Maruti Final
Maruti Final
On
Marketing Mix of Maruti Suzuki.
FARIDABAD (HARYANA)
PREFACE
With Immense pleasure and deep sense of sincerity, I have completed my Industrial
training. It is an essential requirement for each and every student to have some practical
exposure towards real world situations. A systematized practical experience to inculcate
self confidence in a student so that they can mentally prepare themselves for this
competitive environment.
I would like to express my profound gratitude to Mr. Manoj Jaiswal , (HR MANAGER) and
Mr. Harsh under whose guidance I was able to complete my summer training project and
was able to learn the various aspects of Customer Satisfaction apart from my project
“Customer Satisfaction from Hospital Services: Study of Fortis Hospital”.
Their guidance and inspiration helps me lot during prepare my project. Their cordial
cooperation also impresses me to furnish my project in good manner. I express my gratitude
to all authorities at Maruti Suzuki India Limited, whose directions and valuable information
greatly helped me in preparing my project.
Thanks are all due to our faculty Ms. DR.Khushboo and other members for their motivation
and teaching, which have enabled me to cross this milestone.
I acknowledge the great assistance and support of entire team of professionals who allowed
me to pursue this project, despite an already crowded and over loaded work schedule.
I would like to specially thank my family members without their support it was impossible to
go for the project.
Introduction
History
Company’s Profile
Vision, Mission and Core values of Maruti Suzuki
Meaning of Research
Objectives of Research
Significance of Research
Research Methodology
Data Collection Source
LIMITATIONS
Meaning of Marketing
Brand
Products
Price
Place
Promotion
Market Segmentation , Targeting and Positioning
Market Share
Other strategies adopted by Maruti
Customer satisfaction
Chapter:
ABOUT THE COMPANY
Introduction
Maruti Suzuki is India’s number one leading automobile manufacturer and the market
leader in the car segment both in terms of volume of vehicle and revenue earned. Until
recently 18.28% of the company was owned by the Indian government and 54.2% by the
Suzuki of Japan. The Indian Govt. held an initial public offering of 25% of the company in
June 2003. As of 10 May 2007 government of India sold its complete share to Indian
financial Institution. With this govt. Of India has no longer stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production was started in 1983 with the Maruti 800 based on the Suzuki Alto Kei Car which
at that time was the only modern car available in India. Its only competitor was Hindustan
Motor’s Ambassador and the Premier Padmini were both around 25 years out of date at
that point.Through 2004 , Maruti Suzuki had produced over 5 Million vehicles. Maruti
Suzuki are sold in India and various several other countries depending upon export orders.
Models similar to Maruti Suzuki ( but not manufactured by Maruti udyog) are sold by Suzuki
Motors corporation and manufactured in Pakistan and other south Asian countries.
The company anually exports more than 50,000 cars and has an extremely large domestic
market in India selling over 7,30,000 cars anually. Maruti 800 till 2004 was the India’s
largest selling compact car ever since it was launched in 1983. More than a Million unit of
this car have been sold worldwide so far. Currently Maruti Suzuki Alto tops the sales chart
and Maruti Suzuki Swift is the largest selling car in A2 segment.Due to large number of
Maruti 800’s sold in the Indian market the term “Maruti” is commonly used to refer to this
compact car model. Till recently the term “ Maruti” in popular Indian culture in India,
Hindu’s lord Hanuman is known as “Maruti” was associated with Maruti 800 model.
Manufacturing Facilities
Its manufacturing facilities are located at two facilities, “Gurgoan” and “Manesar” south of
Delhi. Maruti Suzuki’s Gurgoan facility has an installed capacity of 3,50,000 units per annum.
The Manesar facility launched in February 2007 comprises a vehicle assembly plant with a
capacity of 1,00,000 units per year and a Diesel Engine plant with an annual capacity of
1,00,000 engines and transimission. Manesar and Gurgoan facility have a combined capacity
to produce over 7,00,000 units annually.More than a half of the cars sold in India are Maruti
Suzuki cars. The company is a subsidiary of Suzuki Motors Corporation of Japan which owns
54.2 percent of Maruti Suzuki. The rest is owned by the Public and Finance Institution.It was
listed on the Bombay ( now Mumbai) stock exchange in India.
During 2007-08 Maruti Suzuki sold 7,64,842 cars of which 53,024 are exported in all. Over
Six Million Maruti Suzuki cars on Indian roads since the first car was rolled out on 14
December 1983.
Products Offered
Maruti Suzuki offers 15 models and they are, Maruti 800, Alto, Wagon R, Zen Estilo, A
Star, Ritz, Swift, Swift Dzire, SX4, Omni, Eeco, Gypsy and Grand Vitara.Out of these
models Grand Vitara is imported from Japan a completely built unit (CBU). Swift, Swift
Dzire , A Star and SX4 are manufactured in Manesar and the remaining models such as
Maruti 800, Alto, Wagon R, Zen Estilo, Ritz, Omni , Eecoetc are manufactured at Gurgoan
Plant.
Human Resources
Nearly 75,000 people are employed directly by the Maruti Suzuki and its Partner. It has been
rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J.D.
Power Asia Pacific.
History
Around 1970, Sanjay Gandhi, Political advisor and younger son to then Prime minister of
India, Indira Gandhi , envisioned the manufacture of an indigenous , cost – effective , low
maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed a
uninamous resolution for the devlopment and production of “people’s car”. Sanjay Gandhi’s
company was christened Maruti Limited. The name of the car was choosen as “Maruti”,
after the name of a hindu deity named Marut.
At that time Hindustan Motor’s Ambassador was the cheif car and the company had came
out with a new enterant , the Premium Padmini which was slowly gaining a part of the
market share dominated by the Ambassador. For the next ten years the Indian car market
had stagnated at a volume of of 30,000 to 40,000 cars for the decade ending 1983.
Sanjay Gandhi was awarded the exclusive contract and licence to design, devlop and
manufacture the “People’s car.This exclusive right of production generated some criticism in
certain quaters, which was directly targeted at Indira Gandhi . Over the next few years the
company was sidelined due to the Bangladesh Liberation war and the emergency.
In the early days under the powerful patronage of Sanjay Gandhi, the company was
provided with free land , tax breaks , and funds. Till the end of 1970’s the company had not
started the production and a prototype test model was met with criticism and
skepticism.The company went into liquidation in 1977. The media perceived it to be another
area of growing corruption. Unfortunately Maruti started to fly only after the death of
Sanjay Gandhi, when Suzuki joined the Govt. Of India as a joint venture parteners with 50%
share.
After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be
allowed to die. Maruti entered into collaboration with Suzuki Motors . The collaboration
heralded a resolution in the Indian car industry by the production of “Maruti 800”.
The car went into sale on December 14,1983. It created record by taking 13 months to go
from design to rolling out car from a production line. By the year 1994 the company had
sold upto 1,96,820 cars, mostly by selling its cheif product the “Maruti 800”. By March 1994,
it produced one million vehicle , becoming the first Indian company to cross this milestone.
It reaches the 2 million mark in October 1997, and rolled out its 4 th million vehicle an ALTO
(LX) on April 19, 2003.
Maruti Udyog Ltd. is the premium car company in India. Maruti Udyog Limited (MUL) was
established in February 1981 through an act of parliament. The Company entered into
collaboration with Suzuki Motors of Japan to manufacture cars.The main objectives behind
formation of Maruti Udyog Limited was to meet the growing demand of a personal mode of
transport caused by the lack of an efficient Public Transport System.
Today Maruti Udyog Limited is garneshing share of automobile market in India. It has
completely revolutionised the Indian car market and has brought out numerous model to
cater to every section of society. These ranges from Economy cars to Luxury cars to Super
SUV’s.
Company’s Profile
Around 1970, Sanjay Gandhi, political advisor and younger son to the then Prime minister of
India, Indira Gandhi, envisioned the manufacture of an indigenous, cost effective, low
maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed an
uninamous resolution for the development and production of “Peoples car”. Sanjay
Gandhi’s company was christened Maruti Limited. The name of the car was was chosen as
Maruti, after a hindu deity named Marut.
Unfortunately Sanjay Gandhi died without fulfilling his dream. After this death , Indira
Gandhi decided that the project should not be allowed to die. Maruti entered into
collaboration with the Suzuki Motors of Japan. The collaboration heralded a resolution in
the Indian car industry by producing Maruti 800. The car went into sale on 14 December
1983. And from 1980’s to till day today Maruti’s have dominated the Indian Automobile
industry as well as automobile market.
Vision:-
Vision of any company is those values on which company works. As the Maruti Udyog
Limited (MUL) is started by governmental initiatives it tends to be more consumer oriented
and hence cost- effective, but on the other hand Suzuki’s participation ensures not only
need of profit, but the need of maximum profit. The only way of Nora’s dilemma of selecting
principles for the company’s working vision was to maximize profit and sales and hence
Maruti Udyog Limited (MUL) declared its vision as:-
“The leader in the Indian Automobile Industry, creating Customer Delight one and
shareholder’s wealth two eventually become pride of India. Customer Delight One is making
sure that Performance, after sales service and customer are best and beyond expectations,
shareholder’s wealth two is the prime concern for running business smoothly. Maruti Udyog
Limited (MUL) knows this and understands “Customer Is King” , he can change the future of
any company hence goes company’s brand line : COUNT ON US!
Mission:-
Mission is the statement of any organisation’s purpose , what is want to accomplish in the
larger environment and its goal which are specific , realistic, and motivating. Missions are
described over Visions and Visions demand certain objectives. The main Objectives /
Mission of Maruti Udyog Limited are:-
Modernisation of Indian Automobile Industry.
Developing cars faster and selling for less.
Production of fuel- efficient vehicles to conserve scarce resources.
Production of large number of motor vehicles which are necessary for the Economic
Growth.
Market penetration, Market developments, similar product development and
diversification.
Parter relation management, value chain, value delivery networks.
Core Values :-
Customer Obsession
Fast, Flexible and First Mover
Innovation and Creativity
Networking and Partnership
Openness and Learning
Chapter :
Research Methodology
Meaning of Research
Redman and Mory define research as a “systemized effort to gain new knowledge.” Some
people consider research as a movement, a movement from the known to the unknown.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody, research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.
Objectives of Research
1. To study about Maruti Suzuki i.e. when it was established , why it was established
and by whom it was established, financial structure, Organisational structure etc.
2. To study about the marketing mix and the strategies adopted by Maruti Suzuki in
order to cater the needs of the people and also to face tough competition in the
market since after the Globalisation of the Indian economy many competitors have
grown and tries to undermine the monopoly created by Maruti Suzuki.
3. To study the strategies adopted by Maruti Suzuki due to which they are able to
dominate the Indian Automobile Sector since last three decades.
Significance of Research
“All process is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry and inquiry leads to invention.” Is a famous Hudson Maxim in context of which the
significance of research can well be understood. Increased amounts of research make
progress possible.
Research inculcates scientific and inductive thinking and it promotes the development of
logical habits of thinking and organization.
The role of research in several fields of applied economics, whether related to business or to
the economy as a whole, has greatly increased in modern times. The increasing complex
nature of business and government has focused attention on the use of research in solving
operational problems. Research, as an aid to economic policy, has gained added
importance, both for government and business
Research Methodology
Information for this project was collected primarly through secondary sources.The data
collected from the secondary sources are called as Secondary data.
Secondary Data:Any data, which have been gathered earlier for some other purpose, are
secondary data in the hands of researcher. Those data collected first hand, either by the
researcher or by someone else, especially for the purpose of the study is known as primary
data.
The data collected for this project has been taken from the secondary source.
Internet
Magazines
Publications
Newspapers
Brouchers
LIMITATIONS
The biggest limitation of this project was time , due to lack of time the necessary
data were collected from the secondary sources..
Due to tough competition in the market the companies are not willing to disclose
their strategies adopted to face the competition so sufficient information were not
collected and the information collected are not 100% accurate.
Chapter:
Marketing Strategies
Marketing
It is the process of directing of directing the flow of goods and services from the producers
or the manufacturers to the customers or consumers. It is accountable for planning,
organising, directing, coordinating, motivating, and controlling the market activities.
According to Cundiff and Still, “Marketing is the business process by which the products are
matched with the market and through transfer of ownership are affected”. Matching the
products with the market means determining the needs and requirements of potential
customer and supplying them the product which meets their requirements.
According to Philip Kotler, “ Marketing is the social and managerial process by which
individuals and groups obtain what they need and want through creating, offering, and
exchanging product of value with others”.
In general we can say that Marketing includes all those activities carried on to transfer those
goods from the manufactures or the producers to the consumers that can satisfy the needs
and the requirements of the consumers.
BRAND
Around 1970, Sanjay Gandhi the political advisor and younger son to then Prime minister of
India, Indira Gandhi, envisioned the manufacture of an Indigenous, cost effective, low
maintenance and compact car for the Indian middle class. Indira Gandhi’s cabinet
unanimously passed a resolution for the development and production of “people’s car”.
Sanjay Gandhi’s company was christened Maruti Limited. The name was chosen as Maruti
after a Hindu deity named “Maruti”.
Unfortunately Sanjay Gandhi died without completing his project. After the death of Sanjay
Gandhi, Indira Gandhi decided that the project should not be allowed to die. Maruti entered
into collaboration with the Suzuki motors of Japan. The collaboration heralded a resolution
in the Indian car industry by producing Maruti 800. The car went on sale on December 14,
1983.
PRODUCT
Product mix involves planning, developing, and producing the right types of products and
services to be marketed by the firm. It deals with the product range, durability and other
qualities. Apart from producing right products, emphasis should also be laid on their
branding, packaging, colour and other features. In short product planning and development
involves decision about : i) quality of the product, ii) size of the product, iii) design of the
product, iv) volume of the production, v) packaging, vi) warranties and after sale service, vii)
product testing, viii) product range, etc.
Products Offered by Maruti Suzuki
Maruti Suzuki comes with a large number of products i.e cars ranging from economy cars to
luxury cars to super SUV’s. The economy cars includes :-
A) Maruti 800
B) Alto
C) Zen Estilo
D) Wagon R
E) A - Star
F) Ritz
G) Swift
H) Swift Dzire
A) Maruti Esteem
B) Maruti SX4
Maruti 800
Maruti 800 is the most popular entry segment car in India. With the introduction of Maruti
800 in 1980’s Maruti Udyog Limited broke the hegemony of Ambassador and Fiat in the
Indian Car market.
Technical Specifications:-
Dimensions
Length 3335 mm
Width 1440 mm
Height 1405 mm
Unladen Weight 655 Kgs (AC Euro I) , 640 Kgs (AC Euro I) , 665 Kgs
( AC Euro II), 650 Kgs (AC Euro II)
Power
Suspension
Steering
Brakes
Front Disc
Rear Drum
Tyres 5.65 – 12 – 4 PR
Capacities
Seating 4 Persons
Fuel Tank 30 Litres
Maruti Alto
Maruti Alto is one of the hottest selling compact cars in Indian market. Alto uses Maruti
800’s proven and highly fuel efficient , 3 pot motor with a four valve head and its electronic
tachometer results in unmatched fuel efficiency . It is the most fuel efficient car in A2
Segment.
TECHNICAL SPECIFICATIONS :-
Dimensions
Length 3495 mm
Width 1495 mm
Height 1460 mm
Tread 1290 mm
Weight
No. of cylinder 3
Suspension System
Front McPherson strut with Torsion type coil anti roll bar
Maruti Omni is popularly known as Maruti Van. Maruti Omni comes in three variants and
they are :- Omni 5- Seater , Omni 8- seater and Omni LPG. Maruti Omni is a perfect family
car. It has enough space for our life style needs whether we are going on a picnic, weekend
outing or for a game of golf. We can pick our entire luggage without thinking twice. Omni
provides ample headroom and legroom to ensure a comfortable and enjoyable journey.
TECHNICAL SPECIFICATIONS :-
Dimensions
Length 3370 mm
Width 1410 mm
Height 1640 mm
Wheelbase 1840 mm
Weight
Engine
No. of cylinders 3
Power Transmisson
Brakes
Front Booster assisted disc
Rear Drum
Maruti Eeco
EECO was introduced in India by Maruti Suzuki during 2010. This car is essentially an
updated Versa, this is an urgent refresh in lines with Maruti Suzuki not being able to come
up with a new minivan. EECO comes with 5 seater and 7 seater options. EECO is equipped
with advanced Engine Management System for optimizing fuel efficiency and performance.
It is branded by the manufacturer as a perfect car for every occasion-a business trip or a
picnic with the loved ones[1]. A new minivan from Maruti Suzuki is expected in 2011 to
replace the Eeco/Versa and (possibly) the ageing Omni.
5 seater, standard
5 seater, AC
7 seater, Standard
TECHNICAL SPECIFICATIONS :-
Fuel: Petrol
Displacement: 1196 cc
Suspension
Brakes
ZEN ESTILO
Maruti Zen is a clear leader in the premium compact car segment in India. It has several
technology that makes it stand out from other cars in its segment.
Maruti Zen comes equipped with 16 x 4 all aluminium hyper tech engines, with its power to
weight ratio of 78.4 bhp per tonnes , the highest in its class, the engine also offers optimum
fuel economy , excellent pick up and acceleration.
The 16- bit Micro processor in Zen delivers ideal combo of speed, power and fuel efficiency.
Its electronic power steering ensures effortless maneuverability, more control and a better
grip.
TECHNICAL SPECIFICATIONS :-
Capacities
Seating Persons 5
Fuel in litres 35
Engine in CC 993
Tyres 145 / 80 R 12
(Front &
rear)
LX LXi VXi
16 bit ECM
32 bit ECM
DIMENSIONS
Overall length 3535mm
Wheelbase 2335mm
WAGON R
Wagon R is a hugely successful car which comes in four variants- Maruti Wagon R LX,
Maruti Wagon R LXi, Maruti Wagon R VXi and Maruti Wagon R AX.Wagon R comes with
1064 cc MPFI low friction engine that delivers an awesome 64 bhp @6200 rpm for smoother
pick up and faster acceleration. Dual Distributor less Digital Ignition (DDLI) ensures an
instant hassle free start every time and a more efficient power distribution. Wagon R’s tall
body , high seats and wide opening doors make it easier to get in and out.
TECHNICAL SPECIFICATIONS :-
Dimension in MM
Length 3495
Width 1495
Height 1660
Wheelbase 2360
Weight in Kg
840 (AX)
1240(AX)
Engine
No. of cylinders 04
Power Steering
Suspension
Rear Coil spring, gas filled shock absorber with 3 link rigid axle
isolated trialing arms.
A-STAR
Indian car market leader Maruti Suzuki has launched A-Star in the hatchback car segment in
which the company holds ruling position with 55% market share. Maruti has unveiled A Star
as a next generation model of its model Alto which is already selling greatly in the segment.
Scroll down to know more about the sporty and striking features of all new A Star Car.
TECHNICAL SPECIFICATIONS :-
Dimension in mm
Length 3500
Width 1600
Height 1490
Wheelbase 2360
Weight In Kgs
Capacity
Engine
Type KB series
Displacement 998 cc
No. of cylinders 03
SWIFT
Maruti Swift brings a feeling of freshness to the compact car segment . It’s appealing looks ,
spacious interiors, and a whole a lot of user friendly features at once catch our attention. It
comes in three variants :-Maruti Suzuki Swift LXi, Swift VXi, Swift ZXi.
TECHNICAL SPECIFICATIONS :-
Body Type
No. of doors :- 5
Seating Capacity :- 5
Engine
Capacity :- 1298 cc
No. of cylinders :- 4
2nd 1.904
3rd 1.208
4th 0.966
5th 0.757
Reverse 3.0272
Power Steering
Suspension System
Rear :- coil spring, gas filled shock absorber with 3 link rigid axle
isolated trailing arms
MARUTI GYPSY
It is manufactured in India by Maruti Suzuki. It was introduced in the Indian market in 1985
with the 970 cc F10A Suzuki engine and was an instant hit in the civilian market as well as
with law enforcement. It was codenamed MG410 that stood for Maruti Gypsy 4 cylinder 1.0
litre engine. Initially, it was only available as a soft-top; but a bolt on hardtop was later
introduced to the public after the aftermarket hardtops became extremely popular.
In July 1993, Maruti introduced the "widetrack Gypsy" codenamed MG410W replacing the
MG410. Both front and rear track of the wheels are increased by 90mm (from 1,210 mm
(47.6 in) to 1,300 mm (51.2 in) for front wheels and from 1,220 mm (48.0 in) to 1,310 mm
(51.6 in) for rear wheels) and these Gypsys are instantly recognizable by the pronounced
painted fender flares.
TECHNICAL SPECIFICATIONS :-
Dimensions
Engine
Front Disc
Rear Drum
Tyres F78-15-4 PR 205/70R15
Capacities
Technical Specifications :-
Seating Capacity 05
Engine
Configuration DOHC
Transmission 5 Manual
Suspension
Brakes
Type Disc
Tyres
Performance
GRAND VITARA
Grand Vitara is meant for the people who want to live life grand size. With 127 KW @ 6000
rpm on call, the 2.7 litres DOHC V6 engine can empower the Grand Vitara to climb up steep
terrains; Zip effortlessly down the highway and with plenty of low end torque, the high
performance vehicle can take on snowy ramps and muddy tracks with equal ease. Its four
wheel drive gives Vitara the power to go places.
Technical Specifications :-
Dimension in MM
Length 4760
Width 1780
Height 1740
Wheelbase 2800
Weight in Kgs
Capacity
Seating 7 persons
Engine
Type H27A V6 type
No. Of cylinders 06
No. of valves 24
Bore X Stroke 88 X 75
Brakes
Front Disc
Rear Drum
Suspension
PLACE
The Place of Maruti cars is in the whole world. Maruti Udyog Limited decides its distribution
channel for selling cars like some time or level or sometimes two levels marketing channels.
They decide area in which they deal customers. They show the permanent location for
selling the cars. They provides many useful inventory they define the transport facility of the
company to the market and market to the customers. Many showrooms of MUL are there
in our India.
PROMOTION
Main Promotion of Maruti Suzuki cars is done by the advertising. The advertising is mainly
done in the form of different Television channels , different newspapers, holdings etc. Now a
days the main promotion is done by the brand Ambassador such as film stars, celebrities,
sportsmen etc. and in this case they decide their actual and equired sales force for selling
their cars. They also maintain customer relation and they do direct marketing .
SEGMENTATION
Meaning of segmentation :-
Market segmentation is the process of dividing a potential market into distinct sub- markets
of consumers with common needs and characterstics. Market segmentation is the starting
steps in applying the marketing strategies. Once the segmentation takes place , the marketers
targets the identified customer groups with proper marketing- mix so as to position the
products/ brands/ company as perceived by the target customer.
Objectives of Segmentation :-
The main objective of segmentation is to provide those products to the customer they can :-
Maruti Udyog Limited was set up to manufacture low price cars that can be afforded by the
Indians but after 1990 that means after the globalisation ( i.e opening of Indian economy for
rest of the world) many competitors started in enter the Indian market .
Further with the develoment of the Indian economy the income of the peoples of India also
increased and people started to afford luxury cars also. They have also catogorised their
cars into different segments depending upon the choices of different peoples depending
upon their income and other behaviours and these segments are :-
Market Positioning
Meaning :-
Market positioning means placing the potential product in the market that can satisfy the
needs and requirements of the target customers.
As on date there are 342 Maruti dealer workshops and 1,545 Maruti Authorised Service
Stations, or MASSs, covering 898 cities in India. In addition, 24-hour mobile service is offered
in 38 cities under the brand “Maruti On-road Service”. They intend to extend this service to
an additional 25 cities over the next three years. As a benchmark for dealers with respect to
service quality and infrastructure facilities, they have launched service stations under the
brand “Maruti Service Masters, or MSMs, in three locations in India. They have service
stations on 30 highways in India under the brand “Express Service Stations”.
To promote sales of their spare parts and the availability of high quality, reliable spare parts
for their products, they sell spares under the brand name “Maruti Genuine Parts”, or MGP.
These are distributed through their dealer network and through authorised sellers of their
spare parts, to whom they refer as stockists.
Many of their MASSs are at remote locations where they do not have dealers. In order to
increase the penetration, in terms of sales volumes, of their products in these remote areas,
they are exploring opportunities to integrate some of the MASSs into the sales process in
order to increase sales of their cars and related products and services such as spares and
accessories, insurance and financing.
Genuine Accessories
They have also entered the business of marketing car accessories under the brand name
“Maruti Genuine Accessories”, or MGA, through their dealership network. They seek to
provide customers with the opportunity to customize their vehicles with accessories such as
music systems, security systems, car-care products and utility products.
Warranty and Extended Warranty Program
They offer a two-year warranty on all their vehicles at the time of sale. Their dealers are
required to address any claim made by a customer, in accordance with practices and
procedures prescribed by them, under the provisions of the warranty in force at that time.
The dealers subsequently claim the warranty cost from them. They analyse warranty claims
from dealers and either claim the cost from vendors, in the case of defective components,
or bear the cost ourselves, in the case of manufacturing defects.
They offer an extended paid-warranty program marketed under the brand, “Forever Yours”
for the third and fourth year after purchase. They have entered into arrangements with
insurance companies to cover the costs of warranties offered under this program. The
extended warranty program is intended to maintain the dealer’s contact with the customer
and increase the revenue generated from sale of spares, accessories and automobile-related
services. An effort is made during the period of the extended warranty to encourage the
customer to exchange his existing Maruti car for a new Maruti car, or upgrade to a new
Maruti car.
Maruti Insurance :-
It was launched in 2002. Maruti Suzuki provides vehicles insurance to its customers with the
help of National Insurance Company , Bajaj Allianz , New India Assurance and Royal
Sundaram. The service was set up by the company with the inception of two subsidiaries
Maruti Insurance Distributors Pvt. Ltd. and Maruti Insurance Brokers Pvt. Ltd. The services
started as a benefit or value addition to the customers and was able to ramp up easily. By
December 2005 they were to sell more than two Million Insurance policies since its
inception.
Maruti Finance :-
To promote the bottom line growth Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti
and Maruti Country wide with City Group and GE countrywide respectively to assist its
clients in securing loans. Maruti Suzuki tied up with ABN Amro Bank , HDFC Bank , ICICI
Limited , Kotak Mahindra , Standard Chartered and Sundaram to start this venture including
its strategic partnership with SBI in March 2003. Since March 2003, Maruti had sold over
12,000 vehicles through SBI – Maruti Finance. SBI – Maruti Finance is currently available in
166 cities across India.
“ Maruti Finance marks with coming together of the biggest players in the car
finance business. They are the benchmark in quality and efficiency. Combined with
Maruti volumes and networked dealership , this will enable Maruti Finance to offer
superior services and competitive rates in the Market place”.
- JagdishKhatter,
Managing Director of Maruti Udyog Limited
Citycorp Maruti Finance Limited is a joint venture between Citicorp Finance India and
Maruti Udyog Limited. Its primary business started by the company is “hire – purchase”
financing of Maruti Suzuki Vehicles . Citi Finance India limited is a wholly owned subsidiary
of City Bank Overseas Investment Corporation Delaware which inturn is a 100% wholly
owned subsidiary of City Bank N.A. City Finance India Limited holds 74% of the stake and
Maruti Suzuki holds the remaining 26%. GE Capital , HDFC and Maruti Suzuki together came
in 1995 to form Maruti Countrywide. Maruti Claims that its finance program offers most
competitive interest rates to its customers which are lower by 0.25% to 0.5% from the
market rates.
Maruti True service offered by Maruti Suzuki to its customers. It is a market place for the
used Maruti Suzuki Vehicles. One can buy ,sell or exchange used Maruti Suzuki Vehicles
with the help of this service in India. As of 2009 there are 315 Maruti True Value Outlets.
MARKET SHARE
Maruti
Tata
Hyundai
Description
Maruti 59%
Tata 20%
Hyundai 21%
Tata
Ford
GM
Honda
Maruti
Hyundai
Others
Description
Tata 20%
Ford 14%
GM 6%
Honda 20%
Maruti 17%
Hyundai 16%
Others 7%
Hyundai
Maruti
Tata
Honda
Ford
GM
Toyota
Others
Description
Hyundai 17%
Maruti 55%
Tata 16%
Honda 4%
GM 3%
Toyota 10%
Others 3%
A4/A5/A6 (Exec./Prem./Luxury) NA NA NA NA NA NA
Maruti Competition
Segment
A3 (Mid Size) Esteem, SX4 Hyundai - Accent; Tata - Indigo & Petra;
Honda - City; GM - Corsa, Optra, &Aveo;
Ford - Ikon, Fusion, & Fiesta
Customer Service:-
The CRM Program allows Maruti Suzuki to acquire customers, service the customers,
increase the value of customers to the company, and retain good customers and to
determine which customer can be retained or given a higher level of service. A good CRM
program can improve customer service in several ways.
Identifies how each individual customer defines quality and then designs service
strategies for each customer based on these individual requirements and expectations.
Provides a fast mechanism for managing and scheduling follow up sales call to assess
post purchase cognitive dissonance, repurchase, probabilities repurchase times and
repurchase times.
Provides a mechanism to track all points of contact between customer and the
company and do it in an integrated way so that all sources and the types of contact are
included and all the user of the system see the same view of the customer (reduces
confusion).m
Provides a fast mechanism for handling problems and complaints (complaints that are
resolved quickly increased customer satisfaction).
Provides a fast mechanism for correcting services deficiencies (correcting the problem
before other customer experience the same dissatisfaction).
Uses internet cookies to track customer interest and personalize product offerings
accordingly. Use internet to engage in collaborative customization or real time
customization.
The CRM can be integrated into other cross functional systems and thereby provides
accounting and production information to customers when they want it.
CRM Technology can track customer interests, needs and buying habits as they
progress their life cycles and tailors the marketing efforts accordingly. This way
customers get exactly want they want as they change.
The technology can track customer products use as the product progresses through
its life cycle and tailors the service accordingly.
These way Customers get what they need as the product ages.
In Industrial markets, the technology can be used to micro- segment the buying
centre and helps co – ordinate the conflicting and changing purchase criteria of its
members.
Repeat purchase however comes from customer satisfaction which inturn comes
from deeper understandings of each customer, their individual business challenges
rather than a “one size fits all” approach.
CRM software enables sales people to achieve this one on one approach to selling
and can automate some elements of it via tailorable marketing communication.
However all of these elements are facilitated by or for humans to achieve. CRM is
therefore a companywide attitude as much as software solution.
Tata
Ford
Mahindra Renault
Chervolet
Toyota
Honda
Skoda
Mahindra
Hyundai
Mitsubishi
Maruti
660 680 700 720 740 760 780 800 820 840
After the study of the project , we have got several information and real facts about Maruti
Suzuki :-
It was the idea of Sanjay Gandhi, son of Indian Prime Minister Indira Gandhi to
provide cheap and low maintenance cars to Indiansand for this purpose Maruti
limited was established but after his death Maruti limited went into collaboration
with the Suzuki Motors of Japan.
Maruti Suzuki focuses on overall segment of market and the strategied adopted by
Marutis are very appealing and interacting for the customers.
Initially it focused on providing cheap cars to the customers but after Globalisation of
the Indian economy (1990s) many foreign companies started to enter the Indian
market then to stand in the market Maruti Suzuki also started to manufacture luxury
cars also.
Along with manufacturing of cars Maruti also started another operations like :-
Maruti finance, Maruti Insurance, Maruti genuine parts, After sale service, Maruti
True value, Maruti Driving school etc..
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with
a workforce of over 6000 trained sales personnel to guide our customers in finding the right
car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the
J.D. Power SSI Study 2004.
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters:
least problems experienced with vehicle serviced, highest service quality, best in-service
experience, best service delivery, best service advisor experience, most user-friendly service
and best service initiation experience.
92% of Maruti Suzuki owners feel that work gets done right the first time during service. The
J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably
recommend the same make of vehicle, while 90% owners would probably repurchase the
same make of vehicle.
At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is
easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to
provide a single-window solution for all your car related needs.
The acquisition cost is unfortunately not only the cost we face buying a car.
Although a car may be afforded to buy , it may not necessarily be afforded to
maintain as some of its regularly used spare partsmay be priced quite steeply. Not so
in the case of Maruti Suzuki. It is in the economy segment thatb the affordability of
spares is most competitive and it is here where Maruti Suzuki shines. The recent
auto car survey conducted in August 2004 bears testimony to this fact. In the Maruti
Suzuki Stable, the Omni has the lowest aggregate cost of the spares followed by the
Maruti 800. The Maruti 800 has the cheapest spares of any Indian car. In the lower
Mid Size segment as well price consciousness is very high , Where the cars have to be
not only affordable on purchase price but alsoneed to combine quality and have
comfortable interiors. In this segment the Maruti Suzuki Versa had scored
particularly well with the lowest cost of spares in the segment. In the upper Mid Size
Segment the Maruti Suzuki Baleno had the segment lowest price on a majority of
spares.
SWOT ANALYSIS
SWOT Analysis is the analysis of a company. SWOT analysis stands for Strengths ,
Weakness, Opportunities and threats. With the help of this analysis we can get the
information about a company’s strengths and weaknesses and also about the opportunities
and threats that a company is going to face or facing. After getting the knowledge about
the weakpoints and threats from the external environment the management tries to
overcome the weaknesses and the threats.
1. Brand Image
2. Reliable and cheap
3. Established brand in the Indian marke.
4. Great service and nationwide penetration
5. Experience in the Indian market
6. Very old player in the Indian market
7. First major player
8. Established distribution and after sales network
WEAKNESSES :-
1. Diseconomies of scale
2. No Online presence
3. Not diversified
OPPORTUNITIES :-
1. Acquisition
2. Innovation
3. Online
4. Product and service expansion
5. Takeovers
THREATS :-
1. Competition
2. Cheaper technology
3. External changes ( Government policies, taxes, etc)
4. Lower cost competitors and cheap imports
5. Price war
6. Product substitution
Chapter :
Conclusion
Conclusion
This chapter concludes the study by highlighting the key findings of the study and some
recommendations for Maruti Suzuki for future.
The aim of the study is to critically analyse Maruti’s marketing strategies in India and to
examine the effect on its sales . For this purpose secondary sources were used to collect
information about the Marketing Strategies of Maruti Suzuki.
The main driver of the sales of Maruti cars in India are the Product features.
The marketing strategies though aggressive and very customer specific are not
prime force towards the sales.
The prices of Maruti cars are competitive but they are not the price leaders.
However much information on the distribution network can not be gathered.