Sales and Distribution Management ( Maruti Suzuki Alto)

Assignment on Sales and Distribution Management

Submitted to : Prof. Kishor Barad

Submitted by : Vidit Bhavsar Enrollment no : 1011012074

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Sales and Distribution Management ( Maruti Suzuki Alto)

Indian Automobile Industry in 2011 The calendar year 2010 was great for the Indian auto industry and it did bring in many surprises from the day one of 2010. The Indian car sales were at its best boosting the morale of many car manufacturers. The year 2010 did bring in lot of hope in the auto Industry after a rough late 2008 and early 2009. If the April to January 2011 combined production figures are considered, a straight jump of 28.86% is observed as compared to that of same period last year but on the other hand if the cumulative production for the month of January 2011 is measured against the 2010 January ones, a straight drop of 20% will be seen. The automobile industry faced a maximum growth in the year 2010 which resulted in bulk of launches in the Indian automobile market. If the segment wise growth is considered, the passenger car market faced a remarkable growth of 30.97% in the period of April-January 2011 as against that of last year performance. The passenger vehicle segment faced a straight hike of 31.31% whereas the Utility Vehicles marked improved by 20.59% and the Multi-Purpose Vehicles marked a high swing of 46.53% during the same period. Looking at the sales figure marked by passenger car segment in the beginning of this new year, a jump of 26.28% is achieved as compared to the same period last year whereas if the total passenger vehicle segment is considered, a total jump of 24.68% is achieved. Now considering the commercial Vehicles market in consideration, an upswing of 31.23% was achieved in the period of April-January 2011 as against the same period in the year 2010. looking at the medium & Heavy Commercial Vehicles (M&HCVs), a hike of 37.69%, in case of light Commercial Vehicles a jump of 26% was achieved. A remarkable growth of 13 per cent was achieved in this January sales figure against the same period last year. (Maruti Suzuki India Limited) Company profile Maruti Suzuki India 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

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Sales and Distribution Management ( Maruti Suzuki Alto)

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 Net Sales Year Net Sales

2005-06 1,20,034 2006-07 1,45,922 2007-08 1,78,603 2008-09 2,03,583 2009-10 3,01,198 2010-11 3,61,282 The company is listed on Bombay Stock Exchange and National Stock Exchange.

Customers
The population belonging to the middle and upper middle class of Ahmedabad city are the customers of Maruti Suzuki Alto and Alto K10. According to the socio economic classification, people belonging to A2,B1 and B2 class are most likely to buy Maruti Alto and Alto K10. Their is a shift in consumer preferences, they are now more likely to buy small cars because of the rise in fuel prices and increased rate of interest. The people belonging to the above mentioned class, who want to use car for their daily use are most likely to buy Alto because it is fuel efficient, low priced, comfortable and having less maintaniance.

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Sales and Distribution Management ( Maruti Suzuki Alto)

Product detail

Model Alto K10 LXI Alto K10 VXI Alto Alto LX Alto LXI

On road price 347838 362203 268340 303004 322351

Engine 1000 cc 1000 cc 800 cc 800 cc 801 cc

Mileage 20.2 kmpl 20.2 kmpl 19.73 kmpl 19.73 kmpl 19.73 kmpl

Power steering yes yes No No yes

Power window No Front No No No

AC, Heater Yes Yes No yes yes

Fuel type petrol, cng petrol, cng petrol, cng petrol, cng petrol, cng

Competitors
Main competitors for Maruti Suzuki Alto and Alto K10 in the market are Hyundai Santro, Chevrolet Spark.
Model Santro GL Santro GL plus On road price 311732 383925 Engine 1086 cc 1086 cc Mileage 11.8 kmpl 11.8 kmpl Power steering No yes Power window NO Front AC, Heater No yes Fuel type petrol,cng petrol,cng

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Santro GLS Spark 1.0 Spark 1.0 LS Spark 1.0 LS LPG Spark 1.0 LT Spark 1.0 LT LPG Nano CX BS II Nano LX BS II Nano standard

407742 323490 359553 383490 381735 405781 157434X 204722 X 147135X

1086 cc 995 cc 995 cc 995 cc 995 cc 995 cc 600 cc 600 cc 600 cc

11.8 kmpl 18 kmpl 18 kmpl 13.2 kmpl 18 kmpl 13.2 kmpl 24 kmpl 24 kmpl 24 kmpl

yes No yes yes yes yes No No No

yes No Front Front Front Front No No No

yes yes yes yes yes yes yes yes No

petrol,cng petrol, LPG petrol, LPG petrol, LPG petrol, LPG petrol, LPG petrol petrol petrol

Promotional activities
Maruti has used a number of promotional tools say internet website like carzoo.com, gaadi.com, cardekho.com etc. Its has been also using social networking sites like facebook, twitter etc. Maruti also gives television adds and big hoardings. Maruti Suzuki distributors and company itself promote themselves through auto fairs and news paper add. Corporate Social Responsibility Maruti Suzuki has adopted a CSR policy, which serves as a guiding tool for the management and the employees in steering Maruti Suzuki towards long term sustained growth in harmony along with the interests of the stakeholder. The role of the CSR department is to professionalize CSR activities in Maruti Suzuki and strengthen the mechanisms involving the activities. Significant efforts have been taken to contribute to society at large, through its corporate activities, especially in the areas of Road Safety and Vocational Training. Maruti Suzuki has set up dedicated teams with requisite expertise to steer the social projects. Stake holders Employees Employees are at the core of Maruti's growth. They dream and help the company grow and are the pillars on which the company is built. We have a lot of programmes to engage the employees and their families to build communication and friendship. Activity Details A robust communication tool used for two way Divisional Communication Champions and communication between top management and Meetings employees. Human Resources Initiatives Development HRIDC consists of employees picked from various
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Activity

Sales and Distribution Management ( Maruti Suzuki Alto)

Committees (HRIDC)

Employee counseling, coaching and mentoring

Parivar Milan

Family Connect Programme

Inter Divisional Cricket, Football and Badminton Tournaments Motor Sports Events

Family Day Function Suggestion Scheme and Quality Circles (QCs)

level. All policies impacting employees are discussed and evaluated by HRIDC before final approval and implementation. Senior management mentors new employees by providing them with guidance and support. Besides, senior team members help new members adapt to the new work culture. To promote a feeling of mutual trust, families of supervisors and technicians are invited to visit the factories and interact with the management. This programme aims at familiarising the spouses of executives with the organisation and work place. Interpersonal communication is promoted through Transactional Analysis and an innovate method of Image Theatre. These tournaments are aimed at helping employees to showcase their talent and pre-empt any monotony of the everyday routine. Employees are encouraged to participate in motor sports events of their choice viz. Maruti Suzuki desert storm and Maruti Suzuki Raid-de-Himalaya. Family day celebrations are held each year to provide an opportunity of entertainment to employees and their families. A structured programme that empowers employees to improve their work place and contribute to the company in its improvement activities. A leadership development tool for feedback, training, job rotation and succession planning. The tool covers top management as well.

360 Degree Feedback

Customers Customer delight has been driving our core business. As we aim to grow larger with higher objectives, we realize the key factor is customer delight. We have been developing products in line with customer expectations and changes in lifestyle. We are happy to say that over the last 25 years, we have been listening to the customer and changing with the needs, which is the key driver for growth. Engagement with the customer Activity Brand Track Activity Details Customer's preceptions about the company's product brands are gauged through customised surveys and the
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Customer Meets

Customer Satisfaction Feedback

Mega Services Camps

Customer Care Cell Product Clinics

feedback is used for product communication, among other things. Customer meets are organised by Regional Managers in their respective areas along with dealers, to gauge customer satisfaction level. Feedback is taken from customers on the lines of JD Power CSI and SSI Surveys and analysed to take suitable measures for upgrading products and services. These camps are organised jointly by dealers and authorised service stations to get first hand customer feedback and to resolve the computer's complaints on the spot. Customers can register their complaints through a 24X7 toll free number. These complaints are then forwarded to the concerned functions for necessary action. These clinics are orgainsed to get product specific feedback from customers.

Shareholders and investors While taking decisions on products, targets, costs and capital investments, the company ensures that funds are prudently utilized and effectively channelized to focus on growth oriented projects. The company strategically invests in products, services and facilities that are safe and beneficial for the society and other stakeholders. Engagement of shareholders Activity Annual General Meeting (AGM) Activity Details The company convenes AGM in accordance with the Companies Act. Tools used for communication with investors include press release, emails and telephone calls. One to One meetings: Investors regularly interact with the IR team, Chief Financial Officer and Managing Director. Investors Meets: IR team participates in Investor's Meet organised by various research houses. Feedback from investors is shared with the top management.

Investors Relation (IR) Cell: The company has a dedicated IR team to disseminate company information to investors and to share their concerns with the top management.

Dealers and suppliers The company has initiated programmes to upgrade its suppliers to meet global quality levels. The suppliers are periodically engaged in quality circles, manufacturing practices, HR Policies, Industrial relations and financial matters. Engagement of Suppliers
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Sales and Distribution Management ( Maruti Suzuki Alto)

Activity Maruti Centre for Excellence (MACE)

Guidance on Financial Matters

Supplier Club

Quality Month

Value Analysis Value Engineering (VA-VE) month

Quality Circle (QC) competition

JV HR Meeting

Vendor Conference

Vendor Gemba:Over 500 vendor CEOs and their senior management members have participated in the program so far

Activity Details MACE was set up by the company with an objective to upgrade suppliers and share their own best practices to enhance their competitiveness. The company regularly monitors financial health of suppliers and imparts guidance on financial matters such as currency hedging, fund management, Base III norms etc. A platform used for discussing various operational and social issues by the top management of selected suppliers with Maruti Suzuki's top management. November is observed as the quality month. Among other things, Maruti Suzuki's top management visits suppliers and audits their quality systems to impart guidance. July is observed as VA-VE month. Maruti Suzuki's senior management and engineers visit suppliers to generate VA-VE ideas. This initiative enhances cost competitiveness and improves profitability of suppliers. Suppliers present their best QC projects at an annual competition at Maruti Suzuki and the best performing supplier is awarded. Maruti Suzuki HR team and HR heads of JV companies meet to review issues related to HR and Industrial Relations and to decide action plans for ensuring cordial Industrial Relations. Maruti Suzuki's top management and Supplier's CEO share their thought and best practices. Vendor CEOs are invited to visit Maruti Suzuki facilities as part of a structured programme. Best practices followed by the company are showcased to them, and they formulate action plans for their units based on key learnings. During these visits, Vendor CEOs also get an opportunity to interact with senior company officials.

Local Community The company has adopted four villages around the Manesar plant. A dedicated team from the company along with an NGO works jointly with villagers for their well being.

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Sales and Distribution Management ( Maruti Suzuki Alto)

Activities for Environment Activity Details CSR team along with plant HR team interacts with elected community leaders of adopted villages and Engagement with elected community leaders jointly works on planning and execution of social projects. Health camps are organised for the benefit of Engagement with women and elderly people women, children and elderly in association with Primary Health Centre (PHC) and the employees through health camps State Insurance (ESI) Health Care. The company engages with unemployed youth and facilitates their vocational training to enhance their Engagement with village youth employability. The company creates avenues for government Engagement with school children school children to realise their potential. Community feedback is collected through a questionnaire on environmental impacts of the Community feedback on environment company on the community. This feedback is evaluated and necessary action is taken. Activity

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