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    INTRODUCTION OF THE COMAPANY

    MARUTI UDYOG LIMITED

    Maruti is India's largest automobile company. The company, a joint venture with

    Suzuki of Japan, has been a success story like no other in the annals of the Indian

    automobile industry.

    Today, Maruti is India's largest automobile company. This feat was achieved by the

    missionary zeal of our employees across the line and the far-sighted vision of our

    management.

    The Company Mission:

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

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

    The Company Vision:

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

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

    the global players.

    Their focus is on:

    Building a continuously improving organisation adaptable to quick changes

    Providing value and satisfaction to the customer

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

    competition

    Maximising Shareholder's value

    Being a responsible corporate citizen

    At Maruti, they have a clear perspective on manpower. They see it as a unique

    resource, in the sense that optimal productivity of other resources depends largely on

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    the way human resources are utilised. The basic philosophy of management that

    underlies the Maruti culture is that all employees of the company should be moulded

    into a team which then strives as one, to achieve commonly shared company goals

    and objectives. To make this philosophy tenable, the Company takes several

    initiatives. Inputs are sought from employees at all levels. They believe that

    everyone should contribute to the formulation of company policies, goals and

    objectives. Secondly, at Maruti, they encourage leadership in the best sense of the

    word. According to us, a leader is one who must be impartial, must have the ability

    to rise above his own subjectivity, and, most importantly, must practice what he

    preaches.

    They understand that the process of creating a sense of belonging that all employees

    can identify with is a lengthy one. To ensure that this translates into concrete reality,

    they have taken several simple but specific and well thought out measures. The first

    step in this direction has been the introduction of a common uniform for all

    employees. Another measure is the creation of a common canteen where all

    employees have lunch, stand in common queues, and sit on the same table. Common

    toilets, common transport and similar facilities for all levels of employees are other

    measures that reinforce their emphasis on genuine equality in the workplace.

    At Maruti They do not believe in the notion of organisational hierarchies. As a

    matter of fact, the management structure and systems in Maruti have been designed

    to promote decentralisation of authority. Maruti has a horizontal management

    structure with only four functional levels of responsibility to facilitate quicker

    decision making.

    Another focus area of the Maruti culture is the maintenance of a smoothly

    functioning communication network. Maruti believes that communication channels

    between labour and management cannot simply consist of having a labour

    representative on the Board of the Company. They have faith in the ability of labour

    to effectively participate in management and make constructive suggestions. To

    encourage this, they ensure that there is a thorough dissemination of information at

    all levels, through newsletters or via a letter from the Chief Executive to all

    employees. Meetings with the Union are held regularly, and programmes being

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    contemplated by the Company are discussed with the Union. The Sahyog Samiti, a

    collection of representatives of non-unionised employees, training programmes in

    Japan, Quality Circles, productivity-linked incentive schemes, and an ethos of

    discipline and teamwork, all contribute to the Maruti culture.

    Several measures of performance have made amply clear that Maruti has established

    a truly healthy work culture. They have met all project and performance targets

    since inception. Their productivity levels are constantly improving. The Company

    has had good labour relations with employees from the very beginning, and they

    have been successful in the export market. Yet, the Maruti culture is one that does

    not believe in resting on its laurels. They adhere to the spirit of Kaizen, which states

    that constant improvement is always possible. The most basic tenet of productivity

    that they hold dear is that " Today should be better than Yesterday and Tomorrow

    should be better than Today".

    Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of

    Parliament, to meet the growing demand of a personal mode of transport caused by

    the lack of an efficient public transport system.

    Suzuki Motor Company was chosen from seven prospective partners worldwide.

    This was due not only to their undisputed leadership in small cars but also to their

    commitment to actively bring to MUL contemporary technology and Japanese

    management practices (which had catapulted Japan over USA to the status of the top

    auto manufacturing country in the world).

    A licence and a Joint Venture agreement was signed between Government of India

    and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

    The objectives of MUL then were:

    Modernization of the Indian Automobile Industry.

    Production of fuel-efficient vehicles to conserve scarce resources.

    Production of large number of motor vehicles, which was necessary for

    economic growth.

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    Core Value

    Customer Obsession

    Fast, Flexible and First Mover

    Innovation and Creativity

    Networking and Partnership

    Openness and Learning

    Vision

    The leader in the India Automobile Industry, Creating Customer Delight and

    Shareholders Wealth; A pride of India

    Technological Advantage

    We have introduced the superior 16 * 4 Hypertech engines across the entire Maruti

    Suzuki range. This new technology harnesses the power of a brainy 16-bit computer

    to a fuel-efficient 4-valve engine to create optimum engine delivery. This means

    every Maruti Suzuki owner gets the ideal combination of power and performance

    from his car.

    Our other innovation has been the introduction of Electronic Power Steering (EPS)

    in select models. This results in better and greater maneuverability. In other words,

    our cars have become even more pleasurable to drive.

    Production/R&D

    Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the

    Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an

    average, two vehicles roll out of the factory every minute. And it takes on an

    average, just 14 hours to make a car. More importantly, with an incredible range of

    11 models available in 50 variants, there's a Maruti Suzuki made here to fit every

    car-buyer's budget. And dream.

    Production Milestones

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    1st vehicle produced, December 1983

    1,00,000 vehicles produced by August, 1986

    5,00,000 vehicles produced by June, 1990

    10,00,000 vehicles produced by March, 1994

    15,00,000 vehicles produced by April, 1996

    20,00,000 vehicles produced by October, 1997

    25,00,000 vehicles produced by March, 1999

    30,00,000 vehicles produced by June, 2000

    35,00,000 vehicles produced by December 2001

    40,00,000 vehicles produced by April, 2003

    45,00,000 vehicles produced by April, 2004

    AWARDS

    2005Number one in JD Power SSI for the second consecutive year

    Number one in JD Power CSI for the sixth time in a row - the only

    car to winit so many timesM800, WagonR and Swift topped their segments in the TNS TotalCustomer Satisfaction Study

    Leadership in the JD Power Initial Quality Study - Alto number

    one in its

    segment for the 2nd time in a row, Esteem number one in its

    segment forthe 3rd year in a row, Swift number one in the premium compact

    segment

    WagonR and Esteem top their segments in the JD Power APEAL

    study

    TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR)

    study(#1 in Auto sector)-Feb 05

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    Maruti bagged the "Manufacturer of the year" award from Autocar-

    CNBC

    ( 2nd time in a row)-Feb 05First Indian car manufacturer to reach 5 million vehicles sales

    Business World ranks Maruti among top five most respected

    companies inIndia-Oct 04

    Maruti ranked among top ten (Rank7) greenest companies in India

    byBusiness Today - Sep '04

    2004

    Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in SalesSatisfaction No.1 in Product Quality (Esteem and Alto) and No. 1

    in Product Appeal (Esteem and Wagon R)No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)

    Business World ranked us among the country's five most respected

    companies

    Business World ranked us the country's most respected automobile

    companyVoted Manufacturer of the year by CNBC

    Voted one of India's Greenest Companies by Business Today-AC

    Nielson ORG-MARG

    2003

    Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10

    automotive brands in "Most Trusted Brand survey 2003"J D Power ranked 3 models of Maruti on top: Wagonr, Zen and

    Esteem

    Maruti 800 and Wagonr top in NFO Total Customer Satisfaction

    Study 2003.MUL tops in J D Power CSI (2001) for 4th time in a row

    2001

    MUL tops in J D Power CSI (2001) for 2nd time in a row: another

    international first

    2000

    Maruti bags JD Power CSI - 1st rank; unique achievement by

    market leader anywhere in the world

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    1999MSM launched as model workshop in India; achieves highest CSI

    rating.

    Central Board of Excise & Customs awards Maruti with "Samman

    Patra", for contribution to exchequer and being an ideal tax

    assessee

    1998

    CII's Business Excellence Award

    1996

    Maruti wins INSSAN award for "Excellence in Suggestion

    Scheme"Awarded the Star Trading House status by Ministry of Commerce

    1994-95

    Engineering Exports Promotion Council's award for export

    performance

    1994

    Best Canteen award among Haryana Industries as part of employee

    welfare

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    WHY MARUTI SUZUKI

    The Quality Advantage

    A car is an engineering product, only as good as the technology used to make

    it. Actual users of our technology are saying something very clearly Maruti

    Suzuki is No.1 in quality:

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

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

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

    segment across 9 parameters.

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

    premium compact car segment and the Esteem No.1 in the entry level mid-

    size car segment. This study measures owner delight in terms of design,

    content, layout and performance of vehicles across 8 parameters.

    Maruti Suzuki has a sales network of 307 state-of-the-art showrooms across189 cities*, with a workforce of over 6000 trained sales personnel to guide

    our customers in finding the right car. Our high sales and customer care

    standards led us to achieve the No.1 nameplate in the J.D. Power SSI study

    2004. The SSI study measures sales satisfaction across 6 parameters: deal

    received, paperwork, dealer facility, salesperson, delivery timing and delivery

    process. Maruti Suzuki has not only got the No.1 nameplate in the J.D. Power

    SSI study 2004, but also ranked way above the industry average (Maruti

    Suzuki was at 784 while industry average was at 760). What is significant is

    that it was ranked above Skoda, Ford, Chevrolet, Mitsubishi and Hyundai.

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

    network at hand and within easy reach. Their 1036 city strong service

    network is equipped to service 20,000 vehicles a day. No wonder Maruti

    Suzuki has been awarded the No.1 nameplate in customer satisfaction in India

    for the fifth year in a row, a feat unprecedented for any automobile marketleader in the world.

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    A Buying Experience Like No Other

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

    cities, with a workforce of over 6000 trained sales personnel to guide our customers

    in finding the right car. Our high sales and customer care standards led us to achieve

    the No.1 nameplate in the J.D. Power SSI Study 2004.

    Quality Service Across 1036 Cities

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

    parameters: least problems experienced with vehicle serviced, highest service

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

    experience, most user-friendly service and best service initiation experience.

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

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

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

    would probably repurchase the same make of vehicle.

    The Low Cost Maintenance Advantage

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

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

    affordable to maintain, as some of its regularly used spare parts may be priced

    quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy

    segment that the affordability of spares is most competitive, and it is here

    where Maruti Suzuki shines. The recent Auto car Survey conducted in August

    2004 bears testimony to this fact. In the Maruti Suzuki stable, the Omni has

    the lowest aggregate cost of spares followed by the Maruti-800. The Maruti-

    800 has the cheapest spares of any Indian car with a basket of just Rs. 23,422.

    In the Lower Mid-size segment as well, price-consciousness is very high,

    where the cars have to be not only affordable on purchase price but also need

    to combine quality, drivability and have comfortable interiors. In this

    segment, the Maruti Suzuki Versa has scored particularly well with the lowest

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

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

    ISO 9001:2000

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

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

    educate and instruct technicians to continually improve productivity and quality.

    The movement of quality indicators is reviewed in weekly meetings by the top

    management.

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

    anywhere in the world to get an ISO 9000:2000 certification. AV Belgium,

    global auditors for International Organization for Standardisation(ISO), certified

    Maruti after a four day long audit, covering varied parameters like Customer

    Focussed organisation, Leadership, Involvement of people, Process approach,

    System approach to Management, Continual improvement, etc.

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

    quality assurance in production, installation, marketing and sales as well as after

    sales services. We were also one of the first companies in the world to pioneer ISO

    9000 certification for our dealers.

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

    which is based on a European Union Directive. This authenticated our quality

    systems and testing facilities for export to Europe.

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

    vendors and dealers in establishing and consolidating their individual quality

    systems. This commitment to quality has ensured a consistently satisfying product

    and world-class sales and after-sales services.

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    Stages in Buying Decision Process

    Need

    recogniti

    on

    Informat

    ion

    search

    Evaluation

    of

    alternative

    s

    Purchas

    e

    decisio

    n

    Post-

    purchase

    behavior

    The consumer passes through five stages : Problem recognition information

    search, evaluation of alternatives purchase decision and post-purchase

    behavior. Clearly the buying process starts long before the actual purchase

    and has consequences long after the purchase.

    This model implies that consumers pass through all five stages in buying a

    product. But this is not the case, especially in low-involvement purchase.

    Consumers may skip or rreverse some stages. Thus a woman buying her

    regular brand of toothpaste goes directly from the need for toothpaste to the

    purchase decision, skipping information search and evaluation. However, we

    have already used the model in above, because it captures the full range of

    consideration that arise when a consumer facer a highly involving new

    purchase. We will allude again to Linda Brown and try to understand how she

    became interested in buying a laptop computer and the try to understand how

    she became interested in buying a laptop computer and stages she went

    through to make her final choice.

    TARGET MARKETING

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    Target Marketing involves breaking a market into segments and then concentrating

    your marketing efforts on one or a few key segments.

    The beauty of target marketing is that it makes the promotion, pricing and

    distribution of your products and/or services easier and more cost-effective. Target

    marketing is the selection of customers you wish to service. The decisions involved

    in it are

    Which segments to target

    How many products to offer

    Which products to offer in which segments

    There are three steps to targeting:

    Market segmentation

    Target choice

    Product positioning

    One of the first things you need to do is to refine your product or service so that you

    are NOT trying to be 'all things to all people.

    Next, you need to understand that people purchase products or services for three

    basic reasons:

    To satisfy basic needs.

    To solve problems. To make themselves feel good.

    The next step in creating an effective marketing strategy is to zero in on your target

    market.

    Target marketing is one of corporate America's most effective business strategies.

    The idea is to increase sales by first identifying, and then targeting smaller, yet more

    profitable customer groups within the total market.

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    Four Ways to Identify Target Markets

    1. Geographic: The location, size of the area, density, and climate zoneof your customers.

    2. Demographics: The age, gender, income, family composition and size,

    occupation, and education of your customers.

    3. Psychographics: The general personality, behavior, life-style, rate of

    use, repetition of need, benefits sought, and loyalty characteristics of

    your customers.

    4. Behaviors: The needs they seek to fulfill, the level of knowledge,

    information sources, attitude, use or response to a product of your

    customers.

    TARGET MARKETING

    Who are your best customers? Where should you direct your marketing

    activities?

    Where and how should you allocate your advertising and promotional

    efforts?

    Target Marketing, provides Focus for your business. It helps to establish

    critical Operational goals and defines what must be done to achieve them

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    Target Marketing

    Comparison of Automobile And Consumer

    DurableAt Dealership Level

    S.No Attributes Automobile Consumer Durables

    1 Turnover High Low

    2 Margin 8%-12% 2%-4%

    3PenetrationLevel

    More in small or largetowns or cities

    More in Rural areasor in cities also

    4

    Training ofSalesExecutives

    Executives get Trainingafter every specificperiod As such no training

    5 Supply-Chain Co->Dealer->CustomerCo->Distributor->Dealer >Customer

    6DiscountMargin Cartel

    Depends on DealerTo Dealer

    7 CSR Proper well organized

    Only Sales man isthere to serve thecustomer

    8 ASSCustomer get 3freeservice

    Customer have to go

    at manufacturedlevel

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    9BrandAssociation

    Customer first choice ismore pertinent

    Customer canchange his or herchoice

    10 Payment Instantaneous Payment

    More focus onFinance &Installment

    11Post-SalesFollow UP More Very Less

    12BuyingProcedure

    Customer can wait fornew model Instant buying

    13 Database Large Few

    14BrandTransition Single-Tier Multi-Tier

    15 Advertisement

    Parent Company &dealer both giveadvertisement

    Only from ParentCompany

    16LoyalityPrograms Yes No

    17

    CustomerSatisfactionIndex

    Well- Defined &Organized None

    18 Promotion Free Service Camps None

    19CustomerRetention More Very Less

    20 Maintenance

    Only free service whichcustomer can extendupto 4 years(first 2yr are

    free)

    Annual Maintenance

    Contract (AMC)

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    MARUTI CULTURE

    Their employees are their greatest strength and asset. It is this underlying philosophy

    that has moulded their workforce into a team with common goals and objectives.

    Their Employee-Management relationship is therefore characterized by:

    Participative Management.

    Team work & Kaizen.

    Communication and information sharing.

    Open office culture for easy accessibility

    To implement this philosophy, they have taken several measures like a flat

    organizational structure. There are only three levels of responsibilities ranging from

    the Board Of Directors, Division Heads to Department Heads. Other visible features

    of this philosophy are an open office, common uniforms (at all levels), and a

    common canteen for all.

    The company is listed on Bombay Stock Exchange and National Stock Exchange.

    MUL is a Board-managed company. Currently the directors on the Board are:

    Mr Shinzo Nakanishi, Chairman

    Mr Jagdish Khattar, Managing Director

    Mr Hirofumi Nagao, Joint Managing Director

    Mr Shinichi Takeuchi, Joint Managing Director

    Mr Kinji Saito, Director (Marketing and Sales)

    Mr Osamu Suzuki, Director

    Mr R C Bhargava, Director

    Mr S V Bhave, Director

    Mr Kumar Mangalam Birla, Director

    Mr Amal Ganguli, Director

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    OBJECTIVE OF THE COMPANY

    Marutis marketing objective is to continually offer the customer newproducts and services that:

    Reduce the customers cost of ownership of their cars; and

    anticipate and address the customers needs and preferences in all

    aspects and stages of car ownership, to provide what they refer to as

    the 360 degree customer experience.

    They sell ten models with more than 50 variants in segments A, B, C, and

    utility vehicle segment of the Indian passenger car market. Of these, they

    manufacture nine models and import the Grand Vitara as a completely built

    unit from Suzuki in Japan. Their models and variants are designed to address

    the changing demands of the market and are periodically upgraded in

    technology, styling and features. To take advantage of the brand recognition

    associated with their products, they retain the brand name of the product

    through various stages of product upgrades over time.

    A Maruti 800

    A OMNI

    B Zen

    B Wagon R

    B Alto

    C Esteem

    C Baleno

    C Versa

    C SWIFT

    Utility Vehicle GYPSY KING

    Utility Vehicle GRAND VITARA

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    WAGON R

    MARUTI 800

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    NEW ALTO

    SWIFT

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    RESEARCH METHODOLOGY

    The nature of the project work has been exploratory as no hypothesis, is

    taken to be tested. Though the conclusions drawn could be taken as the

    hypothesis and further tested by the research work undertaken in the

    relevant field. The reason for choosing the exploratory research design is

    the fact the project report has been primarily based upon the secondary

    sources of data and whose authenticity could be assured of.

    The reluctance of the company's personnel in parting with much of

    information led the project report to be based substantial ly on the

    secondary source of data. The sources of data used in data collection are

    the following:

    Primary sources

    In order to gather information about the various products, I personally

    visited a number of retail markets and collected data pertaining to the

    pr ices of the products of fered. The market visi ts were useful in knowing

    the comparative prices and quality of the offered brands vis--vis the

    competitive brands. Detail regarding the packaging of the products were

    collected were collected and I also inquired about the various sales

    promot ion schemes followed by the three companies .

    By interviewing these retailers valuable information was collected. I

    inquired from them about their marketing advertising and distribution

    strategies.

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    Secondary sources

    Information was collected from secondary sources such as public libraries,

    newspapers, business magazines.

    Beside these the use of Internet was also made in collecting relevant

    information. The data collected from the above mentioned sources has been

    adequately structured and used at appropriate places in the report. This

    part icular way of da ta collection was used because of its low cost (except

    data collected through surfing the internet) and less time consumption.

    The information gathered included:

    Their annual reports (Procter & Gamble and Johnson and Johnson).

    Pamphlets.

    Posters.

    Press clippings.

    News re leases .

    Newsletters.

    Pictures.

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    FINDINGS OF THE STUDY

    PRICES OF MARUTI PRODUCTS

    Car market leader Maruti Udyog Limited has announced a marginal increase in price

    of certain models. The increase, which comes into effect from today, varies from

    0.17 percent to 1.47 percent.

    The price increase is due to rise in input costs and freight costs, which

    increased following the rise in oil prices. In this phase, the company has

    decided to pass on only a part of the increase in costs to the customers. There

    is no change in the prices of Swift, Zen, Baleno (Vxi) and WagonR (Petrol).

    Ex-Showroom Prices in Delhi (in Rs)

    Model New Old IncreaseChang

    e %M800 Std 191646 191146 500 0.26%M800 Std Ac 213062 212562 500 0.24%

    Alto Std 231585 231085 500 0.22%Alto Lx 265262 264762 500 0.19%Alto Lxi 283878 283378 500 0.18%Omni Cargo LPG 194725 192725 2000 1.04%Omni Cargo 213706 213206 500 0.23%Omni (Eight Seater) 221268 220768 500 0.23%Omni LPG 230388 227388 3000 1.32%Esteem Lx 445968 444968 1000 0.22%Esteem Lxi 476223 475223 1000 0.21%Esteem Vxi 511520 510520 1000 0.20%

    Baleno Lxi 576173 575173 1000 0.17%Versa Dx 433575 432575 1000 0.23%Versa Dx2 471779 470779 1000 0.21%Versa Std 360182 359182 1000 0.28%WagonR Lx LPG 345106 340106 5000 1.47%WagonR Lxi LPG 373160 368160 5000 1.36%

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    ORGANISATION STRUCTURE AT MUL

    Maruti Udyog ltd. Has a flat organisation structure with a maximum of three levels.

    Head office

    MD

    MFG FIN OTHER

    DIRECTOR N CONTROLLER GM DGMS AGMS

    GM/ DGMS DGMS AGMS MGRS/AMS

    MGRS/AMS MGRS/AM SR GM/EX

    ENGINEERS(EX) SR. EX./EXTRAINEES

    J.E. (TRAINEES)

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    THE PRODUCTION PROCESS AT MARUTI

    STEEL COILS

    BLANKING

    PRESSING

    WELDING

    PAINTING

    ASSEMBLY

    VEHICLEINSPECTION

    TEST RUN

    SUPPLY &DISPATCH

    FROMVENDOR

    S

    FROMVENDORS

    FROMVENDOR

    S

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    MARUTI ALL INDIA SALES 3 YR TREND

    Segment 2006-07

    Growth

    2007-08 Growth

    2008-09

    Growth

    A1 (Mini - Hatchback) 167,561

    17% 116,262 -31% 89,223 -23%

    A2 (Compact - Hatchback) 176,132

    47% 271,280 54% 335,136 24%

    A3 (Mid Size) 14,173 28% 29,637 109% 31,939 8%

    A4/A5/A6(Exec./Prem./Luxury)

    NA NA NA NA NA NA

    C (Van Type) 59,526 15% 65,019 9% 66,366 2%

    Passenger Cars - MUL 417,392

    28% 482,198 16% 522,664

    8%

    Passenger Cars - TotalIndustry

    758,123

    26% 885,029 17% 948,669

    7%

    MUV (Utility Vehicles) 3,555 12% 5,204 46% 4,374 -16%

    Passenger Vehicles - MUL 420,947

    28% 487,402 16% 527,038

    8%

    Passenger Vehicles - TotalIndustry

    901,150

    24% 1,050,246

    17% 1,129,316

    8%

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    MARKET SHARE

    2005-06 Market Share-Segment A2

    TATA

    20%

    HYUNDAI

    21%MARUTI

    59%

    2005-06 Market Share-Segment A3

    TATA

    20%

    FORD

    14%

    GM

    6%HONDA

    20%

    OTHERS

    7%

    MARUTI

    17%

    HYUNDAI

    16%

    2005-06 Market Share-Passenger Cars

    TOYOTA

    1%

    OTHERS

    3%

    FORD

    3%

    GM

    1%

    HONDA

    4%

    TATA

    16%

    MARUTI

    55%

    HYUNDAI

    17%

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    COMPETITION MODELS

    SEGMENTMaruti Competition

    A1 (Mini -Hatchback)

    M800

    A2 (Compact -Hatchback)

    Zen, WagonR,Alto, Swift

    Hyundai - Santro & Getz; Tata -Indica & Palio; GM - Corsa Sail

    A3 (Mid Size) Esteem,Baleno

    Hyundai - Accent; Tata - Indigo &Petra; Honda - City; GM - Corsa,

    Optra, & Aveo; Ford - Ikon,Fusion, & Fiesta

    A4/A5/A6

    (Exec./Prem./Luxury)

    Hyundai - Elantra & Sonata;

    Honda - Accord; GM - Vectra; Ford- Mondeo; Skoda - Octavia &

    Superb; Toyota - Corolla & Camry;Daimler Chrysler - C,E, & S Class;

    C (Van Type) Omni, VersaMUV (Utility

    Vehicles)Gypsy, Grand

    VitaraMitsubishi - Pajero; Hyundai -Terracan & Tucson; Ford -Endeavor; Toyota - Prado &

    Innova; Nissan - X Trail; Honda -CRV; GM - Forrester & Tavera;

    Tata - Sumo & Safari; Mahindra -Jeeps, Scorpio, & Bolero

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    -

    COMPETITIVE STRENGTHS

    MUL believes that they are well positioned to maintain and enhance their leadership

    position in the small car segment in India, while continuing to offer products in most

    segments of the Indian market, on account of their competitive strengths, which

    include the following:

    Expertise in small car technology: As a subsidiary of Suzuki, they have

    access to globally respected technology in the small car segment. They have

    the advantage of Suzukis expertise in all aspects of small car technology and

    design, with respect to their products, their manufacturing processes and

    business practices, the development of their supply chain and the training of

    their personnel.

    Extensive product portfolio: Their diverse product range includes cars in

    segments A, B and C, and utility vehicles. They manufactured five out of the

    ten models that were sold in the combined A and B segments in India in fiscal

    2002. They are the only manufacturer of cars in segment A (priced below

    Rs.300,000) where they have two models, the Maruti 800 and the Omni. The

    Maruti 800 has been the largest selling car in India for several years, and

    continued to have the highest sales volumes of any model, with a market share

    of 25.3%. The Omni, a versatile vehicle that can seat more passengers than

    the Maruti 800 or be used as an ambulance or cargo vehicle, had a market

    share of 10.5% in fiscal 2002. They are also the only manufacturer to sell

    three distinct models, the Zen, the Alto and the Wagon R, in segment B

    (priced between Rs.300,000 and Rs.500,000). They believe that

    theirdominance in segment A and extensive product range in segment B

    enables us to offer the customer a wider choice in the small car segment than

    any of their competitors. In addition, the absence of other manufacturers in

    segments A gives their dealers greater flexibility in promoting models in

    segment B.

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    Quality products: In November 2001, they were one of the first automobile

    manufacturers in the world to receive the ISO 9001:2000 certification. They

    began to export products in 1988, primarily in order to benchmark our

    products against international quality standards. They have exported products

    to approximately 70 countries, including countries in Western Europe. Their

    products for export are manufactured using the same assembly line as our

    products for the domestic market.

    Extensive sales and service network: They believe that they have the largest

    network of dealers and service centers amongst car manufacturers in India. As

    of March 31, 2003, we had 178 authorized dealers with 243 sales outlets in

    161 cities. They estimate their car parc to be in excess of 3.5 million vehicles.

    To service this car parc, at March 31, 2003, they had 342 dealer workshops

    and 1,545 Maruti Authorized Service Stations, or MASSs, which covered 898

    cities in India backed by Express Service Centers on 30 highways across the

    country. In addition to the distribution of their cars, their dealership network

    is a critical resource in our efforts to provide customers with a one-stop

    shop for automobiles and automobile related products and services such as

    automobile finance, automobile insurance, Maruti-certified pre-owned cars

    available for purchase, and leasing and fleet management, in order topromote

    customer loyalty.

    Brand strength: They have been present in the Indian market for almost

    twenty years and have built their brand on the basis of the values of trust and

    reliability. Most of their principal competitors have been present in the Indian

    passenger car market for a significantly shorter period. Certain manufacturers

    have ceased to manufacture certain products shortly after introducing them, or

    have left the market altogether. In contrast, they continue to support the

    maintenance of their products. NFO Automotives 2002 Total Customer

    Satisfaction Survey ranked Maruti products as No. 1 in the Economy,

    Premium Compact and Entry Midsize segments respectively, for 2002.

    Integrated manufacturing facility: Their manufacturing facility comprises

    three integrated plants with flexible assembly lines located at Gurgaon in the

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    northern state of Haryana. Their facility has advanced engineering capability

    and each plant is upgraded on an ongoing basis to improve productivity and

    quality.

    Strong vendor base and higher rates of localization: They work closely

    with their vendor base for the supply of raw materials, components and spare

    parts of their products. In order to improve quality and generate economies of

    scale, they have reduced the number of their vendors of components in India

    from 370 as of March 31, 2000 to 299 as of March 31, 2003, and intend to

    continue to reduce the number of our vendors. 113 of their vendors at March

    31, 2003 were in technical collaboration with foreign entities. As of the same

    date, we had strategic equity interests through joint venture agreements in 13

    of their vendors, who together supply a substantial portion of their purchases

    of components. A number of their vendors are their dedicated suppliers in that

    they account for a majority of their turnover.

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    THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY

    Hyundai Motor India Ltd

    Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai

    Motor Company, South Korea and is the second largest and the fastest growing car

    manufacturer in India. HMIL presently markets 31 variants of passenger cars in six

    segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C

    segment, the Elantra in the D segment, the Sonata Embera in the E segment and the

    Tucson and Terracan in the SUV segment.

    The company recorded combined sales of 252,851 during calendar year 2005 with a

    growth of 17.26% over year 2004. HMIL is India's fastest growing car company

    having rolled-out over 970,000 cars in just over 80 months since its inception and is

    the largest exporter of passenger cars with exports of over Rs. 1,800 crores. HMIL

    has recorded a growth of 27.2% in exports over the year 2004.

    HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts

    some of the most advanced production, quality and testing capabilities in the

    country. In continuation of its investment in providing the Indian customer global

    technology, HMIL has announced plans for its second plant, which will produce

    300,000 units per annum, raising HMILs total production capacity to 600,000 per

    annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to

    the existing facility .HMIL is investing to expand capacity in line with its

    positioning as HMCs global export hub for compact cars. Apart from expansion of

    production capacity, HMIL plans to expand its dealer network, which will be

    increased from 157 to 200 this year. And with the companys greater focus on the

    quality of its after-sales service, HMILs service network will be expanded to over

    1,000 in 2006.

    Propelled by the strong performance in year 2005, Hyundai Motor India is on the

    threshold of yet another grand milestone of rolling out its One millionth car which

    is expected soon.

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    Tata Motors

    Tata Motors is one of the largest companies in the Tata Group with a total

    income of US$ 2.35 billion. More than 3 million Tata vehicles ply on Indian

    roads making Tata a dominant force in the Indian automobile industry.

    Tata Motors is India's only fully integrated automobile manufacturer with a

    portfolio that covers trucks, buses, utility vehicles and passenger cars. It

    would be no exaggeration to say that Tata Motors provides the wheels for

    India's growth.

    Tata Motors has the unique distinction of giving India its first and only indigenously

    built passenger car - The Tata Indica and the premium feature sedan - The Tata

    Indigo. The Indica, launched in 1998, reached the 2,50,000 sales mark within 52

    months of launch.

    Mode of Communication

    They reach to customers by giving advertisements in the T.V. or through radio,

    through wall painting, or through promotional activities like weakly haats, mela or

    local bazaars and most importantly, their policies were flexible and they could

    adapt to fast changing marketing situations.

    Through Internet, E-mail usage, communication media like telephone and mail facility

    this mode of communication is possible to a great extent. ITCs extensive India-

    wide distribution network enables its greeting cards reach over 12,000 multi brand

    outlets in over 700 cities across the country. In the last three years, 10,000 greeting

    card designs have reached these outlets with the help of ITC's web-enabled e-

    commerce model Communication Model ITC markets

    Opportunity

    These days consumers are looking for convenience and instant gratification.

    Communication media like the telephone and e-mail facilitate communication to a

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    great extent. But many greeting card sites are moving from a 'free' to a 'pay' mode.

    This could be an emerging revenue earning opportunity for content providers.

    Threats

    'Expressions' which is a competitor of ITC in this segment is currently the second

    biggest greeting card brand in India with a market share of 20 per cent. ITC has a

    five per cent share in the stationery market. The greeting card market in India is

    estimated to be around Rs. 250 crore in terms of yearly consumer spent. The

    unorganized sector in the greeting card market will be close to 40 per cent. The

    organized sector, controlling 60 per cent of the market, is divided between ITC,

    Archies and Hallmark. While Archies has licensing agreements with international

    greetings brands

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    FINDINGS FROM SURVEY

    Total Number of Respondents: 15 Officials

    Number of RespondentsMaruti Udyog Limited 5Hyundai Motors India Ltd 2General Motors 2Tata Motors 5Ford India Limited 1

    Do you face problems in maintaining good and effectiverelationships with customers?

    QuiteFrequently

    Frequently Average Rarely

    Maruti UdyogLimited

    2 3 - -

    Hyundai Motors

    India Ltd

    - 2 - -

    General Motors - 2 - -Tata Motors 3 2 - -Ford IndiaLimited

    - 1 - -

    Quite

    Frequently

    33%

    Frequently

    67%

    Average

    0%Rarely

    0%

    Findings: According to the responses of the respondents it can be concluded that all

    the respondents face problems in maintaining good and effective relationships with

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    customers. With changing customer needs its quite obvious that maintaining good

    relations with customers need an effort on part of the Dealers and Manufacturers.

    How well can your company identify its end usercustomers?

    Maruti Udyog Limited: According to the officials of MUL, the companys

    endeavor is to be close to the customer, to anticipate and fulfill their

    needs. They believe that the new business initiatives taken by MUL have

    expanded the scope of this relationship. Maruti offers auto insurance, auto

    finance, corporate lease and fleet management and resale of pre-owned

    cars in partnership with its dealers. For the first time, car customers in

    India are able to access these services through a one-stop shop, backed by

    the leader brand. The way they look at it is that this will provide complete

    mobility solutions to the Maruti customer. This also enables them to

    extend their relationship with the customer beyond the point ofpurchase

    to the entire ownership life cycle. Since these services play a vital role in

    the car customer's ownership experience, the new initiatives enable them

    to offer Maruti owners greater value, assurance and convenience.

    Hyundai Motors India Ltd: According to the officials of

    Hyundai Motor India is at a very exciting stage in India

    today. They are experiencing tremendous growth - which is

    a true sign of enjoying customer confidence. In order to

    strengthen their position further in the Indian market, they

    need to continuously work on building their corporate

    reputation while aggressively positioning their products. For

    HMI's focus and commitment to the Indian automobile

    customers is of critical importance. Its been their continuous

    endeavor to fulfill the entire spectrum of customer needs

    and desires, across all socio-economic & lifestyle groups.

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    Can your company differentiate its customersbased on their value to you and their needs from

    you? Yes NoMaruti UdyogLimited

    5 -

    Hyundai MotorsIndia Ltd

    2 -

    General Motors 2 -Tata Motors 5 -Ford India Limited 1 -

    Yes100%

    No

    0%

    Findings: According to the respondents (officials) at all the Five Automobile Majors

    their company was able to differentiate its customers based on their value to them

    and their needs from the company. This is important for the automobile industry

    because the dynamics of selling cars is changing and manufacturers and dealers who

    fail to meet the rising needs and expectations of their customers will lose out to

    those who can. Buying a new car is an experiencecustomer will remember for a

    long time and ensuring that this experience is a satisfactory one is essential in

    building brand loyalty and customer advocacy.

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    How well does your company customize its products and services

    based on what it knows about its customers?

    HighlyCustomer

    centric

    SomewhatCustomer

    centric

    Not Customercentric

    Maruti UdyogLimited

    5 - -

    HyundaiMotors IndiaLtd

    2 - -

    GeneralMotors

    2 - -

    Tata Motors 5 - -

    Ford IndiaLimited

    1 - -

    Highly Customer

    centric

    100%

    Somewhat

    Customer centric

    0%

    Not Customer

    centric

    0%

    Findings: All the officials of the Automobile Majors agree that all products

    and services are highly customer centric and based on the information they

    know about the customers.

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    Limitations of the Study

    Since the road to improvement is never ending, so this study also suffers from

    certain limitations. Some of them are as follows:

    Because of illiteracy, it was a time consuming method in which

    continuous guidance was required.

    Questionnaire method involves some uncertainty of response.

    Co-operation on the part of informants, in some cases, was difficult to

    presume.

    It is possible that the information supplied by the informants

    may be incorrect. So, the study may lack accuracy.

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    CONCLUSION

    The price of a car is just one-third of what it cost you over its lifetime. Running and

    maintaining it make up the other two-thirds. Take into account resale value and its

    real cost becomes clear. Maruti Suzuki stands for value as much as it stands for

    performance. In spite of rising input costs, we try our best to keep prices down.

    Their running costs and resale values are unbeatable too. Nothing matches the

    delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki

    owners stated that they would definitely recommend the car they drive to someoneelse. Infact, you dont buy a Maruti Suzuki. You invest in it.

    After the rash of new cars launches the past two years, the relative lull in the auto

    industry is showing up in the customer satisfaction indices. According to the 2005

    four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist

    division of TNS Automotive, the automobile ownership experience or customer

    ownership experience has declined in all areas compared to 2004. The study is one

    of the largest syndicated automotive studies in India, representing the responses of

    more than 7,000 new car buyers. The comprehensive study covers over 50 models

    with customer evaluations taken in the key areas of sales satisfaction, product

    quality, vehicle performance and design, after-sales service, brand image, and cost-

    of-ownership. The TCS index score provides a measure of satisfaction and loyalty a

    given model enjoys with its customers. According to TNS Automotive, the decline

    is predominantly for older, small and entry mid-size car models. The ageing of these

    models seems to be posing a stiffer challenge for manufacturers to sustain past

    performance levels at a time when customer expectations are rising sharply.

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    BIBLIOGRAPHY

    Reference Books, Journals, Newspaper, Web Sites, Reports, etc are to belisted, out here

    Books

    Kotler Philips, Marketing Management Analysis, PlanningImplementation & Control Edition 1998. Prentice hall of India Ltd.

    New Delhi

    Magazines Jourals & Newapaper

    Name of the articles, Business Today: 15-22May 2000

    Name of the articles, The times of India . Mumbai: 21st May 2000

    www.google.com

    www.yahoo.com

    www.maruti.com

    http://www.google.com/http://www.yahoo.com/http://www.maruti.com/http://www.google.com/http://www.yahoo.com/http://www.maruti.com/
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    ACKNOWLEDGEMENTS

    I owe my sincere thanks and gratitude to Mr.

    RAHUL SHARMA (Lecturer of IMEC Sagar) who

    inspired me by his able guidance and was a

    constant guiding light during the course of project

    study.

    The support and knowledge provided by

    him has been a great value addition for me and

    will go a long way in building a promising

    career.

    Last but not least, I am also thankful to all the

    respondents of my survey without whom the

    project would not have been completed

    successfully.

    (NITIN SAINI)

    M.B.A. 1ST SEM.

    IMEC College Sagar

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    PREFACE

    The student of M.B.A. 1st Year has to

    undergo Project Report as a part of their academic

    Course. The COMPANY PROFILE OF MARUTI

    SUZUKI,, is a part of this training. The main

    purpose of undergoing such a searching is to

    know the customer satisfaction in Maruti

    company.

    This report is preferred as the COMPANY

    PROFILE OF MARUTI SUZUKI,, The report was

    conduct of the Maruti Company website. This

    report presents the introduction of managementprofile of Maruti Company along with limitation,

    suggestion.

    I have prepared my report honestly & tried

    my level best to cover all the aspect regarding

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    the company. All the information is on the basis

    of the secondary data available

    NITIN SAINI

    MBA 1st SEM.

    DECLARATION BY THE CANDIDATEDECLARATION BY THE CANDIDATE

    Date.

    I declare that the Project report titled

    COMPANY PROFILE OF MARUTI SUZUKI,,is

    my own work conducted under the

    Supervision of Mr. Rahul Sharma,

    Department of Business Management,

    IMEC College, Affiliated by Dr. Hari Singh

    Gour University Sagar.

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    To the best of my knowledge thereport does not contain any work, which

    has been submitted for the award of any

    degree, anywhere.

    Signature of Candidate

    Nitin Saini

    M.B.A. 1st Sem.

    CERTIFICATE

    DATE: __________

    The project report titled COMPANY

    PROFILE OF MARUTI SUZUKI,,in Sagar City

    Prepared by NITIN SAINI, under the guidance and

    supervision of MR. RAHUL SHARMA (Lecturer OF

    M.B.A. Deptt., IMEC Sagar) for the partial fulfillment

    of the degree of Master of Business Administration

    is satisfactory in respect of :-

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    Comments By Supervisor Head of Deptt.

    Examiner

    1. Contents and presentation

    of the subject matter

    2. Language

    3. Embodies the original work

    of the candidate.

    4. Submission within due date

    Signature of Examiner Signature of

    Supervisor

    Signature of H.O.D.

    CUSTOMERS QUESTIONNAIRS

    NAME : --------------------------------------------------------------------------

    AGE : -

    SEX : ----------------------- OCCUPATION :

    ------------------------------------------

    1. Which company four wheeler do you use?

    a. Hyundai b. M & M c. Maruti d. others

    2. Which Maruti Wheelers do you use?

    a. Alto b. Wagnor c. Maruti 800 d.

    others

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    3. What do you think about the price of product?

    a. High b. Low c. Reasonable

    4. How did you come to know about this brand?

    a. Newspaper b. Magazine c. T.V. d.

    Hoardings

    5. What criteria you see when you purchase Maruti Cars?

    a. Brand Name b. Price c. Quality d. Others

    6. Do you feel Maruti Cars price Economic? Yes/ No. &

    Why?-------------------------------------------------------------------------------

    -------------------------------

    7. If you purchase any other Four Wheeler which one will you

    buy?

    --------------------------------------------------------------------------------------

    -------

    8.. Do you have any complaints? Yes / No

    --------------------------------------------------------------------------------------

    ------------------------------------------------9. Which facet of product should be focused more whether

    product quality, Price, Advertisement.

    --------------------------------------------------------------------------------------

    -------

    10. Any Suggestion

    --------------------------------------------------------------------------------------

    ---------------------------------------------------------------------------

    Date: Signature

    Thanks for you co-operation & valuable time

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    CONTENTS

    Acknowledgement Certificate

    Declaration by the candidate

    Preface

    Company profile

    Products

    Marketing strategy of Maruti Suzuki

    Objectives

    Research methodology

    Data analysis & interpretation

    Findings

    Limitation

    Suggestion

    Conclusion

    Bibliography

    Questionnaire