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A PROJECT REPORT ON “THE LEADERSHIP STORY OF MARUTI SUZUKI”

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A BBA PROJECT REPORT
ON
“THE LEADERSHIP STORY OF
MARUTI SUZUKI”

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A PROJECT REPORT ON “THE LEADERSHIP STORY OF MARUTI SUZUKI”

  1. 1. A PROJECT REPORT ON “THE LEADERSHIP STORY OF MARUTI SUZUKI” PREPARED BY: SUYASH MILIND RISBUD PROJECT GUIDE: PROF. RAJEEV DEO BRIHAN MAHARASHTRA COLLEGE OF COMMERCE, PUNE- 04 (A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION DEGREE COURSE BY UNIVERSITY OF PUNE)
  2. 2. DECLARATION I the undersigned, Suyash Risbud, am a student of Brihan Maharashtra College of Commerce pursuing the degree course of Bachelors of Business Administration under University of Pune; hereby declare that the project report submitted is correct and original as per my knowledge and is not reproduced or copied from any source. I hereby also declare that this project work is not submitted to any other college/university. SUYASH RISBUD
  3. 3. THE LEADERSHIP STORY OF MARUTI SUZUKI BRIHAN MAHARASHTRA COLLEGE OF COMMERCE MARKETING PROJECT
  4. 4. ACKNOWLEDGEMENTS I owe my sincere thanks and gratitude to Mr.Rajiv Deo who inspired me by his able guidance and was a constant guiding light during the course of project study. The support and knowledge provided by him has been a great value addition for me and will go a long way in building a promising career. Last but not least, I am also thankful to all the respondents of my survey without whom the project would not have been completed successfully. Suyash Risbud
  5. 5. INDEX  INTRODUCTION OF THE COMPANY  OBJECTIVE OF THE COMPANY  RESEARCH METHODOLOGY  LIMITATIONS  CONCLUSION  QUESTIONNAIRE
  6. 6.  BIBLIOGRAPHY INTRODUCTION OF THE COMAPANY MARUTI UDYOG LIMITED Maruti is India's largest automobile company. The company, a joint venture with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry. Today, Maruti is India's largest automobile company. This feat was achieved by the missionary zeal of our employees across the line and the far-sighted vision of our management. The Company Mission: To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export markets. The Company Vision: We must be an internationally competitive company in terms of our products and services. We must retain our leadership in India and should also aspire to be among the global players. Their focus is on: • Building a continuously improving organisation adaptable to quick changes • Providing value and satisfaction to the customer • Aligning and fully involving all our employees, suppliers and dealers to face competition • Maximising Shareholder's value • Being a responsible corporate citizen
  7. 7. 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
  8. 8. 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 fuel-efficient vehicles to conserve scarce resources. • Production of large number of motor vehicles, which was necessary for economic growth.
  9. 9. Core Value • Customer Obsession • Fast, Flexible and First Mover • Innovation and Creativity • Networking and Partnership • Openness and Learning Vision The leader in the India Automobile Industry, Creating Customer Delight and Shareholder’s Wealth; A pride of India” Technological Advantage We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car. Our other innovation has been the introduction of Electronic Power Steering (EPS) in select models. This results in better and greater maneuverability. In other words, our cars have become even more pleasurable to drive. Production/R&D Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to make a car. More importantly, with an incredible range of 11 models available in 50 variants, there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream.
  10. 10. 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 15,00,000 vehicles produced by April, 1996 20,00,000 vehicles produced by October, 1997 25,00,000 vehicles produced by March, 1999 30,00,000 vehicles produced by June, 2000 35,00,000 vehicles produced by December 2001 40,00,000 vehicles produced by April, 2003 45,00,000 vehicles produced by April, 2004 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
  11. 11. 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 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
  12. 12. 2000 Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world 1999 MSM launched as model workshop in India; achieves highest CSI rating. Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee 1998 CII's Business Excellence Award 1996 Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the Star Trading House status by Ministry of Commerce 1994-95 Engineering Exports Promotion Council's award for export performance 1994 Best Canteen award among Haryana Industries as part of employee welfare 1992-93 Engineering Exports Promotion Council's award for export performance 1991-92 Engineering Exports Promotion Council's award for export performance
  13. 13. 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 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.
  14. 14. 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. A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004. Quality Service Across 1036 Cities In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost you face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here
  15. 15. where Maruti Suzuki shines. The recent Auto car Survey conducted in August 2004 bears testimony to this fact. In the Maruti Suzuki stable, the Omni has the lowest aggregate cost of spares followed by the Maruti-800. The Maruti- 800 has the cheapest spares of any Indian car with a basket of just Rs. 23,422. In the Lower Mid-size segment as well, price-consciousness is very high, where the cars have to be not only affordable on purchase price but also need to combine quality, drivability and have comfortable interiors. In this segment, the Maruti Suzuki Versa has scored particularly well with the lowest cost of spares in the segment. In the Upper Mid-size segment, the Maruti Suzuki Baleno has the segment's lowest prices on a majority of the spares. Lowest Cost of Ownership To be really happy with the car one owns, it should be easy on the pocket to buy and to run-which is why the cost of ownership is so important. And here again, a Maruti Suzuki is a clear winner, as shown by the recent J.D.Power CSI study 2004. It is clear that a Maruti Suzuki delights you even when you run it for years. The 6 highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. They are proud to have the lowest cost of operation / km (among petrol vehicles) - the top 5 models are all Maruti Suzuki models: Maruti 800, Alto, Zen, Omni and Wagon R. Employee Quality Measures Kaizen is based on the concept of making incremental improvements in our products. It incorporates a series of continuous small and simple improvements, which aim at involving employees at all levels. The Suggestion Scheme is based on the same principle. Under this scheme, employees are encouraged to make suggestions for improvement in any area of our operation. Over 50,000 suggestions are received from employees every year. Maruti has won the First place in "Excellence in Suggestion Scheme Contest 2003", which is the 6th consecutive award won in as many years. This contest is
  16. 16. organized by Indian National Suggestion Schemes Association (INSSAN). Since 1998 Maruti has won this award 10 times. "Quality Circles" are groups of five to eight members from a particular work area who work as a team to identify priorities and solve work related problems in the area. We believe that it is this unwavering commitment to quality that will lead to the further growth of the organization as competition increases. ISO 9001:2000 At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into the product". Technicians themselves inspect the quality of work. Supervisors educate and instruct technicians to continually improve productivity and quality. The movement of quality indicators is reviewed in weekly meetings by the top management. In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere in the world to get an ISO 9000:2000 certification. AV Belgium, global auditors for International Organization for Standardisation(ISO), certified Maruti after a four day long audit, covering varied parameters like Customer Focussed organisation, Leadership, Involvement of people, Process approach, System approach to Management, Continual improvement, etc. In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance in production, installation, marketing and sales as well as after sales services. We were also one of the first companies in the world to pioneer ISO 9000 certification for our dealers. In October 1993, MUL passed the Conformity Of Production (COP) Audit, which is based on a European Union Directive. This authenticated our quality systems and testing facilities for export to Europe. Their emphasis on total quality has meant that today they are in a position to guide vendors and dealers in establishing and consolidating their individual quality systems. This commitment to quality has ensured a consistently satisfying product and world-class sales and after-sales services.
  17. 17. TS16949:2002 - A new feather was added recently in Maruti’s cap in the field of quality when the Quality Management System of its Press Shop & associated functions (collectively termed as Press Function) got certification for conformance to the requirements of TS16949:2002 standard. The need for TS certification of Press Function had its genesis in the prestigious project that Maruti earned for the supply of stamped panels to General Motors India for one of its forthcoming models. As a part of Quality system requirements, GM requires all its suppliers to be certified to either ISO TS 16949 or QS 9000. These standards address Quality System requirements, which are particularly specific to the automotive industry and requires an organization to be in compliance with ISO 9000 systems as a basic requirement. However, whereas QS 9000 would become defunct and cease to exist after Dec 2006, TS 16949 is going to be the standard of the future. The TS 16949 standard, brought out by ISO in the year 1999, is an extension of the ISO 9001:2000 standard that prescribes Quality management system requirements that are specifically applicable to the automotive industry. TS 16949 has gained high popularity and almost all major automobile players across the globe including GM, Ford, Daimler Chrysler, Nissan, Honda are embracing & promoting it. TARGET MARKETING
  18. 18. 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. The next step in creating an effective marketing strategy is to zero in on your target market.
  19. 19. 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, life-style, 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. 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
  20. 20. What Customers Want • Marketing is more than an activity, it is an attitude • Instead of trying to get customers to buy what the firm likes to make, or happens to have on hand, the marketing oriented firm tries to produce or sell what its customers want which can be sold at a profit. • Do not simply throw out everything that you now have and replace goods or production machinery with completely new items. • HOWEVER, AS YOU ANALYZE YOUR MARKET AND CUSTOMER PROFILES, AND SO GAIN AN UNDERSTANDING OF THEIR WANTS, DESIRES, AND PERCEIVED NEEDS, YOU CAN BEGIN TO REORIENT YOUR BUSINESS OVER TIME TO TAKE BEST ADVANTAGE OF THESE NEW INSIGHTS. CONSIDER BOTH THE SHORT TERM AND LONG-TERM IMPLICATIONS OF DEVELOPING AND IMPLEMENTING THE RIGHT TARGET MARKETING STRATEGY FOR YOUR BUSINESS. Customer Attitudes • For a long time, people have believed that advertising can be used to change people's minds about what they want. This is an incredibly difficult process at best, and an extremely expensive one. Because of these two factors, it is a process that smaller firms simply cannot afford to pursue. Instead, it is much more productive for any size firm to tune in to target customer attitudes as they currently exist. Once they have identified the actual prevailing attitudes, they can begin to organize company resources needed to constructively address and satisfy these attitudes the key question is, "What are the existing customer attitudes?"
  21. 21. With this as an objective, developing an understanding of existing customer attitudes becomes essential, and their identification becomes an important part of the marketing process. Once these customer attitudes, needs or preferences are identified, the entire firm can then organize itself to satisfy these needs as completely and efficiently as possible. Target Marketing
  22. 22. Comparison of Automobile And Consumer Durable At Dealership Level S.No Attributes Automobile Consumer Durables 1 Turnover High Low 2 Margin 8%-12% 2%-4% 3 Penetration Level More in small or large towns or cities More in Rural areas or in cities also 4 Training of Sales Executives Executives get Training after every specific period As such no training 5 Supply-Chain Co->Dealer->Customer Co->Distributor- >Dealer >Customer 6 Discount Margin Cartel Depends on Dealer To Dealer 7 CSR Proper well organized Only Sales man is there to serve the customer 8 ASS Customer get 3free service Customer have to go at manufactured level 9 Brand Association Customer first choice is more pertinent Customer can change his or her choice 10 Payment Instantaneous Payment More focus on Finance & Installment 11 Post-Sales Follow UP More Very Less 12 Buying Procedure Customer can wait for new model Instant buying 13 Database Large Few 14 Brand Transition Single-Tier Multi-Tier 15 Advertisement Parent Company & dealer both give advertisement Only from Parent Company
  23. 23. 16 Loyality Programs Yes No 17 Customer Satisfaction Index Well- Defined & Organized None 18 Promotion Free Service Camps None 19 Customer Retention More Very Less 20 Maintenance Only free service which customer can extend upto 4 years(first 2yr are free) Annual Maintenance Contract (AMC)
  24. 24. MARUTI CULTURE Their employees are their greatest strength and asset. It is this underlying philosophy that has moulded their workforce into a team with common goals and objectives. Their Employee-Management relationship is therefore characterized by: • Participative Management. • Team work & Kaizen. • Communication and information sharing. • Open office culture for easy accessibility To implement this philosophy, they have taken several measures like a flat organizational structure. There are only three levels of responsibilities ranging from the Board Of Directors, Division Heads to Department Heads. Other visible features of this philosophy are an open office, common uniforms (at all levels), and a common canteen for all. This structure ensures better communication and speedy decision making processes. It also creates an environment that builds trust, transparency and a sense of belonging amongst employees. For Investors: Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for about two decades. Its manufacturing plant, located some 25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a capability to produce about half a million vehicles. The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7. In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR Zen and Esteem, completely designed and styled in-house.
  25. 25. Maruti's contribution as the engine of growth of the Indian auto industry, indeed its impact on the lifestyle and psyche of an entire generation of Indian middle class, is widely acknowledged. Its emotional connect with the customer continues. Maruti tops customer satisfaction again for sixth year in a row according to the J.D. Power Asia Pacific 2005 India Customer Satisfaction Index (CSI) Study. The company has also ranked highest in India Sales Satisfaction Study. The company's quality systems and practices have been rated as a "benchmark for the automotive industry world-wide" by A V Belgium, global auditors for International Organisation for Standardisation. In keeping with its leadership position, Maruti supports safe driving and traffic management through mass media messages and a state-of-the art driving training and research institute that it manages for the Delhi Government. The company's service businesses including sale and purchase of pre owned cars (TrueValue), lease and fleet management service for corporates (N2N), Maruti Insurance and Maruti Finance are now fully operational.. These initiatives, besides providing total mobility solutions to customers in a convenient and transparent manner, have helped improve economic viability of The company's dealerships. The company is listed on Bombay Stock Exchange and National Stock Exchange. MUL is a Board-managed company. Currently the directors on the Board are: • Mr Shinzo Nakanishi, Chairman • Mr Jagdish Khattar, Managing Director • Mr Hirofumi Nagao, Joint Managing Director • Mr Shinichi Takeuchi, Joint Managing Director • Mr Kinji Saito, Director (Marketing and Sales) • Mr Osamu Suzuki, Director • Mr R C Bhargava, Director • Mr S V Bhave, Director
  26. 26. • Mr Kumar Mangalam Birla, Director • Mr Amal Ganguli, Director • Ms Pallavi Shroff, Director • Mr Manvinder Singh Banga, Director OBJECTIVE OF THE COMPANY Maruti’s marketing objective is to continually offer the customer new products and services that: • Reduce the customer’s cost of ownership of their cars; and • Anticipate and address the customer’s 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.
  27. 27. A Maruti 800 A OMNI B Zen B Wagon R B Alto C Esteem C Baleno C Versa C SWIFT Utility Vehicle GYPSY KING Utility Vehicle GRAND VITARA ALTO
  28. 28. CERVO A-STAR MARUTI 800
  29. 29. OMNI ESTILO SWIFT
  30. 30. WAGON R SWIFT DZIRE SX4
  31. 31. GYPSY GRAND VITARA EECO
  32. 32. THE ALL NEW KIZASHI
  33. 33. RESEARCH METHODOLOGY The nature of the project work has been exploratory as no hypothesis, is taken to be tested. Though the conclusions drawn could be taken as the hypothesis and further tested by the research work undertaken in the relevant field. The reason for choosing the exploratory research design is the fact the project report has been primarily based upon the secondary sources of data and whose authenticity could be assured of. The reluctance of the company's personnel in parting with much of information led the project report to be based substantially on the secondary source of data. The sources of data used in data collection are the following: Primary Sources In order to gather information about the various products, I personally visited a number of retail markets and collected data pertaining to the prices of the products offered. The market visits were useful in knowing the comparative prices and quality of the offered brands vis-à-vis the competitive brands. Detail regarding the packaging of the products were collected were collected and I also inquired about the various sales promotion schemes followed by the three companies.
  34. 34. By interviewing these retailers valuable information was collected. I inquired from them about their marketing advertising and distribution strategies.
  35. 35. Secondary Sources Information was collected from secondary sources such as public libraries, newspapers, business magazines. Beside these the use of Internet was also made in collecting relevant information. The data collected from the above mentioned sources has been adequately structured and used at appropriate places in the report. This particular way of data collection was used because of its low cost (except data collected through surfing the internet) and less time consumption. The information gathered included: • Their annual reports (Procter & Gamble and Johnson and Johnson). • Pamphlets. • Posters. • Press clippings. • News releases. • Newsletters. • Pictures.
  36. 36. ORGANISATION STRUCTURE AT MUL Maruti Udyog ltd. Has a flat organisation structure with a maximum of three levels. Head office MD MFG FIN OTHER DIRECTOR N CONTROLLER GM DGMS AGMS GM/ DGMS DGMS AGMS MGRS/AMS MGRS/AMS MGRS/AM SR GM/EX ENGINEERS(EX) SR. EX./EX TRAINEES J.E. (TRAINEES)
  37. 37. INTERNATIONAL BUSINESS In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its first export in 1986. Europe is the largest destination of Maruti’s exports and coincidentally after the first commercial shipment of 480 units to Hungary in 1987, the 300,00 mark was crossed by the shipment of 571 units to the same country. The top ten destinations of the cumulative exports have been Netherlands, Italy, Germany, Chile, U.K., Hungary, Nepal, Greece, France and Poland in that order. The Alto, which meets the Euro-3 norms, has been very popular in Europe where a landmark 200,000 vehicle were exported till March 2003. Even in the highly developed and competitive markets of Netherlands, UK, Germany, France and Italy Maruti vehicles have made a mark. Though the main market for the Maruti vehicles is Europe, where it is selling over 70% of its exported quantity, it is exporting in over 70 countries. Maruti has entered some unconventional markets like Angola, Benin, Djibouti, Ethiopia, Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East region has also opened up and is showing good potential for growth. Some markets in this region where Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE. The markets outside of Europe that have large quantities, in the current year, are Algeria, Saudi Arabia, Srilanka and Bangladesh. Maruti exported more than 51,000 vehicles in 2003-04 which was 59% higher than last year. In the financial year 2003- 04 Maruti exports contributed to more than 10% of total Maruti sales.
  38. 38. MARKET SHARE 2005-06 Market Share-Segment A2 TATA 20% HYUNDAI 21% MARUTI 59% 2005-06 Market Share-Segment A3 TATA 20% FORD 14% GM 6% HONDA 20% OTHERS 7% MARUTI 17% HYUNDAI 16%
  39. 39. COMPETITION MODELS SEGMENT Maruti Competition A1 (Mini - Hatchback) M800 A2 (Compact - Hatchback) 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) Omni, Versa MUV (Utility Vehicles) 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
  40. 40. 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 Suzuki’s 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 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 theirdominance 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.
  41. 41. 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 March 31, 2003, they had 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 on the JD Power Customer Satisfaction Index. NFO
  42. 42. 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 Suzuki’s 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 Suzuki’s subsidiaries outside Japan. They have consistently produced in excess of their installed capacity in the five fiscal years ended March 31, 002. They believe that they would be able to expand their production to 500,000 cars per year with minimal additional capital expenditure. This would enable them to benefit from significant economies of scale. Strong vendor base and higher rates of localization: They work closely with their vendor base for the supply of raw materials, components and spare parts of their products. In order to improve quality and generate economies of scale, they have reduced the number of their vendors of components in India from 370 as of March 31, 2000 to 299 as of March 31, 2003, and intend to continue to reduce the number of our vendors. 113 of their vendors at March 31, 2003 were in technical collaboration with foreign entities. As of the same date, we had strategic equity interests through joint venture agreements in 13 of their vendors, who together supply a substantial portion of their purchases of components. A number of their vendors are their dedicated suppliers in that they account for a majority of their turnover. Vendors located within a radius
  43. 43. of 100 kilometers from their facility supply the majority of their components. The production systems of their vendors are generally aligned to their need for a reliable and timely supply of components that meet their quality requirements. This has enabled them to increase the proportion of locally sourced, lower cost components in their models, a concept they refer to as localisation. They have been able, in collaboration with their vendors, to increase the rate at which they are able to localise production of their new models over time. This has helped them reduce the cost of their components. Skilled labour and experienced management: Thei highly skilled labour force has become increasingly productive in terms of vehicles produced per employee and receives training on an ongoing basis, including training by Suzuki. As of March 31, 2003, 1,900 of their employees had been trained at Suzuki’s facilities in Japan. They have been present in the Indian passenger car market for a significantly longer period than most of their principal competitors. As a result, they have been able to build a highly experienced management team that is familiar with conditions in the Indian passenger car market. For instance, their managing director has almost ten years of experience with them, and most of the heads of their divisions have more than 15 years of experience with them. Capital resources: They have cash and bank balances and current investments amounting to Rs.9,992 million. As of the same date, they had relatively low levels of outstanding indebtedness, in the amount of Rs.4,555 million. As a result, they have relatively low interest expense and flexibility to raise funds, if necessary, for their working capital and capital expenditure in the future.
  44. 44. 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 Suzuki’s 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. Secure repeat purchases by offering a “360 degree customer experience”: On the basis of their belief that securing repeat purchases from an existing customer requires less expenditure than acquiring a new customer, they aim to provide customers with a “one-stop shop” for automobiles and automobile- related products and services. Continue to benchmark their manufacturing capabilities: They plan to continue to benchmark our manufacturing capabilities with the most efficient car manufacturing facilities of Suzuki and its subsidiaries. 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
  45. 45. 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 • 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 consumer’s 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.
  46. 46. SALES NETWORK Dealers: They offer their products to the customer through a network of 178 authorized dealers with 243 sales outlets across 161 cities. They believe that this is the largest network of dealers amongst car manufacturers in India. Their dealers employed more than 3,500 sales executives. They are linked to their sales network through their secure extranet-based information network. The sales of their spares, accessories and automobile-related services such as insurance and finance serve as additional sources of revenue for our dealers. They believe that the availability of these related products and services at sales outlets also helps to attract customers to the outlets and promotes sales of their cars. Agreements with dealers: They generally appoint a limited number of dealers for a certain geographical territory. Their dealers provide services to customers such as pre-delivery inspection of vehicles, sales of cars, after sales service, supply of spare parts and other services that promote sales of cars within the territory for which they are appointed. They have the right to sell their products and services through other dealers or intermediaries in any territory, whether or not one of their dealers is already established in that territory. Their dealers are required to maintain their outlets in accordance with their specifications and employ well-trained sales staff. Their agreements with their dealers usually have terms of five years. These agreements are generally renewable for successive terms of three years, by mutual agreement. The agreements typically permit termination by either the dealer or them with six months’ prior notice. Enhancing dealer performance: Their central office in Delhi, their regional offices and their area offices monitor and assist their dealer network. They have nine regional offices, five area offices and 187 sales and marketing personnel. They follow the performance of their dealers and frequently suggest improvements. In order to assist their dealers in enhancing their performance and capabilities, they have introduced a concept of “Balanced
  47. 47. Scorecard”. Using this tool, they seek to measure the performance of a dealership in several areas of operations, including sales, service, spares and accessories, financial management and management systems. They reward dealers who perform well on the “Balanced Scorecard” with a cash payment at the end of the fiscal year. They believe that the “Balanced Scorecard” serves as an effective incentive for dealers to enhance their performance. Dealer training: They have established standard operating procedures, showroom ambience and service quality standards for dealerships. They provide periodic training through their training centres located at their manufacturing facility and at Chennai, Kolkata, Guwahati and Pune. They have trained more than 2,600 and 3,400 dealer sales personnel. Their subsidiary, True Value Solutions Ltd., provides value-added services, such as manpower recruitment and training, to their dealers. AFTER-SALES SERVICE Network As on date there are 342 Maruti dealer workshops and 1,545 Maruti Authorised Service Stations, or MASSs, covering 898 cities in India. In addition, 24-hour mobile service is offered in 38 cities under the brand “Maruti On-road Service”. They intend to extend this service to an additional 25 cities over the next three years. As a benchmark for dealers with respect to service quality and infrastructure facilities, they have launched service stations under the brand “Maruti Service Masters, or MSMs, in three locations in India. They have service stations on 30 highways in India under the brand “Express Service Stations”. To promote sales of their spare parts and the availability of high quality, reliable spare parts for their products, they sell spares under the brand name “Maruti Genuine Parts”, or MGP. These are distributed through their dealer network and through authorised sellers of their spare parts, to whom they refer as stockists.
  48. 48. Many of their MASSs are at remote locations where they do not have dealers. In order to increase the penetration, in terms of sales volumes, of their products in these remote areas, they are exploring opportunities to integrate some of the MASSs into the sales process in order to increase sales of their cars and related products and services such as spares and accessories, insurance and financing. Genuine Accessories They have also entered the business of marketing car accessories under the brand name “Maruti Genuine Accessories”, or MGA, through their dealership network. They seek to provide customers with the opportunity to customize their vehicles with accessories such as music systems, security systems, car- care products and utility products. Warranty and Extended Warranty Program They offer a two-year warranty on all their vehicles at the time of sale. Their dealers are required to address any claim made by a customer, in accordance with practices and procedures prescribed by them, under the provisions of the warranty in force at that time. The dealers subsequently claim the warranty cost from them. They analyse warranty claims from dealers and either claim the cost from vendors, in the case of defective components, or bear the cost ourselves, in the case of manufacturing defects. They offer an extended paid-warranty program marketed under the brand, “Forever Yours” for the third and fourth year after purchase. They have entered into arrangements with insurance companies to cover the costs of warranties offered under this program. The extended warranty program is intended to maintain the dealer’s contact with the customer and increase the revenue generated from sale of spares, accessories and automobile-related services. An effort is made during the period of the extended warranty to encourage the customer to exchange his existing Maruti car for a new Maruti car, or upgrade to a new Maruti car.
  49. 49. 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 you’ll 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. 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.
  50. 50. NEED FOR CRM IN AUTOMOBILE INDUSTRY The global automotive industry exhibits most of the characteristics of mature industries and closely follows their business cycles. While vehicle industry sales have been strong for the past several years, they have started to slow recently due to the current global economic slowdown. Deteriorating economic conditions result in a drop in consumer confidence, which quickly impacts automotive sales due to their big-ticket status and the relative low cost of extending the life of an existing vehicle through maintenance and repair. The advent of the Internet as a research tool (75 to 80 percent of auto consumers research using the Internet) has shifted power to consumers, further increasing pressure on prices. At the same time, government regulation and consumer demands for sophisticated features have increased development, production, and marketing costs. Regional economic fluctuations favor consolidation among car companies, suppliers, and retailers -resulting in fewer, larger companies that have more complete product lines targeted at existing and new markets. Consolidation has heightened competition in all vehicle segments. Low-cost manufacturers are expanding beyond their home markets with entry level vehicles, traditional passenger car manufacturers are expanding into the light truck markets, and luxury manufacturers are moving down market with passenger cars and SUVs. As a result of these product and market extensions, consumers find it difficult to exhibit brand loyalty because vehicles have unclear brand identities, similar features, and comparable prices. In addition, an overpopulation of dealers has resulted in local and regional competition among same make dealers. This further reduces margins and damages the brand images the car companies spend large amounts of money to build. Relations between the car companies and their suppliers traditionally have been difficult. In response to competitive pressure, suppliers have been forced by the car companies to provide higher-quality components at constantly lower costs. The
  51. 51. resulting decrease in margins and the reduction in volume due to slowing sales have increased the pressure to consolidate and forced some suppliers to the brink of bankruptcy. Dealers too have a long history of adversarial relationships with the car companies. Independent entrepreneurs who view some of the car companies with skepticism or serious mistrust, dealers believe that many manufacturer-sponsored customer satisfaction programs are actually designed to force smaller dealers out of business or to gain control of customer relationships that the retailers believe they "own." These difficult relationships have prevented car companies and dealers from maximizing the lifetime value of their combined customers. There are few incentives or efficient methods for dealers and car companies to share critical data, resulting in ineffective management of product, service, and household information. In addition, consumers receive conflicting marketing communications from the two groups, which results in reduced brand value. KEY INDUSTRY PAIN POINTS • Decreasing sales and market share - The long-term battle for market share continues to intensify. In the mature automotive industry, where business cycles drive sales fluctuations, market share is critical to survival. Consumers are less brand-loyal than in the past, and every market segment has an increasing number of vehicle choices. To increase sales and gain ground in the market share battle, companies must improve their ability both to acquire first-time customers and to develop customer loyalty to their current brands. To achieve these related objectives, companies must set an aggressive goal -deliver the best customer experience in the automotive industry. • Difficult dealer relationships and a lack of dealer collaboration - As the consumer 's primary touch point ,the dealer network is a critical component of customer-facing operations. Therefore, the integration of the dealer network is absolutely essential to improving the quality of the customer experience. Only with an infrastructure that enables the
  52. 52. effective flow of information to and from dealers can companies create a complete view of their customers. Car companies must take the initiative in understanding the customer’s perspective throughout the buying cycle. • Lack of multichannel capabilities - With the advent of the Internet as a research tool, the majority of customers are accessing the automotive enterprises through several different channels. Many times, the switch between channels happens very rapidly as a prospect or customer can view a Web site, make a phone inquiry, and visit a retail store within days or even hours of an initial contact. To improve customer satisfaction and secure customer lifetime value, companies must be able to capture these multiple interactions, provide seamless management between channels, and leverage shared customer information to create rewarding experiences and to develop and execute highly targeted marketing campaigns. • Inefficient demand chain planning and high associated IT cost - Cost reduction is an ongoing competitive requirement. Just as supply chain management must be supported by a sophisticated information infrastructure, effective demand chain management also requires the right supporting infrastructure, enabling car companies to fully leverage each customer relationship through exceptional customer service, efficient lead generation and management, and effective promotions and campaigns. In addition, global automotive enterprises operate a wide variety of IT systems in their various business units and functional groups. Rationalizing these systems offers significant cost savings. • Lack of effective information sharing - Car companies must integrate global operations in order to achieve the benefits of consolidation -cost reduction, effective communication, and true integration of core competencies. In addition, internal alignment between business units
  53. 53. and functional groups is required to create a unified view of consumers, products, and services. Currently, each business unit, functional group, and brand operates through independent systems, programs, and touch points. As a result, there is limited synergy across the ecosystem, leading to significant inefficiencies, lack of coordination, and most important, an inability to maximize "share of wallet "from every customer through well-targeted marketing and cross-selling. Synergy between traditionally independent business units such as captive finance companies and between functional groups such as sales, service, and marketing is more critical now than ever before. Only by sharing customer information can customer lifetime value be maximized among different groups. • Complex data governance requirements - Global automotive enterprises have large, complex information technology ecosystems. While customer information must be shared within this ecosystem in order to fully maximize global operations, it must also be protected. Proper management of customer information requires a sophisticated capability to manage a variety of access rules and to accommodate legal restrictions that can change very quickly. The trust required for successful collaboration between groups in the automotive enterprise must be built by demonstrating that customer information can be shared while observing these complex requirements. • Difficulty managing employee relationships - In today 's fast-paced business environment, automotive companies need to ensure that their most valuable asset -their employees -have immediate access to the critical information, services, and applications required to be productive. Organizations must enable employees to make better decisions, work collaboratively, enhance customer relationships, and maximize productive time. Global automotive enterprises must be able to enact and enforce consistent policies across business units, instill a common corporate culture across a geographically dispersed and diverse workforce, equip employees with effective search tools to
  54. 54. access corporate knowledge bases, and provide employees with the training necessary to service customers in a volatile and demanding market. 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 don’t 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.
  55. 55. 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.
  56. 56. 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 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 Cheap & reliable quality
  57. 57. LIMITATIONS OF THE RESEARCH PROJECT The research study suffers from following limitations:  The Indian market is a vast and it was not possible to cover each and every customer in the available short span of time.  Generally, the respondents were busy in their work and were not interested in responding.  Respondents were reluctant to disclose complete and correct information about themselves and their organization.  Most respondents were reluctant to provide exact information as in why they preferred particular company’s car.  The research was conducted in present prevailing conditions. There can be some fluctuations in the market, which can offset the findings.  Measurement of customer satisfaction is complex subjects, which uses non-objectives method, which is not reliable.
  58. 58. QUESTIONNAIRE Q.1 Do you own a Car? Yes No Q.2 If Yes, which brand and model you are using? Q3. How long have you used it? A. Less than 1 year B. 1-3 year C. 3-5 years D. More than 5 years Q4. What makes you happy to purchase the brand and model at that time? A. Price B. Look C. Brand D. Engine capacity E. Seating space F. Mileage G. Service availability H. Quality I. Speed J. Interior Q5. Overall, how satisfied are you with your present car? A. Extremely satisfied B. Very much satisfied C. Neutral D. Very much unsatisfied E. Extremely unsatisfied
  59. 59. Q6. If you find all the above features in a customized way,would you prefer to go for a new purchase? A. Yes B. No C. Why Q7. If yes, which brand and model would you like to replace it with? Q8.Purchase details- A. From where did you purchase your last car? B. Did the dealer meet their promise? Q9. How would you like to purchase your new car? A. Direct cash B. Through easy finance system Q10. Do you know the brand Maruti Suzuki? A. Yes B. No Q11. If yes, how did you come across Maruti Suzuki? A. TV B. Hoardings C. Newspaper D. Friends and relatives E. Internet F. Others
  60. 60. Q12. Would you like to have a test drive of Maruti Suzuki car? A. Yes B. No Demographic profile-  Name  Age  Income  Occupation  Designation  Address for correspondence  Signature BIBLOGRAPHY o Reference Books, Journals, Newspaper, Web Sites, Reports, etc are to be listed, out here o Books o Philip Kotler, Marketing Management Analysis, Planning Implementation & Control Edition 1998. Prentice hall of India Ltd. New Delhi o Magazines Journals & Newspapers o Business Today o The Times of India.
  61. 61.  www.google.com  www.yahoo.com  www.maruti.com

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