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PROJECT REPORT ON MARUTI SUZUKI SEGMENTATION AND SALES TREND A project report submitted in the partial fulfillment of the requirements For the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY By ANIRUDH SHARMA Enroll no.: 06490201812 Under the guidance of Ms. Manpreet Kaur

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Page 1: Maruti Suzuki

PROJECT REPORT

ON

MARUTI SUZUKI SEGMENTATION AND

SALES TRENDA project report submitted in the partial fulfillment of the requirements

For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

By

ANIRUDH SHARMA

Enroll no.: 06490201812

Under the guidance of

Ms. Manpreet Kaur

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT

AND INFORMATION TECHNOLOGY

(Affiliated to Guru Gobind Singh Indraprastha University, Delhi)

(2012-2015)

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DECLARATION

I hereby declare that the project work entitled “MARUTI SUZUKI

SEGMENTATION AND SALES TREND” is submitted to the Indraprastha

University, is a record of original work done by me under the guidance of

Ms. Manpreet Kaur.

___________________

Place- Delhi Signature of the Scholar

Name- ANIRUDH SHARMA

Enrolment No- 06490201812

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CERTIFICATE

This is to certify that I ANIRUDH SHARMA, Enrolment No.06490201812,

BBA(B&I) student of Sri Guru Tegh Bahadur Institute Of Management

And Information Technology has done project work on “MARUTI SUZUKI

SEGMENTATION AND SALES TREND” under the guidance of Ms.

Manpreet Kaur.

________________

Signature of Director

Dr. P.L. SETHI

________________

Signature of Incharge

Ms. BIPASHA CHAUDHARY

________________

Signature of the Guide

Ms. Manpreet Kaur

_______________

Place: Delhi Signature of the Scholar

Date: Name- ANIRUDH SHARMA

Enrollment No.: 06490201812

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ACKNOWLEDGEMENT

With performed sense of gratitude and regard, I express my sincere thanks to

my guide and trainer Ms. Manpreet Kaur for her valuable guidance and the

confidence she inculcated in me, that helped me in the successful completion

of this project report. Without her help, this project report would have been a

distinct affair. Her thorough understanding of the subject and the

professional guidance provided me immense help. I am also thankful of our

teachers who cooperate with me and gave me their valuable time.

Place- Delhi _______________

Signature of the Scholar

Name- ANIRUDH SHARMA

Enrolment No.: 06490201812

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TABLE OF CONTENT

S.NO TOPIC PAGE

NO.1. Introduction 1-11

2. Objectives 12

3. Research Methodology 13-19

4. Company Profile 20-46

5. Data Analysis 47-59

6. Conclusion 60-62

7. Recommendation 63-65

8. Bibliography 66

9. Annexure

Questionnaire

67-68

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CHAPTER 1

INTRODUCTION

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INTRODUCTION

The Indian Automobile Market is expected to grow at a CAGR of 9.5

percent amounting to Rs. 13,008 million by 2012. The Commercial Vehicle

Segment has been contributing to the automobile market to a great extent.

Many foreign companies have been investing in the Indian Automobile

Market in various ways such as technology transfers, joint ventures, strategic

alliances, exports, and financial collaborations. The auto market in India can

boast of attractive finance schemes, increasing purchasing power, and launch

of the latest products.

Total sales of major car manufacturers in India registered a figure of 0.674

million units at the end of March, 2011. The number of car exports in India

was 39,295 units. General Motors, Maruti, and Honda accounted for 60

percent of the market sales at the end of April, 2011. There has been an

increase in the purchase of motorcycles and cars both, in the rural as well as

urban areas.

Maruti Suzuki is India’s No. 1 customer satisfaction car company. Its sale is

more than 50% of care of Indian car market. But now it is getting a good

competition with other new car company and foreign companies and its sales

is going down because other car companies are trying to present different

types of new car in different segment. So in my study I tried to study Maruti

Suzuki segmentation of cars and its sales trend and its effect on customer.

This project is all about segmentation and sales trend study of Maruti

Suzuki. Through my study I am trying to analyze the customer demand in

different segments and advancement required in Maruti’s segmentation. I am

also analyzing Maruti Suzuki sales trend. I had visited different dealers of

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Maruti Suzuki in delhi and asked some question and based on that I am

trying to analyze the data and sales trend of Maruti Suzuki. I had also

collected some secondary data of different study done on Maruti Suzuki and

based on that I am trying to present the sales trend analysis of Maruti

Suzuki.

The automobile as we know it was not invented in a single day by a single

inventor. The history of the automobile reflects an evolution that took place

worldwide. It is estimated that over 100,000 patents created the modern

automobile.

However, we can point to the many first that occurred along the way.

Starting with the first theoretical plans for a motor vehicle that had been

drawn up by both Leonardo da Vinci and Isaac Newton.

In 1769, the very first self-propelled road vehicle was a military tractor

invented by French engineer and mechanic, Nicolas joseph Cugnot (1725 –

1804). Cugnot used a steam engine to power his instructions at the paris

Arsenal by mechanic Brezin. It was used by the French Army to haul

artillery at a whopping speed of 2 ½ mph on only three wheels. The vehicle

has to stop every ten to fifteen minutes to build up steam power. The steam

engine and boiler were separate form the rest of the vehicle and placed in the

front. The following year (1770), Cugnot built a steam-powered tricycle

carried four passengers.

In 1771, Cugnot drove one of his road vehicles into a stone wall, making

Cugnot the first person to get into a motor vehicle accident. This was the

beginning of bad luck for the inventor. After one of Cugnot’s patrons died

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and the other was exiled, the money for Cugnot’s road vehicle experiments

ended

Steam engines powered cars by burning fuel that heated water in a boiler,

creating steam that expanded and pushed pistons that turned the crankshaft,

which then turned the wheels. During the early history of self-propelled

vehicles-both road and railroad vehicles were being developed with steam

engines. (Cugnot also designed two steam locomotives that they proved a

poor design road vehicles; however, steam engines were very successfully

used in locomotives. Historians, who accept that early steam-powered road

vehicles were automobiles, feel that Nicolas Cugnot was the inventor of

the first automobile.

After Cugnot Several Other Inventors Designed Steam-

Powered Road Vehicles

Cugnot’s vehicle was imporved by Frenchman, Onesiphore Pecqueur,

who also invented the first differential gear, improved Cugnot’s

vehicle.

In 1789, the first U.S. patent for a steam-powered land vehicle was

granted to Oliver Evans.

In 1801, Richard Trevithick built a road carriage powered by steam-the

first in Great Britain.

In Britain, form 1820 to 1840, steam-powered stagecoaches were in

regular service. These were later banned from public roads and

Britain’s railroad system.

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Steam-driven road tractors (built by Charles Deitz) pulled passenger

carriages around Paris and Bordeaux up to 1850.

In the United States, numerous steam coaches were built from 1860 to

1880. Inventors included. Harrison Dyer, Joseph Dixon, Rufus Porter,

and William T.James.

Amedee Bollee Sr. built advanced steam cars form 1873 to 1883. The

“La Mnacelle” built in 1878, had a front-mounted engine, shaft drive

to he differential, chain drive to the rear wheels, steering wheel on a

vertical shaft and driver’s seat behind the engine. The boiler was

carried behind the passenger compartment.

In1871, Dr.J.W. Carhart, professor of physics at Wisconsin State

University, and the J.I. Case Company built a working steam car that

won a 200-mile race.

Early Electric Cars

Steam engines were not the only engines used in early automobiles. Vehicles

with electrical engines were also invented. Between 1832 and 1839 (the

exact year is uncertain), Robert Anderson of Scotland invented the first

electric motor. The vehicles were heavy, slow, expensive, and needed to stop

for recharging frequently. Electricity found greater success in tramways and

streetcars, where a constant supply of electricity was possible.

Around 1900, electric land vehicles in America outsold all other type of

cars. Then in the several years following 1900, sales of electric vehicles took

a nosedive as new type of vehicle came to dominate the consumer market.

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History of the Internal Combustion Engine – The Heart of the

Automobile

An internal combustion engine is any that uses the explosive combustion of

fuel to push a piston within a cylinder – the piston’s movement turns

crankshaft that then turns the car wheels via a chain or a drive shaft. The

different types of fuel commonly used for car combustion engines are

gasoline (or petrol), diesel, and kerosene.

A brief outline of the history of the internal combustion engine includes the

following highlights.

1680 - Dutch physicist, Christian Huygeness designed (but never built)

an internal combustion engine that was be fueled with gunpowder.

1807 - Francois Isaac de Rivaz of Swizerland invented an internal

combustion engine that used a mixture of hydrogen and oxygen for

fuel. Rivaz designed a car for his engine – the first internal

combustion powered automobile. However, this was a very

unsuccessful vehicle.

1824 - English engineer, Sumuel Brown adapted an old Newcomen

steam engine to burn gas, and he used it to briefly power a vehicle up

Shooter’s Hill in London.

1858 - Belgian – born engineer, jean joseph Etienne Lenoir invented and

patented (1860) a double-acting, electric spark-ignition internal

combustion engine fueled by coal gas. In 1863, Lenoir attached an

improved engine (using petroleum and a primitive carburetor) to a

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three-wheeled wagon that managed to complete an historic fifty-mile

road trip. (See image at top)

1862 - Alphonse Beau de Rochas, a French civil engineer, patentee but

did not build a foru-stroke engine (French patent #52, 593, January

16, 1862).

1864 – Austrian engineer – Siegfried Marcus*, built a one-cylinder

engine with a crude carburetor, and attached his engine to a cart for a

rocky 500-foot drive. It was the world’s first gasoline-powered

vehicle. Several year later, Marcus was able to design a vehicle that

briefly ran at 10 mph that some historians consider was the forerunner

of the modern automobile.

1873 – George Brayton, an American engineer, developed an

unsuccessful two-stroke kerosene engine (it used two external

pumping cylinders). However, it was considered that first safe and

practical oil engine.

1866 – German engineers, Eugen Langen and Nikolaus August Otto

improved on Lenoir’s and de Rochas’ designs and invented a more

efficient gas engine.

1876 – Nikolaus August Otto invented and later patented a successful

four stroke engine, known as the “Otto Cycle”.

1876 – The first successful two-stroke engine was invented by Sir

Dougald Clerk.

1883 – French engineer, Edouard Delamare – Debouteville, built a

single-cylinder four-stroke engine that ran on stove gas. It is not

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certain if he did indeed build a car, however, Delamare-Debouteville’s

designs were very advances for the time – ahead of both Daimler and

Benz in some ways at least on paper.

1885 – Gottlieb Daimler invented what is often recognized as the

prototype of the modern gas engine – with a vertical cylinder, and

with gasoline injected through a carburetor (patented in 1887).

Daimler first built a two-wheeled vehicle the “Reitwagen” (Riding

Carriage) with this engine and a year later built the world’s first four-

wheeled motor vehicle.

1886 – On January 29, Karl Benz received the first patent (DRP No.

37435) for a gas-fueled car.

1889 – Daimler built an improved four-stroke engine with mushroom-

shaped valves and two V-slant cylinders.

1890 – Wilhelm Maybach built the first four – cylinder, four – stroke

engine.

Engine design and car design were integral activities, almost all of the

engine designers mentioned above also designed cars, and a few went on to

become major manufactures of automobiles.

Hailed as ‘the industry of industries’ by Peter Drucker, the founding father

of the study of management, in 1946, the automobile industry had evolved

continuously with changing times from craft production in 1890s to mass

production in 1910s to lean production techniques in the 1970s.

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The automotive industry in India grew at a computed annual growth rate

(CAGR) of 11.5 percent over the past five years, the Economic Survey

2008-09 tabled in parliament on 2nd July’09 said.

The industry has a strong multiplier effect on the economy due to its deep

forward and backward linkages with several key segments of the economy, a

finance ministry statement said.

The automobile industry, which was plagued by the economic downturn

amidst a credit crisis, managed a growth of 0.7 percent in 2008-09 with

passenger car sales registering 1.31 percent growth while the commercial

vehicles segment slumped 21.7 percent.

Indian automobile industry has come a long way to from the era of the

Ambassador car to Maruti 800 to latest M&M Xylo. The industry is highly

competitive with a number of global and Indian companies present today. It

is projected to be the third largest auto industry by 2030 and just behind to

US & China, according to a report. The industry is estimated to be a US$ 34

billion industry.

Indian Automobile industry can be divided into three segments i.e. two

wheeler, three wheeler & four wheeler segment. The domestic two-wheeler

market is dominated by Indian as well as foreign players such as Hero

Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc. Maruti

Udyog and Tata Motors are the leading passenger car manufacturers in the

country. And

India is considered as strategic market by Suzuki, Yamaha, etc. Commercial

Vehicle market is catered by players like Tata Motors, Ashok Leyland,

Volvo, Force Motors, Eicher Motors etc. The major players have not left any

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stone unturned to be global. Major of the players have got into the merger

activities with their foreign counterparts. Like Maruti with Suzuki, Hero

with Honda, Tata with Fiat, Mahindra with Renault, Force Motors with

Mann.

Some of the early events and milestones in the car industry in India.

1928 – The first imported car on the Indian roads.

1942 – Hindustan Motors incorporated.

1944 – Premier Automobiles started.

1948 – First car manufactured in India.

1953 – The Govt. of India decreed that only those firms which have a

manufacturing program should be allowed to operate.

1955 – Only 7 firms HM, API, SMPL, PAL, M & M, and TELCO

received approval.

Key Facts about India’s automobile industry:

India ranks 12th in the list of the world’s top 15 automakers.

Entry of more international players.

Contributes 5% to the GDP.

Production of four wheelers in India has increased from 9.3 lakh units

in 2002-03 to 23 lakh units in 2007-08.

Targeted to be of $ 145 Billion by 2016.

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Exports increased from 84,000 units in 2002-03 to 280,000 units in

2007-08

The Liberalization in 1990 in India opened the doors for the entry of foreign

products into the market. This made the market a consumer market with a lot

of choices for the consumers. The future of the products depends on the

consumer’s satisfaction. The products, which are able to attract the

consumers, are having a bright future and the others are lost in the

competition. So it is very important to know the pulse of the customers. The

business people should always have correct information regarding the

satisfaction level in the customers. Different ways are to be implemented to

increase the satisfaction level in the customers.

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OBJECTIVES

The main objective of the study is to recognize the sales trend and

segmentation of Maruti Suzuki .

Special challenges that must be identified and addressed:

To know the segmentation and sales trend of Maruti Suzuki.

Along with this I am trying to assess company’s performance compared

with that of the competition.

To know the way Maruti has segmented its cars

To know the areas in which the dealers satisfy their customer and

the areas that they do not satisfy.

To come out with the conclusion and recommendations based on

the analysis and interpretation.

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RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based

on information collected from primary sources. After the detailed study, an

attempt has been made to comprehensive analysis on MARUTI cars use by

the people. The data has been used to cover various aspects like usage,

consumer preference, satisfaction of customer regarding MARUTI. In

collecting requisite data and information regarding the topic elected we

went to the residents of people and collected the data.

RELEVANCE OF THE STUDYThis research is been conducted to the product performance and buying

behavior of consumer in selection of cars. The relevance of the study is the

survey the product performance of famous brands of MARUTI CARS,

which are consumed by people of all age group. During this research is

known which particular brand of car is most preferred by people of different

age groups.

RESEARCH DESIGNFor any researcher the research methodology is most important criteria to

decide before the actual research process starts.

There are many methods for conducting the research; some of them are as

under.

a) Descriptive and analytical

b) Applied and fundamental

c) Quantitative and qualitative

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The design of a research is plan or a model that helps researcher to conduct a

formal investigation and survey. It is an application of methods and

procedures for acquiring the information needs for getting a desired

outcome.

It decides the source of data and methods for gathering data. A good design

ensures that the information obtained is relevant to the research question and

it was conducted by objectives since research design is simply the frame

work or plan for a study.

Out of these all research methods the research method, which was most

suitable for our report was DESCRIPTIVE RESEARCH METHOD because

it provides us all the aspects that we require to conduct the research and get

an appropriate outcome.

DESCRIPTIVE RESEARCH METHODDescriptive research Include surveys and facts finding enquires of different

kinds. The major purpose of descriptive research is description of state of

affairs as it exists at present.

DATA COLLECTIONThe data has been collected from the two sources.

Primary sources

Secondary sources

Primary data: the data which are collected for the first time, directly from

the residents to the base of knowledge and believe of the research, are called

the primary data.

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The normal procedure is to interview some people individually or in group

to get a sense how people feel about the topic. So far as this research is

considered, primary data is the main source of information by the

respondents.

Secondary data: when the data is collected and compiled in the published

nature is called secondary data.

So far as this research is concerned internet, many brochures and

magazines have been referred too.

SAMPLE DESIGNIt is true that it is very difficult to do research with whole universe. So far

this purpose sample size is decided well in advanced and selection of the

sample also has to be specific so that it represents the whole universe.

Sample element: The members selected from the population for doing

the survey constitute the sampling element.

Sample Size: A sample of 100 customers was taken as a sample

element.

Sample area: Sample was taken only in North-Delhi to determine the

attitude of customers towards importance of branding in modern

marketing.

Sample Technique: Convenience Sampling because of time and cost

constraints.

INSTRUMENTS

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Taking into consideration research instruments is selected by us is

questionnaire because it gives more flexibility in terms of the data and has

been asked to the respondents personally and has an idea of getting an

important unknown data that can be collected through their behavior.

Mode of collection data: data collection mode is personal visit and fulfilling

up the questionnaire.

Schedule:Questionnaire preparation 2 days

Data collection 7 days

Data analysis 3 days

Total time require 12 day

DATA COLLECTION

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The first and foremost step in the research process consists of problem

identification. One the problem is defined, the next is the research design

becomes easier. The research design is the basic framework, which provides

guideline for the rest of the research process. The research design specifies

the methods of data collection and analysis.

I. Collection of Primary Data:

Communication and observation are the two basic means used by me for

collecting primary data. Communication involves questioning the

respondents to secure the desired information by using data collection

instrument called ‘Questionnaire’. The questionnaire used in my study is

consisting of closed-end questions and one open ended question.

Closed-end questions:

Fixed alternative questions are used in the questionnaire. This consists of

A. Dichotomous Questions: The respondent is given a choice between

only two alternatives.

B. Multiple-choice Questions: The respondents are given a set of

alternatives to answer.

Open-ended question:

The customers are asked to give suggestions to improve the service in

the form of open-ended question at the end of the questionnaire.

Collection of Secondary Data:

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Internal and external secondary data is collected for the purpose of study.

Internal secondary data is collected within the company. This data includes

company records, previous research reports and other relevant information.

External secondary data is generated from outside. This data includes

publications, government records and Internet etc.

Sampling Procedure:

Sample Size : 100

Sampling Procedure : Simple random sampling approach has been

adopted.

Mode of communication:

There are three different methods of communications used by me.

1. Personal interview

2. Telephone interview

3. Mail interview

Among the three personal interview is the most versatile and flexible mode

of communication. So the personal interview was more frequently for the

study.

Statistical analysis:

Data analysis and interpretation are necessary ingredients to make the

primary data obtained useful for tacking effective strategic moves. The

primary data, which has been collected by survey using a structural

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questionnaire, has been systematically organized, tabulated and edited, so as

to properly analyze and achieve the objectives.

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CHAPTER 2

COMAPANY PROFILE

COMPANY PROFILE

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NAME : Maruti Suzuki India Ltd

LOGO :

Type Public (BSE MARUTI, NSE MARUTI)

Founded 1981

Headquarters DELHI, India

Industry Automotive

Products Cars

Employees 6,903

Website www.http/:marutisuzuki.com/

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a

leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor

Corporation of Japan holds a majority stake in the company. 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. On 17 September 2011, Maruti Udyog was

renamed to Maruti Suzuki India Limited. The company's headquarters

remain in Gurgaon, near Delhi.

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Profile

Maruti Suzuki is one of India's leading automobile manufacturers 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 Indian

government held an initial public offering of 25% of the company in June

2003. As of May 10, 2011, Govt. of India sold its complete share to Indian

financial institutions. With this, Govt. of India no longer has stake in Maruti

Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the

actual production commenced in 1983. Maruti has produced over 5 Million

vehicles. Marutis are sold in India and various several other countries,

depending upon export orders. Cars similar to Marutis (but not manufactured

by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian

countries.

The company annually exports more than 30,000 cars and has an extremely

large domestic market in India selling over 500,000 cars annually. Maruti

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 Alto tops the sales charts.

Due to the large number of Maruti 800s sold in the Indian market, the term

"Maruti" is commonly used to refer to this compact car model. Till recently

the term "Maruti", in popular Indian culture, was associated to the Maruti

800 model.

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Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of

Japan, has been the leader of the Indian car market for over two decades.

It’s manufacturing facilities are located at two facilities Gurgaon and

Manesar south of New Delhi. Maruti’s Gurgaon facility has an installed

capacity of 350,000 units per annum. The Manesar facilities, launched in

February 2007 comprise a vehicle assembly plant with a capacity of 100,000

units per year and a Diesel Engine plant with an annual capacity of 100,000

engines and transmissions.

Manesar and Gurgaon facilities have a combined capability to produce over

700,000 units annually. More than half the cars sold in India are Maruti cars.

The company is a subsidiary of Suzuki Motor Corporation, Japan, which

owns 54.2 per cent of Maruti. The rest is owned by the public and financial

institutions. It is listed on the Bombay Stock Exchange and National Stock

Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were

exported. In all, over six million Maruti cars are on Indian roads since the

first car was rolled out on December 14, 1983.

Maruti Suzuki offers 10 models, ranging from the people’s car, Maruti 800,

for less than Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4

and luxury SUV, Grand Vitara.

Suzuki Motor Corporation, the parent company, is a global leader in mini

and compact cars for three decades. Suzuki’s technical superiority lies in its

ability to pack power and performance into a compact, lightweight engine

that is clean and fuel efficient.

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Maruti is clearly an “employer of choice” for automotive engineers and

young managers from across the country. Nearly 75,000 people are

employed directly by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has

been rated (by customers)first in customer satisfaction among all car makers

in India for seven years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor

partner, to make a people’s car for middle class India. Over the years, the

product range has widened, ownership has changed hands and the customer

has evolved. What remains unchanged, then and now, is Maruti’s mission to

motorize India.

SERVICES OFFERED

The following products are offered by Maruti Suzuki:-

1. Maruti 800: Launched 1983. Largest selling car in India, until 2004.

Cheapest car in India. 3 Face-Lifts.(P)

2. Maruti Omni: Launched 1984. 2 Face-Lifts.(P)

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3. Maruti Gypsy: Launched 1985.(P)

4. Maruti Wagon-R:Launched 1999, 2 Face-Lifts.(P)

5. Maruti Alto: Launched 2000. Currently the largest selling car in India.

1 Face-Lift.({{Tooltip|P|Petrol

6. Maruti Versa(2003-) (P)

7. Maruti Zen Estilo(2005-) (P)

8. Maruti Suzuki Swift 1 very small face-lift(2006- ) (P & D)

9. Maruti Suzuki SX4 (May 2007- ) (P & D)

10. Maruti Grand Vitara Sports Utility Vehicle Launched in (July 2007- ).

Imported(P)

11. Maruti DZiRE Sedan Version of swift launched in (March 2008- ) (P)

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GENERAL DISCRIPTION OF MODELS

MARUTI 800:-

Maruti 800 is a city car manufactured by

Maruti Udyog in India .It used to be the largest

selling car in India until the Maruti Alto

recently took that title. It is also exported to a

number of countries in southeastern Asia including Bangladesh and Sri

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Lanka, and to some South American markets (as Chile, sold as Suzuki

Maruti), and was available in selected European markets between 1988 and

1992, sold as the Suzuki Maruti. In Morocco it is currently sold as Suzuki

Maruti (as of March 2008). The car comes in different versions including

one with air conditioning and one without. It was launched in December

1984 with almost 100% imported components.

MARUTI OMNI :

The Maruti Omni is a microvan manufactured by

Indian automaker Maruti Udyog Limited. The first

version of Maruti Omni had the same 796 cc engine

as the Maruti 800 city car. This was the second

vehicle to be launched by Maruti, one year after the

800, in 1984. Later version of the Omni includes the

Omni (E), released in 1996, 796 cc engine, 8 seater capacity vehicle

Omni XL - 1999, same engine, modified with a higher roof.

Omni Cargo LPG - 2004, created to answer the growing popularity

of this car being used as an inter-city cargo vehicle.

Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG Kit,

authorised by the Indian RTOs (Regional Transport Offices). This makes it

the most economic 4 wheeler in India, as far as the driving costs are

concerned

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MARUTI GYPSY

The Maruti Gypsy is a four wheel drive SUV

based on the Suzuki SJ long wheel

base.Produced in India, it is also a common sight

in Chile and Kenya. Within Europe, it is most

often found in Malta and Hungary. In contrast to

the Suzuki, the Maruti is available with 4 seats and a sizeable trunk. The

Maruti Gypsy is available as a "soft top", "hard top " and as an "ambulance

car". In India, it is widely used by the police and defense forces. In civilian

use, the Gypsy is a popular choice as a low-cost SUV and is a common sight

at rally events.

MARUTI WAGON-R

The Maruti Wagon-R is a made for India

version of Suzuki Wagon R. The Wagon-R was

born out of Japanese kei-jido-sha restrictions

which dictated a limited length and engine size.

This boxy, tall-boy design has now completed

five years of presence on Indian roads. Now the car has found a market for

itself, especially among young Indian urban professionals who don't mind its

boxy slab-sided looks, but value its Maruti lineage. The car is currently

among India's top five best-selling cars.

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MARUTI ALTO

The Maruti Alto is a city car manufactured

by Maruti Udyog in India. It is the best-

selling car in India.It is India's largest selling

car and has recently crossed the 1 million

production figure.It is exported to a number

of countries including Bangladesh and Sri Lanka, and to Chile. Alto has

crossed the 150,000 export target. The popularity of the Alto has increased

over the past few years, mainly due to the reduction in prices. This reduction

in prices has mainly come in due to the reduction in excise duty over time. It

has now become the first choice of young car buyers intending to upgrade

from a 2 wheeler. Some of its appeal is from stylish looks, attractive

features, and impressive fuel economy at very affordable prices compared to

the other cars in the Indian market.

MARUTI VERSA

The Maruti Versa is a micro van produced by

Maruti Udyog Limited and sold in India since

October 2001. The Versa is a clone of the now

discontinued Suzuki Carry. It is the second van

released by Maruti Udyog since the Maruti

Omni was released in 1984. There are two basic versions of this car in

production; the two 8-seater DX/DX2 versions, and the 5-seater STD

version. The DX2 version of the Versa is equipped with twin air

conditioners for front and rear.

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MARUTI SUZUKI SWIFT

The MARUTI Suzuki Swift is name

plate marketed by Suzuki carried by

vehicles of three distinct derivations:

Generations I, II, III: a super

mini that began as an export

nameplate of the Japanese domestic market of suzuki .

Generation IV: the current JDM, Europe and Oceana generation, a

significant departure from the previous models, marketed solely under

the nameplate "Swift". (this article)

Canadian Swift+: the current Canada-only generation marketed

under the Suzuki swift.

Currently this varient is hot seller in India in the mini car segment.

MARUTI SUZUKI SX4

In an attempt to strengthen its position in

the of Sedan cars market, Maruti Udyog

Ltd. has launched its premium model

bearing name SX4. After Maruti Suzuki

Swift, SX4 is the second international

model being launched in India. Suzuki

SX4, is an A3 segment sedan car, with a perfect combination of style,

performance, safety and comfort. There are two versions of Suzuki SX4: Vxi

and Zxi that gets power from latest and efficient 1.6-litre M-Series engine

30

Page 36: Maruti Suzuki

delivering impressive 102 BHP of power. Having the price tag of between

Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough competition to its

rivalry models like Ford Fiesta, Hyundai Verna, Honda City, and Indigo XL.

MARUTI SUZUKI DZIRE

Maruti Swift Dzire is the new

entry level sedan from Indian

automaker Maruti Suzuki.

Launched on March 26 2008,

Maruti DZiRE is based on the

popular Maruti Swift platform.

The DZire replaces Maruti Suzuki’s popular entry level sedan, Maruti

Suzuki Esteem, production of which was discontinued in late 2007. Maruti

Suzuki has introduced DZire only in the Indian market. The car is pitted

against the other entry level sedans in the Indian market, such as the

Mahindra Renault Logan and the Tata Indigo.

MARUTI SUZUKI ESTEEM

Sophisticated big structured Maruti

Suzuki esteem is one of the old car

of the Maruti Udyog group. To run

this huge car its engine is made of

lightweight all-aluminum. This

contemporary engine has capacity of 65 bhp at 6000 rpm . According to

*Mileage (Auto India , Nov 2005), Esteem holds the topmost position on

mileage among the other category of cars including the small cars. The

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Esteem was introduced in the global market in 1995 as Suzuki's first attempt

in the compact segment, at the time dominated by European cars such as the

Volkswagen Bora/Jetta and Opel Astra, and Japanese models such as the

Nissan Sunny/Sentra and Toyota Corolla. As a North American replacement

for the Suzuki Swift sedan (the 3-door hatchback remained after it was

redesigned in 1995), it was built on a slightly stretched Suzuki Cultus

platform for improved cabin room, but otherwise sharing most of internal

components with the smaller model — and marketed as a distinct model

MARUTI SUZUKI BALENO

The Baleno has the looks and feel of a

winner. This was Maruti Udyog's first D-

segment car launched in India to compete

with the Mitsubishi Lancer and the Honda

City. This is also Suzuki's biggest passenger

car and in Japan and other markets. The

Baleno is called the Cultus in Japan. Suzuki

restyled the Baleno in 1999. The car was given a new front end, with a

rounder grille and new headlights, and the engine lineup was expanded.

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MARUTI SUZUKI GRAND VITARA

The Suzuki Grand Vitara is a

compact SUV, namely a long-

wheelbase version of the Vitara,

produced by the Japanese

automaker Suzuki since 1999. It

was face lifted in 2002 and 2004,

and redesigned in 2006. A rebadged

version was sold in North America by General Motors as the Chevrolet

Tracker. The Tracker is sold in Latin America, but Mexico, as Chevrolet

Grand Vitara. In Mexico, Grand Vitara and Tracker are different vehicles,

sold by Suzuki and Chevrolet respectively The 2006 model has had a

structural redesign with a new ladder-boxed chassis integrated into a

unibody construction. In India, it is sold as a Maruti.

MARUTI SUZUKI ZEN-ESTILO

Estilo has got Wagon R's engine and

chassis and Suzuki MR Wagon's shape.

Whatever remains is taken from Zen, well

does anything remain actually? This is the

mixture of zen and wagon -R . 'Zen Estilo'.

In essence its stylish Wagon R, Japan's

MR Wagon, combination of the two or anything but Zen. It seems Maruti

wants to exploit Zen brand-image hence named this car after Zen. With this

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model MSL has given it’s B segment a new variant by which it may

compete with the models of other company.

ORGANISATIONAL STRUCTURE

Maruti has believed, since the very beginning that it is its employees who

could make it into an organization with a difference .Accordingly, as against

the traditional hierarchical

System of management, which causes unnecessary delays in decision-

making, we have built up a flat organization with a family type of

atmosphere at our place of work.

The company is divided into different divisions according to the various

functional areas. A Divisional Manager heads each Division. Divisions are

further divided into Departments that are headed by Department Managers

who report to the respective Divisional Managers. Designations in the

company are based on the functional responsibility and not levels as in terms

of the company’s philosophy designations and functional responsibility are

de-linked from the salary levels.

The total operations of the Company are divided into Divisions like

Marketing & Sales, Spares, Engineering, Q.A. & Services, Production,

Production Engineering, Materials, Information Services, Finance, Personnel

& Administration, etc. Each division is furthering divided into Departments

and headed by Departmental Managers who is assisted by Supervisory

Executives.

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THE HIERARCHY DIAGRAM OF MSIL

35

Page 41: Maruti Suzuki

DIVISIONS AND DEPARTMENTS

Corporate Services Division

Legal & Secretarial Department

Corporate Communication Cell

Protocol

Strategic Initiative Group

Recruitment & Management Compensation

Human Resource Division

Employee Relations Department

Establishment & Time Office

Factory Administration Department

Organizational Development Department

Production Division

Plant- 1

Plant- 2

Plant- 3

Plant- 6 at Manesar

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Page 42: Maruti Suzuki

Production Engineering

Production Engineering Division

Production Service Division

Engineering Directorate

QAIN Division

Service Division

Service- 1-5

MSS(D)

Parts Inspection Division

Engineering Division

Supply Chain division

Supply Chain- 1,2,3 Division

Shipping & transport Department

Imports Department

Consumables Department

Information Technology Division

Application Group1 (AG1)

Application Group2 (AG2)

Application Group3 (AG3)

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Page 43: Maruti Suzuki

Information Technology Strategies(ITS)

IT Operation and Services(ITOS)

Marketing & Sales Secretariat

Marketing Strategy & Development

Marketing

Sales

Exports

Web-IT, E-Commerce

Spare Parts Division

Spare Parts Procurement

Warehousing & Dispatch

Spare Parts Sales

Accessories

Vigilance Division

Security Wing

Vigilance Wing

Finance Division

Budget, Cost & Accounts Department Income Accounting

38

Page 44: Maruti Suzuki

The total project costs, priority, completion time and personnel’s required

were estimated. Initial plans were drawn up as to how the project would

proceed to its final implementation, while running the existing system

so that company’s information needs were not affected.

SEGMENTATION :

CAR MARKET CLASSIFICATION

It is necessary to understand the Indian car market classification and the

segments in which MUL operates.

There are two principal systems of classification in the Indian passenger car

industry:

A. Price Based Classification

Price based classification is the widely accepted classification basis in the

Indian passenger car industry.

The different price segments used by Maruti were as follows:

1. Segment A – cars priced lower than Rs. 300,000

2. Segment B – cars priced between Rs. 300,000 and Rs. 500,000

3. Segment C – cars priced between Rs. 500,000 and Rs. 1,000,000

4. Segment D – cars priced between Rs. 1,000,000 and Rs. 2,500,000

5. Segment E – cars priced above Rs. 2,500,000

B. Length & weight Based Classification:

In April 2002, SIAM introduced a new segmentation of cars on the basis of

the length of the cars, in order to establish a uniform industry standard. The

new segmentation of passenger vehicles is as follows:

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Page 45: Maruti Suzuki

1. Passenger cars

• Segment A1 (Mini) – cars having a length up to 3,400mm

• Segment A2 (Compact) – cars having a length of 3,401- 4,000mm

• Segment A3 (Mid-size) – cars having a length of 4,001- 4,500mm

• Segment A4 (Executive)– cars having a length of 4,501- 4,700mm

• Segment A5 (Premium) – cars having a length of 4,701- 5,000mm

• Segment A6 (Luxury) – cars having a length of more than 5,000mm

1. Utility vehicles

• Weight up to 3.5 tonnes

a) Seating capacity not exceeding 7 (including driver)

b) Seating capacity between 7 and 9 (including driver)

• Weight up to 5 tonnes

a) Seating capacity not exceeding 13 (including driver)

• Multi-purpose vehicles (Weight up to 3.5 tonnes).

Maruti’s Offering and Competitors in Different Segments:

Manufacturer Name of the

Model

Segment as

per

length-based

classification

Segment as

per

price-based

classification

1. Daimler

Chrysler India

Pvt. Ltd.

C Class

A6: Luxury

A4: Executive E

E 250 A5: Premium E

S Class S Class E

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Page 46: Maruti Suzuki

Manufacturer Name of the

Model

Segment as

per

length-based

classification

Segment as

per

price-based

classification

2. Fiat India

Automobiles

Pvt. Ltd.

Fiat Palio A2: Compact B

Fiat Siena A3: Mid-size C

Fiat Uno A2: Compact B

Palio

Adventure

A3: Mid-size C

3. Ford India

Ltd.

Escort A3: Mid-size C

Ikon A3: Mid-size C

Mondeo A5: Premium D

4. General

Motors India

Ltd.

Opel Astra A3: Mid-size C

Opel Corsa A3: Mid-size C

Opel Swing A3: Mid-size C

5. Hindustan

Motors

Ambassador A3: Mid-size B

Contessa A4: Executive C

Lancer A3: Mid-size C

6. Honda SIEL

Cars India Ltd.

Accord A5: Premium D

City A3: Mid-size C

7. Hyundai

Motor

Company Ltd.

Accent A3: Mid-size C

Santro A2: Compact B

Sonata A5: Premium D

Maruti Udyog Maruti 1000 A3: Mid-size C

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Page 47: Maruti Suzuki

Manufacturer Name of the

Model

Segment as

per

length-based

classification

Segment as

per

price-based

classification

8.

Ltd.Maruti 800 A1: Mini A

Maruti Swift A2 : Mid size

Alto A2: Compact B

Baleno A3: Mid-size C

Esteem A3: Mid-size C

WagonR A2: Compact B

Zen A2: Compact B

Versa Utility

vehicles

C

Omni Utility

vehicles

A

9. PAL-Peugeot

Ltd.

118NE A3: Mid-size B

10. Tata

Engineering &

Locomotive

Company Ltd

Indica A2: Compact B

SECTOR OUTLOOK

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Page 48: Maruti Suzuki

Between fiscal 2002 and fiscal 2007, the entire Indian passenger car

market had a growth of approximately 9.5%, largely as a result of increasing

demand for segment B cars .

Segment A

This is the entry-level and the most price sensitive segment. Maruti is

the sole manufacturer in this segment since fiscal 2000. Models like Maruti

800 are the ruler in this segment anybody who is economic wants to buy this

model so during the period of 2000-05 this was the hot selling product from

Maruti.

Segment B

This segment is shining with a growth of approximately 57.6% of the

Indian passenger car market. Due to the present low per capita income in

India, the price and cost of ownership of cars are significant factors that

affect demand for cars in this segment. Alto, Zen , Swift, Wagon-R , Gypsy

etc are the models that anyone can find them in any corner of this country.

This segment comprise of 69% from the whole sale of Maruti Suzuki. This

segment is always focused by Maruti and it is still improving this segment.

Segment C, D, and E

There are 11 manufacturers with approximately 20 models in these

segments. These segments typically have low sales volumes; therefore, high

growth rates of 11%, 19% and 35%, respectively . But in this segment

Maruti has lesser number of product. SX4, Dzire and Grand Vitara is the few

models in this segment. New model launches, growth in per capita income

levels, high aspirations and status associated with larger cars, are the key

factors affecting demand for cars in these segments. Maruti has to improve

this segment to fight with others.

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Page 49: Maruti Suzuki

THE PRE-OWNED CAR MARKET

The size of the pre-owned car market in India has been estimated to be more

then the size of the new car market. The A and B segments account for

between 70 and 80% of the total sales volumes in the pre-owned passenger

car market in India. The proportion of pre-owned cars from segment B is

increasing and is expected to form the largest portion of the pre owned

passenger car market. Mid-size and large cars are less popular in the pre-

owned passenger car market. Here also Maruti Suzuki started its own

market known as TRUE VALUE. Here the company sell all kind of cars

without altering their specification,

COMPARATIVE STUDY OF MODELS OF MARUTI AND ITS COMPITATORS IN DIFFERENT SEGMENTS

Maruti Tata Hyundai Honda GM Toyota Ford Skoda

A M-800

Omni

Indica --- --- Spark --- --- ---

B Gypsi

Zen

Wagon

Alto

Swift

Indig

o

Santro

Getz

--- Aveo-uav --- Ikon ---

C Sx4

Dzire

Safari

Somo

Accent

Verna

City Aveo

Optra

Innova

Corolla

Fiesta

Fusion

Fabia

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Travera

D Vitra --- --- Civic

Crv

Captive Camry

Altis

Endeavour Octavia

E --- --- Sonata

Tucson

Accord --- Prado --- Laura

Superb

This table shows that the Maruti Suzuki has larger number of variety in the

segment A&B so the sales must be good in this segments. But it is lacking

behind its competitors in segment C,D & E.

SWOT ANALYSIS OF MARUTI SUZUKI

STRENGHS

Bigger name in the market

Trust of People

Maruti Udyog Ltd. is the market leader for more than two decade.

Has a great dealership chain in the market.

Better after sales service

Low maintenance cost of vehicle

WEAKNESSES

Exports are not that good.

Lesser diesel models in the market compare to others

Global image is not that big

OPPORTUNITIES

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Great opportunities to go global with success of Swift and SX4All

over

Introduction of more diesel models. The diesel car segment is

growing.

Opportunity to grow bigger by entering into bigger car markets

Already a market leader so great opportunity to be the king of market

in every stage of industry

THREATS

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

To the market share, as many big names are coming in the industry

There is hardly any diesel models

Rs. 1 lakh – Rs. 1.5 lakh car

46

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CHAPTER 3

DATA ANALYSIS

47

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DATA COLLECTION:

DEALERS OF MARUTI SUZUKI

NAME OF THE DEALER ADDRESS

AAA VEHICLEADES PVT. LTD., B-80, Naraina Industrial Estate,

Phase-II, New Delhi 110037

Aalianz Automobiles Kamal Cinema Building, Safdarjung

Enclave, New Delhi, Delhi, 110029

Apra Auto (India) Pvt. Ltd. K-804/2, Mahipalpur, Vasant Kunj

Road, Delhi-110037

Bagga Link Motors (P) Ltd 395, Patparganj Indl. Area, Delhi,

110092

Competent Automobiles Co Ltd 3 Gazipur, Delhi (EAST), New

Delhi, Delhi-110092

Component Automobiles Co.LTD, A-24-25, Madhu Vihar, Raja Puri,

(Opp. Sec-5, Dwarka, New Delhi,

Delhi, 110059

D D Motors A-100, Mayapuri Phase II, New

Delhi – 110015

D.D.Motors 5, Wazirpur Indl. Area, Near

Wazirpur Bus Depot, New Delhi,

110052

Fair Deal Cars (P) Limited 485-A, Jhilmil Main G.T.Road,

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Page 54: Maruti Suzuki

Shahdara, Delhi 110095

Krish Automotors Pvt Ltd. Mam Ram Majesty Mall,Plot No.2,

Road No. 43,Guru Harkishan Marg,

Pitam Pura, Pitam Pura, Delhi –

110034

Magic Auto ( A Unit of Magic

Leasing Finanace Pvt Ltd)

DMRC, Metro Station Sector-9,

Dwarka, Delhi

Rana Motors Pvt Ltd Rikhi House, A 2/7 Safdarjung

Enclave, Opp. Bhikaji Cama Place,

Delhi-110029

Q.1 From how many years you are selling Maruti Suzuki cars.

DATA TABLE

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Page 55: Maruti Suzuki

NO OF YEARS % of Response.

More than 2 years 65

More than 5 years 30

More than 10 years 5

DATA ANALYSIS

From the above table it is clear that the most of dealers i.e 65% of them are

having more than 2 years experience , 30 % of them are having more than 5

years experience and only 5 % have more than 10 years of experience with

them.

DATA INTERPRETATION:

So the above query clears that all the dealers are experienced enough to

understand the trend of sales and segmentation of Maruti Suzuki . And they

can also add valuable suggestion to us for the recommendation part.

Q.2 Which segments of cars you are selling more?

0%20%40%60%80%

65%

30%5%

YEARS OF SELLING

More than 2 years More then 5 years More than 10 years

No of years

% RESPONSE

020406080

12

69

13 5 1

SALES IN DIFFERENT SEGMENTS

A B C D E

SEGMENTS

% OF SALES

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DATA TABLE

DIFFERENT SEGMENTS % OF SALES

A 12

B 69

C 13

D 5

E 1

DATA ANALYSIS

From the table we can conclude that % of sale of Segment is 12, segment B

is 69, segment C is 13 , Segment D is 5 and segment E is only 1 %.

DATA INTERPRETATION

Here we see that Maruti Suzuki is market leader in B-segment car , So the

models Like Wagon –R, Alto, Zen Estilo, Swift are the hot selling product

of It. However, it is lacking in the segments like D and E. Cars like Dzire ,

SX4 and Grand Vitara should be improved in accordance with the

customer’s need.

Q3 Is customer is price sensitive?

62%

38%

PRICE SENSITIVENESS

YES NO51

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DATA TABLE

PRICE SENSITIVITY % OF RESPONSE

YES 62

NO 38

DATA ANALYSIS

The above data table shows that 62% of customers are price sensitive and

rest 38% are not price sensitive.

DATA INTERPRITATION:-

We can conclude that most of Maruti’s customer is price sensitive.

They buy its cars care fully in accordance of their budget. And they also like

some discount or festive offers. But the rest people are not price

sensitive.They buy the models like SX4, Dzire and grand Vitara , they buy

according their choice and specification.

Q.4 What is competitive advantage of Maruti over other cars companies.

010203040

38

2235

5

COMPITATIVE ADVENTAGE

price quality service others

FEATURES

% OF LOYALITY

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DATA TABLE

FEATURES % OF LOYALITY

PRICE 38

QUALITY 22

SERVICE 35

OTHERS 05

DATA ANALYSIS

The above table shows that according to the dealers the 38 % of customers

are buying the Maruti Suzuki product for its price, 22 % buy them due to

their quality. 35% think that after sale service is beautifully provided by

Maruti . And 5% people buy them due to other reasons like style , look etc.

DATA INTERPRETATION:

We can conclude that most of the people think that Maruti Suzuki pricing

are economical so they are loyal to his brand. While other people give

emphasis to the after sale service . Quality and other features are also a trait

for the buyers.

Q.5 Which version of the models are mostly demanded by the customer

0 5 10 15 20 25 30 35 40 45

3645

19

Version which customer want

LPG disel petrol

% of demand

vers

ion

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DATA TABLES

VERSION % OF DEMAND

PETROL 36

DISEL 45

LPG 19

DATA ANALYSIS

From the above table we can conclude that according to the dealers 45 % of

the customer ask for the diesel variants while 36 support the petrol variants

and 19 % wants the LPG variants of different models.

DATA INTERPRETATION

The demand for the diesel variant is more for most of the models but the

firm has limited number of the models having diesel variants. The customers

are also looking for the gas models which will suitable for LPG and CNG.

So the firm should think for the diesel and gas variants.

Q6. What is its sales position of Maruti Suzuki?

65%

32% 3%

Sales Positions

going up going down remnins constant54

Page 60: Maruti Suzuki

DATA TABLE

SALES POSITIONS % OF RESPONSE

GOING UP 65

GOING DOWN 32

REMAINS CONSTANT 3

DATA ANALYSIS

The above table shows that 65% of the dealers told that Maruti Suzuki’s

sales position is going up while 32% of the dealers said that it is going down

and 3% of dealers said that the sales position is remaining the same.

DATA INTERPRITATIONS

Here we can conclude that the sales position of Maruti Suzuki is going up

and up . So Maruti Suzuki should always maintain this. But the reason why

it is lacking behind than its competitors should be corrected. In this way

MSL can maintain its growth rate.

SALES TREND:

SALES TREND STUDY OF MARUTI SUZUKI

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Since inception, Maruti Suzuki has produced and sold over 7 million

vehicles including 500,000 units in exports markets. The company sold a

record 764,842 vehicles in 2007-08 including 53,024 units of exports.

Maruti's revenue has grown consistently over the years. In 2006-07, it

recorded turnover of INR 145,922 million which rose to INR 178,603

million in 2007-08, displaying a growth of over 20% vis-à-vis the previous

year. At the end of fiscal 2007-08, it had a market share of over 50% of the

Indian passenger car market.

(CHART SHOWING SALES AND PROFIT OF MARUTI SUZUKI)

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(GRAPH SHOWING THE OVER ALL MARKET SHARE OF

MARUTI SUZUKI )

Maruti Suzuki is marinating its reputation among the customer since it

come to India. If we analyze the total market share of Maruti Suzuki then we

will come to know that it captures 51.4% of passenger segment while the

total share of this segment is 78% , it captures 89% of multi purpose vehicle

while the total share for this segment in Indian market is 6% , It also capture

1.6% of utility vehicles from the total of 16% for this segment.

Hence Maruti Suzuki is capturing a over all share of 46% of car

market in India.

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SALE’S STRATEGY OF MARUTI SUZUKI

Maruti’s marketing objective is to continually offer the customer new

products and services that:

reduce the customer’s cost of ownership of cars; and

Anticipate and address the customer’s needs and preferences in all

aspects and stages of car ownership, to provide what Maruti Suzuki

refer to as the “360 degree customer experience.”

Maruti Suzuki has been aggressively cutting prices of its models since the

beginning of the year. It began the year by slashing the price of Esteem's

diesel version followed by a by the reduction on the premium segment

Baleno. Then the mid sized Versa's price was slashed, Alto's price tag was

then pruned putting its base variant at par with the AC version of M800.

The rationale behind the price cuts is the focus on offering new upgraded

vehicles at a low price.

Warranty and Extended Warranty Program

Maruti Suzuki offers a two-year warranty on all the vehicles at the

time of sale. The dealers are required to address any claim made by a

customer, in accordance with practices and procedures prescribed by Maruti

Suzuki, under the provisions of the warranty in force at that time. The

dealers subsequently claim the warranty cost from Maruti Suzuki. Maruti

Suzuki analyze warranty claims from dealers and either claim the cost from

the vendors, in the case of defective components, or bear the cost ourselves,

in the case of manufacturing defects.

Maruti Suzuki also offers an extended paid-warranty program marketed

under the brand, “Forever Yours” for the third and fourth year after

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purchase. The extended warranty program is intended to maintain the

dealer’s contact with the customer and increase the revenue generated from

sale of spares, accessories and automobile-related services. An effort is

made during the period of the extended warranty to encourage the customer

to exchange his existing Maruti car for a new Maruti car, or upgrade to a

new Maruti car.

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CHAPTER 4

CONCLUSION

60

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CONCLUSION

The research work was successfully identifying the different segmentation of

Maruti Suzuki and also the sales trend. The conclusion can be drawn from

this study may be:-

Maruti Suzuki is India’s one of the leading auto mobile

manufactures and also the leader of the market both in terms of

volume and revenue generated.

MSL (Maruti Suzuki Limited) has segmented the market in to A,

B, C, D and Eon the basis of price and length and weight. Between

fiscal year 2002 and 2007 the market of automobile grew at rate of

9.5%.

In segment A price always plays a vital role MSL was the sole

manufacture till 2000, Maruti 800 was the hot seller till 2005.

In segment B growth of automobile was 57.6% where Maruti

captures a share of 69%. Its products like alto and Zen are two role

models with these segments.

In C,D and E segment Maruti has number of competitors and has a

less growth . In this segment also MSL lack of more models than

other company.

Taking the sale trend in to account MSL sold a record number of

vehicle 7, 14,842 in 2007-08 including 53,024 units of export. In

2007-08 it record a turnover of INR 145,922 million which rose to

178,603 million in 2007-08 showing a growth of 20%.

MSL has also captured 51.4% of passenger car segment while the

total share of this segment is 78%. It also captures 89% of multi –

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purpose vehicles. And 1.6 % in sports utility vehicle segments. So

in every segment Maruti Suzuki has shown its presence.

Hence Maruti Suzuki Limited has captured over all share of 46%

in the Indian car market.

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CHAPTER 5

RECOMMENDATIONS

63

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RECOMMENDATION

Initially Maruti was operating in the market which was a part of

closed economy but with opening of market, the scenario has changed

dramatically and at an international juncture where both challenges

and opportunity are immense.

With such immense growth Indian auto mobile sector attracts the

global players, who want to make their name a house hold name in

Indian auto mobile sectors.

Hence Maruti has a tough competition from the companies like

Hyundai, GM, Honda, Telco, ford etc.

So Maruti should improve its segments like :-

1. Segment B whose maximum market share is captured by

Maruti Suzuki is facing a tough competition from players like

Hyundai; it lunched its SANTRO Xing and I10 to give more

excitement in this segment. So Maruti should improve this

segment by lunching newer models with better facilities.

2. Almost 18 years the 800 is on its last stage. So Maruti should

think a replacement of this model or should improve this model,

otherwise it will face a tough competition from the TATA

NANO.

3. Over the years MSL brand value had begun to erode as it is

known as the market leader of small car segments but as the

market is open now and the purchase power of people is

increased MSL should look in the segments such as D and E. In

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this segment players like Honda, Toyota and Ford has more

models than Maruti. So Maruti should lunch more vehicles in

this segment.

4. A industry where the models are given numbers of features

every year Maruti is still lacking of the features in its models

such as Maruti Zen did not changed o from its date of lunch .

So Maruti should renew its models.

5. Maruti is still has problems in its mid size variants as the

products like Esteem, Versa and Baleno is no more a favorite

by the customers. So MSL should think to re lunch these

products with higher features.

6. Maruti is offering the diesel variant in a less numbers of

models. As this variant is more demanded by the customer

MSL should look into this matter. It should also offer the CNG

enable models to take newer market share.

7. By taking these recommendations MSL should improve its

image and market share.

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BIBLIOGRAPHY

The essence of the report, are inspired and collected by these sources, listed

in this chapter, not fully but partially as advisory notes.

BOOKS:

ESSENTIAL OF MANAGEMENT CONCEPT -KOONTZ O

DONNEL

MARKETING MANAGEMENT – PHILIP KOTLAR

MARKETING MANAGEMENT - RAMASWAMY

NAMAKUMARI

RESEARCH METHODOLOGY - C R KOTHARI

WEB SEARCH:

http://www.marutisuzuki.co.in

http://www.wikipedia.com

http://www.yahoosearch.com

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ANNEXURE

QUESTIONNAIRE

NAME OF THE DEALER:

ADDRESS:

1. From how many years you are selling Maruti Suzuki cars ?

a) More then 2 years b) More then 5 Years

c) More than 10 Years

2. Which segments of cars you are selling more?

a) A b) B

c) C d) D

e) E

3. What is reason behind it.

4. Is customer is price sensitive.

a) Yes b) No

5. What is competitive advantage of Maruti Suzuki over other cars

companies.

a) Price b) Quality

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c) After sales service d) Other

6. Which version is the customer prefer more.

a) Petrol b) diesel

c) LPG or GAS

7. Why customer does not prefer other segments?

8. What is its sales position of Maruti Suzuki?

a) going up b) going down

c) remains constant

9. What is the reason Maruti has less models in the segment D and E.?

10. Any suggestion or recommendations for MSL

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