CHAPTER I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

Marketing, more than any other business functions deals with customers. Creating
customer value and satisfaction are the heart of modern marketing thinking and practice.
Marketing is the delivery of customers by promising superior value and to keep current
customers by delivering satisfaction.
The American marketing association has defined marketing, as Marketing is the
performance of business activities that direct the flow of goods and services from producer to
consumer or user.
In the words of Cundiff and Still Marketing is the term used to describe collectively
those business functions most directly concerned with the demand stimulating and demand-
fulfilling activities of the business enterprise.
Marketing as business authorities conceive it today is aboard function of business
composed of many elements.
Following are the various activities that a marketer follows
Identifying specific markets for products and services;
Identifying existing and future needs and wants of these markets;
Guiding the development of products, packages and services to fill these needs at a profit,
and Selling, delivering and collecting for, and effecting legal transfer of these goods services to
the ultimate consumer or user.
The key work in the above definition is systematic. This is the difference between
research and haphazard gathering of findings. For a study/research to be systematic there must be
two qualities in the least. First, it should be orderly so that the measurements have accuracy and
there is a fair cross-section. Second, it should be implemented in analysis and interpretation.
Now for a research to be systematic it should be planned in advance. Moreover to complete it, it
should be interpreted. We thus arrive at a definition of marketing research;marketing research is the
planning of and systematic gathering, recording, analysis and interpreting data about problems (or
opportunities) relating to the marketing of goods and services.
1.2 OBJECTIVES OF THE STUDY

The study has been conducted in Coimbatore and the respondents chosen randomly the
sample size has been limited to 100.
To know about Customer Satisfaction of Maruti Suzuki Cars.
To know about the Customer Satisfaction on Performance of Dealer.
To know about the dealer renders after sales service, and if he, how far the customers
are satisfied with services rendered by dealer.
To know about the factors that influences the customer.
To know the whether Maruti Suzuki Cars performance matching with the customer
expectations.

1.3 SCOPE OF THE STUDY

The Sample Size is Limited, So as to give the accurate information regarding Customer
Satisfaction.
The scope is very limited, because attitude & expectations of the people change
according to the time & situation.
The study is restricted to Coimbatore and that to among 100 respondents.
The study is conducted only for 60 days.
Consistency was lacking with regard to the information given by few customers.
The study is restricted to the certain area, so it could not give whole picture
about India.
1.4 RESEARCH METHODOLOGY

Research methodology is the way to systematically solve the research problem. It may be
understood as a science studying how research is done scientifically and the step that are
generally adopted by a researcher for studying his/her research problem along with logic behind
them. Research methodology result in using research method through which solutions are arrived
for the research.

RESEARCH DESIGN:

A research design is a statement or specification of the method and producers used for
acquiring the information needed for the solution of some specific problems. It provides a
scientific frame work for conducting a research.

SOURCE OF DATA

1. Primary data
2. Secondary data

Primary Data

Primary data is collected with help of questionnaires. Questionnaire method is adopted in

this study to solve the problem.

Secondary Data

Secondary data is collected through websites, books and other published sources.

RESEARCH DESIGN

This research design is exploratory type on the study of Customer Satisfaction towards
Maruti Suzuki.

SAMPLE DESIGN

In this project convenience sampling technique has been undertaken.

SAMPLE SIZE

The total sample size is 100 respondents. They have selected from the Coimbatore city.

1.5 LIMITATIONS OF THE STUDY

Due to the following unavoidable and uncontrollable factors the results might not be
accurate. Some of the problems might face while conducting the survey are as follows:

Certain open-ended questions have been put in the questionnaire to give

respondents freedom to express their perception.

Time and cost constraints were also there

Chances of some biasness couldnt be eliminated.

A sample size of 100 has been used due to time limitations.

The data has been collected from Coimbatore and there the perception of the
people from the smaller towns could not be judged

Al the data has been collected at random but it is always liable fro biasness.

The primary data has been collected from the middle and upper section of the
society.

STATISTICAL TOOLS

The tabulation data was formulated using the statistical tools by simple percentage
method and chi square method

Method of Data Interpretation

Formula for simple percentage analysis

Number of respondents for particular factor

= X 100
Total number of respondents
Chi- Square

A chi-square test is a measurement of how expectations compared to results. The data

used in the calculating chi-square test must be random, raw, mutually exclusive, drawn
from independent variables and be drawn from a large enough samples. A chi-square test
can then be used to reject the hypothesis that the data are independent.
2
Chi-square ( ) equation is expressed as,

(OE)2
2
= E

Where, O = Observations

R ow Totals C olumnTotals
E = Expected Frequency = Grand Total

1.6 CHAPTER SCHEME

CHAPTER 1: Deals with Introduction and Design of the Study

CHAPTER 2: Deals with Review of Literature
CHAPTER 3: deals with the Profile of the Company
CHAPTER 4: Deals with Analysis and Interpretation of the Data
CHAPTER 5:Deals with Findings and Suggestion and Conclusion
 CHAPTER-II

REVIEW OF LITERATURE
2.1 Introduction

Review of literature is necessary as it familiarizes the researcher with concepts and

conclusions already evolved by earlier analysts. It also enables the present researcher to measure the
scope for future study and to frame appropriate objectives for the proposed evaluation. Since the
proposed study is to analyse the gap between expectations and perceptions in service quality, the
previous studies made in this area of research are briefly reviewed. It also includes the opinions
expressed by various authors in leading articles, journals and books.

DrS.Saravanan and DrS.SilasSargunam (2015) says it is treated with restrain. Categories of

vehicles were limited to three passenger cars namely Maruti Suzuki, Hindustan and Standard. Slowly
foreign collaborations were permitted with equity participation in 1968. In 1980s a series of liberal
policy changes were rapidly introduced marking a crucial turning point for the automobile industry.

U. Thiripurasundari(2014) says brand equity is the added value endowed by the brand to
the Product. Although the idea of using a name or a symbol to enhance a products value has been
known to marketers for a long time, brand equity has gained a renewed interest in recent years. The
objectives of the study were to analyse the importance of various factors like brand knowledge, brand
preference, brand loyalty, brand application etc.

Prof. Pallawi B. Sangode (2013) says this research paper is based on the findings of
comparative study of service quality of Maruti Suzuki in Coimbatore. Service quality is a
fundamental aspect of service provision, and this is especially the case with motor vehicles, where
substantial profits are generated in the servicing of vehicles.
 DrAjoy S Joseph (2012) says One of the most important factors that influence purchase of
passenger cars in India is the availability of auto finance or consumer credit. This empirical study
analyses the behavioural pattern exhibited by passenger car customers towards auto loan schemes
and Financiers when they purchase their cars.

Nitin Joshi1, D. P. Mishra 1 (2011) says the aim of the study is to understand the
behaviour of the customer in the State of Maharashtra which is one of the most developed states
of India. The study was carried out to understand the customer awareness on environment
friendly car (EFC). The objective of the study is to understand the awareness levels and create
awareness of the EFC so that the efforts of the manufacturing the green car will be achieved.
SPSS version 17.0 has been used for analysis of the data. Five hundred respondents have been
asked to fill in a questionnaire. The study has been done keeping in mind age group and the
geographical area of the respondents. With reference to the age group, it is observed that there is
no significant difference in the awareness levels but with reference to the geography, it is
observed that there is a significant difference in the awareness levels with reference to the EFC.

Prof. Pallawi B. Sangode (2011) says this research paper is based on the findings of
comparative study of service quality of Maruti Suzuki and Hyundai Showrooms in Nagpur.
Service quality is a fundamental aspect of service provision, and this is especially the case with
motor vehicles, where substantial profits are generated in the servicing of vehicles. The study
was conducted using a convenience sample of forty respondents who were owners of Maruti and
Hyundai cars. The questionnaire was a self-completion questionnaire consisting of 26 questions.

AsgharAfsharJahanshahi (2010) says in this research, the author addresses the following
questions that are becoming increasingly important to managers in automotive industries: is there a
relationship between customer service and product quality with customer satisfaction and loyalty in
the context of the Indian automotive industry? If yes, how is the relationship between these four
variables? The automotive industry in India is one of the largest in the world and one of the fast
growing globally.
 Dr S. Subadra(2009) says in recent days India is witnessing a change in consumerism. The
market is now predominantly consumer-driven. The focus is shifting from product-based marketing
to need-based marketing. Consumer is given many options to decide. Passenger car segment is no
exception to this general trend.

P. Natarajan and U. Thiripurasundari(2008) says the findings of the study advised that the
consumers who possessed global car brands preferred their car brands due to factors such as global
presence, worldwide reputation and the quality of being imported. Consumers made favourable
perceptions on the country wherein they tend to associate factors such as superior quality, technical
advancements, modernization etc. to the country from which the brand had taken its origin.

Subramanian (2007) says this study has analysed customer expectations from an auto
industry. It has created a competitive pressure and enriched the industry with attitude, knowledge,
flexibility and speed for new challenges and changes. Processes are streamlined and automated, and
work teams are reorganised and redeployed for higher productivity on quality, delivery time and cost.

RajnishKatarne, and SatyendraSharma (2006) says the study was conducted using a
representative survey of respondents, the owners of one of the popular brand vehicles. In this paper,
satisfaction/dissatisfaction of the customer has been measured using standard statistical tools, and an
attempt has been made to find out reason(s) for dissatisfaction by applying.

DrV.K.Kaushik (2005) says this study is conducted in South West Haryana which consists
of Bhiwani and Mahendragarh districts. The study endeavour is to investigate empirically customers
preference towards a passenger car brand. Pre-purchase and post-purchase behaviour of the
customers were evaluated and factors influencing the customers were determined by Perceptual
mapping obtained from Multi-dimensional scaling.

Dr S. SakthivelRani (2004) says the profile of the Indian Passenger Car industry is very
different from what it is worldwide. Car industry is considered a luxury product.
 Nitin Joshi1, D. P. Mishra (2003) says the aim of the study is to understand the behaviour of
the customer in the State of Maharashtra which is one of the most developed states of India. The
study was carried out to understand the customer awareness on environment friendly car (EFC).

Chidambaram and Alfred (2002) says the study postulates that there are certain factors
which influence the brand preferences of customers. They believe that the brand name tells them
something about product quality, utility, and technology, and they prefer to purchase passenger cars
which offer high fuel efficiency, good quality, technology, and durability, and are priced reasonably.

Dr Mrs. J Jelsy Joseph and T Hemalatha(2001) says their study "Customer Relationship
Management in Passenger Car Industry" argues that after-sales services not only help in firms
coming close to the customer and build credibility for their service and commitment towards the
customer but also help improve mouth publicity and good will generated from such customer-
oriented efforts.

DrRenuVerma (2000) says according to the author in her article "A study of Tubeless Tyres
with Special Reference to Passenger Car Radial Tyres" states that the absence of a tube make a tyre
lighter in weight, thus it has less chance of vibrations, which means that it leads to a better fuel
saving. Even the rolling resistance in a tubeless radial is lower when compared to a tube type radial.
 CHAPTER III
PROFILE OF THE STUDY UNIT

3.1 HISTORY OF MARUTI SUZUKI

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a
subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company,
accounting for over 50 per cent of the domestic car market. Maruti Udyog Limited was
incorporated in 1981 under the provisions of Indian Companies Act 1956 and the government of
India selected Suzuki Motor Corporation as the joint venture partner for the company. In 1982 a
JV was signed between Government of India and Suzuki Motor Corporation. It was in 1983 that
the Indias first affordable car, Maruti 800, a 796 cc hatch back was launched as the company
went into production in a record time of 13 month.
More than half the number of cars sold in India wear a Maruti Suzuki badge. They are a
subsidiary of Suzuki Motor Corporation Japan. The company offer full range of cars from
entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and
sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
Since inception, the company has produced and sold over 7.5 million vehicles in India
and exported over 500,000 units to Europe and other countries.
They were born as a government company, with Suzuki as a minor partner, to make a
people's car for middle class India. Over the years, its product range has widened, ownership has
changed hands and the customer has evolved. What remains unchanged, then and now, is their
mission to motorise India. MSILs parent company, Suzuki Motor Corporation, has been a
global leader in mini and compact cars for three decades. Suzuki's technical superiority lies in its
ability to pack power and performance into a compact, lightweight engine that is clean and fuel
efficient. The same characteristics make their cars extremely relevant to Indian customers and
Indian conditions. Product quality, safety and cost consciousness are embedded into their
manufacturing process, which they have inherited from their parent company.

Right from inception, Maruti brought to India, a very simple yet powerful Japanese
philosophy 'smaller, fewer, lighter, shorter and neater' from the Japanese work culture they
imbibed simple practices like an open office, a common uniform and common canteen for
everyone from the Managing Director to the workman, daily morning exercise, and quality circle
teams.
Maruti Suzuki exports entrylevel 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. Interestingly with a brand new offering Astar, Maruti Suzuki is ready to
take on European markets. Maruti Suzuki sold 53,024 units during 200708. 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 .
3.2 PRODUCT RANGE
It offer full range of cars from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star,
Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.

Maruti Alto 800

Omni
 Gypsy

Zen Estilo

Wagon R
 Versa

A Star

Ritz

SX4

Dzire
 Grand Vitara

Ertiga

Celerio
3.3 MILESTONES
2014: Maruti Suzuki announces global debut of Celerio with revolutionary Auto Gear
Shift
2013: Maruti Suzuki introduces stylish Stingray
2012 :India's favourite car Maruti Suzuki Alto crosses the 20 Lakh sales mark
2011: Maruti Suzuki India unveiled its much awaited sportier and stylish car, the all new
'Swift'.
2011: On march 15, Maruti Suzuki India rolled out its 1 Crore (ten millionth) car.The
historic 1 Crore car, a Metallic Breeze Blue coloured WagonR VXi (Chassis No 243899)
rolled out from the Company's Gurgaon plant.
2010: Maruti Suzuki has been ranked India's most Trusted Brand in Automobile Sector by
India's leading Business newspaper The Economic Times.
2009 MSIL adopts voluntary fuel disclosure. First shipment of Astar leaves Mundra
Portjan 10.Astar bags, Zigwheelscar of the year awardAstar rated best small car of
the yearautocarUTVi.
2008 World Premiere of concept Astar at 9th Auto Expo, New Delhi.
 2007 Swift diesel launched. New car plant and the diesel engine facility commences
operations during 200607 at manesar,Haryana.SX4Luxury Sedan Launched with the tag
line Men are black. Maruti launches Grand Vitara.
2006J.D.Power Survey award for the sixth year. MSIL has changed its EMS from ISO
14001:1996 version to ISO 14001:2004 version w.e.f.1st july
2005 MSIL was recertified in 2005 as per ISO 14001:2004 standards.
2004 A new esteem launched second successful facelift by maruti engineers.
2003 Maruti gets listed on BSE and NSE.IPO(issue oversubscribed 11.2 times)New zen
launchedfirst facelift by maruti engineers.
2002 Divestment Suzuki Motor Corporation(SMC)acquires majority stake in
MUL.Maruti Finance & Insurance launched.
2001 Turn around with profits Rs104.5 crore.Four new businessTrue value, Insurance,
Finance. Maruti Versa launched.Maruti True Value launched.
2000 Maruti alto launched.First car company in India to launch call centre.IDTR
launched jointly with the Delhi government to promote safe driving habits.
3.4 ACHIEVEMENTS/ RECOGNITION
The company takes great pride in sharing that customers have rated Maruti Suzuki first
once again in Customer Satisfaction Survey conducted by independent body, J.D.Power
Asia Pacific. It is 9th time in a row.
Maruti Suzuki wins 'Golden Peacock EcoInnovation Award'
Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India For Ninth
Consecutive Year.
Maruti Suzuki becomes the first Indian car company to export half a million cars
Other Accolades
During 200910, the company, its products and services received reputed awards and
accolades instituted by independent expert groups, media houses and research agencies.
These Include
Rated as No. 1 in J D Power Sales Satisfaction Index
Hatchback of the year Ritz by Autocar
Car of the year Ritz by Business Motoring
 Manufacturer of the year by CNBC Overdrive
Ranked third amongst global car companies in the World's Most Reputed Company
Survey 2009
National Award for Excellence in Corporate Governance by ICSI

3.5 AFFILIATION WITH SUZUKI

In 1982, a license & Joint Venture Agreement (JVA) was signed between Maruti Udyog
Ltd. and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's
closed market, Maruti received the right to import 40,000 fully built-up Suzukis in the first two
years, and even after that the early goal was to use only 33% indigenous parts. This upset the
local manufacturers considerably. There were also some concerns that the Indian market was too
small to absorb the comparatively large production planned by Maruti Suzuki, with the
government even considering adjusting the petrol tax and lowering the excise duty in order to
boost sales. Finally, in 1983, the Maruti 800 was released. This 796 cc hatchback was based on
the SS80 Suzuki Alto and was Indias first affordable car. Initial product plan was 40% saloons,
and 60% Maruti Van. Local production commenced in December 1983. In 1984, the Maruti
Van with the same three-cylinder engine as the 800 was released and the installed capacity of the
plant in Gurgaon reached 40,000 units.

In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was launched.
In 1986, the original 800 was replaced by an all-new model of the 796 cc hatchback Suzuki
Alto and the 100,000th vehicle was produced by the company. In 1987, the company started
exporting to the West, when a lot of 500 cars were sent to Hungary. By 1988, the capacity of the
Gurgaon plant was increased to 100,000 units per annum.

Market liberalisation

In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was Indias first
contemporary sedan. By 1991, 65 percent of the components, for all vehicles produced, were
indigenized. After liberalization of the Indian economy in 1991, Suzuki increased its stake in
Maruti to 50 percent, making the company a 50-50 JV with the Government of India the other
stake holder.

In 1993, the Zen, a 993 cc, hatchback was launched and in 1994 the 1298 cc Esteem was
introduced. Maruti produced its 1 millionth vehicle since the commencement of production in
1994. Maruti's second plant was opened with annual capacity reaching 200,000 units. Maruti
launched a 24-hour emergency on-road vehicle service. In 1998, the new Maruti 800 was
released, the first change in design since 1986. Zen D, a 1527 cc diesel hatchback and Maruti's
first diesel vehicle and a redesigned Omni were introduced. The 1.6 litre Maruti Baleno three-
box saloon and Wagon R were also launched.

In 2000, Maruti became the first car company in India to launch a Call Center for internal
and customer services. The new Alto model was released. In 2001, Maruti True Value, selling
and buying used cars was launched. In October of the same year the Maruti Versa was launched.
In 2002, Esteem Diesel was introduced. Two new subsidiaries were also started: Maruti
Insurance Distributor Services and Maruti Insurance Brokers Limited. Suzuki Motor Corporation
increased its stake in Maruti to 54.2 percent.

In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the Wagon
R were upgraded and redesigned. The four millionth Maruti vehicle was built and they entered
into a partnership with the State Bank of India. Maruti Udyog Ltd was Listed on BSE and NSE
after a public issue, which was oversubscribed tenfold. In 2004, the Alto became India's
bestselling car overtaking the Maruti 800 after nearly two decades. The five-seater Versa 5-
seater, a new variant, was created while the Esteem was re-launched. Maruti Udyog closed the
financial year 2003-04 with an annual sale of 472,122 units, the highest ever since the company
began operations and the fiftieth lakh (5 millionth) car rolled out in April 2005. The 1.3 L Suzuki
Swift five-door hatchback was introduced in 2005.

In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles
India", to build two new manufacturing plants, one for vehicles and one for engines.Cleaner cars
were also introduced, with several new models meeting the new "Bharat Stage III" standards. In
February 2012, Maruti Suzuki sold its ten millionth vehicle in India. For the Month of July 2014,
it had a Market share of >45 %.

3.6 JOINT VENTURE RELATED ISSUES

Relationship between the Government of India, under the United Front (India) coalition
and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian
media until Suzuki Motor Corporation gained the controlling stake. This highly profitable joint
venture that had a near monopolistic trade in the Indian automobile market and the nature of the
partnership built up till then was the underlying reason for most issues. The success of the joint
venture led Suzuki to increase its equity from 26% to 40% in 1987, and to 50% in 1992, and
further to 56.21% as of 2013. In 1982, both the venture partners entered into an agreement to
nominate their candidate for the post of Managing Director and every Managing Director would
have a tenure of five years

3.7 MANUFACTURING FACILITIES

Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities
have a combined production capacity of 14,50,000 vehicles annually.

The Gurgaon manufacturing facility has three fully integrated manufacturing plants and
is spread over 300 acres (1.2 km2). The Gurgaon facilities also manufacture 240,000 K-
Series engines annually.

The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy,
Ertiga, Ritz and Eeco.

The Manesar manufacturing plant was inaugurated in February 2007 and is spread over
600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this
was increased to 300,000 vehicles annually in October 2008. The production capacity was
further increased by 250,000 vehicles taking total production capacity to 800,000 vehicles
annually. The Manesar Plant produces the A-star, Swift, Swift DZire, SX4, Vitara Brezza ,Ritz ,
Baleno and Celerio. On 25 June 2012, Haryana State Industries and Infrastructure Development
Corporation demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land
acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the
amount would lead to further proceedings and vacating the enhanced land acquisition. It plans to
set up a plant in Gujarat and has acquired 600 acres of land.

In 2012, the company decided to merge Suzuki Powertrain India Limited (SPIL) with
itself. SPIL was started as a JV by Suzuki Motor Corp. along with Maruti Suzuki. It has the
facilities available for manufacturing diesel engines and transmissions. The demand for
transmissions for all Maruti Suzuki cars is met by the production from SPIL.

3.8 INDUSTRIAL RELATIONS

Since its founding in 1983, Maruti Udyog Limited has experienced problems with its
labor force. The Indian labour it hired readily accepted Japanese work culture and the modern
manufacturing process. In 1997, there was a change in ownership, and Maruti became
predominantly government controlled. Shortly thereafter, conflict between the United Front
Government and Suzuki started. In 2000, a major industrial relations issue began and employees
of Maruti went on an indefinite strike, demanding among other things, major revisions to their
wages, incentives and pensions.

Employees used slowdown in October 2000, to press a revision to their incentive-linked

pay. In parallel, after elections and a new central government led by NDA alliance, India pursued
a disinvestment policy. Along with many other government owned companies, the new
administration proposed to sell part of its stake in Maruti Suzuki in a public offering. The
worker's union opposed this sell-off plan on the grounds that the company will lose a major
business advantage of being subsidised by the Government, and the union has better protection
while the company remains in control of the government.

The standoff between the union and the management continued through 2001. The management
refused union demands citing increased competition and lower margins. The central government
privatized Maruti in 2002 and Suzuki became the majority owner of Maruti Udyog Limited.