Automotive industry in india

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. A chunk of India's car manufacturing industry is based in and around Chennai, also known as the "Detroit of India" with the India operations of BMW, Ford,Hyundai and Nissan headquartered in the city. Chennai accounts for 60 per cent of the country's automotive exports.Gurgaon and Manesa in Haryana are hubs where all of the Maruti Suzuki cars in India are and manufactured. Mahindra, Tata The Chakan corridor Motors, Mercedes near Pune, Maharashtra is another vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra Nano plant, Halol with General Benz, Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata Motors, Aurangabad with Audi, Kolkatta with Hindustan Motors, Noida with Honda and Bengaluru with Toyota are some of the other automotive manufacturing regions around the country.

Indian Four Wheeler Industry

The Four-Wheeler Industry in India has not quite matched up to the performance of its counterparts in other parts of the world. The primary reason for this has been the all-pervasive regulatory atmosphere prevailing till the opening up of the industry in the mid-1990s. The various layers of legislative Acts sheltered the industry from external competition for a long time. Moreover, the industry was considered low-priority as cars were thought of as unaffordable luxury". Post Liberalization, the car market in India have been in a burgeoning stage with all types of cars flooding the market in order to meet the demands of Indian customers who are increasingly exposed to state of the world automobiles and want the best when it comes to purchasing a car. It is expected that by 2030, the Indian car market will be the 3rd largest car market across the globe. The main encouraging factors for the success story of the car market in India are the increase in the opportunity for new investments, the rise in the GDP rate, the growing per capita income, massive population, and high ownership capacity. The liberalization policies followed by the Indian government had been inviting foreign players to participate in the car market in India. The recent trend within the new generation to get work in the software based sector has led to the rise in the income level and change in the lifestyle significantly, which has further led to the increase in the demand for luxurious cars among them. The car Market in India is crowded with all varieties of car models like the small cars, mid-size cars, luxury cars, super luxury cars, and sports utility vehicles. Initially the most popular car model dominating the Car Market in India was the Ambassador, which however today gave way to numerous new models like Hyundai, Honda, Mercedes-Benz, BMW, Bentley and many others. Moreover, there are many other models of cars in the pipeline, to be launched in the car market in India. Some of the leading brands dominating the car market in India at present are Hindustan Motors, Reva Electric Car Co., Fiat India Private Ltd., Daimler Chrysler India Private Ltd, Ford India Ltd., Honda Siel Cars India Ltd., General Motors India, Hyundai Motors India Ltd., Skoda Auto India Private Ltd., and Toyota Kirloskar Motor Ltd. Since the demand for foreign cars are increasing with time, big brands like Mercedes Benz, Volkswagen, Aston Martin, Ferrari, and Rolls-Royce have long since made a foray into the Indian car market.

Facts about Indian Car Market:

Although the Indian automobile industry has come a long way since the deregulation in 1993, India does not rank well among its global peers in many respects, viz., the contribution of the sector to industrial output, number of cars per person, employment by the sector as a percentage of industrial employment, number of months' income required to purchase a car, and penetration of cars. India is far behind from other countries with just 6.9 cars per 100 persons, while Unites States has 76.9 cars on per 100 persons. Among developing countries, Russia also stands ahead than India and China with 16.3 cars per 100 persons.

120 100 80 60 40 20 0 INDIA EUROPE US CHIINA JAPAN RUSSIA 6.9 40.8 76.9 1.6 16.3 41.3 Series 2 Series 1

Figure 1 :-Passenger vehicle stock per 100 people

Two things that stunted growth of the Indian automobile industry in the past have been low demand and lack of vision on the part of the original equipment manufacturers (OEMs). However, the demand has picked up after the liberalization of the regulatory environment, and global OEMs who enjoy scale economies both in terms of manufacturing and research and development (R&D) entered the Indian market. This has resulted in a significant shift in the way business is conducted by suppliers, assemblers and marketers

Major Automobile Players in India

Maruti Udyog Limited Maruti Udyog Limited is India's largest automobile company. Its main factory is situated in Gurgaon district, Haryana. The company, a joint venture with of Government of India with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry. The first cars rolled out for sale on 14th December 1983, (the Company went into production in a record 13 months), marking the beginning of a revolution in the Indian automobile industry. Suzuki Motor Corporation

Suzuki Motor Corporation was incorporated in 1920. Today it is one of the leading manufacturing industry in automobiles. Suzuki Motor Corporation, with headquarters in Hamamatsu, Shizuoka, Japan is the leading international manufacturer of compact cars. The Company employs some 45,510 people worldwide. And it is represented in over 192 countries and areas. Its net sales have been exceeding the previous terms for the 8th consecutive year and its operating income for 7th consecutive year, and in the fiscal 2006/2007 the turnover reached about 3,163 billion yen with an increase of 15.2 percent over the previous year. The worldwide sales cover among other things 2.22 million automobiles and 3.06 million motorcycles. Suzuki has 35 main production facilities in 23 countries. Hyundai Motor India Ltd. Hyundai Motor Company, Korea, has constructed its largest overseas manufacturing plant in Chennai, India. Hyundai models include Santro, Accent and Sonata. Provides information about Hyundai dealers throughout India. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 34 variants of passenger cars in six segments. The Santro

in the B segment, Getz Prime, i10 in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment. Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339 units.

Daimler Chrysler India Pvt. Ltd & Mercedes-Benz India Ltd. Daimler Chrysler India is a 100% subsidiary of Daimler Chrysler group and one of the first auto joint ventures set up in India. Daimler Chrysler India has a world-class production facility in Pune, in Maharastra State.

Ford India Limited - Subsidiary of Ford Ford has invested heavily in India, with a Rs. 1700 crore integrated manufacturing plant at Maraimalai Nagar, equipped with state-of-the-art Ford technology and employing 1,000 people. Models include Ikon and Mondeo. Gajra Gears Ltd. :manufacturer of automobile transmission gears. Opel India Manufactures the Opel Astra car in India Automotive seating systems and components for passenger cars,LCVs, tractors. S.K. Engineering & Allied Works has now become a world famous name for Dehusking and Splitting plant for pulses and peas. Our plants of capacities ranging from 50 to 150 tones per day are already installed and successfully working in countries like Australia, Middle East, Canada, India, Nepal and Burma with more and more countries getting added to the list.

Tata Motors India's most reliable, dynamic and futuristic automobile manufacturer. With more than 130 models spanning a wide range of Commercial Vehicles, Passenger Cars and Multi-Utility Vehicles, Tata Motors provides the wheels for India's growth. Mahindra Ford India Ltd Manufactures the Ford Escort range of cars in India Mitsubishi Lancer All you want to know about the car Mitsubishi Lancer.

Honda City Luxury cars from Honda

COMPETITIVE FORCES IN INDIAN PASSENGER CAR MARKET Critical Issues and Future Trends The critical issue facing the Indian passenger car industry is the attainment of breakeven volumes. This is related to the quantum of investments made by the players in capacity creation and the selling price of the car. The amount of investment in capacities by passenger car manufacturers in turn depends on the production Threat from the new players: Increasing y Most of the major global players are present in the Indian market; few more are expected to enter. y Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital. y y Access to distribution network is important. Lower tariffs in post WTO may expose Indian companies to threat of imports.

Rivalry within the industry: High y y There is keen competition in select segments. (compact and mid size segments). New multinational

Market strength of suppliers: Low y y A large number of automotive components suppliers. Automotive players are rationalizing their vendor base

Market strength of consumers: Increasing y Increased awareness among consumers has increased expectations.Thus the ability to innovate is critical. y Product differentiation via new features, improved performance and after sales support is critical. y Increased competitive intensity has limited the pricing power of the companies.

Threat from substitutes: Low to medium y With consumer preferences changing, inter product substitution is taking place (Mini cars are being replaced)

Maruti suzuki India LTD

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 2009-10 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 2011) 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. (Rs. in Million) Year 2005-06 2007-08 2009-10

Net Sales 1,20,034 1,78,603 3,01,198

Year 2006-07 2008-09 2010-11

Net Sales 1,45,922 2,03,583 3,61,282

The company is listed on Bombay Stock Exchange and National Stock Exchange.

History In 1970 , Sanjay Gandhi the son of Indira Gandhi envisioned the manufacture of an indigenous , cost effective , low maintenance compact car for the Indian middle class . Indira Gandhis cabinet passed a unanimous resolution for the development and production of a peoples car. Sanjay Gandhis company was christened Maruti limited. The name of the car was chosen after a Hindu deity named Maruti Ltd. That time Hindustan Motors Ambassador was the chief car and the company had come out with a new entrant the premier Padmini that worked slowly gaining a part of the market share dominated by the ambassador. For the next ten years the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. The collaboration heralded a revolution in the Indian car industry by producing the maruti800. It created a record of taking 13 months time to go from design to rolling out cars from a production line. The production of Maruti-800 in 1983 marked the beginning of a revolution in the Indian automobile industry. It brought in the latest technology of that time more fuel efficiency and lower prices that led to the creation of a huge market for all car segments as the Indian, middle class grew in size. This in turn brought in more players in this segment. A number of auxiliary car parts making units were set up as more car manufacturers realized it was more cost effective to make their car parts in India rather than importing them. Marutis major influence was in helping the component industry in the country because of its emphasis on localization and indigenization. As in the beginning that sector hadnt grown much Marutis had to start dozens of joint ventures with Indian entrepreneurs.

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. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all 10

over the world. There was an option in the agreement to raise Suzukis equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss.

The Evolution Marutis history of evolution can be examined in four phases: two phases during pre liberalization period (1983-86, 1986-1992) and two phases during post-liberalization period (1992-97, 1997-2002), followed by the full privatization of Maruti in June 2003 with the launch of an initial public offering (IPO).The first phase started when Maruti rolled out its first car in December 1983. During the initial years Maruti had 883 employees, a capital of Rs. 607 mn and profit of Rs. 17 mn without any tax obligation. From such a modest start the company in just about a decade (beginning of second phase in 1992) had turned itself into an automobile giant capturing about 80% of the market share in India. Employees grew to 2000 (end of first phase 1986), 3900 (end of second phase 1992) and 5700 in 1999. The profit after tax increased from Rs 18.67 mn in 1984 to Rs. 6854.54 mn in 1998 but started declining during 1997-2001. During the pre-liberalization period (1983-1992) a major source of Marutis strength was the wholehearted willingness of the Government of India to subscribe to Suzukis technology and the principles and practices of Japanese management. Large number of Indian managers, supervisors and workers were regularly sent to the Suzuki plants in Japan for training. Batches of Japanese personnel came over to Maruti to train, supervise and manage. Marutis style of management was essentially to follow Japanese management practices.

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The Path to Success for Maruti was as follows: (a) teamwork and recognition that each employees future growth and prosperity is totally dependent on the companys growth and prosperity (b) strict work discipline for individuals and the organization (c) constant efforts to increase the productivity of labor and capital (d) steady improvements in quality and reduction in costs (e) customer orientation (f) long-term objectives and policies with the confidence to realize the goals (g) respect of law, ethics and human beings. The path to success translated into practices that Marutis culture approximated from the Japanese management practices.

Vision The leader in the India Automobile Industry, Creating Customer Delight and Shareholders Wealth; A pride of India

Mission To provide maximum value for money to their customers through continuous improvement of products and services. Maruti has a network of 391 sales outlets across 230 cities all over India. The service network covers 1,113 towns and cities, bolstered by 2,142 authorized service outlets.The company's change in strategy and emphasis on developing effective marketing communications was their highlights.

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Core values 1. Customer obsession 2. Fast, flexible and first mover 3. Innovation and creativity 4. Networking and partnership 5. Openness and learning

Maruti Suzuki million

They began their operations way back in 1983, with 800, the vehicle which brought about a revolution in the Indian car market. Today, one in every two cars in india is a product of maruti Suzuki. Their scale and manufacturing complexity have today moved to a different league from when it began. They have reached a capacity of one million cars annual production this year. This feat is entirely based on the companys constant endeavour to meet aspirations of a large and diverse demography, by providing the best through innovative products and services. Today, each car from the maruti Suzuki factories at gurgaon, manesar, Haryana and north india are tangible evidence of quality, manufacturing standards and efficiency.

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OBJECTIVE OF THE COMPANY

Marutis marketing objective is to continually offer the customer new products and services that: Reduce the customers cost of ownership of their cars; andanticipate and address the customers needs and preferences in all aspects and stages of car ownership, to provide what they refer to as the 360 degree customer experience. They sell ten models with more than 50 variants in segments A, B, C, and utility vehicle segment of the Indian passenger car market. Of these, they manufacture nine models and import the Grand Vitara as a completely built unit from Suzuki in Japan. Their models and variants are designed to address the changing demands of the market and are periodically upgraded in technology, styling and features. To take advantage of the brand recognition associated with their products, they retain the brand name of the product through various stages of product upgrades over time. For example, the version of the Maruti 800 brand currently sold in the market is a significantly upgraded version, in terms of technology, design and styling, of the Maruti 800 launched in 1983. GRADE A A B B B C C C C Utility Vehicle Utility Vehicle CAR Maruti 800 OMNI Zen Wagon R Alto Esteem Baleno Versa SWIFT GYPSY KING GRAND VITARA

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TABLE1 : STRUCTURE OF MARUTI SUZUKI INDIA LTD.

FIGURE 2 : FINANCIAL ANALYSIS

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FACILITIES Gurgaon facility

Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India. Maruti Suzuki's facility in Gurgaon houses three fully integrated plants. Together the three plant have an installed capacity of around 700,000 units.

K- series Plant The Gurgaon facilities also houses the 'K' Engine Plant. Commissioned in 2008, the K-series engine plant has an installed capacity of 500,000 units. K-series engines are available in 1 litre and 1.2 litre capacities. The highly fuel efficient, technologically advanced K series engines have been very well appreciated by our customers for their performance. Several Maruti Suzuki cars such as the A-star, Estilo, Swift, Swift Dzire, Ritz and WagonR sport the K-series engines. Company has announced an investment of around Rs. 1250 crores to expand angine capacity units by 2010.

Manesar Facility The state of the art Manesar facility was inaugurated in February 2007. At present the Manesar plant rolls out World Strategic Models Swift, A-star, SX4 and swift DZire. There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to help manufacture with acute precision, high quality and speed. The Manesar plant is designed to be flexible: diverse car models can be made here conveniently

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owing to automatic tool changers, centralized weld control system and numerical control machines that ensure high Quality. The plant at Manesar is the company's fourth car assembly plant and has a capacity of 300,000 cars per year. Company has announced an investment of Rs.1700 crores to expand its capacity by 250,000 units. The new facility is expected to be ready by 2011-12. Suzuki Powertrain Suzuki Powertrain India Limited is a joint venture of Maruti Suzuki with Suzuki Motor Corporation, Japan.at Manesar. It manufactures world class diesel engines and transmissions for cars. SMC holds 70 per cent equity in SPIL the rest is held by Maruti Suzuki. This diesel engine plant has a capacity to manufacture 300,000 diesel engines a year.

Distribution network
 
y Maruti Suzuki India is currently focussing its distribution network to setup stock patio in different parts of the country . Maruti Suzuki facilitates combined production capacity of 1,000,000 vehicles annually. Maruti Suzuki Manufacturing Facility has three fully integrated manufacturing plants in Gurgaon and is spread over 300 acres. All three plants have an installed capacity of 350,000 vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually, equipped with more than 150 robots, out of which 71 have been developed in-house and Facilities manufactures 800, Alto, WagonR, Estlio, Omni, Gypsy, Swift and Eeco. Maruti has around 15000 dealers who are catered buy the sales executives. The orders are collected by the sales executives and passed on to the nearest depot.

y y

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MARUTI SUZUKI LTD. AT A GLANCE

Incorporated Joint Venture Agreement

February 1981 October 1982 54.2% Suzuki, Japan, Balance with Other Financial Institution and Public.

Equity Structure

Sales (No of Cars) Financial year 2006-07 Sales (Net of Excise) Financial year 2006-07 Profit After Tax Financial year 2006-07 Employee Strength Facilities

674, 924 including 39,295 exports.

INR 152.5 Billion, Yen 423.675 Billion , $ 3.499 Billion

INR 15.62 Billion, Yen 42.22 Billion, $ 358.34 Million

4993 of Financial year 2006-07 Gurgaon: 3 vehicle assembly plants Manesar: 1 vehicle assembly plant Head Office in New Delhi, India Regional offices: 16

Diesel Power train Plant

Suzuki Power train India Limited (SPIL), Joint Venture between Suzuki Motor Corporation 70% Equity the rest is with Maruti Suzuki India Limited. Global hub for Diesel engines and transmissions for Suzuki worldwide.

Joint Venture

15 Joint Venture companies, including Suzuki Power train India Limited for component supply.

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Subsidiary Companies

True Value: for sale and purchase of pre-owned cars Maruti Insurance: for insurance of Maruti vehicles (four companies) Maruti Finance: for financing Maruti vehicles

Network Reach Financial year 2006-07

Sales 398 Outlets covering 228 cities Service 2421 workshops covering 1193 cities Pre-owned Car Sales 242 dealers covering 148 cities

TABLE 2 : MARUTI SUZUKI AT A GLANCE

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CURRENT STRATEGIES FOLLOWED BY MARUTI SUZUKI PRICING STRATEGY - CATERING TO ALL SEGMENTS

Maruti caters to all segment and has a product offering at all price points. It has a car priced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking for up gradation in his car. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Here is how every price point is covered. OFFERING ONE STOP SHOP TO CUSTOMERS OR CREATING DIFFERENT REVENUE STREAMS Maruti has successfully developed different revenue streams without making huge investments in the form of MDS, N2N, Maruti Insurance and Maruti Finance. These help them in making the customer experience hassle free and helps building customer satisfaction. Maruti Finance: In a market where more than 80% of cars are financed, Maruti has strategically entered into this and has successfully created a revenue stream for Maruti. This has been found to be a major driver in converting a Maruti car sale in certain cases. Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank Ltd.( erstwhileAshok Leyland Finance). Maruti Insurance : Insurance being a major concern of car owners. Maruti has brought all car insurance needs under one roof. Maruti has tied up with National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram to bring this service for its customers. From identifying the most suitable car coverage to virtually hassle-free claim assistance it's your dealer who takes care of everything. Maruti Insurance is a hassle-free way for customers to have their cars repaired and claims processed at any Maruti dealer workshop in India.

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True Value Initiative to capture used car market Another significant development is MARUTI SUZUKI INDIA LIMITED's entry into the used car market in 2001, allowing customers to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return.This helps them retain the customer. With Maruti True Value customer has a trusted name to entrust in a highly unorganized market and where cheating is rampant and the biggest concern in biggest driver of sale is trust. Maruti knows its strength in Indian market and has filled this gap of providing trust in Indian used car market. Maruti has created a system where dealers pick up used cars, recondition them, give them a fresh warranty, and sell them again. All investments for True Value are made by dealers. Maruti has build up a strong network of 172 showrooms across the nation. The used car market has a huge potential in India. The used car market in developed markets was 2-3 times as large as the new car market. N2N: Car maintenance is a time-consuming process, especially if you own a fleet. Marutis N2N Fleet Management Solutions for companies, takes care of the A-Z of automobile problems. Services include end-to-end backups/solutions across the vehicles life: Leasing, Maintenance, Convenience services and Remarketing.

Maruti Driving School (MDS): Maruti has established this with the goal to capture the market where there is inhibition in buying cars due to inability to drive the car. This brings that customer to Maruti showroom and Maruti ends up creating a customer.

CUSTOMER CENTRIC APPROACH

Marutis customer centricity is very much exemplified by the five times consecutive wins at J D Power CSI Awards. Focus on customer satisfaction is what Maruti lives with. Maruti has successfully shed off the public- sector laid back attitude image and has inculcated the customerfriendly approach in its organization culture. The customer centric attitude is imbibed in its employees. Maruti dealers and employees are answerable to even a single customer complain. There are instances of cancellation of dealerships based on customer feedback. Maruti has taken a number of initiatives to serve customer well. They have even changed their showroom layout so that customer has to walk minimum in the showroom and there are norms for

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service times and delivery of vehicles. The Dealer Sales Executive, who is the first interaction medium with the Maruti customer when the customer walks in Maruti showroom, is trained on greeting etiquettes. Maruti has proper customer complain handling cell under the CRM department. The Maruti call center is another effort which brings Maruti closer to its customer. Their Market Research department remains on its toes to study the changing consumer behaviour and market needs.Maruti enjoys seventy percent repeat buyers which further bolsters their claim of being customer friendly. Maruti is investing a lot of money and effort in building customer loyalty programmes.

COMMITTED TO MOTORIZING INDIA

Maruti is committed to motorizing India. Maruti is right now working towards making things simple for Indian consumers to upgrade from two-wheelers to the car. Towards this end, Maruti partnerships with State Bank of India and its Associate Banks took organized finance to small towns to enable people to buy Maruti cars. Rs. 2599 scheme was one of the outcomes of this effort. Maruti expects the compact cars, which currently constitute around 80% of the market, to be the engine of growth in the future. Robust economic growth, favorable regulatory framework, affordable finance and improvements in infrastructure favor growth of the passenger vehicles segment. The low penetration levels at 7 per thousand and rising income levels will augur well for the auto industry. Maruti is busy fine-tuning another innovation. While researching they found that rural people had strange notions about a car - that the EMI (equated monthly instalments) would range between Rs 4,000 and Rs 5,000. That, plus another Rs 1,500-2,000 for monthly maintenance, another Rs 1,000 for fuel (would be the cost of using the car). To counter that apprehension, the company is working on a novel idea. Control over the fuel bill is in the consumer's hands. But, maintenance need not be. Says Khattar: "What the company is doing now is saying how much you spend on fuel is in your hands anyway. As far as the maintenance cost is concerned, if you want it that way, we will charge a little extra in the EMI and offer free maintenance."

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MARUTI EMERGING AS R&D HUB FOR SUZUKI MOTOR CORPORATION Japanese auto major Suzuki is all set to convert Maruti suzuki india limited Ltds research and development (R&D) facility as its Asia hub by 2007 for the design and development of new compact cars, according to a top official of the firm. The countrys leading car manufacturer will make substantial investments to upgrade its research and development centre at Gurgaon in Haryana for executing design and development projects for Suzuki. This includes localisation, modernisation and greater use of composite technologies in upcoming models.

The company will be hiring more software engineers and technocrats to handle Suzukis R&D projects. Investment would be more in terms of manpower than in infrastructure, which is already in place. Apart from working on innovative features, the R&D teams will focus on latest technologies using CAD-CAM tools to roll out new models that will meet the needs of MARUTI SUZUKI INDIA LIMITEDs diverse customers in the future.

KEY SUCCESS FACTORS

(1)The Quality Advantage

Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters.

(2)A Buying Experience Like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MARUTI SUZUKI INDIA LIMITED customers in finding the right car.

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(3)Quality Service Across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

(4)One Stop Shop

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

(5) The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

(6)Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, swift dzire, Maruti 800, Alto and Omni.

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(7) Technological Advantage

It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car.

Figuire 3 : MARKET SCENERIO (2008-09)

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for ten years in a row in annual

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survey. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on 14 December 1983.

Maruti is a picture of diversity: let it be its products, services, promotional strategies. And the best part lies in the management of it all in the most effective manner to constitute a marketing strategy which is sure to benefit them with constant refreshment depending upon the environment. In economic terms, Maruti has witnessed tremendous growth in every sphere as depicted by the charts below:

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Market Segment Analysis Based on economic strata, the Indian auto consumer segment can be sub divided in to 5 categories:  Economy  Mid-Range  Luxury  Premium  Super Premium

FIGURE 4 : SEGMENT WISE MARKET SHARE IN 2001

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BRAND HIERARCHY OF THE COMPANY

MARUTI SUZUKI

City Car

Maruti 800

Maruti Alto

Maruti Zen Estilo

Suzuki Alto (A-star)

Suzuki Splash

Super mini Car Maruti Wagon-R Maruti Suzuki Swift

Compact Car

Maruti Suzuki SX4

Maruti DZiRE

Sports Utility Vehicle Suzuki Grand Vitara

Maruti Gypsy

Microvan

Maruti Omni

Maruti Versa

FIGURE 5 : BRAND HIERARCHY OF THE COMPANY

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MEANING OF MARKETING MIX

The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixerof ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide use.

FOUR PS
Elements of the marketing mix are often referred to as the "Four P's":


Product - It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a lifecycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors.

Price The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.

Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion represents all of the communications that a marketeer may use in the marketplace. Promotion has four distinct elements:advertising, public
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relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above). Any organization, before introducing its products or services into the market; conducts a market survey. The sequence of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth, Maturity and Decline.

EXTENDED MARKETING MIX

More recently, three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix.


People: All people involved with consumption of a service are important. For example workers, management, consumers etc. It also defines the market segmentation, mainly demographic segmentation. It addresses particular class of people for whom the product or service is made available.

Process: Procedure, mechanism and flow of activities by which services are used. Also the 'Procedure' how the product will reach the end user. Physical Evidence: The marketing strategy should include effectively communicating their satisfaction to potential customers.

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MARKETING MIX OF MARUTI: Product Price Place Promotion Product Strategy: Portfolio of 12 products Five product lines Product Line A1 A2 A3 SUV C - Class Products 800 Alto, Zen ,Wagon R, Swift, A-star D ZiRE, Sx4 Vitara, Gypsy Omni, Versa

PRODUCT PROFILE OF MARUTI SUZUKI INDIA LIMITED LTD. Maruti provides Full range of cars- from entry level Maruti 800 & Alto to stylish hatchback Astar, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.Along with its core products, the industry has also taken a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. The industry has been incorporating various services like driving schools, Maruti true value, fleet management facility etc. to ensure a competitive advantage and sustainability.

The various models have been discussed below briefly :

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ALTO - LETS GOS The alto is a great combination of economy, practicality and styling. A runaway success on the roads of Europe, it exemplifies the benchmark in build, quality and reliability in a compact car. This is testified by the 24 hour endurance record set on August 3, 2003 of covering 3082 kms in 24 hours at an average speed of 128 kmph.

Figure 6 : product portfolio

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GRAND VITARA XL 7 - LIVE THE GRAND LIFE

Live the grand life with the new GRAND VITARA XL 7. This luxurious 7 seater, 4 wheel drive sports utility vehicle comes equipped with a powerful V6 engine, 166 bhp of power and 236 Nm of torque. Which enables you to conquer any terrain with utmost ease? Enjoyed by both the adventurous and successful, the new restyled Grand Vitara XL 7 is now available in India directly imported from Suzuki, Japan.

GYPSY ADVENTURES UNLIMITED Be it the wild outdoors or the urban jungle, the Gypsy King glide by with ease. The adventurous streak runs through all the gypsy siblings. This 1300 cc off road vehicle combines the raw of 80 bhp (at 6000rpm) with superb 4 wheel drive maneuverability and a rugged frame (its available in both soft and hard top versions). Its useful fifth gear, of course, delivers over drive for on road cruising.

OMNI FITS ALL The Omni is truly Indias Original Maruti suzuki india limitedtipurpose Vehicle. Today it is available in six avatars 5 seater, 8 seater, cargo, ambulance, CNG and LPG. It meets diverse needs across different user segments and can double up both as a people carrier and a goods carrier. This faithful workhouse is easy on the pocket, yet tough on the job.

MARUTI 800 - CHANGE YOUR LIFE It has gone beyond being just a car; it has actually changed the lifestyles of countless people, by bringing the joy of motoring to millions across the length and the breadth of the country. Standing testimony to this claim is the fact that more than 2 millions Maruti 800s have been sold till date. Today, India best selling continues to be the final word on value and economy at the entry-level segment.

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WAGON R-INSPIRIED ENGINEERING The Wagon RS original tall body design, spaciousness, ergonomically designed interior and flexible seating all set it apart from other cars. It complements the buyers unique personality enables him to live a maruti suzuki india limitedti-dimensional life by the sheer excellence of its engineering and its versatility.

ZEN SURRENDER TO THE NEW ZEN If you are looking for a car with drop dad looks and unmatched performances, then you need look beyond the Zen. With its new contemporary and aggressive look, the Zen preserves its core values of driver appeal, unmatched reliability and economy. 600000 satisfied customers in India and around the world bear testimony to this fact.

SWIFT- YOU ARE THE FUEL The hot looks, sexy interiors, the automatic climate control, the air bags, the power steering moreover, all so affordable. The wait is over. Swift has entered MARUTI SUZUKI INDIA LIMITEDs portfolio. What are you waiting for?

A-STAR-STOP @ NOTHING Powered by state of art 998 cc engine, its the best fuel efficient car in its category with, mileage coming around 20km per liter.

SX-4 MEN ARE BACK Revolutionary European design, world class drive by wire .Most spacious in its class, Steering mounted audio controls; with maximum ground clearance, high on safety with dual airbags. 34

SWIFT DZIRE- THE HEART CAR A car having everything you desire stunning looks, luxurious interiors, enough power to capture your heart. Just slide in desire and take it for a spin. Its sure steal many of hearts including yours.

Ritz -Live the Moment Model of 2009 known by the name Suzuki splash having attractive back with maximum ground clearance.

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India is a growing market in terms of automobiles and to adhere to the need of customer and maintain their market share it is necessary to follow strategies having an upper hand to your competitors. The main markets competitors of Maruti are the Hyundai, Chevrolet etc.which are other dominant players in the small car industry. Here, we have shown the comparison of the same type cars of these companies with maruti and the competitive advantage of Maruti over them:

MARUTI SWIFT VERSUS HYUNDAI I10 FEATURES

MILEAGE FUEL TANK CAPACITY ENGINE TYPE MAX SPEED TORQUE VOLVES PER CYLINDER POWER

i10
16.1 km/litre 43 litre In line engine 60 km/hr 113Nm@4500rpm 4 87Ps@600rpm

SWIFT
16.8km/litre 35litres IRDE 1:1 4cylinder petrol 149km/hr 99Nm@2800rpm
3

67Ps@5500rpm

TABLE 3 : MARUTI SWIFT VS HYUNDAI I10

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MARUTI RITZ VERSUS CHEVROLET BEAT

FEATURE MILEAGE FUEL TANK CAPACITY POWER TORQUE DISPLACEMENT

RITZ 16km/litre 43litre 85 ps@600rpm 113Nm@4700rpm 1197cc

BEAT 18.6 km/litre 0litre 80 ps@6200rpm 108Nm@4400rpm 1199Cc


TABLE 4 : MARUTI RITZ VS CHEVROLET BEAT

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Figure 7 : BCG matrix MATRIX Of MARUTI SUZUKI

STAR: The Company has long run opportunity for growth and profitability. They have high relative market share and high Growth rate. SWIFT, SWIFT DESIRE AND ZEN ESTILO is the fast growing and has potential to gain substantial profit in the market.

QUESTION MARK: there are also called as wild cats that are new products with potential for success but there cash needs are high And cash generation is low. In auto industry of MARUTI SX4, GRAND VITARA, ASTAR there has been improve the organization reputation As they want successful not only in Indian market but as well as in global market.

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CASH COW: It has high relative market share but compete in low growth rate as they generate cash in excess of their needs. MARUTI 800, ALTO AND WAGNOR have fallen to ladder 3 & 4 due to introduction of ZEN ESTALIO and A STAR. DOG: The dogs have no market share and do not have potential to bring in much cash.BALENO, OMINI, VERSA There business have liquidated and trim down thus The strategies adopted are that are harvest, divest and drop. BCG matrix can serves as a simple tool for viewing a corporations business portfolio at a glance , and may serves as a starting point for discussing resource allocation among strategic business units.

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40

Figure 8 : GE matrix

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INTERPRETATION
 Maruti has a bigger name in the market.  It has trust of people.  Maruti Udyog Ltd is the market leader for more than a decade.  It has a great leadership chain in the market.  It has better after sales service.  Low manufacturing cost of vehicle.  Creation of value and benefit from the product at different markets. Maruti is an automotive industry but the changing scenario and competitive environment has forced it to shift from the product based industry to a service provider to take up a competitive advantage and wholly ensure customer satisfaction. Besides, their usual operation in the car selling and manufacture Maruti also provides auxiliary services to enhance complete satisfaction from the point of view of its customers.

FINANCIAL TIE UPS

 Mahindra & Mahindra Financial Services Ltd (MMFSL), part of the $3.04 billion Mahindra group has signed an agreement with Maruti Udyog Ltd (MUL) to provide finance to all of the latters products. Under this pact MMFSL will leverage on its strong rural presence to provide retail finance for Maruti vehicles.  Maruti has tied up with SBI bank which will benefit both of them. Other marketing strategy followed when its product sales grew old or sales started dipping was:  OMNI: interiors and exteriors ,Omni cargo, OMNI CNG  VERSA: slashed prices by decreeing engine power  ESTEEM: new look to boost sales.  BALENO:price slash from 1999(7.2lakh) to 2003(5.46)  WAGON R:modifications in engine and sporty look 42

 ZEN: modifies 4 times and special editions. Thus, Maruti has a range of cars for every person in the market added by services making it a business success.

NEW INITIATIVES IN MARUTI SUZUKI LIMITED (one stop shop to meet all your needs)

MARUTI INSURANCE

In an effort to become a complete car company, Maruti has entered the car insurance business as well. It offers the customer all the advantages of settling insurance claims directly with any of the companys authorized dealers. Maruti Insurance is one of the most renowned car insurance companies in India. The company has ties up with Bajaj Allianz, National Insurance Company, Royal Sundaram, and New India Assurance. Car insurance policy of Maruti Insurance is a single solution to all your car insurance needs, which may include instant policy issuance to post accident repairs on near cash-less basis. Automobileindia.com furnishes detailed information on Maruti Insurance.

The Basics Features of Maruti Insurance:

Car insurance under Maruti Insurance has a few basic features. Automobileindia.com furnishes detailed information on Maruti Insurance. Maruti provides motor insurance for Maruti vehicles only, which excludes Third Party policies. Maruti Insurance is available to customers only through Maruti dealer network all over India. Maruti Insurance provides insurance for Maruti vehicles up to 7 years old. One of the biggest plus points of insuring under Maruti Insurance, the vehicle can remain under cover as long as it lasts. 43

Advantages of insuring with Maruti Insurance: Maruti Insurance offers a number of advantages, which contributes to its immense popularity. Automobileindia.com furnishes detailed information on Maruti Insurance.

MARUTI COMPLETE FLEET SOLUTIONS

This business provides complete fleet solutions to corporate and institutions. Branded Maruti N2N, this service includes the following: customized car policies, economical car leasing, maintenance, servicing, registration, insurance, emergency assistance, accident management and eventual re-sale of cars.

MARUTI FINANCE

Maruti Finance offers the best finance packages to consumers across the entire Maruti range. The service is being extended across the country in a phased manner Maruti is the leading company in the Indian passenger car market. A market share of 54 per cent followed by a host of popular models in various segments like Maruti 800, Omni, Esteem, Baleno, Swift and the like has ensured that Maruti continues to be a major force in the Indian automobile market. However, to maintain its prominent position in the midst of increasingly expanding Indian automobile market and the entry of Indian and foreign auto majors, Maruti has come up with a number of innovations and Maruti Car Finance is one of the popular such option.As part of the Maruti car finance, the company has entered into tie-ups with leading banks and financial institutions in the country.Maruti provides for financing help with the State Bank of India (SBI), CitiBank, Kotak Mahindra Bank and a few othersIn addition to, Maruti Countrywide and Citicorp Maruti Finance are the two joint ventures of Maruti with the 44

leading names like GE Capital and CitiBank that provides for financing and loan assistance for buying all categories of Maruti cars..

MARUTI GENUINE ACCESSORIES

A single point of contact,Hassle-free transactions,Emergency Assistance ,Virtually Cashless Repairs Post accident repairs and insurance support at any dealer workshop. Maruti Suzuki Genuine Parts and Accessories are priced very competitively and offer a customer best value for money and quality. Browse through the complete range of accessories and contact the nearest dealer for more details.

MARUTI TRUE VALUE Maruti has taken its first steps in the pre-owned car business under the brand name of Maruti True Value. Using their technological expertise, network support and the experience they have gained in the last 18 years, the company ensures the customers gets great value and completes the transaction zero hassles.

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ANYTIME MARUTI

Maruti Suzuki has also set up state-of-the-art call centers (operational in Delhi, Gurgaon, Mumbai, Chennai, Bangalore and Hyderabad) Branded Anytime Maruti, this 24 hour help-line clarifies all doubts and queries regarding Suzuki any time of the day or night. The toll free no. is 1800-1800-180.

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PRICE
The Indian Automobile Sector is a perfect competition market whereby any price movement instigated by any of the competitors or any change in government policy causes corresponding movements by the competition and this was the most important point which Marti considers while playing around with product prices. It has developed strategies taking into consideration the overall macro environment in order to ensure long term sustainability in terms of cost. Main strategies followed by the company are: Competitive Advantage Pricing strategy helps both its customers and Maruti. Maruti offers a different model just at a price difference of around Rs. 10,000 for cars ranging between Rs. 3.25 lakhs to Rs. 4.50 lakhs. It offers five different cars in this range and different versions/models of each car. Due to so many options, most of the time customers have an option within their budget or around their budget. Diversifying in different sources of revenue stream generation  Maruti has successfully developed different revenue streams without making huge investments in the form of MDS, N2N, Maruti Insurance and Maruti Finance.  Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank Ltd  Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank Ltd Playing on cost leadership  Maruti is the price dictator in Indian automobile industry. Its the low cost provider of car. The lowest car on road is from Maruti stable i.e. Maruti 800. Maruti achieves this through continuous improvements in operational efficiency and productivity.

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 The company has set itself (and its vendors) the target of a 50% improvement in productivity and a 30% reduction in costs in three years. The ability to keep lowering the prices sets Maruti apart from other players in the league. Maruti spread the overheads over a larger base.  Maruti also made strides in applying IT to manufacturing. A new Vehicle Tracking System improved efficiency on the shop floor and enhanced quality control. The e Nagare system, adopted from Suzuki Motor Corporation, smoothened Marutis Just In Time operations.

PRICING STRATEGY - CATERING TO ALL SEGMENTS Maruti caters to all segment and has a product offering at all price points. It has a car priced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking for up gradation in his car. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Here is how every price point is covered.

Figure 9 : New Maruti Car Models And their prices

MODEL NAME MARUTI A STAR

PICTURE

PRICES IN RS. 3,75,951/To 4,54,093/-

MARUTI ALTO

2,46,993/To 3,46,764/-

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MARUTI ALTO K10

3,21,610/To 3,35,269/-

MARUTI EECO

3,00,863/To 4,01,837/-

MARUTI GRAND VITARA

17,51,789/To 18,86,659/-

MARUTI GYPSY KING

5,47,855/To 5,97,907/-

MARUTI KIZASHI

17,12,000/To 18,15,900/-

MARUTI OMNI

2,20,784/To 2,81,670/-

MARUTI RITZ

4,23,533/To 5,59,264/-

MARUTI SWIFT

4,43,590/To 5,76,649/-

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MARUTI SWIFT DZIRE

5,18,337/To 7,44,166/-

MARUTI SX4

7,38,895/To 9,14,509/-

MARUTI WAGONR

3,48,077/To 4,56,006/-

MARUTI ZEN ESTILO

3,42,865/To 4,36,173/-

The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti 800 is the lowest price car of this company. Alto, Omni, Wagon R, are also the low price car of the company, Zen & Esteem are the mid price car of the company. But Grand Vitara is the high price model of the company. The price of car is decided according to its product variety, quality, design etc.

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PLACE
Place is another key marketing mix tool, it includes various activities the company undertakes to make the product accessible and available to the target customer.Maruti makes its entire car accessible through the direct and indirect channel of distribution i.e. dealers to have a wider geographical coverage. The most innovative approach followed by Maruti is its True Value Service complemented by a huge network of authorized dealers positioned in every part of the country.

Maruti True Value Service Maruti True Value is India No.1 organized pre-owned car brand .True Value is venture of Indias largest automobiles manufacturer Maruti Suzuki India Ltd. Maruti True Value business expands the family of Maruti customers, providing reassurance to existing Maruti customers about resale of their cars and further emphasizes Maruti s commitment towards enhancing customer satisfaction by continuous association during the vehicle ownership life cycle. No one knows your Maruti car better than Maruti - based on this premise, Maruti channelizes its expertise to ensure that transactions in pre owned cars are transparent and fair. Through that, the company endeavors to extend the relationship and emotional connect that it enjoys with the customer. True Value has transparent and fair evaluation process, which is currently missing in the largely unorganized market for pre-owned cars. Maruti True Value processes and systems ensure that the seller gets the right price and is paid promptly. Under True Value, the seller has the option to be paid in cash, or get a True Value car in exchange or a brand new Marti Suzuki car in exchange. True Value category cars bought by Maruti True Value dealers are taken to state-of-the-art workshops.

Maruti has a wide accessibility by setting up of dealers and service stations and thus has gained wide acceptability and large number of customers. It also makes sure that there is no delay in processing the orders and invoicing of the products and the speed of delivery is a major way of gaining competitive advantage, which MUL has capitalized on. 51

At Maruti TrueValue they believe that all customers need should be met under one roof. Thus, when they visit any of the exclusive Maruti TrueValue outlets it is discovered that not only do they get the best value while buying, selling or exchanging but also all other car related needs. Be it insurance, finance, service, accessories or anything else related to cars. MARUTI SUZUKI INDIA-WINNING THROUGH DESIGNING AND DELIVERING The relationship between designing and customer value is one of planning and executing. A customer value proposition consists of the sum total of benefits which a vendor promises that a customer will receive in return for the customer's associated payment. Winning through Excellent Customer Service is the only sure formula for winning more and more customers than competition. Good customer services help the companies in attracting and Keeping many loyal and committed customers for life. Today, Maruti Suzuki is the largest automobile manufacturer in South Asia. It is largely credited for having brought in an automobile revolution to India. Maruti Suzuki has been the leader of the Indian car market for over two decades. Cars More than half the cars sold in India are Maruti Suzuki cars. Customer delight has always been the first priority for Maruti. In regards to this priority, the company always keeps the door of past and future open for its customers so that they can cherish the past and rejoice the upcoming. Over the last few years, Maruti Suzuki strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers.

RURAL MARKETING STRATEGY: Rural Market covers around 3/4th population of the country. So, every sector has a lot of scope including the automobile industry. Automobile penetration in the rural Indian market is negligible. Overall vehicle penetration figures in India are also not all that encouraging either with only 19 in every 1,000 people having a personal mode of transport. Seeing a huge potential in villages and smaller towns where incomes are increasing thanks to good monsoons and high minimum support price for government procurement, Maruti increased its focus on the rural markets in the last couple of years. So, in order to skim the benefit of the potential customer existing in these areas various positioning strategies is being 52

followed by the company:  Apart from recruiting people for the R&D operations,Maruti is also looking to hire people for sales & marketing with an aim to penetrate rural areas in an effective way. The company plans to add another 600 people to its present tally of 7,200 employees of which over half will be engaged in sales and marketing.  To attract rural customers, Maruti Suzuki India is tying up with public sector banks that have both a branch network in these areas and the resource base to make loans. Due to the economic slowdown, private sector banks are going slow on vehicle finance, hence Maruti is moving closer towards public sector banks for providing easy credit to customers the officials are in talks with Bank of India and Punjab National Bank among others for this purpose.  Reiterating that Maruti 800 would not be competing with Tata Nano, which is in the ultra low cost segment, Siddiqui said that Maruti 800 was still a very popular car in the rural areas. It still continues to be among the most popular brands in India and there are no plans to compete in the ultra low cost segment. Dealers and authorized centers: The company has a sales network of 802 centers in 555 towns and cities, and provides service support to customers at 2,740 workshops in over 1,335 towns and cities (as on March 31, 2010). The company is focused on rapidly expanding the sales and service further across the country. The company's Chief General Manager Mr. Shashank Srivastava informed that Maruti's intention is to take these number upto 1,000 service centres in this fiscal year. Maruti, India's No.1 Car maker is all set to widen its business. The auto maker is celebrating its peak sales constituting more than 1lakh cars in May alone and at the same time getting ready to increase the dealerships to ease the distribution of its value for money products. Place strategy at a glance : y y y y 600 New car sales outlets covering 393 cities. 265 Maruti True Value outlets spread across 166 cities. 2628 Maruti Authorized Service Stations, covering 1220 cities. Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat

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Suggested Place strategy:y y y y 400 new car sales outlets in next three years. S150 new true value shops in next three years. 1200 new Maruti Authorized Service Stations in next three years. Tie up with other distributors for Exports.

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PROMOTION
One of the greatest strength of capturing customers is through promotion which deals with the aspect of creating awareness of the product for the customer and Maruti over the time has used this tool in the most efficient manner .The various promotional policy undertaken by the industry has helped it overcome the decreasing market share and ensure loyalty of customers.

Advertisements of Maruti have always revolved around their core strengths of good service network and mileage. Each of their ad has a fair bit of exaggeration and end with a humorous punchline. Some of the memorable ads from the past are the young sardarji kid playing with a Maruti 800 looking toy that ends with a "Petrol khatam hi nahi hota hai" and the ad with Maruti drivers in Ladhak looking for a service station. Each of them led the viewer to expect a funny intuitive answer and leave you with a counter-intuitive one. So far none of the answers seem to come through as clichs. To get it right time and again is really an impressive feat. This years Maruti ad too starts with what seems like impossibility and ends with a punchline that reveals customer insight. There are two versions of this ad and both of them start with an elaborate presentation out of common-man's reach vehicles- a rocket and a yacht. The advertisement which is supposedly in response to the recent fuel price hike. The ad is not about any particular Maruti car, it's about all of them and how they provide superior mileage. The punch line of this ad is "kina diet hay?" (Translates to "how much does it give?"

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Every new venture ,every new scheme and every new product or service undertaken by Maruti is communicated through their advertisement in the most creative way.Maruti also provides road safety instruction along with a toll free contact number both for its service and road accidents.

MARKETING STRATEGY OF MUL IN LATE 1980s

In the initial years, the MUL depended more on its M800 model, so when in late 1990s the new players like MATIZ, SANTRO, and INDICA came into the market with more space and better comfort, at the same price, then Maruti lost a major share of market: To gain back its lost share Maruti launched Zen alto and wagon R, these small segment cars gained huge response for the consumer followed by various promotional strategies has been thereafter to retain their position in the market.

 Maruti was the first company in India which studied the consumer demand and responded to it well.  Market segmentation policy was adopted that targeted different type of consumers with different type of models.  Maruti800 targeted medium income group, while the deluxe model targeted rich income group.  Maruti van targeted businessmen and doctors(ambulance)  The Gypsy targeted the paramilitary forces and the police. 56

Branding Strategies

An analysis of company strategies reviles six models in the management of brand- product (or service) relationship. Each model denotes a certain role for the brand, its status as well as its relationship (nominal and/ or visual) with the products which the brand encompasses. 1. The product brand 2. The line Brand 3. The range Brand 4. The umbrella Brand 5. The source brand 6. The endorsing Brand These six models allow us to structure the brand problem in all sectors: whether it is services, industry, consumer goods or luxury product. These branding strategies facilitate product distinction or serve as indicators of product origin in varying degrees. Philip Kotler, the doyen of marketing writers, whose 'Marketing Management' is standard reading the world over, from his own Kellogg ( of cornflake fame) school of management at Chicago's Northwestern University ( which is number one in the USA today according to the 'Business week' magazine and whose Dean is an Indian, Deepak Jain) to the Faculty of Management Studies at any Indian University, indicates four strategies suitable for the naming of brands. 1) Individual names, such as Nature Valley, Liril, Lifebuoy, Amrutanjan, Red Label, etc. 2) Blanket Family names, such as Campbell's various soups 3) Separate family names such as Johnson's Nutriment or Johnson's Metrecal.

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4) And, finally, company trade name combined with individual product names like Kellog's Corn Flakes etc. Kotler also advises that a brand should suggest something about the product's benefits, like Craftsman, Beauty-rest, Timex, etc, or it should suggest product qualities such as action or colour, like Sunsilk, Thunderbird, etc. Or, it should be easy to pronounce such as Tide, Crest, Lux etc. Or, it should be distinctive like Kodak, Xerox, Mustang etc. At the same time, multinational companies must ensure that the brand name does not have a poor meaning in other countries. A typical case is the Chevrolet Nova car. Nova may mean new in English but in Spanish it means, 'doesn't go'4 Branbach positioned Volkswagen, the German small car designed by Dr Fernands as a protest against America Detroit made cars big cars thereby making the better shaped car, a cult among non-comfort American youth 5 His greatest slogan was "Think small". The Maruti Suzuki has adopted different branding strategies. One of this is given below:Volkswagen and Suzuki could end up becoming an automobile powerhouse in India in the coming years following their decision to go in for a global cross-holding of equity. VW will buy 19.9-per cent stake in Suzuki for 222.5 billion or $2.5 billion by January and the latter would invest half the amount to pick up a stake in the German carmaker. The companies said they had reached a common understanding to establish a close long-term strategic partnership. The goal is to establish a cooperative relationship while respecting each other's independence. Both VW and Suzuki also plan a joint approach to the growing worldwide demand for more environmentally friendly vehicles. Suzuki is one of the biggest car brands in India thanks to the Maruti association for over 25 years now. In contrast, VW is a new entrant and due to launch its first locally made car, the Polo, early next year. VW's arm, Skoda, has been here for some time and carved a niche for itself as a premium brand. Till not so long ago, General Motors had a 20 per cent stake in Suzuki and was tipped to use this as a plank to grow its India business. However, GM decided to buy out the ailing Daewoo business in South Korea and exited Suzuki. 58

How will the Suzuki-VW script pan out in India? For the Japanese carmaker, the biggest plus is access to VW's diesel engine technology. It now uses the GM-Fiat 1.3-litre diesel powertrain but will be inclined to moving to VW in the medium term. Asked about the implications of the deal, Mr R. C. Bhargava, Chairman, Maruti Suzuki, said: The partnership would help in R&D areas and for entering new markets for both companies, where one may not have had presence before. For VW, the partnership will mean a foothold in Suzuki's cost-competitive foundation carefully built over the years. Localisation is the biggest challenge and VW may not have to worry much on this score now thanks to Suzuki and its robust in-house base of critical parts. Sources say VW could even consider sourcing Suzuki's petrol engines till it reaches the kind of volumes that justify local manufacture of its own range. In fact, the possibilities of a Fiat sourcing arrangement for diesel engines cannot be ruled out, they add. Both companies will, however, continue with their individual branding strategies in India. Synergies will help in keeping costs in check or sharing common platforms but the retail efforts will be exclusive. Branding is a deliberate strategy, which refers to the use of a name, term, symbol, design, or a combination of these, to identify goods or services of one seller or a group of sellers to distinguish them from those of its competitors. A trademark is a legal term for a brand name or mark or symbol, that has been registered under law. Advertisers are more interested in creating brand image and brand loyalty, especially for frequently purchased consumer goods, in order to facilitate repe At purchase. Therefore, they find two words better than one. Like Rolls Royce, Mercedes Benz, Benson & Hedges, Black-n-White, Cherry Blossom, Pall Mall, State Express, Federal Express. Park Lane. Even hybrid brand names have been used, especially in India to indicate the origin of the product to a famous foreign one. So, we have Maruti-Suzuki, Hero -Honda, Kawasaki- Bajaj, and BPL-Sanyo. Actully in the last case both are foreign names, the BPL standing for British Physical Laboratories, a name the company would rather not project since the stance of the organization is focused

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on consumer durables rather than scientific products and the name Sanyo is a famous Japanese one.

Maruti Suzuki has adopted the umbrella branding strategy to enhance its business and make his name globally in international market. Some of the advantages and disadvantages that have faced by Maruti Suzuki by using umbrella branding. These are:Advantages: Umbrella branding makes it easy for company to enter the markets because of its already existing reputation. E.g:- Like Maruti Suzuki has a good reputation in the market. So it is easy for the company to enter the new markets.  It allows the core brand to be nurtured by association with products with which it was previously associated.  Appropriate when market operate at a higher level of aggregation.  Capitalization on one single name and economies of scale on an international level. Disadvantages: Since many products have the common name, a debacle in one product category may influence the products of the shared identity.  These brands are difficult to stretch vertically. For example, Maruti Suzuki attempt to go to the upper segment with its Baleno range did not yield good results.  An umbrella brand represents many things about many products, but in the age of specialization what is needed is everything of something.  Products are not insulated from one another. A great deal of caution is needed.

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Maruti Suzuki uses the umbrella branding for the following reasons. These are as mentioned below: It is a useful tool to beat competition.  It can reduce advertising expenses considerably as a single ad can show all the products.  When the brand portfolio has identical brands, family branding/umbrella would be an ideal strategy  The rate of new launches can be the faster in umbrella branding, as the products are identical sometimes, the R&D cost can be reduced. PROMOTION STRATEGY AT A GLANCE:  Advertising j TV Ads j Print Ads j Radio Ads Ghar Aa Gaya Hindustan India Comes Home in Maruti Suzuki.  Information Advertising, alternative Advertising Options  BTL - Sponsorships  TV shows - Indias Got talent  Place Advertising Bill boards  Sales Promotions  Product warranties  Premiums (gifts)  Trade shows  2,628 number of workshops that provide customers with maintenance support across 1220 cities.

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Promotional offers Faced with stiff competition and declining market shares, MUL focused its promotions strategy on targeting two-wheeler owners... 'Change Your Life' campaign In 2003, MUL launched novel offers like "Change Your Life" campaign and also offered vehicle insurance 'for Rupee One only', to attract customers... Television campaigns In 2003, MUL came out with a toy car advertisement that became popular for its simplicity and straightforward message. The advertisement depicted a child playing with a toy car. When reprimanded by his father the child replies, 'Kya karoon papa petrol khatam hi nahin hota' (What should I do? The petrol never finishes)... '2599' offer In 2004, MUL introduced the '2599' offer under which a consumer could buy an M-800 by paying an EMI of Rs 2,599 only, for a period of seven years. The down payment was fixed at Rs 40,000. MUL entered into an agreement with the State Bank of India (SBI), the largest bank in India, to promote this scheme...

'Teacher Plus' scheme To further penetrate into the market, MUL continued to focus its efforts on the rural markets and specific target groups. In 2004, it introduced the 'Teacher plus' scheme, in a tie-up with SBI, aimed at teachers who were interested in buying a new car...

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Maruti 'True Value' There was a gradual decline in the market share of MUL over the years from 1999 to 2004. This happened even though MUL had slashed prices of certain models on a couple of occasions...

Strategy Their strategy is to capture the rural market by employing women who belong to their local community through which their product can reach to local consumers. Their strategy is to provide work for women to create awareness among confined consumers

Process They started with Project Shakti in which their basic aim is to educate a rural person about their products through women who belongs to their own local community and who can communicate well in their language with them. In this way many educated women get work in rural sector and on the other hand HLL Corporate Social Responsibility (CSR) also increases towards society by introducing educative programs for the benefit of the rural sector

KEY STRATEGIC INITIATIVES BY MARUTI

A) TURNAROUND STRATEGIES MARUTI FOLLOWED Maruti was the undisputed leader in the automobile utility-car segment sector, controlling about 84% of the market till 1998. With increasing competition from local players like Telco, Hindustan Motors, Mahindra & Mahindra and foreign players like Daewoo, PAL, Toyota, Ford, Mitsubishi, GM, the whole auto industry structure in India has changed in the last seven years and resulted in the declining profits and market share for Maruti. At the same time the Indian government permitted foreign car producers to invest in the automobile sector and hold majority stakes.

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In the wake of its diminishing profits and loss of market share, Maruti initiated strategic responses to cope with Indias liberalization process and began to redesign itself to face competition in the Indian market. Consultancy firms such as AT Kearney & McKinsey, together with an internationally reputed OD consultant, Dr. Athreya, have been consulted on modes of strategy and organization development during the redesign process. The redesign process saw Maruti complete a Rs. 4000 mn expansion project which increased the total production capacity to over 3,70,000 vehicles per annum. Maruti executed a plan to launch new models for different segments of the market. In its redesign plan, Maruti, launches a new model every year, reduce production costs by achieving 8590% indigenization for new models, revamp marketing by increasing the dealer network from 150 to 300 and focus on bulk institutional sales, bring down number of vendors and introduce competitive bidding. Together with the redesign plan, there has been a shift in business focus of Maruti. When Maruti commanded the largest market share, business focus was to sell what we produce. The earlier focus of the whole organization was "production, production and production" but now the focus has shifted to "marketing and customer focus". This can be observed from the changes in mission statement of the organization:

1984: "Fuel efficient vehicle with latest technology". 1987: "Leader in domestic market and be among global players in the overseas market". 1997: "Creating customer delight and shareholders wealth".

B) CURRENT STRATEGIES FOLLOWED BY MUL

PRICING STRATEGY - CATERING TO ALL SEGMENTS

Maruti caters to all segment and has a product offering at all price points. It has a car priced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking for up gradation in his car. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Here is how every price point is covered.

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Factors that influence the consumers buying decision for the product Cultural Social Culture Subculture Social Class Reference group Family Roles and statuses Personal Age and life-cycle stage Motivation Occupation Perception Economic circumstances Lifestyle Personality and self-concept A. Cultural Factors y y y Value, perception, and preferences Nationalities, religion, race, geographical regions Social class Learning Buyer Beliefs and attitudes Psychological

B. Social Factors y y y Reference Groups Social Class Roles & Status

C. Personal Factors y y y y Economics Circumstances Occupation Age & Life Cycle Stage Lifestyle

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Personality and self-concept

D. Psychological Factors y y y y Motivation Perception Learning Beliefs and attitudes

Business Environment Factors

Political Factors:1. Government continuously slashing tax rates. 2. Government has launched automotive mission plan (AMP). 3. Automatic approval for FDI in automobile sector. Economic Factors:1. Stable economic policies. 2. Easy availability of finance. 3. Economics incentives by local state Government. 4. Lower duties & taxes. 5. Huge domestic demand. Social Factors:1. Lucrative market in rural India. 2. Rapid urbanization and income levels. 3. Skilled labour costs amongst the lowest in world. Technological Factors:1. Four Lakhs pass out every year. 2. Credible local suppliers of high quality components. 3. India emerging as an automobile hub for automobile manufacturing & research.

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Ecological Factors:1. India automotive regulations are closely aligned to world standards on emission & safety. 2. Proximity to major export market. Legal Factors:1. Weighted tax deduction up to 150% on in house R & D activities. 2. Relatively High import Duties

Accolades
 
y No.1 in Initial Quality Study - JD Power Total Customer Satisfaction - TNS Study. 67

Car of the Year- BS Motoring .

Car of the Year- CNBC Auto car.

Best Value for Money Car .

Viewer's Choice- CNBC Auto car.

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RESEARCH METHODOLOGHY
The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process, which identifies and defines problems, within specified boundaries. It employs well-designed method to collect the data and analyses the results. It disseminates the findings to contribute to generalize able knowledge. The characteristics of research presented below will be examined in greater details later are: Systematic problem solving which identifies variables and tests relationships between them, Collecting, organizing and evaluating data. Logical, so procedures can be duplicated or understood by others Empirical, so decisions are based on data collected Reductive, so it investigates a small sample which can be generalized to a larger population Replicable, so others may test the findings by repeating it. Discovering new facts or verify and test old facts. Developing new scientific tools, concepts and theories, this would facilitate to take decision.

TITLE OF THE PROJECT

Marketing mix of maruti suzuki

OBJECTIVES OF THE STUDY

 To identify the satisfaction level of customer  To find out the buying behavior of the customers coming in v-mart  To find out the customers response towards v-mart.  Are they satisfied with the price and quality of the product?  To know the image of retail stores among the available stores in the market.  Learning who your customers are and what they want.

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SCOPE OF STUDY
The scope of this research is to identify the buying behavior of customers v-mart. This research is based on primary data and secondary data. Due to time constraint only limited number of persons contacted. This study only focuses on urban buying behavior of customers because the research conducted in v-mart. The study does not say anything about rural buying behavior of customer because rural norms/status/attitude & acceptance of the rural customers differs with urban customers. The scope of research is limited for KOTA. It provides help to further the research for organized retail sector in KOTA area. It aims to understand the skill of the company in the area like technological advancement, competition in management.

IMPORTANCE OF STUDY

The study shows customers buying pattern and satisfaction with v-mart in Kota area. Its provide guideline for further research in area for organized retail. Research says about customer buying behavior towards V-MART in Kota. The study rate of customer satisfaction level with v-mart for Kota area. The research is also important to identify Market size, growth and Market Potential of v-mart. The research shows future Scenario of V-MART in current perspective. The study shows Opportunities and challenges for V-MART respect of internal & external environment. Research says about main competitors in the field of organized retail sectors. The study provide guideline to further extension of v-mart .The study provide help to know the customers satisfaction with v-mart stores.

TYPE OF RESEARCH
(DESCRIPTIVE RESEARCH) The main goal of this research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate. In v-mart data and information are collected to study the buying behavior and satisfaction level of customer. 72

SAMPLING TECHNIQUE:
The sample is selected in a random way. It was collected through personal visits to the persons in v-mart by formal and informal talks and through filling up the questionnaire prepared. The group has been selected and the analysis has been done on the basis statistical tools available.

SAMPLE SIZE:
Random Samples are collected from 100 respondents to draw a meaningful conclusion

SAMPLE DESIGN:
Data has been presented with the help of bar graph, pie charts, line graphs etc..

COLLECTION OF DATA
There are two methods of collection of data which are as follows:1. Secondary Method 2. Primary Method

Secondary Method
 The methodology followed in conducting the study is to collect data regarding VMART.  The second information is taken from company document available on websites.  The other related journals information and industry associations sites have also been viewed.  The facts & data were taken from magazines and annual report of company.

Primary Method
Questionnaire Keeping in view the objective of study a questionnaire. Interview Information was also obtained by conversation with Customers .they were interviewed personally.

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ORGANISING THE DATA

The information / data collected during data process are organizing and presented in a comprehensible sequence to make the understandable. The data, thus obtained is then edited, classified and put in a tabulated form to make it understandable.

PRESENTATION OF DATA
After organizing the data, it is ready for presentation. These are presented in different modes like charts, tables, and diagrams etc. the main objective of presentation is to put collected data into a easy reliable form.

ANALYSIS OF DATA
After organizing and presenting the data, the researchers then has to proceed towards conclusions by logical inferences. The whole data is then analyzed: 1. By bringing raw data to measured data. 2. Summarizing the data 3. Applying analytical methods to manipulate the data so that their inter relationship and quantitative meaning become evident.

LIMITATIONS
Although every effort has been made to collect the relevant information through the source available, still some relevant information could not be gathered.  Limitation of data  Limitation of time  Inhibitions of the respondents  Sample size is limited due to the limited period allocated for the survey.  Getting accurate responses from the respondents due to their inherent problem is difficult.  Respondents may not be interested to give the data.  Sometime respondents are not taking interest in such type of surveys therefore there is chance that they might be giving wrong information.  The respondents are free from all barriers so he/she can give his/her opinion which may not be true in many occasions. 74

Analysis and interpretation

1. Which product of maruti suzuki do you own?

According to our survey wagonR is the most used product of maruti Suzuki with 20% people using it, followed by alto with 18% people using it and swift with 11% people using it at present.

Sales
20% 31% wagonR alto 18% 10% 10% 11% swift zen estilo maruti 800 others

Figure 10 : sales

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2. Which product of maruti suzuki would you like to own?

30% people want to own a SX-4 car, followed by 27% people wanting to own a swift dzire.

demand
10% 6% 7% 30% SX-4 swift dzire swift 20% 27% zen estilo wagonR other

Figure 11 : demand

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3. Name any 5 products of maruti suzuki ?

Maruti 800 still stands as the most popular model of maruti india with 25% taking its name. wagonR and alto stands at number 2 and 3 respectively with 22% and 15% people taking their name.

popularity
10% 11% 25% maruti 800 wagonR 17% 22% 15% alto zen estilo swift other

Figure 12 : popularity

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4. How do you find the prices of maruti suzuki cars?

58% respondants find the prices of maruti Suzuki cars average, followed by 30% people of the opinion that the prices of maruti Suzuki cars are high.

prices
70 60 50 40 30 30 20 10 0 very high high average low very low 8 3 1 prices 58

Figure 13 : prices

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5. What attracts you the most about maruti suzuki cars?

35% people said that they prefer maruti Suzuki cars because of their prices. 20% and 18% respondants were of the view that they prefer maruti Suzuki cars because of their performance and engine quality respectively.

what attracts the most

5% 35% price performance engine quality 18% 20% looks promotional offers any other

7% 15%

Figure 14 : what attracts the most

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6. From where did you get the idea of purchasing the maruti suzuki car?

48% people came to know about the maruti Suzuki cars from the electronic media followed by 30% people getting to know about these from other people and 15% came to know about them from print media.

from where did you get the idea to purchase

7% 30% 48%

electronic media print media word of mouth

15%

any other

Figure 15 : source of idea

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7. Would you like to repurchase a maruti suzuki car?

When asked about the repurchase opinion about the maruti Suzuki cars, 78% respondants were of the view that they would like to purchase a maruti Suzuki car once again. 22% people wanted to invest in the cars of other brands.

repurchase opinion
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no 22% repurchase opinion 78%

Figure 16 : repurchase opinion

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8. Other than this, what other brands would you like to invest in?

Hyundai and Honda stand as the biggest competitors of maruti Suzuki with 23% and 24% people wanting to invest in them. Other prominent competitors are tata, Toyota, Chevrolet etc.

competitors
5% 13%

23% hyundai honda

20% 24% 15%

tata toyota chevrolet any other

Figure 17 : competitors

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9. Are you satisfied with the product you own?

92% people were fully satisfied with the maruti Suzuki cars they own. Only 8% were not satisfied with the maruti Suzuki cars.

satisfaction
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no 8% satisfaction 92%

Figure 18 : satisfaction

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10. How do you find the service at maruti service stations?

62% people said that they find the service at maruti service stations good. 31% said that they find it above average. It is worth noting that not even a single respondant found the service at maruti service stations poor.

service at service stations

70% 60% 50% 40% 31% 30% 20% 10% 0% good above average average below average poor 5% 2% service at service stations 62%

0%

Figure 19 : service at service stations

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11. Have you ever used the other services provided by maruti?

62% people replied that they have used the other services provided by maruti while 38% havent used any of these services.

use of other services

70% 62% 60% 50% 40% 30% 20% 10% 0% yes no 38% use of other services

Figure 20 : use of other services

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12. If yes, which services have you used?

42% people out of total 62 people have used maruti insurance. 30% have used maruti finance and 28% have used anytime maruti services.

services used

28% 42% maruti insurance maruti finance anytime maruti 30%

Figure 21 : services used

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13. Are you aware of the tag line of maruti Suzuki?

Out of total 100 people surveyed, only 56% people were aware of the tag line of maruti Suzuki. Rest 44% were totally unaware of it.

awareness for the tag line

60% 50% 40% 30% awareness for the tag line 20% 10% 0% yes no 56%

44%

Figure 22 : awareness for the tag line

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14. Classification of users on the basis of age

Out of total 100 people surveyed, 15 were below the age of 20, 42 people were of 20-40 years of age, 38 belonged to 40-60 years class n rest 5 were abve the age of 60.

age wise classification

5 15

38

below 20 20-40 42 40-60 60 and above

Figure 23 : age wise classification

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15. Classification of users based on gender

Out of total 100 respondants, 22 were females and rest 77 were males.

gender based classification

23

males females 77

Figure 24 : gender wise classification

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FINDINGS
y According to our survey wagonR is the most used product of maruti Suzuki with 20% people using it, followed by alto with 18% people using it and swift with 11% people using it at present. 30% people want to own a SX-4 car, followed by 27% people wanting to own a swift dzire.

Maruti 800 still stands as the most popular model of maruti india with 25% taking its name. wagonR and alto stands at number 2 and 3 respectively with 22% and 15% people taking their name 58% respondants find the prices of maruti Suzuki cars average, followed by 30% people of the opinion that the prices of maruti Suzuki cars are high.

35% people said that they prefer maruti Suzuki cars because of their prices. 20% and 18% respondants were of the view that they prefer maruti Suzuki cars because of their performance and engine quality respectively. 48% people came to know about the maruti Suzuki cars from the electronic media followed by 30% people getting to know about these from other people and 15% came to know about them from print media.

When asked about the repurchase opinion about the maruti Suzuki cars, 78% respondants were of the view that they would like to purchase a maruti Suzuki car once again. 22% people wanted to invest in the cars of other brands. Hyundai and Honda stand as the biggest competitors of maruti Suzuki with 23% and 24% people wanting to invest in them. Other prominent competitors are tata, Toyota, Chevrolet etc.

92% people were fully satisfied with the maruti Suzuki cars they own. Only 8% were not satisfied with the maruti Suzuki cars.

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62% people said that they find the service at maruti service stations good. 31% said that they find it above average. It is worth noting that not even a single respondant found the service at maruti service stations poor.

62% people replied that they have used the other services provided by maruti while 38% havent used any of these services. 42% people out of total 62 people have used maruti insurance. 30% have used maruti finance and 28% have used anytime maruti services.

Out of total 100 people surveyed, only 56% people were aware of the tag line of maruti Suzuki. Rest 44% were totally unaware of it.

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CONCLUSION
The price of a car is just one-third of what it cost you over its lifetime. Running and maintaining it make up the other two-thirds. Take into account resale value and its real cost becomes clear. Maruti Suzuki stands for value as much as it stands for performance. In spite of rising input costs, we try our best to keep prices down. Their running costs and resale values are unbeatable too. Nothing matches the delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki owners stated that they would definitely recommend the car they drive to someone else. Infact, you dont buy a Maruti Suzuki. You invest in it.

After the rash of new cars launches the past two years, the relative lull in the auto industry is showing up in the customer satisfaction indices. According to the 2005 four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist division of TNS Automotive, the automobile ownership experience or customer ownership experience has declined in all areas compared to 2004. The study is one of the largest syndicated automotive studies in India, representing the responses of more than 7,000 new car buyers. The comprehensive study covers over 50 models with customer evaluations taken in the key areas of sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image, and cost-of-ownership. The TCS index score provides a measure of satisfaction and loyalty a given model enjoys with its customers. According to TNS Automotive, the decline is predominantly for older, small and entry mid-size car models. The ageing of these models seems to be posing a stiffer challenge for manufacturers to sustain past performance levels at a time when customer expectations are rising sharply. It can clearly be said on the basis of all the study conducted so far that advertisement play a major role in promoting among the customers. It is immaterial that customers are from which family status or background. All of them go in for advertisement when it comes to the purchase decision making of car or a given product. Advertising that distribute information to consumers that can help them make better economic decisions than they would in absence of that information provides a positive economic service. Of course, any advertising that, by deception or by any other means, induces consumers to make sub optimal decisions provides a corresponding negative economic service. Some advertising is of more value than others along this dimension.

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It is unreasonable to separate the economic and social factors to increase the sale. It is clear now that advertising enhances buyer decision-making by providing information and supporting brand names. It provides and efficient means to firms to communicate with their customers. By generating various product associations, advertising can add to the utility of a buyer receives from a product. It supports the various media has the largely unrealized potential to reduce extremes in the levels of consumer buying. Customer satisfaction is also the important factor, which affects the financial position & goodwill of the company. Customer demands are dynamic, but its consideration is necessary for every company to make existence into the market.

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SWOT Analysis
STRENGTHS 1. Bigger name in the market. 2. Established distribution & after sales network. 3. Understanding of the Indian market. 4. Ability to design product with differentiating features. 5. Brand Image. 6. Experience & Knowledge how in technology. 7. Trust of People. 8. Maruti Udyog Ltd. is the market leader for more than decade. 9. Has a great dealership chain in the market 10. Better after sales service. 11. Low maintenance cost of vehicle.

WEAKNESSES 1. Lack of experience in foreign market. 2. Comparatively new to diesel cars. 3. People resistant to upper segment models. 4. Heavy import tariff on fully built imported models. 5. Exports are not that good. 6. Lesser diesel models in the market compare to others. 7. Global image is not that big.

OPPORTUNITIES 1. Increased purchasing power of Indian middle class family. 2. Government subsidies. 3. Tax Benefits. 4. Prospective buyers from two wheeler segment.

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5. Great opportunities to go global with success of Swift and SX4 allover. 6. Introduction of more diesel models. The diesel car segment is growing. 7. Opportunity to grow bigger by entering into bigger car markets. 8. Already a market leader so great opportunity to be the king of market in every stage of industry.

THREATS 1. Foreign companies entering market; so a bigger threat from MNCs. 2. Competition from second hand cars & TATA Nano. 3. Threats from Chinese manufactures. 4. To the market share, as many big names are coming in the industry 5. There is hardly any diesel models 6. Rs. 1 lakh Rs. 1.5 lakh car

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KEY SUCCESS FACTORS (1)The Quality Advantage Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters. (2)A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car. (3)Quality Service Across 1036 Cities In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most userfriendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. (4)One Stop Shop At Maruti Suzuki, customers will find all car related needs met 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 car related needs. (5) The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a

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Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines. (6)Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. (7) Technological Advantage It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuelefficient 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.

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RECOMMENDATIONS
y Maruti should regard as generous discount offers during Festival Season like Navratra, Dusshera, and Diwali to gear-up their sales

Maruti should advertise in Sports because sports are increasingly cutting into the share of mass entertainment channels

Maruti can start Money Bond Scheme instead of giving Cash Discount with more value. Customers eligible for an income bond, encashable after a 15year period.

More test drives should be offered.

Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer.

Should put in more efforts to promote Maruti Finance , Autocard and Accessories.

Today the prices of petrol are increasing day by day. Company should manufacture more & more verities of Diesel, Gas engine vehicle.

Easy Finance scheme should launch more and more. Because easy finance is most competitive tool to increase the sale.

Proper service facility is also the key factor, which contributes in the increment of sale. A company can increase its sale by providing good & proper service facility. In this case, Maruti is the leading company.

Company should manufacture the car model as per the requirement of the customer. Customer satisfaction is the pivot of the economy. So, company should concentrate on the satisfaction level of the customer. 98

When it comes to increasing reputation or creating brand image for a car, TV should be given superiority than any other medium what so ever.

Sports people were found to be of the highest credibility by most of the people. So, they should be used more and more in advertisement of Cars.

People are mostly attracted by patriotism theme and cultural theme in ads. So, this should be used exclusively to achieve greater success as is evident by the success of Maruti Udyog Limited already.

TV was found to be the most attractive advertising channel by people amongst all used by various automobiles companies.

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BIBLIOGRAPHY
BOOKS Marketing management by Kotler Philip Strategic Management and Business Policy by y y y Thomas L. Wheelen J. David Hunger Krish Rangarajan

NEWS PAPERS THE ECONOMIC TIMES THE TIMES OF INDIA MAGAZINES BUSINESS INDIA INDIA TODAY WEBSITES www.google.com www.wikipedia.com www.gaddi.com www.cardekho.com

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QUESTIONAIRE MARKETING MIX OF MARUTI SUZUKI

NAME: GENDER: PROFESSION: AGE: . .

1. Which product of maruti suzuki do you own? 2. Which product would you like to own? . 3. Name any 5 products of maruti suzuki. a) . b) . c) . d) . e) . 4. How do you find the prices of maruti suzuki cars? Very high high average 5. What attracts you the most about maruti suzuki cars? Price engine

low

very low

quality

mileage

looks promotional offers any other 6. From where did you get the idea of purchasing the maruti suzuki car? word of mouth print media electronic media 7. Would you like to repurchase a maruti suzuki car? yes no 8. If yes, then which model would you like to purchase? 9. If no, then which brand would ypu like to invest in? Hyundai honda

any other

tata

toyota

chevrolet mahindra any other 10. Are you satisfied with the product u own? yes no 11. How do you find the service at maruti service stations? Good above average average below average 12. Are you aware of the other services provided by maruti? Yes no

poor

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13. If yes, what are they? 14. Have you ever used any of these following services? Maruti insurance maruti finance 15. Are you aware of the tag line of maruti suzuki? Yes no 16. If yes, what is it?

anytime maruti

17. Any suggestions that you would like to give for the company?

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