CHAPTER-1

INDIAN AUTOMOBILE INDUSTRY

The Indian automobile industry has four major segments - commercial vehicles
(CVs), passenger vehicles, three wheelers, and two wheelers. The market share for
each of these segments of the Indian automobile industry, for the year 2003-04, is
shown in Figure I.

According to the Society of Indian Automobile Manufacturers (SIAM), the Indian

passenger vehicle market has three categories -- passenger cars, multi-purpose
vehicles (MPVs), and utility vehicles (UVs).

The passenger car market is further divided into various segments based on the
length of the car (Refer to Exhibit II for a detailed description of the lengthwise
classification of passenger cars.

The Indian automobile industry was a highly protected slow-growth industry with
very few players till the opening up of the Indian economy in 1991and the capability
to supply in large volumes attracted global auto majors to set up their operations in
India after the opening up of the sector.For example, Fiat and DaimlerChrysler
started outsourcing their component requirements to India. 100 percent Indian
subsidiaries of global players, like Delphi Automotive Systems and Visteon,
exported components to other parts of the world.

Macroeconomic factors like government regulations, low interest rates, and

availability of retail finance played an important role in the rapid development of the
automobile industry in India during the late nineties (Refer to Exhibit III for an
understanding of the impact of the Union Budget on the Indian automobile industry
over the years)...
1.1 TIMELINE OF INDIAN AUTOMOBILE INDUSTRY:

 1897 First Person to own a car in India - Mr Foster of M/s Crompton Greaves
Company, Mumbai

 1901 First Indian to own a car in India - Jamsetji Tata

 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata

 1905 Fiat Motors

 1911 First Taxi in India

 1924 Formation of traffic police

 1928 Chevrolet Motors

 1942 Hindustan Motors

 1944 Premier Auto Limited

 1945 Tata Motors

 1947 Mahindra Motors

 1948 Ashok Motors

 1948 Standard Motors

 1974 Sipani Motors

 1981 Maruti Suzuki

 1994 Rover Motors

 1994 Mercedes Benz

 1994 Opel

 1995 Ford Motors

 1995 Honda SIEL

 1995 Reva Electric Car Company

 1995 Daewoo Motors

 1996 Hyundai Motor Company

 1997 Toyota Kirloskar Motors

 1997 Fiat Motors (Re-Entry)

 1998 San Motors

 1998 Mitsubishi Motors

 2001 Škoda Auto

 2003 Chevrolet

 2005 BMW

 2007 Audi

 2009 Land rover and jaguar

1.2 MILESTONES OF MARUTI SUZUKI LTD.

1980s

This was the time when scooter had a waiting period, industrial production was
licensed. The Indian manufacturing industry sees a new dawn.

1981

Maruti Udyog Ltd was incorporated under the provisions of the Indian companies
Act, 1956. The government of India selected Suzuki Motor Corporation as the joint
venture partner.

1982

The JV was signed between government of India and Suzuki Corporation. The
company born out of this JV was Maruti Udyog Ltd.

1983

The people’s car is born.

Maruti 800, a 796 cc hatchback, India’s first affordable car launched. The company
went into production in a record time of 13 months.

The first car for many Indians

Mr. Harpal Singh, the owner of the first Maruti still drives the car after 25 years.

1984

Business gets Omni present

During a time when business was booming and people needed better ways to
transport, Maruti Omni provided a great advantage- it was very spacious, yet stylish
enough to carry people too.
1985

Providing the platform

India was evolving and so did the people. Maruti gypsy was India’s first off-road
vehicle and is still the best to do the ‘Raid de Himalaya’. Maruti gypsy (970cc, 4wd
off-road vehicle) launched.

1987

Maruti goes overseas

In its bid to go International way back in 1987, Maruti sent its first lot of 500 cars to
Hungary.

1987-88

Engineering Export Promotion Council (EEPC) Award awarded for the second year.

1989

Engineering Export Promotion Council (EEPC) Award for the third year.

Early 1990s

The era of liberalization. A time Indian industry had been waiting for long.
Manufacturing becomes very crucial to the economy. It was a time when industry
was growing and India was looking towards the world with renewed vigour,
renewed hope.

1990

India’s first sedan- ESTEEM

Received Engineering Export Promotion Council (EEPC) Award for the fourth year.

1991
Engineering Export Promotional Council (EEPC) Award for the fifth year.

1991-92

Performance Acknowledged by Economic times & Howard business school

association of India corporate performance award for best in public sector.

1992

Maruti becomes more important to Suzuki in the agenda for growth. Suzuki motor
corporation (SMC) increases its stake in Maruti to 50 percent.

1992-93

Engineering Export Promotion Council (EEPC) Award for the sixth year.

1993

Maruti Zen –the world car.

One of the India’s most favourite cars, the Maruti Zen captured the imagination of
people when it was launched. The 993cc hatchback outlived its lifecycle by many
years and still continues to be a favourite car of many.

1993-94

NPC Award.

Runners Up in best production performance in automobile industry

Engineering Export Promotion Council (EEPC) Award for the seventh year

1994

Esteem 1.3L (1298cc, 3box car) launched

1994-95
National award for Energy Conservation

Engineering Export Promotion Council (EEPC) Award for the eighth year

Late 1990s

The late 90s was a buzz of activity for Maruti. While Maruti was a market leader at
the beginning of the 90s, competition coming in with new products gave a new twist
to the situation. The company had to respond to the situation with going back to its
fundamentals. The customer was the key and the company looked at implementing
various initiatives to delight the customer. The results became evident in 2000 and
further. Maruti is, until today, the undisputed winner of the JD power award for
customer satisfaction.

1995

Indian national suggestion scheme association (INSSAN) Award for the second year.

ISO-9002 Certificate

EXIM star trophy for outstanding export performance by JLN Port-trust

1996

1.5 million Vehicles rolled out.

Certificate of significant achievement under the CII Business excellence award was
given.

1996-97

National Export Award, for excellence in exports in the Engineering Goods category
(motor vehicles, auto spare parts & components)

1997
Maruti service master (MSM) launched as model workshop in India; achieved
highest customer satisfaction index (CSI)

Hero Honda Rolling Trophy

1st in CII (North) QC circle competition

MUL has been granted STAR TRADING HOUSE STATUS w.e.f. 01/04/96 to
31/03/99 by ministry of commerce based on export performance of MUL in last 3
years. Our objective is to become SUPER STAR TRADING HOUSE by 1999
which could be achieved by increasing exports@30% p.a.

1998

Confederation of Indian industry (CII) Exim Award for Business Excellence.

1999

MSIL was certified for establishing and maintain EMS as per ISO 14001:1996
standards in 1999.

2000

Company reported a loss of Rs.269 crores.

JD power customer satisfaction award received.

IDTR ( Institute of Driving Training and Research ) launched jointly with the Delhi
government to promote safe driving habits.

First Car Company in India to launch a call center.

2001

Turn around with profits Rs. 104.5 crore

Four new businesses- true value, insurance, finance.

Maruti versa launched

Maruti true value launched.

No. 1 in customer satisfaction in J.D. Power Survey award for the second year.

2002

Divestment- Suzuki motor corporation (SMC) acquires majority stake in MUL

(increases to 54.2%)

Maruti finance & insurance launched.

No. 1 in customer satisfaction in J.D. power survey award for the third year.

MSIL was re-certified for establishing and maintaining EMS as per ISO 14001:1996
standards in 2002.

2003

Maruti gets listed on BSE and NSE

IPO ( issue oversubscribed 11.2 times )

New zen launched – first facelift by Maruti engineers.

No. 1 in customer satisfaction in J.D. power survey award for the fourth year.

2004

A new esteem launched- second successful facelift by Maruti engineers.

No.1 in sales satisfaction index in J.D. power survey award for the fifth year.

2005

 Swift launched-first world strategic model from Suzuki motor corporation.

 J.D. power survey award for the sixth year.
  MSIL has changed its EMS from ISO 14001:1996 version to ISO 14001:2004
version w.e.f. 1st July 2005.
 MSIL was re-certified in 2005 as per ISO 14001:2004 standards.

2007

 Swift diesel launched

 New car plant and the diesel engine facility commences operations during
2006-07 at manesar, Haryana
 Sx4 luxury sedan launched with the tag line “Men are back”
 Maruti launches Grand Vitara.
 The company name changed from Maruti Udyog ltd to Maruti Suzuki India
ltd
 Maruti joins hands with the Gujarat government to set up Driving and
Technical training institute for Tribal youth
 Change in leadership- Mr. S. Nakanishi appointed as new MD, & Mr. R. C.
Bhargava appointed as chairman by board of Directors.
 J.D. power survey award for the eighth year.
 India customer satisfaction index award.
 India automotive performance, execution and layout study (APEAL) award.
 India initial quality study.

2008

 World Premiere of Concept A-star at 9th Auto Expo, New Delhi.

 Maruti won “Car Manufacture of the Year”
 Mr. Jagdish Khattar, former Managing Director, received the ‘Next
Generation Automotive Man of the year’ award.
 The ICICI-NDTV profit Viewers Choice Awards was bagged by Maruti
Suzuki SX4 in the mid size car segment.
 Maruti Suzuki India limited, bags award for “Most customer responsive
company” in the automobile sector. The awards are instituted by Avaya global
 connect and The Economic Times in association with Ernest & Young and AC
Nielsen. Professor M. Jankiraman of Indian institute of management,
Lucknow, has designed the methodology.
 TV-18 Autocar Mid Size car ward – SX 4
 CNBC TV-18 Autocar Value for money – SX 4
 CNBC TV -18 Autocar award for viewers choice – SX 4
 CNBC TV -18 Autocar manufacturer award – Maruti Suzuki.
 CNBC TV -18 Autocar man of the year – Jagdish Khattar.
 Alto crosses one million mark.
 MoU signed with Adani’s for setting up mega car terminal at mundra
 Swift crosses the 250,000 sales units.
 Swift DZire launched.
 Launch of M800 LPG.
 Maruti Suzuki features among the world’s 200 most reputed companies in the
annual worlds’s most reputed company survey -2008. In the passenger car
sector, Maruti Suzuki finishes fourth globally.
 Inauguration of the KB Engine Facility at Gurgaon.
 Maruti wins JD power customer satisfaction index nine times in a row.
 MSIL launches fifth world strategic model A- star.
 Auto monitor awards for 2007
 Maruti Suzuki was awarded “Manufacturer of the year”( Passenger Car
category)
 Young achievers, a new category this year – Rajesh Singh Gogu and Saurabh
Singh were awarded for designing Concept A-star.

2009

 MSIL adopts voluntary Fuel Disclosure.

 First shipment of A-star leaves Mundra port- January 10
 A-star bags, zigwheels “car of the year award”
 A-star rated best small car of the year- Autocar – UTVi
 Automotive technology of the year: newly launched K 10 b engine
Manufacturer of the year.
 Special commendation to the Indian auto industry : a tribute to MSIL’s silver
jubilee
 Signs MoU with Haryana Govt. To set up manage and run two IDTR’s in
Haryana
 Swift smiles: 300,000 milestone.
 Fastest car model to reach the 3-lakh milestone.
 Launched in May 2005, the sporty car achieved this fest in only three years
and eight months.
 Online club called ‘Swift Life’ for all swift-owners.
 50th Maruti Driving School unveils.
 A-star or Suzuki alto debuts at Geneva Motor show sales begin at EU.
 Capacity to manufacture expanded from 800,000 to a million units annually.
 The annual sales in 2008-09 is the highest ever by the company in its 25 year
history
 2008-09 marked Maruti Suzuki’s silver jubilee year in India.
 Maruti Suzuki unveils new Ritz K12M engine at Gurgaon plant.
 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.
 CHAPTER-2

INTRODUCTION OF MARUTI SUZUKI COMPANY

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a
subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader
of the Indian car market for over two and a half decades. The company has two
manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India.
Both the facilities have a combined capability to produce over a 1.5 million
(1,500,000) vehicles annually. The company plans to expand its manufacturing
capacity to 1.75 million by 2013.
The Company offers 15 brands and over 150 variants ranging from people's car
Maruti 800 to the latest Life Utility Vehicle, Ertiga. The portfolio includes Maruti
800, Alto, Alto K10, A-star, Estilo, WagonR, Ritz, Swift, Swift DZire, SX4, Omni,
Eeco, Kizashi, Grand Vitara, Gypsy and Ertiga. In an environment friendly
initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5
models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and
Sx4. With this Maruti Suzuki became the first company in India to introduce factory
fitted CNG vehicles.
In terms of number of cars produced and sold, the Company is the largest subsidiary
of Suzuki Motor Corporation.

Maruti Suzuki is the only Indian Company to have crossed the 10 million sales mark
since its inception. In 2011-12, the company sold over 1.13 million vehicles
including 1,27,379 units of exports.
The Company employs over 9000 people (as on 31st March, 2012). Maruti Suzuki's
sales and service network is the largest among car manufacturers in India. The
Company has been rated first in customer satisfaction in the JD Power survey for 12
consecutive years. Besides serving the Indian market, Maruti Suzuki also exports
cars to several countries in Europe, Asia, Latin America, Africa and Oceania.

FIGURE 2.1

2.1 HISTORY OF MARUTI SUZUKI COMPANY :

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by
the lack of an efficient public transport system.

Suzuki Motor Company was chosen from seven prospective partners

worldwide. This was due not only to their undisputed leadership in small cars but
also to their commitment to actively bring to MUL contemporary technology and
Japanese management practices (which had catapulted Japan over USA to the status
of the top auto manufacturing country in the world).

A license and a Joint Venture agreement were signed between Govt of India
and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct1982.

2.2 The objectives of MUL then were:

 Modernization of the Indian Automobile Industry.

  Production of fuel-efficient vehicles to conserve scarce resources.
 Production of large number of motor vehicles which was necessary for
economic growth
 Maruti created history by going into production in a record 13 months.
 On 14 December 1983, the then Prime Minister of India, Mrs Indira
Gandhi, released the first vehicle for sale by handing over the keys of
a Maruti 800 to Mr.Harpal Singh of Delhi.
 Volume targets were routinely exceeded, and in March 1994, we became the
first Indian company to produce over one million vehicles, a landmark yet to
be achieved by any other car company in India. Maruti is the highest volume
car manufacturer in Asia, outside Japan and Korea, having produced over 4
million vehicles by April 2003.
Maruti (subsidiary of Suzuki), has made profits every year since inception except
2000-01. In 2001-02, we made a profit (before tax) of Rs 1183 million. In 2002-03,
the profit (before tax) rose to Rs 2821 million, recording a growth of 138.4%over
the previous year.

Maruti revolutionized the way Indians looked at cars. "No other car company so
completely dominates its home market" - (The Economist). MUL is the first and
only car company in the world to lead its home market in terms of both market share
and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India
Customer Satisfaction studies). It is also the only car company in the world to be
Top ranked four times in a row (2000, 2001, 2002 & 2003).

Present Status
 Figure 2.2.1

Manufacturing Excellence

They began our operations in 1983, with the first Maruti 800 rolling out from our
Gurgaon plant. Over the next two decades Maruti Suzuki car models led by Maruti
800 brought about a revolution in the Indian car market.

As the automobile market grew so did our production capacities, production process
and infrastructure. Our scale and manufacturing today is completely different from
when it began.

Today, Maruti Suzuki's plants are comparable with the best in the world in terms of
quality, productivity and operational efficiency.

2.3 TRANSFER OF TECHNOLOGY OF THE MARUTI SUZUKI COMPANY :

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that
the transfer of contemporary technology from our partner Suzuki is a smooth
process.

Great stress is laid on training and motivating the people who man and
maintain the equipment, since the best equipment alone cannot guarantee high
quality and productivity.

From the beginning it was a conscious decision to send people to Suzuki

Motor Corporation for on-the-job training for line technicians, supervisors and
engineers. This helps them to imbibe the culture in a way that merely transferring
technology through documents can never replicate. At present 20% of our workforce
have been trained under this programme

Gurgaon Facility

Figure 2.3.1
The Gurgaon facility spread over 300 acres is located around 25 kms south of Delhi.
This facility houses three fully integrated plants. Together the three plants churn out
around 9 lakh units annually.

K- series Plant
 Figure 2.3.2
The Gurgaon premises also houses the 'K Engine' Plant. Commissioned in 2008, the
K-series engine plant has an installed capacity of over 7.7 lakh units per annum.
Since the launch of the engine cumulatively, over 10 lakh K-series engines have
been rolled out.

K-series engines are available in 1 litre, 1.2 litre and 1.4 litre capacities. The highly
fuel efficient, technologically advanced K-series engines have been very well
appreciated by our customers for their performance.

Several Maruti Suzuki cars such as the Alto K10, A-star, Estilo, WagonR, Swift,
Swift Dzire, Ritz and Ertiga are powered by the K-series engines.

Manesar Facility

Figure2.3.3
The 600 acre Manesar facility located around 25 kms south of Gurgaon facility was
inaugurated in February 2007. The Manesar facility houses two fully integrated
plants with a capacity of 5.5 lakh units annually. The third assembly line is in
advanced stage of completion and is expected to be completed in the year 2013.

Both manufacturing facilities are highly automated with advanced robotics,

contemporary paint, weld and machining infrastructure. While the different models
can be assembled on same lines, inter plant flexibility helps to increase productivity.
On a single line diverse car models can be made conveniently. Automatic tool
changers, centralized weld control systems and advance numerical control machines
help for quick change over between models.

Suzuki Powertrain

Figure 2.3.4

Suzuki Powertrain India Limited is a joint venture of Maruti Suzuki with Suzuki
Motor Corporation, Japan.at Manesar. It manufactures world class diesel engines
and transmissions for cars.

SMC holds 70 per cent equity in SPIL the rest is held by Maruti Suzuki.

2.4 ETHOS OF THE MARUTI SUZUKI COMPANY :

 Our employees are our greatest strength and asset. It is this underlying
philosophy that has model our workforce into a team with common goals and
objectives. Our Employee-Management relationship is therefore characterize by:

 Participative Management.
 Team work & Kaizen.
 Communication and information sharing.
 Open office culture for easy accessibility
To implement this philosophy, we have taken several measures like a flat
organizational structure. There are only three levels of responsibilities ranging from
the Board Of Directors, Division Heads to Department Heads. Other visible features
of this philosophy are an open office, common uniforms (at all levels), and a
common canteen for all.

This structure ensures better communication and speedy decision making

processes. It also creates an environment that builds trust, transparency and a sense
of belonging amongst employees

2.5 Products :
Figure 2.5.1

Figure 2.5.2
Figure 2.5.3

Figure 2.5.4

Figure 2.5.5
Figure 2.5.6

Figure 2.5.7

Figure 2.5.8

Figure 2.5.9
 Figure 2.5.10

2.6 Registered and Corporate office :

11th Floor, Jeevan Prakash, 25,

Kasturba Gandhi Marg, New Delhi - 110001,

India 91-11-23316831 (10 lines)

Fax: 91-11-23318754, 91-11-23713575Telex: 031-65029 MUL IN

Works

Palam Gurgaon Road, Gurgaon -122015,

Haryana, India 91-124-2340341-5, 91-124-2341341-5,

Voice Mail  91-124-2346721

Engineering  91-124-2399004, 91-124-2340367

Fax: 91- 124-2341304 (ENGG), 91-124-2341404 (SUPPLY CHAIN), 91-124-

2342617 (PRODN), 91-124-2341411 (P&P), 91-124-2340078 (S&D), 91-124-
2341408 (SPARES), 91-124-2341402 (PROJECTS),91-124-2340338 (FINANCE)

Maruti Customer Information Center

1600 11 1515 (Toll Free) -- accessible to MTNL and BSNL subscribers only
98118-01515 -- accessible to mobile phone users and subscribers of Touch Tata
etc. Please note that the calls to this mobile number will not be Toll-Free

Service presently available in Delhi, Gurgaon, Mumbai, Chennai, Bangalore and

Hyderabad..

CHAPTER-3
CONSUMER SATISFACTON

3.1 SATISFACTION THEORY

Whether the buyer is satisfied after purchase depends on the offer’s

performance in relation to the buyer’s expectations.
 Satisfaction is a person’s fallings of pleasure or disappointment resulting
from comparing a product’s perceived performance 9or outcome) in relation to his
or her expectations.

As this definition makes clear, satisfaction is a function of perceived

performance and expectation. If the performance falls short of expectations, the
customers, the customer is dissatisfied. If the performance matches the expectations,
the customers are satisfied. If the performance exceeds expectations, the customers
are highly satisfied or delighted.

Many companies are aiming for high satisfaction because customers who are
just satisfied still find it easy to switch when a better comes along. Those who are
highly satisfied are much less ready to switch. High satisfaction or delight creates an
emotional bond with the brand, not just a rational performance. The result is high
customer loyalty. Xerox’s senior management believes that a very satisfied or
delighted customer is worth 10 times as much to the company as a satisfied
customer. A very customer is likely to stay with Xerox many more years and buy
more than a satisfied customer will.

There are five major factors, which affected satisfaction of the car namely: -

1) Problems Experienced:
Contributing to 35% of the CSI score, this factor measures the quality of the
car in terms of the number of repair problems that cropped up and how often it
was returned for re-service.

2) Service Advisor:
Which related to ability of the services advisor to ability of the service advisor
to understand the problem and his promptness in attending to the customer,
contributing to 28% of the CSI Score.

3) Service Performance:
 Measures the quality of the service performed as well as the dealer’s ability to
fix a problem on the first visit. It has a weightage of 26% in the CSI score and
also considers how easily spare parts are available when required.

4) Service Timing:
Affecting the score by just 6%, this time taken for a service or repair job was
responsible and if the vehicle was ready at the time promised.

5) Facility Appearance: -
Deals with the appearance of the customer lounge at the dealership and the
look and cleanliness of the service area. This factors has the least impact CSI
score at Just 5%

3.2 KEY INITIATIVES FOR SATISFYING CUSTOMERS :

Car pickup & delivery facility for women car owners

Quote Unquote: "The study finds that vehicle pickup and delivery before and
after service has a strong impact on customer satisfaction. In particular, customers
who say that their vehicle was picked up from their doorstep before service and
delivered to the same point after service are notably more delighted with their after-
sales service experience, compared with customers who do not receive this
service...."

Car Safety device: Immobilizer

The company used technology to meet customer needs and even delight them.
Following feedback that the company's cars were more prone to theft owing to their
resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system
for all its new cars.

Setting up "Express Service Bays" & "2 - Technician Bays"

As the name suggests the company set out to delight its customers by offering
them faster car service by introducing new concepts such as Express Service Bays &
2- Technicians Bays.

These are done for customers who are hard pressed for time.

Both the initiatives undertaken in this direction have helped improve customer
interface and also helped increase the productivity and capacity of existing
workshops.

Mega Camps

The company aggressively conducts 'Mega Camps' throughout the country

round the year. Activities undertaken during a mega camp include complimentary
car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc.

Apart from mega camps workshop camps like A/C checkup camps, PUC and
general check-up camps, Locality camps , Pre monsoon camps etc are also regularly
conducted as part of customer connect initiatives.
Service at your Door Step through Maruti Mobile Support

Another unique initiative is the door step service facility through Maruti Mobile
Support.

Maruti Mobile Support is a first of it's kind initiative and is expected not only to
help the company reach out customers in metro cities but also as a mean to reach
semi urban /rural areas where setting up of new workshop may not be viable.

Complete Car Needs

The company's effort of providing all car-related needs -- from learning to drive a
car at Maruti Driving Schools to car insurance, extended warranty and eventually
exchanging the existing car for a new one -- under one roof at dealerships also
enhances customer satisfaction.

Customer’s expectations:

Customer is defined as anyone who receives that which is produced by the

individual or organization that has value. Customer’s expectations are continuously
increasing. Brand loyalty is a thing of past. Customer seek out products and
producers that are best able to satisfy there requirements. A product does not need to
be rated highest by the customer on all dimensions, only those they think are
important.

Customer perceived value:

Customer perceived value is difference between the prospective customer’s

evaluation of all the cost of an offering and the perceived alternatives.

Total customer value is perceived monetary value of the bundle of economics,

functional and psychological benefits customer expect from the given marketing
offering.
Delivering high customer value the key to generating high customer loyalty is to
deliver high customer value. According to Michel Lanning, a company must design
a competitively superior value deliver system.

3.3 Customer satisfaction:

Satisfaction is the person’s feelings of pleasure or disappointment resulting from

comparing a product’s perceived in relation to his or her expectations. In general, if
performance of the products matches the expectations, the customer is said to be
satisfied. Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet or surpass customer expectations. In a
competitive marketplace where business complete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy. If performance exceeds expectations, the customer is
said to be highly satisfied or delighted. If the performance falls short of
expectations, the customer is said to be dissatisfied.

Measuring customer satisfaction:

Organizations are increasingly interesting in retaining existing customers while

targeting non-customers measuring customer satisfaction provides an indication of
how successful the organization is at providing products and/or services to the
marketplace. Customer satisfaction is an ambiguous and abstract concept and the
actual manifestation of the state of satisfaction will vary from person to person and
product/service to product/service.

The state of satisfaction depends on a number of both psychological and physical

variables which correlate with satisfaction can also vary depending on other options
the customer may have and other products against which the customer can compare
the organization’s products.

Importance to measure customer satisfaction:

While is it is critical to be in sync with the overall business objectives of the

organization, it is also critical to be in tune with information requirements of users,
and the value they find in services provided by the info center. In order to be
perceived as integral assets to their organizations, most information professionals
are concerned with expanding their activities, and serving more customers better.
Building on a loyal customer or user base is the best and easiest way to grow your
business. Just as companies find it costs approximately five times more to acquire
new customers than it costs to keep a customer, Info Centers will find it most cost
effective to grow by building on the services now provided to loyal, committed
customers. To continue earning that customer loyalty, information professionals
must keep tabs on the satisfaction levels and perceptions of value held by Info
Center users. Strategies to develop the new business should always be balanced by
strategies to retain existing business and ensure ongoing satisfaction of existing
customers. There is an also real bottom-line reason for measuring customer
satisfaction.

Positive results from customer satisfactions studies will make a strong statement in
support of continued funding for Info Center activities.

Tools for measuring Customer Satisfaction:

Complaint and Suggestion Systems:

A customer-centered organization makes it easy for customers to register
suggestions and complaints. Companies also using web sites and e-mail for quick,
two-way communication.

Customer Satisfaction Survey:

Responsive companies measure customer satisfaction directly by conducting

periodic surveys.

Ghost Shopping:

Companies can hire people to pose as potential buyers to report on strong and weak
points experienced in buying the company’s and competitor’s products. These
shoppers can even test the company’s sales personnel handle various situations.

Lost Customer Analysis:

Companies should contact customers who have stopped buying or who have
switched to another supplier to learn why this happened.

Focus Groups:

Focus groups can be held on an informal or formal basis. On an informal basis,

consider having a group of users meet for coffee or lunch to discuss their
satisfaction with services being evaluated. On a more formal basis, a facilitator with
experience in leading focus groups can work with personnel to plan questions and
activities to elicit perception of value and satisfaction from participants.

Customer Satisfaction Survey:

Study show that although customers are dissatisfied with one out of every four
purchases, less than five percent of dissatisfied customers will complain. Most
customers will buy less or switch to other supplier. Complaint levels are thus not
good measure of customer satisfactions responsive companies measure customers.
Satisfaction directly by conducting periodic survey. They send questionnaire or
make telephonic calls to a random sample of recent customers. They also solicit
buyer’s views on there competitor performance.

While collecting customer satisfaction data, it is also useful to asked additional

questions to measure re purchase intention; this will normally be high if his
customer satisfaction is high. It is also useful to measure likely hood or willingness
to recommend the company and brand to others. A high positive word-of-mouth
score indicates that the company is producing high customer satisfaction.

Customer satisfaction helps company in knowing the wants, needs and expectation
of customers. It also helps to collect feedback about products. This will assist
company in new product development.

CHAPTER-4

RESEARCH & METHODOLOGY

4.1 OBJECTIVE OF THE STUDY: -

 To know the satisfaction level of the customers having, MARUTI car.

 To know how many persons are willing to buy, MARUTI cars.
 To know the market share of, MARUTI cars.
 To know the different criteria that the customer undertakes while purchasing
the cars.
 Trough customer satisfaction, we can know the current position of MARUTI
SUZUKI, in the market.
Also the study will provide detail about the automobile sectors and the position of
the company will be known.

4.2 NEED FOR THE STUDY: -

 Increasing competition, ever growing market, easy availability of the finances

and increasing population of young executives, with huge disposable
incomes, over the past few years has substantially increased the sales in the
automobile industry.

 Also, the competition among the dealers of the products has increased with
each trying to maximize their customer base.

 This makes it imperative for the dealers to provide the best of the services and
exceed the customer expectations to achieve customer delight and loyalty.

 The study tries to understand the key service parameters and reflect upon the
dysfunctional areas, thus providing the dealer with an insight into the level of
customer satisfaction and changing trends of the customer expectations.

4.3 TYPES OF RESEARCH: -

On the basis of theoretical study a research has many types. All of these are
distributed on the nature of research. Some of these are like -

1. Descriptive and Analytical.

2. Qualitative and Quantitative.

3. Conceptual and Empirical.

4. Applied and Fundamental.

5. One time research.

 Descriptive Research: - Descriptive research includes surveys and fact

finding enquires of different kinds. The major purpose of descriptive research
is description of the state of affairs as it exists at present. Researcher has no
control over the variables of this type of research.

 Qualitative Research: - In our research we need comparison between

different stock brokers. So this based on all qualitative data. In short,
Qualitative research is especially important in the behavioral sciences where
the aim is to discover the underline motives of human behavior.

 Quantitative Research: - Quantitative research is based on the measurement

of quantity or amount. It is applicable to phenomena that can be expressed in
terms of quantity. So we can use it in our research for collection of all the
numerical data.

 Exploratory Research: Formulate research is another term used for

exploratory research. The important objective of such studies is for problem
formation with more precision for research and developing research
hypothesis to get the result for operations. The key concern in such studies is
on generating ideas and finding the insights.

 Empirical Research: Empirical study relies on experience and observation

alone, often without due regard for system and theory. It is data based
research coming up with conclusions which are capable of being verified by
observation or experiment.

The study is based on Exploratory cum Empirical research.

SCOPE OF THE STUDY: -

  The study measures the experiences of customers.

 Defines and analyses the experiences based on key deliverables.

 Gains insights into Customer expectations.

4.4 SOURES OF DATA COLLECTION: -

 Primary Data - The Primary Data has been collected through questionnaire.

 Secondary Data - Secondary data includes information regarding present

market scenario, information regarding mutual funds and competitors are
collected by internet, magazines and news papers, books and websites.

 Survey Method: - Survey refers to the method of securing information

concerning phenomena under study from all or selected number of
respondents of the concerned area. In a survey the investigator examines
those phenomena which exist in the universe independent of his action.

 Questionnaire Method:-This method of data collection is quite popular,

particularly in case of big enquiries. In this method the questionnaire is
sent/give to the persons concerned with a request to answer the questions and
return the questionnaire. A questionnaire consists of a no. of questions printed
or typed in a definite order on a form or set of forms.

4.5 LIMITATIONS OF THE STUDY: -

The study is restricted in scope of owing to the following limitations:

 Time Constraints:
 Time is too short to conduct the study in depth. But I tried my best efforts to
collect the data.

 Area Constraints:
My area of study was Bhubaneswar, Puri, Paradeep, due to shortage of time I
could not cover whole area.

 Money constraints:
Due to the money constraint, it was not able to cover the whole area.

 Lack of Respondents Response:

Some respondents hesitated to respond to my questions openly. Due to this,
response of some questions can tend to be biased.

CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

INTRODUCTION: -

Analysis is the process of breaking a complex topic or substance into smaller parts
to gain a better understanding of it. The technique has been applied in the study
of mathematics and logic since before Aristotle, though analysis as a formal concept
is a relatively recent development. Data analysis involves working to uncover
patterns and trends in data sets; data interpretation involves explaining those
patterns and trends. Researchers interpret data based on their background knowledge
and experience, thus different scientists can interpret the same data in different
ways.

Data analysis and interpretation is critical in analyzing the market. What does this
information mean? Can one use the data in a constructive way to define the problem
and then establish a plan? In quantitative research, this step most often involves
statistics. In the marketplace one can find many statistical packages (computer-
based) to analyze the data.

It is impossible to collect data on every person in a select population; therefore

samples are necessary. A sample population is a part of the relevant population. How
well the sample reflects the relevant population dictates its validity. Results from a
sample that is not representative will negatively impact your marketing. In addition
to sampling and validity issues, marketing managers must make sure the data
supports the conclusions drawn. This is the interpretation step. Despite use of the
correct statistical tool and accurate calculations, the interpretation could be wrong.

This research and interpretation was based on the sample size of 100 people to
measure the satisfaction of the customer while was carried out with the help
questionnaire and personnel interview technique.

Descriptive research is used for this study as it is the best way to understand the
lives of the people around us. Analysis and the interpretations have been carried out
with the help of tables, charts and graphs, which helps to represent the data more
successfully.
\

1. Influencing features for the purchasing power of the customer.

Particulars No. of respondents Percentage (%)

Price 36 36
Product Features 30 30
Brand 18 18
Service 16 16
Total 100 100

Influencing Features
Price Product Features Brand Service

Service; 16; 16.00%

Price
Brand; 18; ; 36; 36.00%
18.00%
Product Features; 30; 30.00%
 Figure 3.1

Analysis: -

Here we found that the price feature of Alto car is more influencing factor to
purchase power of the consumers. In this chart it is clear that price is very important
factor for the consumption level of the product. This is showing that % of price
feature is more than compare to others i.e. 36%. Hence, selling of Alto car is
depending upon the product quality.

2. Availability of the MARUTI ALTO.

Particulars No. of respondents Percentage (%)

Strongly Agree 65 65
Agree 25 25
7 7

Disagree
Strongly Disagree 3 3
Total 100 100
 Availability
Agree Disagree Strongly Disagree

3; 3.00%
Strongly Disagree; 7; 7.00%
Disagree; 25; 25.00%
Agree ; 65; 65.00%

Figure 3.2

Analysis: -

Here we found that Maruti Alto is easily available in the showroom and there is no
waiting period of this car. So customer were strongly agreed with the availability of
the car i.e. 65%

3. Variety/Selection.

Particulars No. of respondents Percentage (%)

Strongly Agree 40 40
Agree 24 24
Neither Agree Nor Disagree 20 20
Disagree 10 10
Strongly Disagree 6 6
Total 100 100
 Strongly Disagree; 6; 6.00%
Disagree; 10; 10.00%
Strongly Agree
Strongly Agree; 40; 40.00% Agree
Neither Agree Nor Disagree; 20; 20.00% Neither Agree Nor Disagree
Disagree
Strongly Disagree

Agree ; 24; 24.00%

Figure 3.3

Analysis: -

Here we found that Alto has different variety of car and the customer has a bulk of
choice for the various variety provided by maruti Alto, so customers has strongly
ageed that Alto has different varieties of car. i.e. 40%.

4. Attractive discounts offered.

Particulars No. of respondents Percentage (%)

Strongly Agree 24 24

Agree 36 36

Neither Agree Nor Disagree 20 20

Disagree 12 12

Strongly Disagree 8 8

Total 100 100

 Attractive Discounts
Strongly Agree
Strongly Disagree; 8; 8.00% Agree
Strongly
Disagree; 12; 12.00%Agree; 24; 24.00%
Neither Agree Nor Disagree
Disagree
Neither Agree Nor Disagree; 20; 20.00% Strongly Disagree

Agree ; 36; 36.00%

Figure 3.4

Analysis: -

Here we found that the Dealers are providing various discount at the time of
purchasing of Alto. So acc. to the above chart customer agree that the company and
the dealers provides various discount and more % of the customer agree with the
statement. i.e. 36%.

5. Responds to complaints quickly.

Particulars No. of respondents Percentage (%)

Strongly Agree 30 30

Agree 40 40

Neither Agree Nor Disagree 16 16

Disagree 10 10

Strongly Disagree 4 4

Total 50 100
 Complaints
Strongly Agree
Strongly Disagree; 4; 4.00% Agree
Disagree;Strongly Agree; 30; 30.00%
10; 10.00% Neither Agree Nor Disagree
Neither Agree Nor Disagree; 16; 16.00% Disagree
Strongly Disagree
Agree ; 40; 40.00%

Figure 3.5
Analysis: -

Here we found that the complaints which are logged by the customers are quickly
responded by the company and the dealer used to send the person to solve the
problems so the above chart show that the complaints are quickly solved by the
company and majority % of the customer agree with the statement, i.e. 40%.

6. Service at Maruti Service Station Is Excellent.

Particulars No. of respondents Percentage (%)

Strongly Agree 20 20
Agree 30 30
Neither Agree Nor Disagree 34 34
Disagree 14 14
Strongly Disagree 2 2
Total 100 100
 Maruti Service Station

Strongly Disagree; 2; 2.00%

Strongly Agree; 20; 20.00% Strongly Agree
Disagree; 14; 14.00% Agree ; 30; 30.00%
Agree
Neither Agree Nor Disagree; 34; 34.00%
Neither Agree Nor Disagree
Disagree
Strongly Disagree

Figure 3.6
Analysis: -

Here we found that when customers want to repair or want to service their car at that
time the care of the car is atmost taken by the service centre, So the above chart
shows that the service is properly done by customer. So % of customer neither agree
nor disagree with the statement. i.e. 34%.

7. Important suggestions towards the Maruti Alto engine.

Particulars No. of respondents Percentage (%)

Very Good 20 20
Good 32 32
Average 30 30
Not Good 12 12
Can’t Say 6 6
Total 100 100
 Maruti Alto Engine
Very Good
Can’t Say; 6; 6.00%
Good
Very Good; 20; 20.00%
Not Good ; 12; 12.00% Average
Average; 30; 30.00% Not Good
Good ; 32; 32.00%
Can’t Say

Figure 3.7

Analysis: -

This chart shows the various suggestions towards the maruti Alto engine. Most of
the suggestions are good. On the other hand, most of the consumers are satisfied
from it’s engine capability. Hence, we can say that % various feedbacks of the
consumers regarding good is higher than compare to others i.e. 32%.

8. Customer satisfaction toward mileage of Maruti Alto.

Particulars No.of respondents Percentage (%)

Yes 76 76
No 24 24
Total 100 100
 Mileage of Maruti Alto

Yes
No; 24; 24.00%
No

Yes; 76; 76.00%

Figure 3.8

Analysis: -

Here we found that 76% customers are satisfied with the mileage of Alto and other
24% customers are not satisfied with the mileage of Alto they have diffirent
perception regarding the mileage of Alto. This chart showing the majority of
satisfied customers, so we can say that customers are satisfied with mileage of Alto.

9. Customer opinion on Maruti Alto related to safety features.

Particulars No. of respondents Percentage (%)

Very Good 20 20
Good 34 34
Average 24 24
Poor 22 22
Total 100 100
 Safety

Poor; 22; 22.00% Very Good; 20; 20.00%

Average; 24; 24.00% Good; 34; 34.00%

Figure 3.9

Analysis: -

This chart is showing that just customer satisfied with the safety features of Alto
because when customer expect more safety then cost of Alto beccome high. So here
34% customers are satiesfied with safety features of Alto and only 20% are most
satisfied with the safety and 24% average satisfied with the safety features
remaining 22% are unable to say about the safety features of the Alto.

10. Customer opinion about good competitor of maruti Alto.

Particulers No. of respondents Percentage (%)

Cheverolet Beat 30 30
Hyundai i10 34 34
Hyundai Santro 16 16
Nissan Micra 20 20
Total 100 100
 Competitors
Beat
i10
Santro
Nissan micra; 20; 20.00%
Nissan micra
Santro ; 16; 16.00%Beat ; 30; 30.00%
i10; 34; 34.00%

Figure 3.10

Analysis: -

Here we found that 34% is the highest value so its indicate that i10 is the best
competitors of the Alto, after that Beat and Santro are good competitors of Alto.
Now Nissan Micra has come in market with diffirent features and luxurious model
so it is also a good competitor of Maruti Alto. In this chart Nissan Micra got the 20
% so it indicate the Nissan Micra is also competitor of Alto.

11. Customers Satisfaction towards the changes in the Alto car.

Particulers No.of respondents Percentage (%)

Satisfied 52 52
Nuetral 26 26
Dissatisfied 22 22
Total 100 100
 Customer Satisfaction

Dissatisfied; 22; 22.00% Satisfied

Nuetral
Dissatisfied
Satisfied; 52; 52.00%

Nuetral; 26; 26.00%

Figure 3.11

Analysis: -

Here we found the costomers are very enthusiastic to want change in the Alto for
their better satisfaction i.e. 52% response by the customers. And 26 % customers are
nuetral towards the changes made & 22% customers are dissatisfied

Here majority is saying that customers want changes in the Alto as mostely
customers want to have wider “Boot space” as the space available between the front
seat & the rear is less, thus making it a little incomfortable.
12. What is your overall opinion about Maruti Alto?

Particulars No. of Respondents Percentage %

Very Good 22 22
Good 37 37
Average 25 25
Bad 14 14
Very Bad 2 2
Total 100 100

Overall Opinion
Very Good Good Average Bad Very Bad

Very Bad; 2; 2.00%

Bad; 14; 14.00%
Very Good; 22; 22.00%

Average; 25; 25.00%

Good; 37; 37.00%

Figure 3.12
Summary of the Analysis: -

Here we found that overall opinion of maruti Alto is that 22% of the customer
treated is as the best car, 37% of the customer treated it as the good car, 25% treated
it as neutral car and the rest treated it as a car not up to their mark.

CHAPTER –-6

FINDINGS
It is observed that
1.The prospective segment is from the business and self employed
class.
2. The company should concentrate on the age group 26-34.
3. Maruti should continue to maintain the standard of the service.
4 .It i s obs erved t hat , 42% of the responde nt are of opinion
that vehicles are as per expectation, and 20% are saying its below
expectation.
5.Com pany shoul d i mpr ove it s post sa les service.
6.The customer highest priority is for the mileage.
7.Maruti Suzuki needs to improve its awareness about Add-on-
Services like any time Maruti new etc.
8.Customer are highly satisfied with the service which help in
customer retention
9.I t is obs er ved that , 46% of t he cust ome rs are of opi ni on t hat
Mar ut i should improve in quality, and 16% of the opinion that Maruti
should improve in price.
10 .Customers are highly satisfied which help in customer retention.

CHAPTER - 7

SUGGESTIONS
1. After conducting the survey and knowing the market, I realized that:

2. The company should keep in mind the need of young generation.

3. Company should improve the promotion strategy of product.

4. Company should improve the promotion strategy of Add-on services.

5. It wil l be benef icial for the com pany t o make t he war ehouse near
to t he showroom and there should be roof facility, adequate security
facility in the warehouse.

6. The Company should know its customers satisfaction level throughout

doing periodic surveys. Periodic surveys can treat customer satisfaction directly.

7. Company shoul d i mpr ove/ upgrades it s employee’s pr oduct

knowl edge market situation, and its competitor’s knowledge by giving proper
training to employee.

8. Company should upgrade or innovate its new product.

CHAPTER – 8
CONCLUSION
It has been observed that most customers are satisfied with pre sales
services similarly most of these customers are dissatisfied with the post sales
service which is the matt er of concern for t he com pany. Mar ut i Suzuki
needs to im prove some par ts of products specifically the interiors. High
customer satisfaction level helps the company to retain its existing customer as
well as generate new customer through word to mouth publicity. Customer
satisfaction index is a good tool to make improvements in the products and services
of the company . And therefore should utilize carefully & kept as con

QUESTIONNAIRE

Study on – “CUSTOMER SATISFACTION towards MARUTI SUZUKI

CARS”, with the special significance to the authorized dealer.

Name …………………………….

Mobile No………………………………
Email…………………………….
Profession……………………………...

1. From how man y y ear s you are us ing t hi s model?

a) 0-2 years b) 2-4 years

d) 6-8 years
c) 4-6 years

2. Pre ferenc e for choos i ng part icul ar car?

a) comfort b) looks

c) features d) price

3. Variety/Selection of Maruti Alto?

a) Strongly Agree b) Neither Agree or Disagree

c) Agree d) Disagree

4. Attractive Discounts Offered?

a) Strongly Agree d) Disagree

b) Agree e) Strongly Disagree
c) Neither Agree or Disagree

5. What is your Post-sales experience after purchasing the car?

a) excellent b) good
c) average
d) below average
6. Service At Maruti Service Station Is Excellent?

a) Strongly Agree d) Disagree

b) Agree e) Strongly Disagree
c) Neither Agree Nor
Disagree

7. Important suggestions towards the Maruti Alto engine?

a) Very Good d) Not Good

b) Good e) Can’t Say
c) Average

8. Customer satisfaction toward mileage of Maruti Alto?

a) Yes b) No

9. Customer opinion on Maruti Alto related to safety features?

a) Very Good b) Average

c) Good
d) Poor

10.Customer opinion about good competitor of Maruti Alto?

a) Beat b) Santro

c) I10 b) Nissan micro

11. Making sure that everything in the Maruti Alto was in working order?

a) Excellent b) Very good

c) Good d) Fair

12. Are you satisfied ablout the price of Maruti Alto comparing with others?

a) Highly satisfied b) Satisfied

c) Neutral d) Dissatisfied
 BIBLIOGRAPHY

 Marketing Management by Philip Kotler, the millennium

edition2.Res earch Met hod ol ogy-C.R. Kot har i.2

 www.wikipedia.com

 Edition3 . W e b s i t e v i s i t e d – www.marutisuzuki.com

 www.automotive.com

 www.marutiudyog.com

 Newspaper-business standards, Dainak Gajran, Times of India, etc.

 www.gurusoftware.com

 www.wikinvest.com