52644644 Project Report on Maruti

8/6/2019 52644644 Project Report on Maruti

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A

PROJECT REPORT

ON

CUSTOMER PROFILING & PURCHASE

PARAMETERS

MARUTI

SUZUKI

RKBKAUTOMOBILES-GORAKHPUR

SUBMITTEDINTHEPARTIALFULFILLMENTFORTHEAWARDOFTHEDEGREEOFMASTER OF BUSINESS ADMINISTRATION

(2010-2012)

SUBMITTED BY:

GYAN PRAKASH

MBA III SEM

REG NO. 11000185

LOVELY PROFESSIONAL UNIVERSITY

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PREFACE

Summer training at any business organization makes the students

more practical and habitual to analyze the situation in more crucial

a refined way, which ultimately contributes a later stage of

practice. It also helps in filling up the gap between theoretical and

practical experience. The business winner will be those

organizations that size and expert opportunity by strategically

positioning themselves.

The Objective of this project is to find out the awareness of

individual towards the automobiles. And other most important

objective of this project to know about customer profiling and

purchase parameter

During preparing this project I met many investors who have

decided to buy a car. We use some source of information to

prepare this project. We prepare this project on behalf of RKBKPvt.Ltd.. Hence this framework is derived from the practice

adopted by the companies in order to sustain and grow.

I am serving the following pages that will endow the reader with

insight in to the Indian automobiles sector from the corporate

view- point. This study has been very useful learning experience

enriching knowledge in the field of automobiles sector.

GYAN PRAKASH

MBA III SEM

ACKNOWLEDGEMENT2


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I, GYAN PRAKASH, MBA Student in LPU,

JALANDHAR is highly grateful to all those who guided me in

completing this project.

First of all, I would like to pay my heartiest thanks to entire

family of Maruti especially Mr. RAJENDRA KUMAR TIWARI

( Manager) RKBK Automobiles Pvt. Ltd., Gorakhpur. who

provided me such a wonderful opportunity to do Summer Training

and provided their valuable suggestions in understanding the work

of Research Project.

Last but not the least, I would like to thanks all faculty members,

LPU, JALANDHAR, who gave me the useful tips and

suggestions regarding project. I would like to thanks Mr. SONU

DUA for imparting his valuable guidance to me.

DECLARATION

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I hereby declare that I have carried out Summer TrainingProject on the topic entitled Customer Profiling & Purchase

Parameters at RKBK Auto Mobiles Pvt. Ltd.

I further declare that this project work is based on my

original work and no part of this project has been published or

submitted to anybody.

GYAN PRAKASH

MBA III SEM

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INDEX5


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Part-1

Page no.

Executive summary

Brief history of the organization 09-18

Organization structure 19-22

About Maruti True Value 23-27

Mission, vision and philosophy of the org. 28

Performance 29-41

Product/services 42-82

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Part-2

Objective 84

Research methodology 85-88

Analysis (SWOT analysis) 89-111

Findings 112

Conclusion 113

Suggestion/Recommendation 114-115

Limitations 116

Annexure 117-120

Bibliography 121-123

Words of thanks 124

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Part-1

Comprehensive chapter about the

Organization which should incorporate

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BRIEF HISTORY OF ORGANISATION

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

not only due 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 license and

a Joint Venture agreement were signed between Govt of India and Suzuki

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

objectives of MUL then were: 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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The Revolution

Maruti created history by record production in 13 months. On 14 December

1983, the then Prime Minister of India, Mrs. Indira Gandhi, handed over the

keys of the first car to Mr. Harpal Singh of Delhi. Volume targets were

routinely exceeded, and in March 1994, it became the first Indian company

to produce over one million vehicles, a landmark yet to be achieved by any

other car company in India. Maruti is the highest volume car manufacturer

in Asia, outside Japan and Korea, having produced over 3.5 million vehicles

by December 2001. Maruti is one of the most successful automobile joint

ventures, and has made profits every year since inception till 2000-01. In

2000-01, although we generated operating profits on an income of Rs 92.5

billion, high depreciation on new model launches resulted in a book loss.

We are again on track for profits in 2001-02, with a profit of Rs 300 million

in the first half. In this period, sales were increased by 5.3%, against an

industry decline of 6.1 %. We revolutionized the wav Indians looked at cars.

"No other car company so completely dominates its home market" - (The

Economist). Despite there being 11 companies now in the passenger car

market, Maruti holds about 60 % of the total market share. MUL is also the

first and only car company in the world to lead its home market in terms of

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both market share and in the JD Power Customer Satisfaction study (JD

Power Asia Pacific 2000 India Customer Satisfaction studies).

Transfer of Technology

Every minute two vehicles roll out of the Maruti Plant. It is therefore

imperative that the transfer of contemporary technology from our partner

Suzuki is a smooth process. Great stress is laid on training and motivating

the people who maintain the equipment, since the best equipment alone

cannot guarantee high quality and productivity. From the beginning it was a

conscious decision to send people to Suzuki Motor Corporation for on-the-

job training for line technicians, supervisors and engineers. This helps them

to imbibe the culture in a way that merely transferring technology through

documents can never replicate. At present 20 % of our workforce is trained

under this program.

Our Ethos

Our employees are our greatest strength and asset. It is this underlying

philosophy that has molded our workforce into a team with common goals

and objectives. Our Employee-Management relationship is therefore

characterized by: Participative Management, Team work, Kaizen,

Communication, Information sharing, and an open office culture for easy

accessibility to implement this philosophy. We have taken several measures

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like a flat organizational structure i.e. 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 common

uniforms (at all levels), and a common canteen for all. This structure ensures

better communication and speedy decision making processes. It also creates

an environment that builds trust, transparency and a sense of belonging

amongst employees.

Maruti eyes Global Pie, to be R&D Hub for Suzuki

New Delhi: With the enhanced backing of Suzuki, Maruti Udyog is gearing

up to become a global scale player and will be a R&D centre for Suzuki cars

outside Japan. Becoming a global player is the resurgent theme of Maruti's

future strategy in the post-privatization phase as listed in the IPO offer

document filed with SEBI.

In terms of manufacturing processes or quality systems or even R&D, the

flavor is global. Clearly, the company wants to build on its leadership in the

domestic market and make a place for itself in the global arena.

After sharp gains in productivity and quality in the past two years, the

company wants to further improve its operating efficiencies by cutting costs

by 30% and enhancing productivity by 50% and align itself with Suzuki's

Kosai plant in Japan by year '04-05. On the quality front, while Maruti was

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amongst the first automobile manufacturers in the world to receive the ISO

9001:2000 certification, it wants to go further and adopt Suzuki's global

customer audit index.

But the biggest shift is in the area of R&D. Although Maruti has gained

from its expertise in localization of components, it now wants to take R&D

to another plane where it can become Suzuki's centre for cars in Asia,

outside Japan.

In fact, it has recently acquired the capability to conduct minor and major

face lifts to its products and upgrade products in terms of technology or

features. To reduce initial investment on models, Maruti may outsource dye

from other than Japan, such as Taiwan, which are often less expensive.

Maruti's initiatives are based also on its recent success in the export market.

It sold nearly 24,000 units of the Alto in Europe last fiscal and its overall

exports were up by a whopping 163% over the previous year.

Its global ambitions are also now nurtured by the backing of Suzuki Motor

Corporation. The prospectus makes this point by Sayin2 that as a subsidiary

of Suzuki, Maruti has "access to globally respected technology in the small

car segment.

Even while maintaining the overall global theme, Maruti wants to leverage

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its local advantage. Its promise of providing customers a "wide range of

Maruti branded services at different stages of ownership" is at par with other

global manufacturers. It lays great emphasis on these Maruti branded

services like insurance, finance and pre-owned cars, and believes that this

"360 degree customer experience" will secure repeat purchase and increase

revenue of the sales network. In supply chain initiatives as well, Maruti's

reference is to the world wide purchase system fostered by General Motors.

Through this, it could make a select few of its vendors the sole suppliers for

Suzuki products in several countries.

Our focus will continue to be the small car: Jagdish Khattar

From a loss of Rs 269 crore in 2000-01, after being written off by many

analysts, Maruti has bounced back: its 800 model is as popular as ever, new

launches are picking up. Jagdish Khattar, managing director Maruti, spoke

to Vinay Pandey on Maruti's transformation. Excerpts: Maruti's turn around:

To understand Maruti today, you need to go back to 1993 when

liberalization took place and foreign manufacturers were allowed to come.

Maruti should have taken proactive measures then. But between 1995 and

1998 our shareholders (the government and Suzuki) had differences.

Decisions that should have been taken in the mid-90s to prepare for

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competition got delayed.

In June 1998, we decided to increase our capacity by one lakh vehicles and

to introduce four or five new models, which arrived a year and a half after

our competitors', who gained from this. Two, investments that should have

been done over five years were done in 24 months in a hurry to launch new

models. So, localization was low, the yen was strong, prices were market-

determined, depreciation increased, and we ran into losses. That's when you

got the feeling Maruti was in trouble.

But internally, it was a very good wake up call, which did a lot of good to

us. We brought out models, localized faster, cut costs massively.

So even when everyone thought we were in trouble, we were confident that

we'd bounce back. Our market share went down to 61%, but we've now

stabilized around 58-59%. We took off a bit late, had lot of catching up to

do, which we've done.

Role of M800: People say 800 is old and so on. But go on the road and see

someone on a two-wheeler, wife and two children, in rain, in winter, in

summer. Is he going to be bothered about power windows and steering, or

does he wish to be in a car and be comfortable?

Today we're selling air-conditioned 800s at Rs 2.2 lakh. Many people

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buying AC 800s may not have an AC at home. So, look at the tremendous

role it is playing.

India's car penetration is six per 1,000; Pakistan and Sri Lanka are at 12.

Thailand is at 200, Japan and America are over 500-600. What I'm saying is

that there's still a huge gap. If our motorization has to increase, we can't do

that by selling expensive cars. We need to make cars more affordable.

Therefore, a narrower gap between two-wheelers and entry-level cars is

what's required. It should also have good performance, no compromise on

quality, fuel-efficient and low on maintenance. The 800 fits the bill.

The Alto can't replace the 800 today because the volume and price at which

800 is selling, we can't sell Alto at that. Yes, once we get costs under

control, we'll position the Alto between segments A and B. We'd like to

have a car from the entry level to Rs 3-3.5 lakh at every Rs 20,000- Rs

25,000 difference.

Success of new models: Historically, Maruti's new models never start with a

bang. I joined Maruti in 1993 when Zen was introduced and we found it

hard to sell initially. We had to reduce our production plan drastically, but

then after a year or two it caught on. And look what it is today.

So, initially there's skepticism, then some people buy and share their

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experience. About 60-70% of our sales take place by referral. I'm not saying

marketing is unimportant, but there's nothing more effective than a present

owner giving a good chit to prospective buyer. We're seeing the same effect

with Wagon R, which is doing really well now.

Versa is slightly different. When we decided on Versa, in 1998, the

government had announced that in April 2002 the administered price

mechanism (APM) for oil would be abolished. The gap between petrol and

diesel prices would have then been negligible. Versa came, but APM

remained.

Now there is no hell of a chance of anyone buying a petrol version when a

diesel alternative is available for the same purpose. For the Versa we've

carried out a lot of localization, the pricing has been reworked and things are

looking up. But some amount of disadvantage between petrol and diesel will

remain.

Those who bought the Baleno are very happy. Also, view it from our

perspective. We launched five models in a space of 12 months. We had to

prioritize. Because of low localization, we were losing money on Baleno.

So it made no sense to just gain numbers. Now some localization has taken

place and the product is getting its due.

The Vitara is different, it's not manufactured here. We'll import what is

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required.

Anyway, our core competence and focus would be the small car because

that is what the county needs and that is where the volumes are. Let us look

at it in another way. There are only four major players in the small car

segment - Telco, Fiat, Hyundai and Maruti and 80 % of the market is the

small car segment. In the remaining market, there are a dozen players. It is a

very lopsided market structure today.

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ORGANISATION STRUCTUR

RKBK Automobiles Ltd

Managing Director

Mr.B.K.Poddar

Director & CEO

Mr. K.P.Poddar

General Manager

Mr.S.K.Thompson

Human Resourse Manager

Mr.Sanjay Pathak

Manager

salesSpares

Customer

Care

Manager

Workshop

Manager

AccountingManagerTrue

Value

Team Leader-1

Mr.Santosh Singh

Team Leader-2

Mr.Sujeet Singh

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Sales executive (se)

[4 sales executive under 1 team leader]


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WORKSHOP MANAGER

Mr.Nasir Ali Khan

Service

Advisor/

Supervisor

Pre-

delivery

Inspection

(PDI)

Accidental

Unit

Customer

Manager

Mr.C.Moitra

Back Office

Mechanic Customer

Care

Manager

Mechanic

Jr.Mechanic

Electrician

Denter/Painter

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Duties and Responsibilities of the Staff in RKBK.

TRUE VALUE MANAGER

Mr.R.K.Tiwari

Evaluaters

Executive

Sales

Executive

Back Office

Staff

A/C Department

Sr.Manager A/c

Mr.K.N.Ojha

A/C Manager

Executive A/C Manager

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The duties and responsibilities of the staff of the dealer RKBK Automobiles

ltd is

To sale maximum vehcles .

To maintain all the a/c with honesty.

To create healthy environment in the organisation.

To co-oporate with each other in the organisation.

To maintain good relation with the customers.

To be in the office at right time.

To provide all the facilities and services to the customers which are

given by Maruti Company to their customer.

To complete the target of selling cars of dealer.

True Value

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Maruti True Value is India No.1 organised pre-owned car brand. True Value

is venture of indias largest automobiles manufacture Maruti Suzuki India

Ltd.

Unique advantages

Indias largest certified used car dealer network

300 outlets in 178 cities and growing

All car related services under one roof

Professionally trained manpower

Complete peace of mind

Maruti True Value business expands the family of Maruti customers,

providing reassurance to exsting Maruti customers about resale of their cars

and further emphasizes Marutis Commitment towards enhancing customer

satisfaction by continuous association during the vehicle ownership life

cycle.

No one know your Maruti car better than Maruti- based on this premise,

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Maruti chanalises its expertise to ensure that transactions in pre owned cars

are transparend and fair. Through that, the company endeavors to extend the

relationship and emotional connect that it enjoys with the customer.

True Value has transparend and fair evaluation process, which is currently

missing in the largely unorganized market for pre-owned cars. Maruti true

Value processes and systems ensure that the seller gets the right price and is

paid promptly.

Under True Value, the seller has option to be paid in cash, or get a True

Value car in exchange or a brand new Maruti Suzuki car in exchange.True

Value category cars bought by Maruti True Value dealers are taken to state-

of- the-art workshops.

True value category cars are refurbished in state of art workshops using

Maruti Genuine Parts and by skilled technicians. These cars are then sold

through Maruti true Value outlets.

As a mark of confidence, and to provide reassurance to customers, every

Vehicle bought under Maruti True Value is inspected and certified by

Maruti Engineers and the car carries a one- year warranty and three free

Services. Convenient finance options are also offered to buyers of Maruti

True Value cars.

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Marutis True Value for used cars

AFTER launching its fleet management service under the Umbrella brand

Project Vistaar, Maruti Udyog Ltd (MUL) is now rolling out its used- car

business countryide in a phased manner.

The pre-owned cars business is being introduced under the sub-brand

nameMaruti True Value and is aimed at catering to customers who are

both first-time car buyer and those who are looking to upgrade themselves to

a passenger car in a higher segment. MUL is also hoping to retain its

customer by offering a range of cars, resale and financing options all under

one roof.

The launch of new service, for which MUL has tied up with a select set of

dealers, will begin in Maruti True Value outlets in Banalore on Oct 19 and

later, in Delhi from Oct 22 onwards. It will then be extended to the rest of

the country, company sources said.

Under the Maruti True Value service, Maruti cars which are less than four

years old or ones which have done up to 60,000 km and have not changed

two previous ownerships will be accepted for purchase from the customer.

Then, designated engineers from Maruti who will be present at

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the True Value outlets will conduct a standard 120- point check of the

vehicle brought to the outlet. The documents of the seller will also be

checked for any irregularities. MUL has trained its staff at the select dealer

outlets to handle its pre owned cars business.

The engineers at the True value counter are expected to adopt a transparent

and fair evolution process to ensure that the seller gets the right price. The

outlet will also offer finance options to the customers, to enable the second

-hand car seller to purchase a new car of his choice.

Consequently, the seller will have the option to be paid in cash, or get

another True Value car in exchange or even a new Maruti car in exchange.

After this, the purchased used car is readied for refurbishment.

Using Maruti Genuine parts, techniciana at the True Value outlet will

refurbish the car, which will then be offered for sale.

For the buyer of a second hand car, MUL is going a step further in offering

a one- year warranty and three free services along with the refurbished car.

Again ,Finance options are begin offered for the True Value car, which will

be certified by the company after allowing the potential buyer an

opportunity to personally evaluate the car.

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Maruti's True Value on Growth Scale

02 December, 2008

Maruti Suzuki has recorded a growth in its used car business inspite of

slowdown in the car market. The company denies the impact of low-cost

cars like Tata Nano on its True Value and expects a growth by 30%.

Ravi Bhatia, Chief General Sales Manager, Maruti Suzuki stated, The low

priced cars like Nano will not have any impact on used cars business since

there is an altogether different set of buyers vying for this segment. Unlike

the Rs 1 Lakh priced cars, used ones are available for Rs 60,000-Rs 80,000

and usually two-wheeler owners looking for upgrading their status go for

used cars.

According to Bhatia, Maruti holds majority of the shares in the robust used

car market in India. He also states that business with True Value is quite

robust and expects to climb a growth scale.

Recently, Maruti has made a new offering to India with the launch of Maruti

Suzuki A-starin the A2 segment, a car that is targeted towards urban young

consumers.

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http://www.carazoo.com/autonews/1206200801/Maruti-Suzuki-India-is-the-4th-Most-Reputed-Car-Company-in-the-Worldhttp://blog.carazoo.com/2008/11/only-50000-star-cars-in-indian-market.htmlhttp://www.carazoo.com/autonews/1206200801/Maruti-Suzuki-India-is-the-4th-Most-Reputed-Car-Company-in-the-Worldhttp://blog.carazoo.com/2008/11/only-50000-star-cars-in-indian-market.html


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VISSION & MISSION

Our Vision:

The leader in Indian automobiles industry creating customer delight and

shareholders wealth; a pride of India.

Mission

(i) Provide superior products and services to our customers and maintain

market leadership.

(ii) Evolve as an institution that serves the best interest of all

stakeholders.

(iii) Pursue excellence through total quality management.

(iv) Ensures the highest standards of ethics and integrity in all our action.

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PERFORMANCE

In more ways than one, the year 2004-05 was a watershed year for Maruti

Udyog Limited (MUL). The company has consolidated and initiated a new

growth momentum. There have been several developments, of which it is

useful to begin with three.

First, driven by renewed vigor and aggression in the market, Maruti recorded

its highest ever sales of over 4.72 lack vehicles in the domestic & export

markets which resulted in gross sales revenue of Rs.112,840 million a

growth of 25.8 per cent over 2003-04. It is the highest top-line growth in the

last seven years.

Second, this high sales growth, coupled with significant improvements in

operational efficiencies, has translated into much higher returns on investment.

Earnings per share (EPS) more than trebled from Rs.5.14 in 2003-04 to

Rs.18.77 in 2004-05.

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Third, the Government of India divested a majority of its shares through an

initial public offer(IPO) and made way for greater participation from you

the shareholders in the fortunes of Indias leading passenger car manufacturer.

In a nutshell, therefore, 2004-05 marks the beginning of a new journey for

your company, as it restructured itself in the face of stiff competition and

entered a new high growth phase.

The sharp revival in the Indian economy from 4 per cent GDP growth in

2003-04 to 8.2 per cent in 2004-05 has definitely assisted your company

in increasing revenue. This is the highest GDP increase recorded by India

since the advent of economic liberalization, and the country has become one

of the fastest growing

economies of the world .This has considerably increased per capita

disposable income which, coupled with much easier availability of

significantly cheaper consumer finance, has driven automobile sales.

Historically, the fortunes of automobile industries across the globe are

strongly correlated with macro-economic parameters and the performance

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Suzuki Motor Corporation (SMC) has also contributed to the improved

returns on investments. In 2004-05, the company has had record growth in

bottom-line and return on investments. Here are some numbers.

Net profit margin (PAT/total income) increased from 2 per cent in 2003-04

to 5.6 per cent in 2004-05.

Return on average capital employed (ROCE) increased from 9.9 per cent in

2003-04 to 22.3 per cent in 2004-05.

Return on average net worth (RONW) increased from 5.2 per cent in 2003-04

to 16.5 per cent in 2004-05.

Earnings per share (EPS) increased from Rs.5.14 in 2003-04 to Rs.18.77 in

2004-05, while cash EPS increased from Rs.17.79 in

2003-04 to Rs.38.39 in 2004-05.

MUL also witnessed a key structural change during 2004-05. The company

was originally set up as a joint venture between the Government of India

(GOI) and SMC to provide the average Indian with a reliable and affordable

car. Today, 20 years hence, MUL has come a long way from charting the

initial growth of the Indian automobile industry to becoming one of Indias

leading business organizations

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-which has also promoted overall industrial growth through its linkages

with vendors. GOI played a key role in supporting Marutis growth. In 2004-

05, GOI divested a bulk of its shares in the company to the public.

GOI offered 72,243,300 equity shares, which is 25 per cent of the companys

share capital, for sale to the public through the book-building route. Even in

a somewhat bearish stock market, the issue was fully subscribed within three

hours of its opening. In fact, it was over subscribed nearly 10 times at the

floor price. Encouraged by the overwhelming response, GOI exercised the

green-shoe option, and offloaded an additional 10 per cent of the issue size

(equivalent to 7,224,300 equity shares).

Thus, MUL is now a listed company in Indian stock exchanges (Bombay

Stock Exchange & National Stock Exchange) with Suzuki Motor Corporation

having 54.2 per cent share ownership. Today, GOI owns 18.3 per cent of

MULs ordinary shares, while 27.5 per cent is in public hands.

MUL is a company which is constantly reinventing itself in a sector that is on

the move. In the course of the following sections, we shall discuss markets,

operations and financials of Maruti during 2004-05, and analyze the rapid

external and internal transformations in its business. All data pertaining to

markets is based on figures released by Society of Indian Automobile

Manufacturers (SIAM).

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INTRODUCTION

What is Consumer Buying Behavior?

Definition of Buying Behavior,

Buying Behavior is the decision processes and acts of people involved in

buying and using products.

Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate

consumer. A firm needs to analyze buying behavior for:

Buyers' reactions to a firms marketing strategy has a great impact on

the firm's success.

The marketing concept stresses that a firm should create a marketing

mix(MM) that satisfies (gives utility to) customers, therefore need to

analyze the what, where, when and how consumers buy.

Marketers can better predict how consumers will respond to

marketing strategies.

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Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex

decisions). Actual purchasing is only one stage of the process. Not all

decision processes lead to a purchase. All consumer decisions do not always

include all 6 stages, determined by the de2ree of complexity...discussed

next.

The 6 stages are :

1. Problem Recognition (awareness of need)--difference between the

desired state and the actual condition. Deficit in assortment of products.

Can be stimulated by the marketer through product information i.e, see

a commercial for a new pair of shoes, stimulates your recognition that you

need a new pair of shoes.

2.Information search-

Internal search, memory.

External search if you need more information. Friends and relatives

(word of mouth). Marketer dominated sources; comparison shopping;

public sources etc.

A successful information search leaves a buyer with possible alternatives.

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3. Evaluation of Alternatives you need to establish criteria for

evaluation features the buyer wants or does not want. Rank/weight

alternatives or resume search. May decide that you want to eat something

spicy. If not satisfied with your choices then return to the search phase.

Can you think of another alternative? Look in the yellow pages etc.

Information from different sources may be treated differently. Marketers

try to influence by "framing" alternatives.

4. Purchase decision-Choose buying alternative, includes product,

package, store, method of purchase etc. Purchase May differs from

decision, time lapse between 4 & 5, product availability.

5.Post-PurchaseEvaluation--OutcomeSatisfaction or Dissatisfaction.

Cognitive Dissonance,have you made the right decision. This can be

reduced by warranties, after sales communication etc.

Types of Consumer Buying Behavior

Types of consumer buying behavior are determined by:

Level of Involvement in purchase decision. Importance and intensity

of interest in a product in a particular situation.

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Buyer's level of involvement determines why he/she is motivated to

seek information about a certain products and brands but virtually

ignores others.

High involvement purchases--Honda Motorbike, high priced goods,

products visible to others, and the higher the risk the higher the involvement.

Types of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behavior are:

Routine Response Programmed Behavior -- buying low involvement

frequently purchased low cost items; need very little search and

decision effort; purchased almost automatically. Examples include

soft drinks, snack foods, milk etc.

Limited Decision Making buying product occasionally. When you

need to obtain information about unfamiliar brand in a familiar

product category, perhaps. Requires a moderate amount of time for

information gathering. Examples include Clothes know product class

but not the brand.

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MODEL OF BUYING BEHAVIOR

Marketing

Stimuli

ProductPrice

Place

Promotion

Other Stimuli

Economy

Political

CulturalTechnological

Buyers

Characteristic

Cultural

Social

PersonalPsychological

Buyers decision

process

Problems recognition

Information search

Evaluation ofalternatives

Purchase decision

Post purchase decision

Rural development (rdse)[3 rdse under 1 sales

executive]

Product choiceBrand choice

Dealer choice

Purchase timingsPurchase amount

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STAGES OF CONSUMER BUYING PROCESS

CONSUMER BUYING BEHAVIOR

Problem

recognition

Information

search

Evaluation of

alternatives Purchas

decision

Post pu

behavio

High involvement Low involvement

Complex buyingbehaviour

Variety-seekingbuying behaviour

Dissonance-reducingbuying behaviour

Habitual buyingbehaviour

Significantdifferences between

brands

Few differencesbetween brands

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PRODUCTS & SERVICES

MARUTI 800

ECONOMY

Great technology enables the Maruti 800 to deliver great fuel efficiency. The

Maruti 800 has topped every fuel efficiency survey that has been conducted

in the past. The Maruti 800 has the lowest fuel cost per kilometer of any

petrol car in the country with a cost of Rs1.94 per kilometer.This confirms

the position of the Maruti 800 as the most fuel efficient petrol car in the

country and Maruti also launched their LPG model which is more economic

than others.

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MARUTI OMNI

FOR THE FAMILY

This car position itself in the mind of consumer as a family car. The punch

line of the car is total solution of the entire family

Features are:

MPFI Engine

The multi-point fuel injected engine helps to lower emissions and achieve

greater fuel efficiency.

With 37 bhp @ 5000 rpm, you have greater pulling power. A torque of 6.32

kgm @ 3000 rpm ensures better climbing power and lesser gear changes. In

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other words, less fatigue.

The MPFI engine also meets all the stringent Euro II emission norms

SPACE

Stretch out. Open up. Enjoy the luxury of space inside the Omni. The ample

headroom and legroom make long rides comfortable and enjoyable.

Reclining front seats with adjustable head restraints let you relax

completely. With its ample luggage space, the Omni is equipped for

anything. Pack in your family, your group of friends, your luggage, your

golfing gear, your picnic hamperall can fit in snugly.

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MARUTI ALTO

Features are:

MPFI ENGINE

Plenty of power, great mileage and low emission make the Alto the perfect

choice for Indian roads. The fuel efficiency of the Alto is better than any

other vehicles in its class.

The 16x4 hypertech MPFI engine delivers unadulterated power, begging for

fun. The 4-valves per cylinder MPFI engine mated with a 5-speed gearshift

and a 16-bit on-board computer allows the Alto to effectively combine

power with optimal fuel efficiency

RELIABILITY

Here's another first by ALTO, which has been setting records since its

introduction in India!

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Alto becomes the first Indian car to undergo a 24 hours endurance test and

sets 13 national records in the process.

Wagon R

COMFORT

The smarter race knows exactly how to take the stress out of driving and

push driving comfort to the max. Full flat folding front seats and reclining

rear seats allow you to stretch yourself during long drives. This ensures that

you travel in maximum comfort as compared to cramped seating

arrangements in other cars.

The McPherson strut suspension in the front and coil springs at the rear

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ensures a smooth comfortable drive. It's not just comfort; Wagon R also has

a 1061cc MPFI low friction engine

SPACE

Nothing cramps the style of the smarter race. Thats why it prefers the

Wagon R. Tall body, high seats and wide opening doors make it easy to

get in and get out. Seven cm taller than the Santro, the Wagon R offers

more headroom, amazing spaciousness and a commanding driving

position. The split rear seating arrangement along with fully reclining

front and the reclining rear seats gives a first classairline seating

comfort.

The Wagon R comes with an extra large boot space, which is possible

because of its unique design that maximizes space on a compact

platform. Caution, safety and protection are integral to a smarter mindset.

And the Wagon R is designed to satisfy every concern. Just check out the

battery of safety features:

Dual side-impact beams in the front and rear doors protect you from

lateral collisions.

A long crumple zone shields you in the unlikely event of a frontal

collision.

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A Roll Control device in the front suspension imparts greater stability

and helps the Wagon R to negotiate sharp curves at high speeds. The 8

inch booster-assisted brakes equip you well to handle any emergency

High seating position gives you a bigger field of view, allowing you to

better anticipate traffic problems before they occur.

MARUTI VERSA

ONE GREAT DRIVE. TWICE THE SAFETY

The Versa is one of the safest cars on the road. It has safety features to

guard your loved ones from road disasters. Side impact absorbing beams

in all 4 doors protect the passengers from side crashes. Front impact

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beams between the front pillars and the collapsible steering column

shield you from head on collisions.

A steel pipe frame in the rear seat safeguards your family from rear

impacts.ELR seat belts allow free movement, but hold you securely

during sudden stoppages. Height adjustable head restraints, brake

boosters and a collapsible steering column further ensure your safety.

When you step out of the house and into your Versa, rest assured

Sink in. Stretch out. Lie back. Indulge

Versa's the ideal car for long journeys. Now stretch your legs on those

long rides. All seats* have recliners. In SDX, the 2nd row bucket seats

can be slid forward or backward independently to suit the convenience of

the passengers.

The high seat position makes it easy to get in and out and gives superior

road visibility. The front row seats have thick insulation between seat

and the engine. Two layers of PUF and aluminium sheets act as a buffer,

protecting the driver from engine heat. The rear seat also has a steel pipe

frame for protection in the event of a rear impact.

* Except for the folding seat in 2nd row (DX, DX2) and last row seats.

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MARUTI GYPSY

Gypsy Advantage

HILLS

Higher ground clearance of 210 mm to ensure better off-road

handling.

Diaphragm Spring Clutch designed to with stand higher rotational

speeds requiring less release load ,thereby reducing the wear of parts

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DIRT TRACKS

Steering Damper ensures that shocks encountered from bumps and

potholes are not passed on to the steering wheel. Thus, any loss of

control owing to unexpected obstacles is avoided.

The Gypsy is a lighter vehicle weighing in at 1020 kg (hard top) and

985 kg (soft top). This is a major advantage on sandy or muddy tracts

a heavier vehicle will get stuck but the Gypsy keeps

SWIFT

The time has come for a new kind of compact car, one that's based on a

fresh approach to design and development, delivers the kind of driver and

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passenger experience that places it in a class of its own and has true

worldwide appeal.

The time has come for the Maruti Suzuki Swift. The Swift is more eye-

catching, more spacious, more refined, more user-friendly, and a whole lot

more enjoyable to drive than anything else in the compact-car category.

SWIFT DZIRE

Maruti Swift DZire

The new Swift DZire joined the Swift and SX4 in Suzuki's Indian lineup and

is intended to "redefine the market and stir excitement in the entry level

sedan segment". It's a good news for the consumers because Swift DZire,

which comes both in diesel and petrol engines, offers luxury feature options

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including integrated stereo, steering mounted audio controls, automatic

climate control and power windows as well. Not only this but, it is also

equipped with latests safety features like Dual Airbags, ABS with EDB,

collapsible steering column and an i-CATS anti-theft facility. It's true to say

that many of these features are being offered for the first time in this

segment in contemporary car market in India.

Variants Petrol Diesel

LXI LDI

VXI VDI

ZXI ZDI

RANGE OF COLOURS

There is a wide range of colors for the customers. The newly Swift DZire is

offered in seven colours:

Arctic WhiteSilky Silver

Clear Beige

Midnight Black

Bright Red

Azure Gray

Sovereign Blue

Features

Launched as a replacement of the earlier mid size sedan Maruti Esteem, the

Swift DZire is sophisticated in look and features. There is a long list of

features of Swift DZire which includes:

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INTERIORS

Steering Mounted Audio Controls:

Swift DZire is equipped with a classy dashboard integrated audio system

with remote control along with powerful speaker.

Automatic Climate Control (ACC):

Whenever you need to choose you temperature, just choose the temperature

you desire and the on-board computers is there to auto-adjust to the weather

outside, maintaining precise cabin temperature.

EXTERIORS

Makes Heads Turn with its desirable exteriors:

There is a chiseled shoulder line to complement muscular flared wheel

arches and sills.Rich chrome styling for an imposing grille and an impressive rear is also

there now.

Stylish wraparound tail lamps fitted.

Powerful clear lens headlamps for superior night visibility is and additional

benefit for you.

Headlight leveling allows you perfect light beam adjustment while driving.

A high mounted stop lamp and a rear bumper-integrated fog lamp give clear

signals to following traffic, thus avoiding accidents.

Comfort & Convenience

Indulge your desire of complete comfort:

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All around power windows for improved convenience to the drivers is there

now.

Sounds absorbing materials and vibration dampers for a smooth and

pleasurable drive.

Now, there is height adjustable drivers seat for personalized driving

position.

A tilt adjustable steering column lets you to set it just right for your height,

so you enjoy a comfortable drive and enjoy the ride even for long distance.

Improved comfort in the back row for those who don't drive but enjoy the

ride.

Variants

MARUTI SX4

Maruti Suzuki SX4

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Maruti Suzuki India Ltd.. is out with it's cutting edge new model, Maruti

Suzuki SX4, a joint venture made by two of automobile czars, Suzuki and

Maruti. The model closely follows the Swift platform, therefore, it is easily

available with exclusive features which makes it all the more desirable

among car connoisseurs. A mini SUV (sport utility vehicles) style, SX4 is

almost like a car in it's construction & comfort context.

The model is found in two- and four- wheel drive. With two variants, the

model is all set to conquer the Indian auto biz market. These are commonly

referred as the "Urban Line" & the "Outdoor Line", where the latter is more

like an SUV in appearance compared to the first one. The car is expected to

have 1590cc petrol engine making it capable enough to deliver a power of

94bhp and a torque of 13.4kgm.

OTHER FEATURES

Maruti Suzuki SX4 is assorted with elegant features which makes the modelworth possessing. These are :

ABS

EBD

Dual SRS airbags

Front and rear side doors having impact beams

Seat belt pre-tensioners

Force limiters

Car immobilizer

Anti theft device

Switchable three-mode 4x4 system for :

2WD

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4WD Auto mode

4WD Lock mode

Colors

Colors for Maruti Suzuki SX4 are quite unique & contemporary in nature

GRAND VITARA

Grand vitara is anew segment entered by maruti. Initially they are just in

traditional cars business Grand vitara is a SUV (sports utility vehicle) with a

powerful engine of 2600 cc. It is fitted with a MPFI diesel engine. It delivers

4x4 drive.

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Price charged for grand vitara is between 13.5 lakh to 16 lakh. It is of

premium segment.

MARUTI RITZ

Maruti Ritz ReviewMaruti Ritz is the perhaps the most awaited and hyped car from Maruti

Suzuki. The car is positioned in the premium A2 market segment, which

includes its compact offering such as Alto, WagnoR, Swift, Zen and the

newly-launched A-Star. Hundai has already launched their i10 model in the

Indian market. Now, its the turn of market leaders maruti Suzuki to

respond with a brand new vehicle for the Indian market. Engineers from

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Maruti Suzuki worked at close quarters with their Japanese counterparts in

the development of the Ritz, much like that for the A-Star.MUL seems to be

going the complete distance to insure that the Ritz manages to make an

impact on the cut-throat A-2 hatchback space. How far the new Ritz

manages to complete with its counterparts is yet to be seen in the time to

come.

Ritz launched in the Indian markets on 15th May,2009, the Ritz Maruti is one

of the first BS-IV complaint cars of India. Priced at Rs 4 Lakh to Rs.5 Lakh,

the Ritz Maruti has a sporty new look with cool spacy interiors. It's true to

say segment in contemporary car market in India.that many of these features

are being offered for the first time in this segment in contemporary car

market in India.

Mruti Ritz LXi

Mruti Ritz VXi

Mruti Ritz VXi ABS

Mruti Ritz ZXi

Mruti Ritz VDi

Mruti Ritz LDi

Mruti Ritz VDi ABS

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Features

Alloy wheels

Engine immobilizer(iCATS)

Steering-mounted audio controls

Front seat under tray

60:40 rear split seats

Driver seat / Steering wheel / Seatbelt height adjustor

MARKETS

DOMESTIC

Maruti primarily operates in the passenger vehicles market with an

emphasis on passenger cars. During 2004-05, the Indian passenger vehicles

market finally attained critical mass with sales volume of 900,752 units

a 27.4 per cent increase from 707,198 units sold in 2003-04.

The passenger vehicle market is divided broadly into the following three

categories:

1. Passenger cars

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2. Multi-purpose vehicles (MPVs) and 3. Utility vehicles (UVs)

Within these categories, MULs presence in order of prominence and in

volume term is in passenger cars, MPVs or the C segment and UVs or the B

segment. Chart B gives the relative share of each segment in Marutis

passenger vehicles sales, where passenger car sales have been broken up

according to the SIAM based classification (A1-A6).

PASSENGERS CAR

In volume terms, passenger car sales accounted for over 77 per cent of the

Indian passenger vehicles market and grew by 28.6 per cent from 541,491

units in 2003-04 to 696,207 units in 2004-05. Maruti continues to be the

market leader. During 2004-05, not only did Maruti grow due to the overall

market growth, but also managed to overcome intense competition and gain

market share which increased from 50.8 per cent in 2003-04 to 51.4 per

cent in 2004-05.

The Indian car market is classified into six categories based on the

vehicle length

1: Mini up to 3,400mm.

A2: Compac from 3,401 mm to 4, 000 mm.

A3: Mid-size from 4,001 mm to 4,500 mm.

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A4: Executive 4,501 mm to 4,700 mm.

A5: Premium from 4,701 to 5,000 mm.

A6: Luxury 5,001 mm and above. MUL has presence in three of these cate-

gories namely A1, A2 and A3. Chart C plots MULs sales volumes in these three

categories for 2004-05 and 2003-04.

A1 CATEGORY: With its Maruti 800, your company is the only player in

this category. Sales volumes increased by 16.9 per cent during 2004-05.

Growth in this economy segment comes mainly from first-time buyers,

and consumers buying their second car. Penetrating this market requires

greater reach in distribution, and MUL is undertaking many efforts in this

direction.

A2 CATEGORY: Maruti has three models in this category Zen, Alto

and Wagon R. This is the segment where the company faced stiff competition

in the last few years, and had lost some ground due to delays in launching

new models. Things have fundamentally changed in 2004-05. Through a

well-crafted strategy, Maruti consolidated its leadership position in the A2

category. While the category grew by 23.4 per cent in 2004-05, MULs sales

volume grew by 46 per cent. Consequently, the companys market share has

increased from 40.3 per cent in 2003-04 to 47.7 per cent in 2004-05.

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We believe that given Indias income distribution and low levels of car

penetration, the A1 and A2 segments will continue to register strong growth

as the population increases its levels of motorization. Today, India is the

second largest two-wheeler market in world with sales of around 5 million

two wheelers during 2004-05. The existing stock of two wheelers on Indias

roads is over 50 million. With cheaper credit facilities, many users of two-

wheelers, especially in the higher end segment, should shift to cars in the A1

category. MUL is the dominant company in India, which has the models to

tap this huge growth opportunity. To penetrate deeper into the Indian market,

MUL has tied up with the State Bank of India (SBI) to finance cars. SBI has

the widest branch network in India, and we expect to reach parts of the rural

markets hitherto uncovered by retail finance availability.

Apart from strengthening the distribution network, key initiatives that

drove this growth during 2004-05 include:

Strengthening the brand image of the three models through

advertisements and sales promotional initiatives.

Repositioning Alto in a niche space between A1 and A2 cars. Aggressive

pricing of the Alto was supplemented by a strong ad campaign that targeted

the younger generation. These factors played a role in boosting the

volume of Alto sales by over 125 per cent.

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New variant of the Zen was launched in the latter half of 2003,

which rejuvenated the brand in the market. There were also

significant changes in the Wagon R, which contributed to a

volume growth of59per cent.

A3 CATEGORY: This is a highly fragmented category with several

models, and no single player has major leadership position. MULs two

models Swift Desire& SX4 have a combined market share of a little

over 10 per cent. Maruti lost some market share as its volume sales grew by

around 30 per cent, against the overall categorys growth of 50.8 per cent. In

the last quarter of 2004-05, to increase market penetration, MUL revised the

prices of SX4 downwards and launched a new version the SX4Lxi. We

have already started witnessing results from this initiative.

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The growth in sales volumes is a consequence of Marutis continuous

stress on customer focus. Regular interface and feedback from customers

is integral to the companys planning process. A tribute to its efforts at

improving customer satisfaction is the top ranking given to the Wagon R

in the premium compact segment, and Esteem in the entry midsize

segment, by JD Powers survey on IQS. Table 1 gives a snapshot of five

top reasons why people buy Maruti cars as per the JD Power survey.

It is important to note that the rating, which was between 10 and 20 per cent

in 2000, has increased to above 50 per cent in 2003. Another interesting

point is that while Marutis

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UTILITY VEHICLES (UVS)

Diesel vehicles dominate this segment with a share of around 95 per

cent. This is mainly because vehicles in this segment are by nature

heavy and diesel has a policy determined price advantage over petrol.

Since Maruti does not have a diesel vehicle today, it remains a small

player in the MUV economy factor was the most important reason for

purchase in 2000, the companys reputation has become the leading factor

determining the customers purchase decision in 2003. Thus, Maruti has

managed to build a strong brand image in the last four years. MULs

technological capabilities are getting greater recognition as in 2003:

good technology became one of the five leading reasons cited by

customers for buying a Maruti car.

Dealership and Service Network

This high level of customer satisfaction and award of number 1 position in

customer satisfaction by world renowned J D Power survey for four times in

a row can be translated into sales only through a strong dealer network,

which actively reaches out to potential customers. The company has

extended its dealership network to 280 sales outlets, spread over 182 cities,

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cities. The confidence of the dealer community in Maruti is spelled out by

the fact that 28 existing dealers made large investments and opened new

showrooms. On the same lines, 59 new workshops were opened by 51

existing dealers.

The automobile industry has two levels of customers the dealer and the

buyer. It is imperative to have a robust dealer network to push sales to the

final customer. Therefore, MUL treats its dealers as its first level of

customers. In the last three years, Maruti has worked hard to revitalize and

strengthen its dealership network.

Apart from having a good product, the key factor in developing a good

dealer network is to assure profits for the dealers. Maruti believes that

selling a car is only the beginning of a long-term relationship with the car

buyer. During the course of a cars life, there are many services and products

which can be offered to the customer like finance, accessories, insurance,

service, spare parts and finally trade-in resale opportunities.

MUL offers its customers a suite of products through its authorized dealers,

which meets all the requirements during the life cycle of a car. This not

only meets a much larger basket of customer needs but also provides dealers

with the opportunity to generate greater profits. Other services that have

been launched under new business initiatives of Maruti include Maruti

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EXPORTS

2004-05 was also a landmark year for Maruti in terms of exports. The FOB

value of exports grew by 51.7 per cent from Rs.6,204 million in 200203 to

Rs.9,410 million in 2004-05 which is the highest ever in Marutis 17

years export history. It is also the first year in which the company exported

over 50,000 vehicles. It exported 51,175 units. Marutis export growth has

been driven primarily by 56.8 per cent increase in exports of Maruti 800, and

60.5 per cent growth in exports of A2 category cars. Within the A2 category the

YG4 (Alto) was a huge success in the European market, where 34,399 Suzuki

Altos were sold during 2004-05. The M-800 and the Zen were very well

accepted in Algeria. We also achieved substantial growth in our exports to

Algeria, Belgium, Bhutan, Chile, Denmark, Germany, Hungary, Nepal, Sri

Lanka and UK. Maruti entered the Gulf market (Saudi Arabia, Kuwait and

Qatar) for the first time with the new Alto GCC specifications, specially

designed for this region.

O P E R AT I O N S

Your company remains steadfast in its quest for achieving higher operational

efficiencies. This includes efforts at reducing costs, increasing productivity

and maintaining delivery schedules.

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An example of Marutis strength in operations is its capability to roll out

two vehicles every minute from its shop floor. It is on the foundation of such

strong operations that MUL offers its customers a suite of 10 models in over

50 variants.

In times of unfavorable market conditions, our operational efficiencies have

helped us remain competitive. Today, as markets have turned upbeat, we

have leveraged this strength to seize opportunities and ensure that profits

outpace top-line growth.

PRODUCTION

Spread over 297 acres, Maruti has three fully integrated production facilities

with a combined capability of 500,000 units per annum. Chart D shows the

category-wise production of vehicles in 2003-04 and 2004-05. Production

increased across all categories of passenger cars the A1 category grew by

20.4 per cent, A2 grew by 47.7 per cent and A3 grew by 33.8 per cent. Total

vehicle production increased by 31.4 per cent from 359,960 units in 2003-

04 to 472,908 units in 2004-05.

Two years ago, in the backdrop of fierce competition, your company had

initiated a program called Challenge 50 go fast, high quality across its

production facilities.

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The principal philosophy behind this program is to raise our productivity

levels by 50 per cent in three years through Kaizen and continuous

performance benchmarking. 2004-05 is the last year of this program. As

shown in Chart E, this program has already yielded impressive operational

gains for the company. A critical parameter that measures efficiency of

production systems in the automobile industry is man-hours spent in

producing one vehicle. This has improved by around 54 per cent in the last

three years. In addition, there has been a considerable reduction in inventory

holding period, which dropped from 30 days in 2003-04 to 19 days in 2004-

05.

SUPPLIER MANAGEMENT

In an industry like automobiles, where large part of its components are

outsourced, vendor management becomes a critical operation. This has

always been a key focus area for your company. When MUL started its

operations in India, auto-component suppliers were almost non-existent.

Thus, one of the immediate goals was to develop and establish a competent

vendor base. This involved providing capital, transplanting technology, and

developing production processes for suppliers.

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Today, this situation has changed. The Indian auto-component industry is

increasingly finding global recognition for its production capabilities and

low costs. This has considerably eased pressure on the vendor development

front. Nevertheless, given the severe competitive pressures over the last few

years, vendor management has become critical to the business. Some of the

operational issues in this regard are discussed below.

220 at the end of 2004-05. This has helped us enhance supply chain efficiencies

by lowering the time and costs involved in dealing with more vendors. It has also

provided our vendors with the requisite volumes to realise economies of scale.

Going forward, we plan to have technically and financially capable set of vendors,

whose standards match up to those of Maruti.

improving quality and productivity of the vendors is a priority area for Maruti.

While the average standards have improved significantly over the years, there

is still high variability. Hence, improvement in this area is of considerable

importance to MUL.

our company has been encouraging vendors to develop their own technology and

R&D capability. In the long run, Maruti expects its vendors to initiate and

develop specialised components on their own, while it focuses energies on its

core competency of making better cars.

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R&D AND TECHNOLOGY

R&D activities of Maruti have the twin objectives of reducing product

costs by developing capabilities of local vendors and becoming a regional

R&D hub for all Suzuki operations. The company has adopted a focused

model cost reduction technique.

Maruti has been continuously engaging in Value Analysis/Value

Engineering (VA/VE) activities across its operations. This initiative has

gathered greater momentum this year with the introduction of Junkai (or

Focus) visits by our engineers to our vendors production facilities. Junkai

visits facilitate development of fresh VA/VE ideas for cost reduction and

also reduce the cycle time for idea evaluation.

In addition, Maruti has started conducting cost workshops with vendors

supplying high cost parts. In these workshops, current cost structures of

vendors are analyzed in detail and specific cost reduction targets suggested.

To help vendors achieve these targets, a team of engineers from Maruti and

Suzuki visit their production facilities and develop an action plan to meet

these targets. The assistance of vendors collaborators, wherever applicable,

is taken to accelerate implementation.

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The action plan often includes VA ideas, localization of inner parts, and

reduction in cost of bought-out parts, yield improvement and process cost

reductions. In the year under review, 33 such visits were made.

In its early days, the Maruti R&D centre was primarily involved in providing

technical assistance to local component manufacturers. Over the years, this

centre has developed capabilities for face lifts and body changes of current

models. These include styling, clay modeling, computer aided design,

prototype making and its evaluation, and stamps / dies designing. All

modifications done on the new Zen model introduced by the company in

200304 were carried out in-house by the R&D team. The dies for the new

body panels were developed in- house die-shop for the first time. All the

changes required in the existing production facilities were also developed in

house, resulting in significant reduction in the investment required for these

modifications.

QUALITY

Maruti has raised the bar for quality checks by adopting the Global Customer

Audit (GCA) mechanism. The GCA methodology places a great deal of

emphasis on delivering products which meet the quality requirements of

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This includes examining the vehicle in static condition and then in

dynamic condition by test driving it under varied road conditions to check

all functional parts. The total cycle time for GCA is 95 minutes per vehicle.

Based on the GCA feedback, requisite remedial measures are undertaken to

ensure that defects are not carried in vehicles which are under production.

In the year under review, MUL introduced the concept of Quality Gates

across its manufacturing processes. These Quality Gates have been

positioned at 110 key locations throughout the manufacturing process, and

provide real-time feedback for continuous process improvement by

following the concept of plan-do-check-act.

MULs press shop and related functions received the TS 16949 quality

certification in 2004-05. While we are proud of this achievement, we

believe it is imperative that these high quality standards be shared by our

vendors too. To this end, MUL is actively involved in assisting its suppliers

to improve their quality practices to TS 16949.

We are pleased to report that our initiatives on the quality front have

yielded gains:

MUL was ranked No. 1 in the prestigious JD Power Customer Satisfaction

Survey, 2003. This No.1 rank is for fourth time in a row which is a

world record for any automobile leader in a country.

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In 2003, Maruti models topped Initial Quality Study conducted in India

by JD Power Asia Pacific. In the highly competitive A2 segment, Wagon R

was rated best in overall quality rating, followed by the Zen; while in A3

segment, Esteem achieved top ranking in 2003.

In 2004-05, NFO, an international survey agency, ranked Maruti WagonR as

no.1 in the Total Customer Satisfaction for Premium Compact segment.

HUMAN RESOURCES

Marutis most valuable asset has always been, and will continue to be, its

people.

The successes and accomplishments of the company over the years have been

entirely due to the motivation, dedication and commitment of its

employees.

It has been a constant endeavor of the management to share with its

workforce the opportunities and challenges faced in its business

operations.

This initiative was given a major thrust with organizing a training program

for the union working committee members so that the message reached the

workmen. Through this training program, management shared its perception

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competitive pressures faced by the company. Subsequently, a one-day

training program, Sankalp, was launched to cover 100% of our workmen on

the global business trends and the ever-increasing competition. The

objective was to highlight the need for a change in mindset and approach to

business. The Sankalp series will continue through the year to cover the

entire workmen population.

Encompasses a flexible perquisite basket based compensation package.

Going forward, we believe that this agreement would provide us the

confidence and strength to keep our costs competitive and bring in greater

operational resilience.

Developing human resource capabilities across all levels and functional

areas is integral to the companys human resource philosophy. As a part of

this, Maruti Udyog sends its workers, supervisors and engineers to Suzuki

factories in Japan for on-the-job training programs. Varying from one month

to two years, these programs are not only aimed at enhancing technical skills

but also inculcating the Japanese way of working and facilitating cross-

cultural exchange. Management training programs focusing on leadership

and change management were organized by the Company for all

departmental heads.

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Apart from this the Company also has a well-structured, one yearlong

training-cum-orientation program for new campus recruits.

In light of mounting competitive pressures, a priority area for Maruti is to

rationalize and redesign its manpower needs to transform itself into a lean

and competitive organization. To this end, Maruti offered a Voluntary

Retirement Scheme (VRS) to its employees in the year under review. This

offer was accepted by 1,251 employees, and followed an earlier VRS offer

made in 2001-02, which was accepted by 1,050 employees.

As on 31 March 2004, Maruti Udyog has 3,334 employees. Industrial

relations remained cordial throughout the year and not a single days work

was lost due to strikes or disputes. During 2004-05, a five year wage

settlement agreement was signed by MUL with its workers union. Apart

from bringing in the concept of cost to company in the remuneration

scheme for workers, this agreement.

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INFORMATION TECHNOLOGY

Since its inception 20 years ago, Maruti Udyog has made concerted efforts to

leverage innovative and cutting-edge Information Technology (IT) tools to

enhance operational efficiencies. The IT initiative of the company started in

1983 with the implementation of a booking system for its vehicles. With

growing business complexities, IT tools have now found use across all areas

of operation including marketing and sales, finance, plant and production

management, raw material and spare parts management.

As mentioned earlier Maruti has the widest network of dealer comprises

dealership showrooms, workshops and authorized service stations spread

across the country. Currently transactions with these dealers are through a

centralized extranet, which allows dealers to log in and transact business in

an online mode. While this system has proved to be effective, to further

enhance operational efficiencies, the company is in the process of launching a

first-of-its-kind Dealer Management System (DMS).

This system implemented in Application Service Providing (ASP) mode

will provide real-time information on all transactions between dealers and

the company. It would bring in downstream-visibility into the distribution

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Going forward, MUL intends to increase procurement through e-sourcing, and

is in the process of deploying a software solution which is integrated with

MULs internal applications.

Knowledge management is another area of focus for MUL. To this end, an

intranet portal using Microsoft Share point software one of the first six free

sites of this product developed by Microsoft before its launch worldwide

has been established, and is finding increasing popularity among employees

across all levels and functional areas .

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OBJECTIVES OF THE PROJECT

The objectives are.

1. To find the mode of purchase by the customers.

2. To find the brand status, brand loyalty in the mind of customer for

Maruti.

3. To find the various sources of information about cars from primary

data through customers.

4. To find and analyses the various parameters of buying decision of

customers.

5. To find the Strength, Weakness, Opportunity, Threats of the

company.

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RESEARCH METHODOLOGY

Marketing Research is the backbone of marketing. The objective of my

research is to Determine Customer Profiling & Purchase Parameters.

The nature of my research is exploratory research. Its goals to shed light on

the real nature of the problem and to suggest possible selection and its

involves number of steps.

I. Define the Problem & Research Objective:

Management must define a problem in broader way. Because it is said

that defining the problem is half solved and the objective of my

research is to study the consumer perception about MARUTI CARS

over in Indian consumer durable industry.

II. Develop the Research Plan

The second stage of marketing research calls for developing the most

efficient plan for gathering the needed information.

Designing the research plan calls for decision on the data sources,

Research Approaches, Research Instrumental, Sampling Plans &

Contact Methods.

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(a) Data Sources

I have collected my research data from secondary as well as

primary sources from random sampling survey.

Primary Data

Mostly in marketing research involves some primary data

collection by the questionnaire

Sample Size : 100

Sample Area : Gorakhpur

Secondary Data

Magazines, Catalogue, Newspapers, Product Profile & Internet.

(b) Research approaches

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Primary data can be collected into five ways observations, focus

groups, survey, behavioral data & experiments and here I have

used survey research.

TARGET MARKET

The target market of our study was mainly concentrated to the recent car

buyer's and the survey was conducted at the point of purchase.

METHODOLOGY

The tool used for this research is questionnaire, administered and filled by

interviewees. The questionnaire was typed and presented to respondents in

an arranged manner. In this process the personal interview came very handy

in explaining the respondents the exact list of questions or if they face any

problem while answering the questionnaire or in clarifying any confusion

they had. Personal interviews provided flexibility in the sense that the

researcher was able to provide further clarification or explanation whenever

required.

Following facts were kept in mind while preparation the questionnaire:

1. The questionnaire is in an easy language

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2. Maximum questions are of multiple choice questions and there can be

more than one answer for most of them

3. The comments and suggestions were open-ended questions so that the

respondent could elaborate upon his thoughts

4. The size of the questionnaire is not too long. This is to make the job

feasible both for the respondents and researcher

THE RESEARCH

Aim: The aim of the research was to study the factors which a customer

perceives in a car and the sources as well as the knowledge which the

consumer employs in gathering information for the product he is planning to

purchase.

Universe: The universe means the set of objects or population among which

the research is to be conducted. The universes of this task constitute all the

people who have recently purchased their cars.

Sampling design: The sample design adopted was convenient sampling.

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ANALYSIS

Analysis has been divided into 2 parts:

1. A detailed analysis has been done for Maruti cars on the basis

of questioner.

2. A SWOT analysis for the company has been done.

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1. A detailed analysis has been done for Maruti cars on the basis of

questioner.

TO FIND OUT MODE OF PURCHASE.

QUESTIONS:

1.Which car have you purchased?

2. What was the purchase mode?

a) Cash

b) Finance, which company

ICICI SBI

HDFC PNB

M&M FSL ANY OTHER __________

Model wise division of the cars purchased

Cars

purchased

Maruti800 Omni Zen Alto WagonR Versa SX4 Vitara

In % 25 6 16 36 11 2 3 1

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CARS PURCHASED

0

5

10

15

20

25

30

35

40

Carspurchased

Maruti800

Omni

Zen

Alto

WagonR

Versa

SX4

Vitara

INTERPRETATION

The above figure shows that the ALTO model of Maruti commands a good

share in the market, followed by WagonR and hot selling Zen. ALTO&

Maruti 800 is the undisputed leaders of the roads of Gorakhpur.

Alto model has the largest share in the export category, and is marketed in

Europe. Versa's sale has got to pick up because costumers have an unclear

picture in their mind regarding the car being high priced which is actually a

myth.

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The mode of purchase of the vehicle

Mode of

Purchase

Cash ICICI SBI HDFC PNB M&MFSL

In % 16 36 12 19 8 9

MODE OF PURCHASE

0

5

10

15

20

25

30

35

40

Mode of

Purchase

Cash ICICI SBI HDFC PNB M&MFSL

INTERPRETATION

As can be seen in the figure above the availability of easy loan has attracted

the consumers to much so that the out of the cars purchased only 16 % of the

vehicles are paid for in cash. With the mushrooming of finance companies

the rate of interests has been continuously reducing.

The two rivals in car financing are ICICI and SBI bank with ICICI leading

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the race due of more and wider presence.

Easy availability of finance have up surged the demand for higher segment

cars with more and more people who have the capability of paying cash

opting for finance due to hassle free approvals and lowest interest rates

.

TO FIND THE BRAND STATUS IN THE MIND OF

CUSTOMER.

QUESTIONS:

1. Which are the three brand (companies) that come to your mind

when you think of a car?

__________________

__________________

__________________

2. Which two TV car commercials (Ads) can you recall right now?

_______________________________________

_______________________________________

The brand-recalling test showing the brand that has the picture in consumer's

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mind

Brand Recalling Maruti Hyundai Tata Honda Fiat Ford

In % 97 66 40 20 19 12

BRAND RECALLED

0

20

40

60

80

100

120

Brand

Recalling

Maruti Hyundai Tata Honda Fiat Ford

INTERPRETATION

As seen in the figure above somewhere down the line people do recall

Maruti when they are asked to name a brand that comes to their mind at the

first instance. Followed by Maruti is a close competitor Hyundai which

relies on aggressive marketing tools, followed by the good old Tata which

their flagship Indica.

It can be seen that the more the people recall the brand the more likely are

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the chances of good sales turnover

The advertisements that strike

Maruti

Advertisement WagonR Versa Alto Maruti800 service Zen Hyund

In % 3 8 12 11 4 4 58

INTERPRETATION

As said earlier in the above brand recalling analysis Hyundai commands a

higher recalling power when it comes to Media advertisements because of

its high advertisement budget.

Also the hot favorite in Maruti ads is the Bachaan father and son ad with the

ADVERTISEMENT RECALL

0

10

20

30

40

50

60

70

WagonR Versa A lto Maruti800 Maruti service Zen Hyundai

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highest recalling in Maruti brand of cars.

TO FIND VARIOUS SOURCES OFINFORMATION ABOUT CAR.QUESTION:

What were the sources of information when you purchase the car?

Sports channels

Star sports ESPN

Ten sports

Any other ____________________

News channels

Aaj Tak

Zee news

Star News

Any other __________________

Entertainment channels

Star

Zee

Any other ____________________

News papers

Times of India Hindustan Times

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Economic Times Amar Ujala

Bainik Bhaskar Navbharat Times

Any other _____________________

Magazines

Business World Overdrive

India Today Outlook

Auto car India Business Today

Any other _________________________

Entertainment STAR SPORT ESPN TEN SPORTS

IN % 45 24 31

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SPORTS CHANNEL MOSTLY ACSSESED

0

10

20

30

40

50

STAR SPORT ESPN TEN SPORTS

Series1

Entertainment STAR Zee SONY

In % 54 24 15

ENTERTAINMENT CHANNEL MOSTLY WATCHED

0

10

20

30

40

50

60

STAR Zee SONY

INTERPRETATION

98

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52644644 Project Report on Maruti

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