SUMMER TRAINING PROJECT REPORT

Submitted in Partial Fulfillment of Master of Business Administration

(Session 2018-2020)

Topic:- Maintaining CRM by studying consumer buying

behavior with special reference to Maruti Suzuki Smart
Wheels Pvt. Ltd.

SUBMITTED BY:
[SANDEEP SINGH]
[1834870034]

Company Guide: Internal Guide:

[Mr. Sanjay Gupta] [Mr. Deepak Shukla]
[ Sales Manager] [Assistant Professor]

PSIT COLLEGE OF ENGINEERING

Affiliated to Dr. APJAKTU
 DECLARATION
I hereby declare that this submission is my own work. It contains no material previously
published or written by another person, nor has this material to a substantial extent been
accepted for the award for any other degree or diploma of the university or other institute of
higher learning.

SANDEEP SINGH
(1834870034)
 ACKNOWLEDGEMENT

Summer Project Report is the one of the important part of MBA program, which has helped me

to gain a lot of experience, which will be beneficial in my succeeding career.

For this with an ineffable sense of gratitude I take this opportunity to express my deep sense of

indebtedness and gratitude to Dr. Ajit Kumar Naresh Chandra Shukla (Director), and

Dr .Harit Kumar ( HOD), department of business administration for their encouragement,

support and guidance in carrying out the project.

I am very much thankful to, my project guide Mr. Deepak Shukla, Assistant Professor

Department of Business Administration for their interest, constructive criticism, persistent

encouragement and untiring Guidance throughout the development of the project. It has been my

great privilege to work under his inspiring guidance.

I am also thankful to my Parents and my friends for their indelible Co-operation for achieving the

Goal of this study.

 EXECUTIVE SUMMERY

I, as a Management intern was engaged with Maruti Suzuki Smart Wheels Pvt. Ltd. in

Gida Gorakhpur. I worked in a Sales department for 45 days .It was a very educative

and professional experience and thereby gaining a practical overview of the corporate

work culture. The Project- Maintaining CRM by studying consumer buying behavior

with respect to Maruti Suzuki Smart Wheels Pvt. Ltd. is an attempt to find out the

factors affecting the consumer buying behavior of Maruti Suzuki Smart Wheels Pvt.

Ltd. Subscribers. To find the impact of branding on consumer buying behavior. To

examine the relationship between monthly income and price sensitive attitude. To study

the relationship between profession and experience of Maruti Suzuki Smart Wheels

Pvt. Ltd. customers. To assess the relationship between promotional strategy of celebrity

endorsement and experience of Maruti Suzuki Smart Wheels Pvt. Ltd. customers. The

analysis revealed that there are some factors like convenience , delivery service, branding

which leads to customer loyalty. It was found from the study that Company has created

goodwill among the customers which will help them to recommend car to friends and

relatives. . It was found that Customer are highly satisfied with the service which help in

customer retention .

The sample size of the customers was 200 and hard copy of questionnaire was given to

customers to give response of statements. My study is descriptive in nature and I have

used simple random sampling.

According to my research analysis I found that maximum number of customer are about

age group between 26-34 and the 40%.

According to my research analysis I found that maximum number of customer are like the

service of Maruti Suzuki Smart Wheels Pvt. Ltd. They are satisfied and they recommend

their family & friends to buy Maruti Suzuki cars,

 TABLE OF CONTENT

Part-I

❖ CHAPTER- 1: INTRODUCTION
1.1 General introduction about the sector (1-13)
1.2 Industry Profile (14-28 )

❖ CHAPTER -2: COMPANY PROFILE

2.1 Origin of the organization (29-39)

2.2 Vision, Mission & Quality Policy (40)
2.3 Growth and development of the organization (41-43)
2.4 Present status of the organization (44-47)
2.5 Functional departments of the organization (48-52)
2.6 Organization structure and organization chart (53-54)
2.7 Product and service profile of the organization/competitors (55-58)
2.8 Market profile of the organization (Competitors’ information, SWOT analysis, Future
growth) (59)
 Part-2

CHAPTER 3:- STUDY OF THE SELECTED RESEARCH PROBLEM

3.1 Statement & Introduction of the research Problem (60-61)

3.2 Review of Literature (62-69)

3.3 Statement of the research objective (70)

3.4 Scope of Study (71)

3.5 Research design (72)

3.6 Sampling Techniques (73-74)

3.7 Data Collection (Primary &Secondary) (75)

CHAPTER 4 :- DATA ANALYSIS & INTERPRITATION

4.1 Analysis and interpretation of the data Collected with relevant tables and graphs.
Results obtained by using statistical tools (76-89)

CHAPTER 5 :-SUMMARY AND CONCLUSIONS

5.1 Findings (90-91)

5.2 Conclusion & Recommendations (92-93)

LIMITATIONS OF RESEARCH (94)

BIBILOGRAPHY (95)
APPENDICES (96-100)
 LIST OF GRAPHS AND PIE CHARTS
GRAPHS:

S.No. TITLE Page

No.
4.1.1 Age of the Maruti Suzuki Customers 78

4.1.2 Customer opinion about the Maruti Suzuki vehicles for value 80
for money
4.1.3 Customers repurchase intention 86

4.1.4 Customers preference about M-Insurance 89

PIE CHARTS:
S.No. TITLE Page
No.
4.1A Occupation of the customer 77
4.1B Pre sales satisfaction level of the customer 79
4.1C Post sales satisfaction level of the customer 81
4.1D Customer priority respect to characteristic 82
4.1E Unawareness of the customers about Maruti Add On 83
Services
4.1F Customer remarks about services 84
4.1G Customer expectation from Maruti Suzuki 85
4.1H Customer recommendation to friends & relatives 87
4.1I Customer Preference about M- Finance 88
 LIST OF TABLES

S. No. TITLE Page No.

4.1a Occupation of customer 77

4.1b Age of the Maruti Suzuki’s customer 78

4.1c Pre sales satisfaction level of the customer 79

4.1d Customers opinion about the Maruti Suzuki Vehicles for 80

value for money
4.1e Post sales satisfaction level of the customer 81

4.1f Customer priority respect to characteristic 82

4.1g Customer unawareness about MS Add on service 83

4.1h Customer remarks about service 84

4.1i Customer expectation for improvement in Maruti Suzuki. 85

4.1j Customer repurchase intention 86

4.1k Customer recommendation to friends & relatives 87

4.1l Customer Preference about M- Finance 88

4.1m Customer Preference about M- Insurance 89

 PART - 1

CHAPTER - I

INTRODUCTION

1
 1.1 GENERAL INTRODUCTION

INTRODUCTION TO AUTOMOBILE INDUSTRY

One of the fastest growing industries in the world is automobile industry. This

automobile industries even has its influence on the Indian market. Probably automobile

industries occupy a large market share in the worlds market as well as in the Indian

market. Nearly 18% of the total national income is being incurred from the automobile

industry. From this we can estimate how important is the automobile industry in the

improvement of GDP of a country. In India automobile industry has a growth rate is at

the average of 10-12%.

INDIAN AUTOMOBILE INDUSTRY SINCE 1947:

Its fascinating drive through history, which begins as a story of isolation and

missed opportunities to one of huge potential and phenomenal growth.

India’s fixation with socialism and planned economies had a crippling impact on

the automotive industry in its formative years. The goal at that time for independent

India was self-sufficiency. Issues like quality and efficiency were simply not considered.

Dependence of foreign technology was banned and manufacturers were forced to

localize their products; import substitution became the order of the day. Though we

learnt to localize, the cars we made were all outdated designs with little or not

improvements for decades. The automotive industry stagnated under the government’s

stifling restrictions and the Indian car buyer was saddled with cars of appalling quality

and even then there was a waiting list that at one point stretched to eight years!

2
 This attempt at self-reliance failed miserably because of the industry’s isolation

from the best technology. The Japanese and later Korean auto industries were also highly

protected in their formative years but they never shut the door on technology. Instead,

they relentlessly tapped the best talent pools in the world to absorb the know-how to

produce good cars.

One of the most important chapters in the Indian automotive industry’s history

was written by Maruti. It marked the Indian government getting into the far business in

the early 1980’s, a radical shift in thinking after decades of treating cars with disdain.

The Maruti 800 went on to become the staple car of India and put a nation on wheels.

This little car set a benchmark for price, size and quality and structured India as small car

market.

It wasn’t till 1993 that things really started to change for the Indian car buyer.

With the liberalization of the economy, a host of international carmakers rushed in. But

most of them were in for a shock as Indian customers rejected their product. Indian

customers refused to allow the glitter of prestigious brands blind them to the outdated and

overpriced products they were offered. The Indian consumer wanted super value, and

rewarded the brands that delivered it, handsomely. Hyundai and Maruthi delivered, and

profited.

The period also saw the emergence of the Indian players like FORD Motors and

Mahindra & Mahindra. They rose to the challenge of the MNC’s and responded

brilliantly with the Indica and the Scorpio. This was ironically due to the license raj that

forced Indian carmakers to be innovative and develop products frugally. India’s frugal

engineering skill has now caught the world’s imagination, and an increasing number of

carmakers are preparing to setup major capacities here.

3
 India is changing. And changing fast. It’s moving forward. India’s largest-

selling car is not its cheapest car, the 800. It is the Alto. People’s aspirations are rising

and so are their mistakes, have got their finger on the pulse of the market. Get the right

product and the rewards are handsome.

The Indian auto industry is today bubbling with promise and confidence. It’s been

a long journey but to see where the Indian car industry is going. We have to see where it

has been.

4
AUTOMOBILE INDUSTRY IN PRE-INDEPENDENCE:

The first motorcar on the streets of India was seen in 1898, Bombay had it first

taxicabs by the turn of the century. In 1903, an American company began a public taxi

service with a fleet of 50 cars. For about 50 years after car arrived in India, cars were

directly imported.

Before World War I, around 40,000 motor vehicles were imported. During the

years between the wars, a small start for an automobile industry was made when

assembly plant were established in Bombay, Calcutta and Madras.

The import/assembly of vehicles grew consistently after the 1920s, crossing

30,000 units by 1930. It was during the end of the war that the importance of establishing

an indigenous automobile in India was realized. Premier Motors, Hindustan Motors and

Mahindra & Mahindra set up factories in the 1940s for progressive manufacture rather

than assembly from imported components. The cars they chose to make were the latest in

the world when they were introduced in India in the formative years of the industry.

5
POST- INDEPENDENCE:

The government clamped down on imports and foreign investments. Companies

like GM and Ford packed their bags and left. India’s clock, thereafter, stood still while

the world raced on ahead. It would take nearly 50 years before the Indian auto industry

could catch up with the rest of the world again.

BROADBANDING ERA:

In January 1985, the government announced its famous ‘broad banding’ policy

which gave new licenses to brad groups of automotive products such as two and four-

wheeled vehicles.

Through a liberal move, the licensing system was very much intact. A

manufacturer had to submit a phased-manufacturing programme to the Ministry of

Industry specifying the indigenization progress and allowing for almost complete

indigenization within five to seven years. The biggest hurdle was the foreign-exchange

clearance required for these projects. Except for MUL, which had direct access to policy-

makers, every other manufacturer still faced a series of obstacles.

Several new products were launched during this period. All three traditional

carmakers added new models to their ranges – Standard Motors returned to the car

business after 10 years, when in 1985 it introduced the Standard 2000, a Rover SD1 body

with the old two-litre Vanguard engine. HM bought in a 1972 Vauxhall Victor in 1985,

transplanted its ageing Ambassador engine into it and the Contessa was born.

THE BIRTH OF THE AMBASSADOR:

6
 In 1957, a small tail fin was added on either side of the rear fenders, along with a

new, dimpled hood, and the car was re-christened the Ambassador Mark I. The car cost

Rs.17,000. In 1963, it underwent a frontal facelift with a closely checkered grille and was

named the Ambassador Mark II. It would be another 12 years before the Ambassador got

a facelift. In 1975, another minor facelift to the same grille and a much bigger frontal

facelift turned out as the Mark III. The Mark IV, launched in 1979, was the last of the

Mark cars.

The Ambassador Nova was launched in 1990, followed by Ambassador

1800 ISZ three years later. The Nova was the last Ambassador powered by the 1489cc

petrol engine. In 2004, HM launched the cosmetically-revised Ambassador under the

Avigo name. Designed by Mavendra Singh, the retro look Avigo had classic touch

internals like a centrally mounted console, beige-colored seats and wood finish interiors.

THE CONTESSA YEARS:

The Hindustan Contessa, launched in 1982, was one of the few luxury cars

manufactured in the country in the 1980s and 1990s. It was based on the 1970s vintage

Vauxhall victor. While it was initially launched with the 1489cc engine found in the

Ambassador, the Contessa was soon given the Isuzu engines. There were three versions

of this car - 1.8GLX (Isuzu petrol), 2.0DLX (Isuzu diesel) and the rare 2.0T (Isuzu diesel,

turbo). The last Contessa rolled out in 2002, phased out by the demand for cheap

Japanese cars.

Some of the leading Indian auto players in Indian automobile industry are:

➢ Premier,

7
 ➢ FORD

➢ Mahindra and Mahindra

➢ Maruthi

➢ Hindustan motors

Premier:

The story of premier is the story of one mans vision, Seth Walchand Hirachand.

He not only give India its first car factory but also the country’s first aircraft factory –

Hindustan Aeronautics Limited and the country’s first modern ship yard, Hindustan

Shipyard Limited

8
Building India’s first auto factory

Seth Walchand Hirachand has first started the trails to establish an Indian car

manufacturing plant in Indian for which he went to U.S.A. where three largest car

manufacturing companies are located. He wants Indian company to be completely

independent, with Indian management capital and employees, paying royalty or

technology transfer payment to western countries.

After approaching General Motors they insisted on part ownership. Seth

Walchand then moved to second largest automaker Ford; Henry agreed, but delegated the

project to Ford of Canada, which refused. Finally the third largest automaker Chrysler

agreed and singed in an agreement in Bombay in 1940.

The arrival of FIAT:

In 1951, PAL singed up with Fiat to assemble the Fiat 500 in India. In 1952, the

tariff commission spelled out future for the auto industry – indigenize or get out.

Companies like Ford and GM, which had assembly operations in India, packed their bags

and went home. But fiat decided to stick it out and committed itself full-fledged

manufacture of the Millicento in 1954. In sep 1964, PAL and FIAT launched the Fiat

1100 DELITE in India.

The biggest customers for PAL’s were Bombay’s taxi drivers. The Padminies

were easy for maintenance in terms of spares and labour cost, low on running cost, easy

to drive and reasonably tough. It was everything that a taxi driver wants.

9
The automobile industry has changed the way people live and work. The earliest of

modern cars was manufactured in the year 1895. Shortly the first appearance of the car

followed in India. As the century turned, three cars were imported in Mumbai (India).

Within decade there were total of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was used

for transportation in India. In the beginning of 15th century, Portuguese arrived in China

and the interaction of the two cultures led to a variety of new technologies, including the

creation of a wheel that turned under its own power. By 1600s small steam-powered

engine models was developed, but it took another century before a full-sized engine-

powered vehicle was created.

Brothers Charles and Frank Duryea introduced the actual horseless carriage in the year

1893. It was the first internal-combustion motor car of America, and it was followed by

Henry Ford’s first experimental car that same year.

One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost

that featured a quiet 6-cylinder engine, leather interior, folding windscreens and

hood, and an aluminum body. Chauffeurs usually drove it and emphasis was on

comfort and style rather than speed. During the 1920s, the cars exhibited design

refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham

Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that

suited more to the needs of families. In 1930s, vehicles were less boxy and more

streamlined than their predecessor was.

10
The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless

tires. The year 1957 brought powerful high-performance cars such as Mercedes-Benz

300SL. It was built on compact and stylized lines, and was capable of 230 kmph (144

mph).This was the Indian automobile history, and today modern cars are

generally light, aerodynamically shaped, and compact.

Facts & Figures

The automobile industry in India is on an investment overdrive. Be it passenger car or

two-wheeler manufacturers, commercial vehicle makers or three-wheeler companies -

everyone appears to be in a scramble to hike production capacities. The country is

expected to witness over Rs 30,000crore of investment by 2010.

Hyundai will also be unmasking the Verna and a brand new diesel car. General Motors

will be launching a mini and may be a compact car.

Most of the companies have made their intentions clear. Maruti Udyog has set up the

second car plant with a manufacturing capacity of 2.5lakh units per annum for an

investment of Rs 6,500 Crore (Rs 3,200 Crore for diesel engines and Rs 2,718 Crore for

the car plant itself).

Hyundai and Tata Motors have announced plans for investing a similar amount over the

next 3 years. Hyundai will bring in more than Rs 3,800 Crore to India.

Tata Motors will be investing Rs 2,000 Crore in its small car project.

General Motors will be investing Rs 100 Crore, Ford about Rs 350 Crore and

Toyota announced modest expansion plans even as Honda Siel has earmarked Rs

11
3,000Crore over the next decade for India - a sizeable chunk of this should come by 2010

since the company is also looking to enter the lucrative small car segment.

.Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors

have each announced well over Rs 1,000 Crore of investment. Mahindra &

Mahindra’s joint venture with International Trucks is expected to see an infusion of at

least Rs 500 Crore . Industry performance in 2008-09

The Indian automotive market managed to stand up to the vagaries of the economic

meltdown to show slightly growth during fiscal 2008-09. Overall vehicle sales at

97.23lakh grew 0.71 per cent from 96.54lakh units in 2007-08.

When major automotive markets reported a 30-40 per cent decline, only a handful of

countries managed to show growth. A few months ago, India was looking at negative

growth but has turned around. It is actually better than expected.

Passenger vehicle sales at 15.51lakh registered flat growth while commercial vehicle

sales showed a 21 per cent drop.

SIAM has a positive outlook for the current financial year. While it foresees a 7-8 per

cent growth for the commercial vehicle segment, the industry body predicts a 3-5 per cent

growth for passenger vehicles

The passenger vehicle market has weathered the downturn largely due to market leader

Maruti Suzuki which holds 48 per cent of the market. The compact car giant clocked

7.22lakh units for 2008-09. Closest rival Hyundai Motor India sold 2.44lakh cars, a

growth of 13 per cent.

Most premium carmakers saw volumes shrink last fiscal. Toyota Kirloskar Motor’s

numbers fell 15 per cent to 46,892 units while Ford India’s sales were down 17 per cent

12
to 27,976 units. Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while

General Motors India was down 8 per cent to 61,526 units.

Among commercial vehicle makers, all major players saw substantial fall in volumes.

Market leader Tata Motors with a 60 per cent plus share, showed 22 per cent drop in

numbers at 2.34 lakh units while Ashok Leyland showed 37 per cent drop at 47,632.

Either’s sales volume fell 37 per cent at 17,341 units and Force Motors was down 28 per

cent at 7,819 units. “The freight movement is unlikely to improve this fiscal which will

impact truck sales.

13
 1.2 INDUSTRY PROFILE

Indians have emerged as avid car enthusiasts sporting their prized possessions as status

symbols and speed machines. Foreign car companies have discovered the Indian

consumer as well as the R & D potential in the Indian technical fraternity and are setting

up manufacturing plants right and left across the country at lower costs. The Indian

automobile industry is currently experiencing an unprecedented boom in demand for all

types of vehicles. This boom has been triggered primarily by two factors:

(1) increase in disposable incomes and standards of living of middle class Indian families

estimated to be as many as four million in number; and

(2) The Indian government's liberalization measures such as relaxation of the foreign

exchange and equity regulations, reduction of tariffs on imports, and banking

liberalization that has fueled financing-driven purchases.

Industry observers predict that passenger vehicle sales will triple in five

years to about one million, and as the market grows and customer's purchasing abilities

rise, there will be greater demand for higher-end models which currently constitute only a

tiny fraction of the market. These trends have encouraged many multinational automakers

from Japan, U. S. A., and Europe to enter the Indian market mainly through joint ventures

with Indian firms.

India is increasingly becoming a global automotive hub both for the vehicles and

component industry. India is fast integrating itself into the world economy and open to

international automotive companies, who are increasingly investing in India.

14
The Indian automotive and component industry is looking to increase the quality of

production from existing levels, to develop new products and to increase exports. In the

long run India is well set to become a key market for automotive and component

manufacturers in terms of local demand and as a base for export.

15
 Indian Automobile Industry

Automobile Industry in India is still in its infancy but growing rapidly. The opportunities

in the automobile industry in India are attracting big names with the big purse and they

are investing vigorously in infrastructure, design and development, and marketing.

Automobile industry in India is today poised for the big leap.

i. India is the 2nd largest two wheeler manufacturer in the world

ii. Second largest tractor manufacturer in the world

iii. 5th largest commercial manufacturer in the world

iv. 3rd largest car market in Asia, surpassing China in the process

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

exchequer & is a driver of product and process technologies, and has become a excellent

manufacturing base for global players, because of its

i. high machine tool capabilities

ii. Extremely capable component industry

iii. Most of the raw material locally produced

iv. Low cost manufacturing base

v. Highly skilled manpower

vi. Special capability in supplying large volumes

16
Domestic and Foreign Vehicle Manufacturers:

Passenger Vehicles

The main domestic manufacturers of passenger vehicles are as follows:

i. Maruti Udyog

ii. Tata / Telco

iii. Mahindra / Mahindra

iv. Hindustan Motors

Foreign competitors manufacturing locally including Hyundai, Ford, General Motors,

Honda, and Toyota.

Car demand has seen a turnaround since mid 2001 thanks to heavy discounts and

cheaper finance. A large number of new models, both locally assembled and

imported, have also revitalized the market.

In terms of volumes:

i. The A/B segments are where India’s strength and future lies. The A/B segment

accounts for over 65% of the total passenger vehicles produced. Competition in

this segment is stiff with Maruti the market leader with around 55% market share.

New models from Telco (Indica), Hyundai (Santro) and Fiat (Palio) however are

eroding Maruti’s long standing dominance in this segment.

ii. The mid / luxury range is developing with the introduction of Ford (Ikon),

Hyundai (Accent/Sonata) and Skoda (Octavia), although the volumes are not

significant.

17
 iii. The UV segment remains sluggish with growth at just over 1%. The clear market

leader, Mahindra (44% market share) posted increased sales of 9% in the first 3

quarters of 2002/03. Toyota and Telco domestic UV business remains flat.

Commercial Vehicles

The main Indian companies in the Commercial Vehicle segment are:

i. TATA Engineering and Locomotive Company (TELCO)

ii. Ashok Leyland

iii. Bajaj Tempo Ltd

iv. Eicher Motors Ltd

v. Swaraj Mazda

There is only one international company currently manufacturing CVs in India, Volvo but

again volumes are not large. Other global players are active, although in partnership with

one of the domestic manufacturers E.g.:- IVECO (manufacturing their range of trucks in

association with Ashok Leyland.

There has been a significant turn around in this segment over the last 18 months with over

30% growth being seen in terms of both production and sales.

This sector has received a huge boost with India’s massive demand from the

infrastructure sector (particularly roads), cyclical fleet replacement by fleet owners and an

upturn in the cement and steel sectors.

18
 INDUSTRY INVESTMENT

According to CBN News, India is an attractive destination for global auto giants like

BMW, General Motors, Ford and Hyundai who were setting base in India, despite the

absence of specific trade agreements.

Current Scenario
• On the cost front of Indian automobile industry, OEMs (Original Equipment

Manufacturer) are eyeing India in a big way, investing to source products and

components at significant discounts to home market.

• On the revenue side, OEMs are active in the booming passenger car market in

India.

Overview

Snippets

• By 2020, India is expected to witness over Rs 30,000 crore of investment.

• Maruti Udyog has set up the second car with an investment of Rs 6,500 crore.

• Hyundai will bring in more than Rs 3,800 crore to India.

• Tata Motors will be investing Rs 2,000 crore in its small car project.

• General Motors will be investing Rs 100 crore and Ford about Rs 350 crore.

• Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of

investment.

19
Why India

The economy of India is emerging. The following table shows the ranking of India in the

past four years.

Rank 2018 2017 2016 2015

1 China China China China

2 India Thailand Thailand Thailand

3 Thailand India USA USA

4 Vietnam Vietnam Vietnam Indonesia

5 USA USA India Vietnam

6 Russia Russia Indonesia India

7 Korea Indonesia Korea Korea

Indian Automobile Industry Growth

The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per

cent.

Current Scenario
• The Indian automobile industry crossed a landmark with total vehicle production

of 20 million units.

• Car sales was 8,82,094 units against 8,20,179 units in 2017-18.

• The two-wheeler market grew by 13.6 per cent with 70,56,317 units against

62,09,765 units in 2017-18.

20
 • Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against

3,18,430 units in 2017-18.

Overview

Snippets

• India, sourcing base for global auto majors.

• Passenger car and motorcycle segment is set to grow by 8-9%.

• The two-wheeler segment will clock 11.5% rise by 2017.

• Commercial vehicle to grow by 5.2 per cent.

• Estimated component market size is US$ 6.7 bn.

21
Facts & Figures

India, in auto sector, is turning to be a sourcing base for the global auto majors. The

passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming

couple of years, says the ICRA report. The industry is likely to maintain the growth

momentum picked up in 2016-17.

The ICRA's analysis points on the auto sector that the passenger car market in the

country was inching towards cars with higher displacements. The sports-utility-

vehicle (SUV) that was getting crowded everyday, would witness intense competition

as many SUVs had been competitively priced, the report said.

Honda, Suzuki, General Motors and Hyundai, the global automakers had already

launched their premium SUVs in the market to broaden their portfolio and create

product excitement in the segment estimated at about 10,000 unit annually.

In the two-wheeler segment, according to the report, the motorcycles would clock

11.5 per cent rise during 2005-2008 over its siblings-scooters and mopeds. Scooters

sales would decelerate and mopeds would also see the same. Overseas market would

present huge opportunities for the two-wheeler makers.

The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy

commercial vehicles market would rise at 5.5 per cent and sales of light buses and

trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a

growth at 4.6 per cent.

22
Indian Auto Market Growth for the year 2017-18

• The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as

against 78,97,629 units in 2017-18.

• The automotive industry crossed a landmark with total vehicle production of 10

million units.

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

was 8,82,094 units against 8,20,179 units in 2017-18.

• The growth of domestic passenger car market was 7.5 per cent

• Car exports stood at 1,70,193 units against 1,60,670 units in 2007-08.

• The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units

against 62,09,765 units in 2016-17.

• Motorcycles had the upward march, 17.1 per cent in domestic market touching

58,15,417 units against 49,64,753 units in 2016-2017.

• Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units

in 2016-2017.

• Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against

3,18,430 units in 2016-2017.

• Medium and heavy commercial vehicles managed a growth of 4.5 per cent against

23 per cent growth in the year ended March 31, 20.

• Light commercial vehicles sales growth was 19.4 per cent at 1, 43,237 units

against 1, 19,924 units in 2016-17.

• Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3, 07,862 units

in 2016-17.

23
Auto Component Market

The Indian auto parts industry is significantly fragmented with a large number of players

having a turnover of less than US$10 million per year. The industry directly employs

about 2,50,000 people and has an annual turnover over US$ 56.3 billion.

• Estimated market size - US$ 6.7 bn

• Estimated market size by 2012 - US$ 17 bn

• Projected CAGR - 15%

Note: Nearly two-thirds of the auto component production is consumed directly by

Original Equipment Manufacturers (OEMs).

Market Advantage

• Fast paced urbanization to rise from 28% to 40% by 2020.

• Upward migration of household income levels.

• Middle class expanding by 30-40 million every year.

• Growing working population.

24
 INDIAN AUTOMOBILE COMPANIES

India is the 11th largest Passenger Cars producing countries in the world and 4th largest

in Heavy Trucks.

Current Scenario
• Hero Honda is the largest manufacturer of motorcycles.

• Hyundai Motors India is the second largest player in passenger car market.

• Sundram Fasteners, Sundaram Clayton, Bharat Forge and Rico Auto supplies

components to global majors like Ford, General Motors and Land Rover.

• Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer

in the world.

Overview

Snippets

• In 1980s Hindustan Motors (HM) was leading car manufacturer in India.

• HM is popular with its Ambassador model.

• In 1970s, Sanjay Gandhi, son of Indira Gandhi envisioned "People's Car."

• Maruti Udyog Ltd. was set up to manufacture budget cars.

• In 1993 foreign auto makers entered the Indian market.

Facts & Figures

The onset of automobile industry in India saw companies like Hindustan Motors, Premier

Automobiles and Standard Motors catering to the manufacture of automobiles for Indian

customers. The era, 1950s - early 1990s was known as 'license raj,' when India was closed

to the world and imports. Hindustan Motors (HM) was the leader in car manufacturing

and sales until the 1980s, when the industry was opened up from protection. HM, joint

25
venture with Mitsubishi produced Lancer and Pajero, but is best known for its own

model, Ambassador.

Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi,

envisioned the manufacture of an indigenous, cost-effective, low maintenance compact

car for the Indian middle-class. The cabinet passed a unanimous resolution for the

development and production of a "People's Car." It was christened Maruti Limited.

However, the company as Maruti Udyog Ltd. matured only after the death of Sanjay

Gandhi. The Maruti800 car went on sale in 1983. By 1993 it sold up to 1,96,820cars

1991, the liberalisation of the Indian economy opened the market for foreign automobile

makers to venture in India. The license raj ended in 1993 and many foreign players

entered the Indian market by way of Joint ventures, collaborations or wholly owned

subsidiary.

26
GLOBAL PLAYERS IN INDIA

Segments Companies

Cars/ SUVs • Suzuki • Daimler-Chrysler

• Honda • Skoda

• Toyota • Fiat

• Mitsubishi • Hyundai

• GM • Tata

• Ford • M&M

Two-wheelers • TVS • Yamaha

• Hero Honda • Kinetic

• Bajaj Auto • LML

CVs • Tata • Swaraj Mazda

• Ashok Leyland • Mahindra & Mahindra

• Tatra • Volvo

• Eicher-Mitsubishi

Tractors • Escorts • New Holland

• M&M • ITL-Renault

• L&T • John-Deere

• Punjab Tractors • Steyr

27
Manufacturing Hub in India:

Company Particulars

Hyundai Export Base for Small Cars.

Skoda Hub for exports of cars to neighbouring countries.

Ford Exporting CKDs of Ikon to South Africa & other countries.

Mitsubishi & Hub for 125 cc Motorcycles.

Yamaha

Maruti Suzuki Exports cars to EU.

Honda Hub for two-wheelers exports.

Manufacturing Hub for Components:

Company Particulars

Toyota Motor Global Hub for Transmission

Daimier Chrysler Sourcing more than 70 million Euro

Ford Full Fledged Component Sourcing Team

Fiat Sourcing Components.

28
 PART - 2

CHAPTER - II

COMPANY PROFILE

29
 2.1 ORIGIN OF THE ORGANIZATION

In 1970 , Sanjay Gandhi the son of Indira Gandhi envisioned the manufacture of an

indigenous , cost effective , low maintenance compact car for the Indian middle class .

Indira Gandhi’s cabinet passed a unanimous resolution for the development and

production of a people’s car. Sanjay Gandhi’s company was christened Maruti limited.

The name of the car was chosen after a Hindu deity named Maruti Ltd.

That time Hindustan Motors’ Ambassador was the chief car and the company had come

out with a new entrant the premier Padmini that worked slowly gaining a part of the

market share dominated by the ambassador. For the next ten years the Indian car market

had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983.

Sanjay Gandhi was awarded the exclusive contract and license to design, develop and

manufacture the “People’s Car.” These exclusive rights of production generated some

criticism in certain quarters, which was directly targeted at Indira Gandhi. Over the next

few years the company was sidelined to Bangladesh liberation war and emergency.

In the early days under the powerful patronage of Sanjay Gandhi the company was

provided with free land, tax breaks and funds. Till the end of 1970 the company had not

started the production and a prototype test model was welcomed with criticism and

skepticism. The company went into liquidation IN 1977. The media perceived it to be

another area of growing corruption. Unfortunately Maruti’s started to fly only after the

death of Sanjay Gandhi, when Suzuki motors joined the government of India as a joint

venture partnered with 50% share. After his death Indira Gandhi decided that the project

should not be allowed to die. Maruti’s entered into this collaboration with Suzuki motors.

30
The collaboration heralded a revolution in the Indian car industry by producing the

maruti-800. It created a record of taking 13 months time to go from design to rolling out

cars from a production line.

The production of Maruti-800 in 1983 marked the beginning of a revolution in the Indian

automobile industry. It brought in the latest technology of that time more fuel efficiency

and lower prices that led to the creation of a huge market for all car segments as the

Indian, middle class grew in size. This in turn brought in more players in this segment. A

number of auxiliary car parts making units were set up as more car manufacturers realized

it was more cost effective to make their car parts in India rather than importing them.

Maruti’s major influence was in helping the component industry in the country because of

its emphasis on localization and indigenization. As in the beginning that sector hadn’t

grown much Maruti’s had to start dozens of joint ventures with Indian entrepreneurs. It

got them from foreign collaborations that led to collaborations for other manufacturers so

that over a period of time the whole component industry was able to upgrade itself and

improve its quality who had given their income leading to major existing export potential

vehicle components. It also brought in better methods of financing that allowed more

people who given their income levels could not afford to buy a car on their own, to buy

cars.

31
It still remains the leader not only in the terms of market share but also in customer

satisfaction surveys. It has consistently topped J.D. power quality surveys, including

2005. By the year 1993 the company had sold 1, 96,820 cars. By March 1994 it produced

1 million vehicles becoming the first Indian company to cross the 2 million mark in

October, 1997 and rolled out 4 millionth vehicles as Alto-LX .Then it introduced Wagon-

R followed by Swift . Swift has been a great success in the market .In 2007 Maruti came

up with SX4 and Grand Vitara.

32
 WHY MARUTI SUZUKI

The Quality Advantage

A car is an engineering product, only as good as the technology used to make it. Actual users of

our technology are saying something very clearly Maruti Suzuki is No.1 in quality:

Maruti Suzuki owners experience fewer problems with their vehicles than any other can

manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the

premium compact car segment and the Esteem in the entry level mid-size car segment

across 9 parameters.

The J.D. Power APEAL Study 2004 proclaimed the Wagon R. No. 1 in the premium compact car

segment and the Esteem No.1 in the entry level mid-size car segment. This study measures owner

delight in terms of design, content, layout and performance of vehicles across 8 parameters.

Maruti Suzuki has a sales network of 307 state-of-the-art showrooms across 189 cities*, with a

workforce of over 6000 trained sales personnel to guide our customers in finding the right car.

Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D.

Power SSI study 2004.

The SSI study measures sales satisfaction across 6 parameters: deal received, paperwork, dealer

facility, salesperson, delivery timing and delivery process. Maruti Suzuki has not only got the

No.1 nameplate in the J.D. Power SSI study 2004, but also ranked way above the industry average

(Maruti Suzuki was at 784 while industry average was at 760). What is significant is that it was

ranked above Skoda, Ford, Chevrolet, Mitsubishi and Hyundai.

To be really happy with the car you own, it should have a reliable service network at hand and

within easy reach. Their 1036 city strong service network is equipped to service 20,000 vehicles

a day. No wonder Maruti Suzuki has been awarded the No.1 nameplate in customer satisfaction in

India for the fifth year in a row, a feat unprecedented for any automobile market leader in the

world.

33
In the J.D. Power CSI study 2004, Maruti Suzuki scored the highest across all 7 parameters: least

problems experienced with vehicle serviced, highest service quality, best in-service experience,

best service delivery, best in-service experience, most user-friendly service and best service

initiation experience.

In fact, 92% of Maruti Suzuki owners feel that work gets done right the first time during

service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners

would probable recommend the same make of vehicle, while 90% owners would probable

repurchase the same make of vehicle.

A BUYING EXPERIENCE LIKE NO OTHER

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities,

with a workforce of over 6000 trained sales personnel to guide our customers in finding

the right car. Our high sales and customer care standards led us to achieve the No.1

nameplate in the J.D. Power SSI Study 2004.

QUALITY SERVICE ACROSS 1036 CITIES

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7

parameters: least problems experienced with vehicle serviced, highest service quality,

best in-service experience, best service delivery, best service advisor experience, most

user-friendly service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service.

The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would

probably recommend the same make of vehicle, while 90% owners would probably

repurchase the same make of vehicle.

34
ONE STOP SHOP

At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it

is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to

provide a single-window solution for all your car related needs.

THE LOW COST MAINTENANCE ADVANTAGE

The acquisition cost is unfortunately not the only cost you face when buying a car.

Although a car may be affordable to buy, it may not necessarily be affordable to

maintain, as some of its regularly used spare parts may be priced quite steeply. Not

so in the case of a Maruti Suzuki. It is in the economy segment that the

affordability of spares is most competitive, and it is here where Maruti Suzuki

shines. The recent Auto car Survey conducted in August 2004 bears testimony to

this fact. In the Maruti Suzuki stable, the Omni has the lowest aggregate cost of

spares followed by the Maruti-800. The Maruti-800 has the cheapest spares of any

Indian car with a basket of just Rs. 23,422. In the Lower Mid-size segment as well,

price-consciousness is very high, where the cars have to be not only affordable on

purchase price but also need to combine quality, drivability and have comfortable

interiors. In this segment, the Maruti Suzuki Versa has scored particularly well

with the lowest cost of spares in the segment. In the Upper Mid-size segment, the

Maruti Suzuki Baleno has the segment's lowest prices on a majority of the spares.

35
LOWEST COST OF OWNERSHIP

To be really happy with the car one owns, it should be easy on the pocket to buy and to run-which

is why the cost of ownership is so important. And here again, a Maruti Suzuki is a clear winner, as

shown by the recent J.D.Power CSI study 2004. It is clear that a Maruti Suzuki delights you even

when you run it for years. The 6 highest satisfaction ratings with regard to cost of ownership

among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and

Omni. They are proud to have the lowest cost of operation / km (among petrol vehicles) - the top

5 models are all Maruti Suzuki models: Maruti 800, Alto, Zen, Omni and Wagon R.

EMPLOYEE QUALITY MEASURES

Kaizen is based on the concept of making incremental improvements in our products. It

incorporates a series of continuous small and simple improvements, which aim at

involving employees at all levels.

The Suggestion Scheme is based on the same principle. Under this scheme, employees

are encouraged to make suggestions for improvement in any area of our operation. Over

50,000 suggestions are received from employees every year.

Maruti has won the First place in "Excellence in Suggestion Scheme Contest 2003",

which is the 6th consecutive award won in as many years. This contest is organized by

Indian National Suggestion Schemes Association (INSSAN). Since 1998 Maruti has won

this award 10 times.

"Quality Circles" are groups of five to eight members from a particular work area who

work as a team to identify priorities and solve work related problems in the area.

We believe that it is this unwavering commitment to quality that will lead to the further

growth of the organization as competition increases.

36
ISO 9001:2000

At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into

the product". Technicians themselves inspect the quality of work. Supervisors educate

and instruct technicians to continually improve productivity and quality. The movement

of quality indicators is reviewed in weekly meetings by the top management.

In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere

in the world to get an ISO 9000:2000 certification. AV Belgium, global auditors for

International Organization for Standardisation(ISO), certified Maruti after a four day long

audit, covering varied parameters like Customer Focussed organisation, Leadership,

Involvement of people, Process approach, System approach to Management, Continual

improvement, etc.

37
In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality

assurance in production, installation, marketing and sales as well as after sales services.

We were also one of the first companies in the world to pioneer ISO 9000 certification for

our dealers.

In October 1993, MUL passed the Conformity Of Production (COP) Audit, which is

based on a European Union Directive. This authenticated our quality systems and

testing facilities for export to Europe.

Their emphasis on total quality has meant that today they are in a position to guide

vendors and dealers in establishing and consolidating their individual quality systems.

This commitment to quality has ensured a consistently satisfying product and world-class

sales and after-sales services.

TS16949:2002 - A new feather was added recently in Maruti’s cap in the field of

quality when the Quality Management System of its Press Shop & associated functions

(collectively termed as Press Function) got certification for conformance to the

requirements of TS16949:2002 standard.

The need for TS certification of Press Function had its genesis in the prestigious project

that Maruti earned for the supply of stamped panels to General Motors India for one of its

forthcoming models.

As a part of Quality system requirements, GM requires all its suppliers to be certified to

either ISO TS 16949 or QS 9000.

These standards address Quality System requirements, which are particularly specific to

the automotive industry and requires an organization to be in compliance with ISO 9000

systems as a basic requirement. However, whereas QS 9000 would become defunct and

cease to exist after Dec 2006, TS 16949 is going to be the standard of the future.

38
The TS 16949 standard, brought out by ISO in the year 1999, is an extension of the ISO

9001:2000 standard that prescribes Quality management system requirements that are

specifically applicable to the automotive industry.

TS 16949 has gained high popularity and almost all major automobile players across the

globe including GM, Ford, Daimler Chrysler, Nissan, Honda are embracing & promoting

it.

ISO

9001:2000

39
 2.2 VISION, MISSION & QUALITY POLICY

The Company Mission:

To provide a wide range of modern, high quality fuel efficient vehicles in order to meet

the need of different customers, both in domestic and export markets.

The Company Vision:

We must be an internationally competitive company in terms of our products and

services. We must retain our leadership in India and should also aspire to be among the

global players.

Their focus is on:

• Building a continuously improving organization adaptable to quick changes

• Providing value and satisfaction to the customer

• Aligning and fully involving all our employees, suppliers and dealers to face

competition

• Maximizing Shareholder's value

• Being a responsible corporate citizen

40
 2.3 GROWTH AND DEVELOPMENT OF THE

ORGANIZATION

Partner for the Joint venture

Pressure started mounting on Indira and Sanjay Gandhi to share the details of the

progress on the Maruti Project. Since country's resources were made available by mother

to her son's pet project. A delegation of Indian technocrats was assigned to hunt a

collaborator for the project. Initial rounds of discussion were held with the giants of the

automobile industry in Japan including Toyota, Nissan and Honda. Suzuki Motor

Corporation was at that time a small player in the four wheeler automobile sector and had

major share in the two wheeler segment. Suzuki's bid was considered negligible.

Industrial relations

For most of its history, Maruti Udyog had relatively few problems with its labour

force. Its emphasis of a Japanese work culture and the modern manufacturing process,

first instituted in Japan in the 1970s, was accepted by the workforce of the company

without any difficulty.

Authorized service stations

Maruti is one of the companies in India which has unparalleled service network.

To ensure the vehicles sold by them are serviced properly, Maruti has 2628 listed

Authorized service stations and 30 Express Service Stations on 30 highways across India.

Service is a major revenue generator of the company. Most of the service stations

are managed on franchise basis, where Maruti trains the local staff. Other automobile

companies have not been able to match this benchmark set by Maruti. The Express

Service stations help many stranded vehicles on the highways by sending across their

repair man to the vehicle.

41
Maruti insurance

Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the

National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram.

The service was set up the company with the inception of two subsidiaries Maruti

Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited

This service started as a benefit or value addition to customers and was able to

ramp up easily. By December 2005 they were able to sell more than two million

insurance policies since its inception.

Maruti Finance

To promote its bottom line growth, Maruti launched Maruti Finance in January

2002. Prior to the start of this service Maruti had started two joint ventures Citicorp

Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to

assist its client in securing loan.[15] Maruti tied up with ABN Amro Bank, HDFC Bank,

ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this

venture including its strategic partners in car finance. Again the company entered into a

strategic partnership with SBI in March 2003[16] Since March 2003, Maruti has sold over

12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in

166 cities across India

42
Maruti Driving School

As part of its corporate social responsibility Maruti Udyog launched the Maruti

Driving School in Delhi. Later the services were extended to other cities of India as well.

These schools are modelled on international standards, where learners go through

classroom and practical sessions. Many international practices like road behaviour and

attitudes are also taught in these schools. Before driving actual vehicles participants are

trained on simulators.

Exports

Maruti Suzuki has helped India emerge as the fourth largest exporter of

automobiles in Asia. Shown here is Maruti Gypsy in Malta.

Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its major

focus on exports and it does not operate in the domestic Indian market. The first

commercial consignment of 480 cars were sent to Hungary. By sending a consignment of

571 cars to the same country Maruti crossed the benchmark of 300,000 cars. Since its

inception export was one of the aspects government was keen to encourage. Every

political party expected Maruti to earn foreign currency.

43
 2.4 PRESENT STATUS OF THE ORGANIZATION

DEFINITION : A Balance sheet may be described as a statement of the financial

position of a concern at a given data. The financial position of a concern is revealed by its
assets on a given data and its liabilities on that date. Excess of assets over liabilities
represents Capital, such excess may be taken as an indicator of the financial soundness of
a concern.
Balance sheet Mar ' 18 Mar '17 Mar ' 16 Mar ' 15 Mar ' 44
Sources of funds
Owner's fund
Equity share capital 144.50 144.50 144.50 144.50 144.50
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 8,270.90 6,709.40 5,308.10 4,234.30 3,446.70
Loan funds
Secured loans 0.10 63.50 71.70 307.60 311.90
Unsecured loans 900.10 567.30 - - -
Total 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10
Uses of funds
Fixed assets
Gross block 7,285.30 6,146.80 4,954.60 5,053.10 4,566.70
Less : revaluation reserve - - - - -
Less : accumulated depreciation 3,988.80 3,487.10 3,259.40 3,179.40 2,735.90
Net block 3,296.50 2,659.70 1,695.20 1,873.70 1,830.80
Capital work-in-progress 736.30 238.90 92.00 42.10 74.90
Investments 5,180.70 3,409.20 2,051.20 1,516.60 1,677.30
Net current assets
Current assets, loans &
3,190.50 3,956.00 3,870.70 3,097.40 2,144.40
advances
Less : current liabilities &
3,088.40 2,779.10 2,184.80 1,843.40 1,840.60
provisions
Total net current assets 102.10 1,176.90 1,685.90 1,254.00 303.80
Miscellaneous expenses not - - - - 16.30

44
 written
Total 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10
Notes:
Book value of unquoted
5,169.60 3,398.10 2,040.10 1,505.50 1,666.20
investments
Market value of quoted
219.50 270.40 289.80 200.10 150.90
investments
Contingent liabilities 2,734.20 2,094.60 1,289.70 893.60 1,119.80
Number of equity
2889.10 2889.10 2889.10 2889.10 2889.10
sharesoutstanding (Lacs)

Interpretation : The balance sheet amount has increased gradually from the year 2014-
2018 as 3,903.10 to 9,315.60 .

Analysis : This indication shows the company operations reach in wide in facing the
market efficiently.

45
 PROFIT & LOSS ACCOUNT:
Definition: Net profit represents the excess of gross profit plus other revenue incomes
over sales expense including sales costs and other expenses. The debit side of P&L a/c
shows the expenses and the credit side the incomes. If the total of the credit side is more,
it will be net profit. And if the debit side happens to be more, it would be net loss.

P&L Mar ' 18 Mar '17 Mar ' 16 Mar ' 15 Mar ' 44
18,066.8
Operating income 14,806.40 12,197.90 11,046.30 9,449.50
0
Expenses
13,622.0
Material consumed 11,063.70 9,223.70 8,508.50 7,033.50
0
Manufacturing
670.60 489.80 359.60 273.80 219.40
expenses
Personnel expenses 356.20 288.40 228.70 196.00 177.90
Selling expenses 560.20 499.90 356.00 369.90 666.20
Adminstrative
326.30 274.50 170.60 150.20 112.90
expenses
Expenses capitalised -19.80 -14.30 -6.70 -22.40 -12.80
15,515.5
Cost of sales 12,602.00 10,331.90 9,476.00 8,197.10
0
Operating profit 2,551.30 2,204.40 1,866.00 1,570.30 1,252.40
Other recurring
456.10 361.10 268.10 218.90 198.90
income
Adjusted PBDIT 3,007.40 2,565.50 2,134.10 1,789.20 1,451.30
Financial expenses 59.60 37.60 20.40 36.00 44.90
Depreciation 568.20 271.40 285.40 456.80 494.90
Other write offs - - - 16.30 72.40
Adjusted PBT 2,379.60 2,256.50 1,828.30 1,280.10 839.10
Tax charges 763.30 705.30 560.90 446.50 227.70

Adjusted PAT 1,551.20 1,267.40 833.60 611.40

1,616.30
Non recurring items 37.90 -23.00 -83.70 -31.40 -151.90

46
Other non cash
76.60 33.40 5.40 51.40 82.60
adjustme
Reported net profit 1,730.80 1,561.60 1,189.10 853.60 542.10
Earnigs before
7,368.10 5,947.10 4,631.20 3,611.00 2,878.00
appropriation
Equity dividend 144.50 130.00 101.10 57.80 43.30
Preference dividend - - - - -
Dividend tax 24.80 21.90 14.20 8.20 5.60
Retained earnings 7,198.80 5,795.20 4,515.90 3,545.00 2,829.10

Interpretation : The operating and non operating expenses and income are increasing
gradually from the year 2014-2018

Analysis: This trend shows that company\s productivity is increasing yearly to extend its
market operations

47
 2.5 FUNCTIONAL DEPARTMENTS OF THE

ORGANIZATION

FUNCTIONAL DEPARTMENTS
1. Human Resources Department

2. Finance Department

3. Marketing & Sales Department

4. Purchase Department

5. Production Department

6. Health & Safety Department

GENERAL RESOURCES

1. Audio conferencing services

2. Recruiting resources

3. Look & Style Arena

4. Competitive product intelligence

5. Global Information Management (GIM)

6. Creative design + Usability

7. Innovation

8. IT Strategic Research & Advisory Services (SRS)

9. Telecommunication

48
MANAGEMENT RESPONSIBILITY

RESPONSIBILITY DESCRIPTION

1. Responsibility for executive director-

➢ Ultimately responsibility for the quality of the in all fields.

➢ Future planning and giving orientation to the business.

➢ Responsibility for overall quality policy.

2. Responsibility of G.M. -

➢ Responsibility for the quality of the company in fields.

➢ To improve quality manual and procedure.

➢ Talking part of review meting.

➢ Planning strategies for vehicles sales spare part sales and customer satisfaction.

➢ Cost control and budgeting.

➢ Selling / forecasting (targets).

➢ Review customer complaints once a fort night.

➢ Chairing the management review.

➢ Sectioning adequate budget requirement.

➢ To implement management plans.

➢ To implement HRD programs.

49
3. Responsibility of Manager-

➢ Controlling quality system.

➢ Day-to-day administration.

➢ Dealership development activities as a whole.

FUNCTION OF VARIOUS DEPARTMENTS

A. Personal and administration:

➢ House keeping.

➢ Training of employment after identifying.

➢ Maintaining service records.

➢ Statutory complaints.

B. Sales:

➢ New vehicle sales and documentation.

➢ Procurement of vehicle.

➢ Co-ordination with workshop.

➢ Receipt of new vehicle.

➢ Customer complaints and follow up.

➢ Field sales.

➢ Training.

➢ Managing sales force.

50
Marketing:

➢ Marketing

➢ Identifying opportunity.

➢ Marketing strategies and programs.

➢ Planning and Promotion.

➢ Market Research.

➢ Advertising and Organization events.

1. Service and repair (Workshop)

➢ Controlling quality system.

➢ Review customer complaints and analyze defects in vehicle reporting to Wonder

Cars Pvt. Ltd. and time of first service and taking preventive actions.

➢ Opening job card.

➢ Carry out services and repairs as per laid out procedures and instructions in check

sheet and manuals.

➢ Final inspection of service vehicle.

➢ Deliver of vehicle to the customer.

➢ Warranty handling.

➢ Simple audit of serviced vehicle.

➢ Post services follow up.

➢ Customer’s complaints handling.

➢ Maintenance of equipments and facilities.

➢ Pre- delivery inspection.

51
2. Spare part section:

➢ Planning forecasting and inventory control.

➢ Procurement of parts.

➢ Proper stocking and identification.

➢ Workshop issue.

➢ Counter sales.

3. Finance activities:

➢ Bank transaction.

➢ Expense control.

➢ Documentation.

➢ Computerization

52
2.6 ORGANIZATION STRUCTURE AND ORGANIZATION

CHART

ORGANISATION STRUCTURE

Maruti Udyog Limited has a flat organisation structure with a maximum of three levels.
The Organisation Structure of Maruti Udyog Limited is follows:-

MANAGING DIRECTOR

Manufacturing Financial General

Director Controller Manager

DGMs/AGMs DGMs/AGMs DGMs

/AGMs

Managers / AM Managers /AM Managers /

AM

Engineers and

Sr. Executives Sr. Executives Sr. Executives

Jr. Executives Jr. Executives Jr. Executives

53
 Company Board Of Directors

Mr.Shinzo Nakanishi Managing Director (M.D) and Chief

Executive Officer (C.E.O)

Mr. R.C. Bhargava Chairman

Mr.Maninder Singh Banga Director

Mr.AmalGanguli Director

Mr.D.S.Brar Director

Mr. Keiichi Asai Director

Mr. Osamu Suzuki Director

Mr.ShujiOishi Director

Ms.PallaviShroff Director

Mr. Kenichi Ayukawa Director

Mr. Tsuneo Ohashi Director and Management Executive

Officer

54
 2.7 PRODUCT AND SERVICE PROFILE OF THE

ORGANIZATION/ COMPETITORS

PRODUCT PROFILE:-

The Wonder Cars Pvt. Ltd. is handling sales of Maruti Vehicles. It includes the several

Maruti models. The name, main features, launching year and punch line of all models are

as follows:-

1. OMNI [ FITS ALL]

Launching in 1984.

The Maruti Omni powered by Suzuki, the world leader in compact car technology.

This car is having 796cc, 35bhp, 3 cylinders with 6 valves. Fuel tank capacity is 36 liters.

Having ground clearance 165mm and turning radius 4.1m. The Omni is fuel-efficient ,

comfortable and needs very little maintenance. The Omni has taken a technology leap. It

now comes with a MPFI engine. Making it confirm to the stringent Euro-II emission

norm. It is used so extensively as an ambulance, a school van, courier van, a mobile store,

a florist’s van, a staff car, a light goods carrier etc. Recently the Dual-Fuel option is

available in this car. Superb maneuverability because of sliding doors and very less

turning radious.

55
2. BALENO [ OWNER’S CHOICE ]

Launching in 1999.

Baleno is a luxurious travel car. A twin as doubles the luggage space, large cabin space

with flexi seating option that can send up to 5 people. Having fuel tank capacity 51 liters,

170mm ground clearance, turning radious 4.9m. Having 1590cc, All aluminum, 4

cylinders with16 valves and 91 BHP@5500

RPM and torque 130.5Nm @ 3000rpm, engine of Baleno smooth power delivery quick

acceleration in short a try technology master piece.

3. WAGONR [ For The Smarter Race ]

Launching in 2000.

The WagonR is tall boy design because the roof height is 1690mm. This car is having

1061cc, 64bhp, 4 cylinders with 16 valves. Fuel tank capacity is 35 liters. Having ground

clearance 165mm and turning radius 4.6m. This car is having 32-Bit Electronic control

module (ECM) because of that highly integrated ECM car is having better control and

high efficiency.

4. ALTO [ Let’s Go]

Launching in 2000.

It comes in 3 variants i.e. std Alto, Alto-LX, Alto-LXi. is thundering MPFI engine

with 4 values per cylinder and 16 bit computer will tackle all challenges meets smooth

performance. This car is having 796cc, 47bhp, 3 cylinders with 12 valves. Fuel tank

capacity is 28 liters. Having ground clearance 160mm and turning radius 4.6m. Better

fuel efficiency and low maintenance due to that this car is highly affordable. This car is

56
mainly preferred by the first buyers and economy class peoples .Raw power meets

optimal fuel efficiency high tensile steel door beams guards against Collission impact 8-

inch Booster Assisted Breaks in front provide for controlled stooping

power. The AC is deal for India’s tropical climate and cool the interiors in seconds.

5. SWIFT [YOU’RE THE FUEL ]

Launching in 2005.

This car is having very stylish and sporty look, so that it attracts young generation. This

car is having 1298cc, 87bhp, 4 cylinders with 16 valves. Fuel tank capacity is 43 liters.

Having ground clearance 170mm and turning radius 4.7m. The car design allow specious

interiors, ride comfort, better on-road handling and stability.

6. ZEN ESTILO [ SHAPE YOUR WORLD ]

Launching in 2006.

ESTILO means Stylish. This car is having very stylish look, very high comfort. It is

attracting Women market and young generation. This car is having 1061cc, 64bhp, 4

cylinders with 16 valves. Fuel tank capacity is 35 liters. Having ground clearance 165mm

and turning radius 4.6m. This car is having 32-Bit Electronic control module (ECM)

because of that highly integrated ECM car is having better control and high efficiency.

57
7. SWIFT DIESEL [ YOU’RE THE FUEL ! ]

Launching in 2007.

The Swift is newly launched by the Maruti Udyog Limited. This car is having very

stylish and sporty look, so that it attracts young generation. This car is having 1298cc,

87bhp, 4 cylinders with 16 valves. Fuel tank capacity is 43 liters. Having ground

clearance 170mm and turning radius 4.7m. The car design allow specious interiors, ride

comfort, better on-road handling and stability.

8. SX4 [ MEN ARE BACK ]

Launching in 2007.

The SX4 is newly launched by the Maruti Udyog Limited. This car is included in

luxurious car segment. This car is having 1586cc, 102bhp, 4 cylinders with 16 valves.

Fuel tank capacity is 50 liters. Having ground clearance 180mm and turning radius 5.3m.

It is having high cost because of high technical features like ABS (Anti-Lock Breaking

System), EBD ( Electronic Break Distribution ) system. Due to that this car is having high

luxury, comfort, safety so that price of this car is high.

58
 2.8 MARKET PROFILE OF THE ORGANIZATION

SWOT ANALYSIS OF MARUTI SUZUKI:

STRENGHS

• Bigger name in the market

• Trust of People
• Maruti Udyog Ltd. is the market leader for more than two decade.
• Has a great dealership chain in the market.
• Better after sales service
• Low maintenance cost of vehicle
WEAKNESSES

• Exports are not that good.

• Lesser diesel models in the market compare to others
• Global image is not that big
OPPORTUNITIES

• Great opportunities to go global with success of Swift and SX4All over

• Introduction of more diesel models. The diesel car segment is growing.
• Opportunity to grow bigger by entering into bigger car markets
• Already a market leader so great opportunity to be the king of market in every
stage of industry
THREATS

• Foreign companies entering market; so a bigger threat from MNCs.

• To the market share, as many big names are coming in the industry
• There is hardly any diesel models
• Rs. 1 lakh – Rs. 1.5 lakh car

59
CHAPTER - III

REASEARCH

METHODOLOGY

60
3.1 STATEMENT & INTRODUCTION OF THE RESEARCH

PROBLEM

The purpose of conducting this research is to get the actual idea about the experiences of

customers and their satisfaction level with Maruti Suzuki. What types of problem they

face after purchasing the vehicles. The purpose of conducting this research is also to find

out expectations of customers for Maruti Suzuki. Users were selected and then the

analysis was formed regarding the people’s beliefs, satisfaction and expectations about

the Maruti Suzuki.

This was basically the problem that was discovered to conduct this project i.e.

“Customer satisfaction survey for Maruti Suzuki.”

61
 3.2 Review of Literature

. A review of literature shows that researchers investigated the relationship between

attribute and overall customer satisfaction with Maruti Suzuki using different car and

nature of attributes. In addition, the results of these studies will empirically validate that

proposed attributes considerably affects overall customer satisfaction with Maruti Suzuki

car of service provided.

Rana and Lokhande (2013) study showed that in March 2008 Maruti Suzuki’s sales were

Rs.21221 crore which was more than March 2007 by Rs. 21.559. The industrial sales of

Maruti Suzuki in the year March 2008 were Rs.20070.9 crore which is 23.26% greater

than previous year. It concluded that in today’s scenario the success of company lies in

structuring and restructuring the marketing strategies and continuous innovation of

product and service.

Singh and Srivatava (2013) study showed various factors affecting customer satisfaction

towards Maruti Suzuki. Exceptional customer service results in greater customer

retention, which in turn results in higher profitability. Customer loyalty is a major

contribution to sustainable profit growth. Measuring customer satisfaction provides an

indication of how successful the organization is at providing products or services to the

marketplace. It also concluded that all the factors considered in the study have significant

effect on the overall satisfaction of the customers. It conducted that satisfaction levels for

pricing attributes (such as Car price, discounts and service charges) are generally lower

than product related attributes.

62
Ranjith and Snekalatha (2013) focused on the customer’s brand loyalty and satisfaction

towards Maruti car. Maruti Suzuki India Limited is India’s leading & largest passenger

car manufacturer which accounting for nearly 50 per cent of the total industry sales.

Customer loyalty is a major contribution to sustainable profit growth to achieve success.

This study found that Maruti Udyog Ltd has various brands of car, but majority of

respondent prefer Omni. They are satisfied with price, band, image, convenience,

appearance quality and require less maintenance cost.

Parthian and Rajendran (2014) study was carried on customer preference toward Maruti

Suzuki. Main aim of this study was to understand the mind of customers whether they

was eager and satisfied to handle. Even though most of the customers were satisfied with

present model and service, few customers were not satisfied about the facilities provided

by the car. If the Maruti car service providers give enough attention regarding this, they

can ensure a large level of customer preference.

Akhila and Thayyullathi (2015) in his study on customer satisfaction toward Maruti

Suzuki in Coimbatore found that majority of the respondents were using SUV (Sport

utility vehicle) type cars. They found that Maruti Suzuki cars were the best and fast

moving brands. There were increasing trend because of easy handling, safety, security

and high performance, which makes the advanced technologies to adopt new model.

Suganthi and Renuka (2016) focused on data collected through convenience sampling of

200 consumers of Maruti Suzuki Swift car users of Udumalpet Taluk. Later the data was

analysed with statistical tools like mean and the hypothesis was tested by using Chi-

Square analysis. Maruti Suzuki Swift is most preferred brand by the majority of the

63
customer. It is going to pose great challenges to other small cars in India. Most of the

customers are satisfied with the mileage and fuel efficiency of the car and they preferred

Maruti Suzuki Swift.

Willard Hom (2000) presents two broadly classified customer satisfaction models viz.

Macro-models, which place the customer satisfaction among a set of related constructs in

marketing research and Micro-models, which theorize the elements of customer

satisfaction. The paper also gives various models of customer satisfaction from the

perspective of the marketing research discipline.

Vavra, T.G. (1997) in his book suggests specific programmes to improve the

measurement of customer satisfaction in an organization. The author describes five

critical skills required for this task viz.sampling /customer-participant selection,

questionnaire design, interviewing /survey administration, data analysis, and quality

function deployment-building action plans.

Peyton, R.M. (2003) in their working paper submitted at the Allied Academies

International Conference presented a comprehensive review of the literature on various

Customer Satisfaction and Dissatisfaction (CS/D) theories proposed. The literatures are

specifically prior to the 1990s. This review focuses on the major components of the

decision-making process, also addresses the measurement-related issues relevant to this

body of literature.

64
 Relevant literatures pertaining to the present study on four wheeler automobile

industry are included in this chapter. The literatures are helpful for proper

understanding the four wheeler automobile industry and its various related

aspects. Review of literature is also helpful in effectively fulfilling the objectives for

which the research project has been undertaken.

➢ G.S. Dangayach and S.G. Deshmukh, in their study on ‘Advanced manufacturing

technologies: evidences from Indian automobile companies’ in International Journal of

Manufacturing Technology and Management, reports the findings of an exploratory

survey on ‘Advanced manufacturing technologies (AMT)’ administered in Indian

automobile companies. The objective of the survey is to assess the status of advanced

manufacturing technologies, identify advanced manufacturing technologies relevant to

Indian automobile sector companies, identify competitive priorities, and assess the degree

of investment in advanced manufacturing technologies. Responses from 68 companies are

analysed and presented.

➢ RNCOS industry in their study of Indian Automobile Sector provides a forecast and

analysis based on various macro- and microeconomic factors, sector and industry

specific databases, and an in-house statistical and analytical model. This model takes into

account the past and current trends in an economy, and more specifically in an industry,

to bring out an objective market analysis. In this research main topics covered are: Study

of the Indian automobile industry structure, Analysis of performance of industry sub-

segments and their future outlook, Understanding the Indian auto component market and

its growth aspects, Identification of future prospects for the Indian automobile industry.

65
➢ S. Saraswathi undertook a study on ‘Customer Satisfaction on Post-Sales Service with

Reference to Four-Wheeler Automobile Industry’ which reveals that the key to success of

automobile industry lies not only in having good products but also in being able to

provide the customer with the level of service they desire. Because of increasing

competitiveness in the Indian automobile industry, almost all automobile manufacturers

have invested valuable resources on customer satisfaction as a tool to understand the

needs and expectations of their customers. Increased presence of four-wheeler vehicles

throughout the country has created a growing need for providing service infrastructures

closer to the customers' homes or offices.

• Dr V Sumantran (Executive Director-Passenger Car Business Unit and Engineering

Research Centre at Tata Motors Limited during November 2011 to August 2012,

conducted a study on ‘The Indian Auto Industry & The Role of Dealers’ which

reveals that the global auto industry has been the subject of much analysis in recent

years. While global capacity creation proceeds at a good clip on one hand, continued

capacity creation in the face of sluggish sales have led to depressed levels of capacity

utilization. Today, the Indian auto industry is one of the largest industrial sectors

with a turnover that contributes to roughly 5 per cent of India's GDP. More

importantly, it contributes to employment of over 2 million people directly and

indirectly to another 10 million. The industry is important for national policy in that

it contributes 19 per cent of indirect taxes.

➢ Akie Takeuchi, Maureen Cropper and Antonio Bento in the Journal of Regional Sciences

published a paper on ‘The impact of policies to control motor vehicle emissions in

Mumbai, India’ which examines the impacts of measures to reduce emissions from buses,

cars, and four-wheelers in Mumbai, India. They have considered three possible policies:

66
 conversion of diesel buses to CNG, an increase in the price of gasoline and a tax on

vehicle ownership.

➢ In The Wall Street Journal, India Infoline Sector Reports published a report on

Automobile- Indian four Wheelers Industry which reveals that India is the second largest

manufacturer and producer of four-wheelers in the world. It stands next only to Japan and

China in terms of the number of four-wheelers produced and domestic sales respectively.

This distinction was achieved due to variety of reasons like restrictive policy followed by

the Government of India towards the passenger car industry, rising demand for personal

transport, inefficiency in the public transportation system etc

➢ Dr. Amit Kumar Dwivedi and Mr. Punit Kumar Dwivedi, in their article on Automobile

Sector: Industry Vs Indian Middle Class in Indian MBA concluded that that there are

great opportunities and possibilities in the automobile sector. But hike in the fuel price is

influencing the market of this industry.

There is a need of a very liberal policy for the fuel prices and requires a great good deal

with fuel supplying countries. Though, the performance of the industry is better instead

of high and unfavourable fuel policy.

The new launching of Tata's Nano 'One Lakh Car' which is also known as People's Car is

also a very good strategy to capture the middle class customers. Introduction of Nano and

Bajaj Lite will definitely affect the growth and sales volumes of cars which will also

affect the industry by reaching, catching the Indian middle class and fulfilment of their

own car need.

➢ Sunila George, Raghbendra Jha, Hari K. Nagarajan in their research paper on ‘The

Evolution and Structure of the four-wheeler Industry in India’ studied the evolution of the

67
 competitive structure of the two-wheeler industry in India. The evolution of the industry's

competitive structure is traced using Kendall’s Index of Rank Concordance and the

Evans-Karras test of convergence. The industry seems to be characterized by oligopoly

with the onset of economic reforms not making much difference to industrial structure.

Convergence of sales and capacity at the level of the industry is conditional while it is

absolute at the level of the segment.

➢ Dr A. Subbiah and S. Jeyakumar (Ph.D research scholar at PG and Research Department

of Commerce) in their market survey report on Automobiles: the Engines of Economic

Growth concluded that A sound transportation system plays a pivotal role in a country’s

rapid economic and industrial development. The well-developed Indian automotive

industry ably fulfils this catalytic role by producing a wide variety of vehicles. They also

studied Size and structure of the Indian automotive industry, production trends and

exports trends. They also concluded that the manufacturers must take necessary steps to

increase the production of automobiles in India. They should adopt latest technology and

introduce new models to face stiff competition from foreign manufacturers.

68
 CONSUMER PREFERENCE

Consumer Preference is a business term which is used to capture the idea of measuring

how satisfied an enterprise’s customers are with the organization Efforts in a market

place.

Every organization has customers of some kind. The organization provides products

(goods and services) of some kind to its customers through the mechanism of a

marketplace. The products the organization provides are subject to competition whether

by similar products or by substitution products. The reasons on organization is interested

in the satisfaction of its customers is because customers purchase the organization’s

products. The organization is interested in retaining its existing customers and increasing

the number of its customers.

By Fareena sultan:-Examines consumer preferences for forthcoming technological

innovations. Studies consumer response to different levels of technology over time.

Looks at preferences for existing and intermediate technologies when future ones are

expected. Focuses on technological consumer durables that are expected to evolve over

time. The primary contributions of this research are: an understanding of how consumer

preferences for a technology are affected by the time of adoption; an understanding of the

value to consumers of obtaining different levels of a technology, at different points in

time; and the utilization of parsimonious indices to assess consumer response to different

levels of technology over time. An empirical examination is conducted for high definition

television (HDTV). Using survey data, the study explores consumer preferences for

HDTV, and for interim television technologies. Managerial implications to aid product

design, and the timing of introduction of evolving technological innovations, are also

discussed.

69
 3.3 STATEMENT OF THE RESEARCH OBJECTIVE

1. To Study the preference of respondent while buying small cars of Maruti Suzuki.

2. To analyze the important factors which have impact on the buying behavior of the

customers in regards to purchase of cars.

3. To study the present status of the Maruti Suzuki.

4. To find out which model of Maruti Suzuki is more preferred.

5. To analyze the level of satisfaction of customer for small cars of maruti Suzuki.

70
 3.4 SCOPE OF STUDY

The customer is always right. This is incontrovertible. Customer belongs at the

heart of every business because without them there is no business. Without their money,
there is no exchange. Therefore, for any company, the customer is the starting point that
influence very move.
Marketing is based on this logic. It is process by which a company finds out what
its customers want and need, and then delivery it in a way that that makes as much profit
as possible.
Because marketing focuses on customers, the heart of every business and sources
of all income, it follows logically that marketing as a mere function of business to be
performed intermittently.
By focusing on different customers, a marketing orientation gives a company an
edge over those who focus more on different products, selling and the production.
Marketing opportunity arise when customer wants and need arise. There is no point in
trying to sell something for which there is no demand. The production process must be
informed by customer demand. Customer will not often buy just because it is exist.

Customers are satisfied when offered what are needs. In practice, they are not all
that easy to please. Marketing is also about predicting what customer will want and need
in the future. It is native have to think that customers needs and want remain constant,
adopting the customer-centered approach to a business will involve change.

71
 3.5 RESEARCH DESiGN

RESEARCH DESIGN

A research design is a statement or specification of the method and producers used for
acquiring the information needed for the solution of some specific problems. It provides
a scientific frame work for conducting a research.

Although research design may be classified by many criteria, the most useful one concern
the major purpose of the investigation. On the basis, research design can be classified into
three classes –Exploratory, Descriptive and Casual. If no formal design or structure
questionnaire are used, exploratory design is used .If a person is conversant with the
problem environment, or is conducting the research for some specific purpose using
structure questionnaire to gather information, the research design is descriptive casual
research design is used to establish cause and affect relationship.

For descriptive studies and also casual studied, data analysis and project output are
critical aspects of research planning, this study uses descriptive design.

72
 3.6 Sampling Techniques
SAMPLING PROCESS:-

Taking into account the practical considerations ( Such as time limit, cost, etc ) the study
a sample survey as the means of means of gathering primary information. A sample
survey allows a reason to concentrate his attention upon a relatively small number of
people and hence, to devote more time and energy to ensure that the information collected
from them is more accurate.

DEFINING THE POPULATION:-

The first thing that a sample plan must include is the definition of the population to be
investigation. The population should be defined as clearly as possible. The population
chosen for the study, taking in to consideration the objective of the study is defined as, all
the customer of four – wheeler.

SAMPLE DESIGN:-

Sample design is the heart of the sample planning process. A sample design involves
specifications of the type of sample used, the appropriate sampling unit, and the sample
size.

TYPE OF SAMPLE:-

The study use non –probability sampling most of the sampling in marketing research is

non –probability in nature of the various non probability methods , convenience sampling

method is used in this study rather than using a table of random number as in probability

sampling . convenience sampling means that the sampling unit are accessible, convenient

and easy to measure. The advantage of choosing a non -probability sampling methods is

that the sampling error will be when compared to probability sampling.

73
SAMPLING UNIT:-

The sampling unit forms the basis of the entire sampling procedure. It is that which is

actually chosen by the sampling process. The sampling unit may contain one or more

population elements. The sampling unit in the study consists of the private employees,

government employees, business people and others.

SAMPLE SIZE:-

The sample consist of 200 customer selected from the Gorakhpur using convenience

sampling method. Out of the customers selected for the study, some did not own four –

wheeler and some had not responded well. Hence they had to be replaced by other

customers.

74
 3.7 Data Collection (Primary & Secondary)

PRIMARY SOURCES:-

The primary used for gathering data required for this survey is – Survey method

In the survey method a survey of the consumer’s satisfaction toward four wheeler is done.
A planned effort is made using structured questionnaire to interview the respondents. The
respondents are the owners of the four wheeler, who are interviewed, are chosen using
non probability sampling method.

The survey can be done through personal interviews .In this study respondent are
interviewed personally so that the errors involved in gathering primary data are
minimized.

SECONDARY SOURCES:-

The secondary sources used for collecting data are:-

1.Internal Sources:-

➢ Company’s Reports.

➢ Company’s Publications.

➢ Company’s Employees.

➢ Company Strategy.

1. External Sources:-

Information was gathered from Magazines like –Auto Expo, Car Bazaar, and
Business World & Business Today. Business dailies like – The Economic Times,
The Business Line etc

News Paper like – The Hindustan Times, Business Standard & The Corporate
Times. Apart from this information was also taken from internet.

75
CHAPTER - IV

DATA ANALYSIS

76
4.1Data Analysis and Interpretation:
Table No.-4.1a Table showing Occupation of Customer-

S.No. Occupation % of Respondent

1 Business 44

2 Employee 32

3 Agriculture 14

4 Other 10

Source-Primary data

4.1A -Occupation of the customer

4 Other
3 Agriculture 10%
1 Business
14%
44%

2 Employee
32%

Interpretation –
It is observed that, 44% customers are doing the Business and 32% customer are the
employee in private or government sector, 14% are farmer and 10% in other field.

77
 Table No.4.1b Table showing Age of the Maruti Suzuki’s Customer

Buyer 20 - 25 26 – 34 35 - 44 45 & above

1st 5 22 8 6

2nd 0 10 14 10

Additional 0 8 8 9

Total 5 40 30 25

4.1.1

25

20

15 Ist
2nd
10 Additional

0
20 - 25 26 - 34 35 - 44 45 & above

Source-Primary data

Interpretation –

It is observed that, 5% customer’s age is between the 20-25 years, 40% in 26-34 years, 30% in
35-44 years and 2% customers above 45 years.

78
Customers remark % of Respondent

Excellent 50

Good 30

Average 15

Below average 5

Table No.-4.1c Table showing Pre-Sales satisfaction level of the customer.

4.1B -Pre Sales Satisfaction of customers

Excellent Good Avverage Below average

5%
15%

50%

30%

Interpretation –

It is observed that, 50% of the customers are highly satisfied with the Pre-sales services

And 5% are dissatisfied with the Pre sales services.

79
Table No.4.1d Table showing customers opinion about the Maruti’s vehicles for Value for
Money

Respondent's Remark % of respondents

Above Expectation 38

As per Expectation 42

Below Expectation 20

4.1.2 -Value for Money

As per Expectation,
45 Above 4200%
Expectatiom,
40 3800%

35

30

25 Below Expectation,
2000%
20

15

10

0
Above Expectatiom As per Expectation Below Expectation

Interpretation –

42% of the respondents are of opinion that vehicles are as per expectation & 20% are of the
opinion that the vehicle are below expectation.

80
Table No.-4.1e Table showing Post-Sales satisfaction level of the customer.

Customers remark % of Respondent

Excellent 30

Good 45

Average 20

Below average 5

4.1C -Post Sales satisfaction of the customer

Excellent Good Avverage Below average

5%
20% 30%

45%

Interpretation –

It is observed that, 45% of the customers are highly satisfied with the Post-sales services

And 5% are dissatisfied with the Post sales services.

81
Table No.-4.1f Table showing customer priority with respect to characteristic.

Aspect % of Respondents

Comfort 12

Mileage 26

Features 12

Looks 20

Price 24

Safety 6

4.1D -Customers Pirority with respect to

charesteristic
0%
Aspect
6% 12%
24% Comfort
26% Milage
Features
20% 12%
Looks
Price
Safty

Interpretation –

It is observed that, 26% of the customers preferred Mileages as first preference and 6%

preferred safety.

82
Table No..4.1g Table showing customer unawareness about MS Add on services.

Services % of Respondent

MTV 10

M-Finance 12

M-Insurance 4

M-o-S 18

Anytime Maruti 20

MGA 8

MGP 8

MEW 20

4.1E - Unawerness of the customers about Maruti

Add-on Services MTV

M-Finance

20% 10% M-Insurance

12%
8% 4% M-o-S

18% Anytime
20% Maruti
MGA
8%
MGP

MEW

Interpretation –

It is observed that, 20% of the customers are unaware of Anytime Maruti, and 4% of the

customers are unaware of Maruti Insurance.

83
Table No..4.1 h Table showing customer remark about services.

Customers remark % of Respondent

Excellent 35

Good 55

Average 17

Below average 3

4.1 F

Customer remark about services

3%
15%
32%

Excellent
Good
Avverage
Below average

50%

Interpretation –

It is observed that, 55% of the customers are satisfied with the services, and 3% are not

satisfied.

84
Table No.-4.1i Table showing customer expectation for improvement in Maruti Suzuki.

Customers remark % of Respondent

Price 16

Quality 46

Service 24

Other 14

4.1G -Customer expectation from Maruti

Suzuki

14%
16% Price
24%
46% Quality

Service

Other

Interpretation –

46% of the customers are of opinion that Maruti should improve in quality.

85
Table No.-.4.1j Table showing customer’s repurchase intention.

Customers remark % of Respondent

Yes 74

No 26

4.1.3-No. of Respondent
80

70

60

50

40
No. of Respondent

30

20

10

0
Yes No

Interpretation –

It is observed that, 74% of the customers are ready to repurchase the Maruti’s car, 26%

are not ready to purchase the car.

86
Table No..4.1k Table showing customer’s recommendation intention.

Customers remark % of Respondent

Yes 72

No 28

4.1H -Recommandation to friends/relatives

28%
Ye
s
72% N
o

Interpretation –

It is observed that, 72% of the customers are ready to recommend the car to the friends

and relative, 28% are not ready to recommend the car to the friends and relatives.

87
Table No.-4.1 l Table showing customer’s preference about M-Finance.

Customers remark % of Respondent

Yes 38

No 62

4.1I -Customer Preference about M-Finance

38%

Ye
62%
s

Interpretation –

It is observed that, 62% of the customers are ready to prefer M-Finance, 28% are not

ready to prefer M-Finance.

88
Table No.-4.1m Table showing customer’s preference about M-Insurance.

Customers remark % of Respondent

Yes 86

No 14

4.1.4 -Customer Preference about M-

Insurance

86
100

80

60
No. of Respondent
40
14
20

0
Yes No

Interpretation –

It is observed that, 86% of the customers are ready to prefer M-Insurance, 14% are not

ready to prefer M-Insurance.

89
CHAPTER - V

FINDING AND

CONCLUSION

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 5.1 SUMMARY OF LEARNING EXPERIENCE/ 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 is observed that, 42% of the respondent are of opinion that vehicles are as per

expectation, and 20% are saying its below expectation.

5. Company should improve its post sales 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, MEW etc.

8. Customer are highly satisfied with the service which help in customer retention

9. It is observed that, 46% of the customers are of opinion that Maruti 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.

11. Company has created goodwill among the customers which will help them to

recommend car to friends and relatives.

12. Maruti Suzuki needs to educate the customers about the benefits of M-Finance. They

can motivate the cash customers to offer M-Finance.

13. It is observed that, 86% of the customers are ready to prefer M-Insurance, 14% are

not ready to prefer M-Insurance.

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 5.2 CONCLUSION & RECOMMENDATIONS

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

matter of concern for the company. Maruti Suzuki needs to improve some parts 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 confidential

as possible.

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 RECOMMENDATION

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

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

❖ Company should improve the promotion strategy of product.

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

❖ It will be beneficial for the company to make the warehouse near to the
showroom and there should be roof facility, adequate security facility in the
warehouse.

❖ The Company should know its customers satisfaction level throughout doing
periodic surveys. Periodic surveys can treat customer satisfaction directly.

❖ Company should improve/upgrades its employee’s product knowledge, market

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

❖ Company should upgrade or innovate its new product.

❖ The Company should not only concentrate on the customer satisfaction but
also the company led to monitor their competitor’s performance in their areas
of operations.
❖ The Company should make changes according to the other competitors &
according to the customer’s expectations.

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 LIMITATIONS OF RESEARCH:

Though the research was conducted properly, the probability of errors & biases kept is

minimum; still some errors occurred because of certain limitation.

These are as follows:-

a) A very short span of time for research.

b) This is time-consuming research method & the respondents did not have sufficient

time for giving information for such type of research.

c) People were reluctant to give responses for such type of research.

d) People also did not give proper response for Questionnaire & interview, because

of short time.

e) Study is restricted to only Gorakhpur city.

I have honestly and sincerely tried to present the facts and figures but

some error still might have cropped up.

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 BIBLIOGRAPHY

References-

Following are the sources from where the primary data has been gathered :

Referred Books-
1. Marketing Management by Philip Kotler, (Thirteen edition)

2. Research Methodology-C.R. Kothari.2ndedition

Website visited -

www.marutisuzuki.com

www.automotive.com

www.marutiudyog.com

Newspapers-

Business standards, Dainak Gajran, Times of India, etc.

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APPENDICES

96
 Questionnaire

Dear Respondent,
For the study of Maruti Suzuki cars is an better option for customer your
cooperation is requested in filling-in this questionnaire aimed at gaining insight into
the interrelationship among these variables. The information will be used for
academic purpose only and will be kept confidential.

Name -

Occupation:-

Gender:-

Please choose the option that match your opinion.

Age of Respondent

a) Below25 b) 25-34

c) 35-44 d) 45 & above

Annual Income
a) 3-5 lack b) 5-8 lack

c) 8-12 lack d) 12 and above

1. Which Model of Maruti are you using?

Car:-………………………………………………………………………………

2. From how many years you are using this model?

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

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

3. Preference for choosing particular car?

a) Comfort b) Mileage

c) Feature d) Performance

e) Looks f) Price

g) Others Please specify:-………

4. Are you satisfied with your car?

a) Yes

b) No

5.From which of the following add- services are you unaware?

a) MTV b) M-Finance

c) M-Insurance d) Maruti on road services

e) Any time Maruti f) MGA

a) MGP h) Maruti Extend warranty

6. Do you prefer M-Insurance over any other insurance option?

a) Yes

b) No

7. Do you prefer M-Finance over any other finance option?

a. Yes

b. No

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 8. Do you prefer to get MGA fitted in your car or any local accessories?

a) MGA b) Local

9. What is your Pre-sales experience while purchasing the car?

a) Excellent b) Good

c) Average d) Below Average

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

a) Excellent b) Good

c) Average d) Below Average

11. Are you satisfied with the features of Maruti?

a) Yes

b) No

c) Maybe

12. How will you rate Maruti on the basis of Value for Money?

a) Above Expectation

b) Below Expectation

c) As per Expectation

13. Do you find easy availability of spare parts?

a) Yes

b) No

14. Would you like to re purchase the Maruti’s car?

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 a) Yes

b) No

15. Would you like to recommend the Maruti car to your friends/relatives?

a) Yes

b) No

16. In which sector do you think/feel Maruti should improve?

a) Price b) Quality

c) Service d) Others

17. Are you satisfied with the overall service of Maruti?

a) Excellent b) Good

c) Average d) Below Average

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