Final One
Final One
Maruti Suzuki is one of the major automobile manufacturer, manufacturing various cars.
Through a partnership with Suzuki, the company makes models such as the Alto, Gypsy,
Wagon R, Swift, Swift Desire & Sx4 . One of its newest models, the Swift Desire.
Maruti Suzuki India Ltd Formerly known as Maruti Udyog Limited. The Group's principal
activity is to manufacture, purchase and sale of Motor Vehicles and Spare parts.
As in today’s world of business the market place is fierce battleground with national and
international companies striving to outsmart each other. Maruti Suzuki focused on after sale
service for maximum customer satisfaction and leave competition behind to emerge as the
most outstanding automobile company.
The company has two manufacturing facilities. Its Gurgaon facility near New Delhi actually
consists of three integrated plants and has an annual capacity of about 350,000 cars. Its
Manesar facility was built in 2007 and will eventually have an annual capacity of 300,000.
Maruti Suzuki enjoys just over a 50% share of its domestic market.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to product/service.
1
The project was mainly taken with the following objectives:
The initial stage of training was based on reading the files related to the title of the project.
Then to improve analytical skills was given statements time-to-time to analyze and prepare
questionnaire and some reports like Profitability Report and Project Description Report.
The company has been utilizing its resources efficiently and is generating profit. This has been
a great learning experience knowing exactly what functions are being performed as compared
to the book knowledge.
2
1.0 INTRODUCTION
The no. of MNC’s entering in Indian car market is increasing and therefore needed to carefully
plan their entry into emerging markets. Early commitment to a market often results in first
mover advantages that are difficult to replicate. On the other hand, later entrants have the
opportunity to learn from the mistakes of the first entrant. The Indian car market offers useful
lessons in this context. In the 1990s, the Indian Government removed several restrictions in a
bid to attract foreign investors into the automobile industry. Among the first to enter was
Daewoo of South Korea, with its model Cielo, targeted at the upper end of the market. Other
MNCs such as Ford and General Motors also entered the Indian market, followed by Hyundai,
Honda, Toyota and Volkswagen. In this case, we shall examine the strategies of some of the
major players in the Rs 18,500 crore Indian car markets and how successful they have been till
date. The case is relevant to the issues being covered in this book as the Indian car industry is
completely dominated by MNCs*, barring the lone exception, Telco.
Maruti Suzuki
Maruti Suzuki India is India's leading maker of automobiles. Through a partnership with
Suzuki, the company makes models such as the Alto, Gypsy, and Swift. One of its its newest
models, the Swift Dzire, is a compact, entry-level sedan that offers a variety of modern
features. In addition to domestic sales, Maruti Suzuki also exports select models to many
European markets. The company has two manufacturing facilities. Its Gurgaon facility near
New Delhi actually consists of three integrated plants and has an annual capacity of about
350,000 cars. Its Manesar facility was built in 2007 and will eventually have an annual
capacity of 300,000. Maruti Suzuki enjoys just over a 50% share of its domestic market.
3
Maruti Suzuki India Ltd Formerly known as Maruti Udyog Limited. The Group's principal
activity is to manufacture, purchase and sale of Motor Vehicles and Spare parts. The Group is a
subsidiary of Suzuki Motor Corporation. The other activities of the Group comprises of
facilitation of Pre-Owned Car Sales, Fleet Management and Car Financing. The Group also
provides services like framing of customized car policies, economical leasing of cars,
maintenance management, registration and insurance management, emergency assistance and
accident management. The product range includes ten basic models with more than 50 variants.
The Group has operations in over 1220 cities with more than 2628 outlets and also exports cars
to other countries.
Customer satisfaction
Customer satisfaction, a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation. It is seen as a key performance indicator
within business and is part of the four perspectives of a Balanced Scorecard.
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.
4
Measuring customer satisfaction
Organizations are increasingly interested in retaining existing customers while targeting non-
customers measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other options the customer may have and other
products against which the customer can compare the organization's products.
Because satisfaction is basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has recently been
developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality Values'
which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten
domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness,
Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service
Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for
continuous improvement and organizational change measurement and are most often utilized to
develop the architecture for satisfaction measurement as an integrated model. Work done by
Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the
measurement of customer satisfaction with a service by using the gap between the customer's
expectation of performance and their perceived experience of performance. This provides the
measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by
Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap"
described by Parasuraman, Zeithaml and Berry as two different measures (perception and
expectation of performance) into a single measurement of performance according to
5
expectation. According to Garbrand, customer satisfaction equals perception of performance
divided by expectation of performance.
The usual measures of customer satisfaction involve a survey with a set of statements using a
Likert Technique or scale. The customer is asked to evaluate each statement and in term of
their perception and expectation of performance of the organization being measured.
These are divided into 2 categories – Expected services & Value added services.
SQS define the procedures of the quality system in the workshop.
Non implementation of an Expected Service has a negative impact on customer
satisfaction.
Implementation of Value Added services has high positive impact on customer
satisfaction
6
CUSTOMER SATISFACTION PROGRAM
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R- REVISIT- the same dealer workshop for revisit ,giving repeat business.
R- RECOMMEND- the dealer facility to his circle of friends through word of mouth.
R- REPURCHASE- the same make , reiterating his confidence in the brand.
Major:
7
Minor:
To give rating to the car companies on the basis of after sales service provided by them.
Issues which customers give preference while rating customer satisfaction post buying
a car.
Awareness among people regarding the services offered by the various car companies
and car dealers.
The Accessory division at Maruti is relatively younger than the rest of the organization.
Looking at the competitive pressures of the industry in terms of car sales, the strategy Maruti is
following is to expand its reach to the customers and provide all kinds of value addition.
Establishment of the Service at Maruti was one such initiative. The scenario as of today is that,
8
as elaborated as the report progresses, the accessory market is flooded with after market dealers
and almost 60 % sales happening in the accessory sector are attributed to the after market.
As a need to increase market share and profitability while trying to provide the customers with
a wider choice of accessories, the accessory division at Maruti is constantly looking at
improving its existing line of products and also trying to include new and modern accessories
in its line.
The project thus revolves around trying to understand the forces and ascertaining the external
environment which affects sales. Further as the project has progressed it has moved from one
phase to another trying to attain the specific objectives as mentioned above.
9
1.3 Limitations
10
1.4 MARUTI UDYOG LTD. – A BRIEF HISTORY
Although the Indian car Industry was established in the late forties, there was little growth or
technical progress, as passenger cars were given very low priority in the scheme of Centralized
Economic Planning. In the 1980s, the car industry was undergoing technological stagnation
and was characterized by low production volumes, high cost and low productivity. The
consumer had very little choice and the market was selling just around 30,000 cars per year.
There was a clear need to provide a cost effective, reliable and quality car to the customers.
Maruti Udyog Limited was incorporated in such a scenario as a fully owned Government
Company on February 24, 1981 with a resolve to bring about expansion and technological
modernization, of the automobile sector. Thus MUL, when started was entrusted with the task
of achieving the following policy objectives.
Modernization of Indian Automobile Industry.
Production of Vehicles in large volumes which was necessary for economic growth
Production of Fuel-efficient vehicles to conserve scarce resources.
To achieve the above objectives, one of the foremost tasks before Maruti Udyog Limited was
to determine the most suitable product mix and to select the most suitable foreign partner who
would be willing to accept MUL’s requirements in terms of product mix, technology transfer,
and equality participation and had the required technological expertise and experience in
producing high quality, reliable and fuel efficient vehicles. After extensive discussions with
several major European and Japanese car manufacturers, MUL chose Suzuki Motor
Corporation (SMC) of Japan as its partner in Oct 1982, by which SMC acquired 26% share of
the equity with an option to increase it to 40%. Suzuki Motor Corporation (SMC) further
increased its equity holding to 50% in the year 1992, converting Maruti Udyog Ltd., into a
Non-Government Company with a total equity base of Rs. 1322.92 million.
Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader
of the Indian car market for about two decades. Its manufacturing plant, located some 25 km
11
south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a
capability to produce over half a million vehicles.
The company has a portfolio of 10 brands, including Maruti 800, Omni, international brands
Alto, WagonR and Swift, off-roader Gypsy, mid size Esteem, luxury car SX4, the MPV,
Versa and Luxury SUV Grand Vitara XL7.
At the end of 2005-06, Maruti had a market share of about 55.1 per cent of the Indian
passenger car market. The company sold record 5,61,822 vehicles in 2005-06, including
34,784 vehicles exported to Europe and South Asia. Maruti’s cumulative exports are over 4
lakh units.
In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor
Corporation’s R and D hub for Asia. It has introduced upgraded versions of all its existing
products completely designed and styled in-house. Maruti engineers also joined hands with
Suzuki engineers in Japan for the design of hugely successful Swift.
Maruti's contribution as the engine of growth of the Indian auto industry, indeed its impact on
the lifestyle and psyche of an entire generation of Indian middle class, is widely acknowledged.
Its emotional connect with the customer continues.
Customers have rated the company number one in customer satisfaction yet again in the J D
Power Survey 2007. Maruti is the only market leader in the world to be ranked number one in
customer satisfaction, and the only company to top customer satisfaction rankings for six years
in a row. The company has also been ranked number one in J D Power Sales Satisfaction
Survey two years in a row.
The company’s quality systems and practices have been rated as a "benchmark for the
automotive industry world-wide" by A V Belgium, global auditors for International
Organisation for Standardisation.
12
In keeping with its leadership position, Maruti supports safe driving and traffic management
through mass media messages and a state-of-the art driving training and research institute that
it manages for the Delhi Government.
The company also manages the Children’s Park near India Gate in New Delhi.
Maruti's channel partners own and manage 375 sales outlets across 227 Indian cities. The
service network covers over 1092 towns and cities, bolstered by 2096 authorized service
outlets.
The company’s service businesses include sale and purchase of pre owned cars (TrueValue),
Maruti Insurance and Maruti Finance. These initiatives, besides providing total mobility
solutions to customers in a convenient and transparent manner, have helped improve economic
viability of the company’s dealerships.
Maruti had a successful fiscal in 2005-06. Maruti’s Total Income (net of excise) during the
year was Rs. 124,814.3 million, a growth of 10 per cent over the previous year. The company’s
Net Profit during this period was Rs. 11,890.5 million, up 39.2 per cent over 2004-05.
The company is listed on Bombay Stock Exchange and National Stock Exchange.
From its inception Maruti has been in only in one line of business, car manufacturing. The
company manufactures passenger cars at its factory in Gurgaon, Haryana. Maruti enjoyed a
dream run in the pre liberalization era enjoying a market share of over 80%. But with increased
competition in the car market its market share has currently dropped below 60%. Its first
product, Maruti 800 was launched in 1983. The car was launched as a "people’s car" with a
13
price tag of Rs40, 000. This changed the industry's profile dramatically. Maruti 800 was well
accepted by middle income families in the country and its sales increased from 1,200 units in
FY84 to more than 200,000 units in FY99. However in FY2000, this figure came down to
189,184 units, due to rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's
'Matiz'. In 1985, the all-terrain vehicle Gypsy was launched. The Maruti 1000 was launched in
1990 and the Zen in 1993. To counter increasing competition the company has launched a
series of new models and plans to launch one new model every year. The present models
include the 800cc small car, Omni, Esteem, Zen, Alto, Wagon –R, Gypsy, SX4 and Versa.
After MUL’s profitability came under pressure for the very first time in 1998, primarily
because of the entry of a lot of automobile majors, MUL conceived Project Vistaar. This
project was based on the company’s study of auto markets across the world. It was a joint study
by MUL with the consulting firm AT Kearney in 1999. The study showed that, in developed
markets the purchase price of a car is only one third of the total consumer spend during the
ownership cycle of the vehicle. One third more is accounted for by the fuel costs. The rest one
third is accounted for support services such as vehicle insurance, maintenance, etc. Based on
this report and the fact that MUL has one of its core competencies in customer service and
customer relationship management, the company ventured into areas such as used cars, fleet
management and car finance. All of these businesses are high margin businesses and promise
to yield significant gains without any substantial investments. The existing infrastructure is
being used for all these businesses.
14
The government would get a minimum of Rs 2,424 crores from the disinvestment exercise. If
the government gets the rights issue price for the publics offer later, the total proceeds could be
as high as Rs 3,200 crores.
The government has also, in the agreement, barred Suzuki from inducting any other
international or domestic carmaker as an equity partner in the venture after its exit. “Suzuki
cannot sell off its holding to any other car company, including General Motors.
The Maruti rights issue will be of 12, 19,512 shares. After Suzuki picks up the government’s
renounced rights, its holding will go up to 54.2 per cent while the government’s stake would
come down to 45.54 per cent (the balance goes to the employees in proportion to their present
stake).
The government and Suzuki would, within 30 days, sign a new joint venture agreement that
would supersede all previous agreements. Under the proposed agreement, Suzuki will make
MUL the global source for certain models, assist MUL access new export markets, give MUL
discounts on certain components, set up a task force to explore further cost reduction
possibilities and aggressively strengthen MUL’s manufacturing and technical capabilities.
The first public offer of government-held shares would be made by March 2003. Indian and
foreign investors would be eligible to subscribe to the issue. After the first public offer, the
government’s share would come down to 25 per cent. The second round of public offer would
see the government completely exiting Maruti.
After the sale of the initial tranche of 36 lakh shares underwritten by Suzuki at Rs 2,300 per
share, the government will have a put option on the remaining shares at a discount of 15 per
cent and/or 10 per cent of average market price. The government always has a put option up to
April 30, 2004 at the present book value of Rs 2,000 per share or at the book value prevailing
at the time of sale, whichever is higher.
15
Global advisors for the domestic issue would be appointed within 30 days. And the
government will soon start a book building exercise for price discovery.
SUZUKI MOTOR CORPORATION:
Starting business in 1909 as Suzuki Loom Works, the firm was incorporated in 1920. Since
foundation Hamamatsu, Japan, SUZUKI has steadily grown and expanded. During the post-
W.W.II period, motorized bike 'Power free' which earned a good reputation was followed by
125cc motorcycle 'Colleda', and later by the pioneering 'Suzulight' lightweight car that helped
bring Japan's automotive revolution. Each of these was epoch-making in their own right as they
were developed and manufactured by optimizing the most advanced technologies of that
period.
Today, constantly going forward to meet changing lifestyles, the SUZUKI name is seen on a
full range of motorcycles, automobiles, outboard motors and related products such as
generators and motorized wheelchairs
The mark trademark is recognized by people throughout the world as a brand of quality
products that offer both reliability and originality. SUZUKI stands behind this global symbol
with a sure determination to maintain this confidence in the future as well, never stopping in
creating such advanced 'value-packed products'.
16
Ticker : 532500
Exchanges : BOM
Country : INDIA
Employees : 7090
Maruti Suzuki India is India's leading maker of automobiles. Through a partnership with
Suzuki, the company makes models such as the Alto, Gypsy, and Swift. One of its its newest
models, the Swift Dzire, is a compact, entry-level sedan that offers a variety of modern
features. In addition to domestic sales, Maruti Suzuki also exports select models to many
European markets. The company has two manufacturing facilities. Its Gurgaon facility near
New Delhi actually consists of three integrated plants and has an annual capacity of about
350,000 cars. Its Manesar facility was built in 2007 and will eventually have an annual
capacity of 300,000. Maruti Suzuki enjoys just over a 50% share of its domestic market.
17
Maruti Suzuki India Ltd Formerly known as Maruti Udyog Limited. The Group's principal
activity is to manufacture, purchase and sale of Motor Vehicles and Spare parts. The Group is a
subsidiary of Suzuki Motor Corporation. The other activities of the Group comprises of
facilitation of Pre-Owned Car Sales, Fleet Management and Car Financing. The Group also
provides services like framing of customized car policies, economical leasing of cars,
maintenance management, registration and insurance management, emergency assistance and
accident management. The product range includes ten basic models with more than 50 variants.
The Group has operations in over 1220 cities with more than 2628 outlets and also exports cars
to other countries.
Company’s Vision
MUL’s vision for the future is to be:
“The Leader in the Indian Automobile Industry,
Creating Customer delight and Shareholders wealth;
A pride of India”.
Core Values
The Five Values identified are as follows:
Customer Obsession
Fast, Flexible and First mover
Innovation and Creativity
Networking and Partnership
18
Openness and Learning
Milestones
1983 Maruti 800, a 796 cc hatchback, India's first affordable car was produced.
1984 Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in
production.
1995 Second plant launched, the installed capacity reached 200,000 units.
1999 Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai
as social initiatives.
19
2000 IDTR (Institute of Driving Training and Research) launched jointly with
Delhi government to promote safe driving habits.
2004 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.
2006 Launched DIL-SE- a special program for indians living abroad or nris to
facilitate them to gift maruti cars online to friends and relatives back at home
Maruti launched WagonR duo with LPG
Leading auto component maker from Japan, Belsonica Corporation
announced a joint venture company with MUL. Maruti will hold a 30%
stake in the venture whereas Belsonica will hold 70% stake
Maruti innograted a new institute of driving training and research(IDTR)
New Zen Estilo launched in November .2006
J.D. power survey award for the seventh year
20
India limited
Maruti joins hands with the Gujrat government. to set up driving and
technical training institute for tribal youth
Change in leadership- Mr. S. Nakanishi appointed as new MD , and
Mr. R.C. Bhargav appointed as chairman by board of directors
J.D. power survey award for the eighth year
Indian customer satisfaction index award
Indian automotive performance, execution and layout study(APEAL)
award
Indian initial quality study
2008 World premiere of concept car a-star at the 9th auto expo, new delhi
Won car manufacturer award of the year
Bags the award for "most customer responsive company" in the
automotive sector
Alto crosses one million mark
MOU signed with Adani's for setting up mega car terminal at Mundra
Swift DeZire launched
Swift crosses the 250,000 sales units
Launched maruti800 LPG
Inauguration of the KG Engine facility at Gurgaon
Wins J.D. Power Customer Satisfaction Index nine times in a row
Auto monitor awards for 2007
Young achievers, a new category this year- Rajesh Singh Gogu and
Saurabh Singh were awarded for designing concept a- star
Facility
Maruti have two state-of-the-art manufacturing facilities in India. The first one is at Gurgaon
spread over 300 acres and the other at Manesar, spread over 600 acres in North India
.
The Gurgaon facility
21
Our facility in Guragoan houses three fully integrated plants. While
the three plants have a total installed capacity of 350,000 cars per
year, several productivity improvements or shop floor Kaizens over
the years have enabled the company to manufacture nearly 700,000
cars per year at the Gurgaon facilities.
The entire facility is equipped with more than 150 robots, out of
which 71 have been developed in-house. More than 50 per cent of our
shop floor employees have been trained in Japan.
The plant was inaugurated in February 2007. The World Car derived
from concept A-Star would be manufactured here.
At present the plant rolls our World Strategic Models Swift & SX4
and DZire.The plant has several in-built systems and mechanisms.
The plant at Manesar is the company's fourth car assembly plant and started with an initial
capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year by October
2008.
22
Diesel Engine Plant- Suzuki Powertrain India Limited
The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in
which SMC holds 70 per cent equity the rest is held by MSIL.
This facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be
scaled up to 300,000 engines/annum by 2010.
23
Maruti Suzuki has been in the car business for 25 years. We have learnt that this business,
more than others, demands excellence in diverse areas. It needs, of course, good products and a
robust sales and support network. But it requires us also to partner and nurture a supplier base
over long periods of time. It demands acumen for logistics and inventory.
Increasingly, this business relies on a thriving design and development capability. It seeks the
discipline of systems and team work to handle complex operations, and the vitality of kaizen to
attain ever higher standards in quality and cost. It requires sensitivity to the customer and
society, and speed and flexibility to meet their needs. While demanding a sharp understanding
of the domestic customer, it seeks growing presence of products in developed markets
overseas. The car business needs stamina and patience, order and creativity, skills hard and soft
and it needs all of them to co-exist in the right proportion.
After about a quarter century of leadership, marked by many ups and a few downs, we resolve
to continue pursuing excellence in the diverse facets of our business. That, for us, is the way to
sustained business, success and continuing leadership. We commit ourselves to achieve sale of
a million cars a year in India by 2010-11, and to the million promises that we must fulfill to
attain that league.
24
manufacturers – our partners in growth. Hundreds of second and third tier vendors and as many
as 215 suppliers and a number of foreign technology collaborations partner our businesses.
They account for the present outsourced value which is over three fourths of the actual car
value
25
In recent years, there are clear trends that customer expectations from a car have evolved
considerably. Car customers now seek contemporary styling, international quality and latest
features that enhance their safety and convenience, while expecting performance and fuel
efficiency just like their parents did before them.
26
Nikkei Monozukuri Award
In recognition of craftsmanship - and technology-related excellence to Manesar Plant
27
The Company was able to keep its retention levels confined to technical training, were trained
in behavioral attributes as well. Sales managers were given exposure to manufacturing tools
like root cause analysis and problem solving. The 360 Degree Feedback Program, which
started with senior management last year, covered well above industry benchmarks. This was a
result of several focused efforts by the Company. Shop floor workers, normally more managers
and executives this year.
28
Sensitivity towards all stakeholders.
Since inception, the Company has
proactively taken care of the needs and
sustainable growth of its stakeholders and
they in turn, have supported the Company
in achieving its vision and business
results year after year. As a result,
sustainability has become an integral part
of the Company's approach to business
and decision making.
Sustainability at Maruti Suzuki refers to sum of total of all the actions and intiatives undertaken
by the Company for its long-term survival and growth.
To achieve longterm sustainability and prosperity the Company has nurtured a socially
responsible behaviour towards its various stakeholders
In any consumer durable industry, especially the automobile industry, ‘After Sales Service’ is
very important. This is because ‘after sales service’ is what helps companies retain markets.
Spare Parts Division plays a crucial role in providing service to customers.
Maruti’s spares policy is: To achieve customer satisfaction by timely supply of Maruti
Genuine Parts (MGP) at a reasonable cost and at convenient locations.
Spare Parts has four departments:
1. Accessories
29
2. Warehousing & Dispatch
3. Spare Parts Sales
4. Spare parts procurement.
From its inception Maruti has been in only in one line of business, car manufacturing. The
company manufactures passenger cars at its factory in Gurgaon, Haryana. Maruti enjoyed a
dream run in the pre liberalization era enjoying a market share of over 80%. But with increased
competition in the car market its market share has currently dropped below 60%. Its first
product, Maruti 800 was launched in 1983. The car was launched as a "people’s car" with a
price tag of Rs40, 000. This changed the industry's profile dramatically. Maruti 800 was well
accepted by middle income families in the country and its sales increased from 1,200 units in
FY84 to more than 200,000 units in FY99. However in FY2000, this figure came down to
189,184 units, due to rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's
'Matiz'. In 1985, the all-terrain vehicle Gypsy was launched. The Maruti 1000 was launched in
1990 and the Zen in 1993. To counter increasing competition the company has launched a
series of new models and plans to launch one new model every year. The present models
include the 800cc small car, Omni, Esteem, Zen, Alto, Wagon –R, Gypsy, SX4 and Versa.
After MUL’s profitability came under pressure for the very first time in 1998, primarily
because of the entry of a lot of automobile majors, MUL conceived Project Vistaar. This
project was based on the company’s study of auto markets across the world. It was a joint study
by MUL with the consulting firm AT Kearney in 1999. The study showed that, in developed
markets the purchase price of a car is only one third of the total consumer spend during the
ownership cycle of the vehicle. One third more is accounted for by the fuel costs. The rest one
third is accounted for support services such as vehicle insurance, maintenance, etc. Based on
30
this report and the fact that MUL has one of its core competencies in customer service and
customer relationship management, the company ventured into areas such as used cars, fleet
management and car finance. All of these businesses are high margin businesses and promise
to yield significant gains without any substantial investments. The existing infrastructure is
being used for all these businesses.
Competition
Honda
Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture
between Honda Motor Co. Ltd., Japan and Siel Limited to manufacture HONDA passenger
cars in India. The company is ISO 9002 & ISO 14001 certified. The plant was set up in 1997
with an investment of Rs. 450 crores (paid up capital Rs. 360 crore) and in 2005 the investment
stood at Rs. 800 crores. Their product range in India includes the Honda City ZX, Accord and
CR-V. City ZX is today recognized as one of the most successful car brands in the country. It
is strongly associated with durability, reliability, quality and fuel-efficiency. City ZX, the latest
version of the City, including the VTEC version, was introduced on October 5, offering
enhanced power and style.
In addition to the City ZX, Accord and CR-V models made them a premium segment leader in
the Indian passenger car industry.
Honda is operating only in segment D cars i.e. the premium segment that is in direct
competition to Maruti SX4.
Toyota
Toyota Genuine Accessories are manufactured to the exact specifications of each individual
Toyota model. This means they fit precisely and conform to every contour of the vehicle.
Toyota Genuine Accessories are designed, tested and manufactured to strict Toyota global
standards. This quality and reliability is supported with up to a 3 year, 100,000km warranty.
Hyundai
31
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest and the fastest growing car manufacturer in
India. HMIL presently markets 31 variants of passenger cars in six segments. The Santro in the
B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment,
the Sonata Embera in the E segment and the Tucson in the SUV segment.
Hyundai is operating in segment B, C and D giving intense competition to Maruti range of
models in all the segments.
Tata Motors
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 crores
(USD 5.5 billion) in 2005-06. It is the leader by far in commercial vehicles in each segment,
and the second largest in the passenger vehicles market with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's fifth largest medium and
heavy commercial vehicle manufacturer.
2. DATA ANALYSIS
Research Methodology
Research Design
1. Data design
Data design consists of two parts first part is preparing instrument for the
2. Instrument Design:
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Data is designed through questionnaire method, is used as the instrument for the Collection of
the data. Related questions were asked to respondents. And getting their views about after sales
service . Hence the data collection instrument is survey (Questionnaire) method.
3. Instrument Revision:
There are around 13 questions were prepared to ask the respondent to get actual information
about the topic. Related question were asked to know the, After sales service provided by car
companies and satisfaction level of the consumers.
DATA COLLECTION
Method adopted for the data collection is survey method. I asked questions related to the
subject and collected their responses by personal or impersonal means. Here the data was
collected through various respondents who are using Maruti, Hyundai, and Tata Motors cars.
Hence questionnaire was formed, and data is collected from respondents about their
satisfaction about the service provided by car companies.
Primary data and secondary data are collected through various sources. Like….
Primary data:
Secondary data:
Internet
Magazines
Newspapers
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INSTANT FEEDBACK FORM
Objectives:
Methodology:
The methodology used in this phase was based on printed questionnaire meant especially for
the Vehicle Owners. The questions were framed keeping in view the objectives of the survey it
Target segment
The chosen target segment for the survey was the following:
Accidental Cases
Basically the idea was to cover the Dealers from various zones to get their overall views
regarding Service
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Data Collection:
The survey method was used to collect the data. The data collection period was done for a
period of seven days. This included taking responses for the dealer questionnaire. A sample
Objectives:
Methodology:
The methodology used in this phase was based on printed questionnaire meant especially for
the Vehicle Owners. The questions were framed keeping in view the objectives of the survey it
Target segment
The chosen target segment for the survey was the following:
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Recent Customers
Loyal Customer
Basically the idea was to cover the Dealers from various zones to get their overall views
regarding Service
Data Collection:
The survey method was used to collect the data. The data collection period was done for a
period of seven days. This included taking responses for the dealer questionnaire. A sample
3. DATA REPRESENTATION
Data Analysis:
Q.1- Is this the second time you have come for the same problem / is it a repeat problem?
A Yes 30
B No 70
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Repeation of Problem
30%
Yes
No
70%
Findings
The pie chart represents what percentage of people come at the workshop with a repeat
problem. It shows that only 30% of the people arrive at the workshop with a repeat job, i.e.,the
were not satisfied with the previous service. The rest 70% people are those who were satisfied
earlier
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Charges for service
0 10 20 30 40 50 60
Finding
The above graph represents whether the customers were satisfied with the estimate cost given
to them for their car servicing. It shows that 55% people were satisfied with the charges as
intimated earlier, the rest 45% people had to pay the charges more than the estimated cost.
Q.3- Was your car ready when you were promised by the service advisor?
A Yes 85
B No 15
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Delivery on Time
15%
Yes
No
85%
Finding
The above pie chart represents what percentage of the people who were delivered with their
vehicle on time. It shows that 85% of the people were delivered with their vehicle on time , the
rest 15% of people were delayed for the delivery due to some technical faults.
Q.4- Were you offered a road test of your vehicle prior to its delivery?
A Yes 90
B No 10
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Test Drive
90%
Yes
No
10%
Finding
The above pie chart represents the percentage of people who were offered road test before the
delivery of their vehicle. It shows that 90% of the people were road test before the delivery of
their vehicle, the rest10% were not offered road test before the delivery of their vehicle.
a Unacceptable 1
b Poor 9
c Average 25
d Good 35
e Excellent 30
40
35 35
30 30
25 25
20
15
10 9 Quality Of Washing
5
1
0
.
t.. or
ep ge
ac
c Po ra od
Un v e
Go nt
A elle
c
Ex
Finding
The above graph represents the rating given by the customers on the washing quality of the car.
It shows that 30% of people rated as excellent , 35% of the people rated as good, 25% people
rated as average, 9% of people rated as poor, the rest 1% rated as unacceptable.
If the washing of the car is not ok, please specify the area where washing is not done properly
a upper body 1
b interior 4
c engine room 3
d outside 2
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4
4
3.5
3 3
2.5
2
2
1.5
1 Poorly Washed Area
1
0.5
0
upper
body interior
engine
room outside
Finding
The above graph represents the number of people who were not satisfied with the washing of a
particular area of the car. It shows that 4 people were not satisfied with the washing of the
interiors of he car,3 people were not satisfied with washing of the engine room, 2 people were
not satisfied with the washing of outer body, only 1 person was not satisfied with the washing
of the upper body of the car.
Q.6- How do you rate the customer lounge in terms of cleanliness, comfort & amenities?
A Unacceptable 0
B Poor 10
C Average 22
D Good 38
E Excellent 30
42
40
38
35
30 30
25
22
20
15
10 Lounge Rating
10
5
0
0
.
t.. or
ep ge
ac
c Po ra od
Un v e
Go nt
A elle
c
Ex
Finding
The above graph represents the rating given to the customer lounge. It shows that 30% of the
people rated it as excellent, 38% rated it as good, 22% rated it as average, 10% rated it as poor
& no person rated it as unacceptable.
Data Analysis:
Q.1- Is this the second time you have come for the same problem / is it a repeat problem?
A Satisfied 77
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B Dissatisfied 23
77%
Satisfied
Dissatisfied
23%
Finding
The above pie chart represents the percentage of people satisfied or dissatisfied with the
performance of their vehicle after its service. It shows that 77% people were satisfied & the
rest 33% were not satisfied about the performance of their vehicle after its service.
A Yes 66
B No 33
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Demanded Repairs Completed
33%
Yes
No
67%
Finding
The above pie chart represents the percentage of people who agree or disagree that their
demanded repairs were completed. It shows that 67% of people agree while 33% of the people
disagree about the completion of their demanded repairs.
3. Were all the problems of your vehicle fixed in the first visit?
A Yes 60
B No 40
45
All Problems fixed in first visit
40%
Yes
No
60%
Finding
The above pie chart represents the percentage of people who agree or disagree that their
problems were fixed at first visit only. It shows that 60% of people agree while 40% of the
people disagree that their problems were fixed at the very first visit.
A Yes 70
B NO 30
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Vehicle delivered at the promised time
70%
Yes
NO
30%
Finding
The above pie chart represents the percentage of people who agree or disagree that their
vehicle was delivered on time. It shows that 70% of people agree while 30% of the people
disagree that their vehicle was delivered on time.
A Satisfied 70
B Dissatisfied 30
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Satisfied With the Washing Quality
70%
Satisfied
Dissatisfied
30%
Finding
The above pie chart represents the percentage of people satisfied or dissatisfied with the
washing quality of their car. It shows that 70% people were satisfied while the rest 30%
were dissatisfied with the washing quality of the car.
A Yes 55
B No 45
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Explanation of Service charges
55%
Yes
No
45%
Finding
The above pie chart represents the percentage of people whether they were they were given
an explanation about the service charges of their car at the time of the delivery. It shows
that 55% people said yes wile the rest 45% people said no.
A Satisfied 71
B Dissatisfied 29
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Overall Satisfaction
Dissatisfied 29
Overall Satisfaction
Satisfied 71
0 10 20
30 40
50 60
70 80
Finding
The above graph represent the overall satisfaction of the customer with the service
experience provided. It shows that 29% people were dissatisfied while the rest 71% people
were satisfied.
A Yes 32
B No 68
50
Own Other Maruti Vechile
Yes No
68%
32%
Finding
The above graph represents the percentage of people who owns any other maruti car or not.
It shows that 68% people said yes while 32% people said no.
a (1-2) Unacceptable 0
b (3-4) Poor 8
c (5-6) Average 25
d (7-8) Good 32
e (9-10) Excellent 35
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35 35
32
30
25 25
20
15
10 Service Experience
8
5
0
0
.
t.. or
ep ge
ac
c Po ra od
Un v e
Go nt
A elle
c
Ex
Finding
The above graph represents the rating given to the service experience . It shows that 35% of the
people rated it as excellent, 32% rated it as good, 25% rated it as average, 8% rated it as poor
& no person rated it as unacceptable.
4. CONCLUSION
The Company has applied its resources efficiently and has been earning reasonable Profit. The
company has paid considerable attention towards the core area of profit maximization, i.e.,
customer satisfaction. The company has followed various standards set up by the parent
company on customer satisfaction which has led the company in achieving the profit
maximization goal as well as build a good customer relationship.
As in today’s world of business the market place is fierce battleground with national and
international companies striving to outsmart each other. Maruti Suzuki focused on after sale
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service for maximum customer satisfaction and leave competition behind to emerge as the
most outstanding automobile company.
The company has taken each and every step possible in achieving maximum customer
satisfaction.
It has been a great experience knowing exactly what functions are being performed as
compared to book knowledge.
Maruti should have tie-up with various vendors of a particular product so that there should
not be any dependency on a particular vendor in order to avoid shortage.
Provide spare parts at the same time of launching new Car models
Spare parts should be made available to the customer along with the new car models in
order to prevent them from going to aftermarket
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Preventive measures should be taken against supply of duplicate MGA in the market in
after market.
5.0 References:
Books:
Philips Kotler, Marketing Management, John Wiley and Sons, New Jersey.
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Leon G Schiffman and Leslie Lazar Kanuk, Consumer Behavior, Prentice Hall, India.
Websites:
www.marutisuzuki.com/corporate.aspx/
http://www.gm.com/corporate/investor_information/
http://www.hyundai.co.in/aboutusn.asp?pageName=comp
http://www.toyota.com/about/our_business/our_history/index.html
http://www.tatamotors.com/
http://world.honda.com/about/
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INSTANT FEEDBACK FORM
Dear Customer,
Thank you for getting your car serviced. We would like to know how we performed. Please
spare a few moments to give us your valuable feedback on the following as it will help us in
improving our services
Q.1- Is this the second time you have come for the same problem / is it a repeat problem?
Yes No
Q.3- Was your car ready when you were promised by the service advisor?
Yes No
Q.4- Were you offered a road test of your vehicle prior to its delivery?
Yes No
1 2 3 4 5 6 7 8 9 10
Unacceptable Poor Average Good Excellent
If the washing of the car is not ok, please specify the area where washing is not done properly
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a) upper body b) interior c) engine room d) outside
Q.6- How do you rate the customer lounge in terms of cleanliness, comfort & amenities?
1 2 3 4 5 6 7 8 9 10
Unacceptable Poor Average Good Excellent
Satisfied Dissatisfied
If dissatisfied, find out the cause and ask for a convenient date / time for bringing the
vehicle to the workshop.
Yes No
Yes No
Yes No
If No, then delayed by how much time? Enter the details in PSF list.
Yes No
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6. Was the explanation of service charges done at the time of delivery?
Yes No
Satisfied Dissatisfied
Yes No
1 2 3 4 5 6 7 8 9 10
Unacceptable Poor Average Good Excellent
If the customer is satisfied and the rating is more than 7, inform the customer:
Your next service is due at_______ km’s or ______ months.
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