Mohd. Salman BBA-5th Semester (Sec-B) SIP Report

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SUMMER INTERNSHIP PROJECT REPORT SUBMITTED

TOWARDS THE PARTIAL FULFILLMENT OF


BACHELORS IN BUSINESS ADMINISTRATION

TOPIC: Marketing strategies in Fair deals car pvt ltd


(maruti suzuki)

SUBMITTED TO
School of business and management studies

SUBMITTED BY:
Mohd. Salman
BBA-5th semester (sec-B)
Enrollment no: 2018-334-
ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors who


graciously gave me their time and expertise.

They have provided me with the valuable guidance, sustained efforts and friendly approach.
It would have been difficult to achieve the results in such a short span of time without their
help.

I deem it my duty to record my gratitude towards Mr. Matloobullah khan, who devoted his
precious time to interact, guide

and gave me the right approach to accomplish the task and also helped me to enhance my
knowledge and understanding of the project.
CERTIFICATE

This is to certify that Mohd salman a student of BBA-5th semester (section-B) has
successfully completed a summer project titled HUMAN RESOURCE PLANNING in Fair
deal cars PVT LTD under the guidance of MR. Matloobullah khan in the School of
management and business studies.
PREFACE

The need for marketers to be flexible and adaptable to the changing world around them has never
been greater. As competition in markets grows apace and consumers make ever more demands on
the companies from which they choose to purchase, marketers must be increasingly sensitive to a
multiple of shifting social cultural nuances.

This project takes concept from different disciplines like psychology, sociology, and economics. It
attempts to understand the buyer decision making process both individually and in group. It deals
with the physical and mental activities that customers engage in before, during and after purchase.

Considerable efforts have been made to present the study for Marketing Strategy.

In this project, I analyzed the satisfaction level of the customer towards Fair Deal Cars Pvt. Ltd.
product. For this I analyses several different aspects in the form of questionnaire or by micro
analysis. Several types of process are also followed in this project.

Marketing or consumer research is a method by which one can feel the nature of the market. It is
used to find out the attitude of consumer towards the product. It helps in explaining the fact that
how consumer makes decision in favor of certain brands.

I have put in my best efforts to complete this project in every aspect. I have referred all the books
and journals of this esteemed organization in this concern.
TABLE OF CONTENTS

 INTRODUCTION

 COMPANY PROFILE

 REVIEW OF LITERATURE

 CONCLUSIONS & RECOMMENDATIONS


CHAPTER-1
INTRODUCTION
INTRODUCTION

HISTORICAL BACKGROUND OF MARUTI SUZUKI PVT LTD

Maruti Suzuki India Limited (MSIL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the lack
of an efficient public transport system.
Suzuki Motor Company was chosen from seven prospective partners worldwide. This was
done not only due to their undisputed leadership in small cars but also to their commitment to
actively bring to MSIL, contemporary technology and Japanese management practices
(which had catapulted Japan over USA to the status of the top auto manufacturing country in
the world).
A license and a Joint Venture agreement were signed between Govt. of India and Suzuki
Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The Objectives of MUL then were:


1. Modernisation of the Indian Automobile Industry.
2. Production of fuel-efficient vehicles to conserve scarce resources.
3. Production of large number of motor vehicles, which was necessary for economic
growth.
Maruti created history by going into production in a record time of 13 months. On 14
December 1983, the then Prime Minister of India, Mrs. Indira Gandhi, handed over the keys
of the first car to Mr. Harpal Singh of Delhi. Volume targets were routinely exceeded, and in
March 1994, Maruti became the first Indian company to produce over one million vehicles, a
landmark yet to be achieved by any other car company in India. Maruti is the highest volume
car manufacturer in Asia, outside Japan and Korea, having produced over 3.5 million vehicles
by December 2001. Maruti is one of the most successful automobile joint ventures, and has
made profits every year since inception till 2000-01. In 2000-01, although Maruti generated
operating profits on an income of Rs. 92.5 billion, high depreciation on new model launches
resulted in a book loss. Maruti is on track for profits in 2001-02, with a profit of Rs 300
million in the first half. In this period, sales have increased by 5.3%, against an industry
decline of 6.1%.

Maruti revolutionised the way Indians looked at cars. "No other car company so completely
dominates its home market" - (The Economist). Despite there being 11 companies now in the
passenger car market, Maruti holds about 60% of the total market share. MUL is also the first
and only car company in the world to lead its home market in terms of both market share and
in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India Customer
Satisfaction studies).

MARUTI’S QUALITY POLICY

It has always been Maruti’s endeavour to achieve customer satisfaction through continuous
improvement of its product and services by following ‘PDCA’ (Plan-Do-Check-Act) in all
functions of its organisation.

VISION

“The leader in the Indian Automobile Industry, creating customer delight and shareholders
wealth ; a pride of India.”

The case 'Marketing strategies of Maruti Udyog' examines the market expansion strategies
adopted by Maruti Udyog Limited (MUL), India's biggest carmaker, in response to intense
competition and a decline in sales of its bread-and-butter model - the Maruti 800. MUL
enjoyed a near-monopoly status, until the Government of India liberalized the economy in
1991. This led to the entry of foreign players like Hyundai, Fiat, Mitsubishi, and Toyota.
Even Indian auto players like Tata Motors and Mahindra and Mahindra entered the fray to
give MUL tough challenges. MUL began to introduce new models, and upgrade its existing
models in response to market demand. For instance, the company introduced the hatchback
'Swift' to shed its image of being a manufacturer of low-cost staid cars. The case study looks
into how MUL came back from the crunch to retain its place as the top carmaker in India. It
also deals with the tussle between Suzuki Motor Corporation and the Government of India
over ownership issues. The case highlights the promotional offers undertaken by MUL in its
quest for market dominance and examines how the company was able to mould itself
according to the market requirements, by entering new domains and reaching out to potential
customers through its 'True Value' and other promotional offers.

A joint venture between the Government of India and Suzuki Motors, automotive
manufacturer Maruti Udyog Limited has the largest dealer and service network in India and
commands a 60 percent market share of the Indian car market. In the JD Power Survey for
the year 2000, Maruti was ranked number one in customer satisfaction

marking the first instance where a leader in the Indian market was also recognised as a leader
in customer satisfaction. To help maintain this high level of customer satisfaction, Maruti was
looking for a way to speed and streamline information access to ensure the possible response
to customer issues.
CHAPTER-2

COMPANY PROFILE
COMPANY PROFILE

FAIR DEAL

 INCORPORATED IN 1990
 STARTED AS KINETIC DEALER IN DELHI IN 1990.
 WERE AWARDED BAJAJ AUTO DEALERSHIP IN DELHI IN 1995 AND WE
SURRENDERED KINETIC.

 GREW FORM ONE OUTLET TO 5 OUTLETS. ALL IN DELHI OVER A PERIOD


 IN 2006 WERE AWARDED MSIL DEALERSHIP IN  EAST DELHI.

OBJECTIVES OF THE STUDY

The present study of the marketing strategy of the Fair Deal Cars [Maruti Suzuki Pvt.
Limited] revolves around the following broad objectives:
(i) To study the evolution and growth of the Fair Deal Cars [Maruti Suzuki Pvt.
Limited] in the context of the automobile revolution in India;

(ii) To study the growth strategy of the Fair Deal Cars [Maruti Suzuki Pvt. Limited]
and the marketing methods followed by it in this regard.

(iii) To study the small car revolution in India and the contribution of the Fair Deal
Cars [Maruti Suzuki Pvt. Limited] to it.

OUR STRENGTHS

 GREAT VALUES FROM PARENTS


 2 VERY YOUNG BROTHERS AGED 36 YEARS & 33 YEARS MANAGING
 THE GROUP WITH THE HELP OF 550 DEDICATED WORKFORCE.
  BOTH THE BROTHERS HAVE AUTOMOBILE BUSINESS EXPERIENCE OF
NOW ALMOST 2 DECADES 
  MOST OF OUTLETS ARE SELF OWNED.

VALUES

 CUSTOMER OBSESSION
 FAST , FLEXIBLE AND FAST MOVER
 INNOVATION AND CREATIVITY
 NETWORKING AND PARTNERSHIP
 OPENNESS AND LEARNING
Very often, there is an analogy drawn between the state of the great Indian roads and the pace
of economic development in the country. Needless to say, it’s not a very pleasing
comparison. So the average Indian customer who rides the roads of India is naturally
extremely cautious when it comes to investing in a vehicle. Only those rough and tough
enough to survive the potholes and nightmarish surfaces can pass muster. In such a scenario,
a foreign company launching a car in the Indian market was bound to be looked upon with
scepticism and suspicion, more so, if it had South Korean origins. South Korean companies
were perceived not to be quality oriented. The failure of Korean companies like Lucky Gold
star (later to be re-launched as LG, which is another marketing success) and the bad word of
mouth for Daewoo led to this perception.

FUTURE OF CAR MARKET IN INDIA

The Indian automotive market offers tremendous opportunities due to a strong GDP growth,
increased urbanization, an expanding middle class, an upward migration of disposable
incomes and availability of easy financing options. The Indian automotive industry is
dominated by two-wheelers, while cars account for about 10.7 percent of the total industry.
The potential for growth is enormous.

The Indian Government’s Automotive Mission Plan 2006-2016 states that the Indian
passenger car market is expected to reach 3 million by 2015, making India as one of the top
10 car markets in the world. India is also expected to remain as the second-largest two-
wheeler manufacturer, the largest tractor and three-wheeler manufacturer and the fourth-
largest truck manufacturer in the world by 20151. The main considerations driving customer
preference are mainly reliability and economy.

The Swift is considered as Suzuki's most attractive and stylish vehicle. Since launch it has
quickly gone up the sales charts to become one of the 20 top selling models in Japan. There is
a strong India connection for the Swift. From the time Suzuki decided to develop this
Supermini, as the size segment is called in European markets, the Japanese company had
worked on the design and development with engineers from around the world, motoring
enthusiasts and European designers for fine-tuning the looks and performance of the car.
PRODUCT AND SERVICES OFFERED BY FAIR DEALS PVT LTD
What did I learn during my Internship?

During my Internship at Maruti Suzuki, I had to work on a project of manpower setting. I had
to recruit people and assign work to them. For this, I had to have knowledge of the local
language of Gurugram (Haryana). I improved in the fields of Data Analysis, Work and Time
Study, and Project Management.

For my Internship at Maruti Suzuki, I had to move to Gurgaon. This was the first time that I
had ever lived in a city. It was actually amazing to experience a new culture. The busy
lifestyle of people, the shopping malls, the metro rides, the different delicacies were all quite
unique to me. I lived in a PG in Gurgaon which was quite near to the organisation. I used to
visit a nearby park and play cricket which was relaxing. During weekends, I visited many
places in Delhi like Qutab Minar, CP market, Red Fort, India Gate etc. Thus, the experience
was fascinating and I would love to return to Delhi to work for the organisation.

What are the key takeaways from my Internship?


I got an unmatched learning experience during my internship at Maruti Suzuki. Some of the
important takeaways include establishing trust, listening skills, reframing people and
problems, the importance of goals and future scenario development, and understanding
motivation.

All these learnings helped me shape my personality. To sum up, these gave me a foresight to
what I wanted in my future.

 So, the first day is all about orientation and you’re all curious about which
department you will be alloted in, how is the professional life of people in
Maruti, how cars are actually made, what’s the hierarchy of people’s
ranking and lots of other things.

 Once you’re alloted in a peculiar department, you’re alloted a mentor too


and he/she will guide you about all the processes in their shop or ask some
supervisor to do the same. Later on, you may be provided with some Project
depending on your potential and dedication. If you’re not provided any
project , make sure that you ask your mentor to provide you some good
project and assure him that you’re here to learn, explore, get industrial
exposure and not to kill time. In case you’re there just to kill time, you can
do it anyway and nobody will bother you but then you will have to face
with bad reviews at the end of the internship.

 People in Maruti are quite supportive and amiable and you may end up
making good connections with them. Put efforts to make connections with
on line workers as they have thorough knowledge about their work and they
can guide you very well and in complete details. They may even let you do
some basic work at line.

 Visit all the shops and not just your shop. Visiting all the shops will help
you know the real mechanism and connect the dots to each and every step in
car making.

 At last, you will be reviewed by your mentor and the same will be conveyed
on a letter by Departmental Head. That letter will be then forwarded to
Gurgaon Plant with remarks ranging from Poor to Excellent. Finally, you
will be provided with a letter of experience as an intern.

 And yeah, you do get Company Dress too which makes you feel like you
are also a part of MSIL. Though, it’s different from dress of the regular
employees but it feels great.

Summer internship at MSIL for me was a wonderful time and helped me learn a lot about
Automobile Industry.
CHAPTER-3

REVIEW OF THE
LITERATURE
REVIEW OF LITERATURE

In the late 1990s, car manufacturers like Ford, General Motors, and Fiat were faring
miserably in the Indian market. Maruti had a market share of a whopping 79 per cent in the
passenger car segment. Daewoo and Telco were creating hype over the impending launches
of their cars Matin and Indica, respectively. In such a scenario, the top management of
Hyundai Motor India Ltd, which has South Korean origins, had a tough decision to make. It
was a big gamble to go ahead with the launch of the small car –Santro. The Hyundai
management stuck to a simple strategy – launch a quality product in the most promising
segment
with the latest technology and price it aggressively. In the pre-launch period in late 1997, the
company commissioned market research project to understand the
Indian consumer psyche and specify a benchmark for the pricing policy. The results of this
survey and the actions taken thereafter had a bearing upon the success of the product later on.
The Indian consumers showed an immense dislike to the shape of Santro. One consumer even
likened it to a “funeral hearse”. A second important result was that Hyundai is an unknown
brand with
almost zero brand equity amongst Indian consumers. The company immediately undertook
the initiative of reshaping and customising the car for the Indian customer. The tall rear end
was reduced and made more aesthetically appealing. The Santro was all set for the Indian
launch.

MARUTI-MARKETING GENIUS

Here came the most important aspect of the launch – the marketing strategy. This was a
factor that could make or mar the success of the Santro. Hyundai tied up with the advertising
agency Saatchi and Saatchi, who hit upon a novel strategy. Bollywood star Shah Rukh Khan
was roped in to be the brand ambassador. A three-pronged strategy was designed to attract
the consumer:
Educate Indian Consumers about Hyundai
 Create hype and expectations about the Santro
 Explain the virtues of the Santro
The TV & Press Campaign broke in June 1998. The initial TV spots and the press campaign
showed Shah Rukh Khan being approached by a Hyundai official to advertise the Santro.
Shah Rukh was not convinced about Hyundai and he was shown to ask all questions a normal
Indian consumer is expected to ask. What is Hyundai? Why should I advertise for the Santro?
Will it match customer service expectations? What about dealer networks? How can an
international car meet the requirements of Indian roads? As the campaign went through all of
these questions, the Hyundai official answered Shah Rukh Khan. By the time the car was
actually launched, Shah Rukh Khan proclaims, “he is convinced”. He declares that he is now
ready to advertise the Santro since he is certain that the Santro is the car for India. This high
profile campaign backed by some very innovative media buying, which went for maximum
coverage with the minimum budget, broke all grounds in terms of creating consumer
expectations and hype in the market.
Along with the Advertising Campaign, the Sales Team worked burning midnight oil in
creating the dealer network across the length and breadth of the country. The wide dealer
network would prove to be invaluable in ensuring that the Santro would be available to
anyone who wants to buy it. An important pre-requisite for the dealer network was a fully
functional workshop area with imported international standard equipment and engineers
trained in Hyundai’s parent training centre in South Korea and localised training provided in
the Chennai Plant.
CHAPTER-4

CONCLUSION AND
SUGGESTIONS
CONCLUSION

Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor
Corporation of Japan was India’s largest automobile company in 2013. It operated in the
passenger vehicle market and manufactured affordable and fuel efficient cars for the Indian
masses. Maruti 800 was its flagship small sized car and was the best selling car in India since
decades. In 2014, Suzuki launched their global car ‘Swift’ in international markets and later
in India. Swift was the first stylish compact car from the stable of Maruti and was a
differentiator from its earlier products. The launch of Swift had brought Maruti in lime-light
and various global international automobile manufacturers announced their plans to boost
their investments in India and launch competing cars. The competition was expected to
intensify to grab the burgeoning customer base.

The Indian car market currently appears to be at a crossroads, where car marketers are
attempting to change customer perceptions of their brands and where specific buying
motivations appear to be replacing generalities.

The mindset of the Indian consumer is such that he is delighted if he buys a pen a little
cheaper than his neighbor. Things are, however, slowly changing and customers at the upper
end of the market are now ready to pay more for more. I hope that this approach will soon
enter the small car segment, maybe not with the same intensity .

“Success will largely be determined to the extent a company can differentiate itself in terms
of intangibles that go with a car”. Thus, success could well hinge on the best of bundle of
services that a carmaker can provide. Maruti Suzuki grew from zero to the 500,000 mark and
the number One sales spot in India in just five years. Looking at the present scenario it can be
said that though there is lot of competition in the auto world Maruti Suzuki is picking up
well.
RECOMMENDATIONS

Key attribute components:

 Operational attributes.

 Globalization is yet another opportunity, if followed effectively & promptly.

 Brand Image.
 Customer Specific Details.
 An excellent service & support infrastructure.
 Ability to provide the cutting edge technology at best-value-for-money
 Strong customer relationships

 World Class Quality standards maintained for PPP (People, Processes &
Performance). Alliance with global technology leaders.

 The message should to the customers be sent in these components only to have the
maximum benefit from the advertisement.

 With the fast growing economy the pricing strategy needs to be tackled with care as it can
decide upon long term decisions of the company.

BIBLIOGRAPHY

 Marketing Management by Phillip Kotler


 https://www.marutisuzuki.com/channels/arena/all-cars
 https://www.arenaofnitindarea.com/
 https://en.wikipedia.org/wiki/Maruti_Suzuki

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