Final Presentation for course SDM on company Maruti Suzuki India

1. MARUTI SUZUKI
INDIA LTD.
FIELDASSIGNMENT PRESENTATION

2. BUILDINGTHE CONTEXT
■ Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car
company accounting for about 47 per cent of the domestic car market
■ Originally, 74% of the company was owned by the Indian government, and 26% by
Suzuki of Japan.As of May 2007, the government of India sold its complete share to
Indian financial institutions and MSIL is a company with majority foreign shareholding
■ Today, Maruti Suzuki alone makes 1.5 million family cars every year.That’s one car
every 12 seconds

3. OVERTHETIME
1982 Signed the license and joint venture agreement with Suzuki Motor
Corporation Japan.
1983 They company started their production
1987 The company forayed into the foreign market by exporting first lot of 500
cars to Hungary
1992 Suzuki Motor Corporation Japan increased their stake in the company to
50%.
1997 They started Maruti Service Master as model workshop in India to look
after sales services.
2001 Four new business–True value, Insurance, Finance. MarutiVersa launched.
MarutiTrueValue launched.
2015 Maruti Suzuki launched Nexa, a new dealership format for its premium cars

4. PRODUCTS
Currently selling in the Market Production stopped for Models
Model Launched Category Model Discontinued Category
Omni 1984 Minivan Gypsy E 2000 SUV
Gypsy 1985 SUV 1000 2000 Sedan
WagonR 1999 Hatchback Zen 2006 Hatchback
Swift 2005 Hatchback Esteem 2008 Sedan
Grand Vitara 2007 Mini SUV Baleno 2007 Sedan
DZire 2008 Sedan Versa 2010 Minivan
Eeco 2009 Minivan Grand Vitara XL7 2007 Mini SUV
K10 2010 Hatchback 800 2012 Hatchback
Ertiga 2012 Mini MPV Alto 2012 Hatchback
Alto 800 2012 Hatchback Zen Estilo 2013 Hatchback
Celerio 2014 Hatchback A-star 2014 Hatchback
Ciaz 2014 Sedan Maruti Suzuki SX4 2014 Sedan
Baleno 2015 Hatchback Ritz 2016 Hatchback
S-Cross 2015 Mini SUV
Vitara Brezza 2016 Mini SUV

5. CHANNEL DESIGN - DISTRIBUTION

6. CUSTOMER RELATIONASHIP
MANAGEMENT – DEALER LEVEL
Right from the sale of the vehicle to every transaction over the life cycle of the product, the Dealer Management system captures the
following:
■ Customer details
■ Type of transaction
■ Billing
■ Repair quality
■ Type of repair
■ Response time
■ Customer satisfaction
■ Post service feedback
■ Next service due
■ Service history of the vehicle
■ Performance of the vehicle

7. SALES FORCE STRUCTURE – CHANNEL
LEVEL
■ Maruti Suzuki has 1,820 sales outlets across 1,471 cities in India.The company aims to
double its sales network to 4,000 outlets by 2020.
■ It has 3,145 service stations across 1,506 cities throughout India. Maruti’s dealership
network is larger than that of Hyundai, Mahindra, Honda,Tata,Toyota and Ford
combined
■ Sales force recruitment happens primarily at a dealer level at the discretion of the
dealer. Each dealer has about 6-8 sales executives who in turn are supported by 3-4
executives from the finance team to facilitate payments and leases

8. LEAD MANAGEMENT –THROUGHTHE
CHAIN
The IS System is used effectively, that considerably increases the business volume.
Through the lead management applet in the DMS, the following activities can be
conveniently incorporated in the outlet processes:
■ Lead Generation: Dynamic creation and updating of the consolidated leads' database,
This would consist of a list of customers are expected to visit the outlet in the
immediate future (0—30 days) for their vehicle servicing needs.
■ Lead Classification and Conversion:On a daily basis, the leads are called by theTele-
callers at the outlet and they are persuaded to purchase. For customers who agree
(hot leads), appointments are booked based on the convenience of the customers and
the availability

9. SALES HIERARCHICAL STRUCTURE

10. TAPPINGTHE RURAL MARKETS
■ Targeting the opinion markets: Maruti Suzuki launched a Panchayat scheme for opinion
makers, covering the village Sarpanch, doctors and teachers in government institutions, rural
bank officers, etc. wherein an extra discount and incentives are given to make a sale happen.
■ Extension Counters:These are stripped down dealerships that operate as satellite outlets for
a main dealership in a nearby town. Because of the frugal distribution network, Maruti has
been able to cover more than 200 such locations.
■ Resident Dealer Sales Executives (RDSE): A local resident of the village is appointed as a
salesman. He is normally the insurance agent in the village or the local area.The resident
dealer sales executive tries to generate sales enquiries from local government offices, banks,
schools, hospitals, etc
■ Strategic Tie-ups: Maruti Suzuki has tied up with ITC’s e-choupal to market its products in
rural areas. E-Choupals will provide display demonstration and customer engagement
services and facilitate meetings with prospective clients

11. TRANSPORTATION, IT/ISAND
LOGISTICS
■ The organization had adopted the Japanese system; Just inTime (JIT) to achieve higher operational
efficiencies and reduce inventory carrying cost
■ MSIL adopted the E-Nagare system of electronic flow which has completely transformed its supplier
chain
■ Maruti started insisting on 'full systems supply' from itsTier I vendors instead of supplying each
component separately
■ An initiative called 'Shikhar' was introduced along with the suppliers' quality teams where 'poor '
vendors were identified and even eliminated
■ Maruti vendors are reaping the benefits of efficiencies unleashed by the original equipment
manufacturer (OEM).
■ A Memorandum of Understanding (MoU) has been signed between InlandWaterwaysAuthority of
India (IWAI) and Maruti Suzuki India Ltd for transportation of cars through inland vessels,

12. FINANCIALANALYSIS : COMPARISON
WITH FORD MOTORS
42%
8%
50%
Selling & Distribution (mar'16)
Sales promotion
Warranty and product recall
Transportation and
distribution expenses
44%
56%
Selling and distribution (mar'16)
Sales promotion
Transportation and
distribution expenses
Maruti Suzuki Ford Motors

13. FINANCIALANALYSIS : COMPARISON
WITH FORD MOTORS
■ Both Maruti Suzuki and Ford emphasize on their transportation and distribution
expenses rather than sales promotion.
■ Both of them are willing to cut cost as compared to the previous year i.e. from 6,202 to
5,432 million rupees (for Maruti Suzuki) and from, 5,876 to 5,041 million rupees (for
Ford).
■ Cost has been deducted by 12.42% for Maruti Suzuki and by 14.21% for Ford.
■ Sales promotion of Maruti Suzuki has been increased from 3,007 to 4,582 million
rupees (by 52.38%) and the same for Ford from 2,568 to 3927 million rupees (by
52.98%).

14. FIELD LEARNINGS
■ Maruti Suzuki has been advising
dealers to focus on service to ride
out the slump in new car sales
■ Service Sector projected to grow at
20% over next 3 years
■ The company and its channel
partners are heavily investing in
going rural
■ Company's spares and accessories
business have grown at a CAGR of
19.3% in the last five years
■ They sell at a high mark-up and
margin in stores and after-sales
centres
■ Regional distributors of spares lead
to inventory reduction at the dealer
end and thus ease their already
massive working capital
requirements

15. THANKYOU!
Sampad Acharya UR15037
Shashank Guwalani UR15041
Swati Mohanty UR15045
Ranjana J UR15066
Samarjit Pattanaik UR15070
Satyajit Chatterjee UR15075
Tridib Mondal UR15088