“Study on Customer Relationship

Management in MARUTI SUZUKI”

Submitted in partial fulfilment of the requirements
for
the award of the degree of

BACHELOR
OF BUSINESS ADMINISTRATION

To
Department of commerce and management
GGDSD College
Chandigarh

SUBMITTED TO: SUBMITTED BY:

Department of Commerce and Management Divay Goyal
GGDSD College BBA III (B)
Chandigarh. College Roll No.: 1623022
PU Roll No.: 14042001

1
 CERTIFICATE BY INSTITUTE GUIDE

This is to certify that the project entitled “Study on Customer Relationship

Management in Maruti Suzuki” submitted by Divay Goyal has been done
under my guidance and supervision in partial fulfillment of requirements of
degree of Bachelor of Business Administration.

The working analysis mentioned in this report has been undertaken by the
candidate himself and necessary reference has been recognized and
acknowledged in the text of the report.

Ms. Jyoti Jindal

(Project guide)

I
 STUDENT DECLARATION

This is to certify that I have completed my project titled “Study on Customer

Relationship Management in Maruti Suzuki” under the guidance of “Ms.
Jyoti Jindal” in partial fulfilment of the requirements for the award of degree
of Bachelor of Business Administration at Panjab University, Chandigarh.
This is an original piece of work and I have not submitted it earlier elsewhere.

Date: Signature:
Place: Name:

II
 ACKNOWLEDGEMENT

Every project big or small is successful largely due to the effort of a number of wonderful
people who have always given their valuable advice or lent a helping hand. I sincerely
appreciate the inspiration; support and guidance of all those people who have been
instrumental in completion of the project.

I take this opportunity to express my profound gratitude and deep regards to my guide Miss
Jyoti Jindal for her exemplary guidance, monitoring and constant encouragement for making
and completion of this project on the topic Study on Customer Relationship Management
in Maruti Suzuki.

I extend my gratitude to my college for giving me this opportunity. The blessing, help and
guidance given by him time to time shall carry me a long way in the journey of life on which

Secondly I would like thank my friends and family who have been instrumental in the
completion of the project.

Thank You all for the time and effort you bestowed upon me.

III
 TABLE OF CONTENTS

CHAPTER DESCRIPTION PAGE NO

CERTIFICATE............................................................................................... I

STUDENT DECLARATION……………………………………………….II

ACKNOWLEDGEMENT............................................................................III

REVIEW OF LITERATURE

CH-I INTRODUCTION ............................................................................................ 6

1.1OBJECTIVE OF STUDY. .......................................................................... 5

1.2RESEARCH METHODOLOGY ............................................................... 6
1.3LIMITATIONS OF STUDY ...................................................................... 9

CH-II INTRODUCTION OF THE COMAPANY ................................................. ..9

CH-III ANALYSIS AND INTERPRETATION OF DATA....................................11

CH-IV SWOT ANALYSIS......................................................................................... 41

CH-V RECOMMENDATIONS AND CONCLUSION ............................................ 43

CH-VI BIBLIOGRAPHY................................................................................................I
APPENDICES
REVIEW OF LITERATURE
The companies have changed themselves as customer-centric company. In other words, the present
requirement for success in the business is attributed firstly, to build the deep relationship with the
customer and secondly, by winning the buyers’ confidence on the company rather than concentrating
only on the sale of the products. Now it is confirmed that the customer retention is the main weapon
for the success in the business. Interacting with the customers frequently and keep them informed of
the work in progress are basic standards. Implementing innovative ideas like facilitating customers
with a customer lounge and providing express service for all jobs including body works enables the
right connect with the customer (M. Sathish, Customer Relationship Management In Car Service
Industry)

The concept of CRM has evolved over a period of time through a sequence of initiatives,

which have been directed towards improving business performance. In today's highly

competitive business world CRM can be considered as the ultimate solution for both

customers as well as organizations. CRM considers customers not as outsiders but as insiders

to the business and aims to build a long-term relationship with them. A high degree of

customer contact, commitment and services are therefore essential features of CRM. (Dr.

Ramakrishnan, CRM and 4 P’s of Marketing).

INTRODUCTION

DEFINITION OF CRM

Customer relationship management (CRM) is a term applied to processes implemented by a

company to handle their contact with their customers. CRM software is used to support these
processes, storing information on customers and prospective customers. Information in the
system can be accessed and entered by employees indifferent departments, such as sales,
marketing, customer service, training, professional development, performance management,
human resource development, and compensation. Details on any customer contacts can also
be stored in the system. The rationale behind this approach is to improve services provided
directly to customers and to use the information in the system for targeted marketing and
sales purposes.

CRM stands for Customer Relationship Management. The genesis of CRM lies in the
observation that one element in competitive advantage is the ability of companies to retain
customers. Companies have moved to implement a strategy of satisfying the customer so as
to optimize potential future earnings. This seems to be an especially valid approach
considering the current Internet focus of “your competitor is only a click away”.

Many companies have spent millions of dollars on SFA/ERP/CRM/eCRM solutions only to

see them fail miserably.

Gartner Group, the leading industry research group defines CRM as “a customer focused
business strategy designed to optimize profitability, revenue and customer satisfaction.”

The key word here is “strategy”. CRM is not a piece of software, nor is it any other type of
technical solution. Any company that sees the way to CRM as implementing a software
package will see their CRM project fail.

CRM is a philosophy for managing relationships with your customers; the software package
is a tool that you can use to reach your goals. You must define your CRM strategy before you
go shopping for a technical solution. Then you must see how the solution fits with your
strategy, and not how your strategy can be made to fit with the technical solution.

1|Page
WHY CRM SHOULD BE USED

In the commercial world the importance of retaining existing customers and expanding
business is paramount. The costs associated with finding new customers mean that every
existing customer could be important.

The more opportunities that a customer has to conduct business with your company the
better, and one way of achieving this is by opening up channels such as direct sales, online
sales, franchises, use of agents, etc. However, the more channels you have, the greater the
need to manage your interaction with your customer base.

Customer relationship management (CRM) helps businesses to gain an insight into the
behaviour of their customers and modify their business operations to ensure that customers
are served in the best possible way. In essence, CRM helps a business to recognize the value
of its customers and to capitalize on improved customer relations. The better you understand
your customers, the more responsive you can be to their needs.

CRM can be achieved by:

➢ finding out about your customers' purchasing habits, opinions and preferences

➢ Profiling individuals and groups to market more effectively and increase sales

➢ changing the way you operate to improve customer service and marketing

Benefiting from CRM is not just a question of buying the right software. You must also adapt
your business to the needs of your customers.

CRM (customer relationship management) is an information industry term for

methodologies, software, and usually Internet capabilities that help an enterprise manage
customer relationships in an organized way. For example, an enterprise might build a
database about its customers that described relationships in sufficient detail so that
management, salespeople, people providing service, and perhaps the customer directly could
access information, match customer needs with product plans and offerings, remind

2|Page
customers of service requirements, know what other products a customer had purchased, and
so forth.

BENEFITS OF CRM:

 Streamlined sales and marketing processes

 Higher sales productivity
 Added cross-selling and up-selling
 Improved service, loyalty, and retention
 Increased call center efficiency
 Higher close rates
 Better profiling and targeting
 Reduced expenses
 Increased market share
 Higher overall profitability
 Marginal costing

DRAWBACKS OF CRM:

Dramatic increases in revenue, higher rates of client satisfaction, and significant savings in
operating costs are some of the benefits to an enterprise. Proponents emphasize that
technology should be implemented only in the context of careful strategic and operational
planning. Implementations almost invariably fall short when one or more facets of this
prescription are ignored:

➢Poor planning: Initiatives can easily fail when efforts are limited to choosing and deploying
software, without an accompanying rationale, context, and support for the workforce. In other
instances, enterprises simply automate flawed client-facing processes rather than redesign
them according to best practices.

3|Page
➢ Poor integration: For many companies, integrations are piecemeal initiatives that address a
glaring need: improving a particular client-facing process or two or automating a favoured
sales or client support channel. Such “point solutions” offer little or no integration or
alignment with a company’s overall strategy. They offer a less than complete client view and
often lead to unsatisfactory user experiences.

➢Toward a solution: Experts advise organizations to recognize the immense value of

integrating their client-facing operations. In this view, internally-focused, department.

4|Page
OBJECTIVE OF STUDY

Some of the basic objectives are as follows:

 To study and understand various aspects of Customer relationship management at

MARUTI SUZUKI.
 To study the company’s procedures conducted by Maruti Suzuki for retaining their
customers.
 To study the current market trends in customer relationship management.
 To study the company’s efforts in maintaining and motivating the advisors for
building a new customer.

 To study the future aspects of Maruti Suzuki in respect of its customers.

 To know about the customer satisfaction level and increase customer satisfaction
level, and to know about that are they getting exactly what they want.

5|Page
RESEARCH METHODOLOGY

It is a way to systematically solve the research problem. Research methodology helps many
dimensions and scope is wide. When we talk about Research methodology, we not only talk
about research methods but also consider the logic behind the methods we use and explain
why we are using a particular method or technique and why we are not using the others so
that research results are capable of being evaluated either by research himself or by others.

There are four types of Research methodology which are as follows:

 Descriptive:

It is also called statistical research. The main goal of this type of research is to
describe the data and characteristics about what is being used. The idea behind this
type of research is to study frequencies, averages and other statistical calculations.
Although this research is highly accurate. This is mainly done when a research wants
to gain a better understanding of a topic.

 Explanatory:

This research is conducted in order to explain any behavior in the market. It could be
done through using precautionary, group discussions, interviews, random sampling
etc.

 Conclusive:

It is meant to provide information that is useful in research conclusions or decision

making. It tends to be quantitative in nature i.e., to say in the form of numbers that
can be quantify and summarized. It release on both secondary and primary data.
Purpose of it is to provide reliable or representative picture of population through the
use of value research instrument.

6|Page
 Exploratory:

It is conducted into an issue or problem where there are few or no earlier studies to refer
to focus is on going inside and formulate for later investigation. It is used to identify and
obtain information on a particular problem.

The research methodology for the present study has been adopted to reflect these realties
and help reach the logical conclusion in an objective and scientific manner.

The present study contemplated an exploratory research

DATA COLLECTION

It refers to collection of information for a research to succeed raw facts must be collected
in a form which helps in effective production of result and meeting the objective of study.

There are two types of data collection which are as follows:

 Primary data:

Data observed or collected directly from firsthand experience. This type of data is
collected by researcher directly from own observation and experience. There are many
method of collection of primary data:

1. Questionnaire

2. Interview

3. Observation

4. Group interview etc.

 Secondary data:

Secondary data that is already available and published .it could be

7|Page
 internal and external source of data. Internal source: which originates from the
specific field or area where research is carried out e.g. publish broachers, official
reports etc. This originates outside the field of study like books, periodicals, journals,
newspapers and the Internet.

There are many methods for collections of secondary data are:

1. Books

2. Magazines

3. Government company

4. Annual company report

The present study is based on secondary data

8|Page
 LIMITATIONS OF STUDY

The study could not be made that comprehensive due to time constraints. Some customers
feel uncomfortable to reveal some personal information relating to income etc. it might have
happened that some more essential information could have been collected.
Time constraint.
Biases and non-cooperation of the respondents.
Financial constraint.
Geographical selectivity in study limiting to Delhi city only.
People are not interested in giving personal opinion.

9|Page
 INTRODUCTION OF THE COMPANY
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 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

10 | P a g e
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 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

11 | P a g e
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.

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 Shareholder’s
Wealth; A pride of India”

Technological Advantage

12 | P a g e
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.

Milestones Achieved by Maruti Suzuki

13 | P a g e
2009

 MSIL adopts voluntary fuel disclosure

 A-Star bags, Zigwheels “Car of the Year”

 A-Star rated best car of the year - Autocar – UTVi

2008

 World premiere of concept A-Star at 9th Auto Expo, New Delhi

2005

 Number 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 win so many
times

 M800, WagonR and Swift topped their segments in the TNS Total Customer
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 for the 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

 Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC ( 2nd time
in a row)-Feb 05

 First Indian car manufacturer to reach 5 million vehicles sales

2004

 Business World ranks Maruti among top five most respected companies in India-Oct
04

14 | P a g e
  Maruti ranked among top ten (Rank7) greenest companies in India by Business Today
- Sep '04

 Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction 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 company

 Voted 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

1999

 MSM launched as model workshop in India; achieves highest CSI rating.

15 | P a g e
  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

1992-93

 Engineering Exports Promotion Council's award for export performance

1991-92

 Engineering Exports Promotion Council's award for export performance

16 | P a g e
 HISTORY OF MARUTI SUZUKI
Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a
subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car
market for over two and a half decades. The company has two manufacturing facilities
located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a
combined capability to produce over a 1.2 million (1,200,000) vehicles annually.

The company plans to expand its manufacturing capacity to 1.75 million by 2013. The
company offers a wide range of cars across different segments. It offers 15 brands and over
150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-
K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans
SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti
Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These
include Eeco, Alto, Estilo, Wagon R and Sx4 .

In fiscal 2014-15 Maruti Suzuki became the only Indian company to manufacture and sell
One Million cars in a year. Maruti Suzuki has employee strength over 8,500 (as at end
March 2015).

In 2010-11, the company sold over 1.27 Mnvehicles including 1,38,266units of exports. With
this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the
Indian passenger car market.

Maruti Suzuki's revenue has grown consistently over the years.

17 | P a g e
 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 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. 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 2015, 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
market leader in the world.

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
18 | P a g e
experience, best service delivery, best in-service experience, most user-friendly service and
best service initiation experience.

In fact, 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 probable recommend the same make of vehicle, while 90% owners would probable
repurchase the same make of vehicle.

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.

One Stop Shop

At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is
easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to
provide a single-window solution for all your car related needs.

19 | P a g e
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 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.

Lowest Cost of Ownership

To be really happy with the car one owns, it should be easy on the pocket to buy and to run-
which is why the cost of ownership is so important. And here again, a Maruti Suzuki is a
clear winner, as shown by the recent J.D.Power CSI study 2004. It is clear that a Maruti
Suzuki delights you even when you run it for years. The 6 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. They are proud to have the lowest cost of operation / km
(among petrol vehicles) - the top 5 models are all Maruti Suzuki models: Maruti 800, Alto,
Zen, Omni and Wagon R.

Employee Quality Measures

Kaizen is based on the concept of making incremental improvements in our products. It

incorporates a series of continuous small and simple improvements, which aim at involving
employees at all levels.

20 | P a g e
The Suggestion Scheme is based on the same principle. Under this scheme, employees are
encouraged to make suggestions for improvement in any area of our operation. Over 50,000
suggestions are received from employees every year.

Maruti has won the First place in "Excellence in Suggestion Scheme Contest 2003", which is
the 6th consecutive award won in as many years. This contest is organized by Indian
National Suggestion Schemes Association (INSSAN). Since 1998 Maruti has won this award
10 times.

"Quality Circles" are groups of five to eight members from a particular work area who work
as a team to identify priorities and solve work related problems in the area.

We believe that it is this unwavering commitment to quality that will lead to the further
growth of the organization as competition increases.

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

21 | P a g e
commitment to quality has ensured a consistently satisfying product and world-class sales
and after-sales services.

TS16949:2002 - A new feather was added recently in Maruti’s cap in the field of quality
when the Quality Management System of its Press Shop & associated functions (collectively
termed as Press Function) got certification for conformance to the requirements of
TS16949:2002 standard.

The need for TS certification of Press Function had its genesis in the prestigious project that
Maruti earned for the supply of stamped panels to General Motors India for one of its
forthcoming models.

As a part of Quality system requirements, GM requires all its suppliers to be certified to

either ISO TS 16949 or QS 9000.

These standards address Quality System requirements, which are particularly specific to the
automotive industry and requires an organization to be in compliance with ISO 9000 systems
as a basic requirement. However, whereas QS 9000 would become defunct and cease to exist
after Dec 2006, TS 16949 is going to be the standard of the future.

The TS 16949 standard, brought out by ISO in the year 1999, is an extension of the ISO
9001:2000 standard that prescribes Quality management system requirements that are
specifically applicable to the automotive industry.

TS 16949 has gained high popularity and almost all major automobile players across the
globe including GM, Ford, Daimler Chrysler, Nissan, Honda are embracing & promoting it.

22 | P a g e
 MARUTI CULTURE
Our employees are our greatest strength and asset. It is this underlying philosophy that has
moulded our workforce into a team with common goals and objectives. Our 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, we 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.

This structure ensures better communication and speedy decision making processes. It also
creates an environment that builds trust, transparency and a sense of belonging amongst
employees.

23 | P a g e
 ANALYSIS AND INTERPRETATION OF DATA

CRM IMPLEMENTED AT MARUTI

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

 Includes the methodologies, technology and capabilities that help an enterprise manage
customer relationships. The general purpose of CRM is to enable organizations to better
manage their customers through the introduction of reliable systems, processes and
procedures.

IMPLEMENTING CRM
 Customer Relationship Management is a corporate level strategy which focuses on
creating and maintaining lasting relationships with its customers. Although there are
several commercial CRM software packages on the market which support CRM strategy,
it is not a technology itself. Rather, a holistic change in an organization’s philosophy
which places emphasis on the customer.

 Management at MARUTI believes that a successful CRM strategy cannot be

implemented by simply installing and integrating a software package and will not happen
overnight. Changes must occur at all levels including policies and processes, front of
house customer service, employee training, marketing, systems and information
management; all aspects of the business must be reshaped to be customer driven.

To be effective, the CRM process has been integrated with end-to-end across marketing,
sales, and customer service.

24 | P a g e
In these competitive times the challenge is to keep inventing newer ways of doing things to
keep the customers in your fold. Over the last few years, the company strengthened the
existing practices and experimented with many new initiatives by way of kaizens (continuous
improvements) to delight its customers. These initiatives ranged from product design and
quality to network expansion, and included new service programs to meet unsaid needs of
customers. The company has retained its competitive edge by offering high quality products.
In the field, the products are supported by rapidly expanding networks. The company has
diverse networks for new cars, spares, service, and pre-owned cars and so on, and all of them
were in expansion mode last year to enable the company get closer to the customer.

Servicing customers 24X7..... 365 days....

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.
The company was first Car Company in India to launch a Call Centre in the year 2000.
The award mirrors the company's commitment towards "Customer
Obsession´.

Key Initiatives
Car pickup & delivery facility for women car owners.
Quote Unquote: "The study finds that vehicle pickup and delivery before and after service
has a strong impact on customer satisfaction. In particular, customers who say that their
vehicle was picked up from their doorstep before service and delivered to the same point after
service are notably more delighted with their after-sales service experience, compared with
customers who do not receive this service...."
Maruti also launched mission to promote safe driving habits jointly with Institute of Driving
Training and Research.It also launched μDil Se¶- a special program for Indians living abroad
or NRIs, to facilitate them to gift Maruti cars online to friends and relatives at home.
Online club μSwift Life¶ is made for all Swift owners.

Setting up "Express Service Bays" & "2 - Technician Bays"

As the name suggests the company set out to delight its customers by offering them faster car
service by introducing new concepts such as Express Service Bays & 2- Technicians Bays.
These are done for customers who are hard pressed for time.
25 | P a g e
Both the initiatives undertaken in this direction have helped improve customer interface and
also helped increase the productivity and capacity of existing workshops.

Mega Camps
The company aggressively conducts 'Mega Camps' throughout the country round the year.
Activities undertaken during a mega camp include complimentary car wash, AC & Pollution
check-up, oil and fuel top ups, wheel alignments etc.
Apart from mega camps workshop camps like A/C check-up camps, PUC and general check-
up camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of
customer connect initiatives.

Another unique initiative is the door step service facility through Maruti Mobile Support.
Maruti Mobile Support is a first of it's kind initiative and is expected not only to help the
company reach out customers in metro cities but also as a mean to reach semi urban /rural
areas where setting up of new workshop may not be viable

Car Safety device: Immobilizer

The company used technology to meet customer needs and even delight them. Following
feedback that the company's cars were more prone to theft owing to their resale value, the
company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars.

Complete car needs

The company's effort of providing all car-related needs -- from learning to drive a car at
Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the
existing car for a new one -- under one roof at dealerships also enhances customer
satisfaction.

26 | P a g e
 THE OBJECTIVES OF CRM AT MARUTI
 To Identify customer success factors

 To Create a customer-based culture

 To Adopt customer-based measures

 To Develop an end-to-end process to serve customers

 To Recommend what questions to ask to help a customer solve a problem

 To Recommend what to tell a customer with a complaint about a purchase

 To Track all aspects of selling to customers and prospects as well as customer

support.

Before implementing the CRM segment the management at MARUTI did a survey to identify
what profile aspects it feels are relevant to its business, such as what information it needs to
serve its customers, the customer's past financial history, the effects of the CRM segment and
what information is not useful. Being able to eliminate unwanted information is a large aspect
of implementing CRM systems.

27 | P a g e
 ARCHITECTURE OF CRM AT MARUTI

There are three parts of application architecture of CRM at maruti:

 Operational CRM - automation to the basic business processes (marketing, sales,

service)

 Analytical CRM - support to analyze customer behavior, implements business

intelligence alike technology

 Collaborative CRM - ensures the contact with customers (phone, email, fax, web, sms,
post, in person)

OPERATIONAL CRM
Operational CRM at Maruti includes customer contact (sales, marketing and service). Tasks
resulting from these processes are forwarded to employees responsible for them, as well as
the information necessary for carrying out the tasks and interfaces to back-end applications
are being provided and activities with customers are being documented for further reference.

Operational CRM provides the following benefits:

 Delivers personalized and efficient marketing, sales, and service through multi-channel
collaboration

 Enables a 360-degree view of the customer while you are interacting with them

 Sales people and service engineers can access complete history of all customer interaction
with the company, regardless of the touch point.

The operational part of CRM typically involves three general areas of business at Maruti:

28 | P a g e
SALES FORCE AUTOMATION (SFA)

 SFA automates the critical sales and sales force management functions of Maruti, i.e.,
lead/account management, contact management, quote management, forecasting,
sales administration, keeping track of customer preferences, buying habits, and
demographics, as well as performance management. SFA tools are designed to
improve field sales productivity. Key infrastructure requirements of SFA are mobile
synchronization and integrated product configuration.

CUSTOMER SERVICE AND SUPPORT (CSS)

 CSS at Maruti automates the service requests, complaints, product returns, and
information requests. The internal help desk and inbound call-center support for
customer inquiries have been evolved into the "customer interaction center" (CIC),
using multiple channels (Web, phone/fax, face-to-face, kiosk, etc). Key infrastructure
requirements of CSS include computer telephony integration (CTI) which provides
high volume processing capability, and reliability.

ENTERPRISE MARKETING AUTOMATION (EMA)

 EMA of the company provides information about the business environment, including
competitors of Maruti, industry trends, and macro environmental variables. It is the
execution side of campaign and lead management. The intent of EMA applications is
to improve marketing campaign efficiencies. Functions include demographic analysis,
variable segmentation, and predictive modeling occur on the analytical (Business
Intelligence) side.

 Integrated CRM software is often also known as "front office solutions." Of Maruti,
This is because they deal directly with the customer of the company.

 Maruti uses CRM software to store all of their customer's details. When a customer
calls at maruti, the system is used to retrieve and store information relevant to the
customer. By serving the customer quickly and efficiently, and also keeping all
information on a customer in one place, a the management at Maruti aims to make
cost savings, and also encourage new customer

29 | P a g e
 ANALYTICAL CRM

In analytical CRM, data gathered within operational CRM and/or other sources are analyzed
to segment customers or to identify potential to enhance client relationship. Customer
analysis typically leads to targeted campaigns to increase share of customer's wallet.
Examples of Campaigns directed towards customers are:

 Acquisition: Cross-sell, up-sell

 Retention: Retaining customers who leave due to maturity or attrition.

 Information: Providing timely and regular information to customers about Maruti.

 Modification: Altering details of the transactional nature of the customers'

relationship.

Analysis typically covers but is not limited to:

 Decision support: Dashboards, reporting, metrics, performance etc.

 Predictive modelling of customer attributes

 Strategy and research.

Analysis of Customer data relates to the following analyses:

 Campaign management and analysis

 Contact channel optimization

 Contact Optimization

 Customer Acquisition / Reactivation / Retention

 Customer Segmentation

 Customer Satisfaction Measurement / Increase

 Sales Coverage Optimization

 Fraud Detection and analysis

30 | P a g e
  Financial Forecasts

 Pricing Optimization

 Product Development

 Program Evaluation

 Risk Assessment and Management

Data collection and analysis is viewed as a continuing and iterative process. Ideally, business
decisions are refined over time, based on feedback from earlier analysis and decisions.
Therefore, a successful analytical CRM projects take advantage of a data warehouse to
provide suitable data.

COLLABORATIVE CRM
Collaborative CRM facilitates interactions with customers through all channels (personal,
letter, fax, phone, web, e-mail) and supports co-ordination of employee teams and channels.
It is a solution that brings people, processes and data together so company can better serve
and retain their customers.

Collaborative CRM provides the following benefits:

 Enables efficient productive customer interactions across all communications

channels

 Enables web collaboration to reduce customer service costs

 Integrates call centers enabling multi-channel personal customer interaction

 Integrates view of the customer while interaction at the transaction level

31 | P a g e
 NEED FOR CRM IN AUTOMOBILE INDUSTRY
The global automotive industry exhibits most of the characteristics of mature industries and
closely follows their business cycles. While vehicle industry sales have been strong for the
past several years, they have started to slow recently due to the current global economic
slowdown. Deteriorating economic conditions result in a drop in consumer confidence, which
quickly impacts automotive sales due to their big-ticket status and the relative low cost of
extending the life of an existing vehicle through maintenance and repair.

The advent of the Internet as a research tool (75 to 80 percent of auto consumers research
using the Internet) has shifted power to consumers, further increasing pressure on prices. At
the same time, government regulation and consumer demands for sophisticated features have
increased development, production, and marketing costs. Regional economic fluctuations
favor consolidation among car companies, suppliers, and retailers -resulting in fewer, larger
companies that have more complete product lines targeted at existing and new markets.
Consolidation has heightened competition in all vehicle segments. Low-cost manufacturers
are expanding beyond their home markets with entry level vehicles, traditional passenger car
manufacturers are expanding into the light truck markets, and luxury manufacturers are
moving down market with passenger cars and SUVs. As a result of these product and market
extensions, consumers find it difficult to exhibit brand loyalty because vehicles have unclear
brand identities, similar features, and comparable prices. In addition, an overpopulation of
dealers has resulted in local and regional competition among same make dealers. This further
reduces margins and damages the brand images the car companies spend large amounts of
money to build.

Relations between the car companies and their suppliers traditionally have been difficult. In
response to competitive pressure, suppliers have been forced by the car companies to provide
higher-quality components at constantly lower costs. The resulting decrease in margins and
the reduction in volume due to slowing sales have increased the pressure to consolidate and
forced some suppliers to the brink of bankruptcy. Dealers too have a long history of
adversarial relationships with the car companies. Independent entrepreneurs who view some
of the car companies with skepticism or serious mistrust, dealers believe that many
manufacturer-sponsored customer satisfaction programs are actually designed to force
smaller dealers out of business or to gain control of customer relationships that the retailers
believe they "own."

32 | P a g e
These difficult relationships have prevented car companies and dealers from maximizing the
lifetime value of their combined customers. There are few incentives or efficient methods for
dealers and car companies to share critical data, resulting in ineffective management of
product, service, and household information. In addition, consumers receive conflicting
marketing communications from the two groups, which results in reduced brand value.

Key Industry Pain Points

 Decreasing sales and market share - The long-term battle for market share
continues to intensify. In the mature automotive industry, where business cycles drive
sales fluctuations, market share is critical to survival. Consumers are less brand-loyal
than in the past, and every market segment has an increasing number of vehicle
choices. To increase sales and gain ground in the market share battle, companies must
improve their ability both to acquire first-time customers and to develop customer
loyalty to their current brands. To achieve these related objectives, companies must
set an aggressive goal -deliver the best customer experience in the automotive
industry.

 Difficult dealer relationships and a lack of dealer collaboration - As the consumer

's primary touch point ,the dealer network is a critical component of customer-facing
operations. Therefore, the integration of the dealer network is absolutely essential to
improving the quality of the customer experience. Only with an infrastructure that
enables the effective flow of information to and from dealers can companies create a
complete view of their customers. Car companies must take the initiative in
understanding the customer 's perspective throughout the buying cycle.

 Lack of multichannel capabilities - With the advent of the Internet as a research

tool, the majority of customers are accessing the automotive enterprises through
several different channels. Many times, the switch between channels happens very
rapidly as a prospect or customer can view a Web site, make a phone inquiry, and
visit a retail store within days or even hours of an initial contact. To improve customer
satisfaction and secure customer lifetime value, companies must be able to capture

33 | P a g e
 these multiple interactions, provide seamless management between channels, and
leverage shared customer information to create rewarding experiences and to develop
and execute highly targeted marketing campaigns.

 Inefficient demand chain planning and high associated IT cost - Cost reduction is
an ongoing competitive requirement. Just as supply chain management must be
supported by a sophisticated information infrastructure, effective demand chain
management also requires the right supporting infrastructure, enabling car companies
to fully leverage each customer relationship through exceptional customer service,
efficient lead generation and management, and effective promotions and campaigns.
In addition, global automotive enterprises operate a wide variety of IT systems in their
various business units and functional groups. Rationalizing these systems offers
significant cost savings.

 Lack of effective information sharing - Car companies must integrate global

operations in order to achieve the benefits of consolidation -cost reduction, effective
communication, and true integration of core competencies. In addition, internal
alignment between business units and functional groups is required to create a unified
view of consumers, products, and services. Currently, each business unit, functional
group, and brand operates through independent systems, programs, and touch points.
As a result, there is limited synergy across the ecosystem, leading to significant
inefficiencies, lack of coordination, and most important, an inability to maximize
"share of wallet "from every customer through well-targeted marketing and cross-
selling. Synergy between traditionally independent business units such as captive
finance companies and between functional groups such as sales, service, and
marketing is more critical now than ever before. Only by sharing customer
information can customer lifetime value be maximized among different groups.

34 | P a g e
  Complex data governance requirements - Global automotive enterprises have large,
complex information technology ecosystems. While customer information must be
shared within this ecosystem in order to fully maximize global operations, it must also
be protected. Proper management of customer information requires a sophisticated
capability to manage a variety of access rules and to accommodate legal restrictions
that can change very quickly. The trust required for successful collaboration between
groups in the automotive enterprise must be built by demonstrating that customer
information can be shared while observing these complex requirements.

 Difficulty managing employee relationships - In today 's fast-paced business

environment, automotive companies need to ensure that their most valuable asset -
their employees -have immediate access to the critical information, services, and
applications required to be productive. Organizations must enable employees to make
better decisions, work collaboratively, enhance customer relationships, and maximize
productive time. Global automotive enterprises must be able to enact and enforce
consistent policies across business units, instill a common corporate culture across a
geographically dispersed and diverse workforce, equip employees with effective
search tools to access corporate knowledge bases, and provide employees with the
training necessary to service customers in a volatile and demanding market.

35 | P a g e
 Purposes of Customer Relationship Management
CRM, in its broadest sense, means managing all interactions and business with customers.
This includes, but is not limited to, improving customer service. The CRM program allows
Maruti to acquire customers, service the customer, increase the value of the customer to the
company, retain good customers, and determine which customers can be retained or given a
higher level of service. A good CRM program can improve customer service by facilitating
communication in several ways :

 Provide product information, product use information, and technical assistance on

web sites that are accessible 24 hours a day, 7 days a week.

 Identify how each individual customer defines quality, and then design a service
strategy for each customer based on these individual requirements and expectations.

 Provide a fast mechanism for managing and scheduling follow-up sales calls to assess
post-purchase cognitive dissonance, repurchase probabilities, repurchase times, and
repurchase frequencies.

 Provide a mechanism to track all points of contact between customer and the
company, and do it in an integrated way so that all sources and types of contact are
included, and all users of the system see the same view of the customer (reduces
confusion).

 Help to identify potential problems quickly, before they occur.

 Provide a user-friendly mechanism for registering customer complaints (complaints

that are not registered with the company cannot be resolved, and are a major source of
customer dissatisfaction).

 Provide a fast mechanism for handling problems and complaints (complaints that are
resolved quickly can increase customer satisfaction).

 Provide a fast mechanism for correcting service deficiencies (correct the problem
before other customers experience the same dissatisfaction).

 Use internet cookies to track customer interests and personalize product offerings
accordingly.

 Use the Internet to engage in collaborative customization or real-time customization.

36 | P a g e
  Provide a fast mechanism for managing and scheduling maintenance, repair, and on-
going support (improve efficiency and effectiveness).

 The CRM can be integrated into other cross-functional systems and thereby provide
accounting and production information to customers when they want it.

Improving customer relationships

CRM programs also are able to improve customer relationships. Proponents say this is so
because:

 CRM technology can track customer interests, needs, and buying habits as they progress
through their life cycles, and tailor the marketing effort accordingly. This way customers
get exactly what they want as they change.

 The technology can track customer product use as the product progresses through its life
cycle, and tailor the service strategy accordingly. This way customers get what they need
as the product ages.

 In industrial markets, the technology can be used to micro-segment the buying centre and
help coordinate the conflicting and changing purchase criteria of its members.

 When any of the technology-driven improvements in customer service (mentioned above)

contribute to long-term customer satisfaction, they can ensure repeat purchases, improve
customer relationships, increase customer loyalty, decrease customer turnover, decrease
marketing costs (associated with customer acquisition and customer “training”), increase
sales revenue, and thereby increase profit margins.

 Repeat purchase, however, comes from customer satisfaction - which in turn comes from
a deeper understanding of each customer, their individual business challenges and
proposing solutions for those challenges rather than a "one size fits all" approach.

 CRM software enables sales people to achieve this one on one approach to selling and
can automate some elements of it via tailorable marketing communications. However, all
of these elements are facilitated by or for humans to achieve - CRM is therefore a
company-wide attitude as much as a software solution.

37 | P a g e
 CUSTOMER RELATIONSHIP MANAGEMENT IN
CAR SERVICE INDUSTRIES

From this survey Maruti Suzuki India Limited has scored 92% and it is identified as
No.1 in Customer Relationship Management In Car Service Industries

Survey Findings

FORD INDIA PRIVATE LIMITED

 Only 25% of customers are aware about knowing their vehicle status through tracking
sheet at front office.
 The 90% of non-visited customers are contacted through telephone, the balance of
10% customers only are attended through Home visit.

38 | P a g e
MERCEDES BENZ

 80% of customers were attended within 10 minutes by the workshop staff on their
arrival to workshop.
 64% of dealer workshops are opened on Sunday for customer’s convenience and 75%
of Benz customers are expecting similar facilities from the dealers, which are not
providing the same.

CHEVROLET MOTORS

 50% of customers responded positively to one year extended warranty for their
vehicle.
 25% of customers are aware about knowing their vehicle status through tracking sheet
at front office.

MAHINDRA & MAHINDRA

 50% of the customers are positively responded to Extended Warranty.

 50% of training such as in-house & factory are provided to their employees.

HYUNDAI MOTORS

 73% of car dealers are confirming the jobs attended from the Final Inspector, in this
dealer's workshop it is confirmed from Service advisor.
 The WAIT & TAKE facility is offered for 35% of vehicles serviced by them, even for
minor jobs.

SKODA
 80% of non-visited customers are intimated through Letter.
 20% of non-visited customers are contacted only through telephone.

MITSUBISHI MOTORS
 50% of the customers are positively responded to Extended Warranty.
 Only 10% of the non-visited customers are attended through Home visits

39 | P a g e
TOYOTA MOTORS

 50% of training such as in-house & factory training are provided to their employees
but there is no individual mapping system.
 There is no continuous promotional events conducted, only around 50% of time these
events are undertaken.

HONDA MOTORS
 Internet facility is available in the customer lounge for the customer convenience and
45% of customers are using this facility
 33% of facility available to inform the ready status of vehicle to the customers. i.e
only through telephone intimation.

TATA MOTORS
 75% of customer complaints are closed within an average of three days.
 25% customers are aware of refreshment facilities available to the customers. i.e the
refreshment is provided on time bound.

MARUTI SUZUKI INDIA LIMITED

FINDINGS

 There are only 75% of customers satisfied on customer lounge facility available in
dealer workshops.
 Maruti Suzuki India Limited and their dealers have various stages of follow up by
means of Post Service Follow-up & Customer Satisfaction Index conducted by dealer
/ Maruti Suzuki India Limited and also through Face to Face contact by
 Maruti Suzuki India Limited Representative to ensure the customer satisfaction after
service of 96%.

SUGGESTION

 MARUTI should consider & insist their dealers to provide a separate lounge for
female customers with newspapers, magazines, television, drinks, etc.

40 | P a g e
 SWOT analysis of Maruti Suzuki

Maruti Suzuki is the market leader in India and has an amazing brand equity. Maruti is
known for the service it provides and is synonymous with Maruti 800 – the longest running
small car in India. Here is a SWOT of maruti suzuki, its strengths, weaknesses, opportunities
and threats.

Strengths in the SWOT analysis of Maruti Suzuki

 Maruti Udyog limited (MUL) is in a leadership position in the market with a market
share of 48.74
 Major strength of MUL is having largest network of dealers and after sales service
centers in the country.
 Good promotional strategy is adopted by MUL to transfer its thoughts to the people
about its products.
 Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units from
7,65,533 units in the previous fiscal. It recently attained the 10million domestic sales
mark.
 Strong Brand Value and Loyal Customer Base are big strengths for MUL
 There are around 15 vehicles in Maruti Product portfolio. Has good product lines with
good fuel efficiency like Maruti Swift, Diesel, Alto etc
 Alto still beats the small car segment with highest number of sales
 MUL is the first automobile company to start second hand vehicle sales through its
True-value entity.
 MUL has good market share and hence it’s after sales service is a major revenue
contributor.


Weaknesses in the SWOT analysis of Maruti Suzuki

 Low interior quality inside the cars when compared to quality players like Hyundai and
other new foreign players like Volkswagen,Nissan etc.
 Government intervention due to having share in MUL.
 Younger generations started getting a great affinity towards new foreign brands
 The management and the company’s labor unions are not in good terms. The recent
strikes of the employees have slowed down production and in turn affecting sales.
 Maruti hasn’t proved itself in SUV segment like other players.

41 | P a g e
Opportunities in the SWOT analysis of Maruti Suzuki

 MUL has launched its LPG version of Wagon R and it was a good move
simultaneously
 MUL can start R&D on electric cars for a much better substitute of the fuel.
 Maruti’s cervo 600 has a huge potential in tapping the middle class segment and act as
a strong threat to Nano
 New DZire from Maruti will capture the market share and expected to create the same
magic as Maruti Esteem(currently not available)
 Export capacity of the company is giving new hopes in American and UK markets
 Economic growth of the country is constantly increasing and the government is
working hard to increase the gdp to double digit.

Threats in the SWOT analysis of Maruti Suzuki

 MUL recently faced a decline in market share from its 50.09% to 48.09 % in the
previous year(2011)
 Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many
small players like Volkswagen- polo. Ford has shown a considerable increase in market
share due to its Figo.
 Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to
its respective competitor’s segment
 China may give a good competition as they are also planning to enter into Indian car
segment
 Launch of Hyundai’s H800 may result in the decline of Alto sales

42 | P a g e
 RECOMMENDATIONS AND CONCLUSION
As the leading manufacturer in the small car segment of the Indian market, we would like
suggest Maruti Suzuki Ltd and like to conclude by giving my some point of views like:-

 To strengthen their leadership position in the small car segment of the Indian market;
 To continue to expand the size of the Indian market for small cars by strengthening
and expanding the dealer network and making automobile financing available at
competitive rates
 To continue to benchmark them against improving global manufacturing, marketing
and other practices and standards, strive to increase customer satisfaction through
quality products and new\ initiatives, and promote the financial strength of our sale
network.
 Maruti Suzuki should make some compact cars with sporty looks like Swift .It will
give new dimensions to the success of Maruti Suzuki.

 Provide a user-friendly mechanism for registering customer complaints (complaints

that are not registered with the company cannot be resolved, and are a major source of
customer dissatisfaction).

 Provide a fast mechanism for handling problems and complaints (complaints that are
resolved quickly can increase customer satisfaction).

 Provide a fast mechanism for correcting service deficiencies (correct the problem
before other customers experience the same dissatisfaction).

 Use internet cookies to track customer interests and personalize product offerings
accordingly.

 Use the Internet to engage in collaborative customization or real-time customization.

 Provide a fast mechanism for managing and scheduling maintenance, repair, and on-
going support (improve efficiency and effectiveness).

The most important suggestion would be: Maruti Suzuki has emphasized highly on their

CRM policies and they must carry the same practices and they must concentrate that these
services should not go down rate they must work on strengthening the CRM policies.
43 | P a g e
Because in India, the after sale services matters a lot. If one company is very good at all
aspects but not good at the CRM policies customers will simply switch that brand. But if a
company is Excellent in its After Sale services or co-coordinating in excellent manners with
the customers The Customers love to attach with that company whether all the features are
not good. So to maintain the success Maruti must be good at the CRM policies as it is now.

44 | P a g e
 BIBLIOGRAPHY

Books

 Gupta S.L. , "marketing management", educational Publication

 Jha lakshman. ,”customer relationship management”,Global India Publications

 Kothari CR ,”research methodology”,Himalya publications

Web sites

 Www.marutiudyog.com

 Gurgaon.nic.in/maruti.htm

 Auto.indiamart.com

 Economictimes.indiatimes.com

 En.wikipedia.org/wiki

 www.citrix.com

 http://www.sciencedirect.com/science/article/pii/0305750X9400135L

 http://home.ximb.ac.in/~jcr/cases/Case01-June2013.pdf

 http://journals.sagepub.com/doi/abs/10.1177/097226290601000108?journalCode=vis
a

45 | P a g e
 I. APPENDICES

S I. WORK LOAD Strongly Disagree No Agree Strongly

no. Disagree Opinion Agree
1 2 3 4 5
a. I have given enough time to do
what is expected of me on my job
b. I get upset thinking that I am not
able to prosper (or) make progress
in my job Or carrier
c. I very often feel that I am being
neglected when I am in the Team.
d. I do my work under considerable
tension.
e. I find difficulty to concentrate on my
work.

f. I often hesitate to start something new

because I feel that I will not be
successful.
g. I don’t have enough information that I
need for my work.
h. I feel that I have been work loaded with
too many jobs.

S EMOTIONAL Strongly Disagree No Agree Strongly

No. EXHAUTION Disagree Opinion Agree
1 2 3 4 5
a. I feel emotionally drained from my work.
b. I generally feel that life is a burden.
c. I often feel that I am not able to think
clearly.
d. I find it extremely difficult to take
decisions.
e. I get nervous when I am unable to meet
organizational requirements.

46 | P a g e
S I. VULNERABILITY Strongly Disagree No Agree Strongly
No. Disagree Opinion Agree
1 2 3 4 5
a. Compare to others I usually come out
ahead.
b. I love to take risks when stakes are high.
c. I never lose my temper during difficult
situations.
d. Thought of suicide have never crossed in
my mind.
e. I rarely explain things and apologies.
f. I do something I expect to be rewarded.

S I. PHYSICAL Strongly Disagree No Agree Strongly

No. Disagree Opinion Agree
1 2 3 4 5
a. I sleep for 7-8 hours a day
b. Do you have frequent headache while
doing the job.
c. Do you become restless and can’t keep
stiff while working.
d. I have at least one friend with me so I can
share my personal details with him.

S I. ORGANIZATIONAL Strongly Disagree No Agree Strongly

No. COMMITMENT Disagree Opinion Agree
1 2 3 4 5
a. I proud to tell people where I work.
b. I feel myself to be the part of
organization.
c. I feel to move from this company because
of various reasons.
d. I feel that company should change in
some prospective.

47 | P a g e