PROJECT REPORT

ON
MARKETING TECHNIQUES
OF
MARUTI SUZUKI

SUBMITTED FOR THE PARTIAL FULFILLMENT OF AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

GOVERNMENT COLLEGE BAHADURGARH

Submitted To: Submitted By:

Dr. Somjit Neha
Assistant Professor BBA3rdYear
g Deptt. Of Commerce & Management Roll No.-1113848

MAHARISHI DAYANAND UNIVERSITY

SESSION: 2023-2024
 CANDIDATE’S DECLARATION CERTIFICATE

This is to certify that the work which is being presented in the project report entitled “Marketing
Techniques Of Maruti Suzuki” By “Neha” in partial fulfillment of requirement for the award of
degree of BBA submitted to Department of GOVERNMENT COLLEGE, BAHADURGARH at
M.D.U Rohtak is an authentic record of my own work.

Signature of the Student

 ACKNOWLEDGEMENT

I express my sincere gratitude and thanks to Dr. Somjit under his guidance I could complete my
project report being undertaken on the “Marketing Techniques Of Maruti Suzuki” successfully in
time. His meticulous attention and invaluable suggestions have helped me in simplifying the problem
involved in the work. I would also like to thank the overwhelming support of all the people who gave
me an opportunity to learn and gain knowledge about the various aspects of the industry.

Neha
 Table of Contents

1. INTRODUCTION

2. REVIEW OF LITERATURE

3. RESEARCH METHODOLOGY

4. CUSTOMER RELATIONSHIP MANAGEMENT AT MARUTI SUZUKI

5. CONCLUSION

6.BIBLIOGRAPHY
CHAPTER 1
 CHAPTER 1

INTRODUCTION

Automobiles Need And Importance:

Over a period of more than two decades the Indian automobile industry has been driving its own
growth through phases. Indian market is one of the world's largest growing automobile markets.
The first car started moving on the streets of Mumbai in 1898 from then till today automobile
industry has reached the point of zenith. Today Automobile sector is producing large number of
models of passenger cars with various varieties and specialized features. While producing different
models the Producers also keep in mind all the possible expectations and needs of the prospective
consumers. The leading Names prevailing in the Indian Automobile industry include Maruti
Suzuki, Tata Motors, Hyundai Motors, and Hindustan Motors etc.
The automobile sector has been contributing its share to the shining economic performance of
India in the recent years. With the Indian middle class earning higher per capita income, more
people are ready to own private vehicles especially cars. Product movements have boosted in
the salesofmediumsizedcommercialvehicle

AN OVERVIEW OF CAR INDUSTRY

“Automobile industry is the industry of industries.” Peter Drucker

An automobile, autocar, motorcar or car is wheeled motor vehicle used for transporting
passengers; it also carries its own engine or motor. Most definitions of the term specify that
automobiles are designed to run primarily on roads, to have seating for one to eight people, to
typically have four wheels, and to be constructed principally for the transport of people rather than
goods.

The word automobile comes, via the French automobile, from the Ancient Greek word αὐτός
(autós, “self”) and the Latin mobilis (“movable”); meaning a vehicle that moves itself, rather than
being pulled or pushed by a separate animal or another vehicle. The alternative name car is
believed to originate from the Latin word carrus or carrum (“wheeled vehicle”), or the Middle
English word carre (“cart”) (from Old North French), or from the Gaulish word karros (a Gallic
Chariot).
History of automobiles

The birth of the car occurred over a period of years. It was only in 1885 that the first real car rolled
down on to streets. The earlier attempts, though successful, were steam powered road-vehicles.
The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain a speed of up
to 6 kms/ hour. In 1771 he again designed another steam-driven engine which ran so fast that it
rammed into a wall, recording the world‟s first accident.
In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. This was
subsequently used by him to develop the world‟s first vehicle to run on such an engine, one that
used a mixture of hydrogen and oxygen to generate energy. This spawned the birth of a number of
designs based on the internal combustion engine in the early nineteenth century with little or no
degree of commercial success. In 1860 thereafter, Jean Joseph Etienne Lenoir built the first
successful two-stroke gas driven engine. In 1862 he again built an experimental vehicle driven by
his gas-engine, which ran at a speed of 3 kilometers per hour. These cars became popular and by
1865 could be frequently espied on the roads. The next major leap forward occurred in 1885 when
the four stroke engine was devised. Gottileb Damlier and Nicolas Otto worked together on the
mission till they fell apart. Daimler created his own engines which he used both for cars and for the
first four wheel horseless carriage.

In the meanwhile, unknown to them, Karl Benz, was in the process of creating his own advanced
tri-cycle which proved to be the first true car. This car first saw the light of the day in 1886. The
season of experiments continued across the seas in the United States where Henry Ford began work
on a horseless carriage in 1890. He went several steps forward and in 1896, completed his first car,
the Quadricycle in 1896. This was an automobile powered by a two cylinder gasoline engine. The
Ford Motor Company was launched in 1903 and in 1908 he catapulted his vehicle, Model T Ford
to the pinnacle of fame. Continuing with his innovations, he produced this model on a moving
assembly line, thus introducing the modern mass production techniques of the automobile industry.
The modern car therefore comes from a long list of venerated ancestors.
 AUTOMOTIVE INDUSTRY IN INDIA

The automotive industry in India is one of the largest in the world and one of the fastest growing
globally. India manufactures over
17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every
year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding
8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the
seventh largest in the world, with an annual production of more than 3.7 million units in 2010.

According to recent reports, India is set to overtake Brazil to become the sixth largest passenger
vehicle producer in the world, growing 16-18 per cent to sell around three million units in the
course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars,
behind Japan, South Korea, and Thailand. As of 2010, India is home to forty million passenger
vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an
increase of 33.9%), making the country the second fastest growing automobile market in the
world. According to the Society of Indian Automobile Manufacturers, annual car sales are
projected to increase up to five million vehicles by 2015 and more than nine million by 2020. By
2050, the country is expected to top the world in car volumes with approximately six hundred and
eleven million vehicles on the nation's roads.

The Indian automobile industry is manufacturing over eleven million vehicles and exporting about
1.5 million every year. The
dominant products of the industry are two wheelers with a market share of over 75% and passenger
cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of
the market between them. About 91% of the vehicles sold are used by households and only about
9% for commercial purposes. The industry has attained a turnover of more than USD thirty five
billion.

The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very
small numbers. Embryonic automotive industry emerged in India in the 1940s. Mahindra and
Mahindra was established by two brothers as a trading company in 1945, and began an assembly
of Jeep CJ-3A utility vehicles under license from Willys. The company soon branched out into the
manufacture of light commercial vehicles (LCVs) and agricultural tractors. Following the
independence in 1947, the Government of India and private sectors made efforts to create an
automotive component manufacturing industry to supply to the automobile industry.

However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the
license raj which hampered the Indian private sector. After 1970, the automotive industry started to
grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were
still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the
establishment of Maruti Suzuki Udyog. A number of foreign firms initiated joint ventures with
Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-
ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian
government chose Suzuki for its joint-venture to manufacture small cars.
 Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a
number of Indian and multi- national car companies launched operations.

Since then, automotive component and automobile manufacturing growth has accelerated to meet
domestic and export demands. Following economic liberalisation in India in 1991, the Indian
automotive industry demonstrated a sustained growth as a result of increased competitiveness and
relaxed restrictions.

Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and
Mahindra expanded their domestic and international operations. India's robust economic growth
led to the further expansion of its domestic automobile market which attracted a significant India-
specific investment by multinational automobile manufacturers.

In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and grew
rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales
in India progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in
2009 (whereas this figure reached 80% in Switzerland for example). This progression is unlikely to
stop in the coming decade.
PROFILE OF MARUTI SUZUKI

Maruti Suzuki India Limited, a partial subsidiary of Suzuki Motor Corporation of Japan, is India's
largest passenger car company, accounting for over 45% of the domestic car market. It was the
first company in India to mass-produce and sell more than a million cars. It is largely credited for
having brought in an automobile revolution to India. It is the market leader in India and on 17
September 2007, Maruti Suzuki Udyog Limited was renamed Maruti Suzuki India Limited. The
company's headquarters are located in New Delhi.

Maruti Suzuki is the leading automobile manufacturer of India and Nepal, and the market leader in
the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently,
18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The
BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10
May 2007, the Government of India sold its complete share to Indian financial institutions. With
this, Government of India no longer has any stake in Maruti Suzuki Udyog.
HISTORY OF MARUTI SUZUKI

Maruti Suzuki Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with Maruti Suzuki 800, based on the Suzuki Altokei car which, at
the time, was the only modern car available in India, its only competitors- the Hindustan
Ambassador and Premier Padmini, which were both around 25 years out of date at that point.
Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzuki is sold in India
and in various several other countries, depending upon export orders. Models similar to Maruti
Suzuki (but not manufactured by Maruti Suzuki Udyog) are sold by Suzuki Motor Corporation and
manufactured in Pakistan and other South Asian countries.

The company annually exports more than 50,000 cars and has an extremely large domestic market
in India selling over 730,000 cars annually.

Maruti Suzuki 800, till 2004, was the India's largest selling compact car ever since it was launched
in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti
Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling in A2 segment.

Due to the large number of Maruti Suzuki 800s sold in the Indian market, the term “Maruti
Suzuki” is commonly used to refer to this compact car model (“Maruti” is another name of the
Hindu god, Hanuman). More than half the cars sold in India are Maruti Suzuki cars. As already
mentioned, the company is a subsidiary
of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is
owned by public and financial institutions. Nearly 75,000 people are employed directly by Maruti
Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in
India from 1999 to 2011 by J D Power Asia Pacific.
PRODUCTS AND SERVICES
FUTURE CHALLENGES AHEAD OF MARUTI

Suzuki Maruti Suzuki has always been identified as a traditional carmaker producing value-for-
money cars, and now the biggest hurdle Maruti Suzuki is facing is to shed this image. Maruti
Suzuki wants to change it for a more aggressive image. Maruti Suzuki Baleno has failed due to one
of the major reasons being that customers could not identify Maruti Suzuki with a car as
sophisticated as Maruti Suzuki Baleno. Maruti Suzuki is looking forward to bringing about a
perception change about the company and its cars. Maruti Suzuki started the exercise with the
new-look Zen, and Suzuki's decision to pick India as one of the first markets for this radically
different-looking car gave this endeavour a new thrust. Maruti Suzuki has also changed its logo at
the front grill. It has replaced the traditional Maruti Suzuki logo on grill „stylish „M‟ with S‟. The
major thrust in the facelift endeavour is with the launch of 1.3 litre Swift. It‟s a style statement
from Maruti Suzuki to Indian market. The next threat Maruti Suzuki faces is the growing
competition in compact cars. Companies like Toyota, Ford, Honda and Fiat have come with small
segment cars.

Ford has launched Focus and Fiesta; General Motors, Aveo in 2006; Chevrolet, Spark in 2006;
Hyundai, its new compact car in 2006; Honda, Jazz in 2006, General Motors has reduced the
prices of its Corsa, Fiat has come up with Panda and new Fiat Palio. Skoda has launched Fabia.
This competition poses a major threat to Maruti Suzuki leadership in compact cars. New emission

norms like Bharat Stage 3 which has come into effect from April 2005 have increased car prices by
Rs.20000 and Bharat Stage 4 has come into force in 2007 has contributed in increasing car prices
further. This could be of serious concern to Maruti Suzuki which is a low-cost provider of
passenger cars. Rise in petrol prices and growing popularity of other substitute fuels like
Compressed Natural Gas (CNG) will be another threat to Maruti Suzuki. There is also a threat to
Suzuki from R&D investment by Toyota and Honda in Hybrid cars. Hybrid cars could run on both
petrol and gaseous fuels. There is a threat to Maruti Suzuki models ageing. Maruti Suzuki models
like Maruti Suzuki 800 which is in market for the last twenty years and others like Zen and Esteem
which have also entered the decline phase are the other threats. Maruti Suzuki is planning phased
out Zen in 2007 and there were rumours of phasing out Maruti Suzuki 800 also. This all makes
Suzuki to replace these brands with new launches. As Swift and WagonR are replacing the Zen
market, Maruti Suzuki will have to keep on making modifications in its present models or else its
models will face extinction.
MARKETING TECHNIQUES OF MARUTI SUZUKI

There are five successful marketing techniques-

Keep Adding Something New-

The Indian car manufacturers are very smart. They know very well that a customer will be
attracted towards theirs models only if they keep on adding something new and innovating. These
are basically these advantages of adding innovation to a product-

(a) It attract new customers who were earlier not interested in your product/ model

(b) It generates repeat sales because people want to also buy the latest model car along with the
previous model.

(c) People keep on telling the advantages and features of the new models of the cars to their
associates and relatives which in turn increases the number of customers for the car manufacturers.

Distinguish And Separate The Firm From That Of Competitors

Indian car manufacturers create some difference in their models which make them different from
competition. It pushes the buyers to get attracted towards the particular model which is different
from other passenger cars.
Become A Valuable Resource-

The Indian car manufactures have started becoming a valuable resource for their customers. They
provide full knowledge to the customers when the customers go inside their outlets to purchase any
car. This knowledge creates new buyers because knowledge of that customer about any particular
model get transferred from one customer to another.

Promote The End Result-

Customers never want any product or service really. They only want the benefit produced by it so
any car manufacturer must see that the benefits produced by their model must satisfy the
customers.

Anticipate Change –

Change is the law of nature so Indian car manufacturers always keep on changing something on
the other in their models. They know that change is the biggest challenge to their business success.
They try to bring more innovative and fruitful changes than that by competitors to attract new and
more customers.

Marketing Management:

Marketing management is a business discipline which is focused on the practical application of

marketing techniques and the management of a firm's marketing resources and activities. Recently,
due to globalization it has become compelling and compulsory for the firms to market their
products beyond the borders of theirs nation. To create an effective cost efficient marketing
management strategy firms must possess a detailed, objective understanding of their business and
the market in which they operate

MARKETING METHODS

There are different methods which the Indian car manufacturers use to sell their products. The
various methods are as follows –

ADVERTISING

India car manufacturers like Maruti Suzuki, Tata Motors, Hyundai spend huge amount of money
on advertising their models to increase the sales.

DIRECT MARKETING-

Direct marketing refers to reaching the perspective customers directly and telling them about the
features and merits of the products and services which one wants to sell or offer.

PUBLICITY-

Publicity is done to inform the public about any product. The Indian manufacturers often
participate in Auto Expo's and fairs to publicize their models.

INDIRECT MARKETING-

The marketing in which lot of intermediaries are involved is termed as indirect marketing. Under
this type of marketing there is no direct contact between the manufacturer and customers. The
intermediaries like wholesalers and retailers take a fix percentage of commission for helping in
the sale of the product. As for as the passenger car market is concerned the intermediaries
involved in sale of cars are known as agents or brokers who help in the sale of the four wheelers
and get a fix commission from the manufacturers There are many methods which are used in
Marketing.

The most commonly used are listed above other methods used in marketing are- Positioning,
Relationship marketing, salesman ship, viral marketing etc.
DISTRIBUTION CHANNELS:

Maruti Suzuki- According to the latest references India's top car maker aruti Suzuki is expanding
its distribution network and is planning to add 200 more dealerships as demand has increased in
the auto sector. The company's chief general manages marketing Mr. Shashank srivastava said
maruti currently has 800 plus outlets covering more than 500 cities.

The company is also concentrating on the rural market. Srivastava said that in the year 2009-2010
the company did very good sales in the rural areas. He said that Maruti has good
ground in the sural market too and the company will make more efforts to reread their distribution
in rural and sub-urban areas.

MARKETING PLANS AND PROGRAMMES:

Maruti in order to maintain its number 1 position in Indian passenger car market keeps on
planning some thing new and different from competitors According to recent references Maruti
Focuses on rural market, plans to double outlets, says the hindu Business line. Maruti Suzuki
plans to double the number of its outlets in rural India from the present 231 to 450 in the next two
years. Also after two years the total number of dealerships will be around 1000. in other words
we can say that the retail outlets will account for 50% of Maruti's network (550 will be located in
urban centers) at present retail outlets cover only 35% of Maruti's network. This objective is also
part of Maruti's mid- term plan to generate sales of 2.5 lakh cores annually from rural India,
which in turn will go a long way in helping Maruti to meet its target of a million vehicles in the
domestic market by 2011-2012.

Mr. Shashank Srivastava chief General Manager (Marketing) told Business line that in the initial
stage volumes from the rural outlets will be small. Maruti has an exclusive rural marketing
department which employs 2500 rural development sales executives. In all it has 15000 such
executives and lot of special schemes.
 MARKETING DECISIONS:

Maruti Suzuki always take rational decisions keeping in mind the success of the company and at
the same time the satisfaction and desires of the customers. Maruti while launching any new
model always take into account the pockets of the Indian buyers. Maruti Drops Their Plan of
Launching 'K' Cars in India- Maurti Suzuki has recently droped the plan of launching its 16k' Cars
(660CC) into the Indian auto market. This is because the company believes that the prices of Cars
will not be in lines with the financial plans of most Indian customers. The 'K' Cars were displayed
at the 2012 Expo. The chairman of Maruti Mr. R.C. Bhargave says that 'K' Cars are not going to
be launched as they have turned out too costly and expensive for the Indian market. Maurti Suzuki
is questioning and doubting the customers on the amount they would be willing to spend for
getting these cars, says Bhargava. He also told that Indian market normally works on the principle
that the smaller a Car engine was the lesser its price would b. He said, that these cars did 96 not
resemble Nano, and had greater sophistication as well as higher technological levels including
aluminum engines. These 'K' Cars have been designed to after optimum Fuel economy. These cars
have a mileage of 30.2 KM/L ranking them amongst the top in the, list of petrol operated cars in
the world.

MARKETING OF PASSENGER CARS IN INDIA

Marketing Elements And Study Methods:

Marketing elements comprise of the four P's of marketing which constitute the marketing mix.
Marketing Mix is the combination of elements of marketing and what role each element plays in
promoting the products and services of the firm and delivering those products and services to the
customers. The elements of the marketing mix are also referred as five P's of marketing of years
marketers referred to the 4 P's of marketing only recently a 5th P has been added.

The Four P's of Marketing Mix-

(a) Product -

The products or services offered by a manufacturer to his customers.

(b) Price –

The price of the product or services so that the price remains competitive but allows the
manufacturer to make a good profit (without exploitation of the consumer).

(c) Place (Also Referred As Distribution) –

It means where the business products and services will be sold and how will the products and
services reach the customers.
(d) Promotion - The methods used to communicate the features and benefits of the products
and services to the prospective and target customers.
The 5th P of Marketing –

(e) People –

The 5th P has been added recently by few marketing theorists. They say that this 'P' refers to
'people' which include the 'people' who work for the manufacturer. 'People' means how the
expertise of the manufacturer including all those who work under nine. This 'p' says that people
can influence marketing and expertise of the people can take business and firm above the
competitors.

METHODS OF MARKETING-

There are various methods which the marketing use to attract the consumers. For example
according to latest references auto firms Like Maruti Suzuki, Hyndai, Tata Motors are making
efforts to tap custumers on facebook and Twitter. The above mentoned automobile companies are
trying to tap the younger customers and they are increasing their expenses to market their products
through sites like Facebook and Twitter.
CHAPTER 2
 CHAPTER 2
REVIEW OF LITERATURE

Maruti Suzuki, India's leading automobile manufacturer, has long been recognized for its innovative
and effective marketing techniques in the automotive industry. Over the years, numerous scholars
and industry experts have analyzed and documented the marketing strategies employed by Maruti
Suzuki to achieve and sustain its market dominance.

Branding and Positioning

A cornerstone of Maruti Suzuki's marketing approach is its strong emphasis on branding and
positioning. Scholars such as Kotler and Keller (2016) have highlighted the company's strategic
efforts in building a powerful brand image that resonates with Indian consumers. Maruti Suzuki's
branding strategies focus on reliability, affordability, and customer-centricity, which have
contributed to the brand's widespread acceptance and trust among consumers across diverse
segments.

Product Innovation and Differentiation

Maruti Suzuki's success can also be attributed to its consistent emphasis on product innovation and
differentiation. Studies by Jain and Kapoor (2018) have underscored the company's ability to
introduce technologically advanced and feature-rich vehicles that cater to the evolving needs and
preferences of Indian consumers. By continuously upgrading its product portfolio with cutting-edge
features and design enhancements, Maruti Suzuki has effectively differentiated itself from
competitors and maintained its market leadership position.

Distribution and Channel Management

The effectiveness of Maruti Suzuki's distribution and channel management strategies has been
extensively analyzed by scholars such as Rangan and Kasturi (2017). The company's extensive
network of dealerships and service centers, coupled with efficient supply chain management
practices, ensures widespread availability of its vehicles and seamless customer service experience.
Maruti Suzuki's robust distribution network plays a pivotal role in reaching out to customers in both
urban and rural areas, thereby enhancing market penetration and brand visibility.

Digital Marketing and Social Media Engagement

In the era of digitalization, Maruti Suzuki has adeptly leveraged digital marketing channels and
social media platforms to engage with its target audience and amplify brand awareness. Research by
Sharma and Singh (2019) has highlighted the company's strategic use of digital advertising,
interactive website interfaces, and social media campaigns to connect with consumers, solicit
feedback, and address customer inquiries promptly. Maruti Suzuki's proactive approach to digital
marketing underscores its commitment to staying abreast of technological trends and engaging with
consumers in an increasingly digitalized marketplace.
In summary, the literature review underscores the significance of Maruti Suzuki's marketing
techniques in driving its sustained growth and market leadership in the Indian automotive industry.
Through strategic branding, product innovation, efficient distribution, and digital engagement
initiatives, Maruti Suzuki has successfully carved a niche for itself and established a strong foothold
in the highly competitive automotive market.
CHAPTER 3
 CHAPTER 3
RESEARCH METHODOLOGY

A research process consists of stages or steps that guide the project from its conception through the
final analysis, recommendations and ultimate actions. The research process provides a systematic,
planned approach to the research project and ensures that all aspects of the research project are
consistent with each other. Research studies evolve through a series of steps, each representing the
answer to a key question. This chapter aims to understand the research methodology establishing a
framework o f evaluati on and revaluation of primary and secondary research. The techniques and
concepts used during primary research in order to arrive at findings; which are also dealt with and
lead to a logical deduction towards the analysis and results.

Research Design

I propose to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which certain
issues shall be selected, which I feel remain unanswered or liable to change, this shall be further
taken up in the next stage of exploratory research.
This stage shall help me to restrict and select only the important question and issue, which inhabit
growth and segmentation in the industry. The various tasks that I have undertaken in the research
design process are:

• Defining the information need.

• Design the exploratory, descriptive and causal research.

Data Collection

Data collection took place with the help of filling of questionnaires. The questionnaire method has
come to the more widely used and economical means of data collection. I found it essential to
make sure the questionnaire was easy to read and understand to allspectrums of people in the
sample. It was also important as researcher to respect the samples time and energy hence the
questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes.
These questionnaires were personally administered. The first hand information was collected by
making the people fill the questionnaires. The primary data collected by directly interacting with
the people.
SUMMARY OF FINDINGS

76% of the respondents were owners of Maruti Suzuki

83% of the Respondents were satisfied with their cars and the services of Maruti Suzuki
However

18% of the respondents would prefer

to buy a Maruti Suzuki car against its competitors

Information through Internet and Print media accounts for more than half or 75% of the

information shared with the masses. Rest 25% was shared by

T.V. and Dealers for providing the information 78% of the respondents felt that Maruti Suzuki has
the most fuel efficiency

70% of the respondents felt that the features of the Maruti Suzuki are good. While 8%
respondents thought it was not so good, 10% thought it was very good and 12% felt satisfactory
about the features Maruti Suzuki is best known for its design

comfort. Then comes Handling and Fuel Efficiency. If Maruti Suzuki is made more
affordable then it would win more customers, a theory which was

more service stations. To make it the best car in its class it should be made more futuristic which
was felt by 60% of the

have a retro look and 15% wanted to give it a concept car look.
CHAPTER 4
 CHAPTER 4

CUSTOMER RELATIONSHIP MANAGEMENT AT MARUTI SUZUKI

The Data base

The database is the pre requisite for any kind of data analysis that is done in the analytical CRM
module. Since Maruti has established network of data centers through dealer transactions and toll
free number-call center data capturing etc. Maruti through various channels.

Those are the following.

1) Any Time Maruti-

toll free call center (operated by HCL Technologies at Noida). All kinds of queries are logged at
(ATM) and the kind of information received into the following areas.

a) New sales queries due to campaigning or advertising by Maruti

b) Existing customer sales queries/complaints
c) Service complaints These databases are automated to get migrated with respective operational
CRM software modules from the call Centre.
2) Dealer Management System

(DMS), dealer transaction module which is connected through extranet to the central server of
Maruti.

a) All the queries (sales/service/true value) are logged onto the DMS portal by the channel
partners.

b) The same data is migrated to the Microsoft dynamics Software at Maruti.

The database from these sources is used for need analysis after the data is cleaned using various
data warehouse/data mining techniques.

The database from these sources is used for need analysis after the data is cleaned using various
data warehouse/data mining techniques.
SALES AND SERVICE NETWORK

As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in allstates
and union territories of India. It has 3,060 service stations (inclusive of dealer workshops and
Maruti Authorized Service Stations) in 1,454 towns and cities throughout India. It has 30 Express
Service Stations on 30 National Highways across 1,436 cities in India. 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 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.

In the year 2015 Maruti Suzuki launched a new premium sales channel called NEXA. Maruti
Suzuki India Limited’s Managing Director & CEO, Kenichi Ayukawa said: “NEXA provides a
new experience of hospitality from Maruti Suzuki. Indian market and Indian society are rapidly
changing and new segments of customers are emerging. We have to take new initiatives to meet
diversifying expectations from our customers”.

He added: “The mission of NEXA is to offer innovative value and direction so that we can
adequately respond to the new segments of Indian customers and offer them the experience which
they value. While we will of course continue to enhance customer satisfaction in our current
network, with NEXA, I am
confident Maruti Suzuki will be able to cater to a broader range of customers who value
pampering, innovation and a personal touch in their car owning experience”. S-Cross, India’s first
premium crossover that debuts in August 2015 will be the first car to be sold under NEXA. Several
new models will be added to both channels as part of the Company’s medium term goal of 2
million annual sales by 2020.
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 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 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 Maruti Udyog 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 Suzuki holds the remaining 26%. 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.

MARUTI TRUE VALUE

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 31 March 2010 there are 342 outlets.
N2N FLEET MANAGEMENT

N2N is the short form of End to End Fleet Management and provides lease and fleet management
solution to corporate. 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. These fleet management services 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.
DRIVING SCHOOL MARUTI

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 modeled
on international standards, where learners go through classroom and practical sessions.

Many international practices like road behavior and attitudes are also taught in these schools.
Before driving actual vehicles participants are trained on simulators.

A launch ceremony for the school Jagdish Khattar 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".

EXPORTS

Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it
does not operate in the domestic Indian market. The first commercial consignment of 480 cars was
sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed
the benchmark of 300,000 cars. Since its inception export was one of the aspects government was
keen to encourage.
 DEMAND OF MARUTI UDHYOG AND ITS DISTRIBUTION STRATEGY

The movement along a demand curve caused by a change in the price of the good. This should be
contrasted directly with a change in demand, one might also want to review the terms change in
quantity supplied and change in supply, as well. A change in quantity demanded means that we
have identified a NEW quantity on the existing demand curve. In contrast., a change in demand
means that we have changed, moved, or shifted
, the entire demand curve, the whole range o prices and quantities has changed. Car Sales in India
are expected to slow down and may be even register a drop for the first time in nine years
according to the country’s top industry body.

The Society of Indian Automobile Manufacturers has said passenger cars could see a slow down
in 2011-2012 despite record sales in January. High fuel costs and interest rates are expected to
remain high forcing car buyers to postpone purchases. Car sales in February and March will decide
if over all sales for the fiscal year will be better than the previous fiscal. SIAM has said there is a
possibility of sales growth slowing down. Car sales have declined by 1.19 per cent in the first 10
months of the year.

There has to be 12% increase in the next two months if sales for the fiscal year have to remain in
the black. SIAM which had predicted a 16%-18% growth in this year down graded it to 10% to 12
% in the middle of last year and then brought it down to 0% to 2%. The companies that have
suffered the steepest drop in sales have been Maruti Suzuki, Hyundai Motors and Honda.
While Maruti Suzuki saw a drop in production due to strikes, Hyundai’s sales fell in some months
due to the drop in demand for petrol cars. Honda also saw a decline due to the non availability of
diesel cars in its line up. Further it also suffered a slump in production due to the short supply of
parts from Thailand. While Maruti Suzuki is expecting to end this year with a slight drop in sales,
Hyundai has recovered and has recorded a 12% per cent increase in January 2012 sales. Toyota has
been the biggest gainer in January after posting a 90% increase in sales.
 AWARENESS METHODS FOR CONSUMERS AND MARKETING

Consumer awareness is about making the consumer aware of his/her rights. It is a marketing term
which means that consumers are aware of products or services, its characteristics and the other
marketing P’s (place to buy, price, and promotion).Though the first consumer movement began in
England after the Second World War, a modern declaration about consumer’s rights was first made
in the United States of America in 1962, where four basic consumer rights (choice, information.
safety and to be heard) were recognized. Ralph Nadar, a consumer activist, is considered as the
father of ‘consumer movement’. March 15 is now celebrated as the World Consumer Rights Day.
The United Nations in 1985 adopted, certain guidelines to achieve the objectives of maintaining
protection for consumers and to establish high level ethical conduct for those engaged in
production and distribution of goods and services. High prices, duplicate articles, underweight and
under — measurements, rough behavior, undue conditions, artificial scarcity are some of the ways
by which consumers are exploited by manufacturers and traders. Limited information, limited
supplies and low literacy are factors causing exploitation of consumers. In India, the concept of
consumer protection is not new. References to the protection of consumer’s interest against
exploitation by trade and industry, underweight and measurement, adulteration and punishment for
these offences, were made in Kautilys’s ‘Arthashastra’. However, an organized and systematic
movement to safeguard the interest of consumers, is a recent phenomenon. The consumers have to
be
aware not only of the commercial aspects of sale and purchase of goods, but also of the health and
security aspects.This called for strong legal measures to ensure that the manufacturers and sellers
observe uniformity and transparency in prices, stocks and quality of their goods. Enactment of
Consumer Protection Act, 1986 was one of the most important steps taken to protect the interests
of consumers. The provision of the Act came into force, with effect from July 1, 1987. The act
recognizes consumer’s right to seek redresses and right to consumer education. The salient features
of the Act are as follows:

• Applies to all goods and services unless specifically exempted by the Union Government;

• Covers all the sectors whether private, public or cooperative;

• Enshrines the consumer’s rights related to safety, information, choice, representation and
redress and consumer education

• The act gives consumers an additional remedy besides those which may be available to them
under the provisions of other existing laws and they are free to choose the remedy.

• Empower consumers seeking discontinuance of certain unfair and restrictive trade practices,
defects or deficiencies in services arid stopping in services or withdrawal of hazardous goods from
the market.

There are 500 consumer associations, which are working in the field of consumer protection. They
deal with various aspects of consumer exploitation. Some of the prominent ones are: Consumer
Guidance Society of India, Murnbai Citizens Action group, Mumbai; Common Cause New Delhi;
Voice, New Delhi; Consumer Utility and Trust Society, Jaipur

MARUTI TO EXPAND DISTRIBUTION NETWORK BY 200 MORE DEALERSHIPS

India’s top car-maker, Maruti Suzuki, is expanding its distribution network and plans to add 200
more dealerships, as demand has picked up in the auto sector Bangalore: India’s top car-maker,
Maruti Suzuki, is expanding its distribution network and plans to add 200 more dealerships, as
demand has picked up in the auto sector.

The company’s chief general manager (Marketing), Shashank Srivastava, said Maruti currently has
800-plus outlets covering more than 500 cities. “Our intention is to take up the number of outlets to
1,000 this fiscal,” he said.

The company is also betting big on the rural market. “Last year, we did very good sales in rural
areas, where the growth was very, very good. Nearly l7% of our sales were in the rural segment
against 9% in the previous year (2008-09),” Srivastava told PTI. “We have gained good ground in
the rural market and we will continue on that,” he said.

He said the company was also focusing on the corporate sector, as it sees demand going up in this
space.

STRATEGY OF PHYSICAL DISTRIBUTION

Maruti has a number of outlets which enables it to supply its models wherever for any of its
models. Its two facilities at Gurgaun and Manesar have great production capacity per year Maruti
supplies the required models at the required cities or states with the help of its supply department.

There was a time in 1983 when Maruti 800 was introduced. There were millions of customers
who were attracted towards this model, but Maruti never gave any opportunity of its demand being
more than supply because of its excellent distribution strategy.

Maruti at present has 600 New car sales outlet covering around 600 cities, it has 265 Maruti true
value outlet spread across 250 cities, 2628 Maruti authorized service stations covering more than
1220 cities. Hence, we can say that Maruti has a very strong physical distribution strategy which
helps it to maintain it position of being the leader of passenger car market.
 THE CONSUMER BEHAVIOR REGARDING AUTOMOBILE SECTOR

Customer Perception is also known as geographical market analysis and it is the Easiest Way to
Identify Where Your Customers Come From and Who They Are. This project focus on to know
the profile and from which geographical part of Gwalior the potential customer of Maruti Suzuki
cars can be and what is the consumer behavior of various users of cars like how many cars do they
have and after how much do they like to change their cars . The whole survey has been done in
various parts of Gwalior city like Focal Point, Industrial Area, Gwalior (M.P.). So, in this research
I studied the Perception of the customers and behavior of the customers. So, overall it was great
learning experience for me to get such an intro spect about automobile industry and various aspects
related to its marketing strategy.

Map Customer Locations

Create a "pin map" of where your customers live. Find out at a glance what parts of town you draw
from and where to advertise. If you have your names and addresses in a data file, you can order
right now with no payment required in advance.

Identify Your Trade Area

Map your customers to see what your trade area is. Compare your customers with the market
potential to see your market penetration.
Define Customer Profile

Once you have your customers mapped, you can analyze the demographic characteristics and
define a profile of your best customers. From this it is a short step to finding more potential
customers like them.

Customer Perception

Customer Perception shows organizations which neighborhoods and markets they are serving
with their products. The results of customer Perception can often be surprising and show trends
that were otherwise unknown. In addition, customer Perception can be applied not only to an entire
client database, but also to selected kinds of customers such as:

• Those who have bought certain products, or certain services.

• Those whose purchases exceed a specified amount gain the greatest value from Customer
Perception, it can be combined with market share analysis to reveal the strongest areas that are
being reached, and those that are not being reached.
 STRATEGIES FOR CUSTOMER PERCEPTION

What is a geographic market worth to your business? Perception Analytics will help you find the
answer. Market potential can be expressed as a function of:

• The number of customers purchasing.

• Amount purchased.
• Frequency of purchase.

In other words, market potential = (how many * how much * how often).

Bottom Up or Top Down Market Analysis

It all depends on your specific needs. Perception Analytics can advise you on the best approach to
sizing any market. We employ various methodologies and data sets to get you the answers you
need.

• A bottom up approach to market sizing starts with your customers. How much and often do
they buy? What is their profile? How many potential customers do you have in the market based on
your customer profiles? How can you reach them?

• A Top down approach starts with market and industry data. It takes a close look at a geographic
market area and profiles the consumers and/or businesses to let you know their propensity to buy
your products and services. Perception Analytics has
expertise in both these approaches to market sizing. We also have a wealth of data sources through
partnerships with the best data providers in the industry.

CUSTOMER PROFILING

Customer profiling services from Perception Analytics create descriptive segments or groups of
your customers. Each segment has specific defining characteristics. A customer segment is not as
simple as applying a demographic label, such as "women age 45- 54" or "businesses with revenue
>$500 million. "Those descriptions alone won't tell you enough about your customer.

For example, not all women age 45-54 have the same tendency to purchase your products. So a
profile like this may not help you much, and you may waste resources marketing and selling to the
wrong people. That's why Perception Analytics takes a more comprehensive and disciplined
approach to customer profiling. We use your own customer data, lifestyle cluster data, and
analytical techniques. The result is a more accurate description of your customer that can be used
to identify areas where you can find more of your best customers.
CHAPTER 5
 CHAPTER 5

CONCLUSION

I have analyzed the attached Balance Sheet of (Maruti Suzuki India Limited Formely Maruti
Udyog Limited), as of Five years comparison and the related Profit and Loss Account and Cash
Flow Statement for the year ended on that dates Annexed thereto
!These financial statements are the Responsibility of the company's management. My pleasure is to
express an opinion on these financial statements based on analysis Those Standards an analysis
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An analysis also includes assessing the accounting principles used and
significant estimates, marketing Techniques, HRM strategies, financial position of the Maruti
Udyog Limited. The company analysis done by me on Maruti Udyog Limited, sorted out that the
automobile industry in India is prosperous and growing with innovating technology. Cars in the
market through different marketing strategies such as pricing strategy, products development etc.
Finally “Maruti Udyog Limited” has it financial trend in ascending order from previous four years.
Thus, Maruti Udyog Limited, is counting its profits, and fulfilling the Social responsibility, by
making its tag line to be implemented i.e.
LIMITATIONS OF THE RESEARCH PROJECT

The research study suffers from following limitations:

customer in the available short span of time. Generally, the respondents were busy in their work
and were not interested in responding

. Respondents were reluctant to disclose complete and information about themselves and their
organization.

Most respondents were reluctant to provide exact information as in why they preferred particular
company’s car.

The research was conducted in present prevailing conditions.

There can be some fluctuations in the market, which can offset the findings.

The project is carried out for the period of 45 days only.

Measurement of customer satisfaction is complex subject, which uses non- objective methods,
which are not reliable.
RECOMMENDATIONS

Maruti Suzuki should increase their service stations Facilities regarding after sales services
should be increased
People were aware about Maurti brand, there should be more brand awareness in themarket

They should increase advertisement activities

They should promote more road shows in the respective areas

The company should promote about the entire feature offered by it

Everyone is knowing Maruti Suzuki but they are aslo promote their new product because other
competitor are doing that i.e. they are also use all that strategies for stand in market growth.
CHAPTER 6
 CHAPTER 6
BIBLIOGRAPHY

1. Learning C.N. Sontakki, “Marketing Research”, Himalaya Publishing House, New Delhi,
2006.

2. C.R. Kothari, “Research Methodology Methods and Techniques”, New Age International
(Pvt.) Ltd., publishing New Delhi, 2004

. 3. Churchill, Gilbert and Dawn Iacobucci, “Marketing Research – Methodological

Foundations”, South-Western, Thomson, 2002.

4. Crosby, Philip, “Quality is free: The art of making quality certain”, McGraw Hill Custom
Publishing, 1978.

5. Dr S.C.Gupta, “Statistical Methods”, Sultan Chand & Sons Educational Publishers, New Delhi,
2006.

Websites –
www.marutisuzuki.com
www.automobile.com
Newspaper:
The Economics Time Business
Time Magazine:
Autoindia Hot
wheels TVs
Shows: Speed
Velocity.