Professional Documents
Culture Documents
Maruthi Suzuki
Maruthi Suzuki
"As we spread wings to expand our capabilities and explore new horizons, the
fundamental focus remains unchanged: seek out the best technology in the world and
put it at the service of our ultimate user: our customer."
Promotion is true that products are manufactured to satisfy the needs of the
consumers.. But alone is not enough. Today the responsibility of the manufacturers does not
cease with physical production whatever may be the nature of the product. The present day
marketers are consumer oriented where it is the duty of the manufacturers to know from
where, when, how and what price the products would be available. Successful marketing
consists in offering the right product of the right price of the right place (and time) with right
promotion.
In course of time, various activities came into vogue designed particularly to help easy
sale of goods. These activities commonly known as promotional Mix. The marketing
communication Mix also called as the “Promotion Mix” consists of four major tools.
1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling
The process of selling is ensured by personal selling supposed by advertising and sales
promotion. Of these three methods personal selling occupies the predominant role mainly
because of the personal element involves. It may be described as a personal source
rendered to the community in connection with marketing of goods.
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It is a marketing process with which consumers are personally persuaded to by goods and
services offered by a manufacturer. The most powerful element in the promotional mix is
salesman ship, is not something very new. Even contraries ago salesman ship was
practiced in Greece and Rome. According to Peter Drucker Cyrus Micronized was the
first man to use modern technique of selling.
Features:
1. It helps to establish a cordial and abiding relationship between the organization and its
customers.
2. It is a creative art. It creates wants a new.
3. It is a science, in the sense that “One human mind influences another human mind”.
4. Personal selling imparts knowledge and technical assistance to the consumers.
Promotion includes all those functions, which have to do with the marketing of a
product all other activities designed to increase and expand the market. But it is clearly
distinguished from advertising and personal selling, through basic aim or all the three is
one and the same viz., to increase the volume of sales.
“Sales promotion in a specific sense refers to those sales activities that supplement
both personal selling and advertising and co-ordination ate them and help to make them
effective, such as displays, shows and expositions, demonstrations and other non recurrent
selling efforts not in the ordinary routine”.
Two decades ago, there was no agreement among the marketing people that there
was a separate sales promotion function. In those days, promotion was a “share-
run to gain a short run good”.
PUBLICITY
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though the terms ’ADVERTISING ‘AND ‘Publicity’ or differences in the field of
marketing, both are used interchangeably.
The media are broadly classified into direct indirect. Direct method of advertising
refers to such methods used by the advertiser with which he could establish a direct
contact with the prospects. Most of the media are indirect in nature EX: Free Publicity,
cinema, etc.
The increasing competition in business is the reason to pay much more attention to
satisfying customers. It may help the market to notice role of customer satisfaction in the
overall context of product of service development and management.
Customers do not buy services, they buy satisfaction. Hence marketers must
be clear about the satisfaction the customer is seeking and check out whether the
customers are getting the actual satisfaction. This study helps the marketers to take
necessary steps to gain the competitive advantage over the competitors.
The study helps to predict further behavior intentions of the customers such as
intention to re-purchase, intention to increase the usage, intention to recommend the
product and Service to others. Today the customers have wide variety of motorcycles
to chose.
If the satisfaction level of the customer goes down he may switch over to other
brand. Ultimately the company loses its actual customers. This study helps the
marketer to take necessary steps to overcome this problem and retain in the increase
of customer loyalty.
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Scope of the Study:
The area of study is considered to be in two districts. Those are Hyderabad and Ranga Reddy
districts.
In the present study an attempt has been made to know the actual
implementation of Communication Process as management techniques in general and some
other aspects such as awareness of the workers, effectiveness of the performance appraisal
system in particular.
To study the customer’s awareness towards the after sale services offered to
him or her.
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To study the information resources that the customer using before purchasing
the Cars.
METHODOLOGY AND DATA BASE
a) Source of data:
1) Primary Data:
The primary data is collected through questionnaires from the customers.
2) Secondary Data:
The secondary data is collected from the books, journals and internet.
Data collected method:
The data is collected through close ended questionnaire.
b) Sample size:
1. The sample size of the survey (N) is 100.
2. Samples are collected customers of showroom.
3. The age limit of the customers is in between 20-55.
4. The customers will be randomly selected.
c) Tools & Techniques: For analyzing the data statistical tables, percentages, and
bar-diagrams will be used.
d) Further scope of study; The topic of promotional activities is vast there is further
scope of study for eg; Advertising, sales promotion etc.
e) Kind of research: The research study will be carried out in qualitative and
quantitative research approaches.
The research has to be done in very efficient way; the frame work for
collecting data is called research design.
The statistical involves the study of a few factors in large number of cased.
The contents of research design are
i) Data collected method.
ii) Research instrument.
f) Survey approach: The survey will be conducted through close ended
questionnaire. This questionnaire will contain the multiple choice questions; each
question will be given options. The collection of data in survey follows two types
they are
i) Primary data (first hand data).
ii) Secondary data (used data).
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Period Of The Study:
Since so many years MARUTI SUZUKI MOTORS LTD Hyderabad has been following
the same procedure of Communication Process for their executives and employees and for
the study of my project last one-year data has collected on Promotional Activates..
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REVIEW OF LITERATURE
The increasing competition in business to pay much more attention to satisfying customers. It
may help the marketer to notice role of customer satisfaction in the overall context of product
of service development and management.
Customers do not buy services, they bys satisfaction. Hence marketers must be clear about
the satisfaction the customer is seeking and check out whether the customer are getting the
actual satisfaction.
This study helps the marketers to take necessary steps to gain the competitive advantage over
the competitors.
The study helps to predict further behavior intentions of the customers such as intention to
Re-purchase, intention to increase the usage, intention to recommend the product and service
to others. Today the customers have wide variety of motorcycles to chose. If the satisfaction
level of the customer goes down he may switch over to other brand. Ultimately the company
loses its actual customers. This study helps the marketer to take necessary steps to overcome
this problem and retain its actual customers.
1. Can be major source of revenue, although it often receives too little management
attention.
2. Is essential for achieving customer satisfaction and good long-term relationship-as
identified by a number of researches.
3. Can provide a competitive advantage.
4. Play a role in increasing the success rate of new products introduced.
5. Needs to be fully evaluated during new product development, as good product
design can make customer support more efficient and cost-effective. Increased
competition within many industries has led to increased attention on customer
service.
Various studies indicate that upset customers may have big effect on sales of company.
Therefore all dealers try to put all their attention to keep their customers satisfied and fulfill
their needs and wants as much as possible. One of the strong tools which help all companies
in this matter is providing best after-sales service.
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Market: The set of all actual and potential buyers of a product of a service.
Marketing:
In today’s competitive world any organization to run successfully three factors plays
an important role are
1. Finance.
2. Human resources.
3. Marketing.
Along with the above mentioned the other three factors which plays an important role
to achieve the organizational goals and objectives in the competitive market they are
1. Innovative technology.
2. Quality.
3. Price.
Marketing definition.
“Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging products and
value with others”.
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ELEMENTS OF MODERN MARKETING SYSTEM:
Company
(Marketer)
MarketingInte End users
Suppliers
rmediaries
Competitor
s
“The art and science of choosing target customers and building profitable
relationships with them.”
Marketing Mix:
The set of controllable tactical marketing tools that he firm blends to provide
the response it wants in the target market. The marketing mix consists of everything
the firm can do to influence the demand for its product. It can be collected into four
groups of variables known as “FORUP’S”.
1) PRODUCT
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2) PRICE
3) PLACE
4) PROMOTION
Product:
Product means the goods-and –services combination the company offers to the target
market.
Price:
Place:
Place includes company activities that make the product available to a target
consumers.
Promotion:
Promotion means the activities taken by the company to communicate the merits of
the product and promote its product to the target market.
1) Product:
Managing the product includes planning and developing the right products and
services to be marketed by the company policy strategy guidelines are needed for
changing the existing products and adding new ones.
a. Product variety, quality, features, design, brand name, packaging, size, services,
warranties and returns.
b. Markets to sell-whom, where and in what quantity.
c. New product policy, R&D programs.
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2) Pricing activities:
Include policies and procedures relating to
1. List prices.
2. Discounts.
3. Allowances.
4. Payment period.
5. Credit terms.
Generally markets consider the following factors while seeking price: target customers, cost,
competition, social responsibility.
3) Promotional activities:
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An effective marketing program blends all of the marketing-mix elements into a
coordinated program designed to achieve company’s marketing objectives by delivering
value to consumer. The marketing mix constitutes the company’s tactical tool kit for
establishing string positioning in target markets. The four P’s concept taken the seller’s view
of the market, not the buyer’s view. From the users view point the four P’s might be better
described as the four C’s.
Place convenience
Promotion communication
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COMOMIC ENVIRONMENT:
Markets require buying power as well as people. The economic environment consists
of factors that affect consumer purchasing power and spending patterns.
1) Cultural factors
2) Social factors
3) Personal factors
4) Psychological factors
1) Cultural factors:
i) Cultural is the set of basic values, perceptions wants and behavior learned by a
member of society from family and other important institutions.
ii) Sub-culture a group of people with shared value sustains based on common
life experiences sub cultures includes nationalities, religion.
iii) Social classes relatively permanent and ordered divisions in a society whose
members share similar values, interests and behaviors. Social class is
measured by a combination of factors like income, occupation, education,
wealth etc. types are upper class, upper middle, lower class, working class etc.
2) Social factors:
ii) Family: marketers are interested in the roles and influence of the husband,
wife and children on the purchase of different products and services. Five
fingers of the hand relating to five members of family influencing the decision
of purchase.
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iii) Roles and Status: A person role differs from group to group. A role consists of
the activities people are expected to perform according to the persons around
them. Each role carries a status reflecting the general esteem given to it by
society. People often choose products that show their status in the society.
3) Personal factors:
i) Age and life cycle stage: tastes in food, clothes, furniture etc care often age
related. Buying is also shaped by the stage of family life cycle the stages
through which families might pass as they mature over time.
ii) Occupation; A person’s occupation affects the good and services bought. Blue
collar workers tend to buy more rugged clothes where as white collar workers
buy more suits. A company cans ever specialty in making products needed by
a given occupation.
iv) Life style: Life style is a person’s pattern of living understanding these forces
involves measuring consumer’s activities, interests and opinions.
4) Psychological factors:
ii) Perceptions: It is the process by which people select, organize, and intercept
information to form a meaningful picture of the world. Two people with same
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motivation and is the same situation may act quite differently because they
perceive the situation differently.
iii) Learning: When people act, they learn. Learning describes charesIn an
individual behavior arising from experience. Learning theorists say that most
human behavior is learned learning occurs through the interplay of drives,
stimuli, uses, responses and reinforcement.
Beliefs and Attitudes: Through doing and learning people acquire beliefs nd
attitude. These in turn influence their buying behavior. A belief is a descriptive
thought that a person has about something; as attitude describes a person’s
relatively consistent evaluations, feelings and tendencies toward an object of
India.
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There are four main aspects of a promotional mix. These are:
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Sales promotion - Media and non-media marketing communication are employed for
a pre-determined, limited time to increase consumer demand, stimulate market
demand or improve product availability. Examples: Coupons, sweepstakes, contests,
product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins,
and exhibitions.
Public relations - Paid intimate stimulation of supply for a product, service, or
business unit by planting significant news about it or a favorable presentation of it in
the media. Examples: Newspaper and magazine articles/reports, TVs and radio
presentations, charitable contributions, speeches, issue advertising, and seminars.
Corporate image - The Image of an organization is a crucial point in marketing. If the
reputation of a company is bad, consumers are not less willing to buy a product from
this company as they would have been, if the company had a good image.
Direct Marketing is often listed as a the fifth part of the marketing mix
Exhibitions - are try-outs. You make your product, and let potential buyers try the
product, this way; you know directly what people see in your product. The downside,
your competitor can see exactly what you are doing.
Customer Satisfaction:
The customer centered firm seeks to deliver high customer satisfaction relative to
competitors. A company can always increase customer satisfaction by lowering its price of
increasing its services. But this may result in lower profits. The purpose of marketing is to
generate customer value profitably.
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Customer loyalty:
Highly satisfied customers produce several benefits for the company. Satisfied
customers are lesser price sensitive. They talk favorably to others, about the company and its
products and remain for longer period. Customer delight created an emotional relationship
with a product of service. This crated high customer loyalty.
Alba & Hutchison (1987) defined familiarity as the number of product-related or service-
related experiences that have been gathered by the consumer. These related experiences
include direct and indirect experiences such as exposure to advertisements, interactions with
salespersons, word of mouth contact, trial and consumption. Johnson and Russo (1984)
viewed familiarity as being tantamount with knowledge. Johnson & Kellaris (1988) have
considered experience contributing to familiarity. Review of the literature shows that
knowledge; experience and familiarity are closely intertwined. Following Alba and
Hutchison’s (1987) definition, brand familiarity is identified as the accumulated correlated
experiences that customers have had with a brand (Ballester, Navarro & Sicilia, 2012).
The effect of brand familiarity can be observed through a process called ‘Product-class cues’.
The product class or subcategory to which the brand belongs could serve as a cue in many
cases. A consumer may want a "fruit juice" to have with a meal. Research on categorization
processes has recognized the importance of "prototypically" as an indication of the strength
of association between a category concept and members of the category (Rosch, 1975; Medin
& Smith, 1981). Prototypically of a brand is known as a measure of how representative the
brand is of its product category. Operationally, prototypically is measured by individuals'
ratings of how "good an example" they consider the object of a category. Brands that are
prototypical are more likely to be recalled faster and more frequently (Nedungadi &
Hutchinson, 1985; Barsalou, 1985; Rosch & Mervis, 1975). This leads to a higher probability
of being included in the evoked set and to higher probability of choice.
Zajonc (1968) in a research has demonstrated that experience to a stimulus can enhance the
fondness for that stimulus independently of cognitive evaluations or contextual associations.
Basically, this stream of research has confirmed that affect is a linear function of the
logarithm of exposure frequency (Harrison, 1977). So, as exposure to a brand increases,
affective reactions to the brand become more favorable. It means the more a brand is exposed
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through advertisements and campaigns, the more exposure it gets, which eventually leads to
more familiarity of the brand.
Zajonc & Markus (1982) suggest that familiarity may lead to creation of positive impression
of a service or object. When confronted with a familiar service or brand, the consumer may
feel a glow of warmth and intimacy. Familiarity with the brand thus creates a sense of
trustworthiness in consumer’s minds.
The previous researchers have all identified how familiarity towards a brand causes a
psychological change in the minds of the consumers. It is seen that familiarity mostly evokes
positive emotions about a brand on the consumer’s mind. This paper will attempt to find out
whether these changes in the psychology, eventually lead a consumer to purchase a product
or not.
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COMPANY PROFILE
History
Logo of MarutiUdyog
Maruti was established in February 1981 though the actual production commenced only in
1983. It started with the Maruti 800, based on the Suzuki Alto kei car. As of May 2007, the
Government of India, through Ministry of Disinvestment, sold its complete share to Indian
financial institutions and no longer has any stake in MarutiUdyog.
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Chronology
In 1970, a private limited company named Surya Ram Maruti technical services private
limited (MTSPL) was launched on November 16, 1970.The stated purpose of this company
was to provide technical know-how for the design, manufacture and assembly of "a wholly
indigenous motor car". In June 1971, a company called Maruti limited was incorporated
under the Companies Act. Maruti Limited went into liquidation in 1977. MarutiUdyog
Ltd was incorporated through the efforts of Dr V. Krishnamurthy.
In 1982, a license & Joint Venture Agreement (JVA) was signed between MarutiUdyog Ltd,
and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed
market, Maruti received the right to import 40,000 fully built-up Suzukis in the first two
years, and even after that the early goal was to use only 33% indigenous parts. This upset the
local manufacturers considerably. There were also some concerns that the Indian market was
too small to absorb the comparatively large production planned by Maruti Suzuki, with the
government even considering adjusting the petrol tax and lowering the excise duty in order to
boost sales.[16] Finally, in 1983, the Maruti 800 was released. This 796 cc hatchback was
based on the SS80 Suzuki Alto and was India’s first afmarutiable car. Initial product plan was
40% saloons, and 60% Maruti Van.[16] Local production commenced in December 1983.[12] In
1984, the Maruti Van with the same three-cylinder engine as the 800 was released and the
installed capacity of the plant in Gurgaon reached 40,000 units.
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started exporting to the West, when a lot of 500 cars were sent to Hungary. By 1988, the
capacity of the Gurgaon plant was increased to 100,000 units per annum.
Market liberalisation
In 1993, the Zen, a 993 cc, hatchback was launched and in 1994 the 1298 cc Esteem was
introduced. Maruti produced its 1 millionth vehicle since the commencement of production in
1994. Maruti's second plant was opened with annual capacity reaching 200,000 units. Maruti
launched a 24-hour emergency on-road vehicle service. In 1998, the new Maruti 800 was
released, the first change in design since 1986. Zen D, a 1527 cc diesel hatchback and
Maruti's first diesel vehicle and a redesigned Omni were introduced. In 1999, the
1.6 litre MarutiBaleno three-box saloon and Wagon R were also launched.
In 2000, Maruti became the first car company in India to launch a Call Center for internal and
customer services. The new Alto model was released. In 2001, Maruti True Value, selling
and buying used cars was launched. In October of the same year the Maruti Versa was
launched. In 2002, Esteem Diesel was introduced. Two new subsidiaries were also started:
Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited. Suzuki Motor
Corporation increased its stake in Maruti to 54.2 percent.
In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the Wagon R
were upgraded and redesigned. The four millionth Maruti vehicle was built and they entered
into a partnership with the State Bank of India. MarutiUdyog Ltd was Listed on BSE and
NSE after a public issue, which was oversubscribed tenfold. In 2004, the Altobecame India's
best selling car overtaking the Maruti 800 after nearly two decades. The five-seater Versa 5-
seater, a new variant, was created while the Esteem was re-launched. MarutiUdyog closed the
financial year 2003-04 with an annual sale of 472,122 units, the highest ever since the
company began operations and the fiftieth lakh (5 millionth) car rolled out in April 2005. The
1.3 L Suzuki Swift five-door hatchback was introduced in 2005.
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In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India",
to build two new manufacturing plants, one for vehicles and one for engines. [17] Cleaner cars
were also introduced, with several new models meeting the new "Bharat Stage III" standards.
[17]
In February 2012, Maruti Suzuki sold its ten millionth vehicle in India. [12] For the Month
of July 2014, it had a Market share of >45 %.
Manufacturing facilities
Maruti Suzuki has three manufacturing facilities in India. [22] All manufacturing facilities have
a combined production capacity of 1,700,000 vehicles annually. The Gurugrammanufacturing
facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2 km2).
[23]
The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The Gurgaon
Facilities manufactures the Alto 800, WagonR, Ertiga, S-
Cross, VitaraBrezza, Ignis and Eeco.
The Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600
acres (2.4 km2).[23] Initially it had a production capacity of 100,000 vehicles annually but this
was increased to 300,000 vehicles annually in October 2008. The production capacity was
further increased by 250,000 vehicles taking total production capacity to 800,000 vehicles
annually. The Manesar Plant produces the Alto 800, Alto K10, Swift, Ciaz, Baleno, Baleno
RS and Celerio. On 25 June 2012, Haryana State Industries and Infrastructure Development
Corporation demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land
acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay
the amount would lead to further proceedings and vacating the enhanced land acquisition.
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[25]
The launch of the Dzire was happened in the month of May 2017 and the variant is said to
have good mileage.
In 2012, the company decided to merge Suzuki Powertrain India Limited (SPIL) with itself.
[28]
SPIL was started as a JV by Suzuki Motor Corp. along with Maruti Suzuki. It has the
facilities available for manufacturing diesel engines and transmissions. The demand for
transmissions for all Maruti Suzuki cars is met by the production from SPIL.
Industrial relations
Since its founding in 1983, MarutiUdyog Limited has experienced problems with its labour
force. The Indian labour it hired readily accepted Japanese work culture and the modern
manufacturing process. In 1997, there was a change in ownership, and Maruti became
predominantly government controlled. Shortly thereafter, conflict between the United Front
Government and Suzuki started. In 2000, a major industrial relations issue began and
employees of Maruti went on an indefinite strike, demanding among other things, major
revisions to their wages, incentives and pensions.
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The standoff between the union and the management continued through 2001. The
management refused union demands citing increased competition and lower margins. The
central government privatized Maruti in 2002 and Suzuki became the majority owner of
MarutiUdyog Limited.
Manesar violence
Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a
monthly conveyance allowance of 10,000, a laundry allowance of ₹ 3,000, a gift with every
new car launch, and a house for every worker who wants one or cheaper home loans for those
who want to build their own houses. According to the Maruti Suzuki Workers Union a
supervisor had abused and made discriminatory comments to a low-caste worker, JiyaLal,.
These claims were denied by the company and the police. Maruti said the unrest began, not
over wage discussions, but after the workers' union demanded the reinstatement of JiyaLal
who had been suspended for allegedly beating a supervisor. The workers claim harsh working
conditions and extensive hiring of low-paid contract workers which are paid about $126 a
month, about half the minimum wage of permanent employees. On 27 June, 2013, an
international delegation from the International Commission for Labor Rights (ICLR) released
a report alleging serious violations of the industrial right of workers by the Maruti Suzuki
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management . Company executives denied harsh conditions and claim they hired entry-level
workers on contracts and made them permanent as they gained experience. [38]Maruti
employees currently earn allowances in addition to their base wage.
The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence is
the result of a planned violence by a section of workers and union leaders and arrested 91
people. Maruti Suzuki in its statement on the unrest, [45] announced that all work at the
Manesar plant has been suspended indefinitely.[37] The shut down of Manesar plant is leading
to a loss of about Rs 75 crore[46] per day.[47] On 21 July 2012, citing safety concerns, the
company announced a lockout under The Industrial Disputes Act, 1947 pending results of an
inquiry the company has requested of the Haryana government into the causes of the
disorder. Under the provisions of The Industrial Disputes Act for wages, the report claimed,
employees are expected to be paid for the duration of the lockout. [46] On 26 July 2012, Maruti
announced employees would not be paid for the period of lock-out in accordance with Indian
labour laws. The company further announced that it will stop using contract workers by
March 2013. The report claimed the salary difference between contract workers and
permanent workers has been much smaller than initial media reports – the contract worker at
Maruti received about 11,500 per month, while a permanent worker received about 12,500 a
month at start, which increased in three years to 21,000-22,000 per month. In a separate
report, a contractor who was providing contract employees to Maruti claimed the company
gave its contract employees the best wage, allowances and benefits package in the region.
Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this
kind of violence has never happened in Suzuki Motor Corp's entire global operations spread
across Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines.
Mr. Nakanishi apologized to affected workers on behalf of the company, and in press
interview requested the central and Haryana state governments to help stop further violence
by legislating decisive rules to restore corporate confidence amid emergence of this new
'militant workforce' in Indian factories. He announced, "we are going to de-recogniseMaruti
Suzuki Workers’ Union and dismiss all workers named in connection with the incident. We
will not compromise at all in such instances of barbaric, unprovoked violence." He also
announced Maruti plans to continue manufacturing in Manesar, that Gujarat was an
expansion opportunity and not an alternative to Manesar.
The company dismissed 500 workers accused of causing the violence and re-opened the plant
on 21 August, saying it would produce 150 vehicles on the first day, less than 10% of its
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capacity. Analysts said that the shutdown was costing the company 1 billion rupees ($18
million) a day and costing the company market share. In July 2013, the workers went on
hunger strike to protest the continuing jailing of their colleagues and launched an online
campaign to support their demands.
A total of 148 workers were charged with the murder of Human Resources Manager
Avineesh Dev. The court dismissed charges against 117 of the workers. On 17 March 2017,
31 workers were found guilty of variety of offences. 18 were convicted on charges of rioting,
trespassing, causing hurt and other related offences under Indian Penal Code sections. The
remaining 13 workers were sentenced to life in imprisonment after being found guilty of the
murder of General Manager of Human Resources Avineesh Dev. Twelve of the thirteen
sentenced were office-bearers of the Maruti Suzuki Workers Union at the time of the alleged
offences. The prosecution had sought the death penalty for the thirteen.
Both prosecution and defence have announced they will appeal the sentences. Defence
counsel Vrinda Grover stated, “We will file appeals against all convictions in the HC. The
evidence, as it stands, cannot withstand legal scrutiny. There is no evidence to link these
workers to the murder. The 13 who have been convicted, it’s important to remember that they
were the leaders of the union. Therefore, it is clear that this is targeted framing of these
persons. We hope for justice in the superior court.”
The Maruti Suzuki Workers Union is continuing to organise industrial action and protests
calling for the workers to be released and criticising the judgement and sentences an
unjust. An international appeal for the release of the workers has been made by the
International Committee for the Fourth International (ICFI) and other organisations such as
the Peoples Alliance for Democracy and Secularism.
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Products and services
Current models
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K10 2010 Hatchback
Mini
Ertiga 2012
MPV
29
VitaraBrezz
2016 Mini SUV
a
Discontinued models[edit]
30
Esteem 1994 2008 Sedan
Grand Vitara
2003 2007 Mini SUV
XL7
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A-star 2008 2014 Hatchback
Maruti Suzuki has 1,820 sales outlets across 1,471 cities in India. The company aims to
double its sales network to 4,000 outlets by 2020. It has 3,145 service stations across 1,506
cities throughout India. Maruti’s dealership network is larger than that of Hyundai, Mahindra,
Honda, MARUTI SUZUKI MOTORS LTD, Toyota and Maruti combined. Service is a major
revenue generator of the company. Most of the service stations are managed on franchise
basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been
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able to match this benchmark set by Maruti Suzuki. The Express Service stations help many
stranded vehicles on the highways by sending across their repair man to the vehicle.
NEXA
In 2015 Maruti Suzuki launched NEXA, a new dealership format for its premium cars.[64]
Maruti Insurance
Launched in 2002 Maruti Suzuki 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 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 Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti
and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client
in securing loan. Maruti Suzuki 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 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.
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and
MarutiUdyog Limited its primary business stated by the company is "hire-purchase financing
of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of
Citibank Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned
subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti
33
Suzuki holds the remaining 26%.[72] GE Capital, HDFC and Maruti Suzuki came together in
1995 to form Maruti Countrywide. Maruti claims that its finance program offers most
competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the
market rates.
MarutiTrueValue
Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used
Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the
help of this service in India. As of 10 August 2017 there are 1,190 outlets across 936 cities.
N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporates. Clients who have signed up of this service include Gas
Authority of India Ltd, DuPont, Reckitt Benckiser, Doordarshan, Singer India, National
Stock Exchange of India and Transworld. This fleet management service include end-to-end
solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience
services and Remarketing.
Maruti Accessories
Many of the auto component companies other than Maruti Suzuki started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to
Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog
lamps, stereo systems, seat covers and other car care products. These products are sold
through dealer outlets and authorized service stations throughout India.
34
A Maruti Driving School
As part of its corporate social responsibility Maruti Suzuki 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.
At the launch ceremony for the school JagdishKhattar stated "We are very concerned about
mounting deaths on Indian roads. These can be brought down if government, industry and the
voluntary sector work together in an integrated manner. But we felt that Maruti should first
do something in this regard and hence this initiative of Maruti Driving Schools."
The Brand Trust Report published by Trust Research Advisory, a brand analytics company,
has ranked Maruti Suzuki in the thirty seventh position in 2013 and eleventh position in
2014 among the most trusted brands of India.
Chairman's Message:
Dear Shareholders,
Another eventful year has passed by and I am happy to share my thoughts with you yet again
on our performance and prospects through this annual report. However, before I proceed
further, I would like to express my heartfelt grief at the unfortunate natural calamity in
Uttarakhand. Let us take a moment to remember those who have lost their lives or have been
impacted by this tragedy.
Last year, I had communicated to you the difficult economic conditions that prevailed in
2011–12. The economy had substantially slowed down; there was high inflation; interest
rates were adversely affecting demand; rise in petrol prices was unprecedented, while the
difference with diesel prices had reached a level that was resulting in a massive swing away
from petrol to diesel cars. I have to regretfully report that 2012–13 was even a worse year for
the economy, and for the manufacturing sector. GDP growth that had fallen to 6.2 per cent in
2011–12, declined further to 5 per cent in 2012–13. The manufacturing sector's growth
35
decreased from 2.7 per cent to 1.9 per cent. The current account deficit for the year was 4.8
per cent, as against 4.2 per cent in the previous year. The dollar fell from Rs. 51 on 31st
March 2012 to Rs. 54 on 31st March 2013. Consumer sentiment, which plays a significant
role in influencing decisions to buy cars, had become even more negative during the year.
And then there was a silver lining. The fiscal deficit was controlled at 5.2 per cent. A decision
was taken that diesel prices would be increased by about Rs. 0.50 per month, and the under–
recovery on this fuel would end in about 18 months or so. The gap between petrol and diesel
prices has narrowed from Rs. 25 in 2012–13 to Rs. 13 presently. To reduce the outgo on
subsidies, a scheme of direct transfer is being gradually introduced. However, results in terms
of better sentiment, or higher investments, or rising consumer demand for cars are yet to be
seen.
The general adverse operating environment was not the only handicap facing us. In July
2012, a section of the workers indulged in a blatantly criminal activity that led to the death of
a valued senior colleague. There was no cause for the workers to go on a violent rampage,
and there was no warning or notice of any brewing dissatisfaction. In fact, the workers'
demands raised in 2011 had been all addressed and resolved. A lock out had to be declared,
as the Company decided that the safety and welfare of our employees had to be given
overriding priority. The management and supervisors of Manesar showed great resilience and
courage, and work resumed after a month when adequate safety arrangements had been
made. Production gradually increased to normal levels.
Your Company has shown that its employees have great resilience and can work with great
resolve to overcome the most difficult situations. During the year, sales volumes increased by
3.3 per cent, while profits increased from Rs. 1,635 crores to Rs. 2,392 crores. Our market
share also went up from 38.3 per cent to 39.1 per cent. I am sure all of you will join me in
saluting the workers, supervisors and management who made this happen.
During 2012–13, following the increase in diesel prices and narrowing of the gap with petrol,
the demand for diesel vehicles also started to fall. During the first three months of this year,
the industry recorded a fall of 10.4 per cent in passenger cars, while utility vehicles' demand
grew by 5.2 per cent.
We are convinced that your Company will remain the market leader and its products will be
the choice of most customers. The first four best selling cars in India are MSIL products. We
are determined to keep introducing products that will ensure our preeminent position.
Consistent with that objective, we are continuing with all our planned investments to increase
production capacity and introduce new products from time to time. Work on the Gujarat site
36
has commenced and we expect to start production by the end of 2015–16. The Manesar 3rd
line will be commissioned soon, as also phase 1 of the diesel engine line in Gurgaon. The
R&D centre continues to develop. We are also investing in strengthening our sales and
service facilities all over the country. The capital investment proposed this year is
approximately Rs. 3,500 crores. And this will only increase as we go ahead.
Suzuki Japan has decided that India will now be responsible for the export markets of Africa,
the Middle East and our neighbouring countries. We have to ensure adequate sales and
marketing arrangements in these countries, with the help of Japan. We also have to determine
the products to be manufactured for these markets and, if necessary, establish assembly plants
overseas. This decision will greatly help the growth of our exports.
We are continuing with our efforts to reduce costs, and localise inner parts. Quality
improvement has also to be a priority. We believe that in the difficult times ahead, the
Company has to make greater efforts than ever before in these directions.
We are now in the election year, and traditionally, the governments in power are reluctant to
introduce unpopular measures at this time. The UPA Government, aware of the way
manufacturing activity is progressing, the current account deficit and the weakness of the
Rupee, is promising several reforms. The Prime Minister is also pushing for the
implementation of infrastructure projects under the PPP model. If all these happen, I believe
there will be a change in sentiment, and car buying may again pick up. The festive season is
also not far away. We are hoping that with steps undertaken by the government, and our own
efforts, we will lead a resurgence in the automobile industry. After all, the leader has that
responsibility.
We all have to be optimists. Along with that, we have to work with determination, resolve
and resilience, and nobody can stop us from being successful. All those who proudly say that
they are Maruti Suzuki employees believe in this, and on their behalf, I can assure you that
we will overcome all obstacles and ensure that the Indian automobile industry has a respected
position in the world.
Regards,
R. C. Bhargava Chairman
37
DATA ANALYSIS AND INTERPRETATION WITH GRAPHS:
5 24 42 29
45 42
40
35
30 29
25 24
20
15
10
5
5
0
Less than 6000K 6001K -10000K 10001K-15000K Above 15000K
Interpretation:
By the above pie chart we know that the customers have an income per month , 10,000 to
20,000 is 42%, above 15000 are 29%, between 6,000 and 10,000 are 24% and less than 6000
are 5%.
38
2) Do you have CAR?
a) YES b) NO
YES NO
97 3
120
100
80
60
40
20
0
YES NO
Interpretation:
By the above pie-chart we know that 97% of the respondents are having their CAR and 3%
are living without CAR. So the study is concentrated on both the type of respondents.
39
a) YES b) NO
YES NO
95 5
100 95
90
80
70
60
50
40
30
20
10 5
0
YES NO
Interpretation:
By this pie-chart we can understand most of the respondents know about the
MARUTI SUZUKI MOTORS LTD Motors limited.
a) YES b) NO
40
YES NO
67 33
80
70 67
60
50
40
33 #REF!
30
20
10
0
YES NO
Interpretation:
By the above pie –chart we know that 67% respondents are using MARUTI
SUZUKI MOTORS LTD CAR and rest of the 33% respondents are not using MARUTI
SUZUKI MOTORS LTD CAR.
5. YES, What is your rating factor for CAR which you will give
41
Quality
62 4 1
Price
46 20 1
55 12 0
Longevity
60
50
QUALITY
40 PRICE
LONGEVITY
30
20
10
0
GOOD FAIR BAD
Others (_)
Interpretation:
By the above bar-chart we know that out of 100 respondents 67% have used the MARUTI
42
SUZUKI MOTORS LTD. Out of 67% respondents 62% people rated good quality, 4%
respondent’s rated fair quality and remaining 1% respondents rated bad quality.
Out of 67% respondents 46% respondents rated good price, 20% respondents rated fair
quality and remaining 1% respondents rated bad price.Out of 67% respondents’
55%respondents rated good longevity and 12% respondent’s rated fair longevity.
60
51
50
40
30
20 17 16
11
10
0
ELECTRONICMEDIA PRINTMEDIA SALESPERSON OTHERS
43
Interpretation:
By this pie-chart we can analyze that most of response came from news paper promotion is
54%,
Through electronic media is 18%, sales persons is 17% and rest of them by others, by this we
known that paper ads are best than others.
a) Offers b) Advertisement
Offers Advertisement Advertisement Free Service Free service and offers All the
above
And offers
8 10 17 42 5 6
44
Interpretation:
By this pie-chart we know that the promotions should be done by free service and
advertisement. PRODUCT PERFORMANCE
1 Quality 48
2 Price 13
3 Brand name 27
4 Free service 12
RESPONSE`
60
50
40
RESPONSE`
30
20
10
Interpretation:
45
From the above analysis we conclude that among 100 customers 48% of the
customers buy MARUTI SUZUKI MOTORS LTD basing on Quality, 13% basing
on price, 27% basing on brand and 12% on free service offer.
9. Since how long you have been using MARUTI SUZUKI MOTORS LTD
CAR.
1 < 1 year 17
2 1 to 3 years 52
3 Above 3 years 31
60 52
50
40 31
30
20 17
10
0
1 2 3
Interpretation:
From the above analysis out of 100 customers when a question was raised
regarding the duration period they have been using the MARUTI SUZUKI
MOTORS LTD. The responded was less that 1 year is 17%, between 1-3 years
52% and above 3 years 31%.
46
10. Are you satisfied with the performance of your CAR?
1 Completely satisfied 69
2 Satisfied 29
3 Not satisfied 2
80 69
70
60
50
40 29
30
20
10 2
0
1 2 3
Interpretation;
From the above analysis we conclude that 69%of the cistomers are completely
satisfied, 29% are just satisfied and 2% of the respondents are not satisfied .
47
11.How comfortable are you while Driving The MARUTI SUZUKI
MOTORS LTD ?
100 95
80
60
40
20
5 0
0
1 2 3
Interpretation:
From the above analysis wee can conclude that out of 100 customers, 95% of the
customers felt good, 5% average ragarding the customers.
48
12.Did you experience any problem with your CAR ?
1) Yes 2) No
90 83
80
70
60
50
40
30
20 17
10
0
1 2
Interpretation:
From the above analysis we conclude that out of 100 respondents 17% of the
respondents experienced problems with their phone and 83% of the respondents said that they
have not experienced any problem with the CAR.
49
13.Would you like to change your CAR?
1) Yes 2) No
1 Yes 98
2 No 2
Changing CAR
RESPONSE`
120
100
80
RESPONSE`
60
40
20
Interpretation:
From the above analysis we conclude that 2% of the customers wanted to change their
CAR and 98% of the customers said not regarding the idea to change their choice from
MARUTI SUZUKI MOTORS LTD to other’s competitors .
50
Service appointment
Appointment system
80 73
70
60
50
40
30 25
20
10 2
0
1 2 3
Interpretation;
Among the 100 customers when a question was raised regarding the
usefulness of service appointment system 25% of the respondent said
completely useful, 73% said useful and 2% said not useful.
51
15.Are you satisfied with the courtesy and friendliness of service personal?
60 54
50
40 36
30
20
10
10
0
1 2 3
Interpretation:
From the above analysis we conclude that 36% of the customers are completely
satisfied, 54% of the customers are satisfied and 10% of the customers are not satisfied
regarding the courtesy and friendliness of the service personnel.
52
SUGGESTIONS
53
LIMITATIONS
54
CONCLUSION
From project conclude that promotion of any service can be successfully executed by
creating awareness through word of mouth and by maintaining the service according to
Advertising and Sales Promotional Activities.
To enable the customers to get in touch with the service personal more easily, the number of
direct phones should be increase or provide the toll free number to give solutions of
constructions.
Periodically, review meetings with the customers in different areas should be convinced, to
have a general consensus regarding problems being faced by them.
To increase sales of the MARUTI SUZUKI MOTORS LTD Motor services, the company
should concentrate on advertisements and try to provide special offers.
If the company reduce the price of the MARUTI SUZUKI MOTORS LTD Motor servicesfor
who purchase huge quantities, then sales will be increased dramatically
55
CUSTOMER PROFILE
Name :
Age :
Sex (m/F) :
Occupation :
Marital status :
Address :
Mobile No :
QUESTIONNAIRE
a) YES b) NO
a) YES b) NO
a) YES b) NO
5. YES, what is your rating factor for CARS which you will give? { }
56
a) Electronic media b) Print media
7 . What way you think promotion of MARUTI SUZUKI MOTORS LTDProducts Should be
done{ }
a) Offers b) Advertisement
8. Which following future made you to buy MARUTI SUZUKI MOTORS LTD?{ }
9. Since how long you have been using MARUTI SUZUKI MOTORS LTD CAR.{ }
1)Yes 2) No
1) Yes 2) No
15. Are you satisfied with the courtesy and friendliness of service personal?
{ }
57
1) Completely satisfied 2) Satisfied 3) Not satisfied
Any suggestions
BIBILIOGRAPHY
58
1. PHILLIP KOTLER Principles of Marketing – 11th Edition
Prentice Hall India.
www.autoindia.com
www.customersopt.org
59