1

As
DISSERTATION
ON
A STUDY ON MARKETING STRATEGIES OF FMCG SECTOR WITH
RELATION TO HUL

SUBMITTED FOR PARTIAL FULFILLMENT OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Jitendra kumar
(Roll No.: 1268670075)
Under the Guidance of
Md Faiz Siddiqui
Assist. Professor


Accurate Institute of Advanced Management, Greater Noida
(Affiliated to UP Technical University and Approved by AICTE)
2014






2

Accurate Institute of Advanced
Management
Affiliated to UPTU and Approved by
AICTE

HEAD OF MBA PROGRAMS CERTIFICATE

This is to certify that Dissertation titled A STUDY ON MARKETING
STRATEGIES OF FMCG SECTOR WITH RELATION TO HUL is carried
out by Mr. jitendra kumar Roll No. 1268670075 student of MBA IV
Semester at Accurate Institute of Advanced Management, Greater
Noida, under the supervision of Md Faiz Siddiqui ,Assist. Professor.
This is an original work carried out by the said student to the best
of my knowledge and I recommend for the submission of this
Dissertation to Uttar Pradesh Technical University, Lucknow in the
partial fulfillment of the requirement for the award of MBA Degree.


Prof. (Dr.) Amar Kr. Saxena
Director,
AIAM, Greater Noida
Date:

Plot No. 49, Knowledge Park-3, Greater NOIDA-201306 (UP), Phone:
0120-2328235, Fax: 0120-2320355 E. Mail.: info@accurate.in, Web:
http//www.aia



3

STUDENTS DECLARATION

I hereby declare that the survey,data collection an analysis work Related to
Dissertation project report titled A STUDY ON MARKETING
STRATEGIES OF FMCG SECTOR WITH RELATION TO HULhas been
carried out exclusively on my efforts Under the guidance of Md Faiz Siddiqui I,
further declare that this work was neither published nor submitted. To any
other institution for award of any other degree or diploma.















Jitendra kumar

4

PREFACE

The learning process of classroom is incomplete without any practical field
experience. It is because of the reason that our Institute like any other, has provision
for practical training so accordingly we have been given this Disseratation for
practical exposure.

This work gave us an insight to understand that how some of the important concepts
that we have been studying as a student of management are applicable in the field.
The project is a sincere attempt to focus on the subject in a lucid manner. I sincerely
attempted to carry out in depth study of the subject.







PRAMOD KUMAR
Roll no.:- 1268670129

5


CONTENT





S. no. TOPIC PAGE
1 Introduction 6
2 Objectives 7
3 Scope of study
4 Research Methodology 62
5 Company Profile
6 Observation and Analysis
7 Findings
8 Limitation
9 Conclusion
10 Suggestion and Recommendation
11 Appendix
12 Questionnaire
13 Bibliography
14 References

6


INTRODUCTION
Maruti Suzuki India Limitedwasestablished 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 onlydue 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 Govt of India and Suzuki
Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The
objectives of MSIL thenwere 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.








7

OBJECTIVS
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
way 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. MSIL is also the first
and only car company in the world to lead its home market in terms of both market
share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000
India Customer Satisfaction studies).




8

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 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.

9


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 '09-
10. On the quality front, while Maruti was 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

10

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 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.

11


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 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 would
bounce back. Our market share went down to 61%, but we have now stabilized
around 58-59%. We took off a bit late, had lot of catching up to do, which we have
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 buying AC

12

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 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

13

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 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.






14


ORGANISATIONSTRUCTURE ATKARLO AOTUM. (P) LTD.















Managing Director
Mr. SANJEEV KUMAR
CEO
Mr. SHIVESH NARAYAN
Human Resourse Manager
Mr. RAM KRISHNA SHANKAR

Manager
sales



Customer
Care



Accounting
Manager
True

15


















Spares Manager Workshop Value
Team Leader-1
Mr. GAURAV RANJAN
Team Leader-2
Mr. AJAY PRASHAD
WORKSHOP MANAGER
Mr.HIMANSHU &Mr. PRAKASH KR. JHA
Sales executive (se)
[5 sales executive under 1 team leader]

16




Mechanic


Jr.Mechanic


Electrician


Defter/Painter
Service
Advisor/
Supervisor
Pre-delivery
Inspection
(PDI)

Accidental
Unit
Customer
Manager

Mr.K.C.
GUPTA

Back Office

17








Evaluators
Executive
Sales
Executive
Back Office
Staff







Sr.Manager A/c

Mr. SHUSHIL KUMAR

TRUE VALUE MANAGER

Mr. SURAJ KANT KUMAR

A/C Department

18

A/C Manager


Executive A/C Manager















19

Duties and Responsibilities of the Staff in KA(P)L.
The duties and responsibilities of the staff of the dealer RKBK Automobiles ltd is
To sale maximum vehicles.
To maintain all the a/c with honesty.
To create healthy environment in the organization.
To co-operate with each other in the organization.
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 dealers.



20




PRODUCTS & SERVICES

MARUTI 800







21

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 launched their LPG
model, which is more economic than others.



MARUTI OMNI





22

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

















23

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 other words, less
fatigue.
The MPFI engine also meets all the stringent Euro II emission norms












24

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.














25

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.Alto becomes the first Indian car to undergo a 24 hours endurance test and sets
13 national records in the process.

26


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 ensures a
smooth comfortable drive. It's not just comfort; Wagon R also has a 1061cc MPFI low
friction engine




27

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 class airline
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.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.




28

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 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



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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 &
backward independently to suit the convenience.
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.










30

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
SNOW
The Engine thats high on thermal conductivity, and heats up quickly even under
extremely cold conditions. Thus, there are no starting problems even in the midst
of snow.

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1300 cc petrol engine lighter than a diesel engine, resulting in a higher power
to weight ratio. This ensures better control, more power and greater
responsiveness.
DESERT
The Engine avoids overheating because its high thermal conductivity enables it to
give off heat much faster
STREAMS
Maximum power of 80 bhp @ 6000 rpm makes for easier crossings.
4-Wheel drive for better control and more power at the wheel.
A higher power to weight ratio of 0.0812 ensures faster acceleration through
streams and muddy terrain.
CKS
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



32

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 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.





33

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 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.

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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 White
Silky 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:


35

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

36

Indulge your desire of complete comfort:
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.











37

MARUTI SX4

Maruti Suzuki SX4
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.

38

OTHER FEATURES
Maruti Suzuki SX4 is assorted with elegant features which makes the model worth
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
4WD Auto mode
4WD Lock mode




39

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






40

MARUTI RITZ

Maruti Ritz is perhaps the most awaited and hyped car from Maruti Suzuki.
The car is positioned in the premium A2 market segment, which includes its
compact offerings such as Alto K10, WagonR, Swift, Zen Estilo and the
newly-launched A-Star.
Maruti Ritz Description
The new and ultra-low emissions K12M engine will make the Ritz
India's first BS-IV ready passenger car. The engine has E10

compatibility .With an overall width of 1.68 metres, the Maruti Ritz

is 8cm wider than the Wagon R+. Smartly shaped headlights give

it a friendly appearance, and they combine with a trapezoidal grille

to form a face that reflects the new Suzuki family identity.

PRICE- The price of RITZ is between 395000-570000




41

MARUTI A STAR



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 2008-09.
The passenger vehicle market is divided broadly into the following three categories:
1. Passenger cars
2. Multi-purpose vehicles (MPVs) and 3. Utility vehicles (UVs)

42

Within these categories, MSILs 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 2007-08 to
696,207 units in 2008-09. Maruti continues to be the market leader. During 2008-09,
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 2007-08 to 51.4 per cent in 2008-09.
The Indian car market is classified into six categories based on the vehicle length
1: Mini up to 3,400mm.
A2: Compact from 3,401 mm to 4, 000 mm.
A3: Mid-size from 4,001 mm to 4,500 mm.
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 categories namely
A1, A2 and A3. Chart C plots MULs sales volumes in these three categories for 2007-08
and 2008-09.


43

A1 CATEGORY: With its Maruti 800, your company is the only player in this
category. Sales volumes increased by 16.9 per cent during 2007-08. 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
MSIL 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 2008-09. 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, MSILs sales volume grew by 46 per cent. Consequently, the
companys market share has increased from 40.3 per cent in 2007-08 to 47.7 per cent in
2008-09.
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 2008-09. 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. MSIL is the dominant company in India, which has the
models to tap this huge growth opportunity. To penetrate deeper into the Indian
market, MSIL 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.

44

Apart from strengthening the distribution network, key initiatives that drove this
growth during 2008-09 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.
New variant of the Zen was launched in the latter half of 2003,
which rejuvenated the brand in the market. There were also signifi cant
changes in the Wagon R, which contributed to a volume growth of
59
per
cent.

A3 CATEGORY: This is a highly fragmented category with several models, and no
single player has major leadership position. MSILs 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 2008-09, to increase market
penetration, MSIL revised the prices of SX4 downwards and launched a new version
the SX4Lxi. We have already started witnessing results from this initiative.



45

MULTI-PURPOSE VEHICLES (MPVs)

In this segment, Marutis models include the Omni and the Versa. Here, Maruti is
the dominant player with nearly 100% market share. In 2011-12, the companys
sales volumes grew by 18.7 per cent.
During the latter half of the year, Maruti launched an economy model of the Versa.
A new Omni variant, which runs on LPG, was launched to tap newer cargo
markets.
Passenger Cars + MPV Market
Passenger cars and MPVs are generally analyzed as a comprehensive segment.
Maruti marginally increased its share in this segment with about 55.2 per cent in
volume terms during 2004-05. Segment with a market share of only 2.5 per cent.
The primary model in this segment is the Gypsy. During April 2003
,
the company
Launched its state-of-the-art sports utility vehicle (SUV) the Grand Vitara.
Cust omer Ori ent at i on
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.

46

It is important to note that the rating, which was between 10 and 20 per cent in 2008,
has increased to above 50 per cent in 2009. Another interesting point is that while
Marutis

47

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 2009, the companys reputation has
become the leading factor determining the customers purchase decision in 2010.
Thus, Maruti has managed to build a strong brand image in the last four years.
MSILs technological capabilities are getting greater recognition as in 2011: 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, and has a service network of more than 1900 workshops
spread across 1000 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.

48

Therefore, MSIL 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.
MSIL 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 Finance (a consortium of finance companies),
Maruti Insurance and the pre owned cars business under the True Value brand name. In
all these businesses, Maruti plays the role of an aggregator and brand manager. None of
the risks related to these businesses are booked in the books of MSIL.
Most dealers have understood the importance and profitability of this new business
model and their strong motivation has resulted in record top-line growth for 2008-
09.
A key initiative to promote best practices on the dealer front has been the practice of
the balanced scorecard to evaluate dealers. Those dealers who achieve or exceed a
certain score are financially rewarded for their efforts.

49

The company acknowledges that superior customers experience is only possible if the
dealers employees are adequately trained. To achieve this, training is undertaken in
all areas of dealership operations.
We are proud to state that Marutis dealers technicians were ranked the best among
Suzuki distributors in South-East Asia; and now, an Indian team will participate in the
International Technical Skill Competition in Japan.

EXPORTS
2009-10 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 2007-08 to Rs.9,410 million
in 2010-11 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 2008-09. 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.OPERATIONS
Your company remains steadfast in its quest for achieving higher operational
efficiencies. This includes efforts at reducing costs, increasing productivity and
maintaining delivery schedules.

50

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
MSIL 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.



















51

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 2009-10 and 2010-11. 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 2010-11 to 472,908 units in 2011-2012
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.
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.
2010-11 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 2009-10 to 19 days in 2011-2012.
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 MSIL started its operations in India, auto-component

52

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.
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 2009-10 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 MSIL.
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.




53

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.
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

54

developed capabilities for face lifts and body changes of current models. These
include styling, clay modeling, computer aided design, prototype making and its in -
house, resulting in significant reduction in the investment required for these
modifications.

evaluation, and stamps / dies designing. All modifications done on the new Zen
model introduced by the company in 2010-11 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
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 our customers. In this
process, a select number of cars are picked at random everyday and taken through
rigorous tests.
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.

55

In the year under review, MSIL 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.
MSILs press shop and related functions received the TS 16949 quality certification in
2008-09. 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, MSIL 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:
MSILwas ranked No. 1 in the prestigious JD Power Customer Satisfaction Survey,
2008. This No.1 rank is for fourth time in a row which is a world record for any
automobile leader in a country.
In2008, 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 2012.
In2011-12, NFO, an international survey agency, ranked Maruti WagonR as no.1 in the
Total Customer Satisfaction for Premium Compact segment.




56

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 of the companys
future and familiarized the union members with the 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, (MSIL) 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

57

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.
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 2005-06, which was accepted by 1,050
employees.
As on 31 March 2011, MSIL 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 2011-12, a five year wage settlement agreement was signed by
MSIL with its workers union. Apart from bringing in the concept of cost to
company in the remuneration scheme for workers, this agreement.



58



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 network, and standardize
service delivery at customer touch points.
The system is presently undergoing pilot testing, and is expected to be operational by
November 2011.

59

Maruti has also introduced a Vehicle Tracking System (VTS) at two of its plants. This acts
as an interface between business and shop-floor systems. It enhances shop-floor
efficiencies by providing accurate and timely instructions to the shop-floor, along with a
feedback to the business systems. Going forward, this infrastructure should provide
additional strategic capability of introducing more products and variants on the same
production facilities. VTS along with existing Quality Gate System has considerably
enhanced our quality control systems and has given us an important competitive
advantage in todays scenario.
One of the key initiatives on the operations front has been the introduction of E-
Nagare a system for material scheduling and ordering. This is one of the best practices
inherited from Suzuki, and has significantly smoothened our Just-In-Time (JIT)
operations on the shop-floor.
(MSIL) has also taken up e-sourcing as one of the key focus areas for cost reduction and
improved procurement. The company has successfully used this to significantly reduce
costs of procurement, while bringing in greater transparency into the system.
Going forward, MSIL 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 MSIL. 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 CASE
The study has been under taken to analyze the marketing strategy of MARUTI SUZUKI in
PATNA (BIHAR) with a special reference to the KARLO AUTOMOBILES (P) LTD., the
other objectives are:
To gather information about marketing strategy ofMARUTI SUZUKI in the geographic
region of PATNA (BIHAR).
To know the different techniques used by MARUTI SUZUKI for maximum sale in the
city.
To know the customer satisfaction about the safety and comfort provided by MARUTI
SUZUKI.
To provide suggestions, in improving the customer satisfaction and the company sales
and profitability
To know the customer satisfaction towards the after sales service offers by MARUTI
SUZUKI so that more attraction of customers can occur.







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RESEARCH
METHODOLOGY







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A research process consists of stages or steps that guide the project from its conception
through the final analysis, recommendations and ultimate actions. The research process
provides a systematic, planned approach to the research project and ensures that all aspects of
the research project are consistent with each other.
Research studies evolve through a series of steps, each representing the answer to a key
question.













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

The various tasks that I have undertaken in the research design process are :
Defining the information need

Design the exploratory, descriptive and causal research.








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RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis It has a
logical and hierarchical ordering:

Determination of information research problem.

Development of appropriate research design.


Execution of research design.

Communication of results.


Each step is viewed as a separate process that includes a combination of task, step and
specific procedure. The steps undertake are logical, objective, systematic, reliable, valid,
impersonal and ongoing.





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EXPLORATORY RESEARCH

The method I used for exploratory research was
Primary Data
Secondary data


PRIMARY DATA

New data gathered to help solve the problem at hand. As compared to secondary data which
is previously gathered data. An example is information gathered by a questionnaire.
Qualitative or quantitative data that are newly collected in the course of research, Consists of
original information that comes from people and includes information gathered from surveys,
focus groups, independent observations and test results. Data gathered by the researcher in
the act of conducting research. This is contrasted to secondary data, which entails the use of
data gathered by someone other than the researcher information that is obtained directly from
first-hand sources by means of surveys, observation or experimentation.
Primary data is collected by getting questionnaire filled by the respondents.



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SECONDARY DATA

Information that already exists somewhere, having been collected for another purpose.
Sources include census reports, trade publications, and subscription services. There are two
types of secondary data: internal and external secondary data. Information compiled inside or
outside the organization for some purpose other than the current investigation Researching
information, which has already been published? Market information compiled for purposes
other than the current research effort; it can be internal data, such as existing sales-tracking
information, or it can be research conducted by someone else, such as a market research
company or the U.S. government.

Secondary source of data used consists of books and websites

My proposal is to first conduct a intensive secondary research to understand the full impact
and implication of the industry, to review and critique the industry norms and reports, on
which certain issues shall be selected, which I feel remain unanswered or liable to change,
this shall be further taken up in the next stage of exploratory research.




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DESCRIPTIVE RESEARCH

STEPS in the descriptive research:
Statement of the problem
Identification of information needed to solve the problem
Selection or development of instruments for gathering the information
Identification of target population and determination of sampling Plan.
Design of procedure for information collection
Collection of information
Analysis of information
Generalizations and/or predictions







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APPLIED STATISTICAL TOOLS
Graph and Pie-chart are used as statistical tools for hypothesis, for interpretation and
For recommendation.


DATA COLLECTION
Data collection took place with the help of filling of questionnaires. The questionnaire
method has come to the more widely used and economical means of data collection. The
common factor in all varieties of the questionnaire method is this reliance on verbal responses
to questions, written or oral. I found it essential to make sure the questionnaire was easy to
read and understand to all spectrums of people in the sample. It was also important as
researcher to respect the samples time and energy hence the questionnaire was designed in
such a way, that its administration would not exceed 4-5 mins. These questionnaires were
personally administered.
The first-hand information was collected by making the people fill the questionnaires. The
primary data collected by directly interacting with the people. The respondents were
contacted at shopping malls, markets, places that were near to showrooms of the consumer
durable products etc. The data was collected by interacting with 100 respondents who filled
the questionnaires and gave me the required necessary information. The respondents
consisted of housewives, students, businessmen, professionals etc. the required information
was collected by directly interacting with these respondents.

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DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is
intended. It attempts to describe them as they are rather than as the describer would like them
to be. Also called the audience the audience to be served by our project includes key
demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries
of a program. This will be either all or a subset of potential users, such as adolescents,
women, rural residents, or the residents of a particular geographic area. Topic areas:
Governance, Accountability and Evaluation, Operations Management and Leadership. A
population to be reached through some action or intervention; may refer to groups with
specific demographic or geographic characteristics. The group of people you are trying to
reach with a particular strategy or activity. The target population is the population I want to
make conclude an ideal situation; the sampling frames to matches the target population. A
specific resource set that is the object or target of investigation. The audience defined in age,
background, ability, and preferences, among other things, for which a given course of
instruction is intended.
I have selected the sample trough Simple random Sampling


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SAMPLE SIZE:
This involves figuring out how many samples one need.
The numbers of samples you need are affected by the following factors:
Project goals
How you plan to analyze your data
How variable your data are or are likely to be
How precisely you want to measure change or trend
The number of years over which you want to detect a trend
How many times a year you will sample each point
How much money and manpower you have

I have targeted 100people in the age group above 21 years for the purpose of the research.
The target population influences the sample size. The target population represents the
PATNA regions. The people were from different professional backgrounds.
The details of our sample are explained in chapter named primary research where the
divisions are explained in demographics section.



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ERRORS IN THE STUDY
Interviewer error
There is interviewer bias in the questionnaire method. Open-ended questions can be biased by
the interviewers views or probing, as interviewers are guiding the respondent while the
questionnaire is being filled out. The attitudes the interviewer revels to the respondent during
the interview can greatly affect their level of interest and willingness to answer openly. As
interviewers, probing and clarifications maximize respondent understanding and yield
complete answers, these advantages are offset by the problems of prestige seeking, social
desirability and courtesy biases.
Questionnaire error
The questionnaire designing has to careful so that only required data is concisely reveled and
there is no redundant data generated. The questions have to be worded carefully so that the
questions are not loaded and does not lead to a bias in the respondents mind
Respondent error
The respondents selected to be interviewed were not always available and willing to co
operate also in most cases the respondents were found to not have the knowledge, opinion,
attitudes or facts required additionally uninformed response errors and response styles also
led to survey error.



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Sampling error
We have taken the sample size of 100, which cannot determine the buying behavior of the
total population. The sample has been drawn from only local Capital Region.
REASEARCH DESIGN
Research design is a conceptual structure within which research was conducted. A research
design is the detailed blueprint used to guide a research study towards its objective. It is a
series of advanced decision taken together comprising a master plan or a model for
conducting the research in consonance with the research objectives. Research design is
needed because it facilitates the smooth sailing of the various research operations, thereby
making research as efficient as possible yielding maximum information with the minimum
effort, time and money.

HYPOTHESIS
In statistics, a null hypothesis (H
0
) is a concept which arises in the context of statistical
hypothesis testing. A common convention is to use the symbol H
0
to denote the null
hypothesis. The null hypothesis describes in a formal way some aspect of the statistical
behavior of a set of data and this description is treated as valid unless the actual behavior of
the data contradicts this assumption. Statistical hypothesis testingis used to make a decision
about whether the data does contradict the null hypothesis: this is also called significance
testing. A null hypothesis is never proven by such methods, as the absence of evidence
against the null hypothesis does not establish the truth of the null hypothesis. Failing to reject
H
0
says that there is no strong reason to change any decisions or procedures predicated on its
truth, but it also allows for the possibility of obtaining further data and then re-examining the
same hypothesis.

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The alternative hypothesis (or maintained hypothesis or research hypothesis) and the null
hypothesis are the two rival hypotheses whose likelihoods are compared by a statistical
hypothesis test Usually the alternative hypothesis is the possibility that an observed effect is
genuine and the null hypothesis is the rival possibility that it has resulted from chance.

The classical approach is to calculate the probability that the observed effect (or one more
extreme) will occur if the null hypothesis is true. If this value (sometimes called the "p-
value") is small then the result is called statistically significant and the null hypothesis is
rejected in favor of the alternative hypothesis. If not, then the null hypothesis is not rejected.
Incorrectly rejecting the null hypothesis is a Type I error; incorrectly failing to reject it is a
Type II error.

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COMPANY PROFILE

In more ways than one, the year 2011-12was a watershed year for Maruti Suzuki India Limited
(MSIL). 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 2009-10. 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.9.14 in 2010-11to Rs.21.77 in 2007-08.

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, 2009-10marks 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 6per cent GDP growth in 2010-11to 8.8per
cent in 2011-12 has definitely assisted your company in increasing revenue. This is the

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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 of the industrial sector. Chart A plots
growth in GDP, industry, passenger vehicle (PV) sales volumes and total automobile sales
volumes and emphasizes this correlation. In 2011-12, the Indian passenger car and multi-
utility vehicles market finally reached efficient scales of nearly a million. Although the
improved economic environment helped growing automobile sales, it was not a totally
smooth drive for the Indian automobile industry. An increase in the number of players and
models has resulted in fierce competition driving down prices across all segments. The
industry also witnessed significant rise in prices of key raw materials like steel, rubber and
plastics. Thus, profit margins were under pressure.

Maruti has always believed in size and spread. When the Indian automobile industry was
reconciled to around 40,000 cars in early 1980s, MSIL was the first company that aspired to
sell 100,000 cars a year. The aspiration of being the market leader with high sales volume
continues to be intrinsic to your companys philosophy. This belief has held the company in
good stead during 2011-12 where the strategy of pushing volume growth resulted in
higher margins due to the positive effects of better capacity utilization.

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Improvedoperational efficiencies, which are largely due to the transfer of technology,
systems and work culture from (MSIL) majority shareholder.

Suzuki Motor Corporation (SMC) has also contributed to the improved returns on
investments. In 2010-11, 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 2011-12 to 5.6 per cent in
2010-11.
Return on average capital employed (ROCE) increased from 9.9 per cent in 2007-08 to 22.3 per
cent in 2008-09.
Return on average net worth (RONW) increased from 5.2 per cent in 2007-08 to 16.5 per cent in
2008-09.
Earnings per share (EPS) increased from Rs.5.14 in 2007-08 to Rs.18.77 in 2008-09, while cash
EPS increased from Rs.17.79 in
2007-08 to
Rs.38.39
in 2010-11.

MSIL also witnessed a key structural change during 2008-09. 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, MSIL 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 2010-11, 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 oversubscribed 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, MSIL 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 MSILs ordinary shares, while 27.5 per cent is in
public hands.
MSIL 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 2008-09, 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 manufactures.





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OBSERVATION AND ANALYSIS
SURVEY OF POPULATION AND SAMPLE SIZE AND LIMITATIONS

1-The survey of population is limited to the respondents are selected from in and around
PATNA.
2-The sample unit was also 100 respondents.
Table No. 1
Satisfaction towards maruti Suzuki










Satisfied Dissatisfied
78% 22%

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Figure:1


Interpretation 1:
The sample drawn on probability basis shows that 78% of the customers were satisfied with
maruti Suzuki(ALTO&SWIFT)variant and only 22% were not satisfied with maruti suzuki
(ALTO&SWIFT).
Observation:
Most of the respondents approached were satisfied with Maruti Suzuki(ALTO&SWIFT).



78%
22%
0
0
Satisfied Toward Maruti Suzuki(%)
Satisfied
Dissatisfied

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Table No: 2 Factors affectingcustomer satisfaction towards Maruti Suzuki.

Factor No. of Respondent Percentage
Features 18 12%
Low Maintenance 51 34%
Comfort 27 18%
Style 24 16%
After Sales Service 30 20%

Source: Questionnaire


Figure:2

12%
16%
18%
20%
34%
0
Factor Affecting Customer Satisfaction
Features
Style
Comfort
After sales service
Low maintenance cost

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Interpretation 2:
The sample drawn on the probability basis clearly shows that 34% (51respondents) are the
opinion that low maintenance is the satisfaction factor maruti 800 and 20 %( 30 respondents)
of them who view After Sales Service as a vital factor for customer satisfaction. Followed by
Comfort which corresponds to 18 %( 27 respondents), Style with 16%(24respondents) and
only 12%(18 respondents) of them view that feature of maruti 800 as satisfaction factor.

Observation:
Majority of the respondent are of the idea that low maintenance of the top most feature
contributing to customer satisfaction followed by after sales services comfort style and
features.
As such,Maruti Suzuki should focus on the aspects, which will enhance the customer
satisfaction and thus the market share.
Table No: 3 Customer opinions towards fuel consumption.
Factor Percentage
Extremely Satisfied 27%
Satisfied 49%
Neutral 17%
Dissatisfied 7%

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Source: Questionnaire

Figure: 3

Interpretation 3:
27%
49%
17%
7%
Consumer Opinions toward Fuel
Consumption
More Satisfied
Satisfied
Not Satisfied & Dissatisfied
Dissatisfied
Total 100%

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100% of the respondents 49% of the respondents approached were satisfied with the fuel
consumption of the maruti alto. Followed by 27% was extremely satisfied, 17% are neutral
and rest of the 7% is more dissatisfied with fuel consumption of maruti 800..

Observation:
As majority of the respondents are satisfied with the fuel consumption of maruti alto, the
company should maintain the same standard and it is suggested to come up with suitable
measure to reduce the negative opinion among the consumer who are of the opinion that the
fuel consumption is a dissatisfying factor.

Table No: 4 Customer opinions toward Safety and Comfort.
Factor Percentage
Extremely Satisfied 23%
Satisfied 47%
Neither Satisfied & Dissatisfied 20%
Dissatisfied 10%
Total 100%
Source: Questionnaire
Figure:4

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Interpretation 4:
100% of the respondents 47% of the respondents approached were satisfied with the safety
and comfort feature of the maruti swift. Followed by 23% was extremely satisfied, 20% are
neutral and rest of the 10% was dissatisfied with safety and comfort feature of maruti swift.

Observation:
As majority of the respondents are satisfied with the safety and comfort feature of maruti
swift, the company should maintain the same standard and it is suggested to come up with
suitable measure to reduce the negativeopinion among the consumer who are of the opinion
that the fuel consumption is a dissatisfying factor.

23%
47%
20%
10%
Customer Opinions toward
Safety and Comfort
Extremely Satisfied
Satisfied
Neutral
Dissatisfied

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Table No: 5 Customer opinions toward Design.
Source: Questionnaire


Figure: 5


Interpretation 5:
20%
40%
27%
13%
Customer Opinions Toward Design
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
Factor Percentage
Extremely Satisfied 20%
Satisfied 40%
Neutral 27%
Dissatisfied 13%
Total 100%

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100% of respondents 40% of the respondents approached were satisfied with the Design of
the maruti alto. 20% were more satisfied, 27% of them neutral and 13% are dissatisfied with
the design of the maruti alto.

Observation:
As majority of the respondents are satisfied with the design of maruti alto, the company
should maintain the same standard and it is suggested to come up with suitable measure to
reduce the negative opinion among the consumer who are of the opinion that the fuel
consumption is a dissatisfying factor.
Table No: 6 Customer opinions toward space availability in Maruti Alto.




Factor Percentage
More Satisfied 27%
Satisfied 53%
Neither Satisfied & Dissatisfied 17%
Dissatisfied 3%
Total 100%

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Figure: 6

Interpretation 6:
The sample drawn on the probability basis shows that out of 100% of respondents 53% of the
respondents approached were satisfied with the space availability of the Alto. 27% were more
satisfied, 17% of neither satisfied and dissatisfied and 3% are dissatisfied with the space
availability of the Alto.

Observation:
As 80% of the respondents are happy with the space availability of the Maruti Alto vehicle, it
can be conducted that the company has undertaken proper R&D in this aspect.
27%
53%
17%
3%
Customer Opinions Toward Space Availability
Extremely Satisfied
Satisfied
Neutral
Dissatisfied

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The 20% of the respondents who have answered negatively may be comparing with the
vehicle in the same category launched very recently.
Table No: 7 Customer satisfactions toward Maintenance of Maruti SWIFT.

Factor Percentage
Extremely Satisfied 23%
Satisfied 51%
Neutral 21%
Dissatisfied 5%
Total 100%
Source: Questionnaire
Figure:7

23%
51%
21%
5%
Customer Opinions Toward Maintenance
Extremely Satisfied
Satisfied
Neutral
Dissatisfied

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Interpretation 7:
The sample drawn on the probability basis shows that out of 100% of respondents 51% of the
respondents approached were satisfied with the maintenance of the SWIFT. 23% were
extremely satisfied, 21% of neutral and 5% are dissatisfied with the maintenance.

Observation:
Though majority of the customer are satisfied that the maintenance cost of maruti swift is
less, around 20% are not satisfied which may be because of comparison of SWIFT with the
newly launched competing brands coming with even lower maintenance cost.
Table No: 8 Customer awareness about power steering.
Option No. Of Respondent No. Of Respondents (%)
Aware 120 80%
Unaware 30 20%
Total 150 100%
Source: Questionnaire

Figure: 8

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Interpretation 8:
Out of 100% of respondents, 80% of the respondents approached were aware of the power
steering present in some variant of Alto and 20% were not aware of the power steering
present in some variant of Alto.

Observation:
Most of the respondents approached were aware of power steering system introduced in some
variants of Alto.

Table No: 9 Customer perceptions about ALTO

80%
20%
0 0
Customer Awareness About Power Steering
Aware
Unaware

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Very Good Good Average Bad Very Bad
20% 47% 21% 12% -
Source: Questionnaire
Figure: 9

Interpretation9:
The sample drawn on the probability basis shows that out of 100% of respondents 47% of the
respondents gave Good response toAlto. 20% gave Very Good response, 21% gave Average
response and 12% gave bad response toAlto.


Observation:
20%
47%
21%
12%
Customer Perception About ALTO
Very Good
Good
Average
Bad

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As 67% of the respondents are satisfied that they are happy with Alto, it satisfies that the
customer satisfaction levels are very high. If the company were to identify the pitfalls in their
product and undertake remedial measure, thus it will lead to more good word of mouth
publicity.














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FINDINGS

Based onthe data gathered by administrating schedules to customers the following
observationsare made.
1-Maruti Suzuki has excellent percentage of customer satisfaction according to the data
shown in table 1 of the data analysis an
d Interpretation topic.
2-Most of the people are satisfied with its low maintenance cost and after sales service
provided by Maruti Suzuki.
3-Based on the fuel consumption, most of the people are satisfied with it.
4-Based on Safety and Comfort, Design, Space, Maintenance most of the people are satisfied
with it.
5-Large numbers of Maruti user are aware of its power steering.
6-If we took the satisfaction level of people towardMaruti, it becomes good.
7-Its features and style satisfy most of the people.






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LIMITATIONS

1- Measurement of customer satisfaction is complex subjects, which uses non-objectives
method, which is not reliable..
2-However, MARUTI SUZUKIAutomobile showroomsare located in other places i.e. locally
and even in the neighboring states. Only opinion of respondents of PATNA city was consider
for finding out the opinions of respondents.










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CONCLUSION

1-Maruti Suzuki has a very good market share in the state of BIHAR for the SUV segment.
2-The company is offering good services, which is reflected on the satisfaction of the
customer.
3-Majority of the customer are satisfied with the design of the vehicle.











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SUGGESTION AND RECOMMENDATION

1-Maruti Suzuki Company has to implement good customer relationship management
strategy that enhances customer satisfaction level.

2-The company can for the undertake R&D to improve the existing feature which field help
increase in the customer satisfaction.

3-The company should promote about the entire feature offered by it.

4-As majority of the customer give opinion that they are satisfied is the factor, services and
design of the product of the company should taken not only maintain the existing standard
but also enhance them.







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APPENDIX

Padagogy: Science of teaching













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QUESTIONNAIRE

Customer profile:

a) Name
b) Occupation
c) Age
d) Income
e) Address:-

1) Are you a satisfied with Maruti Suzuki?

a. Yes
b. No





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2) If Yes Which factor you consider is satisfies you most?

a. Feature
b. Low Maintenance
c. Looks
d. After Sales Service


3) Are you satisfy with the fuel consumption of Maruti products?

a.Extremely Satisfied
b.Satisfied
c.Neutral
d.Dissatisfied

4) Are you satisfied with the Safety and Comfort of Maruti products?
a.Extremely Satisfied
b.Satisfied
c.Neutral

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d.Dissatisfied
5) Are you satisfied with the Design?

a.Extremely Satisfied
b.Satisfied
c.Neutral
d.Dissatisfied

6) Are you satisfied with space available in Maruti products?

a.Extremely Satisfied
b.Satisfied
c.Nor Satisfied & Dissatisfied
d.Dissatisfied

7) Are you satisfied with Maintenance cost?

a.Extremely Satisfied
b.Satisfied
c.Neutral
d.Dissatisfied

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8) Are you aware about power steering present in Maruti products?

a- Yes
b- No

9) Your general perception about MARUTI.

a.Very Good
b.Good
c.Average
d.Bad

10) Do you want to give any suggestion about any change in the Maruti ?






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BIBLIOGRAPHY

Philip Kotler 12
th
edition Marketing Management
Kanishka Bedi 2
nd
edition Production and Operation Management
Karlo Automobiles (P) Ltd. Patna
www.marutisuzuki.co.in
www.automobile.com
www.business-india.com
www.maruti.com














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REFRENCES

In my projects I am thankful to the persons who advice me to work in proper way and show
me the correct path for that.I am highly oblige to my friends, seniors and my faculties
members who help me out for this hard task.

*Mr. RamKrishna Shankar(HR of the company)
*Mr. K.C. Gupta(Sales Manager)
*Mr. Vivek Mishra(Sales consultants)