuki i.e. when it was established , why it was established

and by whom it was established, financial structure, Organisational structure etc.

2. To study about the marketing mix and the strategies adopted by Maruti Suzuki in

order to cater the needs of the people and also to face tough competition in the market

since after the Globalisation of the Indian economy many competitors have grown and

tries to undermine the monopoly created by Maruti Suzuki.

3. To study the strategies adopted by Maruti Suzuki due to which they are able to

dominate the Indian Automobile Sector since last three decades.

2.3 Signi f icance of Research

All process is born of inquiry. Doubt is often better than overconfidence, for it leads toinquiry and inquiry leads to invention. Is a famous Hudson Maxim in context of which the

significance of research can well be understood. Increased amounts of research make

progress possible.

Research inculcates scientific and inductive thinking and it promotes the development of

logical habits of thinking and organization.

The role of research in several fields of applied economics, whether related to business or to

the economy as a whole, has greatly increased in modern times. The increasing complex

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nature of business and government has focused attention on the use of research in solving

operational problems. Research, as an aid to economic policy, has gained added importance,

both for government and business

2.4 Research Methodology

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them. It is necessary for the researcher to know not only the

research methods or techniques but also the methodology.

2.5 Data Col lect ion Source

Information for this project was collected primarly through secondary sources.The data

collected from the secondary sources are called as Secondary data.

Secondary Data:Any data, which have been gathered earlier for some other purpose, are

secondary data in the hands of researcher. Those data collected first hand, either by the

researcher or by someone else, especially for the purpose of the study is known as primary

data.

The data collected for this project has been taken from the secondary source.

Sources of secondary data are :-

Internet

Magazines

Publications

Newspapers

Brouchers

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2.6 LIMITATIONS

The biggest limitation of this project was time , due to lack of time the necessary data

were collected from the secondary sources..

Due to tough competition in the market the companies are not willing to disclose their

strategies adopted to face the competition so sufficient information were not collected

and the information collected are not 100% accurate.

Chapter: - 3

Marketing Strategies

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3.1 Meaning of Marketing

3.2 Brand

3.3 Products

3.4 Price

3.5 Place

3.6 Promotion

3.7 Market Segmentation , Targeting and Positioning

3.8 Market Share

3.9 Other strategies adopted by Maruti

3.10 Customer satisfaction

3.1 Marketing

It is the process of directing of directing the flow of goods and services from the producers or

the manufacturers to the customers or consumers. It is accountable for planning, organising,

directing, coordinating, motivating, and controlling the market activities.

According to American Marketing Association, Marketing is the performance of the

business activity that directs the flow of goods and services through producers to consumers

to users.

According to Cundiff and Still, Marketing is the business process by which the products are

matched with the market and through transfer of ownership are affected. Matching the

products with the market means determining the needs and requirements of potential

customer and supplying them the product which meets their requirements.

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According to Philip Kotler, Marketing is the social and managerial process by which

individuals and groups obtain what they need and want through creating, offering, and

exchanging product of value with others.

According to William J. Stanton, Marketing is a total system of interacting business

activities designed to plan, price, promote, and distribute, wants satisfying products to target

markets to achieve Organisational objectives.

In general we can say that Marketing includes all those activities carried on to transfer those

goods from the manufactures or the producers to the consumers that can satisfy the needs and

the requirements of the consumers.

3.2 BRAND

Around 1970, Sanjay Gandhi the political advisor and younger son to then Prime minister of

India, Indira Gandhi, envisioned the manufacture of an Indigenous, cost effective, low

maintenance and compact car for the Indian middle class. Indira Gandhis cabinet

unanimously passed a resolution for the development and production of peoples car.

Sanjay Gandhis company was christened Maruti Limited. The name was chosen as Maruti

after a Hindu deity named Maruti.

Unfortunately Sanjay Gandhi died without completing his project. After the death of Sanjay

Gandhi, 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 on sale on December 14,

1983.

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3.3 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 SUVs. 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 :-

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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

Maruti 800

Maruti 800 is the most popular entry segment car in India. With the introduction of Maruti

800 in 1980s Maruti Udyog Limited broke the hegemony of Ambassador and Fiat in the

Indian Car market.

Technical Specifications:-

Dimensions

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Length 3335 mm

Width 1440 mm

Height 1405 mm

Unladen Weight 655 Kgs (AC Euro I) , 640 Kgs (AC Euro I) , 665

Kgs ( AC Euro II), 650 Kgs (AC Euro II)

Ground Clearance 170 m

Wheel Base 2175 mm

Power

Engine Type 4 Stroke, Water cooled SOHC

Piston Displacement 796 cc

Max. Power 39.5 bhp @ 5500 rpm

Max. Torque 5.7 N m @ 2500 rpm

Fuel System Carburettor

Transmission and Manual, 4 Forward (Synchromesh), 1

gear box reverse

Suspension

Front Mc Pherson strut and coil spring

Rear Leaf Spring

Steering

Type Manual Rack and Pinion

Turning radius 4.4 mts

Brakes

Type Dual Circuit

Front Disc

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Rear Drum

Tyres 5.65 12 4 PR

Capacities

Seating 4 Persons

Fuel Tank 30 Litres

Maruti Alto

Maruti Alto is one of the hottest selling compact cars in Indian market. Alto uses Maruti

800s proven and highly fuel efficient , 3 pot motor with a four valve head and its electronic

tachometer results in unmatched fuel efficiency . It is the most fuel efficient car in A2

Segment.

TECHNICAL SPECIFICATIONS :-

Dimensions

Length 3495 mm

Width 1495 mm

Height 1460 mm

Wheel base 2360 mm

Tread 1290 mm

Min. turning radius 4.6 m

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Ground clearance 160 mm

Weight

Alto 725 kgs

Alto LX, LXi 740 Kgs

Gross vehicle weight 1165 Kgs

Engine

Swept volume 796 cc

Engine type FC Engine, 4 valve per cylinder MPFI

No. of cylinder 3

Engine control 32 bit computer

Max. Power 47 bhp @ 6200 rpm

Max. Torque 62 Nm @ 3000 rpm

Transmisson 5 Speed all synchromesh, Manual

Suspension System

Front McPherson strut with Torsion type coil anti roll bar

Rear Coil sprint with double action telescopic shock absorbers

Seating Capacity 4 persons

Tyres 145/80 R12

Maruti Omni ( Van)

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Maruti Omni is popularly known as Maruti Van. Maruti Omni comes in three variants and

they are :- Omni 5- Seater , Omni 8- seater and Omni LPG. Maruti Omni is a perfect family

car. It has enough space for our life style needs whether we are going on a picnic, weekend

outing or for a game of golf. We can pick our entire luggage without thinking twice. Omni

provides ample headroom and legroom to ensure a comfortable and enjoyable journey.


Dimensions

Length 3370 mm

Width 1410 mm

Height 1640 mm

Wheelbase 1840 mm

Ground clearance 165 mm

Min turning radius 4.1 m

Weight

Omni 785 Kgs

Omni E 800 Kgs

Engine

Type 4 Stroke cycle, water cooled

No. of cylinders 3

No. of cylinder valves 6

Piston displacement 796 cc

Max. Power 35.0 bhp @ 5000 rpm

Max. Torque 601 NM @ 3000 rpm

Power Transmisson

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Type Manual, 4 forward all synchromesh

Brakes

Front Booster assisted disc

Rear Drum

Fuel tank capacity 36 Litres

Maruti Eeco

EECO was introduced in India by Maruti Suzuki during 2010. This car is essentially an

updated Versa, this is an urgent refresh in lines with Maruti Suzuki not being able to come up

with a new minivan. EECO comes with 5 seater and 7 seater options. EECO is equipped with

advanced Engine Management System for optimizing fuel efficiency and performance. It is

branded by the manufacturer as a perfect car for every occasion-a business trip or a picnic

with the loved ones[1]. A new minivan from Maruti Suzuki is expected in 2011 to replace the

Eeco/Versa and (possibly) the ageing Omni.

Maruti EECO is available in following variants :-

5 seater, standard

5 seater, AC

7 seater, Standard

EECO is powered by Bharath Stage IV compliant engine.


Fuel: Petrol

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Engine type: Aluminium

Fuel distribution: Multipoint Injection

Power: 73 bhp (54 kW; 74 PS) @ 6000 rpm

Displacement: 1196 cc

Layout: 4 cylinder in-line

Max. Torque: 101 Nm (74 ftlbf) @ 3000 rpm

Valve train: 16 valves / 4 per cylinder

Transmission: Manual-5 speed

Suspension

Front Suspension: McPherson strut

Rear Suspension: 3 Link Rigid

Brakes

Front Brakes : Ventilated disc

Rear Breakes : Drum

Tyres: 155 R-13 LT

Tyre type: Tubeless

ZEN ESTILO

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Maruti Zen is a clear leader in the premium compact car segment in India. It has several

technology that makes it stand out from other cars in its segment.

Maruti Zen comes equipped with 16 x 4 all aluminium hyper tech engines, with its power to

weight ratio of 78.4 bhp per tonnes , the highest in its class, the engine also offers optimum

fuel economy , excellent pick up and acceleration.

The 16- bit Micro processor in Zen delivers ideal combo of speed, power and fuel efficiency.

Its electronic power steering ensures effortless maneuverability, more control and a better

grip.


CapacitiesSeating Persons 5

Fuel in litres 35

Engine in CC 993

Unladen weight in kgs 765

Laden weight in kgs 1190

Tyres 145 / 80 R 12

(Front &

rear)

PETROL Bharat Stage II

LX LXi VXi

All aluminium engine

16 valve, 4 cylinder inline engine

16 bit ECM

Multipoint fuel injection

Maximum engine output in

bhp/rpm

60 @ 6000

Maximum engine torque in

kgm/rpm

8 @ 4500

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Compression ratio 9.4:1

PETROL Bharat Stage IIILX LXi VXi

All aluminum engine

16 valve, 4 cylinder inline engine

32 bit ECM

Multipoint fuel injection

Maximum engine output in

bhp/rpm

60 @ 6200

Maximum engine torque in

kgm/rpm

8 @ 4500

Compression ratio 9.4:1

DIMENSIONSOverall length 3535mm

Overall width 1495mm

Overall height 1405mm

Wheelbase 2335mm

Ground clearance 165m

WAGON R

Wagon R is a hugely successful car which comes in four variants- Maruti Wagon R LX,Maruti Wagon R LXi, Maruti Wagon R VXi and Maruti Wagon R AX.Wagon R comes with

1064 cc MPFI low friction engine that delivers an awesome 64 bhp @6200 rpm for smoother

pick up and faster acceleration. Dual Distributor less Digital Ignition (DDLI) ensures an

instant hassle free start every time and a more efficient power distribution. Wagon Rs tall

body , high seats and wide opening doors make it easier to get in and out.


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Dimension in MM

Length 3495

Width 1495

Height 1660

Wheelbase 2360

Front track 1295

Rear track 1290

Min. ground clearance 165 m

Weight in Kg

Kerb weight 825 (LX,LXi,VXi)

840 (AX)

Gross Weight 1225 (LX,LXi, VXi)

1240(AX)

Engine

Swept volume 1061 cc

Type FC Engine , 4 Valve per cylinder , MPFI

Fuel distribution Multipoint injection

Engine control 16 Bit Electronic Control Module (ECM)

No. of cylinders 04

Max. Power 64 bhp @6200 rpm


Power Steering

Type Electronic Power Steering (EPS)

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Transmission Manual ()- 5 speed , All synchromesh

Suspension

Front McPherson strut with torsion type roll control device

Rear Coil spring, gas filled shock absorber with 3 link rigid axle

isolated trialing arms.

A-STAR

Indian car market leader Maruti Suzuki has launched A-Star in the hatchback car segment in

which the company holds ruling position with 55% market share. Maruti has unveiled A Star

as a next generation model of its model Alto which is already selling greatly in the segment.

Scroll down to know more about the sporty and striking features of all new A Star Car.


Dimension in mm

Length 3500

Width 1600

Height 1490

Wheelbase 2360

Front track 1295

Rear track 1290

Min. Ground clearance 170

Min. Turning radius 4.5

Weight In Kgs

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Kerb weight 870

Gross Vehicle weight

Capacity

Seating capacity 5 persons

Fuel tank capacity 35 litres

Engine

Swept volume 1061 cc

Type KB series


Displacement 998 cc

No. of cylinders 03

Max. power 67 bhp @6200 rpm


Steering Rack and pinion , Power assisted

Transmission Manual () 5 Speed , All synchromesh

Suspension system

Front Mc Pherson strut and coil spring

Rear Isolated trailing link and coil spring

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SWIFT

Maruti Swift brings a feeling of freshness to the compact car segment . Its appealing looks ,

spacious interiors, and a whole a lot of user friendly features at once catch our attention. It

comes in three variants :-Maruti Suzuki Swift LXi, Swift VXi, Swift ZXi.


Body Type

Body Type :- Hatch back

No. of doors :- 5

Seating Capacity :- 5

Engine

Capacity :- 1298 cc

No. of cylinders :- 4

Bore X stroke :- 74.0 X 75.5

Compression Ratio :- 9.0 :1

Max. Power :- 87 bhp @ 6000 rpm

Max. Torque:- 113 Nm @ 4500 rpm

Fuel distribution :- Multipoint injection

Transmission

Type :- 5 Speed Manualwith synchromeshin all and 1 reverse

Gear ratios :- 1st 3.545

2nd 1.904

3rd 1.208

4th 0.966

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5th 0.757

Reverse 3.0272

Power Steering

Type :- Electronic power steering (EPS)

Suspension System

Front: McPherson Strut with torsion type roll control device

Rear :- coil spring, gas filled shock absorber with 3 link rigid axle

isolated trailing arms

MARUTI GYPSY

It is manufactured in India by Maruti Suzuki. It was introduced in the Indian market in 1985

with the 970 cc F10A Suzuki engine and was an instant hit in the civilian market as well as

with law enforcement. It was codenamed MG410 that stood for Maruti Gypsy 4 cylinder 1.0

litre engine. Initially, it was only available as a soft-top; but a bolt on hardtop was later

introduced to the public after the aftermarket hardtops became extremely popular.

In July 1993, Maruti introduced the "widetrack Gypsy" codenamed MG410W replacing the

MG410. Both front and rear track of the wheels are increased by 90mm (from 1,210 mm

(47.6 in) to 1,300 mm (51.2 in) for front wheels and from 1,220 mm (48.0 in) to 1,310 mm

(51.6 in) for rear wheels) and these Gypsys are instantly recognizable by the pronounced

painted fender flares.

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Dimensions

Length 4,010 mm (157.9 in)

Width 1,540 mm (60.6 in)

Height 1875/1845 mm*

Wheelbase 2,375 mm (93.5 in)

Front Track 1,300 mm (51.2 in)

Rear Track 1,310 mm (51.6 in)

Kerb Weight 985 kg/1, 040 kg*

Gross Vehicle Weight 1585 kg/1,620 kg*

Engine

Type G13BB MPFI 16 Valve Gasoline

Cylinders 4

Displacement 1298 cc

Maximum Power 80 bhp (60 kW; 81 PS) @6000 rpm

Maximum Torque 103 Nm (76 lbft) @ 4500 rpm

Transmission Type Five forward (all Synchromesh), One reverse

Transfer gearbox Two-speed

Type constant mesh

Transfer gear ratio High : 1.409; Low : 2.268

Suspension Front and Rear Rear Leaf spring with Double action damper

Brakes With Booster

Front Disc

Rear Drum

Tyres F78-15-4 PR 205/70R15

Capacities

Fuel tank 40 L (11 US gal; 9 imp gal)

Engine oil 4 L (1.1 US gal; 0.9 imp gal)

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MARUTI SUZUKI SX4

Designed by Giorgetto Giugiaro's Italdesign studio, the SX4 (an abbreviation of "Sports X-

over 4 all seasons ") replaces the Aerio (some markets called Liana). The "SX 4" designation

was used by American Motors (AMC) for a sporty liftback model in its all-wheel drive AMC

Eagle passenger cars.

Technical Specifications :-

Dimensions & Weight

Length (mm) 4490

Width (mm) 1735

Height (mm) 1560

Wheelbase (mm) 2500

Kerb Weight (kgs) 1170

Seating Capacity 05

Engine

Model Designation 1.6 L 16 V

No. Of Cylinders 04 Inline

Configuration DOHC

Displacement (cc) 1586

Transmission 5 Manual

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Top Speed (kmph) 175

Suspension

Front Independent suspension with gas-filled McPherson

strut & anti-roll bar

Rear Semi-independent torsion beam with gas filled shock absorbers

Brakes

Type Disc

Front / Rear Brakes Ventilated Discs/ Drums

Tyres

Type 195/65 R15

Wheels 15" Steel

Fuel Tank 50 Litres

Performance

Max. Horsepower (ps/rpm) 103 PS @ 5500 rpm

Max. Torque (kg m/rpm) 145 Nm @ 4200 rpm

GRAND VITARA

Grand Vitara is meant for the people who want to live life grand size. With 127 KW @ 6000

rpm on call, the 2.7 litres DOHC V6 engine can empower the Grand Vitara to climb up steep

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terrains; Zip effortlessly down the highway and with plenty of low end torque, the high

performance vehicle can take on snowy ramps and muddy tracks with equal ease. Its four

wheel drive gives Vitara the power to go places.

Technical Specifications :-

Dimension in MM

Length 4760

Width 1780

Height 1740

Wheelbase 2800

Front track 1500

Rear track 1500

Min. Ground clearance 183 m

Weight in Kgs

Kerb Weight 1700

Gross Weight 2300

Capacity

Seating 7 persons

Fuel tank 66 litres

Engine

Type H27A V6 type

No. Of cylinders 06

No. of valves 24

Piston displacement 2736 cc

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Bore X Stroke 88 X 75

Compression ratio 9.5 : 1

Max. Output 166 bhp @ 6000 rpm



Max. Speed 183 Km / Hr

Steering Rack and Pinion

Brakes

Front Disc

Rear Drum

Suspension

Front McPherson strut

Rear 5 Link rigid with coil spring

Tyres 235 / 60 R 16 Tubeless tyres

3.4 PRICES OF MARUTI PRODUCTS

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.)

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Maruti Suzuki 800 1,94,620

Maruti Suzuki Omni 2,09,757

Maruti Suzuki Alto 2,28,982

Maruti Suzuki Eeco 2,84,488

Maruti Suzuki Zen Estilo 3,31,412

Maruti Suzuki Wagon R 3,39,058

Maruti Suzuki A Star 3,63,220

Maruti Suzuki Ritz 4,09,822

Maruti Suzuki Swift 4,27,635

Maruti Suzuki Swift Dzire 4,96,671

Maruti Suzuki Gypsy 5,28,818

Maruti Suzuki SX4 7,08,062

Maruti 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 %.

3.5 PLACE

The Place of Maruti cars is in the whole world. Maruti Udyog Limited decides its distribution

channel for selling cars like some time or level or sometimes two levels marketing channels.

They decide area in which they deal customers. They show the permanent location for selling

the cars. They provides 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.

3.6 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,

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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.

3.7 SEGMENTATION

3.7.1 Meaning of segmentation :-

Market segmentation is the process of dividing a potential market into distinct sub- markets

of consumers with common needs and characterstics. Market segmentation is the startingsteps 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.

3.7.2 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

3.7.3 Segmentation of Market by Maruti Suzuki:-

Maruti Udyog Limited was set up to manufacture low price cars that can be afforded by the

Indians but after 1990 that means after the globalisation ( i.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 :-

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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

3.8 Market Positioning

3.8.1 Meaning :-

Market positioning means placing the potential product in the market that can satisfy the

needs and requirements of the target customers.

3.8.2 Positioning of products by Maruti :-

Management of Marutis 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.

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3.9 Other Strategies adopted by Maruti Suzuki

3.9.1 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.

3.9.2 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.

3.9.3 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

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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 withinsurance companies to cover the costs of warranties offered under this program. The

extended warranty program is intended to maintain the dealers 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.

1.9.4 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

youll 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.

Thats 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 everyones 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.

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3.9.5 Maruti Insurance :-

It was launched in 2002. Maruti Suzuki provides vehicles insurance to its customers with the

help of National Insurance Company , Bajaj Allianz , New India Assurance and Royal

Sundaram. The service was set up by the company with the inception of two subsidiaries

Maruti Insurance Distributors Pvt. Ltd. and Maruti Insurance Brokers Pvt. Ltd. The services

started as a benefit or value addition to the customers and was able to ramp up easily. By

December 2005 they were to sell more than two Million Insurance policies since its

inception.

3.9.6 Maruti Finance :-

To promote the bottom line growth Maruti Suzuki launched Maruti Finance in January 2002.

Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti

and Maruti Country wide with City Group and GE countrywide respectively to assist its

clients in securing loans. Maruti Suzuki tied up with ABN Amro Bank , HDFC Bank , ICICI

Limited , Kotak Mahindra , Standard Chartered and Sundaram to start this venture including

its strategic partnership with SBI in March 2003. Since March 2003, Maruti had sold over12,000 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

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financing of Maruti Suzuki Vehicles . Citi Finance India limited is a wholly owned

subsidiary of City Bank Overseas Investment Corporation Delaware which inturn is a 100%

wholly owned subsidiary of City Bank N.A. City Finance India Limited holds 74% of the

stake and Maruti Suzuki holds the remaining 26%. GE Capital , HDFC and Maruti Suzuki

together came in 1995 to form Maruti Countrywide. Maruti Claims that its finance program

offers most competitive interest rates to its customers which are lower by 0.25% to 0.5%

from the market rates.

3.9.7 Maruti True Value :-

Maruti True service offered by Maruti Suzuki to its customers. It is a market place for the

used Maruti Suzuki Vehicles. One can buy ,sell or exchange used Maruti Suzuki Vehicles

with the help of this service in India. As of 2009 there are 315 Maruti True Value Outlets.

3.9.8 Maruti Driving school :-

As a part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving

school in Delhi. Later the service extended to other cities of India as well. These schools are

modelled on international standards, where the learners go through the classroom session and

practical sessions. Many standards facilities like road behaviour and attitude are taught in

these schools. Before driving actual vehicles participants are trained on stimulators.

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3.10 MARKET SHARE

Graph 3.1

Showing Market Share of Maruti Suzuki

Refrence :- Official website of Maruti Suzuki

(www.marutisuzuki.com)

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Chart 3.1

Showing Market Share in A2 Segment

Description

Maruti 59%

Tata 20%

Hyundai 21%

Refrence :- Auto India (Automobile Magzine), March 2010

Chart 3.2

Showing Market Share in A3 Segment

Description

Tata 20%

Ford 14%

GM 6%

Honda 20%

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2008- 2009 Market Share

Segment A2

2008 2009 Market share


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Maruti 17%

Hyundai 16%

Others 7%

Refrence :- Auto India (Automobile Magzine), March 2010

Chart 3.3

Showing Market Share of passenger cars

Description

Hyundai 17%

Maruti 55%

Tata 16%

Honda 4%

GM 3%

Toyota 10%

Others 3%

Refrence :- Auto India ( Automobile Magzine), March 2010

MARUTI ALL INDIA SALES 3 YEARS TREND

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2008 -2009 Market Share


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Segment 2006-07 Growth 2007-08 Growth 2008-09 Growth

A1 (Mini - Hatchback) 167,561 17% 116,262 -31% 89,223 -23%

A2 (Compact - Hatchback) 176,132 47% 271,280 54% 335,136 24%

A3 (Mid Size) 14,173 28% 29,637 109% 31,939 8%

A4/A5/A6

(Exec./Prem./Luxury)

NA NA NA NA NA NA

C (Van Type) 59,526 15% 65,019 9% 66,366 2%

Passenger Cars - MUL 417,392 28% 482,198 16% 522,664 8%

Passenger Cars - Total

Industry

758,123 26% 885,029 17% 948,669 7%

MUV (Utility Vehicles) 3,555 12% 5,204 46% 4,374 -16%

Passenger Vehicles - MUL 420,947 28% 487,402 16% 527,038 8%

Passenger Vehicles - Total

Industry

901,150 24% 1,050,24

6

17% 1,129,31

6

8%

Table 3.1

Showing Sales of Maruti cars in the year 2006 to 2009

Reference : Autocar ( Automobile Magzine) , March 2010

COMPETITION MODELS

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SegmentMaruti Competition

A1 (Mini - Hatchback) M800

A2 (Compact - Hatchback) Zen, WagonR,

Alto, Swift

Hyundai - Santro & Getz; Tata - Indica &

Palio; GM - Spark & Beat

A3 (Mid Size) Esteem, SX4 Hyundai - Accent; Tata - Indigo & Petra;

Honda - City; GM - Corsa, Optra, &

Aveo; Ford - Ikon, Fusion, & Fiesta

A4/A5/A6

(Exec./Prem./Luxury)

Hyundai - Elantra & Sonata; Honda -

Accord; GM - Vectra; Ford - Mondeo;

Skoda - Octavia & Superb; Toyota -

Corolla & Camry; Daimler Chrysler -

C,E, & S Class;

C (Van Type) Omni, Versa

MUV (Utility Vehicles) Gypsy, Grand

Vitara

Mitsubishi - Pajero; Hyundai - Terracan

& Tucson; Ford - Endeavor; Toyota -

Prado & Innova and Fortuner; Nissan - X

Trail; Honda - CRV; GM - Forrester &

Tavera; Tata - Sumo & Safari; Mahindra -

Jeeps, Bolero, Scprpio and Xylo.

3.11 Customer Satisfaction By Maruti Suzuki

Now a days Customer satisfaction is the main aim or objectives of all the businessorganisations. With the Globalisation and Liberalisation (i.e. opening of Indian market ) the

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competition has increased to a great extent. All the Indian companies or the business

organisations have to match their products with the International standard level in order to

remain in the market. A marketer can remain in the mind of the customers only if he is able to

satisfy the needs and requirements of the potential customers (i.e. when customers get value

for their money). In such situations Maruti Suzuki took an initiative to satisfy its customer in

the following ways.

3.11.1 Customer Service:-

The CRM Program allows Maruti Suzuki to acquire customers, service the customers,

increase the value of customers to the company, and retain good customers and to determine

which customer can be retained or given a higher level of service. A good CRM program can

improve customer service in several ways.

Provides Product Information, product use, information and technical assistance on

websites that are accessible 24 hours a day and 7 days a week

Identifies how each individual customer defines quality and then designs service

strategies for each customer based on these individual requirements and expectations.

Provides a fast mechanism for managing and scheduling follow up sales call to assess

post purchase cognitive dissonance, repurchase, probabilities repurchase times andrepurchase times.

Provides a mechanism to track all points of contact between customer and the company

and do it in an integrated way so that all sources and the types of contact are included

and all the user of the system see the same view of the customer (reduces confusion).m

It also helps to identify problems quickly before they occur.

Provides a user friendly mechanism for registering customer complaints (complaints

that are not registering with the company cannot be resolved and are a major source of

customer dissatisfaction).

Provides a fast mechanism for handling problems and complaints (complaints that are

resolved quickly increased customer satisfaction).

Provides a fast mechanism for correcting services deficiencies (correcting the problem

before other customer experience the same dissatisfaction).

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Uses internet cookies to track customer interest and personalize product offerings

accordingly. Use internet to engage in collaborative customization or real time

customization.

Provides a fast mechanism for managing, scheduling, maintenance, repair and

ongoing support (improve efficiency and effectiveness).

The CRM can be integrated into other cross functional systems and thereby provides

accounting and production information to customers when they want it.

3.11.2 Improving Customer Relationships :-

CRM programs are also able to improve customer relationship. Proponents say this is so

because:-

CRM Technology can track customer interests, needs and buying habits as they

progress their life cycles and tailors the marketing efforts accordingly. This way

customers get exactly want they want as they change.

The technology can track customer products use as the product progresses through its

life cycle and tailors the service accordingly.

These way Customers get what they need as the product ages.

In Industrial markets, the technology can be used to micro- segment the buying centre

and helps co ordinate the conflicting and changing purchase criteria of its members.

When any of the technology driven improvement in customer service (mentioned

above) contribute to long term satisfaction they can ensure repeat purchases, improve

customer relationship, increase customer loyalty, decreases customer turnover,

decreases marketing costs (associated with customer acquisition and customer

training), increases sales revenue and thereby increases profit margins.

Repeat purchase however comes from customer satisfaction which inturn comes from

deeper understandings of each customer, their individual business challenges rather

than a one size fits all approach.

CRM software enables sales people to achieve this one on one approach to selling and

can automate some elements of it via tailorable marketing communication. However

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all of these elements are facilitated by or for humans to achieve. CRM is therefore a

companywide attitude as much as software solution.

Graph 3.2

Showing Customer Satisfaction Index Ranking

Refrence :- Autodrive ( Automobile Magzine), June

2010

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Chapter :- 4

Findings And Analysis

After the study of the project , we have got several information and real facts about Maruti

Suzuki :-

It was the idea of Sanjay Gandhi, son of Indian Prime Minister Indira Gandhi to

provide cheap and low maintenance cars to Indiansand for this purpose Maruti limited

was established but after his death Maruti limited went into collaboration with the

Suzuki Motors of Japan.

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Maruti Suzuki focuses on overall segment of market and the strategied adopted by

Marutis are very appealing and interacting for the customers.

Initially it focused on providing cheap cars to the customers but after Globalisation of

the Indian economy (1990s) many foreign companies started to enter the Indian

market then to stand in the market Maruti Suzuki also started to manufacture luxury

cars also.

Along with manufacturing of cars Maruti also started another operations like :- Maruti

finance, Maruti Insurance, Maruti genuine parts, After sale service, Maruti True

value, Maruti Driving school etc..

Some other findings about Maruti Suzuki

A Buying Experience Like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with

a workforce of over 6000 trained sales personnel to guide our customers in finding the right

car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the

J.D. Power SSI Study 2004.

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%

Project on Maruti Suzuki Modified

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