A Study On Marketing Strategy of Maruti

1.
1 INTRODUCTION
The Indian Automobile Market is expected to grow at a CAGR of 9.5 percent

amounting to Rs. 13,008 million by 2010. The Commercial Vehicle Segment has
been contributing to the automobile market to a great extent.
Many foreign companies have been investing in the Indian Automobile Market in
various ways such as technology transfers, joint ventures, strategic alliances, exports,
and financial collaborations. The auto market in India can boast of attractive finance
schemes, increasing purchasing power, and launch of the latest products.
Total sales of major car manufacturers in India registered a figure of 0.674 million
units at the end of March, 2007. The number of car exports in India was 39,295 units.
General Motors, Maruti, and Honda accounted for 60 percent of the market sales at
the end of April,2007. There has been an increase in the purchase of motorcycles and
cars both, in the rural as well as urban areas.
Maruti Suzuki is India’s No. 1 customer satisfaction car company. Its sale is more
than 50% of care of Indian car market. But now it is getting a good competition with
other new car company and foreign companies and its sales is going down because
other car companies are trying to present different types of new car in different
segment. So in our study in we had tried to study Maruti Suzuki segmentation of cars
and its sales trend and its effect on customer. This project is all about segmentation
and sales trend study of Maruti Suzuki. Through our study we are trying to analyze
the customer demand in different segments and advancement required in Maruti’s
segmentation. We are also analyzing Maruti Suzuki salestrend. We had visited
different customer of Maruti Suzuki and other company in Gandhinagar three village
(kudasan,Raysan,Koba) and asked some question and based on that we are tying to
analyze the data and sales trend of Maruti Suzuki & competition from another car
manufacture. We had also collected some secondary data of different study done on
Maruti Suzuki and based on that we are trying to present the competition trend
analysis of Maruti Suzuki.
1 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

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1.2 INDIA FOUR WHEELER INDUSTRY
The Four-Wheeler Industry in India has not quite matched up to the performance of
its counterparts in other parts of the world. The primary reason for this has been the
all-pervasive regulatory atmosphere prevailing till the opening up of the industry in
the mid-1990s. The
various layers of legislative Acts sheltered the industry from external competition for
a long time. Moreover, the industry was considered low-priority as cars were thought
of as unaffordable luxury". Post Liberalization, the car market in India have been in a
burgeoning stage with all types of cars flooding the market in order to meet
thedemands of Indian customers who are increasingly exposed to state of the
worldautomobiles and want the best when it comes to purchasing a car.
It is expected that by 2030, the Indian car market will be the 3rd largest car market
across the globe. The main encouraging factors for the success story of the car market
in India are the increase in the opportunity for new investments, the rise in the
GDP rate, the growing per capita income, massive population, and high ownership
capacity. The liberalization policies followed by the Indian government had been
inviting foreign players to participate in the car market in India. The recent trend
within the new generation to get work in the software based sector has led to the
risein the income level and change in the lifestyle significantly, which has further led
to the increase in the demand for luxurious cars among them.
The car Market in India is crowded with all varieties of car models like the smallcars,
mid-size cars, luxury cars, super luxury cars, and sports utility vehicles. Initially the
most popular car model dominating the Car Market in India was the
Ambassador,which however today gave way
to numerous new models like Hyundai, Honda, Mercedes-Benz, BMW, Bentley and
many others. Moreover, there are many other models of cars in the pipeline, to be
launched in the car market in India. Some of the leading brands dominating the
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carmarket in India at present are Hindustan Motors, Reva Electric Car Co., Fiat
IndiaPrivate Ltd., Daimler Chrysler India Private Ltd, Ford India Ltd., Honda Siel
Cars India Ltd., General Motors India, Hyundai Motors India Ltd., Skoda Auto India
Private Ltd., and Toyota Kirloskar Motor Ltd. Since the demand for foreign cars are
increasing with time, big brands like Mercedes Benz, Volkswagen, Aston
Martin,Ferrari, and Rolls-Royce have long since made a foray into the Indian car
market.
1.3 FACTS ABOUT INDIAN CAR MARKET:-
Although the Indian automobile industry has come a long way since the deregulation
in 1993, India does not rank well among its global peers in many respects, viz., the
contribution of the sector to industrial output, number of cars per person, employment
by the sector as a percentage of industrial employment, number of months' income
required to purchase a car, and penetration of cars.
Figure:-Passenger vehicle stock per 100 people
India is far behind from other countries with just 6.9 cars per 100 persons, while
Unites States has 76.9 cars on per 100 persons. Among developing countries, Russia
also stands ahead than India and China with 16.3 cars per 100 persons.
Two things that stunted growth of the Indian automobile industry in the past have
been low demand and lack of vision on the part of the original equipment
manufacturers (OEMs). However, the demand has picked up after the liberalization
of the regulatory environment, and
global OEMs who enjoy scale economies both in terms of manufacturing and research
and development (R&D) entered the Indian market. This has resulted in a significant
shift in the way business is conducted by suppliers, assemblers and marketers.

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1.4 KEY DATA
1. Country: INDIA
2. BSE: 532500
3. NSE: MARUTI
4. Exchanges: BOM
5. Major Industry: Automotive
6. Sub Industry: Diversified Automotive Mfrs.
7. 2009 Sales: 206,638,000,000 (Year Ending Jan 2010)
8. Employees: 7,159
9. Currency: Indian Rupees
10. Market Cap: 399,028,129,369
11. Fiscal Yr Ends: March
12. Shares Outstanding: 288,910,060

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13. Share Type: Ordinary
1.5 COMPANY PROFILE
Maruti suzuk i India LTD
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. It was established with the objectives
of -modernizing the Indian automobile industry, producing fuel efficient vehicles to
conserve scarce resources and producing indigenous utility cars for the growing needs
of the Indian population. A license and a Joint Venture agreement were signed ith the
Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the
equity and agreed to provide the latest technology as well as Japanese management
practices.
Suzuki was preferred for the joint venture because of its track record in
manufacturing and selling small cars all over the world. There was an option in the
agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years
later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-
government organization managed on the lines of Japanese management practices.
Maruti created history by going into production in a record 13 months. Maruti is the
highest volume car manufacturer in Asia, outside Japan and Korea, having
producedover 5 million vehicles by May 2005. Maruti is one of the most successful
automobile joint ventures, and has made profits every year since inception till 2000-
01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5
billion, high depreciation on new model launches resulted in a book loss.

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1.6 COMPANY HISTORY AND BACKGROUND
The Evolution Maruti’s history of evolution can be examined in four phases:
two phases during pre-liberalization period (1983-86, 1986-1992) and two phases
during post-liberalization period (1992-97, 1997-2002), followed by the full
privatization of Maruti in June 2003 withthe launch of an initial public offering
(IPO).The first phase started when Maruti rolled out its first car in December 1983.
During the initial years Maruti had 883 employees, a capital of Rs. 607 mn and profit
of Rs. 17 mn without any taxobligation. From such a modest start the company in just
about a decade (beginning of second phase in 1992) had turned itself into an
automobile giant capturing about 80% of the market share in India. Employees grew
to 2000 (end of first phase 1986),3900 (end of second phase 1992) and 5700 in 1999.
The profit after tax increased
from Rs 18.67 mn in 1984 to Rs. 6854.54 mn in 1998 but started declining during
997-2001.During the pre-liberalization period (1983-1992) a major source of Maruti’s
strength was the wholehearted willingness of the Government of India to subscribe to
Suzuki’s technology and the principles and practices of Japanese management.
Largenumber of Indian managers, supervisors and workers were regularly sent to the
Suzuki plants in Japan for training. Batches of Japanese personnel came over to
Maruti to train, supervise and manage. Maruti’s style of management was essentially
to follow Japanese management practices.

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The Path to Success for Maruti was as follows:
 teamwork and recognition that each employee’s future growth and prosperity is
 totally dependent on the company’s growth and prosperity
 strict work discipline for individuals and the organization
 constant efforts to increase the productivity of labor and capital
 steady improvements in quality and reduction in costs
 customer orientation
 long-term objectives and policies with the confidence to realize the goals
 respect of law, ethics and human beings. The “path to success” translated into
 practices that Maruti’s culture approximated from the Japanese management
 practices.
The company vouches for customer satisfaction. For its sincere efforts it has been
rated (by customers)first in customer at is faction among all car makers in India for
ten years in a row in annual survey. Maruti Suzuki India Limited, a subsidiary of
Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for
over two decades.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In
all, over six million Maruti cars are on Indian roads since the first car was rolled out
on 14 December 1983.

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1.7 BOARD OF DIRECTORS
1. Mr Shinzo Nakanishi, Chairman
2. Mr Jagdish Khattar, Managing Director
3. Mr Hirofumi Nagao, Joint Managing Director
4. Mr Shinichi Takeuchi, Joint Managing Director
5. Mr Kinji Saito, Director (Marketing and Sales)
6. Mr Osamu Suzuki, Director
7. Mr R C Bhargava, Director
8. Mr S V Bhave, Director
9. Mr Kumar Mangalam Birla, Director
10. Mr Amal Ganguli, Director
11. Ms Pallavi Shroff, Director
12. Mr Manvinder Singh Banga, Director

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1.8 VISION AND MISSION
Vision
The leader in the India Automobile Industry, Creating Customer Delight and
Shareholder’s Wealth; A pride of India”
Mission
To provide maximum value for money to their customers through continuous

improvement of products and services.
Maruti has a network of 391 sales outlets across 230 cities all over India. The service
network covers 1,113 towns and cities, bolstered by 2,142 authorized service
outlets.The company's change in strategy and emphasis on developing effective
marketing communications was their highlights.

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1.9 KEY SUCCESS FACTORS
(1)The Quality Advantage
Maruti Suzuki owners experience fewer problems with their vehicles than any other
car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1in
the premium compact car segment and the Esteem in the entry level mid - size car
segment across 9 parameters.
(2)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 MUL customers
in finding the right car.
(3)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.
(4)One Stop Shop

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At Maruti Suzuki, customers will find all 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 car related needs.
(5) The Low Cost Maintenance Advantage
The acquisition cost is unfortunately not the only cost customers 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 where Maruti Suzuki shines.
(6)Lowest Cost of Ownership
The 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.
(7) Technological Advantage
It has 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.

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1.10 PRODUCT OF THE ORGANIZATION
ALTO - LET’S GOS
The alto is a great combination of economy, practicality and styling. A runaway

success on the roads of Europe, it exemplifies the benchmark in build, quality and
reliability in a compact car. This is testified by the 24 hour endurance record set
onAugust 3, 2003 of covering 3082 kms in 24 hours at an average speed of 128 kmph.
BALENO – SURPRISING PERFORMANCE
India’s true performance sedan is upwardly mobility, redefined. The 13 advanced

noise reduction technologies ensure the cabin is quiet and peaceful. The flat torques of
132 Nm allows one to enjoy 94 bhp of refine power. Enjoying a cult following among
those who appreciate technology as an art form, the Baleno is a truly awesome
performer.

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GRAND VITARA XL – 7 - LIVE THE GRAND LIFE
Live the grand life with the new GRAND VITARA XL –7. This luxurious 7 seater, 4
wheel drive sports utility vehicle comes equipped with a powerful V6 engine, 166 bhp
of power and 236Nm of torque. Which enables you to conquer any terrain withutmost
ease? Enjoyed by both the adventurous and successful, the new restyled Grand Vitara
XL –7 is now available in India directly imported from Suzuki, Japan.
GYPSY – ADVENTURES UNLIMITED
Be it the wild outdoors or the urban jungle, the Gypsy King glide by with ease. The
adventurous streak runs through all the gypsy siblings. This 1300 cc off – road vehicle
combines the raw of 80 bhp (at 6000rpm) with superb 4 – wheel drive
maneuverability and a rugged frame (it’s available in both soft and hard topversions).
It’s useful fifth gear, of course, delivers over drive for on – road cruising.
OMNI – FITS ALL
The Omni is truly India’s Original Multipurpose Vehicle. Today it is available in

sixavatars – 5 seater, 8 seater, cargo, ambulance, CNG and LPG. It meets diverse
needs across different user segments and can double up both as a people carrier and a
goodscarrier. This faithful workhouse is easy on the pocket, yet tough on the job.
VERSA - THE JOY OF TRAVELLING TOGETHER
Equipped with twin AC, large sliding doors and flexible seating, the Versa encourages
families and friends to enjoy long drives and gateways together. In spite of being so
spacious, its design allows for easy maneuverability in the city.
MARUTI 800 - CHANGE YOUR LIFE

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It has gone beyond being just a car; it has actually changed the lifestyles of countless
people, by bringing the joy of motoring to millions across the length and the breadthof
the country. Standing testimony to this claim is the fact that more than 2 millions
Maruti 800s have been sold till date. Today, India best selling continues to be the final
word on value and economy at the entry-level segment.
WAGON R-INSPIRIED ENGINEERING
The Wagon R’S original tall body design, spaciousness, ergonomically designed
interior and flexible seating all set it apart from other cars. It complements the buyers
unique personality enables him to live a multi-dimensional life by the sheer
excellence of its engineering and its versatility.
ZEN –SURRENDER TO THE NEW ZEN
If you are looking for a car with drop – dad looks and unmatched performances, then
you need look beyond the Zen. With its new contemporary and aggressive look, the
Zen preserves its core values of driver appeal, unmatched reliability and economy.
600000 satisfied customers in India and around the world bear testimony to this fact.
ESTEEM – PERFORMANCE, QUALITY AND FUEL

EFFICIENCY
Undoubtedly one of India’s favorite entry – level “C” class vehicles, the esteem is the
perfect combination of power, comfort and economy. It’s also the preferred choice of
rally drivers across the country for its performance and reliability. The Esteem offers
the option of an 85 bhp petrol engine for those who desire power and a 57 bhp diesel
for those who value economy. Not surprisingly, it tops its class in quality surveys.

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SWIFT- YOU ARE THE FUEL
The hot looks, sexy interiors, the automatic climate control, the air bags, the power
steering moreover, all so affordable. The wait is over. Swift has entered MUL’s
portfolio. What are you waiting for?
A-STAR-STOP @ NOTHING
Powered by state of art 998 cc engine, it’s the best fuel efficient car in its category
with, mileage coming around 20km per liter.
SX-4 – MEN ARE BACK
Revolutionary European design, world class “drive by wire” .Most spacious in its
class, Steering mounted audio controls; with maximum ground clearance, high on
safety with dual airbags.
SWIT DZIRE- THE HEART CAR
A car having everything you desire stunning looks, luxurious interiors, enough power
to capture your heart. Just slide in desire and take it for a spin. Its sure steal many of
hearts including yours.
RITZ - “LIVE THE MOMENT”
Model of 2009 known by the name Suzuki splash having attractive back with
maximum ground clearance
EECO

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For those who seek happiness on four wheels for both home and work, Maruti
presents the Maruti Suzuki Eeco – a car that not only meets your family’s dreams, but
also helps you achieve your work aspirations!
1.11 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
asignificantly upgraded version, in terms of technology, design and styling, of the
Maruti 800 launched in 1983.
GRADE CAR
A Maruti 800
A OMNI
B Zen
B Wagon R
B Alto
C Esteem
C Baleno
C Versa

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C SWIFT
Utility Vehicle Utility Vehicle
Utility Vehicle GRAND VITARA

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1.12THE PRODUCTION PROCESS AT MARUTI
STEEL COILS
BLANKING
PRESSING
WELDING
PAINTING
FROM FROM
ASSEMBLY VENDORS
VENDORS
VEHICLE FROM
INSPECTION VENDORS
TEST RUN
SUPPLY &
DISPATCH

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FINANCE DEPARTMENT
2.1 MARKET SCENERIO (2008 -09)
Maruti has a network of 681 sales outlets across 454 cities all over India. The service
network covers 1,314 towns and cities, bolstered by 2,767 authorized service outlets. The
company's change in strategy and emphasis on developing effective marketing
communications was their highlights

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2.2 SALES ANALYSIS
The company vouches for customer satisfaction. For its sincere efforts it has been
rated (by customers) first in customer satisfaction among all car makers in India for
ten years in a row in annual survey. Maruti Suzuki India Limited, a subsidiary of
Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for
over two decades.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In
all, over six million Maruti cars are on Indian roads since the first car was rolled out
on 14 December 1983. And finally in 2009-10, the nation's number one car
manufacturer joined a select club of global automobile makers, when it became the
first automobile company in India to produce one million (10 lakh) cars in a year.

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2.3 HIGHLIGHTS OF 2008-09 FINANCIAL HIGHLIGHT:
In the fiscal 2008-09 Maruti Suzuki sold a total of 792,167 vehicles. The annual sales
in 2008-09 is the highest ever by the company in its 25 year history. The previous
highest annual sales were 764,842 units in 2007-08.
During the fiscal, Maruti Suzuki Swift crossed the 3 lakh-sales mark cumulative
domestic sales since launch and became the quickest vehicle model to do so. During
the fiscal, Maruti Suzuki's Alto continued to be the preferred vehicle for the great
Indian middle class crossing the 1 million-mark in cumulative sales in domestic
market.
The company's sales included exports of 70,023 units in 2008-09, up by 32.1 per cent
over sales of 53,024 recorded in 2007-08. The 2008-09 export numbers, the highest
ever by the company, was led by A-star, the fuel efficient compact car launched in
Europe during the year as Suzuki Alto. The export tally includes around 19,000 units
of A-star exported to Europe including United Kingdom, France, Germany, Italy,
Netherlands, Denmark and Switzerland.
Fiscal 2008-09 marked Maruti Suzuki's Silver Jubilee year in India. Over these 25
years the company has sold over 7 million (70 lakh) cars in the domestic market.
Additionally, over half a million cars made by Maruti Suzuki have been exported
world-over. During the year, the company continued its focus on long term initiatives,
despite the challenging market situation. These include:
• Focus on R&D: Manpower strength to 730 engineers from 460 in end March 2008.
Company plans 1,000 engineers in R&D by 2010.
• New technology engine: Brand new facility for K-series engine launched on
schedule.

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• Launching new models: A-star launched. Introduced Maruti 800 Duo - an alternate
fuel option that runs on LPG and petrol. 13
• Annual capacity to manufacture expanded from 800,000 to one million units

(Gurgaon plus Manesar plants).
• Reached out to new segments of customers - government employees and rural

customers - through innovative programs.
• Export of A star (as Suzuki Alto) to Europe commenced as per schedule.
• Dedicated export port facilities for cars at Mundra completed, used for A-star
shipment.
• Network expansion:
o Sales : From 600 sales outlets (in 393 cities) last year to 681 outlets (in 454 cities)
o Service : From 2,628 service outlets (1220 cities) last year to 2,767 (in 1314 cities);
o True Value : From 265 outlets (in 166 cities) last year to 315 outlets (181 cities)
• Increased Pre-owned car sales from 1.01 lakh units in 2007-08 to 1.23 lakh units in
2008-09
• National Road Safety Mission launched - a nation-wide Corporate Social

Responsibility (CSR) initiative to train 500,000 people in safe driving in three years.
The network of Maruti Driving Schools further expanded and crossed 50 schools.
Accolades During the year, the company, its products and services received many
awards and accolades instituted by independent expert groups, media houses and
research agencies.

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These include:
• A star as the "Car of the year"
• A star as the "Best small car of the year"
• K10B Engine as the "Automotive technology of the year"
• Maruti Suzuki as the "Manufacturer of the year"
The company was rated No. 1 for a record 9th consecutive year in the JD Power
Customer Satisfaction Index Study.
Maruti Suzuki India Ltd has informed BSE that a meeting of the Board of Directors
of the Company will be held on April 26, 2010, inter alia, to consider and approve the
audited financial results for the year ended on March 31, 2010 and to recommend
dividend if any, on equity shares of the Company for the financial year 2009-10.

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3.1 MARKETING DEPARTMENT
Today’s Company also has a new set of capabilities. Companies can operate powerful
new information and sales channel with augmented geographical reach to inform and
promote there business and products and service, its history, its business philosophy,
its job opportunity and other information of internet to visitors. Unless the ads and
brochures of the part, the internet permit them to transmit on almost unlimited
amount of information Nat only can companies and abundant information, but they
can also conduit Marketing Research using the internet. They can arrange fore focus
groups send out questioning and gather primary date in several other ways companies
can duplicate and speed up internet communication money their employs. Marketing
is a societal process by which individual and group obtain what they need and want
through creating, toeing and dir exchanging products and services of value with other.
3.2 MARKET SHARE

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3.3 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.

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Continue to reduce costs to offer more competitive products:
Cost competitiveness has been, and continues to be, central to their strategy as the
leading manufacturer in the small car segment to expand the size of the market by
offering competitively priced, high quality products. The components of this strategy
are:
 Higher levels of localization
 Vendor participation in cost reduction
 Cost reduction on warranties
 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.

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3.4 NEW INITIATIVES IN MARUTI SUZUKI LIMITED
(one stop shop to meet all your needs)
MARUTI INSURANCE
In an effort to become a complete car company, Maruti has entered the car insurance
business as well. It offers the customer all the advantages of settling insurance claims
directly with any of the company’s authorized dealers.
This business provides complete fleet solutions to corporate and institutions. Branded
Maruti N2N, this service includes the following: customized car policies, economical
car leasing, maintenance, servicing, registration, insurance, emergency assistance,
accident management and eventual re-sale of cars.
MARUTI FINANCE
Maruti Finance offers the best finance packages to consumers across the entire Maruti
range. The service is being extended across the country in a phased manner.
MARUTI GENUINE ACCESSORIES
A single point of contact,Hassle-free transactions,Emergency Assistance ,Virtually
Cashless Repairs Post accident repairs and insurance support at any dealer workshop

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MARUTI TRUE VALUE
Maruti has taken its first steps in the pre-owned car business under the brand name of
Maruti True Value. Using their technological expertise, network support and the
experience they have gained in the last 18 years, the company ensures the customers
gets great value and completes the transaction zero hassles.
EXTENDED WARRANTY
4 years or 80,000 kms Can bought anytime during primary warranty, best at time of
purchase.
ANYTIME MARUTI
Maruti Suzuki has also set up state-of-the-art call centers (operational in Delhi,
Gurgaon, Mumbai, Chennai, Bangalore and Hyderabad) Branded Anytime Maruti,
this 24 hour help-line clarifies all doubts and queries regarding Suzuki any time of the
day or night.

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3.5 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 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

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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 centers 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.
3.6 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.
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.

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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.

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3.7 THE PLAYERS IN THE INDIAN AUTOMOBILE
INDUSTRY
HYUNDAI MOTOR INDIA LTD
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai

Motor Company, South Korea and is the second largest and the fastest growing car
manufacturer in India. HMIL presently markets 31 variants of passenger cars in six
segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C
segment, the Elantra in the D segment, the Sonata Embera in the E segment and the
Tucson and Terracan in the SUV segment.
The company recorded combined sales of 252,851 during calendar year 2005 with a
growth of 17.26% over year 2004. HMIL is India's fastest growing car company
having rolled-out over 970,000 cars in just over 80 months since its inception and is
the largest exporter of passenger cars with exports of over Rs. 1,800 crores. HMIL has
recorded a growth of 27.2% in exports over the year 2004.
HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts

some of the most advanced production, quality and testing capabilities in the country.
In continuation of its investment in providing the Indian customer global technology,
HMIL has announced plans for its second plant, which will produce 300,000 units per
annum, raising HMIL’s total production capacity to 600,000 per annum by 2007. The
plant will be built on a 2.1 million square meter site adjacent to the existing
facility .HMIL is investing to expand capacity in line with its positioning as HMC’s
global export hub for compact cars. Apart from expansion of production capacity,
HMIL plans to expand its dealer network, which will be increased from 157 to 200
this year. And with the company’s greater focus on the quality of its after-sales
service, HMIL’s service network will be expanded to over 1,000 in 2006.

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The year 2005 has been a significant year for Hyundai Motor India. It achieved a
significant milestone by rolling out the fastest “200,000th” export car. HMIL exports
to around 60 countries globally and recently made a foray into the highly competitive
UK market by exporting its first shipment of 820 cars.
Propelled by the strong performance in year 2005, Hyundai Motor India is on the
threshold of yet another grand milestone of rolling out its ‘One millionth’ car which is
expected soon.
TATA MOTORS
Tata Motors is one of the largest companies in the Tata Group with a total income of
US$ 2.35 billion. More than 3 million Tata vehicles ply on Indian roads making Tata
a dominant force in the Indian automobile industry.
Tata Motors is India's only fully integrated automobile manufacturer with a portfolio
that covers trucks, buses, utility vehicles and passenger cars. It would be no
exaggeration to say that Tata Motors provides the wheels for India's growth.
Tata Motors has the unique distinction of giving India its first and only indigenously
built passenger car - The Tata Indica and the premium feature sedan - The Tata
Indigo. The Indica, launched in 1998, reached the 2,50,000 sales mark within 52
months of launch.
Tata Motors owes its leading position in the Indian automobile industry to its strong
focus on indigenisation. This focus has driven the Company to set up world-class
manufacturing units with state-of-the-art technology. Every stage of product
evolution-design, development, manufacturing, assembly and quality control, is
carried out meticulously. Their manufacturing plants are situated at Jamshedpur in the
East, Pune in the West and Lucknow in the North.

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FORD INDIA LIMITED
The Ford Motor Company has a rich legacy of translating better motoring ideas to the
roads. It has manufactured notable brands such as the Ford, Lincoln, Mercury and the
Jaguar. It is among the top five industrial corporations in the world and is available in
more than 200 countries around the world.
Ford has entered the Indian market through a tie - up with Mahindra Motors to
manufacture the Ford Escort. A project that has been set up with a investment of
Rs.1700 crore. Ford India Limited is a subsidiary of Ford Motor Company, currently
Ford has a 78% stake, which is going up to 92% soon. The Maraimalai Nagar Plant of
Ford India Limited, located roughly 45k.m.from Chennai, provides employment to
over 20000 people.The plant has the capacity to manufacture 1,00,000 vehicles per
annum, equipped with state-of-the-art vehicle manufacturing technology from Ford.
Presently offering seven different models, Ford India Limited (FIL) is catching up fast
with the Indian consumer. This is secured through a quality check program based on
the principles of NOVA - C (New Overall Vehicle Audit - Customer) wherein daily
random checks are conducted from a customer's point of view. To be doubly sure,
routine calls are made to dealerships to check the quality of cars delivered to them.
At Mahindra's dealerships are present trained professionals who provide the best
levels of service in India. Its intensive manpower training, advanced service
equipment and dedicated consumer satisfaction are the are its plus points which is
being followed by the entire industry.
Acknowledgement has come in the form of the J D power 1997 India Initial Quality
and Customer Satisfaction Awards. These internationally acclaimed and recognized
awards voted the Ford Escort as the Best Quality car and the Mahindra Ford and its
dealerships were rated the highest in Customer Satisfaction. This is an honour as it its
only the second time in automotive history that the same brand/manufacturer has
received both the awards in the same year.

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GENERAL MOTORS INDIA
General Motors India, incorporated in 1994 as a 50-50 joint venture company with the
C.K. Birla Group of Companies, became a fully owned subsidiary of GM in 1999
when GMOC bought the remaining shares. The company was restructured in 1999
and was converted from a Public Limited company to a Private Limited company.
GM APH LLC currently holds 86 percent of voting shares, and Holden (Australia)
holds 14 percent. The SPO business was integrated with the main business in the same
company in 2000.
In India, GM strengthened its presence with new product launches Chevrolet Optra in
2003 and Chevrolet Tavera (Multi Utility Vehicle) in 2004. Similarly in 2004, GM
India is expected to register a growth of 90% over 2003. With sales volume going up,
the market share of GM India has gone to nearly 2%. The sales volume in 2003 was
15,155 units while 2004 figure is expected to be around 27,000 units. In 2004, the
company sold a total of 26,166 cars as against 15,155 cars in 2003 registering a
growth of 73% while overall passenger car growth during the year was only around
23-24%. These included 9191 Chevy Optras in Entry 'D' Luxury sedan segment, 8369
Opel Corsas and 8417 units of the new generation premium multi-utility vehicle
(MUV) Chevrolet Tavera.
The existing GM India plant was originally built by Hindustan Motors. In 1994, GM
India entered into a 50% Joint Venture partnership with Hindustan Motors and
modernized the 45,000-square-meter plant near Halol, 45 kilometers northwest of
Vadodara, in the western state of Gujarat. In February, 1999, GM bought the holdings
of Hindutan Motors and GM India became a 100% subsidiary of General Motors
Corporation of USA. The plant produces the Opel Corsa, Corsa Sail, Chevrolet Optra,
and Chevrolet Tavera. The Chevrolet Forester and Opel Vectra are sold as CBUs
(Completely Built in Units) and as imported from Japan and Germany respectively.

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TOYOTA
Toyota Motor Corporation is the third largest automaker in the world. They have 34
dealers in India and in Delhi they have 2 dealers, first one is ‘South Delhi Toyota’ and
second one is in Moti Nagar in which They work by dividing their work like in one
showroom they have separate teams for every product like relating to Corolla it
comprises of 7 or 8 executives who handle all the work weather it is of sale or any
enquiry or telemarketing call that team must have some specific target to achieve.
They reach to the customers either by distributing Leaflets, Brochures to the
customers. They collect customer database from Directory (Yellow Pages) or through
customer references even they solve customers query online and give information
through e-mails. Recently they organized one drawing competition between the kids
of their existing customers just to interact with the customer and build loyalty of their
company products. They judge their customer satisfaction by analyzing that repeat
buyers are more or not & moreover they have customer feedback form in which they
can analyze customers background and can forecast customer future demands. They
target only high profile customers.
They build customer loyalty by giving happy calls to the customer after sale of every
1,3,7 month. They provide Periodic maintenance schedule, which will ensure that
vehicle, is kept in best able-bodied at all times. The maintenance schedule may
include periodic inspection, adjustment and lubrication that will keep vehicle in the
safest and most efficient condition, they provide one booklet in which they give
simple and useful tips for maintenance of the car. They offer good schemes like
providing free Test Drive worth Rs 250 petrol at the time of sale of any car. They do
road shows to attract customers. To promote their product they organize exchange
mela, events, various cash discounts like currently they are running one discount
scheme on purchase of any of their car (Innova, Toyota) they are giving free
accessories worth Rs15000. They provide 4 free services after sale and with full clean
diesel.
All employees of Galaxy Toyota shall consider how they should act and how they
might change their ways to benefit the company. They launch one “Co Branded
Credit Card” to provide additional benefits and services to the Toyota customers. This
Credit Card will give Toyota customers a better payment flexibility and convenience,
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like Customer gets free service voucher with the card, Special Invite to co-sponsored
events, Personal accident insurance coverage: Up to 20 lakhs etc. They have one
Guest Book in which they store valuable comments of customers, which they think
are very important for them, which will help them to improve their service.
HONDA
Honda is one of the leading manufacturers of automobiles and power products and the
largest manufacture of motorcycles in the world. They have 20 dealers in 42 different
cities around India. they have 6 dealers, I have visited one of them,
They do surveys to know customers need. They target either existing or their
perspective customers by giving advertisement in the newspaper or through there
satisfied customers which give references. They don’t believe on targeting
competitor’s customers because by not doing so they have such a brand reputation
with good quality products, only through this they are able to make good sales.
They display their models in 8th Auto Expo, which held in New Delhi. They are now
focusing on their new model ‘Civic’. Honda's Civic perhaps drew the maximum
attention. The reason is simple: Civic is a new car from the house of Honda. During
my survey I get to know that Honda City Model is the second largest selling car in the
‘C’ segment. They have a good superiority with superior brand name in the country.
They prefer to have mode of communication with the customer through mail,
telephone and sometimes by letter. Customers who don’t have time even to see the
model or to call the dealer to make inquiries about their reservation they desire to
solve their query online itself.
To judge customer satisfaction they some times invite their customers to have a get
together, to have interaction with customer in a minute to know that are they satisfied
with their services and what they are expecting from them in the near future. They
make maximum of their sales from the fresh customers rather than their repeat
purchasers. To increase their sales they try to extort surreptitious information from the
customers and on their end they aim to ensure that the product quality and product
quantity should be available in required quantity in their dealership.

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They have Feedback form in which they take feedback of the customer as well as their
salesperson because through this they are able to get the information of both the
customer & their salesperson that are they giving the full information to the customer.
This Dealership even provide technical skills and techniques to their employees that
how to deal with the customer thoughtfully every after 6 months.
3.8 COMPARATIVE STUDY OF MODELS OF MARUTI

AND ITS COMPITATORS IN DIFFERENT SEGMENTS

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3.9 COMPETITIVE FORCES IN INDIAN PASSENGER
CAR MARKET
Critical Issues and Future Trends The critical issue facing the Indian passenger car
industry is the attainment of breakeven volumes. This is related to the quantum of
investments made by the players in capacity creation and the selling price of the car.
The amount of investment in capacities by passenger car manufacturers in turn epends
on the production
Threat from the new players: Increasing

Most of the major global players are present in the Indian market; few more
are expected to enter.
Financial strength assumes importance as high are
required for building capacity and maintaining adequacy of working capital.
Access to distribution network is important.
Lower tariffs in post WTO may expose Indian companies
Market strength of
Market strength of Rivalry within the consumers: Increasing
suppliers: Low industry: High
Increased awareness among
A large number of There is keen consumers has increased
automotive Competition in select expectations. Thus the ability to
components segments. Innovate is critical.
suppliers. (compact and mid size
segments). Product differentiation via new
Automotive features, improved performance
players are New multinational and after sales support is critical.
rationalizing their
vendor base to Increased competitive intensity
has limited the
Threat from substitutes: Low to

medium
With consumer preferences changing, inter product substitution is taking
place (Mini cars are being replaced)

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strategies of the car manufacturers. Setting up integrated manufacturing facilities may
require higher capital investments than establishing assembly facilities for semi
knocked down kits or complete knocked down kits. In recent years, even though the
ratio of sales to capacity (an important indicator of the ability to reach break-even
volumes) of the domestic car manufacturers have improved, it is still low for quite a
few car manufacturers in India. India is also likely to increasingly serve as the
sourcing base for global automotive companies, and automotive exports are likely to
gain increasing importance over the medium term. However, the growth rates are
likely to vary across segments. Although the Mini segment is expected to sustain
volumes, it is likely to continue losing market share; growth in the medium term is
expected to be led largely by the Compact and Mid-range segments. Additionally, in
terms of engine capacity, the Indian passenger car market is moving towards cars of
higher capacity. This apart, competition is likely to intensify in the SUV segment in
India following the launch of new models at competitive prices.
Maruti Suzuki 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
earned. Until recently, 18.28% of the company was owned by the Indian government,
and 54.2% by Suzuki of Japan. The Indian government held an initial public offering
of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its
complete share to Indian financial institutions. With this, Govt. of India no longer has
stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car
which at the time was the only modern car available in India, its' only competitors- the
Hindustan Ambassador and Premier Padmini were both around 25 years out of date at
that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are
sold in India and various several other countries, depending upon export orders.
Models similar to Marutis (but not manufactured by Maruti Udyog) are sold by
Suzuki and manufactured in Pakistan and other South Asian countries.

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The company annually exports more than 50,000 cars and has an extremely large
domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004,was
the India's largest selling compact car ever since it was launched in 1983. Morethan a
million units of this car have been sold worldwide so far. Currently, Maruti Alto tops
the sales charts and Maruti Swift is the largest selling in A2 segment.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti"
is commonly used to refer to this compact car model. Till recently the term "Maruti",
in popular Indian culture, was associated to the Maruti 800 model.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has
been the leader of the Indian car market for over two decades. Its manufacturing
facilities are located at two facilities Gurgaon and Manesar south of New Delhi.
Maruti’s Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with
a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity
of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a
combined capability to produce over 700,000 units annually.More than half the cars
sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor
Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the
public and financial institutions. It is listed on the Bombay Stock Exchange and
National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported.
Inall, over six million Maruti cars are on Indian roads since the first car was rolled out
on December 14, 1983.
Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto, Versa,Ritz,
Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara.
Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is
imported from Japan as a completely built unit (CBU), remaining all models are
manufactured in Maruti Suzuki's Gurgaon Plant.

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Suzuki Motor Corporation, the parent company, is a global leader in mini and
compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack
power and performance into a compact, lightweight engine that is clean and fuel
efficient.
Maruti is clearly an “employer of choice” for automotive engineers and young
managers from across the country. Nearly 75,000 people are employed directly by
Maruti and its partners.

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4.1 INTRODUCTION
The marketing manager had to take various decision regarding activities of marketing.
The selection of decision depends upon the information available to him. If has to
decide about many matters such as who are dealer, why they sales company’s product
and ratio of the product sales etc. are the questions that might spore within managers
for answers of such questions. A new concept establish in marketing which is called
marketing research.
Marketing Research is a continuous activity. It includes product analysis, Market

analysis, distribution analysis and competition analysis.
“Marketing Research is a systematic problem analysis model building and facts

binding for the purpose of improve decision making and control in the marketing of
goods and service” - Philip Kotler.
In our market research process we had followed different steps of marketing

research, such as:-
4.2 TITLE OF PROJECT –
‘ Competitive Analysis and Sales Trend”
Period of Project – 6 to 8 weeks
There are six steps involve in effective marketing research process:

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4.3 MARKET RESERCH PROCESS
Step 1:-
Define the problem and research objectives It is extremely important to define the
problem very clearly. The Objectives of the research have to be very clearly defined.
No amount of Vagueness is acceptable here. More specifically defined the objectives
would be to find out the kind of accounts being closed down and the objective would
be stated as “To study the reasons for closure of savings accounts in urban and metro
areas”.
Step 2:-
Develop the research plan The second stage of marketing research calls for
developing the most efficient plan For gathering the needed information. The
marketing manager needs to know the Cost of the research plan before approving it.
Designing a research plan calls for Decisions on the data sources, research
approaches, research instruments, Sampling plan, and contact methods.
Data sources: - The researcher can gather secondary data, primary data, or both.
Secondary data are data that were collected for another purpose and already exist
somewhere. Primary data are data freshly gathered for a specific research Project.
Primary data – I have used questionnaires to collect primary data by survey and
interview method.
Secondary data - I gathered data from external source like website, print media and
other source.
Research approaches: - Primary data can be collected in five main ways: through
Observation, focus groups, surveys, behavioural data, and experiments.

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RESEARCH INSTRUMENTS:-
Marketing researchers have a choice of three main research Instruments in collecting

primary data:
I have use questionnaires instrument to collect primary data.
(a) Qualitative measures: - Some marketers prefer more qualitative methods for
gauging consumer opinion because consumer actions do not always match their
answers to survey questions. Qualitative research techniques are relatively
unstructured measurement approaches that permit a range of possible responses, and
they are a creative means of ascertaining consumer perceptions that may other-Wise
be difficult to uncover.
(b) Mechanical devise: -Mechanical devices are occasionally used in marketing

research .Mechanical devices like galvanometers measure the respondent’s interest or
emotions aroused by exposure to a specific ad or picture.

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SAMPLING PLAN: -
After deciding on the research approach and instruments, the marketing researcher
must design a sampling plan. This calls for three decisions:
(a)Sampling unit: - Who is to be surveyed? The marketing researcher must define the
target population that will be sampled.
My sampling unit is 100 from Koba, Kudasan, and Raysan nearest Gandhinagar
whose used car.
(b)Sample size: - How many people should be surveyed? Large samples give more
reliable results than small samples. However, it is not necessary to sample the entire
target population or even a substantial portion to achieve reliable results.
My sample size is 100 car user.
(c)Sampling procedure: - How should the respondents be chosen? To obtain a

representative sample of the population should be drawn. Probability sampling allows
the calculation of confidence limits for sampling error. Some marketing researchers
feel that no probability samples are very useful in many circumstances, even though
they do not allow sampling error to be measured.

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CONTACT METHODS:-
Once the sampling plan has been determined, the marketing researcher must decide
how the subject should be contact:
I have taken personnel interview and telephonic contact method.
(a)Mail questionnaire: - The mail questionnaire is the best way to reach people who
would not give personal interviews or whose responses might be biased or distorted
by the interviewers. Mail questionnaires require simple and clearly worded questions.
(b)Telephone interview: - Telephone interviewing is the best method for gathering

information quickly; the interviewer is also able to clarify questions if respondents do
not understand them. The response rate is typically higher than in the case of mailed
questionnaires.
(c)Personal interview: - Personal interviewing is the most versatile method. The

interviewer can ask more questions and record additional observations about the
respondent, such as dress and body language. Personal interviewing takes two forms.
In arranged interviews, respondents are contacted for an appointment, and often a
small payment or incentive is offered. Intercept interviews involve stopping people at
a shopping mall or busy street corner and requesting an interview.
(d)Online interviews: - There is increased use of online methods. There are so many
ways to use the Net to do research. In this method, researcher can include a
questionnaire on its Web site and offer a people to answer the questionnaire.

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Step 3:-Collect the information
The data collection phase of marketing research is generally the most expensive and
the most prone to error. In this case of surveys, four major problems arise. Some
respondents will not be at home and must be contacted again or replaced. Other
respondents will refuse to cooperate. Still others will give biased or dishonest
answers. Finally, some interviewers will be biased or dishonest. Getting the right
respondents is critical. It is important to recognize that not everyone in the sample
population will be online.
Step 4:-Analyze the information
The next-to-last step in the process is to extract findings from the collected data. The
researcher tabulates the data and develops frequency distributions. Averages and
measures of dispersion are computed for the major variables. The researcher will also
apply some advanced statistical techniques and decision models in the hope of
discovering additional findings.
Step 5:-Present the findings
As the last step in marketing research, the researcher presents his or her findings to
the relevant parties. The researcher should not overwhelm management with lots of
numbers and fancy statistical techniques, but rather should present major findings that
are pertinent to the major marketing decisions facing management.

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Step 6:-make the decision
The managers who commissioned the research need to weigh the evidence. If their
confidence in the findings is low, they may decide against introducing the in-flight
internet service. If they are predisposed to launching the service, the findings support
their inclination. They may even decide to study the issues further and do more
research. The decision is theirs, but hopefully the research provided them with insight
into the problem.
Along with this there may be 3 type of research methodology these are :-
They are –
· Exploratory Research
· Descriptive Research
· Casual Research
Our research is based on the exploratory research.
Exploratory Research
“The objective of this research is to gather preliminary information that will help us to
Define the problem and to suggest any hypothesis.”
This means first we have to define the problem and research objective. then we have
to develop the research plan for collecting information. Now after collection data we
have to interpret those data for any suggestion.

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(1) Have you heard about Maruti Suzuki?
Yes No
Objective –
from this question I know about awareness of Maruti Suzuki and start interaction with
customers.
Finding:-
Answer Yes No Total

Response 100 0 100
Percentage 100% 0% 100%
INTERPRETATION: -
From the above graph I have found that 100% people are aware about the maruti
Suzuki all the respondents are well familiar with maruti Suzuki cars.
So we have found that Maruti Suzuki is very well known company in Indian car
market

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(2) Do you use four wheeler?
Yes No
Objective:-
To know respondents are using the car or not
Answer Yes No Total

Response 100 0 100
Percentage 100% 0% 100
INTERPRETATION: -
From the above graph we have found that 100% respondent of our survey is used car
of various brand and we have selected only respondent who is using car now in
present so 100% respondents are giving Ans in yes.

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(3) Which Company’s car do you use?
Objective:-
To know respondents are using which company car.
Tata Hyundai
Ford Mitsubishi
GM Maruti Suzuki
Mahindra Honda
Volkswagen
Answer Tata Hyundai Ford Mists GM Maruti Mahindra Honada Volks Total
Response 10 15 8 6 12 27 8 12 2 100
Percentage 10% 15% 8% 6% 12% 27% 8% 12% 2% 100%
INTERPRETATION: -
From the above graph we have found that majority of car user from Maruti Suzuki
is27% of total population then after we have found that Hundai is major competitor of
Maruti Suzuki its portion in total population is 15% General Motors & Honda have
cover 12% of the target population then Ford & Mahindra cover 8% of target
population and 2% respondents are using Volkswagen.

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(4) What was your purchase priority for your car?
Objective:-
To know which feature is most consider in buying a new car by the respondents.
For better driving performance
For better look
For low maintenances
For better fuel efficiency
For better after sales service
For better ground clearance

Answer Driving Look Maintenance Mileage Service Ground Clearance Total
Response 7 14 21 47 8 3 100
Percentage 7% 12% 18% 47% 8% 3% 100%
INTERPRETATION: -
Now a day people are more aware about mileage in buying a new car 47% respondent
give priority on mileage then after 21% of respondent give priority to after sale
service & maintenance,14% respondent are giving more priority to look & appearance
of the car,7% respondent give priority to consider good driving performance in buying
a new car

RAJPUR.
(5) Do you want to replace your old car in near future?
Objective:-
To know respondent are ready to replace their old car in near future
Yes No
Answer Yes No Total

Response 32 68 100
INTERPRETATION: -
From the above graph we found those 32% respondents are ready to replace their car
in near future and 68%respondent are not ready to replace their old car in near future
because they have all reedy buy a new car from last two to four years.

RAJPUR.
(6) By how long do you plant to exchange your old car?
Objective:-
To know respondents are ready to exchange their old car in how many years
0 To1 Year’s 1 To 2 Year’s
2 To 3 Year’s 3 To 4 Year’s
4 To 5 Year’s Above 5 Year’s
Year 0 to 1 1 to 2 2 to 3 3 to 4 4 to 5 5 & Above Total

Response 6 8 11 19 24 32 100
Percentage 6% 8% 11% 19% 24% 32% 100%
INTERPRETATION: -
From the above research we have found that 6% respondents are ready to plane to
exchange their within one year car 8% respondent say to exchange their car within
two years and respondent who exchange their car within 3,4 years are respectively
19%,24%,and majority of respondent are say that they are ready to exchange their
their car after five years.
(7) In which segment you prefer to purchase a new car?

RAJPUR.
Objective:-
To know the preference of respondent in buying a new car & to know which segment
is most like by respondents
Small Car Executive Car

(3to5; Lks) (5to10, Lks)
Suv Car Sedan

(10to25; Lks) (25to, 50lks)
Luxurious Car
(Above, 50lks)
Car Small Executives SUV Sedan Luxurious Total
Response 38 49 8 3 2% 100
Percentage 38% 49% 8% 3% 2% 100%
INTERPRETATION: -
From the above graph we found that major respondent give preference to a executive
car in buying their new car because they have already small car so they have planning
to buy a executive car 49% respondents planning to buy a executive car and another
major portion of respondent are planning for buying small car because of easily
driving in traffic and upgrading their old model of car and 8% respondent required
sport car and 3% are prefer sedan car for comfort and status 2% respondent required
to purchase upgrading their sedan car in to luxury car.
(8) Which Company’s new car do you prefer, which replacing your old car?

RAJPUR.
Objective:-To find out respondent interest in which brand car for replacing their old
car
Tata Hyundai
Ford Mitsubishi
Fiat Maruti Suzuki
Nissan Mahindra
Honda Volkswagen
Answer Response Percentage

Tata 8 8%
Hyundai 28 28%
Ford 5 5%
Mitsubishi 4 4%
GM 12 12%
Maruti Suzuki 23 23%
Nissan 2 2%
Mahindra 6 6%
Honda 11 11%
Volkswagen 1 1%
Total 100 100%
INTERPRETATION: -
Fromm the above data we have found that customer are like to exchange their car
with Hyundai is 28% & 23% respondent are ready to replace with Maruti Suzuki then
after respondent give priority to General Motor is 12% & respondent who exchange
their car with Honda is 11% and respondent give priority to exchange their old car
with other brand are like Tata, Mahindra, Ford, Nissan, Mitsubishi & Volkswagen are
respectively 8%, 6%, 5%, 2%, 4%, 1%,
(9) Are you ready to replace your car with Maruti Suzuki?

RAJPUR.
Objective:-
To find out respondents interest in replacing their old car with maruti Suzuki.
Yes No
Answer Yes No Total

Response 22 78 100
INTERPRETATION: -
From the above graph we have found that 22% respondents are ready to replace their
car with maruti suzuki & 78% respondent say No.
(10) Which model you like most in Maruti Suzuki?

Objective:- To find out which model is like by the respondents.
RAJPUR.
Alto A-star Wagone-R Omni
Zen Zen Estilo Swift Ritz
Sx 4 Eeco Vitra Desire
Answer Response Percentage

Alto 8 8%
A star 3 3%
Wagone R 15 15%
Omni 4 4%
Zen 3 3%
Zen Estilo 9 9%
Swift 21 21%
Ritz 3 3%
SX 4 8 8%
Eco 6 6%
Vitra 2 2%
Desire 18 18%
Total 100 100%
INTERPRETATION: -
From the above graph we have found that which model of maruti suzuki is most like
by the respondent from the research data we analysis that swift is most likable model
of the maruti suzuki 21% respondent are like the swift second reference of car in
executive car respondent also like the desire 18% respondents are like the desire
model of maruti suzuki wagon R is most like by the middle class respondent who
want a good car at low price 15% respondent are like wagon R model of maruti
Suzuki alto & sx4 is like by 8% respondents zen estilo is like by the 9% respondents
eco is like by 6% respondents omani like by 4% respondent A star, zen ritz like by 3%
same respectively 2% respondent like vitracar
(11) What is your overall opinion about Maruti?
Objective:-
RAJPUR.
To find out overall opinion toward maruti Suzuki by the respondents.
1 2 3 4 5
Very Bad Neither Bad Good Very
Bed Nor Good Good
Answer Very Bad Neither Good Very Total

Bad Nor God
Response 4 7 12 57 20 100
Percentage 4% 7% 12% 57% 20% 100%
INTERPRETATION: -
From the above graph we have found that overall respondents opinion about maruti
Suzuki is good 57% then 7% respondent say bed & 20% respondent say very good
opinion to maruti Suzuki &12% respondent say neither good nor bed nor good say
average opinion toward maruti Suzuki.
(12) Any suggestion do you want to give about Maruti Suzuki?
Objective:-
RAJPUR.
To find out any suggestion by respondent which will help to improve performance of
maruti Suzuki?
from the above question we have found many suggestion from the respondent is us
under
1. Many respondents say to improve quality of service station because of

sometime they can’t get good service from their service station
2. One respondent say in service station company employee change their car
original spar part and replace old part in his car
3. Respondent want new luxury car from maruti Suzuki.
4. Respondent suggest the company to reduce their delivery time of their car
because it’s too long than any other company in car market.
5. Some respondents have suggest that they have to purchase another company
car because of maruti Suzuki car is not available on the sport
6. Some respondent say that maruti Suzuki car are not maintain their durability
for long time
SWOT ANALYYSIS OF MARUTI SUZUKI INDIA LTD.

RAJPUR.
STRENGTHS:-
 India’s largest car manufacture across the country in automobile industries

 Largest car seller in India..
 MARUTI SUZUKI has created one image as trustable in customer.
 Company having good reputation in automobile industry.
 Company providing various segment car at lowest price then its competitor .
 Distributor network brand loyalty, Japan technology and Service distribution

 After sales service
 Cost-effective
 Low maintenance
 Indian middle-class
 Low price,
 High fuel efficiency
WEAKNESS:-
 Low Resale value

 Low engine capacity.

RAJPUR.
OPPORTUNITY
 High end car segment

 Overseas market
 Improve handling
 Add extra features to small segmentcars
 Attracting youth
 Export small cars
TREAT:-
 Fuel price
 Foreign brands
 Price high of raw material
 Small car competition
KEY COMPETITORS
 Tata Motors
 Hyundai
 Ford
 FIAT
 General Motors
 Honda

RAJPUR.
FINDING & SUGGESTION
FINDING:-
 Maruti Suzuki has given more concentration to village area also because of
now a day village area people are also capable to buying a car.
 From the research web have found that some respondents are brand loyal
of maruti Suzuki
 Respondent want luxury car from maruti Suzuki.
 Maruti Suzuki swift car is most likable car by respondent.
 Wagen R most like by middle class respondents
SUGGESTION:-
 Respondent suggest the company to reduce their delivery time of their car
because it’s too long than any other company in car market so reduced
delivery time of car when customer place order.
 Maruti Suzuki have give more concentration to village area also to

increase their sales volume.
 To improve the performance of engine.

RAJPUR.
LIMITATIONS
This report had to take several constrain and limitation. Some of them are as under.
 Convenient sampling was used as the mode of conducting the research.

 The sample size was small, so it can be said that the chosen sample is not
representing whole population.
 It may be possible that the respondents are providing wrong information.
 The sample size of customers was very small and in selected area so the response
from them does not reflect the exact view because they may be biased.
 The psychology and temperament of the respondents of the respondents play a
significant role. Some respondents are more sensitive as against who are more
tolerant. A change in the composition of the respondents can affect the answers
adversely or favorably.
 Duration of study is very short and it is not possible to understand whole market
within this short span.

RAJPUR.
CONCLUSION
After in depth survey, analysis and study a conclusion can be made that most of the
customers are enough satisfied with the company.
Maruti Suzuki can be said as the most reverential and one of the best managed
company of India. One important part of automobile companies is its distribution
network. The overall system should have perfect co-ordination and cooperation
among all its activities starting from the product in the production process till it is sold
to a customer. Maruti has proved that it has well established and robust network
system.
In order to achieve higher growth rates per capita consumption and penetration levels
have to be increased. This requires use of promotional schemes that are the most
essential in today’s market. Though this could not guarantee brand loyalty by the
consumers but at least the customers will try the products and generate sales for the
company.

RAJPUR.

A Study On Marketing Strategy of Maruti

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1.

The Indian Automobile Market is expected to grow at a CAGR of 9.5 percent

1 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

1.3 FACTS ABOUT INDIAN CAR MARKET:-

Figure:-Passenger vehicle stock per 100 people

3 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

5. Major Industry: Automotive

6. Sub Industry: Diversified Automotive Mfrs.

7. 2009 Sales: 206,638,000,000 (Year Ending Jan 2010)

9. Currency: Indian Rupees

10. Market Cap: 399,028,129,369

11. Fiscal Yr Ends: March

12. Shares Outstanding: 288,910,060

4 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

1.5 COMPANY PROFILE

Maruti suzuk i India LTD

5 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

The Evolution Maruti’s history of evolution can be examined in four phases:

6 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

7 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

1. Mr Shinzo Nakanishi, Chairman

2. Mr Jagdish Khattar, Managing Director

3. Mr Hirofumi Nagao, Joint Managing Director

4. Mr Shinichi Takeuchi, Joint Managing Director

5. Mr Kinji Saito, Director (Marketing and Sales)

6. Mr Osamu Suzuki, Director

9. Mr Kumar Mangalam Birla, Director

10. Mr Amal Ganguli, Director

11. Ms Pallavi Shroff, Director

12. Mr Manvinder Singh Banga, Director

8 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

Shareholder’s Wealth; A pride of India”

To provide maximum value for money to their customers through continuous

9 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

(2)A Buying Experience Like No Other

(3)Quality Service Across 1036 Cities

(4)One Stop Shop

10 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

(5) The Low Cost Maintenance Advantage

(6)Lowest Cost of Ownership

(7) Technological Advantage

11 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

ALTO - LET’S GOS

The alto is a great combination of economy, practicality and styling. A runaway

BALENO – SURPRISING PERFORMANCE

India’s true performance sedan is upwardly mobility, redefined. The 13 advanced

12 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

GYPSY – ADVENTURES UNLIMITED

OMNI – FITS ALL

The Omni is truly India’s Original Multipurpose Vehicle. Today it is available in

VERSA - THE JOY OF TRAVELLING TOGETHER

MARUTI 800 - CHANGE YOUR LIFE

13 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

WAGON R-INSPIRIED ENGINEERING

ZEN –SURRENDER TO THE NEW ZEN

ESTEEM – PERFORMANCE, QUALITY AND FUEL

14 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

SX-4 – MEN ARE BACK

SWIT DZIRE- THE HEART CAR

RITZ - “LIVE THE MOMENT”

15 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,

1.11 OBJECTIVE OF THE COMPANY

16 SARASWATI INSTITUTE OF ENGINEERING AND MANAGEMENT,