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INTRODUCTION OF THE COMAPANY
MARUTI UDYOG LIMITED
Maruti is India's largest automobile company. The company, a joint venture with
Suzuki of Japan, has been a success story like no other in the annals of the Indian
automobile industry.
Today, Maruti is India's largest automobile company. This feat was achieved by the
missionary zeal of our employees across the line and the far-sighted vision of our
management.
The Company Mission:
To provide a wide range of modern, high quality fuel efficient vehicles in order to
meet the need of different customers, both in domestic and export markets.
The Company Vision:
We must be an internationally competitive company in terms of our products and
services. We must retain our leadership in India and should also aspire to be among
the global players.
Their focus is on:
Building a continuously improving organisation adaptable to quick changes
Providing value and satisfaction to the customer
Aligning and fully involving all our employees, suppliers and dealers to face
competition
Maximising Shareholder's value
Being a responsible corporate citizen
At Maruti, they have a clear perspective on manpower. They see it as a unique
resource, in the sense that optimal productivity of other resources depends largely on
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the way human resources are utilised. The basic philosophy of management that
underlies the Maruti culture is that all employees of the company should be moulded
into a team which then strives as one, to achieve commonly shared company goals
and objectives. To make this philosophy tenable, the Company takes several
initiatives. Inputs are sought from employees at all levels. They believe that
everyone should contribute to the formulation of company policies, goals and
objectives. Secondly, at Maruti, they encourage leadership in the best sense of the
word. According to us, a leader is one who must be impartial, must have the ability
to rise above his own subjectivity, and, most importantly, must practice what he
preaches.
They understand that the process of creating a sense of belonging that all employees
can identify with is a lengthy one. To ensure that this translates into concrete reality,
they have taken several simple but specific and well thought out measures. The first
step in this direction has been the introduction of a common uniform for all
employees. Another measure is the creation of a common canteen where all
employees have lunch, stand in common queues, and sit on the same table. Common
toilets, common transport and similar facilities for all levels of employees are other
measures that reinforce their emphasis on genuine equality in the workplace.
At Maruti They do not believe in the notion of organisational hierarchies. As a
matter of fact, the management structure and systems in Maruti have been designed
to promote decentralisation of authority. Maruti has a horizontal management
structure with only four functional levels of responsibility to facilitate quicker
decision making.
Another focus area of the Maruti culture is the maintenance of a smoothly
functioning communication network. Maruti believes that communication channels
between labour and management cannot simply consist of having a labour
representative on the Board of the Company. They have faith in the ability of labour
to effectively participate in management and make constructive suggestions. To
encourage this, they ensure that there is a thorough dissemination of information at
all levels, through newsletters or via a letter from the Chief Executive to all
employees. Meetings with the Union are held regularly, and programmes being
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contemplated by the Company are discussed with the Union. The Sahyog Samiti, a
collection of representatives of non-unionised employees, training programmes in
Japan, Quality Circles, productivity-linked incentive schemes, and an ethos of
discipline and teamwork, all contribute to the Maruti culture.
Several measures of performance have made amply clear that Maruti has established
a truly healthy work culture. They have met all project and performance targets
since inception. Their productivity levels are constantly improving. The Company
has had good labour relations with employees from the very beginning, and they
have been successful in the export market. Yet, the Maruti culture is one that does
not believe in resting on its laurels. They adhere to the spirit of Kaizen, which states
that constant improvement is always possible. The most basic tenet of productivity
that they hold dear is that " Today should be better than Yesterday and Tomorrow
should be better than Today".
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by
the lack of an efficient public transport system.
Suzuki Motor Company was chosen from seven prospective partners worldwide.
This was due not only to their undisputed leadership in small cars but also to their
commitment to actively bring to MUL contemporary technology and Japanese
management practices (which had catapulted Japan over USA to the status of the top
auto manufacturing country in the world).
A licence and a Joint Venture agreement was signed between Government of India
and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.
The objectives of MUL then were:
Modernization of the Indian Automobile Industry.
Production of fuel-efficient vehicles to conserve scarce resources.
Production of large number of motor vehicles, which was necessary for
economic growth.
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Core Value
Customer Obsession
Fast, Flexible and First Mover
Innovation and Creativity
Networking and Partnership
Openness and Learning
Vision
The leader in the India Automobile Industry, Creating Customer Delight and
Shareholders Wealth; A pride of India
Technological Advantage
We have 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.
Our other innovation has been the introduction of Electronic Power Steering (EPS)
in select models. This results in better and greater maneuverability. In other words,
our cars have become even more pleasurable to drive.
Production/R&D
Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the
Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an
average, two vehicles roll out of the factory every minute. And it takes on an
average, just 14 hours to make a car. More importantly, with an incredible range of
11 models available in 50 variants, there's a Maruti Suzuki made here to fit every
car-buyer's budget. And dream.
Production Milestones
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1st vehicle produced, December 1983
1,00,000 vehicles produced by August, 1986
5,00,000 vehicles produced by June, 1990
10,00,000 vehicles produced by March, 1994
15,00,000 vehicles produced by April, 1996
20,00,000 vehicles produced by October, 1997
25,00,000 vehicles produced by March, 1999
30,00,000 vehicles produced by June, 2000
35,00,000 vehicles produced by December 2001
40,00,000 vehicles produced by April, 2003
45,00,000 vehicles produced by April, 2004
AWARDS
2005Number one in JD Power SSI for the second consecutive year
Number one in JD Power CSI for the sixth time in a row - the only
car to winit so many timesM800, WagonR and Swift topped their segments in the TNS TotalCustomer Satisfaction Study
Leadership in the JD Power Initial Quality Study - Alto number
one in its
segment for the 2nd time in a row, Esteem number one in its
segment forthe 3rd year in a row, Swift number one in the premium compact
segment
WagonR and Esteem top their segments in the JD Power APEAL
study
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR)
study(#1 in Auto sector)-Feb 05
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Maruti bagged the "Manufacturer of the year" award from Autocar-
CNBC
( 2nd time in a row)-Feb 05First Indian car manufacturer to reach 5 million vehicles sales
Business World ranks Maruti among top five most respected
companies inIndia-Oct 04
Maruti ranked among top ten (Rank7) greenest companies in India
byBusiness Today - Sep '04
2004
Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in SalesSatisfaction No.1 in Product Quality (Esteem and Alto) and No. 1
in Product Appeal (Esteem and Wagon R)No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)
Business World ranked us among the country's five most respected
companies
Business World ranked us the country's most respected automobile
companyVoted Manufacturer of the year by CNBC
Voted one of India's Greenest Companies by Business Today-AC
Nielson ORG-MARG
2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10
automotive brands in "Most Trusted Brand survey 2003"J D Power ranked 3 models of Maruti on top: Wagonr, Zen and
Esteem
Maruti 800 and Wagonr top in NFO Total Customer Satisfaction
Study 2003.MUL tops in J D Power CSI (2001) for 4th time in a row
2001
MUL tops in J D Power CSI (2001) for 2nd time in a row: another
international first
2000
Maruti bags JD Power CSI - 1st rank; unique achievement by
market leader anywhere in the world
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1999MSM launched as model workshop in India; achieves highest CSI
rating.
Central Board of Excise & Customs awards Maruti with "Samman
Patra", for contribution to exchequer and being an ideal tax
assessee
1998
CII's Business Excellence Award
1996
Maruti wins INSSAN award for "Excellence in Suggestion
Scheme"Awarded the Star Trading House status by Ministry of Commerce
1994-95
Engineering Exports Promotion Council's award for export
performance
1994
Best Canteen award among Haryana Industries as part of employee
welfare
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WHY MARUTI SUZUKI
The Quality Advantage
A car is an engineering product, only as good as the technology used to make
it. Actual users of our technology are saying something very clearly Maruti
Suzuki is No.1 in quality:
Maruti Suzuki owners experience fewer problems with their vehicles than any other
can 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.
The J.D. Power APEAL Study 2004 proclaimed the Wagon R. No. 1 in the
premium compact car segment and the Esteem No.1 in the entry level mid-
size car segment. This study measures owner delight in terms of design,
content, layout and performance of vehicles across 8 parameters.
Maruti Suzuki has a sales network of 307 state-of-the-art showrooms across189 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. The SSI study measures sales satisfaction across 6 parameters: deal
received, paperwork, dealer facility, salesperson, delivery timing and delivery
process. Maruti Suzuki has not only got the No.1 nameplate in the J.D. Power
SSI study 2004, but also ranked way above the industry average (Maruti
Suzuki was at 784 while industry average was at 760). What is significant is
that it was ranked above Skoda, Ford, Chevrolet, Mitsubishi and Hyundai.
To be really happy with the car you own, it should have a reliable service
network at hand and within easy reach. Their 1036 city strong service
network is equipped to service 20,000 vehicles a day. No wonder Maruti
Suzuki has been awarded the No.1 nameplate in customer satisfaction in India
for the fifth year in a row, a feat unprecedented for any automobile marketleader in the world.
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A Buying Experience Like No Other
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189
cities, with a workforce of over 6000 trained sales personnel to guide our customers
in finding the right car. Our high sales and customer care standards led us to achieve
the No.1 nameplate in the J.D. Power SSI Study 2004.
Quality Service Across 1036 Cities
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7
parameters: least problems experienced with vehicle serviced, highest service
quality, best in-service experience, best service delivery, best service advisor
experience, most user-friendly service and best service initiation experience.
92% 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.
The Low Cost Maintenance Advantage
The acquisition cost is unfortunately not the only cost you 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. 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 spares followed by the Maruti-800. The Maruti-
800 has the cheapest spares of any Indian car with a basket of just Rs. 23,422.
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 also need
to combine quality, drivability and have comfortable interiors. In this
segment, the Maruti Suzuki Versa has scored particularly well with the lowest
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cost of spares in the segment. In the Upper Mid-size segment, the Maruti
Suzuki Baleno has the segment's lowest prices on a majority of the spares.
ISO 9001:2000
At Maruti, our approach to quality is in keeping with the Japanese practice--"build it
into the product". Technicians themselves inspect the quality of work. Supervisors
educate and instruct technicians to continually improve productivity and quality.
The movement of quality indicators is reviewed in weekly meetings by the top
management.
In 2001, Maruti Udyog Ltd became one of the first automobile companies
anywhere in the world to get an ISO 9000:2000 certification. AV Belgium,
global auditors for International Organization for Standardisation(ISO), certified
Maruti after a four day long audit, covering varied parameters like Customer
Focussed organisation, Leadership, Involvement of people, Process approach,
System approach to Management, Continual improvement, etc.
In May 1995, Maruti got ISO 9002 certification. The audit for this covered
quality assurance in production, installation, marketing and sales as well as after
sales services. We were also one of the first companies in the world to pioneer ISO
9000 certification for our dealers.
In October 1993, MUL passed the Conformity Of Production (COP) Audit,
which is based on a European Union Directive. This authenticated our quality
systems and testing facilities for export to Europe.
Their emphasis on total quality has meant that today they are in a position to guide
vendors and dealers in establishing and consolidating their individual quality
systems. This commitment to quality has ensured a consistently satisfying product
and world-class sales and after-sales services.
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Stages in Buying Decision Process
Need
recogniti
on
Informat
ion
search
Evaluation
of
alternative
s
Purchas
e
decisio
n
Post-
purchase
behavior
The consumer passes through five stages : Problem recognition information
search, evaluation of alternatives purchase decision and post-purchase
behavior. Clearly the buying process starts long before the actual purchase
and has consequences long after the purchase.
This model implies that consumers pass through all five stages in buying a
product. But this is not the case, especially in low-involvement purchase.
Consumers may skip or rreverse some stages. Thus a woman buying her
regular brand of toothpaste goes directly from the need for toothpaste to the
purchase decision, skipping information search and evaluation. However, we
have already used the model in above, because it captures the full range of
consideration that arise when a consumer facer a highly involving new
purchase. We will allude again to Linda Brown and try to understand how she
became interested in buying a laptop computer and the try to understand how
she became interested in buying a laptop computer and stages she went
through to make her final choice.
TARGET MARKETING
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Target Marketing involves breaking a market into segments and then concentrating
your marketing efforts on one or a few key segments.
The beauty of target marketing is that it makes the promotion, pricing and
distribution of your products and/or services easier and more cost-effective. Target
marketing is the selection of customers you wish to service. The decisions involved
in it are
Which segments to target
How many products to offer
Which products to offer in which segments
There are three steps to targeting:
Market segmentation
Target choice
Product positioning
One of the first things you need to do is to refine your product or service so that you
are NOT trying to be 'all things to all people.
Next, you need to understand that people purchase products or services for three
basic reasons:
To satisfy basic needs.
To solve problems. To make themselves feel good.
The next step in creating an effective marketing strategy is to zero in on your target
market.
Target marketing is one of corporate America's most effective business strategies.
The idea is to increase sales by first identifying, and then targeting smaller, yet more
profitable customer groups within the total market.
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Four Ways to Identify Target Markets
1. Geographic: The location, size of the area, density, and climate zoneof your customers.
2. Demographics: The age, gender, income, family composition and size,
occupation, and education of your customers.
3. Psychographics: The general personality, behavior, life-style, rate of
use, repetition of need, benefits sought, and loyalty characteristics of
your customers.
4. Behaviors: The needs they seek to fulfill, the level of knowledge,
information sources, attitude, use or response to a product of your
customers.
TARGET MARKETING
Who are your best customers? Where should you direct your marketing
activities?
Where and how should you allocate your advertising and promotional
efforts?
Target Marketing, provides Focus for your business. It helps to establish
critical Operational goals and defines what must be done to achieve them
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Target Marketing
Comparison of Automobile And Consumer
DurableAt Dealership Level
S.No Attributes Automobile Consumer Durables
1 Turnover High Low
2 Margin 8%-12% 2%-4%
3PenetrationLevel
More in small or largetowns or cities
More in Rural areasor in cities also
4
Training ofSalesExecutives
Executives get Trainingafter every specificperiod As such no training
5 Supply-Chain Co->Dealer->CustomerCo->Distributor->Dealer >Customer
6DiscountMargin Cartel
Depends on DealerTo Dealer
7 CSR Proper well organized
Only Sales man isthere to serve thecustomer
8 ASSCustomer get 3freeservice
Customer have to go
at manufacturedlevel
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9BrandAssociation
Customer first choice ismore pertinent
Customer canchange his or herchoice
10 Payment Instantaneous Payment
More focus onFinance &Installment
11Post-SalesFollow UP More Very Less
12BuyingProcedure
Customer can wait fornew model Instant buying
13 Database Large Few
14BrandTransition Single-Tier Multi-Tier
15 Advertisement
Parent Company &dealer both giveadvertisement
Only from ParentCompany
16LoyalityPrograms Yes No
17
CustomerSatisfactionIndex
Well- Defined &Organized None
18 Promotion Free Service Camps None
19CustomerRetention More Very Less
20 Maintenance
Only free service whichcustomer can extendupto 4 years(first 2yr are
free)
Annual Maintenance
Contract (AMC)
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MARUTI CULTURE
Their employees are their greatest strength and asset. It is this underlying philosophy
that has moulded their workforce into a team with common goals and objectives.
Their Employee-Management relationship is therefore characterized by:
Participative Management.
Team work & Kaizen.
Communication and information sharing.
Open office culture for easy accessibility
To implement this philosophy, they have taken several measures like a flat
organizational structure. There are only three levels of responsibilities ranging from
the Board Of Directors, Division Heads to Department Heads. Other visible features
of this philosophy are an open office, common uniforms (at all levels), and a
common canteen for all.
The company is listed on Bombay Stock Exchange and National Stock Exchange.
MUL is a Board-managed company. Currently the directors on the Board are:
Mr Shinzo Nakanishi, Chairman
Mr Jagdish Khattar, Managing Director
Mr Hirofumi Nagao, Joint Managing Director
Mr Shinichi Takeuchi, Joint Managing Director
Mr Kinji Saito, Director (Marketing and Sales)
Mr Osamu Suzuki, Director
Mr R C Bhargava, Director
Mr S V Bhave, Director
Mr Kumar Mangalam Birla, Director
Mr Amal Ganguli, Director
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OBJECTIVE OF THE COMPANY
Marutis marketing objective is to continually offer the customer newproducts and services that:
Reduce the customers cost of ownership of their cars; and
anticipate and address the customers needs and preferences in all
aspects and stages of car ownership, to provide what they refer to as
the 360 degree customer experience.
They sell ten models with more than 50 variants in segments A, B, C, and
utility vehicle segment of the Indian passenger car market. Of these, they
manufacture nine models and import the Grand Vitara as a completely built
unit from Suzuki in Japan. Their models and variants are designed to address
the changing demands of the market and are periodically upgraded in
technology, styling and features. To take advantage of the brand recognition
associated with their products, they retain the brand name of the product
through various stages of product upgrades over time.
A Maruti 800
A OMNI
B Zen
B Wagon R
B Alto
C Esteem
C Baleno
C Versa
C SWIFT
Utility Vehicle GYPSY KING
Utility Vehicle GRAND VITARA
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WAGON R
MARUTI 800
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NEW ALTO
SWIFT
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RESEARCH METHODOLOGY
The nature of the project work has been exploratory as no hypothesis, is
taken to be tested. Though the conclusions drawn could be taken as the
hypothesis and further tested by the research work undertaken in the
relevant field. The reason for choosing the exploratory research design is
the fact the project report has been primarily based upon the secondary
sources of data and whose authenticity could be assured of.
The reluctance of the company's personnel in parting with much of
information led the project report to be based substantial ly on the
secondary source of data. The sources of data used in data collection are
the following:
Primary sources
In order to gather information about the various products, I personally
visited a number of retail markets and collected data pertaining to the
pr ices of the products of fered. The market visi ts were useful in knowing
the comparative prices and quality of the offered brands vis--vis the
competitive brands. Detail regarding the packaging of the products were
collected were collected and I also inquired about the various sales
promot ion schemes followed by the three companies .
By interviewing these retailers valuable information was collected. I
inquired from them about their marketing advertising and distribution
strategies.
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Secondary sources
Information was collected from secondary sources such as public libraries,
newspapers, business magazines.
Beside these the use of Internet was also made in collecting relevant
information. The data collected from the above mentioned sources has been
adequately structured and used at appropriate places in the report. This
part icular way of da ta collection was used because of its low cost (except
data collected through surfing the internet) and less time consumption.
The information gathered included:
Their annual reports (Procter & Gamble and Johnson and Johnson).
Pamphlets.
Posters.
Press clippings.
News re leases .
Newsletters.
Pictures.
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FINDINGS OF THE STUDY
PRICES OF MARUTI PRODUCTS
Car market leader Maruti Udyog Limited has announced a marginal increase in price
of certain models. The increase, which comes into effect from today, varies from
0.17 percent to 1.47 percent.
The price increase is due to rise in input costs and freight costs, which
increased following the rise in oil prices. In this phase, the company has
decided to pass on only a part of the increase in costs to the customers. There
is no change in the prices of Swift, Zen, Baleno (Vxi) and WagonR (Petrol).
Ex-Showroom Prices in Delhi (in Rs)
Model New Old IncreaseChang
e %M800 Std 191646 191146 500 0.26%M800 Std Ac 213062 212562 500 0.24%
Alto Std 231585 231085 500 0.22%Alto Lx 265262 264762 500 0.19%Alto Lxi 283878 283378 500 0.18%Omni Cargo LPG 194725 192725 2000 1.04%Omni Cargo 213706 213206 500 0.23%Omni (Eight Seater) 221268 220768 500 0.23%Omni LPG 230388 227388 3000 1.32%Esteem Lx 445968 444968 1000 0.22%Esteem Lxi 476223 475223 1000 0.21%Esteem Vxi 511520 510520 1000 0.20%
Baleno Lxi 576173 575173 1000 0.17%Versa Dx 433575 432575 1000 0.23%Versa Dx2 471779 470779 1000 0.21%Versa Std 360182 359182 1000 0.28%WagonR Lx LPG 345106 340106 5000 1.47%WagonR Lxi LPG 373160 368160 5000 1.36%
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ORGANISATION STRUCTURE AT MUL
Maruti Udyog ltd. Has a flat organisation structure with a maximum of three levels.
Head office
MD
MFG FIN OTHER
DIRECTOR N CONTROLLER GM DGMS AGMS
GM/ DGMS DGMS AGMS MGRS/AMS
MGRS/AMS MGRS/AM SR GM/EX
ENGINEERS(EX) SR. EX./EXTRAINEES
J.E. (TRAINEES)
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THE PRODUCTION PROCESS AT MARUTI
STEEL COILS
BLANKING
PRESSING
WELDING
PAINTING
ASSEMBLY
VEHICLEINSPECTION
TEST RUN
SUPPLY &DISPATCH
FROMVENDOR
S
FROMVENDORS
FROMVENDOR
S
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MARUTI ALL INDIA SALES 3 YR TREND
Segment 2006-07
Growth
2007-08 Growth
2008-09
Growth
A1 (Mini - Hatchback) 167,561
17% 116,262 -31% 89,223 -23%
A2 (Compact - Hatchback) 176,132
47% 271,280 54% 335,136 24%
A3 (Mid Size) 14,173 28% 29,637 109% 31,939 8%
A4/A5/A6(Exec./Prem./Luxury)
NA NA NA NA NA NA
C (Van Type) 59,526 15% 65,019 9% 66,366 2%
Passenger Cars - MUL 417,392
28% 482,198 16% 522,664
8%
Passenger Cars - TotalIndustry
758,123
26% 885,029 17% 948,669
7%
MUV (Utility Vehicles) 3,555 12% 5,204 46% 4,374 -16%
Passenger Vehicles - MUL 420,947
28% 487,402 16% 527,038
8%
Passenger Vehicles - TotalIndustry
901,150
24% 1,050,246
17% 1,129,316
8%
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MARKET SHARE
2005-06 Market Share-Segment A2
TATA
20%
HYUNDAI
21%MARUTI
59%
2005-06 Market Share-Segment A3
TATA
20%
FORD
14%
GM
6%HONDA
20%
OTHERS
7%
MARUTI
17%
HYUNDAI
16%
2005-06 Market Share-Passenger Cars
TOYOTA
1%
OTHERS
3%
FORD
3%
GM
1%
HONDA
4%
TATA
16%
MARUTI
55%
HYUNDAI
17%
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COMPETITION MODELS
SEGMENTMaruti Competition
A1 (Mini -Hatchback)
M800
A2 (Compact -Hatchback)
Zen, WagonR,Alto, Swift
Hyundai - Santro & Getz; Tata -Indica & Palio; GM - Corsa Sail
A3 (Mid Size) Esteem,Baleno
Hyundai - Accent; Tata - Indigo &Petra; Honda - City; GM - Corsa,
Optra, & Aveo; Ford - Ikon,Fusion, & Fiesta
A4/A5/A6
(Exec./Prem./Luxury)
Hyundai - Elantra & Sonata;
Honda - Accord; GM - Vectra; Ford- Mondeo; Skoda - Octavia &
Superb; Toyota - Corolla & Camry;Daimler Chrysler - C,E, & S Class;
C (Van Type) Omni, VersaMUV (Utility
Vehicles)Gypsy, Grand
VitaraMitsubishi - Pajero; Hyundai -Terracan & Tucson; Ford -Endeavor; Toyota - Prado &
Innova; Nissan - X Trail; Honda -CRV; GM - Forrester & Tavera;
Tata - Sumo & Safari; Mahindra -Jeeps, Scorpio, & Bolero
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-
COMPETITIVE STRENGTHS
MUL believes that they are well positioned to maintain and enhance their leadership
position in the small car segment in India, while continuing to offer products in most
segments of the Indian market, on account of their competitive strengths, which
include the following:
Expertise in small car technology: As a subsidiary of Suzuki, they have
access to globally respected technology in the small car segment. They have
the advantage of Suzukis expertise in all aspects of small car technology and
design, with respect to their products, their manufacturing processes and
business practices, the development of their supply chain and the training of
their personnel.
Extensive product portfolio: Their diverse product range includes cars in
segments A, B and C, and utility vehicles. They manufactured five out of the
ten models that were sold in the combined A and B segments in India in fiscal
2002. They are the only manufacturer of cars in segment A (priced below
Rs.300,000) where they have two models, the Maruti 800 and the Omni. The
Maruti 800 has been the largest selling car in India for several years, and
continued to have the highest sales volumes of any model, with a market share
of 25.3%. The Omni, a versatile vehicle that can seat more passengers than
the Maruti 800 or be used as an ambulance or cargo vehicle, had a market
share of 10.5% in fiscal 2002. They are also the only manufacturer to sell
three distinct models, the Zen, the Alto and the Wagon R, in segment B
(priced between Rs.300,000 and Rs.500,000). They believe that
theirdominance in segment A and extensive product range in segment B
enables us to offer the customer a wider choice in the small car segment than
any of their competitors. In addition, the absence of other manufacturers in
segments A gives their dealers greater flexibility in promoting models in
segment B.
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Quality products: In November 2001, they were one of the first automobile
manufacturers in the world to receive the ISO 9001:2000 certification. They
began to export products in 1988, primarily in order to benchmark our
products against international quality standards. They have exported products
to approximately 70 countries, including countries in Western Europe. Their
products for export are manufactured using the same assembly line as our
products for the domestic market.
Extensive sales and service network: They believe that they have the largest
network of dealers and service centers amongst car manufacturers in India. As
of March 31, 2003, we had 178 authorized dealers with 243 sales outlets in
161 cities. They estimate their car parc to be in excess of 3.5 million vehicles.
To service this car parc, at March 31, 2003, they had 342 dealer workshops
and 1,545 Maruti Authorized Service Stations, or MASSs, which covered 898
cities in India backed by Express Service Centers on 30 highways across the
country. In addition to the distribution of their cars, their dealership network
is a critical resource in our efforts to provide customers with a one-stop
shop for automobiles and automobile related products and services such as
automobile finance, automobile insurance, Maruti-certified pre-owned cars
available for purchase, and leasing and fleet management, in order topromote
customer loyalty.
Brand strength: They have been present in the Indian market for almost
twenty years and have built their brand on the basis of the values of trust and
reliability. Most of their principal competitors have been present in the Indian
passenger car market for a significantly shorter period. Certain manufacturers
have ceased to manufacture certain products shortly after introducing them, or
have left the market altogether. In contrast, they continue to support the
maintenance of their products. NFO Automotives 2002 Total Customer
Satisfaction Survey ranked Maruti products as No. 1 in the Economy,
Premium Compact and Entry Midsize segments respectively, for 2002.
Integrated manufacturing facility: Their manufacturing facility comprises
three integrated plants with flexible assembly lines located at Gurgaon in the
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northern state of Haryana. Their facility has advanced engineering capability
and each plant is upgraded on an ongoing basis to improve productivity and
quality.
Strong vendor base and higher rates of localization: They work closely
with their vendor base for the supply of raw materials, components and spare
parts of their products. In order to improve quality and generate economies of
scale, they have reduced the number of their vendors of components in India
from 370 as of March 31, 2000 to 299 as of March 31, 2003, and intend to
continue to reduce the number of our vendors. 113 of their vendors at March
31, 2003 were in technical collaboration with foreign entities. As of the same
date, we had strategic equity interests through joint venture agreements in 13
of their vendors, who together supply a substantial portion of their purchases
of components. A number of their vendors are their dedicated suppliers in that
they account for a majority of their turnover.
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THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY
Hyundai Motor India Ltd
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai
Motor Company, South Korea and is the second largest and the fastest growing car
manufacturer in India. HMIL presently markets 31 variants of passenger cars in six
segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C
segment, the Elantra in the D segment, the Sonata Embera in the E segment and the
Tucson and Terracan in the SUV segment.
The company recorded combined sales of 252,851 during calendar year 2005 with a
growth of 17.26% over year 2004. HMIL is India's fastest growing car company
having rolled-out over 970,000 cars in just over 80 months since its inception and is
the largest exporter of passenger cars with exports of over Rs. 1,800 crores. HMIL
has recorded a growth of 27.2% in exports over the year 2004.
HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts
some of the most advanced production, quality and testing capabilities in the
country. In continuation of its investment in providing the Indian customer global
technology, HMIL has announced plans for its second plant, which will produce
300,000 units per annum, raising HMILs total production capacity to 600,000 per
annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to
the existing facility .HMIL is investing to expand capacity in line with its
positioning as HMCs global export hub for compact cars. Apart from expansion of
production capacity, HMIL plans to expand its dealer network, which will be
increased from 157 to 200 this year. And with the companys greater focus on the
quality of its after-sales service, HMILs service network will be expanded to over
1,000 in 2006.
Propelled by the strong performance in year 2005, Hyundai Motor India is on the
threshold of yet another grand milestone of rolling out its One millionth car which
is expected soon.
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Tata Motors
Tata Motors is one of the largest companies in the Tata Group with a total
income of US$ 2.35 billion. More than 3 million Tata vehicles ply on Indian
roads making Tata a dominant force in the Indian automobile industry.
Tata Motors is India's only fully integrated automobile manufacturer with a
portfolio that covers trucks, buses, utility vehicles and passenger cars. It
would be no exaggeration to say that Tata Motors provides the wheels for
India's growth.
Tata Motors has the unique distinction of giving India its first and only indigenously
built passenger car - The Tata Indica and the premium feature sedan - The Tata
Indigo. The Indica, launched in 1998, reached the 2,50,000 sales mark within 52
months of launch.
Mode of Communication
They reach to customers by giving advertisements in the T.V. or through radio,
through wall painting, or through promotional activities like weakly haats, mela or
local bazaars and most importantly, their policies were flexible and they could
adapt to fast changing marketing situations.
Through Internet, E-mail usage, communication media like telephone and mail facility
this mode of communication is possible to a great extent. ITCs extensive India-
wide distribution network enables its greeting cards reach over 12,000 multi brand
outlets in over 700 cities across the country. In the last three years, 10,000 greeting
card designs have reached these outlets with the help of ITC's web-enabled e-
commerce model Communication Model ITC markets
Opportunity
These days consumers are looking for convenience and instant gratification.
Communication media like the telephone and e-mail facilitate communication to a
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great extent. But many greeting card sites are moving from a 'free' to a 'pay' mode.
This could be an emerging revenue earning opportunity for content providers.
Threats
'Expressions' which is a competitor of ITC in this segment is currently the second
biggest greeting card brand in India with a market share of 20 per cent. ITC has a
five per cent share in the stationery market. The greeting card market in India is
estimated to be around Rs. 250 crore in terms of yearly consumer spent. The
unorganized sector in the greeting card market will be close to 40 per cent. The
organized sector, controlling 60 per cent of the market, is divided between ITC,
Archies and Hallmark. While Archies has licensing agreements with international
greetings brands
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FINDINGS FROM SURVEY
Total Number of Respondents: 15 Officials
Number of RespondentsMaruti Udyog Limited 5Hyundai Motors India Ltd 2General Motors 2Tata Motors 5Ford India Limited 1
Do you face problems in maintaining good and effectiverelationships with customers?
QuiteFrequently
Frequently Average Rarely
Maruti UdyogLimited
2 3 - -
Hyundai Motors
India Ltd
- 2 - -
General Motors - 2 - -Tata Motors 3 2 - -Ford IndiaLimited
- 1 - -
Quite
Frequently
33%
Frequently
67%
Average
0%Rarely
0%
Findings: According to the responses of the respondents it can be concluded that all
the respondents face problems in maintaining good and effective relationships with
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customers. With changing customer needs its quite obvious that maintaining good
relations with customers need an effort on part of the Dealers and Manufacturers.
How well can your company identify its end usercustomers?
Maruti Udyog Limited: According to the officials of MUL, the companys
endeavor is to be close to the customer, to anticipate and fulfill their
needs. They believe that the new business initiatives taken by MUL have
expanded the scope of this relationship. Maruti offers auto insurance, auto
finance, corporate lease and fleet management and resale of pre-owned
cars in partnership with its dealers. For the first time, car customers in
India are able to access these services through a one-stop shop, backed by
the leader brand. The way they look at it is that this will provide complete
mobility solutions to the Maruti customer. This also enables them to
extend their relationship with the customer beyond the point ofpurchase
to the entire ownership life cycle. Since these services play a vital role in
the car customer's ownership experience, the new initiatives enable them
to offer Maruti owners greater value, assurance and convenience.
Hyundai Motors India Ltd: According to the officials of
Hyundai Motor India is at a very exciting stage in India
today. They are experiencing tremendous growth - which is
a true sign of enjoying customer confidence. In order to
strengthen their position further in the Indian market, they
need to continuously work on building their corporate
reputation while aggressively positioning their products. For
HMI's focus and commitment to the Indian automobile
customers is of critical importance. Its been their continuous
endeavor to fulfill the entire spectrum of customer needs
and desires, across all socio-economic & lifestyle groups.
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Can your company differentiate its customersbased on their value to you and their needs from
you? Yes NoMaruti UdyogLimited
5 -
Hyundai MotorsIndia Ltd
2 -
General Motors 2 -Tata Motors 5 -Ford India Limited 1 -
Yes100%
No
0%
Findings: According to the respondents (officials) at all the Five Automobile Majors
their company was able to differentiate its customers based on their value to them
and their needs from the company. This is important for the automobile industry
because the dynamics of selling cars is changing and manufacturers and dealers who
fail to meet the rising needs and expectations of their customers will lose out to
those who can. Buying a new car is an experiencecustomer will remember for a
long time and ensuring that this experience is a satisfactory one is essential in
building brand loyalty and customer advocacy.
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How well does your company customize its products and services
based on what it knows about its customers?
HighlyCustomer
centric
SomewhatCustomer
centric
Not Customercentric
Maruti UdyogLimited
5 - -
HyundaiMotors IndiaLtd
2 - -
GeneralMotors
2 - -
Tata Motors 5 - -
Ford IndiaLimited
1 - -
Highly Customer
centric
100%
Somewhat
Customer centric
0%
Not Customer
centric
0%
Findings: All the officials of the Automobile Majors agree that all products
and services are highly customer centric and based on the information they
know about the customers.
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Limitations of the Study
Since the road to improvement is never ending, so this study also suffers from
certain limitations. Some of them are as follows:
Because of illiteracy, it was a time consuming method in which
continuous guidance was required.
Questionnaire method involves some uncertainty of response.
Co-operation on the part of informants, in some cases, was difficult to
presume.
It is possible that the information supplied by the informants
may be incorrect. So, the study may lack accuracy.
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CONCLUSION
The price of a car is just one-third of what it cost you over its lifetime. Running and
maintaining it make up the other two-thirds. Take into account resale value and its
real cost becomes clear. Maruti Suzuki stands for value as much as it stands for
performance. In spite of rising input costs, we try our best to keep prices down.
Their running costs and resale values are unbeatable too. Nothing matches the
delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki
owners stated that they would definitely recommend the car they drive to someoneelse. Infact, you dont buy a Maruti Suzuki. You invest in it.
After the rash of new cars launches the past two years, the relative lull in the auto
industry is showing up in the customer satisfaction indices. According to the 2005
four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist
division of TNS Automotive, the automobile ownership experience or customer
ownership experience has declined in all areas compared to 2004. The study is one
of the largest syndicated automotive studies in India, representing the responses of
more than 7,000 new car buyers. The comprehensive study covers over 50 models
with customer evaluations taken in the key areas of sales satisfaction, product
quality, vehicle performance and design, after-sales service, brand image, and cost-
of-ownership. The TCS index score provides a measure of satisfaction and loyalty a
given model enjoys with its customers. According to TNS Automotive, the decline
is predominantly for older, small and entry mid-size car models. The ageing of these
models seems to be posing a stiffer challenge for manufacturers to sustain past
performance levels at a time when customer expectations are rising sharply.
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BIBLIOGRAPHY
Reference Books, Journals, Newspaper, Web Sites, Reports, etc are to belisted, out here
Books
Kotler Philips, Marketing Management Analysis, PlanningImplementation & Control Edition 1998. Prentice hall of India Ltd.
New Delhi
Magazines Jourals & Newapaper
Name of the articles, Business Today: 15-22May 2000
Name of the articles, The times of India . Mumbai: 21st May 2000
www.google.com
www.yahoo.com
www.maruti.com
http://www.google.com/http://www.yahoo.com/http://www.maruti.com/http://www.google.com/http://www.yahoo.com/http://www.maruti.com/7/29/2019 maruti suzuki limited
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ACKNOWLEDGEMENTS
I owe my sincere thanks and gratitude to Mr.
RAHUL SHARMA (Lecturer of IMEC Sagar) who
inspired me by his able guidance and was a
constant guiding light during the course of project
study.
The support and knowledge provided by
him has been a great value addition for me and
will go a long way in building a promising
career.
Last but not least, I am also thankful to all the
respondents of my survey without whom the
project would not have been completed
successfully.
(NITIN SAINI)
M.B.A. 1ST SEM.
IMEC College Sagar
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PREFACE
The student of M.B.A. 1st Year has to
undergo Project Report as a part of their academic
Course. The COMPANY PROFILE OF MARUTI
SUZUKI,, is a part of this training. The main
purpose of undergoing such a searching is to
know the customer satisfaction in Maruti
company.
This report is preferred as the COMPANY
PROFILE OF MARUTI SUZUKI,, The report was
conduct of the Maruti Company website. This
report presents the introduction of managementprofile of Maruti Company along with limitation,
suggestion.
I have prepared my report honestly & tried
my level best to cover all the aspect regarding
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the company. All the information is on the basis
of the secondary data available
NITIN SAINI
MBA 1st SEM.
DECLARATION BY THE CANDIDATEDECLARATION BY THE CANDIDATE
Date.
I declare that the Project report titled
COMPANY PROFILE OF MARUTI SUZUKI,,is
my own work conducted under the
Supervision of Mr. Rahul Sharma,
Department of Business Management,
IMEC College, Affiliated by Dr. Hari Singh
Gour University Sagar.
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To the best of my knowledge thereport does not contain any work, which
has been submitted for the award of any
degree, anywhere.
Signature of Candidate
Nitin Saini
M.B.A. 1st Sem.
CERTIFICATE
DATE: __________
The project report titled COMPANY
PROFILE OF MARUTI SUZUKI,,in Sagar City
Prepared by NITIN SAINI, under the guidance and
supervision of MR. RAHUL SHARMA (Lecturer OF
M.B.A. Deptt., IMEC Sagar) for the partial fulfillment
of the degree of Master of Business Administration
is satisfactory in respect of :-
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Comments By Supervisor Head of Deptt.
Examiner
1. Contents and presentation
of the subject matter
2. Language
3. Embodies the original work
of the candidate.
4. Submission within due date
Signature of Examiner Signature of
Supervisor
Signature of H.O.D.
CUSTOMERS QUESTIONNAIRS
NAME : --------------------------------------------------------------------------
AGE : -
SEX : ----------------------- OCCUPATION :
------------------------------------------
1. Which company four wheeler do you use?
a. Hyundai b. M & M c. Maruti d. others
2. Which Maruti Wheelers do you use?
a. Alto b. Wagnor c. Maruti 800 d.
others
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3. What do you think about the price of product?
a. High b. Low c. Reasonable
4. How did you come to know about this brand?
a. Newspaper b. Magazine c. T.V. d.
Hoardings
5. What criteria you see when you purchase Maruti Cars?
a. Brand Name b. Price c. Quality d. Others
6. Do you feel Maruti Cars price Economic? Yes/ No. &
Why?-------------------------------------------------------------------------------
-------------------------------
7. If you purchase any other Four Wheeler which one will you
buy?
--------------------------------------------------------------------------------------
-------
8.. Do you have any complaints? Yes / No
--------------------------------------------------------------------------------------
------------------------------------------------9. Which facet of product should be focused more whether
product quality, Price, Advertisement.
--------------------------------------------------------------------------------------
-------
10. Any Suggestion
--------------------------------------------------------------------------------------
---------------------------------------------------------------------------
Date: Signature
Thanks for you co-operation & valuable time
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CONTENTS
Acknowledgement Certificate
Declaration by the candidate
Preface
Company profile
Products
Marketing strategy of Maruti Suzuki
Objectives
Research methodology
Data analysis & interpretation
Findings
Limitation
Suggestion
Conclusion
Bibliography
Questionnaire
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