+ All Categories
Home > Documents > Final Project on Consumer Behavior

Final Project on Consumer Behavior

Date post: 11-Nov-2015
Category:
Upload: manishkumarnabhaites
View: 15 times
Download: 0 times
Share this document with a friend
Description:
lol lol lol file missing
Popular Tags:
63
1.1 INTRODUCTION OF INDUSTRY: THE CAR The birth of the car as we know it today occurred over a period of years. It was only in 1885 that the first real car rolled down on to the streets. The earlier attempts, though successful, were steam powered road-vehicles. The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain speeds of up to 6kms/hour. In 1771 he again designed another steam-driven engine which ran so fast that it rammed into a wall, recording the world’s first accident. In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. This was subsequently used by him to develop the world’s first vehicle to run on such an engine, one that used a mixture of hydrogen and oxygen to generate energy. This spawned the birth of a number of designs based on the internal combustion engine in the early nineteenth century with little or no degree of commercial success. In 1860 thereafter, Jean Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he again built an experimental vehicle driven by his gas-engine, which ranat a speed of 3kms/hour. These cars became popular and by 1865 could be frequently espied on the roads. The next major leap forward occurred in 1885 when the four stroke engine was devised. Gottileb Damlier and Nicolas Otto worked together on the mission till they fell apart. Daimler created his own engines which he used both for cars and for the first four wheel horseless carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of creating his own advanced tri-cycle
Transcript

1.1INTRODUCTION OF INDUSTRY: THE CARThe birth of the car as we know it today occurred over a period of years. It was only in 1885 that the first real car rolled down on to the streets. The earlier attempts, though successful, were steam powered road-vehicles.The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain speeds of up to 6kms/hour. In 1771 he again designed another steam-driven engine which ran so fast that it rammed into a wall, recording the worlds first accident.In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. This was subsequently used by him to develop the worlds first vehicle to run on such an engine, one that used a mixture of hydrogen and oxygen to generate energy.This spawned the birth of a number of designs based on the internal combustion engine in the early nineteenth century with little or no degree of commercial success. In 1860 thereafter, Jean Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he again built an experimental vehicle driven by his gas-engine, which ranat a speed of 3kms/hour. These cars became popular and by 1865 could be frequently espied on the roads.The next major leap forward occurred in 1885 when the four stroke engine was devised. Gottileb Damlier and Nicolas Otto worked together on the mission till they fell apart. Daimler created his own engines which he used both for cars and for the first four wheel horseless carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of creating his own advanced tri-cycle which proved to be the first true car. This car first saw the light of the day in 1886.The season of experiments continued across the seas in the United States where Henry Ford began work on a horseless carriage in 1890. He went several steps forward and in1896, completed his first car, the Quadricycle in 1896. This was an automobile powered by a two cylinder gasoline engine. The Ford Motor Company was launched in 1903 and in1908 he catapulted his vehicle, Model T Ford to the pinnacle of fame. Continuing with his innovations, he produced this model on a moving assembly line, thus introducing the modern mass production techniques of the automobile industry. Then onwards, it has been one big journey...on the roads.

AUTOMOBILE INDUSTRYIndia is the second-biggest market for small cars after Japan. It accounts for 60% of the domestic market.CURRENT SCENARIO: India represents one of the largest two-wheeler markets in the world, with an estimated size of 5.4 million units a year. India is the two-wheeler capital of Asia with an average of 27 two-wheelers per thousand people, compared to China's 8 two-wheelers per thousand people. India became the fastest growing car market in the world in 2004, growth rate of 20%.OVERVIEW:Snippets India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Passenger vehicles sales crossed the mark of 1 million in 2004-05. Automobile industry expert predicts that by 2050 every sixth car in the world will be for Indians. 2/3rd of auto component production is consumed directly by OEMs.

FACTS & FIGURESIt seems that India has finally arrived in the big league of Asian car markets. Steady and impressive annual growth rate, presence of international automakers, relaxation of foreign exchange and equity regulations, reduction of tariffs on imports and few others are the components of its booming auto market. The country has now come to be recognized as a potential emerging auto market. The perception of foreign investors has changed, everybody wanting to be here.For the first time, in the financial year end in 2009, the total sales of passenger vehicles -cars, utility vehicles and multi-utility vehicles - crossed the one-million mark to touch 1.5 million, with exports of 336,000 vehicles. Study says that by 2012 India will take over Japan in sales volumes. And by 2050, Indians will buy every sixth car produced in the world.Apart from serving the domestic market, the auto sector has turned as a sourcing base for the global auto majors. The auto component market is also in its full swing. As per the research of RNCOS, one of the leading industry firms, the Indian automobile component industry is estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012.

AUTOMOTIVE INDUSTRY IN INDIAA well developed transport network indicates a well developed economy. For rapid development a well-developed and well-knit transportation system is essential. As India's transport network is developing at a fast pace, Indian Automobile Industry is growing too. Also, the Automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of Automobile Industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by the Automobile Industry. India Automobile Industry includes the manufacture of trucks, buses, passenger cars, defense vehicles, two-wheelers, etc. The industry can be broadly divided into the Car manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units.Theautomotive industry in Indiais one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is theseventh largest in the world with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12.In 2009, India emerged asAsia's fourth largest exporter ofpassenger cars, behind Japan,South Korea, andThailand. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020.By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on thenation's roads. The major Car manufacturer are Hindustan Motors, Maruti Suzuki India Limited, Fiat India Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd., to name a few. The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle &Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc. The heavy motors like buses, trucks, defense vehicles, auto rickshaws and other multi-utility vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj, Mahindra and Mahindra, etc.

CARS BY PRICE RANGE:

Under Rs. 3 Lakhs Alto, Omni Tata Nano Hyundai Eon, Rs. 3-5 Lakhs

Hyundai Eon,i10, i20, Chevrolet Spark, Beat, Maruti Alto,Ritz,Swift,AltoK-10,stingray,Eeco Ford Figo Toyota Etios Liva Volkswagen Polo Tata Indica EV2, Indica Vista, Venture, Indigo eCS Honda Brio Nissan Micra Hindustan Motors Ambassador Fiat Grande PuntoRs. 5-10 Lakhs Chevrolet Tavera Hyundai i10, i20, Verna Skoda Rapid Ford Fiesta, Fiat Linea Mahindra Bolero, Verito, Thar, Xylo, Scorpio Maruti Suzuki Gypsy, New Swift DZire, Swift Dzire, CIAZ Nissan Sunny Honda Jazz, City Volkswagen Vento Toyota Corolla, Innova, Etios Tata Sumo, Manza, Winger, SafariRs. 10-30 Lakhs Ford Mondeo, Endeavour Fiat 500 Mahindra XUV500 Tata Aria, Fortuner, Toyota Corolla Altis Volkswagen Jetta, Beetle, Passat Chevrolet Cruze, Forester, Captiva Skoda Yeti, Laura, Octavia Classic & Combi, Superb Honda Civic, Accord, CR-V Maruti Suzuki Grand Vitara, Kizashi Hyundai Sonata Transform, Santa Fe, Mitsubishi Outlander, Pajero Nissan X-Trail, Teana BMW 3 Series, X1, Mercedes Benz C Class,Rs. 30-100 Lakhs Audi A6, A8 & TT, Q5, A7, Q7, RS5 Nissan 370Z BMW X5, 5 Series & 7 Series, X3, Z4, X6, 6 Series, M3 Mercedes Benz E Class, S Class, R Class, SLK, ML, SL & CLS-Class, GL Porsche Boxster, Cayenne, 911 Carrera & Cayman S Toyota Land Cruiser Prado Volkswagen Touareg, Phaeton Misubushi Montero, Lancer Evolution, Rs. 1 3 Crore BMW M5, M6 Audi R8 Mercedes Benz- G Class, SLS Porshe Panamera Lamborghini Gallardo, Murcielago Bentley Continental GT/GTC, Flying Spur,Arnage, Mulsanne Rolls Royce Ghost Ferrari California, 458 ItaliaRs. 3 6 Crore Ferrari 599 GTB Fiorano, FF Rolls Royce Phantom, Phantom Coupe, Phantom Drophead Coupe, Bentley Azure Maybach 57 S, 62Above 12 Crore Bugatti VeyronThe segregation is made on Ex-Showroom price of base models. Maruti Suzuki India Limited

TypePublic

Traded asBSE:532500NSE:MARUTIBSE SENSEX Constituent

IndustryAutomotive

Predecessor(s)Maruti Udyog Limited

Founded1981

HeadquartersNew Delhi, India

Key peopleRC Bhargava (Chairman)Kenichi Ayukawa (CEO & MD)

ProductsAutomobiles

Revenue369.34 billion (US$5.9billion) (2012)

Net income16.81 billion (US$270million) (2012)

Employees6,903 (2011)

ParentSuzuki

Websitewww.marutisuzuki.com

Maruti Suzuki India Limited (/maruti suzuki/), commonly referred to as Maruti and formerly known as Maruti .Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. As of November 2012[update], it had a market share of 37% of the Indian passenger car market. Maruti Suzuki manufactures and sells a complete range of cars from the entry level Alto, to the hatchback Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara. The company's headquarters are on Nelson Mandela Road, New Delhi. In February 2012, the company sold its ten millionth vehicle in India.

The first Maruti 800, based on the Suzuki SS80History The old logo of Maruti Suzuki India Limited.

The company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of May 2007[update], the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. An old Maruti 800 model

An old Maruti 800 model from the 1980s, still in use as of 2013 in Goa. The Maruti 800 was popularly referred to as simply "Maruti"

Maruti Alto, introduced in 2000

eir colleagues and launched an online campaign to support their demands. Products and servicesCurrent Automobiles ALTO 800 SX4 RITZ SWIFT

ALTO K10 DZIRE ESTILO WAGONR

OMNI STINGRAY

Imported automobiles

Grand Vitara Kizashi NEW PRODUCT

CIAZ

CELER Discontinued automobiles1. Zen (19932006) Replaced by the Zen Estilo2. Esteem (19942008) Replaced by the Swift DZire3. Baleno (19992007) Replaced by the SX4 sedan4. Baleno Altura (19992003)5. Versa (20012010) Replaced by the Eeco6. Alto (2000-2012) Replaced by the Alto 8007. Zen Estilo (20062013)Maruti Suzuki sold in India as .1. 800 (1983) (still distributed to some cities like Guwahati) Competes with Tata Nano, Maruti Alto and Maruti Omni2. Omni (Launched 1984) Competes with Tata Nano, Tata Venture, Maruti 800 and Maruti Eeco3. Gypsy King (launched 1985) India's first indegenious vehicle and first compact SAV, competes with Mahindra Thar CRDe, Tata Sumo 4x4 and Force Gurkha4. WagonR (Launched 1999) Competes with Nissan Micra Active, Maruti A-star and Hyundai i105. Swift (Launched 2005) Created a Maruti 800 rivalling benchmark, competes with Tata Vista, Hyundai i20, Skoda Fabia, Volkswagen Polo and Toyota Etios Liva6. SX4 (Launched 2007) Soon to be replaced by the upcoming sedan codenamed YL1, competes with Ford Fiesta, Hyundai Verna, Honda City, Skoda Rapid, Volkswagen Vento, Renault Scala and Nissan Sunny7. Swift DZire (Launched 2008) Competes with Mahindra Verito, Toyota Etios, Ford Classic, Mahindra Verito Vibe, Honda Amaze, Chevrolet Sail, Skoda Fabia and Tata Manza8. A-star (Launched 2008) Competes with Chevrolet Beat, Nissan Micra Active, Ford Figo and Maruti Wagon-R Stingray9. Ritz (Launched 2009) Competes with Maruti Swift, Tata Vista, Hyundai Grand i10, Honda Brio, Nissan Micra, Renault Pulse and Toyota Etios Liva10. Eeco (Launched 2010) Stripped down Versa with a lowered roof, in competition with Tata Venture, Tata Winger Platinum, and in-house Omni11. Alto K10 (Launched 2010), competes in the economy class with the Tata Indica, Hindustan Motors Ambassador and Chevrolet Spark12. Maruti Ertiga(Launched 2012), seven seater MPV R3 designed and developed in India, in competition with Toyota Innova, Mahindra Xylo, Nissan Evalia, Ashok Leyland Stile and Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car. 13. Maruti XA Alpha based compact SUV to compete with the Ford EcoSport, Mahindra Xylo Quanto, Nissan Terrano & Renault Duster will be launched in the year 2014Manufacturing facilitiesMaruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a combined production capacity of 14, 50,000 vehicles annually. During a recent meeting of the Gujarat chief minister with Suzuki Motor Corp chairman & CEO Osamu Suzuki,the Chairman had said that the work on car manufacturing plant at Mandal near Ahmedabad would be started soon.[53] Maruti Suzuki to set up second plant in Gujarat; acquires 600 acresGurgaon manufacturing facilityThe Gurgaon manufacturing facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2km2). All three plants have an installed capacity of 350,000 vehicles annually but productivity improvements have enabled it to manufacture 900,000 vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy, and Eeco.Manesar manufacturing facilityThe Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600 acres (2.4km2). Initially it had a production capacity of 100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The Manesar Plant produces the A-star, Swift, Swift DZire, SX4, Ertiga and Ritz.On 25 June June 2012, Haryana State Industries and Infrastructure Development Corporation demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead to further proceedings and vacating the enhanced land acquisition. Sales and service networkAs of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,395 towns and cities throughout India. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India.Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. Maruti InsuranceLaunched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. LimitedThis service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception.

Maruti FinanceTo promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India. Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%.GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the market rates. Maruti TrueValueMaruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 31 March 2010 there are 341 outlets.

AccessoriesMany of the auto component companies other than Maruti Suzuki started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets 00and authorized service stations throughout India.

Maruti Driving School A Maruti Driving School in BangaloreAs part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modelled on international standards, where learners go through classroom and practical sessions. Many international practices like road behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. Issues and problemsOn 20 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to fix a fuel leakage problem, for which the company will replace the gaskets. ExportsMaruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it does not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen to encourage. Every political party expected Maruti Suzuki to earn foreign currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports.Awards and recognitionThe Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the seventh position in 2011 and the sixth position in 2012 among the brands researched in India. Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Studyconducted for the Auto (Cars) Sector which launched in April 2012.The Companys Mission:To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export markets. And To provide maximum value for money to their customers through continuous improvement of products and services. The Companys Vision: Internationally competitive Company in terms of our products and services. The Leader in the India Automobile Industry, Creating customer Delight and Shareholders Wealth; A pride of India

The Companys Core Value: Customer Obsession. Fast, Flexible and First Mover Innovation and Creativity Networking and Partnership Openness and Learning

Their focus is on: Building a continuously improving organization adaptable to quick changes. Providing value and satisfaction to the customer Aligning and fully involving all our employees, suppliers and dealers to face competition Maximizing Shareholder's value Being a responsible corporate citizen. Maruti Suzuki India Limited(NSE:MARUTI,BSE:532500) is a subsidiary company of JapaneseautomakerSuzuki Motor Corporation. It has a market share of 44.9% of the Indian passenger car market as of March 2011. The company is listed on Bombay Stock Exchange and National Stock Exchange.

It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India, and on 17 September 2007,Maruti Udyog Limitedwas renamed asMaruti Suzuki India Limited. The company's headquarters are located inNew Delhi. In February 2012, the company sold its 10th million vehicles in India. Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of SMC, Japan. MSIL has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.2 million (1,200,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013.The company offers a wide range of cars across different segments. It offers 15 brands and over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4.In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One Million cars in a year.Maruti Suzuki has employee strength over 8,500 (as at end March 2011). In 2010-11, the company sold over 1.27 million vehicles including 1,38,266 units of exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indian passenger car market.At Maruti, they have a clear perspective on manpower. They see it as a unique resource, in the sense that optimal productivity of other resources depends largely on the way human resources are utilized. The basic philosophy of management that underlies the Maruti culture is that all employees of the company should be molded into a team which then strives as one, to achieve commonly shared company goals and objectives. To make this philosophy tenable, the Company takes several initiatives. Inputs are sought from employees at all levels. They believe that everyone should contribute to the formulation of company vehicles, goals and objectives. Secondly, at Maruti they encourage leadership in the best sense of the word. According to us, a leader is one who must be impartial, must have the ability to rise above his own subjectivity, and, most importantly, must practice what he preaches.They understand that the process of creating a sense of belonging that all employees can identify with is a lengthy one. To ensure that this translates into concrete reality, they have taken several simple but specific and well thought out measures. The first step in this direction has been the introduction of a common uniform for all employees. Another measure is the creation of a common canteen where all employees have lunch, stand in common queues, and sit on the same table. Common toilets, common transport and similar facilities for all levels of employees are other measures that reinforce their emphasis on genuine equality in the workplace.At Maruti they do not believe in the notion of organizational hierarchies. As a matter of fact, the management structure and systems in Maruti have been designed to promote decentralization of authority. Maruti has a horizontal management structure with only four functional levels of responsibility to facilitate quicker decision making. Another focus area of the Maruti culture is the maintenance of a smoothly functioning communication network. Maruti believes that communication channels between labour and management cannot simply consist of having a labour representative on the Board of the Company. They have faith in the ability of labour to effectively participate in management and make constructive suggestions. To encourage this, they ensure that there is a thorough dissemination of information at all levels, through newsletters or via a letter from the Chief Executive to all employees. Meetings with the Union are held regularly, and programs being contemplated by the Company are discussed with the Union. The Sahyog Samiti, a collection of representatives of non-unionized employees, training program in Japan, Quality Circles, productivity-linked incentive schemes, and an ethos of discipline and teamwork, all contribute to the Maruti culture. Several measures of performance have made amply clear that Maruti has established a truly healthy work culture. They have met all project and performance targets since inception. Their productivity levels are constantly improving. The Company has had good labour relations with employees from the very beginning, and they have been successful in the export market. Yet, the Maruti culture is one that does not believe in resting on its laurels. They adhere to the spirit of Kaizen, which states that constant improvement is always possible. The most basic tenet of productivity that they hold dear is that "Today should be better than Yesterday and Tomorrow should be better than Today". COMPANYS FLASHBACKMaruti Suzuki India Limited (MSIL) was established in Feb. 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MSIL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world).

A license and a Joint Venture agreement were signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives of MSIL 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 necessaryfor economic growth.The company went into production in a record time of 13 months and the first car was rolled out from Maruti Suzuki India Limited Gurgaon in December, 1983.FIRST CUSTOMER:-

Mr. Harpal Singh, Marutis first customer, proudly received the keys of the Maruti 800 car from the Prime Minister Smt. Indira Gandhi on December 14, 1983.When Maruti began operations in 1983, there were only two other car companies in India and the total size of the Indian passenger car market was a measly 40,000 units per year. From the start, Maruti caught the imagination of Indian car customers and launched four new models, including a hatchback, a mini multipurpose van, an entry sedan and a SUV, over the next decade.Each of these models was an instant draw with the Indian consumers. Suzuki Motor Corporation increased its stake on two occasions (26>> 40 >> 50 >> controlling stake and brought it to 50 per cent in the mid 1990s (and to 54% with privatization in 2002).

SERVICES OFFERED BY MARUTI SUZUKI

AUTHORIZED SERVICE STATIONS: Maruti is one of the companies in India which has unparalleled service network. To ensure the vehicles sold by them are serviced properly Maruti had 2,946 service stations (inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,395 towns & cities and 30 Express Service Stations on 30 highways across India.Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle.

MARUTI INSURANCE

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited.This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception.

MARUTI FINANCE

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India. MARUTI TRUEVALUE

Maruti True Value service is offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 31 March 2010 there are 341Maruti True ValueoutletsMARUTI N2N FLEET MANAGEMENT

N2N is the short form ofEnd to End Fleet Managementand provides lease and fleet management solution to corporate. Clients who have signed up of this service includeGas Authority of India Ltd,DuPont,Reckitt Benckiser,Sona Steering,Doordarshan,Singer India, National Stock Exchange and Transworld. This fleet management service includes end-to-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services and Remarketing. MARUTI GENUINE ACCESSORIES

Many of the auto component companies other than Maruti Suzuki started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand nameMaruti Genuine Accessoriesto offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India. MARUTI DRIVING SCHOOL

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modeled on international standards, where learners go through classroom and practical sessions. Many international practices like road behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. AWARDS2013 Declared Business Standard Company of the Year 2011 WagonR won the Compact Car of the Year 2011 and Alto K10 won the Best Variant of the Year in the Auto car Awards 2011 Ranked No.1 in JD Power Customer Service Index (CSI) Study 2011 for the 12Th time in a row.2012 Maruti Suzuki manufactures 10 lakh units in 2009-10 Ranked No.1 in JD Power Sales Satisfaction Index (SSI) Study 2010 Ranked No.1 in JD Power Customer Service Index (CSI) Study 2010 for the 11Th time in a row Awarded the Best Automobile Manufacturer of the Year 2010 and the Hall of Fame award for single handedly changing the face of Indian automobile Industry by Car India Won National HRD Network Trailblazer Award 2010 for HRD Excellence Received Signicant Achievement in Sustainability award in CII-ITC Sustainability Awards 2010 DZire ranked No.1 in JD Power Initial Quality Study (IQS) 2010 DZire won the JD Power APEAL Study for a third time in a row WagonR won the Best Entry Level Mini Car of the Year category of the 2010 ET ZigWheels Car of the Year awards Ranked among the top 10 Most admired companies from India by Wall Street Journal2010 Maruti Suzuki Swift becomes fastest to reach 3-lakh milestone. Maruti Suzuki A-star breaks own record of fuel efficiency. Maruti Suzuki wins 'Golden Peacock Eco-Innovation Award'. Haryana allots 700 acres to Maruti Suzuki for hi-tech R&D complex at Rohtak. Maruti Suzuki ships out 100000th A-star in less than a year. ICSI awards top honours to Maruti Suzuki for corporate governance .MSIL tops in J D Power CSI (2009) for 10th time in a row Zen Estilo, WagonR and Alto ranked as the top three most dependable vehicles in the compact segment in 2009 JD Power Asia Pacic India Vehicle Dependability Study2009 Maruti Suzuki becomes the first Indian car company to export half a million cars. Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India for Ninth Consecutive Year. Maruti Suzuki moves A-star for Europe on Auto Wagons. Maruti Suzuki displays Fuel Efficiency of its 12 brands from the New Year2008 Maruti Alto becomes first car in India to cross 2 lakh domestic sales in a fiscal. MSIL tops in J D Power CSI (2007) for 8th time in a row Maruti Suzuki MD conferred a Doctorate (Honorary) by London Metropolitan University. Global launch of Concept Car from Maruti Suzuki Maruti's highest ever sales.2007 UGS Asia Pacific PLM Excellence Award Grand Prize. Maruti and Magma in pact for financing cars. MSIL tops in J D Power CSI (2006) for 7th time in a row2006 Number one in JD Power SSI for the second consecutive year, Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times, M800, Wagon R and Swift topped their segments in the TNS Total Customer Satisfaction Study, Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment, Wagon R and Esteem top their segments in the JD Power APEAL study, TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05, Maruti bagged the "Manufacturer of the year" award from Auto car-CNBC (2nd time in a row)-Feb 05, First Indian car manufacturer to reach 5 million vehicles sales, Business World ranks Maruti among top five most respected companies in India-Oct 04, Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04 2005Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction, No.1 in Product Quality (Esteem and Alto) and No. 1in Product Appeal (Esteem and Wagon R), No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto), Business World ranked us among the country's five most respected companies, Business World ranked us the country's most respected automobile company, Voted Manufacturer of the year by CNBC, Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG 2004 Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003", J D Power ranked 3 models of Maruti on top: Wagon R, Zen and Esteem, Maruti 800 and Wagon R top in NFO Total Customer Satisfaction Study 2003, MSIL tops in J D Power CSI (2001) for 4th time in a row 2003 MSIL tops in J D Power CSI (2001) for 2nd time in a row: another international first 2002 Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world 2001 MSM launched as model workshop in India; achieves highest CSI rating. Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee. 2000 CII's Business Excellence Award

1999 Maruti wins INSSAN award for "Excellence in Suggestion Scheme", Awarded the Star Trading House status by Ministry of Commerce 1994-98 Engineering Exports Promotion Council's award for export performance 1994 Best Canteen award among Haryana Industries as part of employee welfare 1992-93 Engineering Exports Promotion Council's award for export performance 1991-92 Engineering Exports Promotion Council's award for export performancePRODUCTION AND PRODUCTPRODUCTIONMaruti Production System or MPS draws learning's from its parent company Suzuki Motor Corporation's concepts on `lean manufacturing' under Suzuki Production System i.e. SPS.Setting trends in new products and achieving customer delight starts with Manufacturing Excellence and Maruti's manufacturing excellence hinges around four important pillars-Cost, Quality, Safety and Productivity.CostEvery employee working on the line is 'cost sensitive' and functions in capacity of a Cost Manager. He is a key contributor in suggesting how to keep costs of production under control.QualityA product of poor quality requires repeated inspections, entails wastage in terms of repairs and replacements. "Do it right first time", is the principle followed to avoid wastage.To ensure quality, robots were devices and deployed especially where they reduced worker fatigue and were critical in delivering consistent quality. With consistent improvements in the plant the company was able to manufacture over 600,000 vehicles in 2006-07 with an installed capacity of just 350,000 vehicles per year.Safety"Home or work place; Safety takes First Place". This has been the motto of the company where safety is concerned. Maruti attaches great significance to safety of its people and strongly advocates that safety at work place adds to quality of the products and improves productivity of the plant significantly.In the Japanese manufacturing system, the central role is accorded, not so much to Quality, Productivity or Cost, but to Safety. When process flow, lay-out and systems are designed for maximum safety, they automatically contribute to better quality and productivity. PRODUCTION MANAGEMENT SYSTEMProduction Management System (PMS) is the next step towards moving ahead to sustain the momentum. It is a strategy to achieve Manufacturing Excellence evolved through participative approach. The system is people driven and ensures involvement of all levels (Managers, Executives, and Supervisors).The concept ensures participation and error free communication. The result is clarity of content, better understanding and openness towards feedback. These values make PMS a sustainable system. Having achieved the target of selling a million cars in the financial year 2009 - 2010, PMS has lead the production team towards greater enhanced productivity with perfection.

PMS is derived from the basic Japanese principles of 5S, 3G and 3K.In order to bring an improvement in overall processes and systems in Production Division through involvement of all levels, PMS was launched in Maruti Suzuki. Through various phases of PMS the company embarked on its journey of brings in a) Clarity of Role, Non-duplication of work, Ownership, Commitment and Standardization in all our process and systems across the production division.PMS is A system which is people driven and ensures involvement of all levels (Managers, Executives, Supervisors) A system which ensures ownership A system which brings in standardization of systems & processes A system which ensures SustainabilityPMS has entered the fourth phase of implementation and the results have been overwhelming.Excellence through participative approachPMS is a bottoms-up approach where people of the work area are encouraged to give solutions to the problems at their end. It is implemented across levels. This motivates the operator and ensures his ownership all through the solution finding process.The concept ensures participation and error free communication. The result is clarity of content, better understanding and openness towards feedback. These values make PMS a sustainable system.Clarity of the RoleOne of the aspects that have bothered hierarchical structures is the clarity of the roles and responsibility across strata. Clarity on what is expected out of a supervisor, a manager or a technician at the shop floor has brought in structure and standardization to production management at Maruti. The result is that job duplication is eliminated and no man-hours are lost in understanding what each person is expected to do.The outcome of such clearly defined roles is increased efficiency of operations.Bringing in StandardizationThrough such people participation, PMS has brought in standardization that eliminates any scope of confusion at shop floor. A visual consistency across the manufacturing facilities is notable. Bins and trolleys are earmarked for tools and components. Pictorial charts explaining processes and procedures are pasted at convenient and strategic points helping shop floor employees understand various mechanisms with ease.Wherever possible a colour coding control or visual control is followed to eliminate operator errors arising out of language constraints. This helps in clear distinction of different model and its components.

All around GainsThese processes have led to many operational improvements that have saved cost and time. At the same time these have brought in operational ease and a defined activity flow and sequence.Marching ahead towards the goal of selling a million vehicles by 2010, PMS will lead the production team towards greater enhanced productivity with perfection. PRODUCTION MILESTONE1st vehicle produced, December 19831,00,000 vehicles produced by August, 19865,00,000 vehicles produced by June, 199010,00,000 vehicles produced by March, 199415,00,000 vehicles produced by April, 199620,00,000 vehicles produced by October, 199725,00,000 vehicles produced by March, 199930,00,000 vehicles produced by June, 200035,00,000 vehicles produced by December 200140,00,000 vehicles produced by April, 200345,00,000 vehicles produced by April, 200455,00,000 vehicles produced by April, 200566,00,000 vehicles produced by April, 2006And Finally1,00,00,000 vehicles produced by 12th February, 2012

MANUFACTURING FACILITIESMaruti Suzuki has two state-of-the-art manufacturing facilities in India.Both manufacturing facilities have a combined production capacity of 1,250,000 vehicles annually.Gurgaon Manufacturing FacilityTheGurgaonManufacturing Facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2km2). All three plants have an installed capacity of 350,000 vehicles annually but productivity improvements have enabled it to manufacture 700,000 vehicles annually. The Gurgaon facilities also manufacture 240,000K-Seriesengines annually. The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. The Gurgaon Facilities manufactures the800,Alto,Wagon R,Estilo,Omni,GypsyandEeco.Manesar Manufacturing FacilityTheManesarManufacturing Plant was inaugurated in February 2007 and is spread over 600 acres (2.4km2). Initially it had a production capacity of 100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The Manesar Plant produces theSwift,Swift DZireandCIAZ. MARUTI 800 (CHANGE YOUR LIFE)Maruti 800is acity carmanufactured byMaruti Suzukiin India. It was launched in December 1983 with almost 100% imported components. It used to be the bestselling car in India until 2004; upon its launch theMaruti Alto took that title. It is arebadgedversion of an old model of theSuzuki Alto. Over 2.5 million Maruti 800s have been sold since its launch in 1983. The same car is sold in Pakistan as theSuzuki Mehranwith a much older 1980s era Suzuki SS80 carburetor based engine.The ex-showroom price of MARUTI 800 is Rs.2 Lakhs Rs.2.15Lakhs.

1. OMNI (FITS ALL)TheMaruti Omniis amicrovanmanufactured by Indian automakerMaruti Suzuki. The first version of Maruti Omni had 796cc engine, same as theMaruti 800city car.This was the second vehicle to be launched by Maruti, one year after the 800, in 1984.The Omni is truly Indias original Multipurpose Vehicle.Today it is available in 5 avatars 5 Seater, 8 Seater, Cargo, Ambulance and LPG. It Meets diverse needs across different user segments and can double up both as a people carrier and a goods carrier. This faithful workhorse is easy on the pocket, yet tough on the job.The ex-showroom price of OMNI is between Rs.2.08 Lakhs Rs.2.67Lakhs.2. GYPSYTheMarutiGypsyis afour-wheel-driveSUVbased on the long wheelbaseSuzuki JimnySJ40/410 series vehicles.It is manufactured inIndiaby Maruti Suzuki. It was introduced in the Indian market in December 1985 with the 970ccF10ASuzuki engine and while sales were never very high it became very popular with law enforcement.The Maruti Gypsy is available as soft top, hard top and as ambulance car. As quoted by Autocar India, "There is nothing that can touch a Gypsy off the road, except perhaps anArjun battle tank.The ex-showroom price of GYPSY is between Rs.5.21 Lakhs Rs.5.73Lakhs.3. ZEN (LOOK AT IT)TheMaruti Zenis a 5-doorhatchbackproduced and sold inIndiaby Indian automaker Maruti Suzuki. It has acquired significant popularity in India since the nameplate was first introduced in 1993. The word "ZEN" is an acronym standing forZeroEngineNoise. The best part of the Zen is it remained in trend for over a very long period without any changes in Exterior Design or looks. It underwent a facelift in 2003. The production of this model ended in March 2006. In 2000 its cost (of LX model) was around Rs 3,80,000.

4. WAGON R (FOR THE SMARTER RACE)TheMarutiSuzuki Wagon Ris a made-for-India version of Suzuki Wagon R. The Wagon R was launched in December 1999, and has since undergone three upgrades (one in 2003, another in 2006 and another in 2010). When the second-generation Wagon R was launched in 2010, the car was built on a newer platform, & claimed more interior space, and new features such as an under-seat tray below the front passenger seat (top-end only). Its looks were also revamped, shedding the boxy look at the back. It is one of the best selling models of Maruti Suzuki in India and continues to be the second best seller of the company after Alto every month. Wagon R has 6 versions.The ex-showroom price of WAGON R is between Rs.3.41 Lakhs Rs.4.28 Lakhs.

5. ALTO (LETS GO)It was launched in the local Indian market on September 27, 2000 although the Alto nameplate was very successfully being used to export theMaruti Zento Europe from India.It is the best sellinghatchbackin India. Since 2006, it is India's largest selling carand crossed the 1 million production figure in February08 becoming the 3rd Maruti model to cross the million marks in India after Maruti 800& Maruti Omni.This is testified by the 24-hour endurance record set on August 03, 2003 of covering 3082kms in 24 hours at an average speed of 128kmph. ALTO K10 : Maruti Suzuki has launched a new version of Maruti Alto in the Indian auto market in August 2010. The new Maruti Alto K10 is equipped with the company's 1.0L, K-series petrol engine which also currently powers the A-Star and WagonR.The ex-showroom price of ALTO is between Rs.2.36 Lakhs Rs.3.33 Lakhs.

6. SWIFT (YOURE THE FUEL)In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as Maruti Suzuki Swift in 2005. In the Indian auto market Swift is available with seven variants four with petrol and three withdiesel engineoption. The petrol version of Maruti Swift is powered by 1.2-litre K-series engine. However, the diesel version of Maruti Swift is packed with 1.3-litre, DDiS engine (borrowed & licensed by Suzuki from FIAT's renowned Multijet technology) with a displacement of 1,248cc.In February 2007, Maruti has finally taken the plunge by planking one of the best diesel engines in the world in Maruti's best car. The combination is potentially explosive. The gearbox is joy to use; smooth and very precise this coupled with commendable fuel efficiency, will make the Swift Diesel delight to own.The ex-showroom price of SWIFT is between Rs.4.36 Lakhs Rs.5.87 Lakhs.7. ESTILO (COME ALIVE WITH)The first generation model went on sale in India in December 2006 as the "Maruti Zen Estilo". The Zen Estilo however, is powered by a largerF10D1.1L MPFI engine that also powers the Wagon R in theJapanesemarket. A facelifted variant was released in August09 as the "Maruti Estilo", losing the Zen moniker entirely. A Spanish expression for style, the new Zen Estilo stands true to its name. Its aerodynamic body, unique bean shape sparkling colours and snazzy lights will rev up your style quotient this transition has brought about a steady decline in sales for this model though the facelift has brought significant improvement in performance and styling over the car's Japanese variants.The ex-showroom price of ESTILO is between Rs.3.31 Lakhs Rs.4.23 Lakhs8. SX4 (MEN ARE BACK)Revolutionary European design, world class Drive by wire technology, most spacious in its class, Steering mounted audio controls, maximum groung clearance in its class, high on safety with dual front airbags, ABS & EBD features.Maruti Suzukilaunched SX4 sedan with the 1.6-litre gasoline engine withoutVVTin 2007. The SX4 was updated to the 1.6-litre engine with VVT. Minor cosmetic differences can be seen between the Indian version and others sold elsewhere. Maruti introduced acompressed natural gas(CNG) factory fitted kit in August 2010.Maruti Suzuki launched SX4 diesel on 17th Feb 2011. The car will carry the same features as the petrol version of SX4 except the engine.The ex-showroom price of SX4 is between Rs.7.02 Lakhs Rs.9.25 Lakhs.

9. SWIFT DZIRE (THE HEART CAR)Suzuki introduced a sedan based version of the Swift called the "Maruti Swift Dzire" in the Indian market. Launched on26thMarch08, Swift DZire replaces Maruti Suzukis popular entry level sedan,Maruti Suzuki Esteem, production of which was discontinued in late 2007. Maruti Suzuki has introduced Swift DZire only in the Indian market. The Dzire has exactly the same wheelbase as the hatchback version and has an increased overall length due to the addition of the boot.The ex-showroom price of SWIFT DZIRE is between Rs.5.04 Lakhs Rs.7.39 Lakhs.NEW SWIFT DZIREMaruti India launched the second generation of its sedan Maruti Swift Dzire on 1st February, 2012 in India. The new car that is based on the recently launched new Swift is available in 1.2 litre petrol and 1.3 litre diesel options. MSIL introduced New SWIFT DZIRE, at a price between Rs 4.79 lakh and Rs 7.09 lakh.10. A-Star (STOP @ NOTHING) The 7th Generation is known in India as theMaruti Suzuki A-Star(short for "Alto-Star"), but is also known as theSuzuki Celerioin some other countries. It was launched in December 2008 Maruti Suzuki. The car is manufactured exclusively inHaryana, India and is exported worldwide. It is available in European markets with a somewhat different front end as theNissan Pixo. The car was rolled out to the Indian customers in December 2008 and exports began in April 2009. The Indian market version comes in three variants - LXi, VXi and ZXi. With the price tag, the car is targeted at customers with budgets somewhere between theZen, Estiloand theSwift.The ex-showroom price of A-STAR is between Rs.3.66 Lakhs Rs.4.50 Lakhs.

11. RITZ (LIVE THE MOMENT)In the Indianautomarket, Suzuki Splash is known as Maruti Suzuki Ritz and launched on 15th May09. Maruti Suzuki has changed its name because the name Splash was already registered by Ford.In India, Maruti Ritz is available with nine variants, five with petrol and rest four with diesel engine options. The petrol variants of Maruti Ritz are powered by the companys popular 1.2L, 1197 cc, K12M KB series petrol engine. This engine is getting much popularity in the Indian market because of its excellent performance and fuel efficiency. The mileage it delivers in city is around 14.5kmpl in city and 18kmpl on highway.The diesel variants of Maruti Ritz are powered by the Fiats 1.3L Multijet diesel engine. The mileage it delivers is 17.7 kmpl in city while on highway it gives 21kmpl.The ex-showroom price of RITZ is between Rs.4.09 Lakhs Rs.5.63 Lakhs.12. EECO (HAPPINESS FAMILY SIZE)EECO was introduced in India by Maruti Suzuki during 2010. This car is essentially an updated Versa, this is an urgent refresh in lines with Maruti Suzuki not being able to come up with a new minivan. EECO comes with 5-seater and 7-seater options. EECO is equipped with advanced Engine Management System for optimizing fuel efficiency and performance. It is branded by the manufacturer asa perfect car for every occasion-a business trip or a picnic with the loved ones.The ex-showroom price of RITZ is between Rs.2.91 Lakhs Rs.3.86 Lakhs.

SWOT AnalysisSTRENGTHS1. Bigger name in the market.2. Established distribution & after sales network.3. Understanding of the Indian market.4. Ability to design product with differentiating features.5. Brand Image.6. Experience & Knowledge how in technology.7. Trust of People.8. MarutiUdyog Ltd. is the market leader for more than decade.9. Has a great dealership chain in the market. 10.Better after sales service. 11.Low maintenance cost of vehicle.WEAKNESSES1. Lack of experience in foreign market.2. Comparatively new to diesel cars.3. People resistant to upper segment models.4. Heavy import tariff on fully built imported models.5. Exports are not that good.6. Lesser diesel models in the market compare to others.7. Global image is not that big.OPPURTUNITIES1. Increased purchasing power of Indian middle class family.2. Government subsidies.3. Tax Benefits.4. Prospective buyers from two wheeler segment.5. Great opportunities to go global with success of Swift and SX4 allover.6. Introduction of more diesel models. The diesel car segment is growing.7. Opportunity to grow bigger by entering into bigger car markets.8. Already a market leader so great opportunity to be the king of market in every stage of industry.THREATS1. Foreign companies entering market; so a bigger threat from MNCs.2. Competition from second hand cars & TATA Nano.3. Threats from Chinese manufactures.4. To the market share, as many big names are coming in the industry5. There is hardly any diesel models6. Rs. 1 lakh Rs. 1.5 lakh car

MARKETING MIXMarketing is the process by which a product or service originates and is then priced, promoted, and distributed to consumers. The principal marketing functions involve market research and product development, design, and testing. It is the business activity of presenting products or services in such a way as to make them desirable.One has to consider promotion that is balanced with a suitable product available at a reasonable price, provided at all places to maximize the sale of ones product.

PRODUCTPRICEPROMOTIONPLACE

BrandPricing strategyPersonal sellingChannel of distributions

PackagingPricing and qualityAdvertisingPhysical distribution

InnovationsPricing and alternativesPublic relationsWholesaler and retailers

QualityDiscounts

1.PRODUCT(Brand, Packaging, Innovations, Quality):

a. Brand: Advertising is often used to make consumers aware of a products special low price or its benefits. But an even more important function of advertising is to create an image that consumers associate with a product, known as the brand image. The brand image goes far beyond the functional characteristics of the product. The products of Maruti Suzuki have many special characteristics to them, but when consumers think of it, they not only think of its features, but they may also associate it with quality, performance, and class. All of these meanings have been added to the product by advertising. Consumers frequently buy the product not only for its functional characteristics but also because they want to be identified with the image associated with the brand.Maruti Suzuki has been successful in creating and maintaining a professional brand image.

b. Packaging:A vehicle cannot have a material packaging. Here, packaging refers to an effective assembly of features. Maruti Suzuki provides many innovative features to suit the target customers and the product.

c. Innovations:The various motives behind buying an automobile are Need, Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to bring new innovations in their product. MSILs have an industrial experience of over 100 years and they are well known with the Psychology of Indian customers, who desire more at less price. This experience has helped them to develop products which fulfil the expectations of Indian consumers.

d. Quality Control:Maruti Suzuki has their Quality Control standards and the QC Dept. ensures that the customer does not face any inconveniences of a defective Service

Portfolio of 12 products Five product lines Product Line Products

A1 800

A2 Alto, Zen ,Wagon R, Swift, A-star

A3 D ZiRE, Sx4

SUV Vitara, Gypsy

C - Class Omni, Versa

2.PRICE(Pricing Strategy, Alterations, Discounts)

Pricing Strategy: The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti 800 is the lowest price car of this company. Alto, Omni, Wagon R, are also the low price car of the company, Zen & Esteem are the mid price car of the company. But Grand Vitara is the high price model of the company. The price of car is decided according to its product variety, quality, design etc

a. Alterations:The Company does not allow any alterations to any of the features of the product. If there is an alteration which affects the performance of the engine, then the warranty becomes void. However, there may be alterations in the accessories, if desired by the customer.

b. Discounts:Discounts are decided by theCo.every month. Any further discounts made from the profits of the Dealer. However, theCo.may compensate the Dealer for the discounts allowed to a certain extent.

3.PROMOTION(Personal Selling, Advertising, Sales Promotion, Public Relations)

Advertising TV Ads Print Ads Radio Ads GharAa Gaya Hindustan India Comes Home in Maruti Suzuki. Information Advertising, alternative Advertising Options BTL - Sponsorships TV shows - Indias Got talent Place Advertising Bill boards Sales Promotions Product warranties Premiums (gifts) Trade shows 2,628The number of workshops that provide customers with maintenance support in 1220 cities.

a. Personal Selling:There is minimal personal selling involved. The Sales Officers at the Dealer collect prospective customer databases and perform cold calling to attract customers.

b. Advertising:Advertising is a form of life Insurance mass communication designed to promote the sale of a product or service. Maruti Suzuki is responsible for the advertising of its products. The Dealer does play any role in the advertising. The various media used for advertising are T.V., Newspapers, Magazines, Hoardings, and Internet etc. The Dealer conducts point-of-purchase displays to advertise the products. The advertisements done by theCo.help the Dealer to capitalize on the market.

c. Sales Promotion:The purpose of sales promotion is to supplement and coordinate advertising and personal selling; Sales promotions are designed to persuade consumers to purchase immediately by providing special incentives such as cash rebates, prizes, extra product, or gifts. TheCo.conducts intensive sales promotion during festivals such as festive discounts during Diwali.

d. Public Relations:Public Relations is a management function that creates, develops, and carries out vehicles and programs to influence public opinion or public reaction about an idea, a product, or an organization. TheCo.takes serious measures to maintain good public relations. TheCo.follows business ethics to ensure that the customer is satisfied and receives good service whenever and wherever he desires

4.PLACE(Channels of Distribution, Physical Distribution)600 New car sales outlets covering 393 cities. 265 Maruti True Value outlets spread across 166 cities.2628 Maruti Authorized Service Stations, covering 1220 cities.Tie up with Adani group for exporting 200,000 units through Mnudra port GujaratSuggested Place strategy:-400 new car sales outlets in next three years.S150 new true value shops in next three years.1200 new Maruti Authorized Service Stations in next three years.Tie up with other distributors for Exports.

a. Channels of Distribution:In case of Vehicles, Dealership method of distribution and sales is generally adopted. Maruti Suzuki has also adopted Dealership method of distribution of its products. The Dealers purchase products from theCo.at a negotiated price. The MRP is fixed by theCo.and the Dealer gets a profit within these prices. As a company deals with passenger vehicles there may be a single or distinct dealership to market its commercial and passenger vehicles in a town. However, if there is a single Dealership appointed, then the commercial and passenger Vehicles are managed under commercial and passenger Vehicles Dept. respectively.Maruti Suzuki has contracts with the Government of India and it supplies MUV, in some cases, to the Govt. Sometimes, bulk quantities of Vehicles are ordered by a Govt. Dept. or a private company. The sales, distribution and billing of these are looked after by theCo.itself.

b. Physical Distribution:Thecommercial vehicles are manufactured atGurgaon and Manesar. From the plant, the finished product is transported to the Dealerships. The nation-wide Dealership, sales, services and spare parts network comprises over 2,000 touch points. The Dealerships are strategically located in the target and potential markets to ensure efficient and timely availability of its products in the market.

Marketing Strategies of Maruti Suzuki CarsMarketing strategyis a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainablecompetitive advantage. DEVELOPING A MARKET STRATEGYMarketing strategies serve as the fundamental underpinning ofmarketing plansdesigned to fill market needs and reachmarketingobjectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by themarketing planvary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned.Marketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include themarketing mix, plus performance analysis and strategic constraints. External environmental factors include customer analysis,competitor analysis,target marketanalysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success.A key component of marketing strategy is often to keep marketing in line with a company's overarchingmission statement. Once a thorough environmental scan is complete, astrategic plancan be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation.A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan. TYPE OF STRATEGIESMarketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:1. Strategies based onmarket dominance- In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:a) Leaderb) Challengerc) Followerd) Nicher

2. Porter generic strategies- strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These areDifferentiationandlow-cost leadershipeach with a dimension of Focus-broad or narrow.a) Product differentiation(broad)b) Cost leadership(broad)c) Market segmentation(narrow)

3. Innovation strategies this deals with the firm's rate of the new product development andbusiness model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:

a) Pioneersb) Close followersc) Late followers4. Growth strategies In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers:a) Horizontal integrationb) Vertical integrationc) Diversificationd) IntensificationA more detailed scheme uses the categories: Prospector Analyzer Defender Reactor Marketing warfare strategies- This scheme draws parallels between marketing strategies and military strategies STRATEGIC MODELSMarketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the3Cscan be employed to get a broad understanding of the strategic environment. An off Matrix is also often used to convey an organization's strategic positioning of theirmarketing mix. The4Pscan then be utilized to form a marketing plan to pursue a defined strategy.There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered on Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges. The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps. REAL-LIFE MARKETINGReal-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven.Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.For most of their time, marketing managers use intuition and experience to analyze and handle the complex and unique situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.


Recommended