Customer Relationship Project 1

7/30/2019 Customer Relationship Project 1

1/80

1

A

Project Report

On

Studying of the Customer Relationship Management

In Maruti Suzuki India Limited

HIMAYATNAGAR, HYDERABAD

Master of Business Administration (Marketing)

Submitted in partial fulfillment of the requirements for award of Master of Business

Administration of Bharathiar University

UNDER SUPERVISION OF:

Ms Anjali Sharma

(Customer care Manager)

Submitted by

DONEMPUDI GIREESH BABU

Roll No: 11P35G0164


2/80

2

MAHAVIR CHAMBERS, DOOR NO. 3-6-363 & 3-6-1/1, CHAMBER BEARING NO. 101 & 102, 1ST

FLOOR, LIBERTY SQUARE STANZA, HIMAYATNAGAR, HYDERABAD

Mr. Donempudi Gireesh Babu, student of the Bharathiar University, has completed 2

months summer internship program in our office regarding the project of Studying of

the Customer Relationship Management In Maruti Suzuki India Limited.

Ms Anjali Sharma

(Customer care Manager)


3/80

3

ACKNOWLEDGMENT

My Special Thanks and gratitude to Mr. Rajeev (CEO), of AGR

automobiles for his generosity, cooperation and superb guidance that

helped me in completion of my project report.

I am extremely grateful to Ms Anjali Sharma (Customer care Manager)

and the entire staff of AGR automobiles for their cooperation and

generosity. Their experience helped me a lot in doing my project.



4/80

4

DECLARATION

I hereby declare that this project work titled Customer

Relationship Management In Maruti Suzuki IndiaLimited is my original work and no part of it has been submitted forany other degree purpose or published in any other from till date.



5/80

5

PREFACE

This project work is essentially the result of final year project which is

mandatory to be undertaken on the partial fulfilment of the course MBA

(Master of business administrator) in Marketing. The present study

entitled Customer Relationship Management In MarutiSuzuki India Limited. In spite of best endeavours, the projectreport is not a work of excellence as it is students attempt to watch

record and understand the business activities and practical aspect of

business by applying theoretical knowledge and concepts.

So I am thankful to all the managers of MARUTI SUZUKI.



6/80

6

TABLE OF CONTENT

SERIAL No. TITLE PAGE No.

CHAPTER-1

1.1 RATIONAL STUDY 10

CHAPTER-2

2.1 PROJECT TITLE 13

2.2 OBJECTIVE OF STUDY 14

2.3 SCOPE OF THE STUDY 15

CHAPTER-3

3 PROFILE OF THE

COMPANY17-33

CHAPTER-4

4. REVIEW OF LITERATURE 35-44

CHAPTER-5

5. RESEARCH

METHODOLOGY46-54

CHAPTER-6

6. DATA ANALYSIS &

INTERPRETATION56-66

CHAPTER-7

7. FINDINGS 68-69

CHAPTER-8

8. LIMITATIONS 71

CHAPTER-9

9. CONCLUSION&

RECOMMENDATIONS73-74

10 APPENDIX 76-78

11 BIBLIOGRAPHY 79


7/80

7

LIST OF TABLES

TABLE

6.1CUSTOMERS SATISFACTION FOR AGR

AUTOMOBILES

56

TABLE

6.2WHICH VERSION OF THE MODELS ARE MOSTLY

DEMANDED BY THE CUSTOMERS

57

TABLE

6.3

FEATURES OF MARUTI SUZUKI 59

TABLE

6.4WHAT IS THE PERFORMANCE OF THE CAR 60

TABLE6.5

AFTER SERVICING VEHICLE DELIVERED AT THEPROMISED TIME?

61

TABLE

6.6

WHAT RANK YOU WILL GIVE TO MARUTI

COMPANY AS FOR THE SATISFACTION LEVEL?

63

TABLE

6.7WHAT TYPE OF REPOT SHARED BETWEEN

CUSTOMER AND DEALER?

64

TABLE

6.8ABOUT COMPANY AFTER SALES SERVICE 65


8/80

8

LIST OF FIGURES

FIGURENO.

6.1CUSTOMERS SATISFACTION FOR AGR

AUTOMOBILES

56

FIGURENO.6.2 WHICH VERSION OF THE MODELS ARE MOSTLY

DEMANDED BY THE CUSTOMERS

58

FIGURE NO.

6.3

FEATURES OF MARUTI SUZUKI 59

FIGURE NO.

6.4 WHAT IS THE PERFORMANCE OF THE CAR

60

FIGURE NO.

6.5

AFTER SERVICING VEHICLE DELIVERED AT THE

PROMISED TIME?

62

FIGURE NO.

6.6

WHAT RANK YOU WILL GIVE TO MARUTI

COMPANY AS FOR THE SATISFACTION LEVEL?

63

FIGURE NO.6.7

WHAT TYPE OF REPOT SHARED BETWEEN

CUSTOMER AND DEALER?

64

FIGURE NO.

6.8ABOUT COMPANY AFTER SALES SERVICE 66


9/80

9

CHAPTER -1

Rationale for the Study


10/80

10

In todays intensely competitive, rapidly changing and highly complexenvironment characterize by diminishing customer loyalty, the need to

be market focused and customer centric is more critical than any other

time in past. It is highly imperative for every organization to retain and

use valuable information about their customer to enhance their business

strategies and product and service offerings. Today, the key focus area

of much organization is identification of a link between customer

satisfaction and performance. However, satisfaction as the confirmation

of expectation has started to be conceptualizing almost as a threshold for

customers. The delivery of satisfaction is the minimum the customer

expects.

After completing the primary formalities for vocational training, the

approach followed for the project was by .having debatable discussion

on various topics with the project guide, and keeping in mind the total

time duration 8 weeks, the project title Study of the Customer

Relationship Management for AGR automobiles Hyderabad was

decided. Primarily, the researcher was given some random idea about

this project at AGR automobiles. After having very basic understanding

about its objective and its importance in the organization, helped in

understanding the project better so as to make platform for analysis.


11/80

11

The objective behind making this project is to have the knowledge of

the practices of Maruti Services by the Marketing Department. MarutiSuzuki India Limited 50% smaller, fewer, lighter and more beautiful.

style and design quotient (formerly Maruti Udyog Limited), a

subsidiary of Suzuki Motor Corporation of Japan, is India's largest

passenger car company, accounting for over of the domestic car market.

From its very inception,Maruti Suzuki has brought to India,a simple yet

powerful apanese philosophy The benefits of product quality, safety and

cost consciousness have been fused and filliped in order to present the

Indian populace with cars high on the . The extreme relevance of our

brands in the Indian car arena, in beat with the lifestyles and desires of

our changing nation has made us the market favourites, for over two

decades. Gaining ground from strength to strength, we are inspirited

now more than ever,to push boundaries and conquer new horizons.

The Indian economy grew at an impressive 9 percent in GDP during

2007-08. Of late, inflation has hardened and oil and certain other

commodity prices have shot up, resulting in higher interest rates and an

uncertain outlook for the very near term. However, the country's

economy is still expected to continue to grow robustly, if at a slightly

slower pace.


12/80

12

CHAPTER -2

Objective of the Study


13/80

13

Project Title:

Studying of the Customer Relationship

Management In Maruti Suzuki India

Limited


14/80

14

Objective of Study:

Primary objective:

To study the customer awareness about Maruti Suzuki, & AGRAutomobiles.

To enhance the sale of Maruti Suzuki in the showroom.To know the reason for the loss of inventory.

Secondary objectives

To analyze the customer buying behavior.To find out the satisfaction level of the customers at AGR

automobiles showroom.

To study the effect of event and promotion.To make various suggestion on the improvement of the AGR

automobiles.


15/80

15

Scopes of Study:

Study is restricted to various parts of Hyderabad which include:Mahmoorganj, Sigra.

The scope of the study is restricted to Customer RelationshipManagement only

Time frame-there is limited time of two months June to August2009


16/80

16

CHAPTER -3

Profile of the Company


17/80

17

Company Profile

Maruti Suzuki is one of India's leading automobile manufacturers and

the market leader in the car segment, both in terms of volume of vehicles

sold and revenue earned. Until recently, 18.28% of the company was

owned by the Indian government, and 54.2% by Suzuki of Japan. The

Indian government held an initial public offering of 25% of the company

in June 2003. As of May 10, 2007, Govt. of India sold its complete share

to Indian financial institutions. With this, Govt. of India no longer has

stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though

the actual production commenced in 1983 with the Maruti 800,based on

the Suzuki Alto key car which at the time was the only modern car

available in India, its' only competitors- the Hindustan Ambassador and

Premier Padmini were both around 25 years out of date at that point.

Through 2004, Maruti has produced over 5 Million vehicles. Marutis are

sold in India and various several other countries, depending upon export

orders. Cars similar to Marutis (but not manufactured by Maruti Udyog)

are sold by Suzuki and manufactured in Pakistan and other South Asian

countries. Its manufacturing facilities are located at two facilities

Gurgaon and Manesar south of New Delhi. Marutis Gurgaon facility

has an installed capacity of 350,000 units per annum. The Manesar

facilities, launched in February 2007 comprise a vehicle assembly plant

with a capacity of 100,000 units per year and a Diesel Engine plant with


18/80

18

an annual capacity of 100,000 engines and transmissions. Manesar and

Gurgaon facilities have a combined capability to produce over 700,000units annually. During 2007-08, Maruti Suzuki sold 764,842 cars, of

which 53,024 were exported. Maruti Suzuki offers 13 models, Maruti

800, Omni, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo,

Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift dzire, A star

and SX4 are maufactured in Manesar, Grand Vitara is imported from

Japan as a completely built unit (CBU), remaining all models are

manufactured in Maruti Suzuki's Gurgaon Plant.

Established in December 1983, Maruti Suzuki India Ltd. has ushered a

revolution in the Indian car industry. This car is meant for an average

Indian individual which is affordable as well as has elegant appeal.

Maruti Suzuki India Ltd. is the result of collaboration of Maruti with

Suzuki of Japan. At this time, the Indian car market had stagnated at a

volume of 30,000 to 40,000 cars for the decade ending 1983. This was

from where Maruti took over.

The company has crossed the milestone of becoming the first Indian

company in March 1994, by manufacturing in totality one million

vehicles. It is known for its mass-production and selling of more than a

million cars. 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.More than half the

number of cars sold in India wear a Maruti Suzuki badge. We are a


19/80

19

subsidiary of Suzuki Motor Corporation Japan. We offer full range of

cars- from entry level Maruti 800 & Alto to stylish hatchback Ritz, Astar, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility

vehicle Grand Vitara.

Since inception, we have produced and sold over 7.5 million vehicles in

India and exported over 500,000 units to Europe and other countries.

Our turnover for the fiscal 2008-09 stood at Rs. 203,583 Million &

Profit After Tax at Rs. 12,187 Million.

Sales figure in the year 1993 has reached up to 1,96,820. Maruti comes

in a variety of models in the 800 segment. Its cars operate on Japanese

technology, pliable to Indian conditions and Indian car users. By the

year 1998-99, the company has modernize the existing facilities and

expand its capacity by 1,00,000 units.

Recently to ward off the growing competition, Maruti has completed Rs.

4 billion expansion project at the current site, which has raised the total

production capacity to over 3,20,000 vehicles per annum. With the

coming of each and every year, the total production of the company

exceed by 4,00,000 vehicles.

In the small car segment it produces the Maruti 800 and the Zen. The big

car segment includes the Maruti Esteem and the Maruti 1000. Along

with them, the company also manufactures Maruti Omni. Other models


20/80

20

includes Wagon R and the Baleno.

Headquarter in Gurgaon, on 17 September 2007, Maruti Udyog wasrenamed to Maruti Suzuki India Limited. Both in terms of volume of

vehicles sold and revenue earned, the company is India's leading

automobile manufacturers and the market leader in the car segment.

Sales recorded in June 2008, is Rs. 4,753.58 crores.

MISSION

An Organizations mission is the purpose or reason for the

organizations existence, means, what the company is providing tosociety.

Maruti seeks to create a more prosperous society through

automotive manufacturing

Mission critical attitude and fiscal prudence has been a way of life

within Maruti, good or bad times notwithstanding. And what has fuelled

this over the last 18 months is the Japanese major's 3-G philosophy

pushed by Nakanishi, which he refers to as 'going back to basics'. "Arm

chair management doesn't help," says Nakanishi. Genba (go to actual

spot), Genjitsu (see what's happening) and Gembutsu (identify actual

problem) have laid down the framework for Maruti in its 3-year rolling


21/80

21

plan till 2010-11. Marutis fundamental mission is to contribute to

peoples lifestyles, society, and the economy through automotivemanufacturing. In upholding this mission, we have always focused on

the future of the automobile industry when deciding how best to position

our company.

VISION

While the global economy is deep in the recession roil and its tremors

being felt in India, the country's largest automaker seems unfazed, What

is helping Maruti today, is the company's ability to constantly innovate

even beyond product ,so the companys vision is We have to ensure

that any disruption in the environment doesn't jeopardize your market

position. If we say this vision in one line then it is Marutis aims to

achieve long-term, stable growth in harmony with the environment,

the global economy, the local communities it serves, and its

stakeholders.

Facilities

Maruti Suzuki has two state-of-the-art manufacturing facilities in India.

The first facility is at Gurgaon spread over 300 acres and the other

facility is at Manesar, spread over 600 acres in North India.


22/80

22

The Gurgaon facility

Maruti Suzuki's facility in Gurgoan houses three fully integrated plants.

While the three plants have a total installed capacity of 350,000 cars per

year, several productivity improvements or shop floor Kaizens over the

years have enabled the company to manufacture nearly 700,000 cars/

annum at the Gurgaon facilities.The entire facility is equipped with more

than 150 robots, out of which 71 have been developed in-house. More

than 50 per cent of our shop floor employees have been trained in Japan.

Our Gurgaon facility also houses `K' Engine plant. The `K' family

engine plant has an installed annual capacity of 240,000 engines and was

commissioned in 2008.

Spread over an area of 20,300 m2, the `K' family engine facility is part

of the Rs 9,000 crore investment plan drawn by Maruti Suzuki and

Suzuki Motor Corporation.

The next generation `K'engine like all Maruti Suzuki earlier

technologies is highly fuel efficient, while offering the best in

refinement and performance.It will take the engine technology to the

next level in India. A-Star is the first car to be powered by `K' family

engine. The forthcoming models will be powered by other `K' family

engines The in-line plant layout consisting of Casting, Machining and

Assembly processes has high level of automation, effective material

handling and inventory reduction techniques in place, aimed for high

operational efficiency.


23/80

23

The facility employs global manufacturing best practices like cold

testing, 100% on line automated checks to ensure global quality.

The Manesar facility

Our Manesar facility has been made to suit Suzuki Motor Corporation

(SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The

plant was inaugurated in February 2007. At present the plant rolls out

World Strategic Models Swift , A-star & SX4 and DZire.The plant has

several in-built systems and mechanisms. There is a high degree of

automation and robotic control in the press shop, weld shop and paint

shop to carry on manufacturing work with acute precision and high

quality.

The plant is designed to be flexible: diverse car models can be madehere conveniently owing to automatic tool changers, centralized weld

control system and numerical control machines that ensure high quality.

The plant at Manesar is the company's fourth car assembly plant and

started with an initial capacity of 100,000 cars per year. This will be

scaled up to 300,000 cars per year by October 2008.


24/80

24

Diesel Engine Plant- Suzuki Powertrain India Limited

Suzuki Powertrain India Limited the diesel engine plant at Manesar is

SMC's & Maruti's first and perhaps the only plant designed to produce

world class diesel engine and transmissions for cars. The plant is under

a joint venture company, called Suzuki Powertrain India Limited (SPIL)

in which SMC holds 70 per cent equity the rest is held by MSIL .

This facility has an initial capacity to manufacture 100,000 diesel

engines a year. This will be scaled up to 300,000 engines/annum by

2010.

Road Safety And Maruti Suzuki

Maruti Suzuki has already trained around 450,000 persons in safe

driving in the last few years. Through the National Road Safety Mission,

the company plans to touch a total of million persons in the next few

years.

Maruti Suzuki contributes towards road safety through its IDTR and

MDS initiatives.

National Road Safety


25/80

25

Taking forward its commitment to Road Safety, Maruti Suzuki hasadopted a National Road Safety Mission.

Under the mission Maruti Suzuki will Train 500,000 people in safedriving in the next 3 years across India.

While utilizing the existing 2 Institutes of Driving Training andResearch (IDTR) in Delhi and the 50 Maruti Driving Schools

(MDS) across the country the company will enter into partnerships

with state governments for more IDTRs and with its dealers for

more MDS.

Of the 500,000 people to be trained, at least 100,000 will be peoplefrom

Underprivileged section of society, who are keen to take driving asa profession.

In addition, Maruti Suzuki will continue to support to governmentand industry in their efforts for road safety.

Maruti Exports

Maruti Suzuki exports entry-level models across the globe to over 100

countries and the focus has been to identify new markets. Some

important markets include Latin America, Africa and South East Asia.


26/80

26

Interestingly with a brand new offering A-star, Maruti Suzuki is ready to

take on European markets.Maruti Suzuki sold 53,024 units during 2007-08. This is the highest ever export volume in a year for the company,

and marked a growth of 35 per cent over the previous year.

Maruti Suzuki has exported over 552,000 units cumulatively with about

280,000 units to Europe and Israel Big ticket to Europe .The year 2009

holds the big ticket to Europe.

The export effort will be led by Suzuki's fourth World Strategic Model,

A-star, which is being manufactured exclusively in Maruti Suzuki.

Maruti Suzuki has been exporting cars for more than a decade, and

customers in India draw reassurance from the fact that cars

manufactured by Maruti Suzuki have a place in the most demanding

markets. Quote UnQuote, S. Nakanishi, MD & CEO, MSIL The first

export shipment of Maruti Suzuki's World Strategic Model A-star set out

for Europe in early January from the newly built Mundra port. Branded

as Suzuki Alto in Europe, this marks Suzuki's re-entry into the European

small-car market. Maruti Suzuki had unveiled the Suzuki World

Strategic Model A-star in mid-November 2008.

The car has been tastefully designed keeping in mind the discerning

European and Indian customers. The compact car with a brand new

design is also one of the finest in terms of environment friendliness.

Maruti Suzuki is looking forward to increase its export volumes

manifold and enhance its presence in Europe through the A-star. To


27/80

27

meet the infrastructure demand Maruti Suzuki has forged partnerships

with the Adani group to set up a mega car terminal at Mundra.

Dedicated car terminal facility

The mega car terminal facility being developed at Mundra is a part of

the long term agreement signed between Maruti Suzuki and MPSEZL

last year to develop a dedicated car handling facility. The mega car

terminal, being built with an initial investment of Rs 100 crore (INR 1

billion) will conform to international standards. The facility is expected

to bring global efficiencies to the auto logistics industry and will help

bring India on the global automotive logistics map.The car terminal is

expected to be fully operational by March 2009. The facility would also

house a state-of-the-art 'Wash Inspection and Waxing Centre', a car

stockyard and a dedicated 'buffer area' for cars to be parked before

loading onto the ship.

"Maruti Suzuki has ambitious plans for exports. Maruti Suzuki has the

technology, skills and manufacturing capabilities to build global quality

cars for international markets. However, to match our export ambitions,

we needed infrastructure support like a dedicated car terminal. With this

initiative and with partners like MPSEZL and NYK, we have confidence

that our exports volumes would grow manifold. It is indeed a big leap in

automotive logistics for India." Quote UnQuote, S. Nakanishi, MD &

CEO, MSIL at the inaugural shipment.


28/80

28

Maruti Suzuki & Motor Sports

Be it a motorsport enthusiast, an amateur or a professional, Maruti

Suzuki offers the thrill and joy of motorsport to all of them. The Maruti

Suzuki motorsport calendar is packed with exciting motoring events. For

families, there are events like Women's Fun Drive and Treasure Hunt

throughout the year, across cities. The Maruti Suzuki Autocross brings

action for amateurs and professionals, together. But what makes the

Maruti Suzuki motorsport calendar an attraction in India (and

internationally too) are Maruti-Suzuki Raid-de-Himalaya, Maruti Suzuki

Rally Desert Storm and Maruti Suzuki Monsoon Car Rally of Kerala.

Board of Directors

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

Chairman Managing Director and CEO Director


29/80

29

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

Director Director Director

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

Director Director Director

Mr. Kenichi Ayukawa Mr. Tsuneo Ohashi

Director Director and Managing Executive Officer (Production)

As a responsible corporate citizen, Maruti Suzuki India Limited ('Maruti'

or "the Company") has always believed in following highest standards

of Corporate Governance. Being a listed Company, every act of the


30/80

30

Company, its Board Members and its employees is the focus of public

attention and accordingly, there is a need to reinforce Maruti'scommitment towards maintaining highest standards of Corporate

Governance. This Code of Business Conduct and Ethics ("Code of

Conduct" or "Code") helps ensure compliance with our standards of

business conduct & ethics and also with regulatory requirements. All

Senior Management Personnel are expected to read and understand this

Code of Business Conduct and Ethics, uphold these standards in day-to-

day activities and also comply with all applicable standards, policies and

procedures of the company. This policy should be read in conjunction

with applicable regulations & existing policies & procedures of the

Company. You can also contact the Secretarial & Legal Department if

you have any questions or clarifications.

Company Products

Offers 14 models of cars such as:

Maruti 800 launched 1983Maruti Omni launched -1984Maruti Gypsy launched -1985Maruti Zen launched -1990


31/80

31

Maruti Alto launched -2000Maruti Wagon-R launched -2002Maruti Versa launched -2003Maruti Grand Vitara launched -2004Maruti Suzuki Swift launched -2005Maruti Zen Estilo launched -2006Maruti Suzuki SX4 launched -2007Maruti Swift Dzire launched -2008Maruti A-Star launched -2008Maruti Suzuki Ritz launched -2009In spite of all these models, Baleno failed to meet the customer

expectations.

Key success factor

(1)The Quality Advantage


32/80

32

Maruti Suzuki owners experience fewer problems with their vehicles

than any other car manufacturer in India (J.D. Power IQS Study 2004).The Alto was chosen No.1 in the premium compact car segment and the

Esteem in the entry level mid - size car segment across 9 parameters.

(2)A Buying Experience like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms

across 189 cities, with a workforce of over 6000 trained sales personnel

to guide MUL customers in finding the right car.

(3)Quality Service across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest

across all 7 parameters: least problems experienced with vehicle

serviced, highest service quality, best in-service experience, best service

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

best service initiation experience.92% of Maruti Suzuki owners feel that

work gets done right the first time during service. The J.D. Power CSI

study 2004 also reveals that 97% of Maruti Suzuki owners would

probably recommend the same make of vehicle, while 90% owners

would probably repurchase the same make of vehicle.

(4)One Stop Shop

At Maruti Suzuki, customers will find all car related needs met less than

one roof. Whether it is easy finance, insurance, fleet management


33/80

33

services, exchange- Maruti Suzuki is set to provide a single-window

solution for all car related needs.

(5) The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost customers face

when buying a car. Although a car may be affordable to buy, it may not

necessarily be affordable to maintain, as some of its regularly used spare

parts may be priced quite steeply. Not so in the case of a Maruti Suzuki.

It is in the economy segment that the affordability of spares is most

competitive, and it is here where Maruti Suzuki shines.

(6)Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among

all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem,

Maruti 800, Alto and Omni.

(7) Technological Advantage

It has introduced the superior 16 * 4 Hypertech engines across the entire

Maruti Suzuki range. This new technology harnesses the power of a

brainy 16-bit computer to a fuel-efficient 4-valve engine to create

optimum engine delivery. This means every Maruti Suzuki owner gets

the ideal combination of power and performance from his car.


34/80

34

CHAPTER -4

REVIEW OF

LITERATURE


35/80

35

C.R.M

Customer relationship management (CRM) consists of the processes

a company uses to track and organize its contacts with its current and

prospective customers. CRM software is used to support these

processes; information about customers and customer interactions can be

entered, stored and accessed by employees in different company

departments. Typical CRM goals are to improve services provided tocustomers, and to use customer contact information for targeted

marketing.

While the term CRM generally refers to a software-based approach to

handling customer relationships, most CRM software vendors stress that

a successful CRM effort requires a holistic approach. CRM initiativesoften fail because implementation was limited to software installation,

without providing the context, support and understanding for employees

to learn, and take full advantage of the information systems. CRM tools

should be implemented "only after a well-devised strategy and

operational plan are put in place". CRM can be implemented without

major investments in software, but software is often necessary to explore

the full benefits of a CRM strategy. Other problems occur when failing

to think of sales as the output of a process that itself needs to be studied

and taken into account when planning automation. From the outside,

customers interacting with a company perceive the business as a single


36/80

36

entity, despite often interacting with a number of employees in different

roles and departments. CRM is a combination of policies, processes, andstrategies implemented by an organization to unify its customer

interactions and provide a means to track customer information. It

involves the use of technology in attracting new and profitable

customers, while forming tighter bonds with existing ones.

CRM includes many aspects which relate directly to one another:

Front office operations Direct interaction with customers, e.g.face to face meetings, phone calls, e-mail, online services etc.

Back office operations Operations that ultimately affect theactivities of the front office (e.g., billing, maintenance, planning,

marketing, advertising, finance, manufacturing, etc.) Business relationships Interaction with other companies and

partners, such as suppliers/vendors and retail outlets/distributors,

industry networks (lobbying groups, trade associations). This

external network supports front and back office activities.

Analysis Key CRM data can be analyzed in order to plan target-marketing campaigns, conceive business strategies, and judge the

success of CRM activities (e.g., market share, number and types of

customers, revenue, profitability).

Proponents of CRM software claim that it doesn't only allow more

effective ways of managing customer relationships, but also more


37/80

37

customer-centric ways of doing business. Executives often cite the need

for the proper tools as a barrier to delivering the experience theircustomers expect. A 2009 study of over 860 corporate executives

revealed only 39% believe that their employees have tools and authority

to solve customer problems.

Types/variations of CRM

There are several different approaches to CRM, with different software

packages focusing on different aspects. In general, Customer Service,

Campaign Management and Sales Force Automation (SFA) form the

core of the system (with SFA being the most popular).

Operational CRM

Operational CRM provides support to "front office" business processes,

e.g. to sales, marketing and service staff. Interactions with customers are

generally stored in customers' contact histories, and staff can retrieve

customer information as necessary. The contact history provides staff

members with immediate access to important information on the

customer (products owned, prior support calls etc.), eliminating the need

to individually obtain this information directly from the customer.

Reaching to the customer at right time at right place is preferable.

Operational CRM processes customer data for a variety of purposes:

Managing campaigns


38/80

38

Enterprise Marketing Automation

Sales Force Automation Sales Management System

Analytical CRM

Analytical CRM analyzes customer data for a variety of purposes:

Designing and executing targeted marketing campaigns

Designing and executing campaigns, e.g. customer acquisition,cross-selling, up-selling, addon-selling

Analyzing customer behavior in order to make decisions relating toproducts and services (e.g. pricing, product development)

Management information system (e.g. financial forecasting andcustomer profitability analysis)

Analytical CRM generally makes heavy use of data mining and other

techniques to produce useful results for decision-making. It is at the

analytical stage that the importance of fully integrated CRM software

becomes most apparent. Logically speaking, the more information

that the analytical software has available for analysis, the better its

predictions and recommendations will be.

Sales Intelligence CRM


39/80

39

Sales Intelligence CRM is similar to Analytical CRM, but is intended as

a more direct sales tool. Features include alerts sent to sales staffregarding:

Cross-selling/Up-selling/Switch-selling opportunities Customer drift Sales performance

Customer trends Customer margins Customer alignment

Campaign Management

Campaign management combines elements of Operational and

Analytical CRM. Campaign management functions include:

Target groups formed from the client base according to selectedcriteria

Sending campaign-related material (e.g. on special offers) toselected recipients using various channels (e.g. e-mail, telephone,

SMS, post)

Tracking, storing, and analyzing campaign statistics, includingtracking responses and analyzing trends

Collaborative CRM


40/80

40

Collaborative CRM covers aspects of a company's dealings with

customers that are handled by various departments within a company,such as sales, technical support and marketing. Staff members from

different departments can share information collected when interacting

with customers. For example, feedback received by customer support

agents can provide other staff members with information on the services

and features requested by customers. Collaborative CRM's ultimate goal

is to use information collected by all departments to improve the quality

of services provided by the company. CRM also plays a role of data

distributor within customers, producers and partners. Producers can use

CRM information to develop products or find new market. CRM

facilitates communication between customers, suppliers and partner by

using new information system such email, link and data bank.

Consumer Relationship CRM

Consumer Relationship System (CRS) covers aspects of a company's

dealing with customers handled by the Consumer Affairs and Customer

Relations contact centers within a company. Representatives handle in-

bound contact from anonymous consumers and customers. Early

warnings can be issued regarding product issues (e.g. item recalls) and

current consumer sentiment can be tracked (voice of the customer).


41/80

41

Strategy

Several CRM software packages are available, and they vary in their

approach to CRM. However, as mentioned above, CRM is not just a

technology but rather a comprehensive, customer-centric approach to an

organization's philosophy of dealing with its customers. This includes

policies and processes, front-of-house customer service, employee

training, marketing, systems and information management. Hence, it isimportant that any CRM implementation considerations stretch beyond

technology toward the broader organizational requirements.

Implementation issues

Many CRM project "failures" are also related to data quality and

availability. Data cleaning is a major issue. If a company's CRM strategy

is to track life-cycle revenues, costs, margins, and interactions between

individual customers, this must be reflected in all business processes.

Data must be extracted from multiple sources (e.g.,

departmental/divisional databases such as sales, manufacturing, supply

chain, logistics, finance, service etc.), which requires an integrated,

comprehensive system in place with well-defined structures and high

data quality. Data from other systems can be transferred to CRM

systems using appropriate interfaces.


42/80

42

Because of the company-wide size and scope of many CRM

implementations, significant pre-planning is essential for smooth roll-out. This pre-planning involves a technical evaluation of the data

available and the technology employed in existing systems. This

evaluation is critical to determine the level of effort needed to integrate

this data.

Equally critical is the human aspect of the implementation. A successfulimplementation requires an understanding of the expectations and needs

of the stakeholders involved. An executive sponsor should also be

obtained to provide high-level management representation of the CRM

project. An effective tool for identifying technical and human factors

before beginning a CRM project is a pre-implementation checklist. A

checklist can help ensure any potential problems are identified early in

the process.

Privacy and data security System

One of the primary functions of CRM software is to collect information

about customers. When gathering data as part of a CRM solution, a

company must consider the desire for customer privacy and data

security, as well as the legislative and cultural norms. Some customers

prefer assurances that their data will not be shared with third parties

without their prior consent and that safeguards are in place to prevent

illegal access by third parties.


43/80

43

Maruti Suzuki CRM

Maruti Suzuki achieves an overall C.S.I Score of 820 an a 1000 point

Scale, overall customer satisfaction with dealer service for the industry

improves slightly in 2008-up by 3 points since 2007,with six of the 11

ranked brands demonstrating gains. While ranking below the industry

average Tata and Mahindra emerge as the most improved brands,

respectively, particularly in the areas of services initiation, quality of

services advisors and in services experience.

Maruti Suzuki has effectively implemented simple producers that

improved satisfaction with the value of work performed and perceptions

of the fairness and honesty of the dealer, such as greeting service

customers quickly upon arrival and fully explaining charges and

repairs, said Mohit Arora senior director at J.P Power Asia Pacific,

Singapore Instituting these low.-effort yet high-impact practices helps

to foster trust among customers, which is critical to building loyalty for

future service and sales opportunities.

The study finds that the proportion of vehicles brought in and serviced

within the same day has increased to 55 percent this year from 49

percent in 2007.Quick completion of service is a key source of


44/80

44

customers delight, particularly for customers who visit the dealer for

routine maintenance.

In 2008 India Customer Satisfaction Index(C.S.I) study is based on

responses from more than 5,594 owners of nearly 41 different vehicle

models. The study was fielded from June to August those customers

who serviced their vehicles at authorized services facilities.

S.M.R.-(service marketing report)-

Services marketing report is the detail of the customers who purchased

the car from the showroom. In this report we have the data about the

Customer purchasing date and the time of car servicing. Means by this

report we remind to customer that it is the time of your car servicing .So

we ask some questions for customer satisfaction these are the following

questions:

Ques.1-are you aware of the maintained schedule of yours cars?

Ques2-as per record you cars service in due on-will you like to make

a booking?


45/80

45

CHAPTER -5

RESEARCH

METHODOLOGY


46/80

46

Research Methodology

Research methodology is away to systematically solve research problem.

In it we study the various step that are generally adopted by researcher in

studying his research problem along with logic behind them. It is

necessary for a researcher to know not only the research

method/techniques but also the methodology. It may be noted, in the

context of planning & development that the significance of research

lines in its quality and not in quantity. Researcher should know how to

apply particular research techniques, but they also need to know which

of these methods or techniques, are relevant and which are not, and what

would they mean and indicate and why?

Meaning of Research

Research is common parlance refers to a search for knowledge. In fact

research is an act of scientific investigation.


47/80

47

The project was divided in to the following steps.

To decide objective of the study

1.To decide objective of the Study:-

This step is also research problem. problem definition is the most critical

part of the research process. research problem definition involves

specifying the information needed by management. The main objective

of the study are:

To decide research design

& application

To decide source of data

collection

To decide from of data

collection

To organize & collect

data

To process & analyze

report

To prepare the

research report


48/80

48

To study the awareness of Maruti Suzuki & AGR automobiles inHyderabad.

To find out the level of customer satisfaction with the offers,discount and services offered by Maruti Suzuki & AGR

automobiles.

2. To decide research design & application:-

Research design involves defining the research problem, determining

how to collect the data and from whom, establishing the way the data

will be analyzed estimating costs and the preparation of the research

approach. For this study, descriptive research was selected.

3. To decide Source of data there are two source of data

Primary DataSecondary Data

Primary data:-

Primary data is the original data collected specifically for the problem.


49/80

49

Reason for selecting primary data:-

In terms of primary data a questionnaire has been used to interview

desire sample units that give accurate and up to data information as well

better to research problem.

Research approaches: - Primary data can be collected in five main

ways: through Observation, focus groups, surveys, behavioral data, and

experiments.

Research instruments:- Marketing researchers have a choice of three

main research Instruments in collecting primary data:

Questionnaires: - A questionnaire consists of questions presentedto respondents for their answers. Because of its flexibility, the

questionnaire is by far the most common Instrument used to collectprimary data. Questions can be open-ended or closed-Ended.

Qualitative measures: - Some marketers prefer more qualitativemethods for gauging consumer opinion because consumer actions

do not always match their answers to survey questions. Qualitative

research techniques are relatively unstructured measurement

approaches that permit a range of possible responses, and they are

a creative means of ascertaining consumer perceptions that may

other-Wise be difficult to uncover.

Mechanical devices: -Mechanical devices are occasionally usedin marketing research .Mechanical devices like galvanometers


50/80

50

measure the respondents interest or emotions aroused by exposure

to a specific ad or picture.

Secondary data:-

Data potentially useful in solving a current problem but that were

collected for a different purpose.

Reason for selecting secondary data:-

Secondary data can be gathered quickly and inexpensively, compared to

primary data, it is clear useful to study analyzing the recent development

in the telecom industry.

Contact methods:- Once the sampling plan has been determined, the

marketing researcher must decide how the subject should be contact:

Mail questionnaire: - The mail questionnaire is the best way toreach people who would not give personal interviews or whose

responses might be biased or distorted by the interviewers. Mail

questionnaires require simple and clearly worded questions.

Telephone interview: - Telephone interviewing is the bestmethod for gathering information quickly; the interviewer is also

able to clarify questions if respondents do not understand them.

The response rate is typically higher than in the case of mailed

questionnaires.

Personal interview: - Personal interviewing is the most versatilemethod. The interviewer can ask more questions and record


51/80

51

additional observations about the respondent, such as dress and

body language. Personal interviewing takes two forms. In arrangedinterviews, respondents are contacted for an appointment, and

often a small payment or incentive is offered. Intercept interviews

involve stopping people at a shopping mall or busy street corner

and requesting an interview.

Online interviews: - There is increased use of online methods.There are so many ways to use the Net to do research. In this

method, researcher can include a questionnaire on its Web site and

offer a people to answer the questionnaire.

4.To decide from of data collection:-

For this project survey method was selected which was carried through

person interview. Because information from different customers was

required.

5. To organize & collect data:-

Once the researcher has formulated and development a research design

including questionnaire second thing he has to decide whether he has to

collect the information. From all the targeted customers. There can be

two types of survey are possible.

Sample SurveyCensus Survey


52/80

52

For this project sample Survey war chosen

Characteristics of the sample survey are:-

It is cheaper than census surveyIt requires less timeIt is economicalMore detail information can be collected

Deciding the sample plan requires following decisions

Sample unit Who is to be surveyed

Sample

Sample is the true representation of the population by studying of the

sample we can predict the behavior of the population.

Sample Size: 250 (in this case)

Method of Sampling:-

In this project, the survey was done within the market that means

probabilistic convenience Sampling was carried out.

6. To process & analyze data:-


53/80

53

After the data was collected it was tabulated, analyzed and interpreted to

the conclusion reach.

Techniques Applied

Bar Chart:- A chart in which the length of the bar represents theamount of the item associated with the bar.

Pie Chart:- A circle divided in to sections, such that each sectionrepresent the percentage of the total area of a circle associates with

one variable.

Types of Research

Along with this there may be 3 type of research methodology these are :-

They are

Exploratory ResearchDescriptive ResearchCasual Research


54/80

54

Our research is based on the exploratory research.

Exploratory Research

The objective of this research is to gather preliminary information that

will help us to define the problem and to suggest any hypothesis.

Which means first we have to define the problem and research

objective? Then we have to develop the research plan for collecting

information. Now after collection data we have to interpret those data

for any suggestion,


55/80

55

CHAPTER-6

DATA ANALYSIS &

INTERPRETATION


56/80

56

Customers Satisfaction for AGR Automobiles

TABLE No.6.1

Levels of Satisfaction Value Percentage responded

Satisfied 135 54%

Dissatisfied 55 22%

No Comments 55 22%

Highly Satisfied 5 2%

Figure No.6.1

Data \Analysis

From the analysis we can conclude that to the existing customer of the

dealers, there are satisfied customer 54%, dissatisfied are 22% from


57/80

57

servicing or after sales servicing,22% is the percentage of those

customers who not replied, There is also 2 % customer who was highlysatisfied from the company and also from dealers.

Data Interpretation

In the showroom there is range of the customers, huge no. of customers

are satisfied from the service of the company and dealer, there is also

no. of customer who are dissatisfied from the services but rage of

satisfied and highly satisfied customer is more.

Which version of the models are mostly demanded by the

customers

TABLES No. 6.2

Version Value Percentage of Demand

PETROL 90 36%

DISEL 112.5 45%

LPG 47.5 19%


58/80

58

Figure No.6.2

Data Analysis

From the above table we can conclude that according to the dealers 45 %

of the customer asks for the diesel variants while 36 support the petrol

variants and 19 % wants the LPG variants of different models.

Data InterpretationThe demand for the diesel variant is more for most of the models but the

firm has limited number of the models having diesel variants. The

customers are also looking for the gas models which will suitable for

LPG and CNG. So the firm should think for the diesel and gas variants.


59/80

59

Features of Maruti Suzuki

TABLE No.6.3

Features Value Percentage of loyalty

Price 95 38%

Quality 55 22%

Service 87.5 35%

Others 12.5 5%

Figure No.6.3

Data Analysis

The above analysis shows that 38 % of customers are buying the Maruti

Suzuki product for its price, 22 % buy them due to their quality. 35%

think that after sale service is provided by Maruti. And 5% people buy

them due to other reasons like style, look etc.


60/80

60

Data Interpretation

We can conclude that most of the people think that Maruti Suzuki

pricing are economical so they are loyal to his brand. While other people

give emphasis to the after sale service. Quality and other features are

also a trait for the buyers.

What is the Performance of the Car

TABLE No.6.4

Customer Opinion Value Percentage of Responded

Excellent 62.5 25%

Very good 125 50%

Good 50 20%

Poor 12.5 5%

Figure No.6.4


61/80

61

Data Analysis

The above analysis shows that there is 25% customers are highly

satisfied from the performance of car, there is 50% response is very

good and 20% is response for good also there is 5% response of poor

performance of car.

Data Interpretation

We can conclude that there is huge no of customers are satisfied with

the performance of the car, data is concerned with those customers who

are the existing customers of Maruti Suzuki and data is also concerned

with new customers.

After servicing vehicle delivered at the promised time?

TABLE No.6.5

Customers opinion Value Percentage of Responded

Yes 200 80%

NO 50 20%


62/80

62

Figure No.6.5

Data Analysis

There is 80% customers response is that they get their vehicle at

promisied time and 20% customers who responded that they never get

their vehicle at promisied time.

Data Interpretation

Servicing comes in after sales services,dealer provides this services to

customers so there is necessary for dealer to provide the vehicle at the

promised time because it makes the relationship better with the

customers.


63/80

63

What rank you will give to Maruti company as for the satisfaction

level?

TABLE No.6.6

Rank for the

satisfaction level

Value Percentage of

Responded

1 82 33%

2 67.5 27%

3 50 20%

4 32.5 13%

5 17.5 7%

Figure No.6.6

Data Analysis

The table is shows the rank for the customer satisfaction level 1 is

highest and 5 is the lowest,there is 33% response for the rank 1,27% for

the rank 2,20%for the rank 3,13% for the rank 4,7% for the rank 5.


64/80

64

Data Interpretation

By the analysis this is found that there is huge customers of Mruti

Suzuki those are satisfied from the company.

What type of repot shared between Customer and dealer?

TABLE No.6.7


Excellent 62.5 25%

Very good 125 50%

Good 50 20%

Poor 12.5 5%

Figure No.6.7


65/80

65

Data Analysis

The table shows that there is 25% opinion for the excellent and 50%

response for good,

20% for good and also there is 5% opinion for poor relationship with the

dealer.

Data Interpretation

There should be good relation between customer and dealer because ithelps to increase the sales of company and also helpful for making the

customer relationship management.

About Company after Sales Service

TABLE No.6.8


Excellent 62.5 25%

Very Good 125 50%

Good 37.5 15%

Poor 25 10%

Figure No.6.8


66/80

66

Data Analysis

The table shows that there is 25% customer responded for the excellent

services of company and 50% for the very good,15% for the good and

there is 10% responded for the poor services of the company.

Data Interpretation

There is important to know the after sales services of the company it

shows the customers satisfaction and also shows the customer

relationship management.


67/80

67

CHAPTER-7

FINDINGS


68/80

68

Findings

There is 54% of satisfied customers of Maruti Suzuki.The demand for the diesel variant is more for most of the models

but the firm has limited number of the models having diesel

variants. The customers are also looking for the gas models which

will be suitable for LPG and CNG. So the firm should think for the

diesel and gas variants.

Most of people think Maruti Suzuki pricing are economical so theyare loyal to his brand. While other people give emphasis to the

after sale service. Quality and other features are also a trait for the

buyers.

There is large no of customers are satisfied with the performanceof the car, data is concerned with those customers who are the

existing customers of Maruti Suzuki and data is also concerned

with new customers.

Servicing comes in after sales services,dealer provides this servicesto customers so there is necessary for dealer to provide the vehicle

at the promised time because it makes the relationship better with

the customers.


69/80

69

There should be good relation between customer and dealerbecause it helps to increase the sales of company and also helpfulfor making the customer relationship management.

There is important to know the after sales services of the companyit shows the customers satisfaction and also shows the customer

relationship management.


70/80

70

CHAPTER-8

LIMITATION


71/80

71

Limitation

It was assumed that the information given by the respondentsis authentic and best of their knowledge.

Some of the view given was completely views by customersas they were in a hurry and were not considered in the data

analysis.

The result of the study is applicable to the survey area only.Time is also one of the important limitations.Dull process and unwilling respondent also affect the result

of the study.


72/80

72

CHAPTER-9

Conclusion & Recommendation


73/80

73

Conclusion of the Study

The research work was successfully identifying by the studying the

relationship management of Maruti Suzuki in AGR Automobiles in

Hyderabad. The conclusion can be drawn from this study may be:-

Maruti Suzuki is Indias one of the leading automobilemanufactures and also the leader of the market both in terms of

volume and revenue generated.

Taking the sale trend in to account MSL sold a record number ofvehicle 7, 14,842 in 2007-08 including 53,024 units of export. In

2007-08 it record a turnover of INR 145,922 million which rose to

178,603 million in 2007-08 showing a growth of 20%.

Hence Maruti Suzuki Limited has captured over all share of 46%in the Indian car market.

Recommendation

To conclude, it can be said that AGR Automobiles has created its image

in a very short period in Hyderabad. AGR is the Best dealer of Maruti

Suzuki. It is attracting the customers with its good services. Most of the

customer satisfied by buying the Maruti car from AGR automobiles.

This satisfaction can be concluded by the response of customer in the

questionnaires. Day by day Maruti Suzuki is improving his reputation to


74/80

74

other Automobile Company. The comparison chart and survey report in

this training report can recognize this.

There should be more staff having experience of automobile sector.

There should be more efficient planning for satisfying customerneeds.

Attractive offers should be given time to time, to increasecustomers interests

There should be easy process of car servicing.


75/80

75

Appendix


76/80

76

Questionnaires

Q.No.1:- Do you have any Maruti Suzuki four wheelers?

Ans- (a) Yes (b) No

Q.No.2:-Which Maruti Model do you have?

Ans- (a) Maruti 800 (b) Maruti Swift (c) Maruti Wagon-R (d)

Maruti Alto e) Others

Q.No.3:- Which Version do you have?

Ans- a) Petrol b) diesel c) LPG or GAS

Q.No.4:-If you have Maruti Suzuki what features do you like most?

Ans- (a) Price (b) Quality (c) Services (d) other

Q.No.5:-What is the performance of your Car?

Ans : a)Excellent b) Very Good c) Good d) poor


77/80

77

Q.No.6:- After Servicing your vehicles delivered at the promised time?

Ans: a) Yes b) No

Q.No.7:- What rank you will give to your company as for the

satisfaction level 1 is the highest 5 is the lowest rank of sati-

factionary level?

Ans- (a) 1 (b) 2 (c) 3 (d) 4

(e) 5

Q.No.8:- Which type of repot shared between you and your dealer?

Ans- (a) Excellent (b) Very Good (c) Good (d)

Poor

Q.No.9:- What you will say about after sales services of company?

Ans-(a) Excellent (b) Very Good (c) Good (d)Poor

Q.No.10- If any suggestion for automobile company?


78/80

78

Ans-

.

Name:-

Occupation:-

Contact No:-

Address:-


79/80

79

BIBLIOGRAPHY


80/80

Customer Relationship Project 1

Documents

Transcript of Customer Relationship Project 1