CHAPTER-1

BUYING BEHAVIOUR OF COUSTOMERS AT

MARUTHI SUZUKI CARS

INTRODUCTION:
It gives me an immense pleasure to present you this entire project. The project

emphases on “THE IMPACT OF BRAND PREFERENCE AMONG B-SEGMENT CARS

ON BUYING BEHAVIOUR OF CUSTOMERS AT BELGAUM CITY ” the study is

undertaken at Shantesha Motors Pvt Ltd. Belgaum.The project report focuses on the Brand

preferred by the customers, their Buying Behaviour, customers preference towards dealers

and what all service the customer wanted.

Maruti Suzuki India Limited (Formally known as Maruti Udyog Ltd) was

established in 1981, February 24th. It was organized as a legal corporation beneath the

provision of the Indian Companies ACT, 1956 to converge the rising demand of persona

l transportation by the lack of an efficient public transport system. It is the largest car

manufacturing company in India accruing over 50% domestic car market. Suzuki Motor

Corporation is the largest manufacture of mini passenger vehicles in Japan. According to

Automotive Intelligence, Suzuki is eleventh largest vehicle manufacturing company in the

world and fourth in Japan in terms of worldwide sales. The company offered different range

of cars from passenger cars to sports cars. From 1982, Maruti Udyog was a subsidiary of

Suzuki Motor Corporation of Japan. They licensed and joint venture agreement had been

made between two companies on October, 2 1982. 1

Maruti was also involved in various businesses like manufacturing, sales

and purchasing of motor vehicles and parts of automobiles.

[1]
 Network Ltd, Maruti Insurance Agency services Ltd, Maruti Insurance

Agency Logistics Ltd.2 all these were affianced with promotion and selling motor insurance

policies to motorcycle owners and the seventh one True Value Solution Ltd were in business

of sales of certified pre-owned motorcycles under the brand ‘Maruti True Value’. They have

four manufacturing units in different areas in Haryana state.3

The first commercial car from the joint venture company was launched in

1983 called Maruti 800 which was very popular. In 1984 they launched Maruti Omni which

fits one full size family. In 1985 they introduced Maruti Suzuki Gypsy. In 1997 company

exposed to foreign market and imported 500 cars to Hungary. In 1990 they launched three

box cars with 1000cc engine; this was the major transformation in the company. In 1992

Suzuki Motor Corporation increased its share value to 50% in Maruti. Later year they

launched with Maruti Zen and in 1994 they introduced Maruti Esteem into the market.4

Maruti has inaugurated its second plant in 1995. In 1997, Maruti started

Maruti Service Master as model workshop to take care of its sales in India. In 2002, Suzuki

Motor Corporation increased the share in Maruti to 54.2%. By 2002 they established 10

finance companies in which 8 of them were finance companies and two were joint ventures.

They started a new business strategy for its purchase, sales and trade of old cards is Maruti

True Value. With the first worlds strategic model with the help of Suzuki Motor Corporation

they launched ‘the SWIFT’ in 2005.5

Maruti started working on new car plant and the diesel engine facility at

Manesar plant, Haryana in 2006-07. They opened a new institute of Driving Training and

Research (IDTR) in 2006 is a mutual project with Delhi Government for better Research in

the field of automobile. They introduced diesel cars like Swift and SX4 luxury sedam in

2007.

[2]
[3]
 OBJECTIVES OF THE STUDY

1. To find the impact of Brand preference among B-segment cars.

2. To understand the Buying behaviour of customers.

3. To know the facilities/services expected by the customers from the dealer.

4. To know the means of finance preferred by the customers.

5. To know the reason why people opt four-wheeler.

PURPOSE OF STUDY

The purpose of the study is to know the Brand preferred by the customers

and change in buying behavior can be estimated by this study. The marketing strategies can

be designed in accordance with this change. It will be helpful for the managers to make

decisions. Hence, this study should be conducted.

[4]
 SCOPE OF THE STUDY

The main purpose of the study is to know the “Impact of Brand preference

among B-segment cars on Buying Behavior of Customers at Belgaum city”. This study will

provide solutions to the management by understanding customers feedback.

Through this study Management will know :

 The reason why people opt four-wheeler.

 To know the features considered by the customers while purchasing a car.

 To know the most preferred brand by the customers.

OBJECTIVES OF THE STUDY

1. To find the impact of Brand preference among B-segment cars.

2. To understand the Buying behaviour of customers.

3. To know the facilities/services expected by the customers from the dealer.

4. To know the means of finance preferred by the customers.

5. To know the reason why people opt four-wheeler.

 [5]

CHAPTER-2

REVIEW OF LITERATURE

BRAND PREFERENCE:

Today, the primary capital of much business is their brands. For decades,

the value of the company was measured in terms of its real estate, then tangible assets, plants

and equipments. However, it has recently been recognized that a company’s real value lies

outside the business itself, in the minds of potential buyers. For the potential customer, a

brand is a landmark. Like money, it facilitates trade.

Faced with a multitude of silent or “hard –to-read” products, whose

performance cannot be assessed at first glance, customer are confused. Brand and prices

make products easier to “read”, removing uncertainty. A product price measures it’s

monetary value, it’s brand identifies the products and reveals the facts of it’s differences

functional value ,pleasure value and symbolic value as a reflection as a buyer’s self

image.One word, One Symbol Summarizes an idea, a sentence and a long list of attributes

values and principles infused into the product

A brand encapsulates identity, origin and difference. It evokes this

Information concentrate in a word or a sign. This is why brands are vital for business

exchange when faced with, say, hundreds of personal computers, a buyer can use brands to

structure this selection, to segment it, helping him to decide what he wants, looking towards

the products whose brand indicate that they will satisfy his expectations, needs, or wishes. In

markets in which technology and fashion mean that the choice is constantly evolving, brands

provide havens of stability, describing an identity and promising constant features and

direction.
 [6]

Brands are the real capital of business, yet brand management is still

in its infancy. At present, the tendency is to manage products that happen to have a name.

Management is still living in the age of the products, but brand management involves other,

specific approaches and principles. These are the focus of this presentation.

A brand is not a product: it is the product’s source, its meaning, and its

direction, and it defines its identity in time and space. Businesses are discovering that brand

equity must be managed, nurtured, and controlled. Brand consciousness is raising new

questions for mangers: how many brands be extended? What products and service should it

encompass? Or, on the other hand, what should its limit be, even when a certain turnovers is

expected from it? Going too far can also weaken brand equity.

How do you manage brands over time and keep them up to date, as

technologies, products and customers are changing? How do you manage while staying the

same? How do provide consistent synergic management of the range of product sold under a

single brand? How do you optimize image in the relationship between products and their

brand? How far can a brand be extended geographically? Does it have the potential to

become a homogeneous geo-brand in all countries? Or is this impossible, or even

undesirable? Many companies have the same name as their brand (e.g., Renault, Nestle, IBM,

BASF). What difference between managing a brand image and managing corporate and

institutional image? Finally, given that brands do have a value, how can this be measured, so

that it can be tracked and controlled? Should it be capitalized on the balance sheet, to indicate

its true economic value to stockholders, investors, and financial partners?

Brands vary in the amount of power and value they have in the

market place. At one extreme are brands that are not know by most buyers. Then there are

brands for which buyers have a fairly high degree of brand awareness.
 [7]
Beyond this are brands with a high degree of brand acceptability. There

are brands that enjoy a high degree of brand preference. Finally there are brands that

command a high degree of loyalty.

Tony O’ Reilly, former CEO of H. J. Heinz, proposed this test of brand

loyalty: “My acid test… is whether a house wife, intending to buy Heinz tomato ketchup in a

store, finding it to be out of stock, will walk out of the store to buy it elsewhere. ”

Aaker distinguished five levels of customer attitude toward his or her brand, from lowest to

highest.

1. Customer will change brands, especially for price reasons. No brand loyalty.

2. Customer is satisfied. No reason to change the brand.

3. Customer is satisfied and would incur costs by changing brand.

4. Customer values the brands and sees it as a friend.

5. Customer is devoted to the brand.

 [8]

STATEMENT OF THE PROBLEM

In Indian car industry, small car segments have played a very crucial and

significant role due to its economy, efficiency and effectiveness. Due to invasion of foreign

cars into Indian markets, the pace of competition has hiked. This has brought into market,

number of Brands and their variants competing to with each other.

All these factors have resulted in flux in the minds of the customers as to

which brand to go for. In other words, Brand-switching is gaining the momentum. So to

position the brand in the minds of the customers the company or dealer should keep the track

of this shift in preferences. Hence the main purpose of this study is to find the “Impact of

Brand preference among B-Segment cars on Buying behaviour of customers at

Belgaum.
 [9]

CHAPTER-4

ORGANIZATION PROFILE

MARUTI UDYOG LIMITED

ORGANIZATION OVERVIEW:

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 not only due to their undisputed leadership in small

cars but also to their commitment to actively bring to MUL contemporary technology and

Japanese management practices.A licence and a Joint Venture agreement was signed between

Govt. of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct

1982.

THE OBJECTIVES OF MUL THEN WERE:

1. Modernization of the Indian Automobile Industry.

2. Production of fuel-efficient vehicles to conserve scarce resources.

3. Production of large number of motor vehicles which was necessary.

 [10]

ORGANIZATION VISION

"The Leader in The Indian Automobile Industry, creating Customer

Delight and Shareholder's Wealth; A pride of India."

OUR CORE VALUES:

1. Customer Obsession

2. Fast, Flexible and First Mover

3. Innovation and Creativity

4. Networking and Partnership

5. Openness and Learning

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 more pleasurable to drive.

 [11]

PRDUCTION/ 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.
 [12]
CHAPTER-5

PRODUCTION

PRODUCTION MILESTONES

1 st 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

MILESTONES:

2006:

The car of the Year Maruti SWIFT.

2005:

The fiftieth lakh car rolls out in April, 2005

Growth in overall sales by 15.8%

 [13]

2004:

New (non AlC) 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, India's first colour-coordinated car

Maruti True value in Mumbai

Maruti Finance in Mumbai with 10 finance companies

 [14]

2001:

Zen Lxi

Maruti True Value launched in Bangalore and Delhi

Maruti Versa, India's first luxury MPV

Alto Spin LXi, with electronic power steering

Alto Vxi

Customer information centers launched in Hyderabad, Bangalore and Chennai

Launch of versa

2000:

First car company in India to launch a Call Center

New Alto

Altura, a luxury estate car

IDTR (Institute of Driving Training and Research) launched jointly with

the Delhi government to promote safe driving habits

1999:

Maruti 800 EX ( 796cc, hatchback car)

Zen LX (993cc, hatchback car)

Zen VXi (993cc, hatchback car with power steering)

Omni XL ( 796cc, MUV, high roof)

Baleno (1600cc, 3 Box Car)

Wagon R

Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai

as social initiatives.
 [15]

1998:

Maruti launches website as part of CRM initiatives

Zen D (1527 cc diesel, hatchback car)

Zen VX & Zen VX Automatic

New (Omni & Omni E) (796cc, MUV)

Launch of website as part of CRM initiatives

1998 Esteem (1299cc, 3 box car) LX, VX and AX

New Maruti 800 (796cc,hatchback Car) Standard and Deluxe

1996:

Gypsy (E) (970cc, 4WD 8 seater)

Omni (E) (796cc, MUV, 8 seater)

Gypsy King (1298cc, 4WD, off road vehicle)

Zen Automatic (993cc, hatchback car)

Esteem 1.3L (1298 cc, 3 box Car)AX

1995:

With the launch of second plant, installed capacity reached 200,000 units

1994:

Esteem1.3L (1298cc, 3 box car) LX

Produced the 1 millionth vehicle since the

commencement of production

1993:

Zen(993cc, hatchback Car), which was later exported in Europe and

elsewhere as the Alto

 [16]

1992:

SMC increases its stake

1991:

Reaches cumulative indigenisation of 65 percent for all vehicles

produced

1990:

Maruti 1000(970cc, 3 box), India's first contemporary sedan

1988:

Installed capacity increased to 100,000 units

1987:

Exported first lot of 500 cars to Hungary

1986:

Maruti 800 ( New Model-796cc, hatchback Car)

Maruti 800 ( New Model-796cc, hatchback Car)

1985:

Launch of Maruti Gypsy (970cc, 4 WD off-road vehicle)

1984:

Omni, a 796cc MUV

Installed capacity reached 40,000 units

1983:

Maruti 800, a 796 cc hatchback, India's first affordable car.

Production was started under JV A

 [17]

MARUTI 800

Maruti 800 is a small city car that was manufactured by Maruti Suzuki in

India from 1983 to 18 January 2013.[3] The first generation (SS80) was based on the

1979 Suzuki Fronte and had an 800 cc F8B engine, hence the moniker. Widely regarded as

the most influential automobile in India, about 2.87 million 800s were produced during its

course of which 2.66 million were sold in India itself.

 [18]

SUZUKI ALTO

Suzuki Alto is a kei car built by Suzuki. Its selling points have long included a

low price and good fuel economy. The model, currently in its eighth generation, was first

introduced in 1979 and has been built in many countries worldwide. The Alto badge has often

been used on different cars in Japan and in export markets, where it is considered a city car.
 [19]

MARUTI ZEN

The Maruti Zen was a 5-door hatchback produced and sold in India by

Suzuki's Indian subsidiary Maruti Suzuki. It has acquired significant popularity in India since

the nameplate was first introduced in 1993. The word "ZEN" is an acronym standing

for Zero Engine Noise. It also stands for the Japanese word "Zen" which means 'Complete'.

[20]
 SUZIKI ESTEEM

The Suzuki Esteem is an export nameplate for the Suzuki Cultus Crescent —

an aa marketit in Europe, Australia an mony Asien kintras as the Suzuki Baleno —

manufactured bi Suzuki Motor Corporation. In Indie, it wis manufactured MarutiSuzuki an

sauld as the Maruti Baleno.

[21]
 SUZIKI WAGON R

The Suzuki Wagon R is a kei car produced by the Japanese

manufacturer Suzuki since 1993. The R in the name stands for Recreation.It is one of the first
cars to use the "tall wagon" or "tall boy" design, in which the car is designed to be unusually
tall with a short bonnet and almost vertical hatchback, and sides in order to maximize the
cabin space while staying within the kei car dimension restrictions.

The Wagon R has been the best-selling kei car in Japan since 2003; and in
2008, Suzuki produced its three-millionth Wagon R.It has been a profitable car for Suzuki
even in the International market, mainly since introducing the car in India. Sales of Suzuki
Wagon R have reached 5 million units at the end of February 2010.
 [22]
SUZIKI SWIFT

The Suzuki Swift is a subcompact car produced by Suzuki. The Suzuki

Swift is classified in B-segment in European single market, segment known as Supermini in

British islands. Prior to this, the "Swift" nameplate had been applied to the Suzuki Cultus in

numerous export markets.

 [23]

SUZIKI VITARA

The Suzuki Vitara is a compact SUV produced by Suzuki in four generations

since 1988. The second and third generation models were known as the Suzuki Grand
Vitara, with the fourth and current series eschewing this prefix. In Japan and a number of
other markets, all generations have used the name Suzuki Escudo.
The original series was designed to fill the slot above the Suzuki Jimny. The first
generation was known as Suzuki Sidekick in the United States. The North American version
was produced as a joint venture between Suzuki and General Motors known as CAMI. The
Sidekick was sold in various badges such as the Geo Tracker (Chevrolet Tracker beginning
1998 model year) in the United States, and as the GMC Tracker, Chevrolet Tracker, Asüna
Sunrunner and Pontiac Sunrunner in Canada. It was also sold as the Santana 300 and 350 in
Spain. In the Japanese market, it was also sold as the Mazda Proceed Levante.
 [24]
CHAPTER-6

AWARDS
2004:

Maruti Suzuki was No.1 in Customer Satisfaction, 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 (200 1) for 4th time in a row

2001:

MUL tops in J D Power CSI (200 1) for 2nd time in a row.

 [25]

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 A ward

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

 [26]
CHAPTER-7

SOCIAL WELFARE

WELFARE CAMPS:
Every year we organize blood donation camps along with Red Cross, in which

employees donate blood. Eye check-up camps, family planning related camps and

otherhealth camps are also organized periodically.

MEDICAL SUPPORT & WELFARE:

The employees of Maruti have always donated generously to people affected

by natural calamities. They contributed Rs. 2 million to rehabilitate earthquake victims in

Latur.We also run a creche for the children of construction workers, which provides food

shelter and education for 85 children.

EDUCATION TO UNDERPRIVILEGED:

DPS Maruti Shiksha Kendra, an education programme for the underprivileged,

was inaugurated at DPS, Maruti Kunj recently. The objective of his project is to educate the

children of below poverty line (BPL) families from the nearby villages of Gurgaon district.

120 students in the age group of 5-8 years have already enrolled. DPS Maruti Kunj is

providing books, writing material and uniforms, refreshment and transport facilities to these

children.
 [27]

EDUCATION PROGRAMME FOR MOTHERS

'Chetna', an education programme for mothers - is an another endeavour to

provide basic education to mothers of the students of DPS Maruti Kunj and surrounding

villages. Majority of students at the school is first generation learners. Therefore, the concept

of starting a movement of learning 'Chetna' for mothers has been promoted. The response

has been encouraging and about 130 mothers are attending it regularly.
 [28]

CHAPTER-8

ENVIRONMENT CONCERN

OUR ENVIRONMENT POLICY:

 Prevent pollution.

 Promote energy reduction and use of alternative energy.

 Manage/ reduce those materials that put stress on environment.

 Promote the three R's (Reduce, Reuse, Recycle).

 Promote "Green" procurement.

 Provide our employees with environmental education to

increase their awareness.

Since the commencement of operations in 1981 we've been committed to

the protection of the environment and conservation of non-renewable .energy sources. Our

proactive approach depends not only upon meeting the expectations of the regulatory

authorities but achieving the high standards that we've set as a responsible corporate citizen.

This philosophy of trying to make a difference to the environment penetrates through our

employees to the process of manufacture and finally into our products.

POLLUTION CONTROL CAMPS:

Our elaborate system of Free Pollution Check-Up Camps which run at

regular intervals, is designed at making the cars already on the road operate more efficiently.

It also inculcates awareness for environmental protection among the many car users of India.
 [29]

MPFI:

We have introduced Euro II compliant MPFI engines in all our models. Along with

our vendors, we've made investments of over Rs. 60 million for introducing MPFI

technology compliant cars.

CNG:

Maruti is a strong advocate of CNG, a more eco-friendly fuel alternative to diesel

and petrol. In our endeavour to provide a cleaner and greener option to the customer, we are

in the process of equipping an extensive dealer network to assist Maruti owners in fitting

CNG kits.

RAIN WATER HARVESTING:

To recharge the aquifer, measures were taken to harvest the rain water through

soak pits, recharging shafts and water lagoons. These measures are capable of charging

nearly 50% of the average annual rainfall at Maruti, into the Earth.

MARUTI CULTURE:

Our employees are our greatest strength and asset. It is this underlying

philosophy that has molded our workforce into a team with common goals and objectives.

Our Employee-
 [30]

MANAGEMENT RELATIONSHIP IS THEREFORE CHARACTERIZED BY:

 Participative Management.

 Teamwork & Kaizen.

 Communication and information sharing.

 Open office culture for easy accessibility

 To implement this philosophy, we 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.

 The major players in small car segment are:
 Hyundai Motors India Ltd
 Telco
 Fiat India Ltd
 The battle royal in the India car market has entered the next phase. One

old assumption has been vindicated – that over 80% of the Indian car

market is still confined to the small, sub – Rs 4 lakh models. And that

mod-size and digger models can only provide the icing on the cake, not

the cake itself to any manufacturer.

[31]
 Quite apart from these specific lessons that each man learnt, there were

several surprises that the car market threw up. First world-class
 technology and quality were considered a given now. Second, the

Indian buyer had begun to expect model and engine upgrades as

frequently as his US or European counterparts. The Indica had to

 upgrade their engines in less than one year after launch, the power

steering option barely a year after it hit the market.

 And finally, while the manufacturers could continue to refer to it as the

‘Indian small car segment ’, the buyer characteristics were anything

but homogeneous. There were distinct group with distinct preferences.

And the days of one model becoming the undisputed heavyweight

champion were over for good.

[32]
CHAPTER-9

BRIEF DESCRIPTION OF MAJOR PLAYERS IN THIS

SEGMENT
HYUNDAI:

Hyundai has become the undisputed number two in the Indian auto market, and

the only one-even rivals admit- with the capability of giving leader Maruti a run for its money

in the total volume stakes though Hyundai in India currently sells just about a quarter of the

numbers that Maruti does.

Hyundai got everything right because it got the value-price–technology

equation almost perfectly right from day one. The Santro was an instant winner from the day

it was introduced in the Indian market because it offered the optimum mix of space and

technology in the small car market, at a highly competitive price. And with easy consumer

financing available in the market,Hyundai did not have to work too hard to persuade even

entry-level car buyers to go for the Santro instead of the Maruti 800.

And when it launched mid-size Accent some time later, Hyundai proved that it

could get its value-price equation consistently right across different segments.

But despite its great start, Hyundai made two mistakes and by Maruti it is also

one under the most pressure because after zooming to the number two spot, it cannot afford to

skid in the race. But Telco’s Indica is snapping at its heels. And Maruti's backlash is

expected to target the Santro more than any other model.

The two miscalculations that Hyundai made? First, while Hyundai Santro was

harping on the fact that it was a new generation car, it hadn't brought its latest engine

technology to India, it was a mistake that rival Matiz capitalised on once Euro-II pollution

norms were announced for the motors.

[33]
Daewoo most of the fact that every Matiz was Euro-II complaint –while

Hyundai could offer an Euro-II version only at a higher price. Though the latter moved quickly

in a damage-control exercise, the Santro did lose a bit of its sheen.

 But worse for Hyundai, it-miscalculated demand for its cars. The result: when

demand peaked for the Santro, it was in no position to offer the car off-the-shelf like its rivals.

Buyers had to wait for three months to get a Santro after booking it.

Hyundai is moving fast to sort out its capacity problem. Work will soon start

on the second phase of its Sriperumbudur car project, one year ahead of what was initially

planned. An additional investment of $400 million will help expand capacity from 1.2 lakh

cars to 2 lakh cars per annum.

That apart, the big worry for Hyundai is that other than the Santro (the Atos

in Korea), it doesn't 'have any other small car in its armoury. Unlike Suzuki which is

primarily a small car specialist, Hyundai can only introduce bigger cars in the Indian market

either from its own product range, or those of Kia Motors, which it took over last

year.

And the car maker is planning to do precisely that. Over the next two years,

It plans to offer the Sonata, priced at around Rs "12 lakh, m the segment above the

Astra/Lancer/City category. 'The Sonata is a niche product. We hope to sell about 250 cars a

month," says Gandhi. Also, Hyundai will be launching a sports utility vehicle (SUV),

currently under development in Korea.

Hyundai is looking a bit vulnerable now because globally it is a minnow

in the car market. St lacks the sheer money power and product muscle to keep fighting the

Fords and Telco in any market.

[34]
TELCO: THE HOME-GROWN CHALLENGER

When it first announced its plans,' scepticism abounded. With dozens of

global car makers hitting the Indian market with new products, few people would have given
Telco much of a chance with an indigenously-developed car. Especially since Telco did not

boast a great reputation for developing even world-class commercial vehicles,forget

passenger cars.

When the Indica hit the market, the consensus opinion was that Telco had

goofed up again. It had got its car and engine developed abroad - but all that was marred by

the production quality of the cars when they rolled out of the Telco plant in Pune. The Indica

was riddled with quality problems. A year down the line, almost everyone grudgingly admits

that the Indica has been a success. The Telco formula of pushing the biggest small car with a

rugged diesel engine has been a major hit in the semi-urban and rural markets.

Rajesv Dube, general manager, commercial (passenger cars), Telco,

points out the company's biggest advantage: low costs, fin other words, Telco can recover the

costs of introducing a new car at a much lower volume of sales than its rivals can. But the flip

side is that all global giants can amortise the costs of development by selling the same car

across different world markets, Telco can't.

[35]
At the moment though, the Telco strategy is to tap the niches first. The

Indica, with the diesel engines being pushed hard, was clearly aimed at a segment none of the
rivals was addressing. Similarly, the new car Magna it is planning to launch is again expected

to be a niche car addressing a particular need \n the Rs 12-16 lakh car segment. And in the

SUV market, Telco has already introduced the premium Safari, which again focuses on a

small niche.

It is a smart strategy as it avoids taking any of the big guns head on. But

in the long run,Telco knows it has to take on its rivals in the mainstream markets as well. It is

ramping up capacity to 160,000 from the current 120,000 cars anticipating that it will get the

demand. But Telco is also the weakest player in the small car market - and unless it keeps

springing surprises,it could be the first casualty in this round of the car battles.

FIAT INDIA LTD:

Fiat the Auto Titan was established in 1899 by Giovanni Agnelli. The

company first set its foot on the Indian Turf in the year 1905, with the appointment of

Mumbay Motor Cars Agency as its Sales Agent.

[36]

The company’s pivotal interest remains automobiles. It has the most

admired and sought after models worldwide to boast of which includes Fiat Lancia, Ferrari,
Maserati, Alfa Romeo etc., Siena being the latest offering to the Indian consumers.

Fiat is the only automobile manufacturer to have won the most coveted

"EUROPEAN CAR OF THE YEAR" award for a record nine times, more than any other car

manufacturer. These awards have not made the group complacent as it strives to achieve the

best in all aspects, which include the people, environment, technology and energy.This is

seen in the company’s endure towards Environmental issues and co-operation with all

environmental organizations.

Fiat has ambitious plans for making India its operational hub and plans

to invest one billion US dollars in the coming years.

Later the company introduced the Uno — Europe’s favourite car for

the last two decades into India. The Fiat 178 World Car Project has been developed

specifically to expand production in overseas markets. This project includes international-

class cars like the Siena sedan, the Siena Weekend station wagon and the Palio hatchback.

Fiat has achieved a high level of localization for all its cars, and is

making world-class cars available in India at even more competitive and affordable prices.

Fiat Automobiles

[37]

SpA owns the most-admired and sought-after models worldwide,

including the Fiat Lancia, the Ferrari, the Maserati and the Alfa Romeo.

Fiat is the only automobile manufacturer in the world that has won
the coveted European Car of the Year award nine times. It is also the only company in the

world that manufacturers recyclable cars.

In the pipeline are ambitious plans to make India its operational

hub in Asia in the future and invest US $1 billion here in the coming years.

[38]
CHAPTER-10

IDENTIFICATION & TRACEBILITY

IDENTIFICATION:
 1. New vehicle, which has completed pre-delivery inspection, shall be

identified as PDI-OK on the windshield, MUL Invoice and job order card, PDI and

stockyard egister.

2. Identification of vehicles at the service workshop shall be through vehicle

model, registration number and unique job order Nos.

3. Inspection and test status of service/repair of vehicles shall be identified

through the job order card.

4. Completed job order card and the stamp of the final inspector shall identify

Final OK vehicles.

5. Identification of spare parts shall be in the form of part Nos., as per

Maruti guidelines.

6. Identification of new vehicles is by its colour, model, chassis and engine

Nos., MUL Invoice, stockyard register.

TRACEABILITY:

1. Traceability shall be established though vehicle registration No. Job order

number and the date of job order.

2. Traceability of new vehicle at stockyard is established through chassis and

engine No, keyno., and parking slot No.

[39]
CHAPTER-11

MONITORING AND MEASUREMENT

CUSTOMER SATISFACTION:
 1. Feedback received from the customer on their perception and service

experience customer satisfaction measure (percentage) is generated using software supplied

by Maruti Udyog Ltd.

2. Results of customer satisfaction measure are discussed in the management

review meetings and counter measure for the continual improvement is initiated.

INTERNAL AUDIT:
There is a well-defined procedure No.: SM/BGM/04 to conduct internal

audit and examine the implementation of Quality Management System.

MONITORING AND MEASUREMENT OF PROCESSES:

1. Pre-sales process is monitored and measured by the number of

enquires and the closure of sales.

2. Sales process is monitored customer personal docket checklist,

commitment and delivery,SSI%.

3. In service, repeat jobs, customer complaints, feedback card %, CSI%,

PSF%, final inspection are monitored.

[40]

CHAPTER-12

IMPROVEMENT

CONTINUAL IMPROVEMENT:
 Shantesha Motors, Belgaum shall continually improve the effectiveness of

the Quality management System through commitment to Quality policy, Quality objectives

as well as use of audit results, management review meeting decisions, analysis of data,

corrective and preventive actions.

CORRECTIVE ACTION:

There is a documented system procedure No. SM/BGM/PR/05 to

implement corrective action on all the non-conformities arising from:

 Customer complaints

 Repeat Jobs

 System Non Compliances

 Post Service Follow Ups

 Post Sales Follow ups

 CSI negative feedback

 SSI negative feedback

 Road test

 Final inspection

 Internal Audit findings

 Supervision by supervisor\ Work Managers

 External Audits.

[41]
[42]
 CHAPTER-13

RESEARCH DESIGN

DEFINITION OF RESEARCH PROBLEM:

MANAGEMENT PROBLEM CLASSIFICATION:

In Indian car industry, small car segments have played a very crucial
and significant role due to its economy, efficiency and effectiveness. Due to invasion of
foreign cars into Indian markets the pace of competition has hiked. This has brought into
market numbers of brands and their variants competing with each other.
Hence in the meeting with sales manager and service manager, a
research project was discussed where both the managers wanted to analyze the buying
behaviour and the brand preferred by the customers in B-segment cars.

SITUATION ANALYS IS:

The Maruti Udyog Ltd has two types of service stations.

i)Authorized dealer with service station.

ii)Authorized service stations.

Shantesha Motors private Ltd. Comes under the first category i.e., authorized
dealer with service station but before Shantesha Motors there were two service station
namely Achal and Bharat. And also other local service stations.

MODEL DEVELOPMENT:

The study will provide solutions to the problem of the

management.

a) Management will know the most preferred brand by the customers.

b)Management will know the buying behaviour of the customers.

[43]
SPECIFICATION OF INFORMATION REQUIRED:

a) To know the features considered by the customer while

purchasing a car.

b) To know the facilities/services expected by the customers from the

dealer of service station.

c) To know the means of Finance preferred by the customers.

DATA COLLECION APPROACH :

The information necessary for this survey is collected by tapping

primary and secondary data.

PRIMARY DATA:
a)Questionnaire

b)Personal interaction

SECONDARY DATA:

a) Related information from internet:

.
b) Organization Report

[44]
 CHAPTER-14

MEASUERMENT TECHNIQUES

The measurement technique used for this project are Questionnaires and

attitude scales.

SELECTION OF SAMPLE :
Sampling allows us to concentrate our attention upon relatively small number of

people and hence devote more energy to ensure that the information collected from them accurate.

POPULATION: People from the city of Belgaum

SAMPLE FRAME: People who has own a four-wheeler car and prospect Buyers.

SAMPLING SIZE: 100 UNIT

DURATION: 60 DAYS

SAMPLE METHOD: Specifically stratified Random sampling method

i.e. the whole Belgaum city was divided into four major geographical

Segments i.e. Bagynagar segment, Bogarways segment ,Chidamber

nagar and J.N.M.C.segment.

SELECT THE METHOD OF ANALYSIS:

Data are useful only after analysis. Data analysis involves Converting a

series recorded observations into descriptive statements and information about relationship.

Hence concerned to this project method of analysis the data will be graphical method,Simple

Percentage method.
[45]
MEASURING TOOLS:

Data are useful only after analysis. Data analysis involves Converting a
series recorded observations into descriptive statements and information about relationship.
Hence concerned to this project method of analysis the data will be graphical
method, Simple Percentage method.

ANALYSIS:

1. Please rank the following features when you buy a new car.

a) Look/ Aesthetics

Rank No. of Percentage

respondent
1 4 4
2 16 16
3 8 8
4 40 40
5 4 4
6 4 4
7 - -
8 12 12
9 12 12

[46]
 The above graph shows rank wise percentage of customer’s preference for

Look. It shows that Look is not their first preference, 40% of the respondents have given 4th

rank for Look whereas only 4% have given 1st rank for the look.

Ran No. of respondent Percentage

k
1 12 4
2 60 16
3 8 8
4 8 8
5 - -
6 - -
7 8 8
8 4 4

The above graph shows rank wise percentage of customer’s preference for

Price. It shows that Price is their second preference,60% of the respondents have given 2nd

rank for Price, whereas only 12% have given 1st rank for the Price.
[47]

c) Mileage
 Rank No. of Percentage
respondent
1 68 68
2 8 8
3 12 12
4 4 4
5 8 8
6 - -
7 - -
8 - -
9 - -

The above graph shows rank wise percentage of customer’s preference for

Mileage. It shows that Mileage is their First preference i.e. 68% of the respondents have given

1st rank for Mileage.

[48]

d) Maintenance
 Ran No. of Percentag
k respondent e
1 4 4
2 - -
3 56 56
4 16 16
5 4 4
6 8 8
7 - -
8 8 8
9 4 4

The above graph shows rank wise percentage of customer’s preference for

Maintenance. It shows that Maintenance is not their First preference, 56% of the respondents

have given 3rd rank for Maintenance, whereas only 4% have given 1st rank for the

Maintenance.

[49]

e) Safety features
 Ran No. of Percentag
k respondent e
1 8 8
2 12 12
3 4 4
4 12 12
5 16 16
6 36 36
7 4 4
8 4 4
9 4 4

The above graph shows rank wise percentage of customer’s preference for Safety

features. It shows that Safety is not their First preference, 36% of the respondents have given

6th rank for safety, whereas only 8% have given 1st rank for the safety features.

[50]

f) Company’s service:
 Ran No. of Percentag
k respondent e
1 - -
2 - -
3 - -
4 12 12
5 12 12
6 12 12
7 16 16
8 44 44
9 4 4

The above graph shows rank wise percentage of customer’s preference for

company service. It shows that company service is not their First preference, 44% of the

respondents have given 8th rank for company service, whereas no one has given 1st rank for the

company service.
[51]

g) Space:
 Ran No. of Percentag
k respondent e
1 - -
2 - -
3 4 4
4 - -
5 40 40
6 8 8
7 4 4
8 12 12
9 32 32

The above graph shows rank wise percentage of customer’s preference for

Space. It shows that Space is not their First preference, 40% of the respondents have given 5th

rank for safety , whereas no one has given 1st rank for the safety features.

[52]
 h) Ready availability:

Ran No. of Percentag

k respondent e
1 - -
2 - -
3 4 4
4 - -
5 40 40
6 8 8
7 4 4
8 12 12
9 32 32

The above graph shows rank wise percentage of customer’s preference for

Ready availability. It shows that Ready availability is not their First preference, 40% of the

respondents have given 5th rank for Ready availability, whereas no one has given 1st rank for

the Ready availability.

[53]
 i) Comfort:

Ran No. of Percentag

k respondent e
1 4 4
2 4 4
3 4 4
4 4 4
5 8 8
6 20 20
7 16 16
8 4 4
9 36 36

The above graph shows rank wise percentage of customer’s preference for

Comfort. It shows that Comfort is not their First preference, 36% of the respondents have given

9th rank for Comfort, whereas only 4% have given 1strank for Comfort.

[54]
2) What is your budget for a new car?

Purchasing Number of Respondent in

power of the respondent Percentage
respondent
< 3L 20 20%
3-4L 64 64%
4-5L 16 16%

Purchasing power of the Customers

20%
16%

< 3L
3-4L
4-5L

64%

 The above graph shows that 20% of respondents are willing to spend less than 3 Lakh

rupees, 64% of respondents are willing to spend between 3-4 Lakh rupees and 16% of

respondents are willing to spend between 4-5 Lakh rupees.

 [55]

3) Which of the following facilities/ services do you except from the dealer?

Facilities / Services No. Of Respondents

Quick service 84

1 Yr Free service 76

Discount on Accessories 12

Home Delivery 8

Discount on Spare Parts 24

Installment Payment Facility 72

Discount on Stereo System 8

Vehicle Registration Process 12

 Facilities Expected By Customers
84

72 8
Quick service
1 Yr Free service
12
Discount on Accessories
Home Delivery
Discount on Spare Parts
Installment Payment Facility
Discount on Stereo System
Vehicle Registration Process
12
24 8 76

 According to customer preference quick service, 1 Yr Free service and installment

payment facility are considered to be the most important facility / services from the

dealer / service station.

[56]

4) Which means of Finance would you prefer?

 No. Of Respondent
Means of Finance Respondents in percentage

Employee Loan 16 16%

Bank Loan 64 64%

Car Finance Companies 12 12%

Co-operative Society 8 8%

Means of Finance

70%

60%

50%

40%
30%

20%

10%

0%
Employee Loan Bank Loan Car Finance Co-operative
Companies Society
  It is found from the survey that 64% of the respondents prefer bank loan as the means

on finance followed by employee loan, car finance companies, and co-operative

society.

[57]

5) Rank the following in the order of preference:

a) Maruti DLX:

Rank No. of respondent Percentage

1 4 4
2 4 4
3 4 4
4 - -
5 - -
6 12 12
7 - -
8 - -
9 16 16
10 60 60
 The above graph shows rank wise percentage of customer’s preference for

Maruti DLX car. It shows that Maruti DLX car is not their First preference, 60% of the

respondents have given 10th rank for Maruti DLX, whereas only 4% have given 1st rank for

Maruti DLX.
[58]

b) Maruti Zen:

Rank No. of respondent Percentage

1 4 4
2 4 4
3 12 12
4 4 4
5 12 12
6 4 4
7 4 4
8 8 8
9 48 48
10 - -
 The above graph shows rank wise percentage of customer’s preference

for Maruti Zen car. It shows that Maruti Zen car is not their First preference, 48% of the

respondents have given 9th rank for Maruti Zen, where as only 4% have given 1st rank for

Maruti Zen.

[59]
c) Maruti Alto:

Rank No. of respondent Percentage

1 64 64
2 8 8
3 4 4
4 8 8
5 4 4
6 8 8
7 4 4
8 - -
9 - -
10 - -
 The above graph shows rank wise percentage of customer’s preference for

Maruti Alto car. It shows that Maruti Alto car is their First preference i.e. 64% of the

respondents has given 1st rank for Maruti Alto.

[60]

d) Maruti Swift:

Rank No. of respondent Percentage

1 4 4
2 8 8
3 64 64
4 8 8
5 4 4
6 4 4
7 - -
8 8 8
9 - -
10 - -
 The above graph shows rank wise percentage of customer’s preference

for Maruti SWIFT car. It shows that Maruti SWIFT car is not their First preference, 64% of the

respondents have given 3rd rank for Maruti SWIFT, where as only 4% has given 1st rank for

the Maruti SWIFT.

[61]

e) Maruti WagonR:

Rank No. of respondent Percentage

1 - -
2 4 4
3 - -
4 8 8
5 8 8
6 4 4
7 56 56
8 8 8
9 8 8
10 4 4
 The above graph shows rank wise percentage of customer’s preference for

Maruti WagonR car. It shows that Maruti WagonR car is not their First preference, 56% of

the respondents have given 7th rank for Maruti WagonR, whereas no one has given 1st rank

for Maruti WagonR.

[62]

f) Fiat Palio

Rank No. of respondent Percentage

1 12 12
2 - -
3 4 4
4 4 4
5 4 4
6 48 48
7 8 8
8 4 4
9 4 4
10 12 12
 The above graph shows rank wise percentage of customer’s preference for

Fiat Palio car. It shows that Fiat Palio is not their first preference, 48% of the respondents have

given 6th rank for Fiat Palio, where as only 12% of the respondents have given 1st rank for Fiat

Palio.
[63]

h) Hyundai Santro:

Rank No. of respondent Percentage

1 4 4
2 44 44
3 8 8
4 4 4
5 12 12
6 8 8
7 4 4
8 8 8
9 8 8
10 - -
 The above graph shows rank wise percentage of customer’s preference for

Hyundai Santro car. It shows that Hyundai Santro is not their First preference, 44% of the

respondents have given 2nd rank for Hyundai Santro whereas only 4% of the respondents have

given 1st rank for Hyundai Santro.

[64]

i) Hyundai Getz:

Rank No. of respondent Percentage

1 4 4
2 12 12
3 - -
4 40 40
5 12 12
6 - -
7 8 8
8 12 12
9 8 8
10 4 4
 The above graph shows rank wise percentage of customer’s preference for

Hyundai Getz car. It shows that Hyundai Getz is not their First preference, 40% of the

respondents have given 4th rank for Hyundai Getz whereas only 4% of the respondents have

given 1st rank for Hyundai Getz.

[65]

j) Tata Indica:

Rank No. of respondent Percentage

1 4 4
2 12 12
3 4 4
4 16 16
5 40 40
6 4 4
7 4 4
8 4 4
9 - -
10 12 12
 The above graph shows rank wise percentage of customer’s preference for Tata

Indica car. It shows that Tata Indica is not their First preference, 40% of the respondents have

given 5th rank for Tata Indica whereas only 4% of the respondents have given 1st rank for

Tata Indica.

[66]

6) Do you own a car?

Response No. of Respondent Respondents in %

Yes 68 68%
No 32 32%
 The above graph shows that 68% of the respondents are owners of cars and 32%

of respondent have not owned car but are prospect buyers.

[67]

7) Why do you opt for a four wheeler?

Purpose Respondent

Need 4

Comfort / Convenience 52

Status 12
  It is found from the survey that 52% of the respondent opt four-wheeler for the

comfort / convenience but not for need & status.

[68]

8) How did you get to know about this car?

Awareness No. of respondent Percentage

TV Advertisement 26 38.24
10.29
Magazines / Newspaper 7
32.35
Friends 22
 13.24
Existing Customers 9
Car Finance Companies 4 5.88

 The above graph shows that 38.24% of the respondents came to know about this car

through TV advertisement and 32.35% of the respondents came to know about the car

through friends.

[69]

11) Please tick the following attributes of your car

a)

Price Respondents Percentage

Expensive 25 36.76

Reasonable 43 63.24
 From the above graph it is clear that 63.24% of the respondents feel that the

car which they own is expensive and 36.76% feel that the price of the car which they own is

reasonable.

[70]
b)

Style/Aesthetics Respondents Percentage

Stylish 51 75

Simple 17 25
 Less comfortable 12 17.65

From the above graph it is clear that 75% of the respondents feel

that the car which they own is stylish and 25% feel that the car which they own is simple.

[71]
c)
 From the above graph it is clear that 82.35% of the respondents feel that

the car which they own is comfortable and 17.65% feel that the car which they own is less

comfortable.

[72]
d)

Maintenance Respondents Percentage

Expensive 49 72.06

Reasonable 19 27.94

From the above graph it is clear that 72.06% of the respondents feel that the

maintenance cost of the car which they own is expensive and 27.94% feel that the

maintenance cost of the car which they own is reasonable.

[73]
e)

Fuel efficiency Respondents Percentage

Satisfactory 44 64.71

Not satisfactory 24 35.29

From the above graph it is clear that 64.71% of the respondents feel that the

fuel efficiency of the car which they own is satisfactory and 35.29% feel that the fuel

efficiency of the car which they own is not satisfactory.

[74]
 CHAPTER-15

EMPLOYEE WELFARE

RETENTION EMPLOYEE WELFARE :

Employee retention is a process in which the employees are encouraged to

Remain with the organization for the maximum period of time or until the completion of

the project .Employee retention is beneficial for the organization as well as the employee.

EMPLOYEE WELFARE:
 Residential Colonies for Employees – Chakkarpur & Bhondsi

 Hospitalisation Reimbursement – on actuals without Ceiling

 Vehicle Loans

 Household Equipment Loans

 House Building Advance

 Annual Advance

 MUL PF Trust – for better Mgt., Service & speedy redress

 Proposed MUL Pension Scheme

 Learning Opportunity - Benchmark in Auto Technology

 Professional Value addition through Training

 Opportunity for foreign training at SMC, Japan

 Job Rotation & Job enrichment

[75]
EMPLOYEE ENGAGEMENT –ESOPs:
Maruti Udyog Ltd. Employees Mutual Benefit Fund Scheme Managed by

a 10-member Trust Fixed Equity of 0.26% Lock-in period of 3 years Transferable Internally

FUTURE CHALLENGES
 Realigning organisation culture based on new vision & values

 Objective performance management & development system

 Transparent job rotation & job enrichment

 Performance linked reward and recognition system

 Career planning & promotion policy

 Revised recruitment policy

 Competency mapping

 Strong fucus on training initiatives

 Build a learnng organisation

 Continuous value addition to professional skill

 Customised training

 Training to the personnel of business partners

 Internal Communication

 Union alignment

 Employee involvment & participation

[76]
COMPANY’S OBJECTIVES:

 Short term( 1 year)

 Long term (2-4 years)

 Increase the sale of high quality cars

 Space and product extension
 Increase the productivity
 To expand the business in various countries.
 To build high range of Sports car
 To build the world cheapest car.

STRATEGIES:
Maruti has a clear strategy to increase the profit and grow in market share. The

company has to plan, to achieve this by increase the sale with the existing customer, attract

the new customers and moving into the new market. They have also planned to enhance the

offers available through the company’s website. And the company has decided to expand the

business in different parts of the world with cost effective to sustain in the competitive world.

[77]
MARKETING MIX

PRODUCT:
Product is an important term in business, where all company will produce
product with better quality, but Maruti is concerned to produce products according to the
demands of the customers, to make more efficient and effective in terms of fulfilling the
customer needs.
PRICE:
 Maruti have high price for premium products and for Sports model, where there
is a range of products or services the pricing reflect the benefits of parts of the range. They
also use value pricing during the times of recession and increased competition. Maruti also
produces the low price products to attract the customers and for both upper middle class and
middle class people.
PROMOTION:

1.The endorsement is with simple video .

2.Making customer comfortable through test drive.

3.Targeting people of all class.

PEOPLE:
Introducing services in a way that suits all range of peoples. They attract

people using good promotion and retain the customers with good customer service and

support.

[78]

PLACE:
Maruti Suzuki had 802 dealerships across 555 towns and cities in India. It has

906 dealer workshops and 1,834 Maruti Authorised Service Stations in 1,335 towns and

cities. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in

India.

BUDGET BREAKDOWN:
Country’s largest car maker Maruti Suzuki India (MSI) said it would consider

taking different measures after April to protect its margins due to fluctuation in Japanese

Yen, post the devastating earthquake and tsunami.

 “For this month, we are completely protected. In fact, we are covered till April.

Beyond that if Yen continues to appreciate, then we will have to take a call to counter it,”

MSI chief financial officer Ajay Seth said.

The company’s margins are affected whenever the yen appreciates, while it is

beneficial if it depreciates. After the natural disaster that struck the island nation on March

11, the Japanese currency is quoted at about 81 yen against a US dollar compared to that of

about 83 yen earlier.

There is strong volatility going on at present, with yen appreciating as much as

to 76 yen against a dollar recently.

Market analysts pointed out that currency hedging is a strong possibility.

“Usually, Maruti hedges yen against the euro instead of rupee to mitigate the impact,” an

analyst with a leading brokerage firm, who asked not to be identified, said.

On the component sourcing from Japan: “Of our total raw material

procurement, about 25 per cent are imported.”

[79]
Out of those imported parts, about 80 per cent are purchased in yen. During

the October-December period last year, MSI spent Rs 6,959.03 crore in consumption of raw

materials and components. It also paid Rs 460 crore as royalty in the quarter to its parent

company Suzuki, which is about 5.5 per cent of MSI’s total sales.

The impact of Japan’s natural disaster on MSI’s production, it will remain

unaffected for some time till next month as the company has enough inventory of

components. “Besides the stock at the plants, getting some supplies, which will reach from

Japan that started sailing just before the earthquake”.

Last week, the company had said it was assessing the possible impact of
the natural calamity on its components import from Japan. Earlier, MSI had cancelled the

celebrations for rolling out its 1,00,00,000th car in view of the catastrophe. Shares of MSI

were trading at Rs 1,170.05 on the Bombay Stock Exchange during late afternoon trade, up

3.42 per cent from its previous close.

Conclusion:
The strength of the organization lies in high quality products and the
company’s good financial resources. Though they do not have a particularly well suited
market for their product, still they invest more on their products which is one of the strengths
of Maruti. The weakness of Maruti lies in their high operations cost and the threat from the
competitors. Maruti has to focus on the areas of product design and quick service to the
customers. The Threat lies in the Strong competition and the increase in the sale of the
products due to the competition.

[80]