PREFACE

As a Student of B.B.A. (Hons.) 16th Batch, the survey on customer satisfaction on Maruti has been provide to me by my department, under the guidance of Miss. Pragya Bhargav. I conducted this work in Sagar City. It presents synoptic review the research methodology. Objective, limitations and suggestions regarding the existing product. A field survey was conducted with the help of questionnaire and personal interview in Sagar City. The main aim of this survey is to know about the level of constomer satisfaction regarding Maruti in Sagar City. it also includes product utility. People behavior, Satisfaction, imagination, company policies and customer problems. This Survey is made to answer the expose above motioned topies through statistical representation, pie diagram and graphs.

(KHUSHBOO GUPTA) B.B.A IInd Semester

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected HOD Prof. Y.S. Thakur , Head of Department, Miss Pragya Bhargva Department of Business Management , Dr. Hari Singh Gour University Sagar for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of Miss Pragya Bhargva she rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers , family members , friends and all those whose encouragement has infused courage in me to complete to work successfully.

(KHUSHBOO GUPTA) B.B.A IInd Semester

2

DELCLARATION BY THE CANDIDATE

Date : I declare that the project report titled " MARUTI" on Market Segmentation is nay own work conducted under the supervision of Miss Pragya Bhargav Department of Business Management Dr. Hari Singh Gour Central

Uniersity Sagar To the best of my knowledge the report does not contain any work , which has been submitted for the award of any degree , anywhere.

(KHUSHBOO GUPTA) B.B.A II Semester

CERTIFICATE
The project report titled "MARUTI" been prepared by MR. KHUSHBOO GUPTA BBA IInd Semester , IInd Batch under the guidance and supervision of Miss Pragya Bhargav for the partial fulfillment of the Degree of B.B.A.

Signature of the Supervisor

Signature of the Head of the Department

Signature of the Examiner

CONTENTS
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S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9.
10 11 12 13 14 15 16 17 18

TITLE
Preface Acknowledgement Declaration of the Candidate Certificate Introduction of Maruti History of Maruti Scope of the Study Limitation of the Study Research Methodology Market Segmentation Company Comparison Data analysis & Interpretation Swot Analysis of Maruti Findings Suggestions & Recommendation Conclusion Bibliography Questionnaires

MARUTI UDYPG LIMITED

Maruti is India's largest automobile company. The company, a joint venture with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry.

Today, Maruti is India's largest automobile company. This feat was achieved by the missionary zeal of our employees across the line and the far-sighted vision of our management. The Company Mission: To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export markets. The Company Vision: We must be an internationally competitive company in terms of our products and services. We must retain our leadership in India and should also aspire to be among the global players. Their focus is on:

Building a continuously improving organisation adaptable to quick changes

Providing value and satisfaction to the customer Aligning and fully involving all our employees, suppliers and dealers to face competition

Maximising Shareholder's value Being a responsible corporate citizen

At Maruti, they have a clear perspective on manpower. They see it as a unique resource, in the sense that optimal productivity of other

resources depends largely on the way human resources are utilised. The basic philosophy of management that underlies the Maruti culture is that all employees of the company should be moulded into a team which then strives as one, to achieve commonly shared company goals and objectives. To make this philosophy tenable, the Company takes several initiatives. Inputs are sought from

employees at all levels. They believe that everyone should contribute to the formulation of company policies, goals and objectives. Secondly, at Maruti, they encourage leadership in the best sense of the word. According to us, a leader is one who must be impartial, must have the ability to rise above his own subjectivity, and, most importantly, must practice what he preaches. They understand that the process of creating a sense of belonging that all employees can identify with is a lengthy one. To ensure that this translates into concrete reality, they have taken several simple but specific and well thought out measures. The first step in this direction has been the introduction of a common uniform for all employees. Another measure is the creation of a common canteen where all employees have lunch, stand in common queues, and sit on the same table. Common toilets, common transport and similar facilities for all levels of employees are other measures that reinforce their emphasis on genuine equality in the workplace. At Maruti They do not believe in the notion of organisational hierarchies. As a matter of fact, the management structure and

systems in Maruti have been designed to promote decentralisation of authority. Maruti has a horizontal management structure with only four functional levels of responsibility to facilitate quicker decision making. Another focus area of the Maruti culture is the maintenance of a smoothly functioning communication network. Maruti believes that communication channels between labour and management cannot simply consist of having a labour representative on the Board of the Company. They have faith in the ability of labour to effectively participate in management and make constructive suggestions. To encourage this, they ensure that there is a thorough dissemination of information at all levels, through newsletters or via a letter from the Chief Executive to all employees. Meetings with the Union are held regularly, and programmes being contemplated by the Company are discussed with the Union. The Sahyog Samiti, a collection of representatives of non-unionised employees, training programmes in Japan, Quality Circles, productivity-linked incentive schemes, and an ethos of discipline and teamwork, all contribute to the Maruti culture. Several measures of performance have made amply clear that Maruti has established a truly healthy work culture. They have met all project and performance targets since inception. Their

productivity levels are constantly improving. The Company has had good labour relations with employees from the very beginning, and

they have been successful in the export market. Yet, the Maruti culture is one that does not believe in resting on its laurels. They adhere to the spirit of Kaizen, which states that constant improvement is always possible. The most basic tenet of

productivity that they hold dear is that " Today should be better than Yesterday and Tomorrow should be better than Today". Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A licence and a Joint Venture agreement was signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives of MUL then were:

Modernization of the Indian Automobile Industry. Production of resources. fuel-efficient vehicles to conserve scarce

10

Production of large number of motor vehicles, which was necessary for economic growth.

Core Value

Customer Obsession Fast, Flexible and First Mover Innovation and Creativity Networking and Partnership Openness and Learning

Vision The leader in the India Automobile Industry, Creating Customer Delight and Shareholders Wealth; A pride of India Technological Advantage We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car. Our other innovation has been the introduction of Electronic Power Steering (EPS) in select models. This results in better and greater maneuverability. In other words, our cars have become even more pleasurable to drive.

11

Production/R&D Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to make a car. More importantly, with an incredible range of 11 models available in 50 variants, there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream. Production Milestones 1st vehicle produced, December 1983 1,00,000 vehicles produced by August, 1986 5,00,000 vehicles produced by June, 1990 10,00,000 vehicles produced by March, 1994 20,00,000 vehicles produced by October, 1997 30,00,000 vehicles produced by June, 2000 40,00,000 vehicles produced by April, 2003 55,00,000 vehicles produced by April 2006 75,00,000 vehicles produced by April 2009 85,00,000 vehicles produced by April 2010

12

13

MILESTONES 2005 2004 The fiftieth lakh car rolls out in April, 2005 Growth in overall sales by 15.8% New (non A/C) variant of Alto Alto becomes India's new best selling car LPG variant of 'Omni Cargo' Versa 5-seater, a new variant Baleno LXi, a new variant Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago 2003 New Suzuki Grand Vitara XL-7 Redesigned and all-new Zen New upgraded WagonR Enters into partnership with State Bank of India Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times 2002 WagonR Pride Esteem Diesel. All other variants upgraded Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited Alto Spin LXi, with electronic power steering Special edition of Maruti 800, Indias first colourcoordinated car

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Maruti True value in Mumbai Maruti Finance in Mumbai with 10 finance companies Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 percent

2001

Zen LXi Maruti True Value launched in Bangalore and Delhi Maruti Versa, Indias first luxury MPV Alto Spin LXi, with electronic power steering Alto Vxi Customer information centers launched in Hyderabad, Bangalore and Chennai

Launch of versa

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AWARDS 2005 Number one in JD Power SSI for the second consecutive year Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05 Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC ( 2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in India-Oct 04 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04 2004 Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R) No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC 16

Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG 2003 Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (2001) for 4th time in a row 2001 MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first 2000

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WHY MARUTI SUZUKI The Quality Advantage A car is an engineering product, only as good as the technology used to make it. Actual users of our technology are saying something very clearly Maruti Suzuki is No.1 in quality: Maruti Suzuki owners experience fewer problems with their vehicles than any other can manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid-size car segment across 9 parameters. The J.D. Power APEAL Study 2004 proclaimed the Wagon R. No. 1 in the premium compact car segment and the Esteem No.1 in the entry level mid-size car segment. This study measures owner delight in terms of design, content, layout and

performance of vehicles across 8 parameters. Maruti Suzuki has a sales network of 307 state-of-the-art showrooms across 189 cities*, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI study 2004. The SSI study measures sales satisfaction across 6 parameters: deal received, paperwork, dealer facility, salesperson, delivery timing and delivery process. Maruti Suzuki has not only got the No.1 nameplate in the J.D. Power SSI study 2004, but also 18

ranked way above the industry average (Maruti Suzuki was at 784 while industry average was at 760). What is significant is that it was ranked above Skoda, Ford, Chevrolet, Mitsubishi and Hyundai. To be really happy with the car you own, it should have a reliable service network at hand and within easy reach. Their 1036 city strong service network is equipped to service 20,000 vehicles a day. No wonder Maruti Suzuki has been awarded the No.1 nameplate in customer satisfaction in India for the fifth year in a row, a feat unprecedented for any automobile market leader in the world. In the J.D. Power CSI study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best in-service experience, most user-friendly service and best service initiation

experience. In fact, 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probable

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

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In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance in production, installation, marketing and sales as well as after sales services. We were also one of the first companies in the world to pioneer ISO 9000 certification for our dealers. In October 1993, MUL passed the Conformity Of Production (COP) Audit, which is based on a European Union Directive. This authenticated our quality systems and testing facilities for export to Europe.

20

MAJOR FACTORS INFLUENCING BUYING BEHAVIOR

Cultural Social Culture Subculture Social Class Reference group Family Roles and statuses Personal Age and lifecycle stage Occupation Economic circumstances Lifestyle Personality and selfconcept Psychological Motivation Perception Learning Beliefs and attitudes Buyer

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TARGET MARKETING
Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. Target marketing is the selection of customers you wish to service. The decisions involved in it are Which segments to target How many products to offer Which products to offer in which segments

There are three steps to targeting: Market segmentation Target choice Product positioning

One of the first things you need to do is to refine your product or service so that you are NOT trying to be 'all things to all people. Next, you need to understand that people purchase products or services for three basic reasons:

To satisfy basic needs. To solve problems. To make themselves feel good.

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The next step in creating an effective marketing strategy is to zero in on your target market. Target marketing is one of corporate America's most effective business strategies. The idea is to increase sales by first identifying, and then targeting smaller, yet more profitable customer groups within the total market. Four Ways to Identify Target Markets 1. Geographic: The location, size of the area, density, and climate zone of your customers. 2. Demographics: The age, gender, income, family composition and size, occupation, and education of your customers. 3. Psychographics: The general personality, behavior, lifestyle, rate of use, repetition of need, benefits sought, and loyalty characteristics of your customers. 4. Behaviors: The needs they seek to fulfill, the level of knowledge, information sources, attitude, use or response to a product of your customers. One of the best ways to identify your target market is to look at your existing customer base. Who are your ideal clients? What do they have in common? If you do not have an existing customer base, or if you are targeting a completely new audience, speculate on who they might be, based on their needs and the benefits they will receive. Investigate competitors or similar businesses in other markets to gain insight.

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TARGET MARKETING Who are your best customers? Where should you direct your marketing activities? Where and how should you allocate your advertising and promotional efforts? Target Marketing, provides Focus for your business. It helps to establish critical Operational goals and defines what must be done to achieve them It shows how the different parts of the business contribute to achieving profitable sales levels. Target Marketing is both a planning and an action tool. The process is straightforward. Plan what needs to be done, then implement the specific activities needed to turn these plans into reality. An overall market environment made up of unlimited specialty wants and needs has developed with markets made up of smaller numbers of target customers. Smaller firms can take advantage of this market shift by specializing in addressing the needs of very precisely defined, smaller target markets. Large firms may be less capable of providing such specialty products/services because they need volume operations to support large over the target customers themselves help to define much of the marketing approach. Successful target marketing requires a certain attitude or philosophy towards the business as well as the performance of various activities.

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Comparison of Automobile And Consumer Durable

At Dealership Level S.No 1 2

Attributes
Turnover Margin Penetration Level Training of Sales Executives

Automobile
High 8%-12% More in small or large towns or cities Executives get Training after every specific period

Consumer Durables
Low 2%-4% More in Rural areas or in cities also

As such no training Co->Distributor>Dealer >Customer Depends on Dealer To Dealer Only Sales man is there to serve the customer Customer have to go at manufactured level Customer can change his or her choice More focus on Finance & Installment

Supply-Chain

Co->Dealer->Customer

Discount Margin

Cartel

CSR

Proper well organized Customer get 3free service Customer first choice is more pertinent

ASS Brand Association

10

Payment Post-Sales Follow UP Buying Procedure Database Brand

Instantaneous Payment

11

More Customer can wait for new model Large Single-Tier

Very Less

12 13 14

Instant buying Few Multi-Tier

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Transition Parent Company & dealer both give advertisement Yes

15 16

Advertisement Loyality Programs Customer Satisfaction Index Promotion Customer Retention

Only from Parent Company No

17 18

Well- Defined & Organized Free Service Camps

None None

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More Only free service which customer can extend upto 4 years(first 2yr are free)

Very Less

20

Maintenance

Annual Maintenance Contract (AMC)

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PRODUCTS

27

Marutis marketing objective is to continually offer the customer new products and services that: Reduce the customers cost of ownership of their cars; and anticipate and address the customers needs and

preferences in all aspects and stages of car ownership, to provide what they refer to as the 360 degree customer experience. They sell ten models with more than 50 variants in segments A, B, C, and utility vehicle segment of the Indian passenger car market. Of these, they manufacture nine models and import the Grand Vitara as a completely built unit from Suzuki in Japan. Their models and variants are designed to address the changing demands of the market and are periodically upgraded in technology, styling and features. To take advantage of the brand recognition associated with their products, they retain the brand name of the product through various stages of product upgrades over time. 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.

A A B B B

Maruti 800 OMNI Zen Wagon R Alto

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C C C C Utility Vehicle Utility Vehicle

Esteem Baleno Versa SWIFT GYPSY KING GRAND VITARA

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BALENO

DIMENSIONS Length Width Height Wheelbase Tread Ground clearance Min. turning radius WEIGHT Kerb weight Gross vehicle weight ENGINE PERFORMANCE Engine Cylinders No. of valves Swept volume Bore x stroke Compression ratio Max. Power output PS Max. torque Fuel distribution Max. speed TRANSMISSION Type 5 forward, all-synchromesh, 1 reverse 985 kgs 1510 kgs All-Alluminium, 16 Valves SOHC In-line 4 16 1590 cc 75.0 x 90.0 mm 9.0 0.2:1 91 bhp@5500 rpm 130.5 Nm@3000 rpm Multi Point Fuel Injection 175 km/hr 4225mm 1690mm 1390mm 2480mm 1440mm 1435mm 170mm 4.9mm

Front Rear

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CHASSIS Steering Brakes Suspension Type Front Rear Front Rear Tyres CAPACITY Seating Fuel tank volume Front Rear 2 3 51 litres Rack and Pinion with hydraulic power assistance Vacumm assisted hydraulic Ventilated disc Drum, leading/trailing McPherson strut & coil spring with L shaped lower arm and anti-roll bar McPherson strut & coil spring with parallel link arrangement 165/80R13(Lxi) 185/65R14 tubelless (Vxi)

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WAGON R

SPECIFICATIONS

DIMENSIONS IN MM Length Width Height Wheelbase Front Track Rear Track Min. Ground clearance WEIGHT IN KG Kerb Weight Gross Vehicle Weight CAPACITY Seating Capacity Fuel Tank Capacity ENGINE Swept Volume Engine Type Engine Control Max. Power, bhp Max. Torque, Nm 1061 cc 4 cylinder in line, FC Engine 4 Valves per cylinder, MRFI 32-Bit Electronic Control Module (ECM) 64@6200rpm 84@3500rpm 5 persons 35 litres 825 (LX, Lxi), 850 (VXi), 840 (AX) 1250 (LX, Lxi, VXi) 3520 1490 (VXi), 1475 (LX, Lxi) 1660 (without roof rail), 1690 (with roof rail) 2360 1295 1290 165

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POWER STEERING Type TRANSMISSION Type Manual (LX, LXi, VXi) 5 speed, All-synchromesh with two overdrive gears, Automatic (AX) 3 speed McPherson Strut with torsion type roll control device Coil spring, gas-filled shock absorbers with treelink rigid axle and isolated trailing arms Electronic power steering (EPS) (Lxi, VXi &AX)

SUSPENSION SYSTEM Front Rear

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ESTEEM

SPECIFICATIONS
DIMENSIONS Overall length Overall Width Overall height Wheelbase Tread Ground clearance Turning radius WEIGHT Unladen weight Laden Weight ENGINE Type Cylinders No. of Valves Piston displacement Bore X stroke Compression ratio Maximum output Maximum torque Engine Control TRANSMISSION Manual 5 forward, 1 reverse all-synchromesh Petrol engine, 4 stroke cycle, allaluminum Water cooled SOHC In-line 4 4 / Cylinder 1298 cc 74 x 75.5 (MM) 0 9.0 .2 85 bhp @ 6000 rpm 110 Nm @ 3000 rpm 32-Bit Electronic Control Module (ECM) 870 kg (LX), 875 kg (Lxi, VXi) 1315 kg LX/Lxi/VXi 4095 mm 1575 mm 1395 mm 2365 mm 1365 mm 1340 mm 170 mm 4.8 m

Front Rear

34

CHASIS Steering Brakes Suspension Tyre Size (Tuebless) Front Rear Front Rear Rack & Pinion Booster assisted Ventilated disc Booster assisted drum McPherson strut and coil spring Coil spring 155/80 R 13 (LX, LXi), 175/70 R 13 (VXi)

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MARUTI 800

SPECIFICATIONS
DIMENSIONS Overall length Overall width Overall height Wheelbase Minimum turning radius Ground clearance Seating capacity WEIGHT Unladen weight Laden weight ENGINE Type Number of cylinders Piston displacement Maximum output (Std., AC) Maximum torque (Std., AC) POWER TRANSMISSION Std., AC STEERING Steering SUSPENSION Front Rear BRAKES Front Rear TYRES Tyre size CAPACITY Fuel tank capacity 3335 mm 1440 mm 1405 mm 2175 mm 4.4 m 170 mm 4 persons 655 kg (AC BS I), 640 kg (Std. BS I), 665 kg (AC BS II & AC BS III), 650 kg (Std. BS II & Std. BS III) 1000 kg 4 stroke cycle, water cooled SOHC (1C2V) 3 796 cc 37 bhp at 5000 rpm 59 Nm at 2500 rpm 4 forward, all synchromesh 1 reverse Rack & pinion McPherson strut & coil spring Coil spring with gas filled shock absorbers Disc Drum Radial 145 / 70 R-12 30 liters (BSI), 28 liters (BS II & BS III)

36

NEW ALTO

SPECIFICATION

WEIGHT
Kerb weight Gross vehicle weight ALTO ALTO LX/ALTO Lxi 725 kg 740 kg 1165 kg 796cc FC engine, 4 valves Per cylinder MPFI 3 32 bit computer 47 bhp @ 6200 rpm 62 Nm @ 3000 rpm 5 speed, all synchromesh, manual

ENGINE
Swept volume Engine type No. of cylinders Engine control Maximum power Maximum torque Transmission

SUSPENSION SYSTEM
Front Rear

McPherson Strut with torsion type anti-roll bar Coil spring with double action telescopic shock absorbers

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Seating Capacity
Tyre size Overall length Overall width Overall height Wheelbase Tread Minimum turning radius Ground clearance

5 persons

Front Rear

145 / 80 R12 3495 mm 1495 mm 1460 mm 2360 mm 1290 mm 1290 mm 4.6 m 160 mm

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PRICES OF MARUTI PRODUCTS Car market leader Maruti Udyog Limited has announced a marginal increase in price of certain models. The increase, which comes into effect from today, varies from 0.17 percent to 1.47 percent. The price increase is due to rise in input costs and freight costs, which increased following the rise in oil prices. In this phase,

the company has decided to pass on only a part of the increase in costs to the customers. There is no change in the prices of Swift, Zen, Baleno (Vxi) and WagonR (Petrol). Ex-Showroom Prices in Delhi (in Rs) Model M800 Std M800 Std Ac Alto Std Alto Lx Alto Lxi Omni Cargo LPG Omni Cargo Omni (Eight Seater) Omni LPG Esteem Lx Esteem Lxi Esteem Vxi Baleno Lxi Versa Dx Versa Dx2 Versa Std WagonR Lx LPG WagonR Lxi LPG Chang New Old Increase e % 191646 191146 500 0.26% 213062 212562 500 0.24% 231585 231085 500 0.22% 265262 264762 500 0.19% 283878 283378 500 0.18% 194725 192725 2000 1.04% 213706 213206 500 0.23% 221268 220768 500 0.23% 230388 227388 3000 1.32% 445968 444968 1000 0.22% 476223 475223 1000 0.21% 511520 510520 1000 0.20% 576173 575173 1000 0.17% 433575 432575 1000 0.23% 471779 470779 1000 0.21% 360182 359182 1000 0.28% 345106 340106 5000 1.47% 373160 368160 5000 1.36%

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THE PRODUCTION PROCESS AT MARUTI

STEEL COILS

BLANKING

PRESSING

WELDING

PAINTING FROM VENDOR S FROM VENDOR S FROM VENDOR S

ASSEMBLY

VEHICLE INSPECTION

TEST RUN

SUPPLY & DISPATCH

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MARUTI ALL INDIA SALES 3 YR TREND

Segment A1 (Mini - Hatchback) A2 (Compact - Hatchback) A3 (Mid Size) A4/A5/A6 (Exec./Prem./Luxury) C (Van Type) Passenger Cars - MUL Passenger Cars - Total Industry MUV (Utility Vehicles) Passenger Vehicles - MUL Passenger Vehicles - Total Industry 2003- Growth 2004-05 Growt 2005-06 Growt 04 h h 167,561 176,132 14,173 NA 59,526 417,39 2 758,12 3 3,555 420,94 7 901,15 0 17% 47% 28% NA 15% 116,262 271,280 29,637 NA 65,019 -31% 89,223 -23% 24% 8% NA 2% 8% 7% -16% 8% 8%

54% 335,136 109% NA 9% 31,939 NA 66,366

28% 482,198 26% 885,029 12% 5,204

16% 522,664 17% 948,669 46% 4,374

28% 487,402 24% 1,050,2 46

16% 527,038 17% 1,129,3 16

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MARKET SHARE

2005-06 Market Share-Segment A2

TATA 20%

MARUTI 59%

HYUNDAI 21%

2005-06 Market Share-Segment A3

HYUNDAI 16% MARUTI 17% FORD 14% OTHERS 7% HONDA 20% GM 6% TATA 20%

2005-06 Market Share-Passenger Cars

HYUNDAI 17% TATA 16% HONDA 4% FORD 3% GM 1% TOYOTA 1% OTHERS 3%

MARUTI 55%

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COMPETITION MODELS SEGMENT

Maruti Competition

A1 (Mini Hatchback) A2 (Compact Hatchback)

M800 Zen, WagonR, Alto, Swift Hyundai - Santro & Getz; Tata Indica & Palio; GM - Corsa Sail

A3 (Mid Size)

Esteem, Baleno

Hyundai - Accent; Tata - Indigo & Petra; Honda - City; GM - Corsa, Optra, & Aveo; Ford - Ikon, Fusion, & Fiesta

A4/A5/A6 (Exec./Prem./Luxury )

Hyundai - Elantra & Sonata; Honda - Accord; GM - Vectra; Ford - Mondeo; Skoda - Octavia & Superb; Toyota - Corolla & Camry; Daimler Chrysler - C,E, & S Class;

C (Van Type) MUV (Utility Vehicles)

Omni, Versa Gypsy, Grand Vitara Mitsubishi - Pajero; Hyundai Terracan & Tucson; Ford Endeavor; Toyota - Prado & Innova; Nissan - X Trail; Honda CRV; GM - Forrester & Tavera; Tata - Sumo & Safari; Mahindra Jeeps, Scorpio, & Bolero

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INDUCTION & SUCCESSION Transparent Recruitment & Selection process Recruitment on an All India Basis no sectoral or region specific Recruitment of Best available Talent in the Country - Engineers CAMPUS - IITs/RECs/Rorkee/HBTI - ALL-INDIA TEST - MBAs IIMs/XLRI - CAs - Rank Holders - Technicians - ITIs diploma holders after All India Exam & Apprenticeship In MUL Lateral Entry for Experienced Professionals

SUCCESSION PLANNING Potential & Performance Vacancy - based

TRAINING & DEVELOPMENT Annual Training Plan - All Levels Training customised to meet Organisational Objectives Topics selected based on Vision, Values & Departmental

44

Feedback of Company-wide Managers Competency Mapping to identify Individual Training Needs Technical Training on latest Technologies abroad at SMC,

Japan STRONG FUCUS ON TRAINING INITIATIVES - Build a Learning Organisation - Continuous Value Additions to Professional Skills - Customised Training - Training to the personnel of Business Partners

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COMPETITIVE STRENGTHS

MUL believes that they are well positioned to maintain and enhance their leadership position in the small car segment in India, while continuing to offer products in most segments of the Indian market, on account of their competitive strengths, which include the following: Expertise in small car technology: As a subsidiary of Suzuki, they have access to globally respected technology in the small car segment. They have the advantage of Suzukis expertise in all aspects of small car technology and design, with respect to their products, their manufacturing processes and business practices, the development of their supply chain and the training of their personnel. Extensive product portfolio: Their diverse product range includes cars in segments A, B and C, and utility vehicles. They manufactured five out of the ten models that were sold in the combined A and B segments in India in fiscal 2002. They are the only manufacturer of cars in segment A (priced below

Rs.300,000) where they have two models, the Maruti 800 and the Omni. The Maruti 800 has been the largest selling car in India for several years, and continued to have the highest sales volumes of any model, with a market share of 25.3%. The Omni, a versatile vehicle that can seat more passengers than the

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Maruti 800 or be used as an ambulance or cargo vehicle, had a market share of 10.5% in fiscal 2002. They are also the only manufacturer to sell three distinct models, the Zen, the Alto and the Wagon R, in segment B (priced between Rs.300,000 and Rs.500,000). They believe that their dominance in segment A and extensive product range in segment B enables us to offer the customer a wider choice in the small car segment than any of their competitors. In addition, the absence of other

manufacturers in segments A gives their dealers greater flexibility in promoting models in segment B. Quality products: In November 2001, they were one of the first automobile manufacturers in the world to receive the ISO 9001:2000 certification. They began to export products in 1988, primarily in order to benchmark our products against

international quality standards. They have exported products to approximately 70 countries, including countries in Western Europe. Their products for export are manufactured using the same assembly line as our products for the domestic market. Extensive sales and service network: They believe that they have the largest network of dealers and service centers amongst car manufacturers in India. As of March 31, 2003, we had 178 authorized dealers with 243 sales outlets in 161 cities. They estimate their car parc to be in excess of 3.5 million vehicles. To service this car parc, at March31, 2003, they had

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342 dealer workshops and 1,545 Maruti Authorized Service Stations, or MASSs, which covered 898 cities in India backed by Express Service Centers on 30 highways across the country. In addition to the distribution of their cars, their dealership network is a critical resource in our efforts to provide customers with a one-stop shop for automobiles and automobile related products and services such as automobile finance, automobile insurance, Maruti-certified pre-owned cars available for

purchase, and leasing and fleet management, in order to promote customer loyalty. Brand strength: They have been present in the Indian market for almost twenty years and have built their brand on the basis of the values of trust and reliability. Most of their principal competitors have been present in the Indian passenger car market for a significantly shorter period. Certain manufacturers have ceased to manufacture certain products shortly after introducing them, or have left the market altogether. In contrast, they continue to support the maintenance of their products. This has contributed to the strength of their brand. In 2000, 2001 and 2002, J. D. Power Asia Pacific, Inc. ranked us No. 1 in the India Customer Satisfaction Index, which assesses customer satisfaction with product quality and dealer service. They believe that this was the first time that a volume leader in the automobile industry anywhere in the world was ranked first

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on the JD Power Customer Satisfaction Index. NFO Automotives 2002 Total Customer Satisfaction Survey ranked Maruti products as No. 1 in the Economy, Premium Compact and Entry Midsize segments respectively, for 2002. Integrated manufacturing facility: Their manufacturing

facility comprises three integrated plants with flexible assembly lines located at Gurgaon in the northern state of Haryana. Their facility has advanced engineering capability and each plant is upgraded on an ongoing basis to improve productivity and quality. As a result, their first plant set up in fiscal 1984 is technologically at par with their newer plants and is also used in the production of their new models. They believe that they are one of the most efficient among the vehicle manufacturing facilities of Suzukis subsidiaries outside Japan in terms of productivity measured as the ratio of number of vehicles produced to number of employees. They have an installed capacity of 350,000 vehicles per year, which is the highest among passenger car manufacturers in India and among the passenger car manufacturing facilities of Suzukis subsidiaries outside Japan. They have consistently produced in excess of their installed capacity in the five fiscal years ended March31, 2002.

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BUSINESS STRATEGY They intend to continue to focus on the small car segment, while offering products in most segments of the Indian passenger car market. They aim to achieve their principal objectives by pursuing the following business strategies: Maintain and enhance their product range: They intend to utilize Suzukis expertise in small car technology to produce new variants of their existing models and to upgrade their products with contemporary technology and features. Increase reach and penetration: They plan to continue to utilize their extensive sales and service network to increase the reach, in terms of geographical spread, and penetration, in terms of sales volumes, of their products across India. Increased availability of automobile finance: They continue to seek opportunities to expand the size of the Indian passenger car market, especially in the small car segment, through facilitating easy availability of automobile finance. To that end, they have recently entered into an agreement with the State Bank of India. . Continue to reduce costs to offer more competitive products: Cost competitiveness has been, and continues to be, central to their strategy as the leading manufacturer in the small car segment to expand the size of the market by offering competitively priced, high quality products. The components of this strategy are: Higher levels of localization Vendor participation in cost reduction Cost reduction on warranties 50

Reduction in initial investment cost Reduction in number of vehicle platforms Achieve further cost reduction through higher productivity

Lower cost of ownership: Through their business strategies, they seek to reduce the consumers cost of ownership of their cars, which comprises the cost of purchase, the cost of fuel and maintenance, including spare parts and repairs, during the life of the vehicle, insurance, and resale value.

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NEW BUSINESS INITIATIVES As the largest manufacturer and leader in the small car segment, they continually seek new ways to utilize their vast car parc, range of products and extensive sales and service network to expand the size of the passenger car market in India. They have recently launched new initiatives to develop the market for automobile insurance, automobile finance, leasing and fleet management, and pre-owned cars. They aim to provide customers with a one-stop shop for automobiles and automobile-related products and

services, and build on their wide customer base and extensive sales and service network to make available to their customers a wide range of Maruti-branded services at different stages of ownership, which they refer to as the 360 degree customer experience. Atithi Devo Bhava: One-stop shop Inspired by the spirit of India. Atithi Devo Bhava, in Sanskirit, means a guest is like God. It captures the Indian tradition of honouring guests. It's also the inspiration for the welcome youll receive at a Maruti Suzuki dealership, and the caring relationship they share with those who drive their cars. At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management. services, exchange Maruti Suzuki is set to provide a single window solution for all your car related needs.

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That's why they have Maruti True Value, the best place to buy and sell reliable used cars. Maruti Finance an agglomeration of the biggest finance companies in India brought together by Maruti Suzuki to ensure that the dream car is within everyone's reach. Similarly, Maruti Insurance brings together some of the biggest names in the car insurance industry to provide

insurance solutions to every type of car consumer. Then, finally, there is N2N, which offers fleet related solutions.

Key Industry Pain Points

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

Difficult dealer relationships and a lack of dealer collaboration - As the consumer's primary touch point ,the dealer network is a critical component of customer-facing operations. Therefore, the integration of the dealer network is absolutely essential to improving the quality of the customer experience. Only with an infrastructure that enables the effective flow of information to and from dealers

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can companies create a complete view of their customers. Car companies must take the initiative in understanding the customer's perspective throughout the buying cycle.

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

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

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information can customer lifetime value be maximized among different groups.

Complex

data

governance

requirements

Global

automotive enterprises have large, complex information technology ecosystems. While customer information must be shared within this ecosystem in order to fully maximize global operations, of it must also be protected. Proper a management customer information requires

sophisticated capability to manage a variety of access rules and to accommodate legal restrictions that can change very quickly. The trust required for successful collaboration between groups in the automotive enterprise must be built by demonstrating that customer information can be shared while observing these complex requirements.

Difficulty managing employee relationships - In today 's fast-paced need to employees information, business ensure -have environment, their and most immediate automotive valuable to companies -their critical to be that asset the

access

services,

applications

required

productive. Organizations must enable employees to make better decisions, work collaboratively, enhance customer relationships, and maximize productive time. Global automotive enterprises must be able to enact and enforce consistent policies across business units, instill a common corporate culture across a geographically dispersed and diverse workforce, equip employees with effective search tools to access corporate knowledge bases, and provide employees with the training necessary to service customers in a volatile and demanding market.

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ANALYSIS Corporates, don't talk about exceeding customer satisfaction - that's passes - the time has come to `dazzle the customer'. But to do that, first you must get customer relationship management (CRM) in place. In the context of India, this is very crucial as the recent World Economic Forum Report on Global Competitiveness has ranked India 43 out of 49 nations surveyed, on `customer orientation'. Managing customer relationships is not only complex but is also multi-faceted and thus calls for an inter-disciplinary approach. Particularly, as in the New Economy, the customer has become very demanding and the emphasis needs to be on being consumercentric. Technology solutions as applied to various front-end functions could aid in building a viable link of between the organisations and customers irrespective geographical

separation. This has to be backed with appropriate systems and processes to mine the right type of data by the right function in an organisation. Besides technology, systems and processes, another important link is human resource, If CRM is the key, HR would be the nerve centre for any CRM activity. At Maruti Udyog Ltd the first step for a company to enhance value through CRM was to identify its target base. At Maruti, the categories which emerged were: * Two-wheeler owners; * Customers taken away from the competition; * Services sector.

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After identifying the target, the next stage was to build on customer relationships. Maruti, therefore, began evaluating the current database of consumers to identify those who wanted Maruti service or better still, wanted to upgrade up the value chain in Maruti products. Third, it began working in tandem with the oil industry to get data feedback on two-wheeler consumers-and identify those ready to move into four-wheeler purchases. Ultimately, CRM is all about value enhancement for the organisation. Currently in use by 500 sales and service personnel, the Siebel CRM solution is expected to be deployed to Tata Motors' entire network of 250 dealer organisations in India by the end of 2005, with more than 1,600 locations and 10,000 sales and service executives expected to use Siebel Automotive. Within the first year of implementing the Siebel's solutions, they have seen improvements in customer satisfaction, revenue and operating cost reductions through productivity improvements, and these benefits are expected to increase further over time. This is helping them to become truly customer-centric, since they can draw upon real-time, centralised customer and vehicle data and respond better to their customer and dealer needs.

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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

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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.

The study reveals a significant increase in the importance of sales satisfaction, product quality (both performance and design) and brand image since 2003, indicating rising customer expectations over the years. This year's study shows the Maruti Suzuki Swift and the Toyota Innova as the winners, with the two vehicles achieving segment-best ratings by performing well in areas of greater relevance, particularly product and brand image. Sales satisfaction is weak in both these models, largely because of the longer waiting time for new deliveries.

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TNS Automotive's TCS Study has, since its inception in 2002, surveyed over 25,000 car buyers and has built a sizeable sample base. Some of the key findings, indicators and inferences from the 2005 study are: Progressive reduction in car ownership cycle-time from an average of 61 months in 2002 to 53 months in 2005: This shortened cycletime is bringing these owners for repeat purchases sooner and will, therefore, further fuel the growth of the four-wheeler market. This trend is already visible in the growing additional/replacement purchases. Growth in additional (multi-car households) and

replacement purchases up from 51 per cent in 2002 to 65 per cent in 2005: This will impact the volume growth in higher-end segments as the current car owners show upward mobility.

Increasing budget for future purchases: Future intenders with a budget of Rs 6 lakh plus have increased from 44 per cent in 2002 to 58 per cent in 2005. While first-time buyers are declining as a 60

composition of total volumes, the figure in absolute terms is high, fuelled by the up-gradation by two-wheeler owners. The study also throws up the question as to whether it is also possible that the firsttime car buyer who is generally a two-wheeler owner, is getting more fuel efficiency conscious and tending towards postponing the car purchase decision due to the high cost of fuel. Of course a shift in composition is also to be expected with the upper premium compact and mid-size segments projected to grow at a much faster rate than rest of the industry. The TCS study was conducted from August through October across 21 cities. Small sample models have not been featured in the charts. Maruti Udyog Ltd is one of India's leading automobile

manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue. Good Technology Uniform Pricing Good Strength More Coverage Area Frequent /Regular Product Launch Market Leader (with 47% share) Oriented Driven Company More Product Offering

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Healthy Annual Report Brand Image Maximum Dealership as compared to other brands Good Sale Service Spare parts are cheap as compared to any other brand

Information Needed
SALES PERFORMANCE FOR THE LAST 2YEARS (PRODUCT WISE) IN UNITS AND IN RUPEES
Number of Employees, different section wise with due classification Like Skilled, Semi-skilled, Unskilled workers, Officers, managers etc Organizational Chart with Explanation Annual Reports (last 5 years)

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HISTORICAL GROUND OF THE COMPANY FUTURE PLANTS OF THE COMPANY

Product, Literature, photograph of the products,

technical details etc List of Competitors Future Plans, Export Strategy, Market Share of the Comparative Area of the operation etc You must include following in Conceptual discussion Consumer Behaviour Innovators Early Adopters Late Adopters Followers Laggards Jack

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