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INTRODUCTION

For today’s business, change is the only constant. What is

vogue yesterday is out of fashion today. What is in vogue today will not be in
fashion tomorrow. This applies equally well to the business. Firms, which do
not change their marketing activities and adjust themselves to market trend,
will go out of business in no time.

Marketing is as old as mankind. A young child trying to

persuade his mother to buy him candy, a political is trying persuading to cast
their vote in his favor, or a person is trying to persuade an employer to hire him
are all practicing business. And non-business organizations are also involved in
marketing. The products that are marketed can be goods and services. A place,
an idea, an individual or even a cause can be marketed.

DEFINITION OF MARKETING

If you asks different people what is marketing, the chances are that you
would get different definitions. Marketing is after all, such as vast field.

The American marketing association (AMA) defines marketing as “the

process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy
individual and organized goals”

A marketing transaction is one in which the buyer and the seller,

irrespective of the nature of the product, experience mutual satisfaction-the
seller on selling the product and making a profit and the buyer on purchase and
the subsequent consumption of the product.

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MARKETING MIX

The marketing mix is probably the famous marketing term. Its elements
are basic tactical components of the marketing plan. Also known as the 4ps the
marketing mix elements are price, place, product and promotion.

The concept is simple. Think about another common mix- a cake mix.
All cakes contain eggs, flour and sugar. However, you can alter the final cake
by altering the amounts of mix elements contained in it. So far as a sweet cake
add some sugar.
Some communicators increased the marketing mix to 7ps including people,
physical evidence and proc

ELEMENTS OF MARKETING MIX

PRICE
Pricing s basically setting a specific price for or service offered.

In a simplistic way Kotler and Arm strong (2004) refer to the concept of
price is as the amount of money that a consumer has to pay to obtain a product.
Selling a price is not something simple. Normally it has been taken as general
law that a low price will attract more customers. It is not a valid argument as
customers don’t respond to price alone; they respond to value as a low price
doesn’t necessarily mean expanded sale if the product is not fulfilling the
expectation of the customers.

Generally pricing strategy under marketing mix analysis is divided into

two parts price determination and price administration.

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Survey in automobile industry since the nineties has led to robust

growth of the auto component sector of the country. In tandem with the
industry trends, the Indian component sector has shown great advances in the
recent years in the terms of growth, spread, and absorption of new technologies
and flexibility. Indian auto component industry has seen major growth with the
arrival of world vehicle manufacturers from Japan, Korea, US and Europe.
Today India is emerging as one of the key auto components center in Asia and
is expected to play a significant role in the global automotive supply chain in
the near future.

The auto parts industry has emerged as one of the India’s fastest
growing manufacturing sectors and globally competitive one. The auto
components industry in India is dominated by around 500 key players, which
contribute more than 85% of India’s production. The industry has very deep
forward and backward linkages with almost every other engineering
manufacturing sector of the economy. It supports industries like automobiles,
machine tools, steel, aluminum rubber, plastics, electrical, electronics, forgings
and machining.

India has also emerged as an outsourcing hub for auto parts for
international companies such as Ford, general Motors, Daimler Chrysler, fiat,
Volkswagen and Toyota.

India enjoys cost advantage with regard to castings and forgings. The
manufacturing costs in India are 25 to 30% lower than its western counter
parts. India’s competitive advantage does not come from the costs alone, but
from its full service capability.

To encourage the smooth growth of industry, the government of India

has allowed automatic approval for foreign equity investment up to 100% of
manufacture of auto components. Further the engineering export
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promotion council under the aegis of Ministry of commerce and industry,

government of India, over the years has been engaged in the promoting exports
of engineering goods including auto parts.

Beside the automotive component manufactures’ Association of India

(ACMA) represents the Indian auto component industry. The association is
engaged in promoting trade, technology up to graduation, quality enhancement
collection and dissemination of information.

The vital status pertaining to the auto components sector during 2003-
2004 and 2004-2205 are outlined below.

PLACE:

Place is also known as channel, distribution of intermediary, it is

the mechanism through which goods and/or services are moved 0from
manufacturer/service to the user of consumer.

Place undertaking marketing mix involves all companies

activities they make the product available to the targeted customer based on
various factors such as sales, communications and contractual considerations,
various ways of making products available to the customer can be used.

Companies such as Ford, Ferrari, Toyota and Nissan use

specify dealers to make their products available where as companies such as
Nestle involve a whole chain of wholesaler retailers to reach its customers. Of a
general note, while planning channel decision including choosing single or
multiple channels of distribution channel. The types of intermediates, the
number of distributors, and which intermediary to use based on the quality and
reputation.

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PRODUCT

In simpler terms product includes all feature and combination of goods and
related services that a company offers to its customers. So the Airbus product
includes its body parts such as the engine, not bolts, seats etc along with its
after sales services and all are included in the product development strategy of
the Air bus.

PROMOTION:

Another one of the 4ps is promotion. This includes all the tools
available to the marketer of the “marketing communication”. As with Neil H.
Borden’s marketing mix, marketing communications has its own promotion
mix. Think of it like a cake mix, the basic ingredients are always same here.
How ever if you vary the amounts of one of the ingredients, the final out come
is different.

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NEED FOR THE STUDY

As markets have become competitive, markets are trying every possible

tactic to attract the attention of customers. Customers are treated with the
utmost courtesy and products are provided with excellent service. Any
company can survive through ion tough competition if it has brand loyal
customers. Today many major companies in the market try to maintain and
improve their brand equity. Without creating a proper awareness cannot build
brand image.

Strong brands help to build corporate image and also by making it easier
for the companies to launch new brands. Today brands are treated, as major
enduring assets of a company more over brand equity are major contributor to
customer equity. This all can happen only there is proper brand awareness.

The success of any organization depends on promotion. Promotion is

one of the powerful tools in the marketing mix. So promotion plays an
important role. This includes all tools all tools available to marketer of
“Marketing communication”.

These promotional activities are meant for positioning the product in the
minds of the customer as well as increase the sales along with market share.

Hence this is the study, which concentrated how the customers

perceived these promotional strategies and promotional activities on their
purchase decisions.

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SCOPE OF THE STUDY

The study provides an insight into the mindset of the people towards the
company and its brand through its valuable information regarding various
parameters that determine the level of customer perception. These valuable
insights are useful to understand customers better so as to promote in better
way.

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OBJECTIVES OF THE STUDY

 To study the awareness and importance of promotional activities in

passenger car industry.

 To analyze the dependence of advertising on media.

 To Study the profile of sales promotion techniques used. to know the

opinions of the customers on different promotional activities to make
them affective.

 To understand marketing policy in the Maruthi Suzuki India Ltd.

 To evaluate the performance of the company in the Present competitive

market in India.

 In order to evaluate the changing trend towards the motor field in India
like Bikes, cars etc.

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RESEARCH METHODOLOGY

The study is conducted in Visakhapatnam on 150 MARUTHI

SUZUKI customers. The customers are divided into 3 groups. Viz.,
Businessmen, employees, professionals and others. As we know that perception
cannot be measured and it is a psychological factor, it is best to use
convenience sampling. Each of the above said group is provided a
questionnaire and asked to rate MARUTHI SUZUKI’s promotional activities
and also asked them to provide suggestions for effective promotion of cars
through advertising. This will give us a clear picture of what customer is
expecting and what the company is offering.

In this study only the primary data, which is the first hand
information from the customers, is used for the analysis and also to provide
inferences. The questionnaire is prepared in multiple-choice formats, which are
very convenient for rating qualitative measures like perception.

Sources of the Data:

The data has been collected from both primary and secondary
sources, to get information regarding the organization and products.

Primary Data:
Primary data has been collected through questionnaires.
Primary data is the data, which is collected with direct or indirect interaction
with the customers at first time.

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Secondary Data:

Secondary data has been taken from below sources:

1. Reports

2. Advertisement in mass media

3. Customer database

4. Internet

Sample size:

The sample size of 150 is taken from Gajuwaka, R.T.C

Complex, Vuda Park and R.K. Beach. The study requires an in depth survey
and keen observation in collection of data regarding the customer perception on
promotional activities.

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LIMITATIONS

 Because of time constraint, the study is done in Two months

 The findings are regional and do not represent the state or country.

 Some of the customers had not given complete information.

 There is a possibility of biased answers from the respondents. Hence the

information might not be an accurate one.

 Some of the customers are in Revenue consumption

 Poor people under the poverty line are not considered for my study.

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INDUSTRY PROFILE

HISTORY OF INDUSTRY:

In 1769, a French engineer CAPTAIN NICHOLAS built the first load

vehicle propelled by its own power. It was a three-wheeler, four seated vehicle
fitted with steam engine. It attained a speed of about 21/2 M.P.H for 15
minutes.

The first car was built by LENIOR in 1862. His innovation was a
compact of the internal-combustion engine powered by gas. Petrol-powered
version soon followed, and the design was widely adopted.

The first mass production car, the model T Ford, was introduced in
1908, and by 15 million gad been sold. Today’s engine works on similar
principles, although card now are designed for greater efficiency, safety and
comfort.

In 1920’s the major developments were made in every carry features.

The designers tried to produce a vehicle which will function at all conduction
and which were comfortable to ride and easy to operate.

Increase life of types, independent, front wheel suspension, for wheeler

hydraulic brakes, high compression ratio, high power, use of new materials and
hundreds of other changes have been made.

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EMERGENCE OF NEW PASSANGER CAR INDUSTRY:

Today’s engines work on similar principles, although card now are

designed for greater efficiency, safety and comfort. Modern engines consume
less fuel as a result if computerized ignition systems, fuel injector and multi-
valve cylinder heads. Exhaust pollution is reduced by catalytic converters,
while body shells with controlled stiffness, toughened windscreens, and airbags
improve safety. Coil spring suspension, pneumatic seats enhance passenger
comfort.

In recent years, the passenger’s car chassis construction has been forced
to shape itself redesigned bodies. While in the field of truck design, problems
of body-chassis now get simultaneous consideration to a great extent than
before. Fluid play wheels, free-wheeling over drives, automation transmission
and many other newer features are in the today’s car.

The diesel engine was invented only a few years after the spark ignition
engine cars came into existence. Car provided the facility to the owners that are
safe, easier to drive, more reliable and comfortable.

The emergence of a new passenger car industry has been shown in

figure. There some factors such as new generation of engines, entry of foreign
players, manufacturing technologies, value added services, changing structure
of demand, regulatory framework at all.

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EMERGENCE OF A NEW PASSANGER CAR INDUSTRY:

New Generations of
engines:Multi-point Entry of
fuel injection, turbo- foreign
charging common Rail Manufactures
direct injection

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Distribution
systems: Changing
Relationship of
manufacturers with
dealers and
Manfacturing
suppliers.
techonologies:
flexible
manufacturing
Auto finance: systems.
Better /cheaper
schemes tie ups
between Components:
manufacturers Tierisation,
and financiers,Industry Tyres, Radials,
Passenger car Retreading
Emergence of a new
……..

Regulatory
framework: Value added service:
Removal of QRs, Development of
straight vibrant used car
environmental market, leasing and
standards fleet management
services, car financing
Changing structure of
demand: Change in Materials: Low
the industry weight, synthetic
segmentation, components
increased preference
for compact and mid-
size cars.

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PRESENT MARKET SCENARIO:

Looking back over the year just gone is always an absorbing

experience. 2007 was another eventful one in an industry at the forefront of
some of the mega trends of our time.

Developing countries with big populations are irresistible to many firms

looking for new customer and low-cost suppliers. China’s market kept on
growing, but attention moved increasingly to India also.

If low-cost cars are the key to these markets, Renault’s Logan has stolen
a march. But that’s far from the end of the story. Ratan tata’s imminent 1- Lakh
car could be another very important chapter and Renault itself wants to do a
smaller ‘son of Logan’.

In India the first car ran on the streets of Mumbai in 1898. Today more
than 1 million cars are being sold in India every year. Every Indian dream of
owning a car. The purchasing power of consumers has increased rationally.
The demand of passenger cars has surged as compared with the previous years.

Now India is a huge potential market for many global players. Domestic
players like Maruthi Suzuki, Tata and Mahindra and Mahindra facing a tough
competition in the market. The demand of passenger car has shown in figure.

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For the past five decades the Indian automobile manufacturer had
enjoyed a protected market and the need to upgrade the out dated technology
did not arise. The Indian customers have to satisfy with just few models such as
Ambassador Car and the Fiat.

It was the seller’s market was the Indian customers had no choice
but to accept whatever these manufacturers offered. It was a measure of
protection offer to them, not a single new model of design was introduced in
India.

CAR MARKET IN INDIAN SCENARIO

A new age has dawned for the Indian automobile industry

and everybody is riving about new cars. The days of absolute monopoly in the
Indian automobile market is over.

car don’t worry about it. The options that you made in
second hand It is a battle field here competing companies are trying to be one
up over the other with the “revolutionary’ offers it proves that today’s market is
mostly a buyer one. If u can’t buy a brand new market have been unheard of
before.

The Indian passenger car market has reached a stage, which

no body would have thought of few years back. The industry is fast adapting to
the changing times cars are looking more beautiful, learner and technologically
superior.

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It is a totally new concept that we are witnessing towards the

start of the year 2000. In the previous scenario the manufacturers boldly passed
on the costs incurred during inefficient production to the buyer by hiking the
product’s price.

But all that is past and now cars are available off the shelf and
“quality” is the buzzword. What’s more, buyers are looking for ‘quality’ at a
competitive price. To meet the customer’s demands and expectations,
companies are diligently introducing new models at reasonable costs at short
intervals.

The industry truly looks off, as in a flurry of activity; nearly all

the major players announced plans to enter the market. Mercedes tied up with
Telco, to produce the E-220 and the 250-D.

General motors’ tied up with Hindustan motors to manufacture

the Opel Astra. Ford tied up with Mahindra & Mahindra established Mahindra
Ford assembles the food Escort in Nasik. Hyundai entered India through a 100
percent owned subsidiary to manufacture, Santro followed by Mitsubishi
Lancer. Honda recently tied up with Hero motors to make the Honda city and
Telco launched its own indigenous car the Indica. Finally Toyota is all said to
enter the India market.

LIBERALISATION POLICY

In 1991, the government of India announced an economic policy package

and initiated measures, which may be said to have brought about a qualitative
change in the pattern of government business relation ship and statically alerted
the character of business of environment.

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The policy changes involve far reaching structural reforms aimed at

leading Indian trade and industry away from a regulatory and protective regime
to market oriented, competitive environment.

The entry of MNC’s a growth of foreign companies; domestic

product markets are being increasingly subjected to forces of competition. It
was in July 1991 that the liberalization of economic policy started in real terms.
India opens many gates to foreign investors who are seriously looking for
untapped markets to prop up the sagging Global passenger’s car segment.

Most of the automobiles MNC’s entered into joint ventures

with existing Indian automobile manufactures and simply used up existing
facilities to assemble their cars. So, the entry of MNC’s into Indian protected
market create a wide range of choice for the buyers with the latest models and
enhanced features for the ultimate satisfaction of the customers.

Very soon one can expect a multitude of cars specially designed

and priced for Indians to hit the market. The new competitors are offering the
product technologies that are far more advanced than the MARUTHI of 800s
vintage.

ENTRY OF CARS IN INDIA

India until 1950 has an automotive industry of its own.

Previously cars were imported from the countries like U.K, Belgium, Italy,
Germany and Canada, & U.S. The cars which British India used on its road
were Buick, Ply mouth, Pontoon ford, Dodge, Rolls Royce’s for the elite class.

Morris Minor, Limo etc, didn’t stay for much longer period as the
government had laid restrictions on the imports to conserve foreign exchange.

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In 1950, India came out with its first car from Hindustan motors, by the name
“Baby Hindustan” later “Land Master” and “Ambassador” later came out with
different models Mark I,II and IISI.

The latest “Nova” version of the present age is that of mark IV

version, another car Contessa Classic was real driving one in the company. The
other players of this car segment are standard motors originally in collaboration
with Vanguard Motors produce the Standard Vanguard Motors. Later they
came out with models of Standard 8, Standard 10, Standard 2000, Standard
payment and Standard Gazelle. They then shifted to standard herald with mark
II, IV versions and I.

Lastly we had fiat in the joint venture with Premier

Automobiles Limited came out with its first model of Fiat 1100 followed by
Fiat Elegant, Fiat Minnicent, Premier, Premier Padmini etc., the Ambassador
and the Fiat were the front with Hearld coming in the third place.

MARUTI’S ENTRY

The first car came in 1984 with the entry of Maruthi Suzuki with
the advent of Maruthi Suzuki; Indian customers got taste of modern
technology, reliability and an awareness of international quality standards.

The Indian automobile industry, which had ever faced

competition due to policy; protected and closed economy was still slumbering
and was slow to react.
A limited number of manufacturers continued to provide old and out dated
technology.

Despite the rumbling in the industry which was started by the

entry of Maruti Suziki; the existing two auto manufactures did very little
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to upgrade their old outdated technology. Hence Maruthi became the

predominant player in the Indian passenger car market.

But sadly owing to the foreign exchange constraint Maruthi

could not keep place with global technological advances. In spite joint venture
with one if the reputed manufacturers, India did not gain much by the way of
technological advancement.

Many of the auto components including the gearbox were still

imported negating much of the advantage. Other wise India would have gained
by a technology transfer.

In 1984, Maruthi Udyog Limited, over took all the dominant

players with its attractive prices and with the introduction of fresh designs by
1988, Maruthi controlled 84% car market with its new models Maruthi-800,
Omni and Zen.

ENTRY OF PREMIUM CARS

The premium car segment was chosen by new entrants as a

part of a market entrance strategy to create brand awareness. Today we have
the UN usual spectacle of how many cars too few Indians for a country, which
used to manufacture 1.81 lacks cars per annum in 1991.

India today produces over 7.8(20030) cars per annum; the

market has now changed for sellers market to buyers market. The first MNC’s
car to Indian market was DAEWOO.

It’s Ceilo, in competition with Maruthi Esteem followed by

Peugeot 3091 Manufacture by premium automobiles in collaboration with

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Peugeot of France. Premium again had a tie up with Fiat of Italy to launch Fiat
UNO in competition with ZEN. Mercedes tied up with Telco; general motors
tied up with Hindustan Motors to bring out Opel Astra; Ford with Mahindra &
Mahindra for Ford Icon. Mitsubishi with Hindustan Motors produce
“Mitsubishi Lancer” Honda’s tie up with Hero Motors for making of Honda
city.

Hyundai entered India through a 100% owned subsidy to

manufacture Hyundai Santo Followed by Telco’s own indigenous car Tata
Indica; Fianally Toyata with its version of Qualis all the set to use existing
facilities and to prop up an sagging the global passenger car market.

As mentioned earlier the premier car segment was chosen by

the new entrants are the part of market entrance to create brand awareness. All
most all the entrants now have clear plans of introducing new products in
themed size segments as step forwards capturing volumes to make the business
viable.

Customers tend to hold back their purchases decisions in the

anticipation of new car launches, price cuts, the glamour of millennium car and
the other factors. Almost all the new entrants created their own brand image for
an average Indian car buyer; the entry of MNC’s is definitely a big boon. The
customer is getting the best technology on par with other developed countries.

ADVANTAGE INDIA

India holds huge potential in the automobile sector including the

automobile component sector owing to its technological, cost and manpower
advantage. Further India has a well-developed, globally competitive Auto
Ancillary Industry and established automobile testing and R&D centers.

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The country enjoys natural advantage and is among the lowest

cost producer of steel in the world. The Indian automobile industry today
boasts of being second largest two wheelers manufacturers in the world,
world’s largest motorcycle manufacturer is in India, second largest
manufacturer is in the world, fifth largest commercial vehicle manufacturer in
the world and fourth largest car market in Asia.

The automotive sector is one of the core industries of the Indian

economy, whose prospect is reflect of economic resilience of the country. With
4% contribution to the GDP and nearly 5% of the total industrial out put, the
automotive sector has become a significant contributor to the exchanger.
Continuous economic liberalization over the years by the government of India
has resulted in making India as one of the prime business destination for many
global automotive players. The automobile industry witnessed a growth of
19.35% in April July 2006 when compared to April July 2005.
The Indian automobile Industry has a mix of large domestic private players
such as Tata, Mahindra, Ashok Leyland, Bajaj, Hero Honda and major
international players including GM, Frod, Toyata, Suzki, Honda and Volvo.

INVESTMENT OPPURTINES

 Establishing research and developing centers

 Establishing engineering centers
 Passenger car segment
 Heavy truck segment

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PRODUCTION:

One of the largest industries in India, automotive industry has been witnessing
in 1991, permitting automatic approval and successive liberalization of the
sector over the years have led it overall development of the automobile
industry. The freeing of the industry from the restrictive environment, on one
had, helped it to restructure, absorb new technologies, align itself global
developments and realize its potential and on the other hand, this has
insignificantly increased industries contribution to over all industrial growth in
the country. The automobile industry witnessed a growth of 19.35% percent in
April-July 2006.

 India is the second largest two wheeler manufactures in the world.

 Second largest tractor manufacturer in the world.
 5th largest commercial manufacturer in the world.
 3rd largest car market in Asia.

Automobile industry contributes 17% of total indirect taxes collected by the

exchequer & is a driver of the product and process technologies, and has
become a excellent manufacturing base for global players because of its

 High machine tool capabilities

 Extremely capable component industry
 Most of the raw material locally produced
 Low cost manufacturing base
 High skilled man power

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AUTO COMPONENTS INDUSTRY

Indicators 2003-04 2004-05

Out put Rs.24, 500 Rs.30, 640
Crores Crores
Exports Rs.3800 Rs.4620
Crores Crores
Employment 5,00,000 5,00,000
Persons Persons

EXPORTS:

Auto component exports shop up phenomenally by 40% in 2004-2005 to a

level of U$$ 1.4 billion. A high growth of 30% is expected to continue in 2005-
06 also. Indian auto components are being exports are being exported
throughout the world. During the year 2004-05, total export was of the order of
Rs. 6237 cores

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COMPANY PROFILE

History

The story began in early 1980’s when the scooters had a waiting
period and the Indian car customer had limited options. Maruthi Suzuki
Limited (MSIL) was established in Feb 1981 through an Act of parliament, as a
government company with Suzuki Motor Corporation of Japan holding 26% of
stake. It was entrusted the task of achieving the following:
 Modernization of Indian auto mobile industry
 Production of vehicles in large volumes
 Production of fuel efficient vehicles

Suzuki was an obvious choice because of the unparallel expertise

in small cars. The joint venture agreement was signed between Government of
India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in
Oct 1982.
The company went into production in record time of 13 months and the first car
was rolled out from Maruthi, Gurgoan in December 1983.

The government of India identified the need for small car of

Indian masses a car that would be economical, environment friendly yet
contemporary in technology. In short “a people’s car”. A global search for an
efficient technology partner resulted in Suzuki then the leader in small cars in
Japan being chosen for the now historical Maruti-Suzuki relationship.

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CAR MARKET SCENARIO

When Maruti began operations in 1983, there were only two

other car companies in India and the total size of Indian passenger car market
was a measly 40,000 units per year. From the start, Maruthi caught the
imagination of the Indian car customers and launched four new models,
including a hatch back, a mini purpose multiple van, an entry sedan and a SUV,
over the next decade. Each of these models was an instant draw with the Indian
customers. Suzuki Motor Corporation increased its stake on two occasions
(26>>40>>50 controlling stake and brought it to 50% in the mind 1990’s and
to 54% with privatization in 2002)

VISION

“The leader in Indian automobile industry, creating customer delight and

shareholders wealth; a pride of India”

OUR CORE VALUES:

 Customer obsession
 Fast and flexible
 Innovation and creativity
 Networking and partner ship
 Openness and learning

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MARUTHI IN INDIA

Maruthi was born as Government Company, with Suzuki as a

minor partner, to make a people’s car for the middle class India. Over the
years, its product range has widened, ownership has changed hands and
customer had evolved.
What remains unchanged, then and now, is Maruti’s mission to motorize India.

Maruti’s parent company, Suzuki Motor Corporation, has been

global leader in mini performance into a component, light weight engine that is
clean and fuel efficient, the same characteristics make Maruti’s cars extremely
relevant to Indian customers and Indian conditions. Product quality, safely and
consciousness are embedded into our manufacturing process, which we have
inherited from Maruti’s parent company.

Right from inception, Maruti brought to India very simple yet

powerful Japanese philosophy “smaller, fewer, loighter, shorter and neater”

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SUZUKI MOTOR CORPORATION AND INDIA

Suzuki attaches great value and significance to Maruthi R&D. In

addition to the planned capital investments of Rs 9000 cores (U$$ 2 billion
approximately), in setting up new manufacturing and engine facilities, bringing
newer models, fresh investments of U$ 1.8 billion have been allocated towards
developing a dedicated Research & Development Center here in India,
supporting Suzuki’s global ambitions.

MARUTHI SUZUKI TODAY

More then half of numbers of cars sold in India wear a Maruthi

Suzuki badge. We are subsidiary of Suzuki Motor Corporation, Japan. As
India’s largest passenger car company, we account for over 50% of the
domestic car market. We have a sales network of 562 outlets in 372 towns and
cities, and provide maintenance support to customers at 2538 workshops in
over 1200 towns and cities (as on 31st 2007)

Since inception, we have produced and sold over 6.75 million

vehicles, including almost 500,000 units in Europe and other export markets.
As India’s largest passenger car company, we account for over 50% of
domestic car market.

We have been rated first in the customer satisfaction for 8 years in a row
in JD power’s Surveys, and are Indian’s most respected automobile company.

And also is an independent survey conducted by Forbes.com

where they rated top 200 reputed companies on various parameters such as
reputation with in the customer employee fraternity, we stood 91st.

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In the automobile section we finished 7 th. The company set up

network component vendors, dealers and service stations and facilitated around
60 technical collaborations for Indian vendors from Japanese, European and
even American partners to upgrade technology and quality levels. Along with
this came the task for instituting quality processes and the systems across the
network. Today the suppliers of maruti are huge corporations them selves and
are today in global business area.

BUILDING THROUGH PARTNERSHIP

Our business relies substantially on our partners. We depend on

a national network of the suppliers, sales outlets and workshops, managed by
independent entrepreneurs, to manufacture car components and look after
customers.

We are the “employer of choice” for automotive engineers and

young managers from across the country. Nearly 75,000 people are employed
directly by Maruti and our partners. With in the company, we strive always to
keep the culture open and participative.

MARUTI NETWORK

We have a national wide footprint in over 1172 cities in India

and export to over 100 countries across the globe.

As the Indian economy shifts to higher gear, we believe that

maximum reach is very important factor. In the last year, we have also reached

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to new customer segments through the NRI-Dil Se program. Another segment

we targeted was the rural segment through the Panchayat scheme.

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TARGET COST APPROACH:

Through continuous study and research we have adopted a new approach

towards product planning and product pricing target cost approach.

We now are being designing our products by keeping an aggressive

market price in the mind. We work in backwards to arrive at target costs for
different components, equipment and for manufacturing operations.

Growing design capability in the area of cars, components and dies,

both with in the company and among suppliers, have helped us foster “target
cost approach”. That possibly explains why we are able to bring out fresh
models with high levels of localization and aggressive pricing.

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WINNING BECAME A HABIT

The JD power CSI is 2000 was the first endorsement from

the customer that we were on the track. Before that, we were told that no
market leader in any country had ever been rated first in customer satisfaction.
Market leaders have many more customers to satisfy, and are unable to give
them attention like niche players can.

In India, where Maruthi had more than half of the market, the
challenge was even greater. After we own it once; the next task was to repeat it
in 2001. No, manufacturer we were told again had ever won it twice. We broke
the record too. Then the hat trick, four-in-a-row, five-in-a row and now an
eight. In all these years the car market has nearly doubled, customers
expectation have multiplied, number of models has gone up, technology has
evolved, and our dealer network has grown in size and reach. The only
common factor throughout has been Matuti’s rating in JD power CSI.

“Maruthi Suzuki overall strength lies in building an organization that is sharply

focused on the voice if the customer,” said Mohit Arora. India director at JD
power Asia Pacific. “Maruti’s consistent performance in the performance in the
study over the past several years has resulted in a steady increase in the
percentage of its customers who say they intend to remain loyal to the brand”

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MARUTHI SUZIKI AND SERVICES:

Service Quality standards have been one of the most important

Kaizens followed at the workshop. Maruti Suzuki has been way a head of the
industry average and has been ranked NO:1 in the JD Power Customer
satisfaction index seven times in a row.

SALES AND SERVICES

The Maruti dealerships are the most visible parts of customer

focus. Right from the way a prospective customer is welcomed to the
dealership to the entire buying experience and the service experience,
customers feel very ‘invited’.

It’s what makes customers loyal to Maruti cars too. Almost

50% of our new car customers are existing customers. Almost 90% people,
who trade in their used cars through “Maruti true value;’ finally buy a new
Maruti.

For us customer focus is very important, amply evident from

the fact that ‘customer obsession’ is our first core value. We have been chosen
by the customers as the best car manufacturer in terms of customer satisfaction
seven years in row in the prestigious JD power survey.

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SPECIAL SERVICE INITIATIVES FOR THE WOMEN

CUSTOMERS

Maruti offers a special service initiative to women, by picking up the car for
service and dropping it off once completed. This is especially helpful for
working women who need more time to come in as a great service.

MARUTHI DRIVING SCHOOL

Maruti has also involved its dealer across the country in the big
way in promoting road safety and safe driving. In collaboration with them, the
company has set up 28 Maruti driving school in 25 different locations across
the country. These schools are equipped with the world class, state of the art
driving stimulators; over 21000 people have been trained so far.

THE CURRICULUM

The driving training modules are as per international standards

and include both theory and practical. Difficult driving situations such as fog,
uphill terrain, rain and night driving is stimulated on the simulators to give the
learners a firsthand account of demanding weather conditions. They are then
taken for actual driving on the road.

The rich mix of theory and practical gives learners a critical in

insight into the required driving skills. In addition, the learners are also given
technical training like changing flat tire and handling minor snags and repairs
in the vehicle. Special session in the organized for learners on the traffic rules,
regulations and signage’s.

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Most importantly, the training lays great emphasis on developing

right attitude for safe driving and road safety among learners. For the
convenience of women learners, there are lady instructors at MDS.

OTHER SERVICES

 Maruthi genuine parts

 Maruthi finance
 Maruthi insurance
 Maruthi true value
 Maruthi auto card
 Maruthi Dil se

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CUSTOMER SATISFACTION AT MARUTHI SUZUKI

Our customers have rated us first in JD power’s satisfaction

survey for eight consecutive years. When we achieved it first time in 2000
people were skeptical.

They could not fathom how a market leader like us could

manage to keep happy such a vast and diverse group of customers. The answer
perhaps lies in our approach towards customer satisfaction.

Being first in customer satisfaction rating was not just simply

about winning an award. Rather it became our weapon to fight and win the
competitive market place.

How we evolved our approach?

There was a time (in late 1990’s) when we faced some real
competition with the entry of global players into India. We went back to the
basics: what is the Indian customer desire? Maruthi has the right products for
India, one with the reliable quality, low cost, top performance and so on. What
else could we offer our customers?

It is then that we decided focus on customer satisfaction. Caring

for the customer, thinking from his and her point of view, building
transparency in our interactions, orienting ourselves to face the customer rather
than other way round.

“If we could do all that, our satisfied customers would recommend our
products to their friends and relatives and themselves buy their next car from
us”.

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There was nothing new about this strategy; if all the companies
swear by customer satisfaction.

The challenge for us was to go beyond words and make it all

convert intention into action, translate an intangible mission to tangible
benefits. Evolve from random and one-off customer benefit gestures to a
consistent and systematic effort to satisfy the customer. We have to strive to
internalize customer satisfaction and make it a way of life for ourselves.

ABOUT JD POWER ASIA PACIFIC

JD power Asia Pacific, established in 1990, conducts customer satisfaction

research and provides consulting services in the automotive, information
technology and finance industries. Information regarding J.D Power Asia
Pacific and its products can be accessed through the Internet at
www.jdpower.co.jp

MARUTI’S ACCOLADES

Customers of Maruthi have rated as first in “customer satisfaction

index” among all car makers in India for eight years in a row, in the annual JD
Power Asia Pacific survey on customer satisfaction index other categories
wagon R and Alto is their respective.

 Maruthi posted a hat-trick three consecutive win in 2004-2006

 In APEAL (Automotive Performance Execution Layout Award) Wagon
R and Alto scored the highest for the second consecutive year for the
year 2006.

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 In IQS (Initial quality study) - Zen (the old model) scored highest
followed by Wagon Categories, for the year 2006.
SNAP SHOT OF MARUTHI SUZUKI

Incorporated : February 1981

Joint venture agreement : October 1982
Equity structure : 54.2% Suzuki, Japan,
balances with other financial
institution and public Sales (no of
cars) financial
Year 2006-2007 : 674,924 including 39,295
Exports Sales (net of excise)
Financial year 2006-07 : 15.22 INR Billon, $ 3.6
Billion, 425 Billion yen
Profit after tax financial year 2006-07 : Rs. 15 billion, $ 3.6 billion, 41
Billion yen
Employee strength : 4993 of financial year 2006-07

Facilities:

Gurgoan : 3 vehicles assembly plants

Manesar : 1 vehicle assembly part
Head office in New Delhi, India
Regional offices: 16

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DIESEL POWER TRAIN PLANT:

Suzuki power train India limited (SPIL). Joint venture between

Suzuki Motor Corporation 70% Equity the rest is with Maruti Suzuki India
Limited. Global hub for Diesel engines and transmissions for Suzuki for
worldwide.
JOINT VENTURE:
15 joint venture companies, including Suzuki power train India limited for
component supply.

SUBSIDIARY COMPANIES

True value: for the sale and purchase of pre owned cars Maruti
Insurance: for insurance for Maruthi vehicles (four companies) Maruthi
finance: for financing Maruti vehicles

PROPOSED INVESTMENTS TILL 2010

Rs. 9000 crores/$ 22.5 billion/2589 billion yen of investments planned till 2010
for the capacity Enhancements and facility up gradation.

NETWORK RESEARCH FINANCIAL YEAR 2006-07

 Sales 398 outlet covering 228 cities
 Service 2421 work shops covering 1193 cities
 Pre owned car sales 242 dealers covering 148 cities.

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PRODUCT PORT FOLIO

12 models with around 100 variants including

 Maruthi 800
 Omni
 Alto
 Wagon r
 Swift
 Zen
 Gypsy
 Esteem
 Versa
 SX4
 Grand vitara
 Swift desire

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CARS FOR NEW INDIA

We have tried to keep pace with the changing lifestyle of our customers by
bringing models high on ‘style and design quotient’. Some of our recent
offerings like Swift, Zen and SX4 have become popular choices because
customers find them relevant.
While designing contemporary cars and lacing them with latest safety
features we have remained vigilant and cautious pricing them aggressively
for our customers by adopting a target cost approach.
New car have introduced by Maruthi Suzuki is the new Swift Desire. A
compact sedan car and there’s a concept car named as A-star which is under
production plans.
BOARD OF DIRECTORS
           
Mr. Shinzo Mr. Manvinder Singh
  Mr. R. C. Bhargava    
Nakanishi Banga

       

Chairman Managing Director Director

and CEO
             
  Mr. Amal Ganguli   Mr. D. S. Brar   Mr. Keiichi Asai

       

Director Director Director

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THEORITICAL FRAME WORK

Price determination is referred as an activities employed to

arrive at the price for the product including consideration of relative prices of
the product with in the same line, and differences in price of similar products of
differing grades and qualities.

PRICE ADMINISTRATION

Price administration is referred to the activities in the fitting

basic prices to particular sales situation such as geographic locale, functions
performed by examples of his special discounted pieces at for instance, GAP,
NEXT etc are Coca cola and Pepsi where different prides are set in the
different geographical areas considering the differences in the patterns of usage
as well as varying advertisement costs.

PLACE:

Place is also known as channel, distribution of intermediary, it is

the mechanism through which goods and/or services are moved 0from
manufacturer/service to the user of consumer.

Place undertaking marketing mix involves all companies

activities they make the product available to the targeted customer based on
various factors such as sales, communications and contractual considerations,
various ways of making products available to the customer can be used.

Companies such as Ford, Ferrari, Toyota and Nissan use

specify dealers to make their products available where as companies such as
Nestle involve a whole chain of wholesaler retailers to reach its customers. Of a

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general note, while planning channel decision including choosing single or

multiple channels of distribution channel. The types of intermediates, the
number of distributors, and which intermediary to use based on the quality and
reputation.

PRODUCT

In simpler terms product includes all feature and combination of goods and
related services that a company offers to its customers. So the Airbus product
includes its body parts such as the engine, not bolts, seats etc along with its
after sales services and all are included in the product development strategy of
the Air bus.

PRODUCT MIX

It is the set all products that an organization offers to its customers.

For instance HLL offers detergents, shampoos, hair care products, cosmetics,
beverages, health care products ice creams etc a product mix consist of all the
product mix lines and categories. It has certain characteristics features like
product width, length and depth and consistency.

 Width: this is the total number of product lines a company carries such
as discussed above.
 Length: the length of the product mix is the total number of items in that
mix. The total number of product in all lines.
 Consistency: consistency refers to the closeness exhibited by the
products lines in production requirements, distribution end usage etc for
instance most of the HLL product lines are consistent as they are
consumer goods distributes by the same channels of distribution and are
produced in similar manufacturing facilities.

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PROMOTION:

Another one of the 4ps is promotion. This includes all the tools
available to the marketer of the “marketing communication”. As with Neil H.
Borden’s marketing mix, marketing communications has its own promotion
mix. Think of it like a cake mix, the basic ingredients are always same here.
How ever if you vary the amounts of one of the ingredients, the final out come
is different.

Promotional strategies include all means through which a

company communicates the benefits and values if its products and persuades
targeted customers to buy them. The best way to understand promotion is
through the concept on the marketing communication process. Promotion is the
company strategy to cater for marketing communication process that requires
interaction between two or more people or groups, encompassing senders,
messages, media and receivers

Take the example of Nokia, the sender of communication, in

this case in Nokia, the ad agency, or both; the media used in process can be
salesmen, newspapers, magazines, radio, dill boards, T.V and the like.

PHYSICAL EVIDENCE

It is the material part of a service. Strictly speaking there are no physical

attributed to a service, so consumer tends to rely on the material cues. There are
many examples of physical evidence including some of the following:

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PEOPLE

It is most important element of any service or experience? Services tend

to be produces and consumed at the same moment, and aspects of the customer
experience are altered to meet the individual needs of the person consuming.

PROCESS

It is another element of the extended marketing mix, of 7ps. There

are a number of perceptions of the concept of process within the business and
marketing literature. Some see processes as a means to achieve an out come,
for example-to achieve a 30% market share a company implements a marketing
planning process.

The success of any organization depends on the promotion. Promotion is

one of the powerful tools in the marketing mix. So promotion plays a important
role.

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ROLE OF PROMOTION IN MARKETING MIX

As with Neil H. Borden’s marketing mix, marketing

communication has its own promotion mix. Promotion strategies include all
means through which a company communicates the benefits and values if its
products and persuades targeted customers to buy them. Hence the success of
organization is also depends upon on promotion.

Marketing communication or promotion helps marketers

communicate information to potential customers about the products existence,
value and the benefits that can be accrued from it. It comprises on of the four
elements of the marketing mix. Designing an effective marketing
communication mix helps marketers to attract, persuade, urge and remind
customers of the company’s brands.

Comparing with communication options available to the

markers in the past there are now a large number and greater diversity of
communication options available. Thus the design implementation and the
evaluation of the communication programs in the current business scenario
pose a significant challenge to marketers. The marketers have to integrate these
various communication options to derive the maximum benefit of the company.
Designing and integration of these communication options can be compared to
how a composer combines various musical instruments in an orchestra.

Even though the use of single instrument may suffice, the use of
combination of instruments improves the quality of the rendition. Thus, by
various communication options a marketer develops an integrated marketing
communication program.

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Communication channels are classified into personal and non-personal

channels.

PERSONAL CHANNELS:

Personal communication channels include face-to-face

interaction, telephone conversation, communication through milers, e-mails,
etc. The message can be personalized to the audience tastes and performances.

NON PERSONAL CHANNELS

Non-personal communication channels are electronic media,
print media and other out door advertising. The electronic media consists of
television, the Internet, mobile phones and radio. The outdoors media consist of
hoardings, sign boards, banners etc. The feedback and response rates are
difficult to estimate in non-personal channels of communication.

Promotional mix of an organization consists of the following tools:

 Advertising
 Sales promotion
 Direct marketing
 Public relations
 Personal selling

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PROMOTIONAL STRATEGIES

The promotion tools that are widely used by organizations

for the marketing activities include advertising, sales promotions, publicity,
public relations, personal selling and direct marketing. The tools deliver the
intended message at different levels and through different formats. The
marketing department of and organization, therefore, has to choose the most
effective promotional tool.

ADVERTISING:

Advertising is the main form of non-personal presentation of

goods or services by an identified sponsor. It can be done using any form of
media like television, radio, print media, etc. A firm has flexibility of choosing
the target market while advertising. It can advertise its product/service in the
local newspaper to reach a small geographical area. If it is looking for natural
reach, the firm can advertise its products/services on television through
national channel like Doordarshan on any other television channel depending
on the target audience. Advertising allows firms to communicate with the
intended audience in the most interesting format using actions and dramas. It
helps in generating faster response in the form of increased sales. However, the
interactivity with the audience is negligible and their feedback is indirect.

The major advantage of advertising is its ability to reach a

large audience at a very low cost. It helps marketers reach maximum number of
potential customers at a very affordable cost. Moreover, the different channels
available if the marketers chose to advertise on television helps them
significantly in reaching the most appropriate target audience. Advertising is
primarily used to reach customers and it’s suitable for marketing low cost, low
involvement products. In case of higher priced products or in case of products

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that require considerable amount of explanation to be given by marketer,

advertising plays a supportive role to personal selling.

As markets have become competitive, marketers are trying

every possible tactic to attract the attention of customers. Customers are
tending with the utmost courtesy and the products are provided with the
excellent service. However marketers need to concentrate on ‘Retro
marketing’. Retro marketing is a form of marketing where customers are
delicately teased by the deliberate holding back of supplies or by teaser
advertisements where the customers are kept in suspense about the products
identity.

The logic behind the concept o retro marketing is the

customers get bored with the conventional style of marketing, where the
marketers pamper the customers and use the same appeals to push their
products. So marketers should keep the customers guessing and interested by
launching advertising campaigns that puzzle, tease and arouse the interest of
customers.

Some important benefits of advertising are:

 Advertisements create awareness, interest and desire for the

products and services in customers to buy them.
 Advertising is cost efficient and advertisements can reach a vast
number of audiences simultaneously.
 The message can be repeated several times, there by creating an
impact on the minds of the customers. For example “it is the
coolest one” reminds for Kelvinator refrigerators.
 Advertising is the product in the certain way can add to its value.
For instance, when the Volkswagen introduced Beetle (it’s a small
car) in US, the US automobile market was filled with
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bigger cars. To differentiate its product, Volkswagen developed an

ad campaign highlighting the compactness of the car, which was
immensely liked by the people and helped the company in creating
a customer base fast.
 It helps in boosting the sales company
 Once a product/service is purchased, it (advertising) reassures the
customer about the purchase decision, thus helping in reducing the
post purchase dissonance, if any
 Advertising helps in changing the customer’s perception of a
product.
 It supports the activities of the distribution network of the firm
by creating demand and encouraging purchase through pull
strategy.
 It helps in making the job of the sales force easier, by creating
awareness among potential customers.

SALES PROMOTION:

Sales promotion is the form of attracting customers by

offering them various benefits in the form of incentives or by adding value to
the products. Sales promotions are generally aimed at resellers and the final
consumers. The various kinds of sales promotional tools include coupons,
discounts, rebates, samples etc. Most often organizations spend more money on
sales promotion than on advertising.

Although sales promotion is often considered short-term tool

to achieve immediate benefits in the form of increased sales, sales promotional
activities like event sponsorship, trade shows and such are used for attracting
long term benefits in the market.

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IMPORTANCE OF SALES PROMOTION:

Sales promotion plays a vital role when:

1) Sellers introduce new brands in the market. This calls for the companies to
indulge in sales promotional activities by providing extra incentives to the
customer to make the customer aware of their offerings and to increase the
sales.

2) When the economy is going through a recessionary phase, customers

become more prices sensitive. Sales of different companies come down
drastically as markets underperformed. Markets can tackle this problem with
the help of promotional tools like offering gift or discount coupons, gifts, and
contests, sweep stakes etc to the customers.

3) The seller aims at triggering the impulsive buying behavior of the

customer’s for example super markets and big retail stores display items like
candy, cigarettes, magazines, etc. At their sales counter or check out standards
to promote impulsive buying.

A company seeks to obtain greater cooperation from its retailers.

For example companies offer to train the staff of its dealers/distributors with
regard to their products to get a better shelf positioning and extra shelf space. It
helps in earning the good will of the dealers and the distributors.

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PUBLICITY

Publicity is non-paid form of communicating information

about the company or the product or both as a news article in newspapers or
television of radio. Studies have shown that the people attach a lot of
importance to news articles and read them with greater attention as compared
to advertisements in newspapers. Also people give much importance to product
or service details given in news report than in an advertisement, because they
perceive news report to be more credible. Efforts like generating repeated
exposures will also help marketers effectively communicate the desired
message.

There fore the managing the market communication mix with

appropriate and timely publicity through newspaper articles, coupled with
attractive public relation campaigns helps marketers to a great extent.

PUBLIC RELATIONS

Public relations are essentially a function of an organization,

where it tends to develop and manage its good will in the market. The primary
aim is to create a suitable environment for the firm. Public relations help
organizations create a positive opinion about the firm in the market through
appropriate communications.

An organization can develop its public relations with several

number groups such as suppliers, customers, and employees, the government,
shareholders, distributors, members of the public etc. In the current market
scenario, customers look forward to having business dealings with companies
that are good corporate citizens.

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Therefore companies should not neglect public relations because though it does
not induce any immediate customer action, it produces positive results for an
organization in the long run. Exhibit 19.3 discusses the importance of public
relation for an organization.

PERSONAL SELLING

Personal selling is the form of selling is the form of selling a

product or service directly to the customer by explaining or demonstrating the
features of the product to him/her. Personal selling is highly specific, with
regard to the target audience. The costs involved are high, as the sales person
has to personally meet every potential customer.

Personal selling has a high impact on the consumers and the

feedback is also almost immediate. This is the form of marketing is the most
effective way of communicating company’s marketing message, because it
involves direct interaction between the marketer and the customer. It helps the
marketer receive immediate feedback form the customer. Being a high cost
marketing tool, personal selling usually implemented for high cost products
and services that need detailed demonstrations of product usage and have
limited target markets.

DIRECT MARKETING

In the direct marketing organizations communicate directly

with the customers through mail or telemarketing or marketing through
Internet. This is a popular form of communication for the certain types of
services like real estate.

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Any way the global giant in direct marketing with the product
portfolio of 450 products and operations in over 80 countries. Amway’s direct
marketing efforts are discussed in exhibit 19.4. In the direct marketing, there is
a non face-to-face interaction with the customers to make immediate action. So
the success or failure of the marketing effort can be immediately known. Direct
marketing tools are used to communicate with both consumer markets and the
industrial markets through telemarketing, mailers catalogs, etc.

PROMOTIONAL STRATEGIES AND PASSENGER CAR

INDUSTRY

Coming to the passenger car industry, the promotional

strategies such as advertising and sales promotion and public relations play a
vital role than the others. Hence we observe the strategies in general.

ADVERTISING AND PASSENGER CAR INDUSTRY

The major advantage of advertising is its ability to reach a large

audience at a very low cost. It helps marketers to reach the maximum number
of potential customers at a very affordable cost. More over if the marketers
choose to advertise through T.V it helps them significantly in reaching the most
appropriate target audience.

Advertising allows the marketer to communicate with the intended

audience in the most interesting format using visuals and music. It helps in
generating faster response in the form of increased sales. However the
interactivity with the audience in negligible and the other feedback is indirect.

The main theme of advertising is “to position the product in the

minds of customers”

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Hence the marketer chooses the media to communicate to his

customers, which is suitable and economical. We can observe the contribution
of automobile sector in the print media as well as in television commercials
(TV’s).

As compared with 2005, 10% has raised in ad volumes of

automobile sector in print.In that, 78% has volume by automobile ads
contributed by car/jeep and motorbikes. We can differentiate the print media
such as magazines and newspapers. Maximum 97% of ads contributed in
general newspapers. The ratio of newspapers and magazines is 98:2

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10% rise in ad volume automobile sector in print in 2006 over the

previous year

112

110

108

106

104
Column2
102

100

98

96

94
2005 2006

Ad volumes of automobile sector in print media

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Contribution of auto mobiles in print in the year 2006

5%

35% motor bikes

commercial vehicles
tractors
cars\jeeps
43% others

11%
6%

Fig no:12 Contributions of automobiles in print

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Share of Magazine Genres in the year 2006

auto mobile film magazine business general interest others

21%
5%

39%

25%
10%

Fig no:13 Share of magazine Genres

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SALES PROMOTION AND PASSENGER CAR

INDUSTRY

In the specific sense “sales promotion includes those sales

activities that supplement both personal selling and the advertising and
coordinate them and make them effective, such as displays, shows,
demonstrations and other non recurrent selling efforts not in ordinary
routine”

Sales promotion is an activity taken up to boost the sales of a

product. It includes a host of activities like advertising campaigns, public
relation activities, distribution of free samples, offering free gifts, conducting
trade-fairs, exhibition, competitions, offering temporary reduction in price,
launching door to door selling conducting demonstrations at schools,
telemarketing etc, it is used to:

 Encourage the customer to try new products

 Attract new customers
 Counter the promotional activities
 Make a customer brand loyal

Sales promotion is the short-term incentives to encourage the

purchase or sale of a product and service

Sales promotion includes several communications activities that

attempt to provide added value or stimulate immediate sales. These efforts can
efforts can attempt to stimulate product interest, trail or purchase.

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Sales promotion can be directed to customers and other business

associates like distributors and retailers. Consumer sales promotion methods
include:
 Price promotions
 Coupons
 Free gifts and free samples
 Money refund and rebates
 Point of purchase displays
 Installment offers
 Consumer contest
 Consumer sweep takes and
 Trade shows

From the above, promotion activities like promotions, coupons, free gifts and
free samples installment offers, consumer contests and the trade shows are
common promotion activities, which are followed in passenger car industry.

Hence in sales promotional activates dealers of franchises plays a crucial

role in executing them.

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SALES PROMOTION ACTIVITIES THROUGH NEW SHOW

ROOM:
Test drive: test drive is the promotional activity which is offered to the
customer to go for a ride, to know the comfort and convenience of seating and
other features like A.C sound system etc. by test drive the customer feels the
experience of the car. Main criterion is when a customer goes for a test drive
the percentage of purchasing will increase if he likes it.

DISCOUNTS:
We observe different price discounts in the sector in festive season and
other vacations such as ‘world cup’ etc. there are other promotions such as
giving discounts on insurance (sometimes) and road taxes and all.

EXCHANGE OFFERS:
This is meant for existing customers. The price is coded depending on
its depreciation and the market value. In Maruthi Suzuki, the old cars are priced
by “Maruthi true value” services. The old cars are resold to the required
customers because all customers never go for new cars.

TRADE SHOWS:
Trade shows are another sales promotion activity which is widely use by
the marketers. They display cars in selected location throughout the day or two
days in comfortable timings of customers to visit.

FREE SERVICE CAMPS

Those come under public relations. The service camps meant for to
increase customer satisfaction that leads to brand loyalty.

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Apart from all the above, those promotions also include brand
promotions and others. Brand promotion has the highest share of 54% in sales
promotions of the automobile advertisers in 2006.

Types of promotion through advertising

60

50

40
Series 1
30

20

10

0
brand promotion sales promotion others

Fig no:14 Different types of promotions and their share

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Different sales promotions

Price promotion Exchange promotion Add promotion
Multiple promotion Others

6% 27%

34%

14%
19%

Fig no:15 Type of sales promotion and its share

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ANALYSIS AND INTERPRETATION

Table: 1
Occupation of the Business man Salaried Professionals Others
Respondents Employees
No. of Respondents 90 35 15 10
Share in Percentage 60 23.33 10 6.66

Share in percentage
70

60

50

40 Share in percentage

30

20

10

0
Business man Salaried Employees Professionals Others

Interpretation:

From the above table: 1,we got to know that in the sample of 150
respondents, 90 members i.e 60% if the Respondents are business man, 35
members i.e. 23.33% of respondents are salaried employees, 15 members i.e.
10% of respondents are professionals and 10 members i.e. 6.66% of
respondents belong to other category.

Hence from the above information, it is clear that potential buyers are
businessman because of their much income than other categories and also they
travel on their business purposes apart from domestic purposes.

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Table: 2

Income category of the

<2.5 2.5 – 3.5 3.5 – 4.5 >4.5
Respondents
No. of. respondents 30 75 37 8
Share of respondents in% 20 50 24.67 5.33

Income of the customers per annum

60%

50%

40%
Share of respondents in %
30%

20%

10%

0%
<2.5 2.5-3.5 3.5-4.5 >4.5

Interpretation:

From table: 2, it is visible that 75members i.e. 50% of the

respondents fall in the second income category (2.5-3.5 L).
30 members i.e 20% of Respondents come under first category
(<2.5L); 37 members i.e 24.66% of Respondents come under third category
(3.5-4.5L). 8 respondents i.e.5.33 come under fourth category (>4.5L).
Hence, 75% (approximately) of the customers lie in second and
third category i.e., between 2.5-3.5L. This is the potential customer category
for passenger cars.

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(3) Which car did you posses?

Tables: 3
Type of the car Maruti 800 Alto Swift Sx4 Others
No.of.respondents 30 63 48 3 6
Share of respondents
20 42 32 2 4
in percentage

Percentage
45

40

35

30

25 Percentage

20

15

10

0
M-800 Alto Swift Sx4 Others

Interpretation:
Table: 3 contain list of cars possessed by customers and their shares in
percentage.

63 respondents i.e. 42% of the Members posses Alto, 30 respondents i.e.

30% of the Members posses Maruti-800, 48 respondents i.e. 32% of the
Members possess swift, 3 respondents i.e. 42% of the Members possess Sx4
and 6 respondents 42% of the Members posses other cars of Maruti Suzuki.

Hence, from the above information we can interpret that Alto has more
sales over all cars and also Swift has reasonable share as well. But in luxury
version, Maruti, “small car market leader” in india, has to increase its presence
widely.

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(4) Which features attracted you to purchase this model?

Table: 4

Brand Additional Service Comfort Technology

Features Mileage
name features used
No. Of respondents 78 13 30 9 15 5
Share of Resopondents
52 9 20 6 10 3
in percentage

60

50

40

30

20

10

0
Brand name Additional features Service Comfort Mileage Techonology used

Interpretation:
The above information concludes that brand name is the key preference
of the customers of the Maruti Suzuki.

Respondents rated brand name as their first preference. Brand name

consists of 52%. The most efficient service element has 20% of share. The
other elements such as additional features, comfort, mileage and techonology
used consists shares of 9%, 6%, 10%, 3% respectively.

Brand image of Maruti Suzuki is wider. Service is another key element

on Maruti leader in India. Mileage is not the key factor to concentrare but it
should look after the factors such as additional features possessed by a car and
comfort of the travels.

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(5) Which sales promotion motivated you to buy this car?

Table: 5
Type of sales Gifts and
Price promotions Finance Exchange
promotion other offers
No. of respondents 84 33 24 9
Share of
56 22 16 6
respondents

60

50

40

30

20

10

0
Price promotions finance Exchange Gifts and other factors

Interpretation:
84 responded that they were motivated by price promotions. 33
responded they were motivated for finance. Exchange promotion has motivated
24 customers and other promotions motivated 9 customers.

Price promotion is the main sales promotion tool, which consists of

56%, and finance is another promotion, which has 22% of share in motivating
customers. An exchange offer has 16% of share. This sales promotion targeted
the existing consumers base. Gifts and other promotions have a share of 6%.

Because of massive increase in passenger car market, Maruti Suzuki can

concentrate more on exchange promotion also.

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(6) How do you get the information?

Table: 6
Campaign
Source of information News papers T.V. Friends Others
s
No. of respondents 68 37 30 12 3
Share of respondents in
45 25 20 8 2
percentage

50

45

40

35

30

25 share of respondents

20

15

10

0
News papers T.V. Campaigns Friends Others

Interpretation:

Table: 7 give the information about the shares of different sources of

information such as newspapers, T.V. commercials, campaigns, friends, other
reliable sources.

News papers has 45% of share, T.V. commercials contribute 25%,

campaigns 20%, friends contribute 8% and other sources such as reviews on
cars, T.V. programs such as cars& bikes show in NDTV etc.

Newspaper is the one of the mass media, provides information mostly

out sales promotions, which not provided much through T.V. commercials.

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(7) which factors in the advertisement attracted you to buy the car?

Table: 7

Provided information Features Offers Stylish design

No. of respondents 37 8 105
Share of respondents in 25 5 70
percentage

80

70

60

50

40 Share of respondents

30

20

10

0
Features Stylish design Offerd

Interpretation:
From the above table: 8, we can interpret that the most of the T.Vs are
communicating about stylish design. 105 respondents have supported this
statement.

After that, T.Vs gives preference to features of cars. 37 respondents,

consisting a share of 25% supported this. Sometimes, these commercials
provide information regarding special promotional offers but, it is too less as
compared with above factors (offers have only 5% share).

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8. Did you receive the vehicle on promised time and date? ( )

A) yes B) no

No. of
S. No. options %
Respondents

1. yes 150 100

2. no 0 0

150 100

120

100

80

60 No
yes

40

20

0
%

Interpretion:

From the above table: 150 respondents have supported this

statement. After that, 150 respondents fell that they happy with varun motors.
No respondents feel that varun motors not delivered the vehicle on promised
time and date.

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9. Did you receive prompt response at workshop reception? ( )

A) yes B) no

S. No. options No. of %

Respondents
1. yes 150 100
2. no 0 0
150 100

120

100

80

60 No
yes

40

20

0
%

Interpretion:

From the above table: 150 respondents have supported this

statement. After that, 150 respondents, fell that they happy with varun
motors. No respondents feel that varun motors not giving prompt response
at workshop reception.

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10. How many minutes you had to wait to attend technical

person ?( )

A) hours B) seconds

S. Features No. of %
No. Respondents
1. hours 33 22

2. seconds 117 78

150 100

Chart Title
90
80
70
60
50
40
30
20
10
0
%

Hours Seconds

Interpretion:

From the above table: 150 respondents have supported this

statement. After that, 117 respondents, felt that they happy with varun motors.
As they are waited for seconds 33 respondents, felt that they are not happy with
varun motors. As they are waited for hours.

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11) Did you feel that Varun Motors provides good costumers relationship?

1) Yes 2) no
Features No of respondents Share of respondents in
%
Yes 120 80
NO 30 20
150 100

Chart Title
90
80
70
60
50
40
30
20
10
0
%

Hours Seconds

Interpretation:
From the above table: we can interpret that the most of the T.Vs are
communicating about stylish design. 150 respondents have supported this
statement.

After that, T.Vs gives preference to features of cars. 120 respondents,

consisting a share of 80% supported this. Sometimes, these commercials
provide information regarding special promotional offers but, it is too less as
compared with above factors (offers have only 20% share).

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12) If Varun motors provide any other benefit like lone are you ready to
buy a big car?

1) Yes 2) no

Features No of respondents Share of respondents in

%
Yes 114 76
NO 36 24

Chart Title
120

100

80

60

40

20

0
%

Hours Seconds

From the above table: , 150 respondents have supported this statement.
After that, . 114 respondents, consisting a share of 76% supported that they
will buy big car..

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13) Do you think that new promotional strategies used Varunmotors to

increase the sale?

1) Yes 2) no

Features No of respondents Share of respondents in

%
Yes 84 56
NO 66 44

Chart Title
60

50

40

30

20

10

0
%

Hours Seconds

From the above table: 150 respondents have supported this statement. After
that, . 84 respondents, consisting a share of 56% supported that the varun
motors to increase the sale.

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14) Do you have any idea regarding promotional strategies used by

Varun?

1) Yes 2) no

Provided information No. of respondents Share of respondents in percentage

Yes 132 88
No 18 12

Chart Title
100
90
80
70
60
50
40
30
20
10
0
%

Hours Seconds

Interpretion:

From the above table: 150 respondents have supported this statement.
After that, 132 respondents, consisting a share of 88% supported that the
promotional strategies used by varun motors.

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15) At present financial crises effects to every industry so do you think that
it also effect Varun motors

1) Yes 2) no

Provided information No. of respondents Share of respondents in percentage

Yes 114 76
No 36 24

Chart Title
80

70

60

50

40

30

20

10

0
%

Hours Seconds

Interpretion:

From the above table: 150 respondents have supported this statement.
After that, . 114 respondents, consisting that it will not affect to varun motors.

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16) Are you satisfy with the promotional strategies provided by Varun
Motors?

1) Yes 2) no

Provided information No. of respondents Share of respondents in percentage

yes 141 94
no 09 6

Chart Title
160

140

120

100

80

60

40

20

0
%

Hours Seconds

Interpretation:

From the above table:, 100 respondents have supported this

statement. After that, 114 respondents, consisting that they satisfy with varun
motors.

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17)do you think that by using pramotional strategies dy Varun motors

increase the sales?

1) Yes 2) no

Provided information No. of respondents Share of respondents in percentage

yes 114 76
no 36 24

Chart Title
80

70

60

50

40

30

20

10

0
%

Hours Seconds

Interpretion:

From the above table: 150 respondents have supported this statement.
After that, 114 respondents, consisting that they increase the sales by providing
promotional strategies.

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18) Are you satisfy with the costumer Servicing process by varun motor?

1) Yes 2) no

Provided information No. of respondents Share of respondents in percentage

yes 123 82
no 27 18

Chart Title
90
80
70
60
50
40
30
20
10
0
%

Hours Seconds

Interpretion:

From the above table:, 150 respondents have supported this

statement. After that, 123 respondents, consisting that they satisfy with
customer receiving process.

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19)how you feel while buying car in Varun motor?

1)good 2)happy 3)unhappy 4)satisfactory

Type of sales promotion No. of respondents Share of respondents

good 84 56
happy 24 16
satisfactory 9 6
un happy 33 22

60

50

40

30 shareof rspondents

20

10

0
good unhappy happy satisfactory

Interpretion:

From the above table: , 150 respondents have supported this statement.
After that, 74 respondents, fell that they happy with varun motors.

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20)is varun motor provides you sufficient information about the models?

1) Yes 2) no

Provided information No. of respondents Share of respondents in percentage

yes 99 66
no 51 34

Chart Title
60

50

40

30

20

10

0
%

Hours Seconds

Interpretion:

From the above table: 150 respondents have supported this

statement. After that, 99 respondents, fell that they happy with varun
motors.51 respondents feel that varun motors not provides sufficient
information.s

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FINDINGS

The overall study explained how promotional activities motivate the

customers and position their perceptions about different promotional activities
of the market. The findings are mentioned below:

 Third preference was given to ‘Mileage’ and it contributes 10% of share

in preferences.
 Customers have given second preference to ‘Service’ after brand name.
 52% of the customers preferred maruthi Suzuki because of its ‘Brand
Name’.
 ‘Price promotion’ leads the front role in sales promotion and
‘Financing’ comes as a second motivating factor to purchase.
 ‘News papers’ provides 45% of information to the customers regarding
promotional offers.
 Through the TV’s information about ‘Stylish Design’ is the main
attribute, which is provided to the customers.

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SUGGESTIONS

Maruti Suzuki India Ltd has a tough competition from the foreign
players and domestic as well. Because, other players now mostly concentrated
in small car segment which is widely acquired by Maruthi has been from the
past. So it has to deliver effective messages and promotional offers to attain the
leadership in the market.
Basing on the study, some of suggestions are made which helps to make
effective promotions. The suggestions are:

 Create awareness campaigns of new and existing cars by conducting

trade shows.

 The existing consumer base has increased drastically. Hence, we can

also concentrate on exchange promotion.

 Ad campaigns should give same priority to communicate about the

features as they provide information about car’s design.

 Additional features and comfort has gained importance as mileage

attribute. Hence, it is important to differentiate Maruti Suzuki cars from
its rivals.

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CONCLUSION

A new age has dawned for the Indian automobile industry and everyday
is surviving for new cars. The days of absolute monopoly in the Indian market
wiped out. It is a battlefield. Here, most of the leading passenger car companies
are trying to be at the top with revolutionary offers. It proves that today’s
market is mostly a buyer’s market.

Being a market leader, maruti Suzuki India ltd has the major market
share of 42% in India. But this local player is facing a tough competition from
the global players like Honda, Hyundai, Toyota, Ford, Chevrolet, Skoda and
other local players such as Tata and Mahindra & Mahindra as well.

Hence one of the elements of 4p’s, ‘Promotion’ has gained its own
importance as competitive advantage strategy in the present market.
Promotional strategies such an advertising, sales promotion and public relations
are the primary and key ones. Marketors are investing a huge amount in ads
and promotions.

The marketor can sell his products without advertising. But, he may loss
the advantage of increasing sales. Advertising is non-personal form of
communication. But when it comes to the sales promotional activities,
franchises have vital role to play. Because service is delivered through these
franchises. Sales promotion is meant to increase the sales in short term. These
sales promotions changes according to the seasons.

Public relations are another major strategy in promotions. Public

relations are essentially a function of an organization, where it tends to develop
and to manage a good will in the market. The primary aim is to create a
suitable environment for the firm. Public relations help organization to create a

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positive opinion about the form in the market through appropriate

communications.

An organization can develop its public relations with several member

groups such as suppliers, customers, employees, the government, share holders,
distributors, members of the public etc,. In the current market scenario,
customers took forward have business dealings with companies that are good
corporate citizens.

Promotion is the vital factor, which is used for communication between

company and customer. It is the buyers market where “ Customer is the king “.
Hence right promotion leads to increase in sales and also helps in delivering
right message to customers to make them ‘Brand Loyal’.

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QUESTIONNAIRE

Customer feedback on promotional strategies of

Maruti Suzuki India Ltd
(VARUN AUTO MOBILES (P) LTD)

(1) NAME: ______________________________________

(2) Address: _____________________________________

_____________________________________

(3)Contact No: ___________________________________

(4) Occupation:
a) Business man b) Employee
c) Professional d) Others

(5) Your Income per Annum:

a) < 2.5 Lakh b) 2.5 to 3.5 Lakh
c) 3.5 to 4.5 Lakh d) > 4.5 Lakh

(3) Which car does you possess?

(4) Which features attracted you to purchase this model?

a) Brand name b) Mileage c) Comfort
d) Technology e) Service

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(5) Which sales promotion motivated you to buy this car?

a) Exchange offers b) Discounts c) Financing

d) Gift vouchers e) others

(6) How did you get the information about your car?
a) News papers b) T.V c) Campaigns
d) Friends e) Others

(7) Have you saw the advertising of your car?

a) Yes b) No

(8) A) if yes, What information mainly you got from particular ad?
a) Features b) Stylish design c) Offers
d) Others

(9) Which features do you think that can be highlighted of?

10)do you thinking that by using promotional strategies by Varun motors

increase the scales?

1) Yes 2) no

11) are you satisfy with the costumer receiving process by varun motor ?
1) Yes 2) no

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12)how you feel while buying car in Varun motor?

1)good 2)happy 3)unhappy 4)satisfactory

13)is varun motor provides you efficient information about the models?
1) Yes 2) no

14) Your car model promotion?

___________________________________________

____________________________________________

15) Did you feel that Varun Motors provides good costumers relationship?
1) Yes 2)no

16) If Varun motors provide any other benefit like lone are you ready to buy a
big car?
1) Yes 2) no

17) Do you think that new promotional strategies used Varunmotors to increase
the sale?

1) Yes 2) no

18) Do you have any idea regarding promotional strategies used by Varun?
1) Yes 2) no

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19) At present financial crises effects to every industry so do you think that it
also effect Varun motors
1) Yes 2) no

20) Are you show satisfy with the promotional strategies provided by Varun
Motors?

1) Yes 2) no

21) Your Overall suggestions:

_____________________________________________

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BIBILIOGRAPHY

AUTHOR TITLE EDITION PUBLISHER YEAR

MARKETING
P.K. Agarwal 3rd Pragathi 2003
MANAGEMENT

MARKETING
D.D.Sharma 2nd Sultan Chand 2004
REASEARCH

Philip Kotler & MARKETING Prentice-Hall,

12th 2005
Armstrong MANAGEMENT India Pvt Ltd

Tata Mcgraw-
David Jobber FUNDAMENTALS
2nd hill publishin 2006
& Jonyfah OF MARKETING
comp. Ltd

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MAGAZINES:

 Over drive - December 2007

 4P’s - May 2008
 Auto Car - December 2007

WEBSITES:

 WWW. Maruti Suzuki.com

 WWW. Carwale.com

 WWW. Plunkettresearch.com

 WWW. Just- Auto.com

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