PROBLEM STATEMENT

 Analysis of Customer Satisfaction About Maruti Car

RESEARCH OBJECTIVE

 To understand the customer’s Expectations

 To identify problem areas in serving the customers

 To measure the customer satisfaction

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 BACKGROUND
Customer Satisfaction:-

We believe that customers estimate which offer will deliver the most value. Customers are value

maximizers, within the bound of search costs and limited knowledge, mobility and income. They

form an expectation of value and act upon it. Whether or not the offer lives upto expectation affects

both, satisfaction and repurchase probability.

Whether the customer is satisfied after purchase depends upon the offer’s performance in reaction to

buyer’s expectation. In general, satisfaction is a person’s feeling of pleasure or disappointment

resulting from comparing a product’s perceived performance (or outcome) in relation to his or her

expectation. If the performance falls short of expectation, the customer is dissatisfied. If the

performance is at par with expectations, the customer is neutral. If the performance exceeds

expectations, the customer is highly satisfied and feels proud about his buying decision.

The link between customer satisfaction and customer loyalty are not proportional. Suppose customer

satisfaction is rated on a scale from 1 to 5. At a very low level of customer satisfaction (Level 1),

customer are highly dissatisfied with company and even they will spread bad image about company.

Between level 2 to level 4, customers are fairly satisfied with company but chances are likely to

switch to competitors if better promotional schemes may offered. At level five the customer is very

likely to repurchase and even spread good word of mouth. Highly satisfied or delighted customers

have an emotional bonding and attachment with brand or company, not just a rational preference.

The key to generating high customer loyalty, is to deliver high customer value. The value

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proposition consists of the whole cluster of benefits the company promises to deliver. It is more than

the core positioning of the offering.

Well known Phillip – Kotler ratios :- the magic numbers with regard to customer satisfaction

Five Cost of getting a new customer / Cost of keeping old one

Ten The number of people a disgruntled customer will complain / crib to

Eighty The percentage of Dissatisfied customer that will abandon ship.

Four Percentage of customers, will tell you when you mess up.

Customer Expectations :-

Buyers form their expectation from past buying experience, friends and associates, advice and

marketing persons, promotion campaigns and competitors information and promises. If any

company raises expectation too high, the buyer is likely to be disappointed. However if the company

sets the expectation too low, it will not be attract enough buyers. Some of the companies are raising

expectations and delivering performance to match.

Recommendation to companies : Under Commit and over achieve rather than over commit and

under achieve will help in satisfying customer’s expectation.

What do customer want?

Before creating tools to measure the level of satisfaction, it is important to develop a clear

understanding of what exactly the customer wants. One need to know what the customers expect

from the product and services provided.

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Customers expectations are of two types : Expressed and implied.

Expressed Customer Expectations are those requirements that are written down in the
contract or specified in product catalogue and agreed upon by both the parties. Ex. Product

specifications and Model confirmation. Supplier’s performance against these requirements is most

of the time directly measurable.

Implied Customer Expectation are not written or spoken are but they are the one that

customer would “expect “ the supplier to meet nevertheless. Ex. Customer would expect service

representative to be knowledgeable and competent to solve on the spot.

There are many reasons why customer expectations are likely to change over period of time.

Improvement in process and technology, changes in priorities, improvement in quality of service

provided by competitors etc. The customer is always right. Customer Satisfaction is customer’s

perception that suppliers need to meet or exceed their expectations.

The Satisfied Customer ?

A customer goes to buy a product/service with certain expectations. Key to customer satisfaction

lies in meeting these expectations. But it is very difficult to explain how these expectations are

formed and process that goes in the customer’s mind in judging customer satisfaction.

Expectations are created in customer’s mind though promotional claims made by companies though

ad campaign. Ex. Domino’s claims delivery within 30 minutes, customers expects the same. If

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delivery happens at 35th minute, the customer is dissatisfied, Though same customer has ordered

pizza to other restaurant and delivered in 45 minutes, he will not mind it.

Moments of truth :-

Expectation---------------satisfaction---------------------reality

If you get what you expected

Expectation---------------dissatisfaction----------------reality

If you get less than you expected

Expectation---------------delight--------------------------reality

If you get more than you expected

Customer Satisfaction Index (CSI) :

The customer satisfaction index represents the overall satisfaction level of particular customer as

one number, usually as a percentage. Since the survey feedback comes from many respondents in

one organization, the bias due to individual perception needs to be accounted for. The CSI rates the

companies on how good they are at in satisfying their customer needs.

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In India automobile industry CSI ranking is done by J.D. Power as a unanimous agency. Maruti

ranks the highest in Automotive SSI and CSI rating according to J.D.Power for 10 years

consecutively. It is possible only because According to Maruti

“A customer is the most important visitor on our premises

He is not dependent on us , We are dependent on him,

He is not an interruption on our work, He is the purpose of it.

He is not an outsider on our business, He is part of it.

We are not doing him a favor serving him,

He is doing us a favor by giving us the Opportunity to do so”

Indian Four Wheeler Industry

Evolution
The Indian automobile industry developed within the broader context of import substitution during

the 1950s. The distinctive feature of the automobile industry in India was that in line with the

overall policy of State intervention in the economy, vehicle production was closely regulated by an

industrial licensing system till the early 1980s that controlled output, models and prices. The cars

were built mostly by two companies, Premier Automobiles Limited and HM. However, the Indian

market got transformed after 1983 following the relaxation of the licensing policy and the entry of

MUL into the car market. In 1991, car imports were insignificant, while component imports were

equivalent to 20% of the domestic production, largely because of the continuing import of parts by

MUL. The liberalization of the Indian automotive industry that began in the early 1990s was

directed at dismantling the system of controls over investment and production, rather than at

promoting foreign trade. Multinational companies were allowed to invest in the assembly sector for

the first time, and car production was no longer constrained by the licensing system. However,

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QRs on built-up vehicles remained and foreign assemblers were obliged to meet local content

requirements even as export targets were agreed with the Government to maintain foreign

exchange neutrality. The new policy regime and large potential demand led to inflows of foreign

direct investment (FDI) by the mid-1990s. By the end of 1997, Daewoo, Ford India, GM,

DaimlerChrysler and Peugeot had started assembly operations in India. They were followed by

Honda, HMIL, and Mitsubishi.

Current scenario in Passenger Car Category

The dominant basis of competition in the Indian passenger car industry has changed from price to

price-value, especially in the passenger car segment. While the Indian market remains price

sensitive, the stranglehold of Economy models has been slackening, giving way to higher-priced

products that better meet customer needs. Additionally, a dominant trend in the Indian passenger car

segment is the increasing fragmentation of the market into sub-segments, reflecting the increasing

sophistication of the Indian consumer. With the launch of new models from FY2000 onwards, the

market for MUVs has been redefined in India, especially at the upper-end. Currently, the higher-end

MUVs, commonly known as Sports Utility Vehicles (SUVs), occupy a niche in the urban market,

having successfully shaken off the tag of commercial vehicles attached to all MUVs till recently.

Domestic car manufacturers are now venturing into areas such as car financing, leasing and fleet

management, and used-car reconditioning/sales, to complement their mainstay-business of selling

new cars.

SOME UNKNOWN FACTS ABOUT THE INDUSTRY IN INDIA:

• The first automobile in India rolled in 1897 in Bombay.

• India is being recognized as potential emerging auto market.

• Foreign players are adding to their investments in Indian auto industry.

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 • Within two-wheelers, motorcycles contribute 80% of the segment size.

• Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).

• Tata Motors dominates over 60% of the Indian commercial vehicle market.

• India is 11th largest passenger car market in the world

• India ranks 12th in the list of the world’s top 15 automakers.

• India is the largest three-wheeler market in the world.

• India is the largest two-wheeler manufacturer in the world.

• India is the second largest tractor manufacturer in the world.

• India is the fifth largest commercial vehicle manufacturer in the world.

• The number one global motorcycle manufacturer is in India.

• India is the fourth largest car market in Asia - recently crossed the 1 million mark.

“The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent”.
Threat from the new players: Increasing

Most of the major global players are present in the Indian market; few more
are expected to enter.
COMPETITIVE
FinancialFORCES IN INDIAN
strength assumes importancePASSENGER CAR
as high are required forMARKET
building
capacity and maintaining adequacy of working capital.
Access to distribution network is important.
Lower tariffs in post WTO may expose Indian companies to threat of
imports.

Market strength of suppliers:

Low Market strength of consumers:
Increasing
A large number of
automotive components Increased awareness among
suppliers. consumers has increased
Automotive players are expectations. Thus the ability to
rationalizing their vendor innovate is critical.
Rivalry within the Product differentiation via new
base to achieve consistency
in quality. industry: High features, improved performance and
after-sales support is critical.
• There is keen Increased competitive intensity has
competition in select limited the pricing power of
segments. (compact and manufacturers.
mid size segments).
• New multinational
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players may enter the
Threat from substitutes: Low to medium
market.
With consumer preferences changing, inter product
substitution is taking place (Mini cars are being
replaced by compact or mid sized cars).
In recent years, even though the ratio of sales to capacity (an important indicator of the ability to

reach break-even volumes) of the domestic car manufacturers have improved, it is still low for quite

a few car manufacturers in India. India is also likely to increasingly serve as the sourcing base for

global automotive companies, and automotive exports are likely to gain increasing importance over

the medium term. However, the growth rates are likely to vary across segments. Although the Mini

segment is expected to sustain volumes, it is likely to continue losing market share; growth in the

medium term is expected to be led largely by the Compact and Mid-range segments. Additionally,

in terms of engine capacity, the Indian passenger car market is moving towards cars of higher

capacity. This apart, competition is likely to intensify in the SUV segment in India following the

launch of new models at competitive prices.

Auto policy of the Government of India

In order to make India a power to reckon with in the automotive sector the government launched the

Automotive Mission Plan (AMP) 2006-2016.

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The vision of the AMP is "to emerge as the destination of choice in the world for design and

manufacture of automobiles and auto components with output reaching a level of US$ 145 billion

accounting for more than 10 per cent of the GDP and providing additional employment to 25

million people by 2016."

As per the AMP, it is estimated that the total turnover of the automotive industry in India would be

in the order of US$ 122 billion - US$ 159 billion in 2016. It is expected that in real terms, India

would continue to enjoy its eminent position of being the largest tractor and three-wheeler

manufacturers in the world and the world's second largest two-wheeler manufacturer. By 2016,

India will emerge as the world's seventh largest car producer (as compared to the eleventh largest

currently) and retain the fourth largest position in world truck manufacturing sector. Further, by

2016, the automotive sector would double its contribution to the country's GDP from current levels

of five per cent to 10 per cent.

Passenger Car performance in Year 2008-09 and Future

The demand for smaller and cheaper cars was stronger in mature urban markets. Moreover, the

demand from rural areas of India was also appreciable, and it is boosting the automobile market.

Moreover, it is anticipated that the growth in passenger vehicles sales will stem from small cities

and towns in the coming times. Also, with Tata Motors’ Nano, the cheapest car in the world, due to

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hit the Indian roads in July 2009, the demand for cars is expected to go up. The launch of Nano may

also result in the formation of a new category of car owners.

Moreover, according to a new study released by global consultancy firm Deloitte, at least one Indian

company will be among the top six carmakers that would dominate the global auto industry by

2020. According to the study, the car industry would see a massive capacity building in low-cost

locations like India and China as manufacturers shift base from developed regions.

Though growth in passenger cars is recorded at 5.9% in the year 2008-09 . Weak consumer

sentiments and tight credit disbursement impacted passenger cars growth in 2008-09

Production of Passenger cars

Although the sector was hit by economic slowdown, overall production (passenger vehicles,

commercial vehicles, two wheelers and three wheelers) increased from 10.85 million vehicles in

2007-08 to 11.17 million vehicles in 2008-09. Passenger vehicles increased marginally from 1.77

million to 1.83 million . In recent times, India has emerged as one of the favourite investment

destinations for automotive manufacturers.

• Mercedes-Benz is planning to launch over-dimensional-cargo (ODC) vehicles and long-

haulage trucks that can carry up to 240 tonnes in India soon.

• Hyundai has made India its global hub for manufacturing small cars. It will invest US$ 1

billion in its second plant in Chennai by 2013. In addition, it is also investing US$ 40

million in its research and development (R&D) facility in Hyderabad.

• General Motors has so far invested about US$ 1 billion into its Indian operations.

Domestic and Export Sales of Passenger Cars :

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During the fiscal 2008-09, the sales of domestic passenger cars increased by 1.31% to reach

12,19,473 Units from 12,03,733 Units in the fiscal 2007-2008. In March 2009. The stimulus aid

granted by the government helped the Indian automobile industry, which was slipping into negative

territory, to grow positively during the fiscal 2008-09. In the absence of stimulus packages, the sales

of passenger vehicles would have declined 3% or have shown no growth as per SIAM.

Sales of cars and commercial vehicles have been impacted due to global economic slowdown.

However, in spite of that there has been a marginal increase in the number of vehicles sold in 2008-

09 as compared to 2007-08. Total number of vehicles sold including passenger vehicles, commercial

vehicles, two-wheelers and three-wheelers in 2008-09 was 9.72 million as compared to 9.65 million

in 2007-08.

Export of passenger vehicles increased from 218,401 in 2007-08 to 335,739

units in 2008-09. Export industry registered growth of 14% due to growth in export of

passenger car around 70%.

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Moreover, growth continued during the first half of the current year. India exported a total of

230,000 cars, vans, SUVs and trucks between January and July 2009, a growth of 18 per cent.

Future Growth of Passenger Cars in India

According to the SIAM, up to 5% increase is anticipated in the sales of passenger vehicle in India

during fiscal 2009-10 on account of the government’s stimulus packages provided

to the sector.

According to an Ernst & Young analysis, passenger vehicle sales in the country will grow at a

CAGR of 12% to touch 3.75 million units by 2014 as against 1.89 million units at the end of 2008-

09 which will primarily driven by small car sales. While domestic market is expected to contribute

2.75 million units to the total tally, the remaining 1 million units would contribute towards exports.

With India’s growing importance as a small car manufacturing hub, exports are likely to grow at a

CAGR of 19-20 % till 2013-14. Launch of low cost cars like “Tata NANO” and higher per capita

income will drive the expansion in the addressable market. Further, operating margins of the

industry are expected to improve in 2009-10 driven by lower raw material cost.

German luxury car manufacturer Audi is eyeing higher sales this year than its earlier target of 1,500

units. This would make Audi India the third largest luxury car manufacturer in the country after

BMW India and Mercedes Benz India. Audi aims to register a 70 per cent growth vis-à-vis last year

by selling nearly 1,700-1,800 units in 2009.

Maruti Suzuki India expects to export 120,000 cars during 2009-10. Of this, a lakh will be the A-

Star, its newest hatchback.

Major Players in India for Passenger Cars

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Established in December 1983. Maruti Suzuki India Ltd. is the result of collaboration of Maruti with

Suzuki of Japan. The company has crossed the milestone of becoming the first Indian company in

March 1994, by manufacturing in totality one million vehicles. . Maruti Suzuki India Ltd. is the

India's largest automobile company which entered in the market with affirmed aim to render high

quality fuel – efficient and low - cost vehicles. Maruti Udyog was renamed to Maruti Suzuki India

Limited. Both in terms of volume of vehicles sold and revenue earned, the company is India's

leading automobile manufacturer s

and the market leader in the car segment.

Established in year 1996, Hyundai Motor India Ltd. is a sub division of the giant South Korean

multi national, the Hyundai Motor Company. It is Korea's top automobile manufacturer capturing

the Indian market and giving a strong competition to its rivals in the same segment. Equipped with

latest technology, machinery, international quality press, body and paint shops all across the world,

the company has set more than 70 dealer workshops. The company has incorporated state-of-the-art

manufacturing plant near Chennai that tells about some of the most developed production, quality

and testing potentials in the country.

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Over 3.5 million Tata vehicles is moving on Indian roads, since 1954. Its manufacturing plant is

located at Jamshedpur, Pune and Lucknow. Tata Motors Limited is India's largest automobile

company. Its name comes first in the category of commercial vehicles and the second largest in the

passenger vehicles, mid size car and utility vehicle segments. The company is the world's fifth

largest medium and heavy commercial vehicle manufacturer. In recent days Tata Motors is in

highlights due to launch of “Nano” and JLR tie up for marketing in India.

Fiat India Pvt. Ltd. is an Industrial Joint Venture, incorporated on January 02, 1997, between Fiat

Group Automobiles and Tata Motors Limited originally. This joint venture resulted in the formation

of Fiat Automobiles Pvt.Ltd.

Ford has entered the Indian market through a tie - up with Mahindra Motors to manufacture the Ford

Escort. Sold to over 18 million owners worldwide, the models available in India are specially

engineered for Indian conditions. Ford has sold over 260,000,000 vehicles around the world, and is

all geared to make India a global player in automobiles. Ford Ikon The Ford Motor Company has a

rich legacy of translating better motoring ideas to the roads. It has manufactured notable brands such

as the Ford, Lincoln, Mercury and the Jaguar. It is among the top five industrial corporations in the

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world and is available in more than 200 countries around the world. , Ford has set up its own new,

integrated manufacturing plant at Maraimalai Nagar near Chennai.

Incepted in 1908, General Motors has captured the forefront of technological innovations in the

automotive

Sector. In 1994, General Motors India was formed as a result of collaboration between General

Motors Corporation and C.K. Birla Group of Companies. Its manufacturing plant was located at

Halol, 40 km north of Vadodara in Gujarat. GM India has introduced the latest manufacturing

methods and human factor practices to its this plant and therefore is the benchmark for advanced

technologies in the Indian automotive industry. The company was formed with a total investment of

100 million dollars.

Chevrolet was brought to India on 6th June 2003. First office of Chevrolet was established at

Mumbai and its assembly plant was in Sewree. General Motors , the parent company of Chevrolet,

was the first in

setting up assembly plant in India.

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It is the first Indian Car Company to start production in India in 1942. Since then, it has emerged as

a vast company manufacturing cars like the sturdy Ambassador, the elegant Contessa, and in

collaboration with Mitsubishi of Japan now manufactures the new Mitsubishi Lancer. The company

started production of Landmaster in 1954 and began producing Ambassador in 1957. Hindustan

Motors manufactures Utility Vehicles, Passenger Cars, . Its various manufacturing units are spread

across India - Pithampur in Madhya Pradesh, Uttarpara in West Bengal, Thiruvallur in Tamil Nadu

and Hosur in Pondicherry.

Honda Siel Cars India Ltd., (HSCI) was set up in December 1995 as a joint venture between Honda

Motor Co. Ltd., Japan and Siel Limited to manufacture passenger cars in India. The company has

brought about five models in India - Honda City, Honda Accord, Honda CR-Van, Honda Civic and

Honda Jazz. Its first model was launched in 1997. Very recently Honda Siel Cars has launched one

more market friendly model, Honda Jazz in India. Honda Siel Cars India Ltd. is ISO 9002 & ISO

14001 certified.

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Established on 6th October, 1997, Toyota motors has pulled the vigilant of Indian customers to its

products. With the full devotion and round the clock services, Toyota tied up with Kirloskar Group

by forming Toyota Kirloskar Motor Private Limited. Two shareholders of Toyota Motors are

Toyota Motor Corporation holding share of 89% while Kirloskar group is having the share of 11% .

Headquartered in Japan, Toyota motors is a multinational corporation, the world's largest

automaker. Later in the year 1990, Toyota Motors began to branch out from producing mostly

compact cars by adding several larger and luxurious vehicles to its lineup. In India, Toyota has a

manufacturing plant in

Bedadi near Bangalore.

Established in year 1945, Mahindra & Mahindra Ltd. is a subsidiary of Mahindra group.Today, it is

the 10th largest private sector company in India, which is into manufacturing of tractors and light

commercial vehicles.

Rapidly expanding itself, now the company has seven state-of-the-art factories and 33 sales offices

supported by a network of more than 500 dealers throughout the country. The company area

exceeds over 5,00,000 square meters. Two product development centers of the company are situated

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at Kandivili and Nasik. On an average market capitalization up till June 2008 is around Rs.

13822.16 crores.

With the aim to serve the customers in India with the latest products and technological excellence

from the Mercedes-Benz, Daimler Chrysler entered the Indian market and set up Mercedes-Benz

India Ltd. way back in 1994. It has a long-term commitment to the Indian market and has full

support of its parent company for its future plans in India.

Skoda Auto is a part of the International Volkswagen Group. It is one of the premier automobile

manufacturer in Europe. The company introduced itself on November 16th, 2001 with its Greenfield

plant in Aurangabad. The company has already introduced 12 luxury models in Indian market.

PASSENGER CAR SEGMENT IN INDIAN MARKET

SMALL CARS Maruti Suzuki M8oo, Alto, Omni

Tata Motors Nano
Reva Electricals Reva
Below Rs. 3 lakhs
MID SIZE CARS Hindustan Motors Grand, Ambassador
Genaral Motors Aveo, Aveo Uva, Spark, Opel

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 Fiat Motors Palio, Linea ,Punto, Petra
Between Rs.3 to 7 Ford India Ikon, Fiesta
Honda India Jazz
lakhs
Hyundai Motor India Ltd Santro, I-10, I-20, Getz, Accent, Verna, Elentra.
Maruti Suzuki India Ltd Ritz, Wagon R, Versa, Zen, Esteem, Baleno, Swift,
Dzire, A-Star
Mahindra & Mahindra Renault Logan
Tata Motors Indica and Indigo
Audi A4, A6, A8, TT
General Motors Cruze, Optra
Ford India Mondeo
PREMIUM CARS
Honda India City, Civic, Accord
Hyundai Motor India Ltd Sonata
Between Rs.7 to Hindustan Motors Lancer Cedia
Maruti Suzuki India Ltd SX4
30 lakhs
Skoda Auto Laura, Octavia, Fabia, Superb,
Toyota Kirloskar Motor Corolla, Camry, Fortuner
Valkswagen Jetta, Passat
LUXURY CARS BMW all models, Mercedes Benz, Porsche, Bentley, Rolls Rorce

Above Rs.30 lakhs

Market Share in Indian Passenger car for 2008-09

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Indian automobiles industry is majorly dominated by Two Wheeler Segment as India is the highest

two wheeler manufacturer in the world. Wherein passenger vehicle’s share is almost 16%. Which is

growing by 8 to 9%. In passenger car industry in India, Maruti is leader undoubtedly. Maruti is

leading for more than half the market for the past 20 years since 1986-87 due to their widely

spreaded network and variety of brands in Mid Size segment. In the year 2008-09 Maruti’s market

share was almost 55% including exports. Hyundai Motor is a second largest in sales of passenger

car in India with market share of 18.7% for the year 2008-09. Tata motors is leader in Commercial

Vehicle Segment but in Passenger car segment they are at third number with market share of 12.3%.

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 Profile of Maruti Suzuki

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet

the growing demand of a personal mode of transport caused by the lack of an efficient public

transport system. The Group's principal activity is to manufacture, purchase and sale of Motor

Vehicles and Spare parts. A license and a Joint Venture agreement was signed between

Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct

1982.

Suzuki Motor Corporation (SMC) increased its stake in Maruti to 54.2 percent in 2002. 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 13 basic models with more than

100 variants. The Group has operations in over 100 cities with more than 150 outlets and also

exports cars to other countries.

VISION

MUL operates with the vision of becoming

“The leader in the Indian Automobile Industry,

Creating Customer Delight and Shareholder’s
Wealth; A Pride of India.”
The core values of the company are:

 Customer Obsession
 Fast, Flexible and First Mover

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  Innovation and Creativity
 Networking and Partnership
 Openness and Learning

Milestones
o In 1987, first lot of 500 cars was exported to Hungery.

o Maruti alone sells more vehicles than 12 other competitors.

o Maruti was ranked as one of the top 20 employers to work for by BT survey.

o Maruti has always emphasized on the customer, as can be seen from the fact that it won the JD

Power customer satisfaction survey ten times in a row.

o Maruti’s brand recall resulted in the public issue being oversubscribed by 11.2 times in June 03

and July 2004 Maruti was listed in BSE and NSE

o Maruti has been identified by Suzuki Motor Company as the Research and Development hub for

Asia.

o Maruti plans to increase market penetration to 10 per 1000 from 6 per 1000 for Maruti cars.

o In 2008, M800 crosses 25 lakh bench mark

o In December 2008, Maruti celebrated Silver Jubilee.

o In 2008, Maruti was awarded Manufacrturer of the year.

o No.1 in Customer Satisfaction Index in J.D.Power 10 times consicutively since 2000.

Targeting
Maruti was introduced targeting the middle class. Maruti’s positioning was as a value for customer

product. Its target segments are well depicted in its Product Pyramid profit model. In product

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pyramid model the distinct customer segments were identified and targeted based on a variety of

factors. These factors among many include, style, color, price preference, features etc.

The base of the pyramid is occupied by low price, high volume products like 800 where margins are

slim. The apex of the pyramid is occupied by high priced, low volume products like Baleno.

Although profits were concentrated near the top, base played a crucial role as it acted as a barrier to

entry for the competitors and also insulated the profitable area near the top.

BRAND PORTFOLIO OF THE COMPANY

YEAR
CLASS BRAND NAME SLOGAN
INTRODUCED

Change your life

Maruti 800 1983

Let's go
Maruti Alto 2000

Shape your world

City Car Maruti Zen Estilo 2005

Suzuki Alto (A- Stop @ nothing

2008
star)

Upcoming
Suzuki Splash model in 2009

For the smarter

Maruti Wagon-R 1999
Super race
mini Car Maruti Suzuki
2005 You're the fuel
Swift

Maruti Suzuki SX4 2007 Men are back

Compact
Car
Maruti DziRE 2008 The heart car

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 Suzuki Grand Play it your way
2007
Sports Vitara
Utility
Vehicle King
Maruti Gypsy 1985

Maruti Omni 1984 Fits all

Microvan
The joy of
Maruti Versa 2003
travelling together

Wide Spread Network Across India.

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Sales Network : MUL has the largest network of dealers amongst car manufacturers in India. As on

30th September 2009 Maruti has appointed 681 Authorized dealer across India. Dealer network is

covering 454 cities throughout India. Sales network is linked with the MUL through the secure

extranet-based information network. The sales of spares, accessories and Automobile-related

services such as insurance and finance serve as additional sources of revenue for the dealers. The

availability of these related products and services at sales outlets also helps to attract customers to

the outlets and promotes sales of the cars.

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Service Network : As an authorized after sales service, there are 779 Dealer workshops, 1945

Maruti Authorized Service Stations (MASS), total service points are 2767 covering 1314 different

cities in India, In addition, 24-hour mobile service is also offered under thebrand “Maruti On-road

Service”. As a benchmark for dealers with respect to service quality and infrastructure facilities,

MUL has launched service stations under the brand “Maruti Service Masters, or MSMs. MUL also

has service stations on highways in India under the brand “Express Service Stations”. To promote

sales of spare parts

and the availability of high quality, reliable spare parts for its products, spares are sold under the

brand name “Maruti Genuine Parts”, or MGP. These are distributed through the dealer network and

through the authorized sellers of the spare parts. Many of the MASSs are at remote locations where

MUL do not have dealers. In order to increase the penetration, in terms of sales volumes, of its

products in these remote areas, some of the MASSs are integrate into the sales process in order to

increase sales of the cars and related products and services such as spares and accessories, insurance

and financing

True Value – Initiative to capture used car market

Another significant development is MUL's entry into the used car market in 2001, allowing

customers to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by

paying the difference. They are offered loyalty discounts in return.This helps them retain the

customer. With Maruti True Value customer has a trusted name to entrust in a highly unorganized

market and where cheating is rampant and the biggest concern in biggest driver of sale is trust.

Maruti knows its strength in Indian market and has filled this gap of providing trust in Indian used

car market. Maruti has created a system where dealers pick up used cars, recondition them, give

them a fresh warranty, and sell them again. All investments for True Value are made by dealers.

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Maruti has build up a strong network of 315 showrooms across the nation. The used car market has

a huge potential in India. The used car market in developed markets was 2-3 times as large as the

new car market.

CUSTOMER CENTRIC APPROACH

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Maruti’s customer centricity is very much exemplified by the ten times consecutive wins at J D

Power CSI Awards. Focus on customer satisfaction is what Maruti lives with. Maruti dealers and

employees are answerable to even a single customer complain. There are instances of cancellation

of dealerships based on customer feedback. Maruti has taken a number of initiatives to serve

customer well. They have even changed their showroom layout so that customer has to walk

minimum in the showroom and there are norms for service times and delivery of vehicles. The

Dealer Sales Executive, who is the first interaction medium with the Maruti customer when the

customer walks in Maruti showroom, is trained on greeting etiquettes. Maruti has proper customer

complain handling cell under the CRM department. The Maruti call center is another effort which

brings Maruti closer to its customer. Their Market Research department remains on its toes to study

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the changing consumer behaviour and market needs. Maruti is investing a lot of money and effort in

building customer loyalty programmes.

REPOSITIONING OF MARUTI PRODUCTS

Whenever a brand has grown old or its sales start dipping Maruti makes some facelifts in the

models. Other changes have been made from time to time based on market responses or consumer

feedbacks or the competitor moves. Here are the certain changes observed in different models of

Maruti.

Omni has been given a major facelift in terms of interiors and exteriors two months back. A new

variant called Omni Cargo, which has been positioned as a vehicle for transporting cargo and meant

for small traders. It has received a very good response from market. A variant with LPG is receiving

a very good response from customers who look for low cost of running.

Versa prices have been slashed and right now the lowest variant starts at 3.3 lacs. They decreased

the engine power from 1600cc to 1300cc and modified it again considering consumers perception.

This was a result of intensive survey done all across the nation regarding the consumer perception of

Versa.

Esteem has gone through three facelifts. A new look last year has helped boost up the waning sales

of Esteem.

Baleno was launched in 1999 at 7.2 lacs. In 2002 they slashed prices to 6.4 lacs. In 2003 they

launched a lower variant as Baleno LXi at 5.46 lacs. This was to reduce the price and attract

customers.

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Wagon-R was perceived as dull boxy car when it was launched. This made it a big failure on

launch. Then further modifications in engine to increase performance and a facelift in the form of

sporty looking grills on the roof. Now it’s of the most successful models in Maruti stable.

Zen has been modified four times till date. They had come up with a limited period variant called

Zen Classic. That was limited period offer to boost short term sales.

Maruti 800 has so far been facelifted two times. Once it came with MPFi technology and other time

it came up with changes in front grill, head light, rear lights and with round curves all around.

PLAYING ON COST LEADERSHIP

Maruti is the price dictator in Indian automobile industry. It’s the low cost provider of car. The

lowest car on road is from Maruti stable i.e. Maruti 800. Maruti achieves this through continuous

improvements in operational efficiency and productivity.

The company has set itself (and its vendors) the target of a 50% improvement in productivity and a

30% reduction in costs in three years. The ability to keep lowering the prices sets Maruti apart from

other players in the league. Maruti spread the overheads over a larger base.

The impressive sales and profits were the result of major efforts within the company. Maruti also

increased focus on vendor management. Maruti consolidated its vendor base. This has provided its

vendors with higher volumes and higher efficiencies. Maruti does that by working with vendors,

assuring them that for every drop in price, volumes will go up. Maruti is now encouraging its

vendors to develop R&D capability for specialized components. Based upon such activities, product

competitiveness in the market will further increase.

Maruti also made strides in applying IT to manufacturing. A new Vehicle Tracking System

improved efficiency on the shop floor and enhanced quality control.

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 QUALITY FOR SURE

At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into the

product". Technicians themselves inspect the quality of work. Supervisors educate and instruct

technicians to continually improve productivity and quality. The movement of quality

indicators is reviewed in weekly meetings by the top management. In 2001, Maruti Suzuki

India Ltd became one of the first automobile companies anywhere in the world to get an ISO

9001:2000 certification.

METHODOLOGY

Primary Data : All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of
primary data was direct personal interview through a structured questionnaire.

Secondary Data : It was collected from internal sources. The secondary data was

collected on the basis of organizational file, official records, news papers, magazines,

management books, preserved information in the company’s database and website of the

company.

SAMPLE DESIGN
Period of Research : One Month

Scope of work : Collection of Primary data by filling questionnaire

Research Design : Open ended and close ended questions with ranking and
rating

33
 scale.

Data Collection : Personal interview with respondents to fill up questionnaire.

Survey Area : Western area of Mumbai.

Sample Size : 50 Respondents owning Maruti Car.

LIMITATIONS
The area of research was only Western Mumbai, so it may not cover the perception of entire
Maruti car owner category.

50 respondents opinion may not be applicable to entire category.

The research was done in limited time period, respondents opinion may change time to
time.

This research is done only for Academic purpose, it may give difrent result if it
is conducted by Professional Researcher.

Age Group :

34
 According to conducted survey,
36% of respondent comes in the
age category of Below 35 years
which is followed by Age group
of 35 to 45 years with 32%

Income Group :

According to conducted survey,

32% of respondent comes in the
Income Group of 3.5 to 5 lakhs
which is followed by income
Above 7.5 Lakhs with 30%

Demographic distribution with Age and Income

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According to conducted survey, combine demographic factor of Age and Income, 14% of

respondent are in the age group of Below 35 years and their income group is 3.5 to 5 lakhs. The

lowest category of respondents are Income below 3.5 lakhs except Age group Below 35 years and

respondent Belongs to Income between 5 to 7.5 lakhs with the Age group Above 55 years with 2%.

Which Maruti car do you own?

36
 Zen 0 Swift 08 Wagon 0 M 05 Alto 05
3 R 7 800
Estee 0 DZir 06 SX4 0 A- 03 Other 04
m 5 e 4 Star s

From the conducted survey, 16% of respondent owns Maruti Swift which is highest in the category

which is followed by Wagon R with 10%. The lowest category is Omni, Ritz, Versa, as they come

in Others with 8%.

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What comes in your mind when you think of Maruti?

Best 0 Low 0 Common 0 Comfort 0 First 0

Quality 6 Maint. 8 Car 5 5 Car 6
Best 1 Affordabili 1 Trust 0 Ind. 0 Others 0
Service 0 ty 3 9 Company 3 6

When ask respondent regarding first recall on Maruti, 26% of respondent talk about affordability,

Economical, Cheaper price compare to competitors. Wherein 4% of respondent replied for comfort

as their first recall regarding Maruti.

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Are you satisfied with performance of your car?

Excellent Good Average Below Avg. Bad Total

21 18 09 01 01 50

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From the research regarding satisfaction regarding performance of car, 42% of respondent rated as

Excellent which is in favour of Maruti and only 2% of respondent rated as Below Average and Bad

performance of their car so they are Dissatisfied.

Rate the features offered in your car on the basis of importance. (Scale 1 to 5, 1 is low & 5 is high)

From the conducted survey regarding respondents ranking for different features wherein 5 was for

highest and 1 was for lowest, 38% of respondent rated 5 to Fuel Average of Maruti car and

40
respondents rated 1 as lowest rank to Safety as a feature offered by Maruti with 16%. The

respondent ranking between 2 to 4 are taken into consideration to find out preference about features

offered by Maruti.

Rate Maruti Udyog Limited (MUL) on a Scale 1 to 5 ( 1 is least and 5 is Maximum)

Rank 01 02 03 04 05 Total

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 Respondent 01 02 16 19 12 50

From the conducted research to Rate the MUL wherein 5 is allotted to maximum and 1 was lowest.

Out of all respondent only 24% rated MUL with highest rank wherein major respondent rated MUL

as 4 with 38%. Least rank is given by respondent is just 2%. MUL must focus on respondent

category of 38% which is higher and try to convert them in Rank 5.

If you have buying capacity, would you buy any other brand?

If “YES” which brand would you buy and why?

YES NO TOTAL
21 29 50

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From the conducting survey when asked respondent about assumption of buying other car, the major

opinion was given to “YES” by 58% and only 42% said “NO”. The group which said no are strong

Maruti Brand Loyal but major chunk is 58% as they might switch to other brands. MUL should

take some measures to stop customers from switching over Maruti Brand and try to fulfill their

requirements.

How would you rate Maruti on the following parameter ?

After conducting survey, 30% of respondents Strongly agree that prices are affordable and only 2%

of respondents strongly disagree to the same. Maximum respondents replied as Agree with 44%.

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After conducting survey only 10% of respondents strongly agree to Company’s response to

complaint is quickly wherein 6% of respondents are strongly disagree to the same. Wherein

maximum respondents replied to the same with 40% as Agree.

After conducting survey only 18% of respondents strongly agree to Service at MAruti station is

excellent Wherein just 2% of respondents are strongly disagree to the same. Wherein maximum

respondents replied to the same with 38% as Agree.

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After conducting survey only 8% of respondents strongly agree to all the commitments are fulfilled.

wherein 14% of respondents are strongly disagree to the same. Wherein maximum respondents

replied to the same with 34% as Neutral.

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After conducting survey 30% of respondents strongly agree to Value for Money of their Maruti

Car. And surprisingly no respondent is strongly disagree to the same. Wherein maximum

respondents replied their opinion with 50% to Agree as value for money of their car purchase.

After conducting survey 48% of respondents which is the highest are Strongly Agree that Maruti

cars gives good Resale Value. Wherein only 4% of respondents Strongly Disagree to the same.

Overall analysis of all the parameters.

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According to conducted survey, respondents strongly Agree that Maruti car gives good resale value

with 48% and only 8% of respondents strongly agree to all the commitments are fulfilled which is

lowest in the category of Strongly Agree.

Wherein respondents strongly Disagree to Value for Money for Maruti car is NIL. And majority of

respondents Strongly Disagree with 14% to all the commitments are fulfilled. This is the area of

concern for Maruti Company.

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How would you rate after sales service of MUL

Excellent 12
Good 24
Average 10
Below Average 03
Bad 01
TOTAL 50

After conducting survey, 24% of respondent rated After Sales Service of MUL as Excellent,

wherein just 2% of respondent replied as Bad. Among this major category is Respondent replied as

Good with 48%.

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Your opinion about total package including customer service, product features, benefits and
cost

offered by company?

Very Bad Bad Neutral Good Very Good Total

01 02 13 23 11 50

From the survey conducted regarding overall package offered by Maruti, the outcome is totally in

the favour of MUL. Total 68% of respondents are satisfied with the overall package offered by

company. Out of which 22% respondents confirmed the same by rating very good. Remaining 46%

49
of respondents considered overall package as good. Wherein at the other end only 2% of respondent

rated as Very Bad as it can be exceptional case and just 4% rated Bad, which is minimum.

Will you Repurchase or Recommend Maruti car again?

Definitely Will Probably Will Might Not Definitely Not Total

26 11 07 06 50

According to conducted survey we can conclude that 52% of respondents will Definitely

recommend or Repurchase Maruti car again which is in the favour of MUL. Wherein 22% of

respondents will probably recommend or repurchase Maruti car again. Only 12% of respondents

will definitely not recommend or repurchase Maruti car again.

50
SUGGESTIONS / RECOMMENDATIONS
 Maruti company should do research on a regular basis to
know the satisfaction of customer.

 Company should be able to attend and solve customer’s

problem at earliest level. It has to be always on priority.

 Maruti should come out with new product in MUV/SUV

segment as there is no product offered by company
comparing to competitors. Even in Premium car segment
Maruti has no Brand except SX4. Majority of customers
may switch to other company just because of Non
availability of Maruti product in that segment.

 R & D department should more focus on Eco friendly car.

 The new models must be designed keeping in mind

Safety features and Luggage space to satisfy customer’s
expectation.

 Maruti company must capitalize on their product feature

like Fuel Average.

 Company must encash upon belief of customers that

Maruti vehicles gives good resale value and it is also
Value for money.

 Company should always cross check with dealer as

commitments given to customers are fulfilled or not.

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  Company must promote customer referral Program
wherein Maruti customers will be rewarded on giving
references for future sale .

CONCLUSION
Few important outcome from conducted research are mentioned below. Many
of them are in favour of Maruti Company and few of them are area of concern
and company need to overcome the same.

 Customer satisfaction is Excellent for Maruti car User.

 When customer was asked to Recall about Maruti, 26%

of respondent instantly replied for affordability and Price.

 Performance of Maruti car is Excellent as replied by 42%

of respondents.

 On the features offered by Maruti, Fuel Average is the

strong point of company wherein Safety is a point of
concern.

 Maruti has got Brand loyalty of 42% of respondent as

they will not buy any other brand other than Maruti
Brand.

52
  Maruti gives good Resale value as replied by 48% of
respondents, on the other 14% of respondents are
dissatisfied with the commitments given by company,
which is area of concern regards to customer
satisfaction.

 68% of respondents are satisfied with overall package

offered by company including service, features, cost and
benefit offered by company.

 Maruti has got strong customer database of satisfied and

happy customers who will indirectly promote Maruti
brand. 52% of respondents replied as they will definitely
Repurchase or recommend Maruti car.

BIBLIOGRAPHY
www.marutisuzuki.com
www.siam.com
www.business-standard.com
www.automartindia.com
www.thehindubusinessline.com
www.jdpowerindia.com

53
www.surfindia.com
Economic Times (for various news and articles)
Autocar Magazines

Annexture (Questionnaire )
Dear Respondent,

This questionnaire is aimed at understanding perception about Maruti car. Your

response will be dealt with highly confidentiality and it will be used only for
academic purpose only. Thank you for spending your valuable time to fill this
questionnaire.

1) Name :

2) Age Group

Below 35 35-45 45-55

Above 55

54
 3) Annual Income

Below 3.5lacs 3.5 - 5 lacs 5 - 7.5 lacs

Above 7.5 lacs

4) Which Maruti car do you own?

Zen Swift Wagon R M 800

Alto Esteem

SX4 D’zire A-Star Ritz

Other

5) What comes in your mind first when you think of Maruti ?

Answer :

6) Are you satisfied with performance of your car ?

Excellent Good Average

Below Average Bad

7) Rate the features offered in your car on the basis of importance. (Scale
1 to 5, 1 is low & 5 is high)

Safety Appearance Fuel Average

Seating

Interior Luggage space A/C cooling Power

8) Rate Maruti Udyog Limited (MUL) on a Scale 1 to 5 ( 1 is least and 5 is

Maximum)

1 2 3 4 5

9) If you have buying capacity, would you buy any other brand?

YES NO

If “YES” which brand would you buy and why?

10) How would you rate Maruti on the following parameter

Strong Disagr Neutral Agree Strongl

ly ee y agree

55
 Disagr
ee

Prices are affordable

Responds to complaints quickly

Service at Maruti service station is

excellent

All the commitments are fulfilled

Value for money

Gives good Resale Value

11) How would you rate the after sales services of Maruti Udyog Limited

Excellent Good
Average

Below Average Bad

12) Your opinion about total package including customer service, product
features, benefits and cost

offered by company?

Very Bad Bad Neutral Good Very

Good

1 2 3 4 5

13) Will you repurchase or recommend Maruti car again?

Definitely will Probably will

Might Not Definitely Not

Date : Sign :

Thank you very much for your prestigious opinion.

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