Sudheer PRJCT 1

CHAPTER - I
This chapter seeks to describe the concept of marketing and

customer satisfaction, steps involved in creating customer satisfaction,
methods available to customer satisfaction and elements in customer
satisfaction
Introduction:Human wants are unlimited and respective in nature. Business

activities aim at acquiring of wealth, converting into desires forms making
the final product available for exchange for the satisfaction of human wants.
The activities fall under industry, commerce and trade these three batches
have one common function, the exchange function. This important and
powerful function is termed as marketing. Marketing occupies an important
position in the organization of business unit. Traditional view of marketing
i.e., that the consumer will accept whatever product the seller presents to
them. In this way, the main concern of the producer is to produce without
considering the choice of the behavior of the consumer. But this point of
view of marketing has changed. The modern concept may be centered on
the consumer produce but does not produce whatever he likes but whatever
consumer wants.
Marketing can be explained as a business function entrusted with
the creation and satisfaction of consumers to achieve the aims of business.
Thus the process of marketing includes:
Profit making by sales.
The presence of consumer.
Satisfaction of consumer by meeting his needs.
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The product should confirm to the requirements of the consumers.
Thus marketing starts and ends with the consumer. It is the chief
business function for solving of various marketing problems, needs insight,
experience and analytical ability. In order to understand the current meaning
of marketing, we have to understand different points of views openly there
are two angle from which can discuss the meaning of marketing.
Product Oriented view.
Customer Oriented view.
Product oriented view:
It is a traditional concept of marketing. The consumer basis this view
on the assumption, that the product whatever it will be acceptable. The
produce is concerned only with the production without talking into account
the choice is the behavior of the consumer. A few definitions supporting this
view are given below.
Marketing complies both buying and selling activities.
- Pyle
Marketing consists of those efforts which affect transfers in the
ownership of goods and services and provide for their physical distribution.
-Clark & Clark
Marketing is the performance of business activities that direct the
place of goods and services from producer to the customer or user.
2
- American Marketing Association

Adam Smith in his wealth of the nations held that consumption
is the sole end and purpose of all production and interest of the producer
ought to be attended to only so far as it may be necessary for promoting that
of the consumer. Under mercantile system, the interest of the consumer was
virtually sacrificed to that of the producer. They coincided production and
net consumption as the ultimate end deject of industry and commerce. It was
as tag when the role of marketing was ignored. With the down of industrial
revolution major chances took place.
There was a shift from agriculture to industry. The living standards of
the people rose with the development of transport and communications.
However no service efforts were made satisfy the wants of the consumers.
The above definitions of marketing are product oriented because they lay
more emphasis on the product rather than on the consumers. According to
them the marketing process comes to an end as soon as the product reaches
to the hand of the consumers. In fact the marketing is wider than that.
Customer Oriented view:Marketing is related to the needs of the buyer. Only such products are
bought products which can satisfy the wants and tastes of the customer.
Modern writers give more importance to the consumer.
To please the
consumer at the sales service are needed. Here we quote some of the well
known customer oriented definitions of marketing.
Marketing is the business process by which products are matched with
markets and through which transfer of ownership are effected.
-Cundiff and Still
3
Marketing is a total systems of interacting business activities designed

to plan,
price,
promote and distribute wants satisfying products and
services to present and potential customers.

-William. J. Stanton
These definitions suggest that marketing is considered as the
movement of goods and services from the source manufacturing to the
source of consumption . Marketing activities are directly connected with
the demand stimulating and demand fulfilling efforts of the enterprise. All
these activities are interested and interact with one another. Hence it can be
said Marketing is the managerial process by which products are matched
will markets and through which transfer of ownership are affected. The
marketing of services with markets to effects transfer of ownership is also
marketing.
An analysis of the above customer oriented definitions of marketing
being clearly the following points:Marketing is a system- a system of business activities Object of
action- wants satisfying goods and services the beneficiaries of which are the
present and potential household consumer (or)industrial users.
Marketing is designed to- plan, price, promote and distribute the
products with as manufactured of the enterprises.
A managerial function-marketing is one of the most powerful

functions.
It takes into the account the necessity of consumer oriented and
emphasis innovations at the production stage.
The supporters also point out that marketing is not only one activity
rather it is result of the interaction of consumer want completely, and
consumers satisfaction is the prime function of the marketing.
Elemennts (or) Functions of marketing:The functional approach of marketing consist of function is an act or
option or service by which original product and the final consumer are
linked together. sometimes it may not be possible to divide whole
marketing process into a few functions. We can group these various
functions of marketing into three major heads.
Merchandising functions.
Physical distribution function.
Facilitating functions.
Customer Satisfaction:Satisfaction depends on a products perceived performance in

delivering value relative to a buyers expectations.
It the product
performance falls short of the customers expectations the buyer is

dissatisfied.
If the performance is exceeds expectations the buyer is
delighted. Outstanding marketing companies go out of their way to keep

their customer satisfied. Satisfied customers make repeat purchases, and
5
they tell others about their good experience with the product. The key is to
match customer expectations with company performance smart company
aim to delight customer by promising only what they can deliver, then
delivering, more than they promise.
Customer satisfaction closely related to quality. In recent years, many
companies have adapted total quality management programs, designed to
constantly quality improve the quality of their products, services, and
marketing processes. Quality has a direct impact on product performance
and hence on customer satisfaction.
Expectations are based on the customers past buying experiences, the
opinions of friends and associates, and marketer and competitor information
and promises.
Marketer must be carefully to set the right level of
expectations, if they set expectations too low they may satisfy those who
buy but fail to attract enough buyers.
Various Steps Involved To Create High Customer Satisfaction:

Company can increase customer satisfaction by lowering its price or
increasing its service but this may result in lower profits.
Company might be able to increase its profitability in other ways,
such as by improving its manufacturing more in R&D
Company has many stockholders including employees dealers

suppliers and stockholders.
The company must operate on the philosophy that it is trying to
deliver a high level of customers satisfaction.
Methods of Tracking & Measuring Customer Satisfaction:

Companies use the following methods to measure how much
customer satisfaction they are creating.
Complaint and suggestions system.
Customer satisfactions surveys.
Ghost shopping.
Lost customer analysis.
Complaint and Suggestions System:Customer centered organization would make it easy for its
customers to deliver suggestion and complaints.
Many companies provide forms for guests to report their likes
and dislikes. Suggestion boxes, supply comment cards etc., with which
customers and inquire, make suggestions or complain.
These information flows provide these companies with many
good ideas and enable them to act more rapidly to resolve problems.
7
Customer Satisfaction Surveys:Company must not conclude that it can get a full picture of customer
satisfaction and dissatisfaction by simple running a complaint and
suggestion system.
Customer may feel that their complaints are minor, or they will be
made to feel stupid, or that no remedy will be offered.
Direct measures of customer satisfaction:

Periodic survey :
In this questionnaires or make telephone calls to a random sample of
their recent customers to find out how they fell about various aspects of the
companys performance and solicit buyers views on their competitors
performances.
Customer satisfaction can be measured in a number of ways.
Directly reported satisfaction
Delivered
Problem analysis.
Importance/performance ratings.
Repurchase intention.
Directly reported satisfaction:

It can be measured directly by asking :
Indicate how satisfied you are with service
Highly satisfied.
Satisfied.
Dissatisfied.
Highly dissatisfied.
In different.
Derived dissatisfaction:
Respondent can be asked as well to rate how much they expected of a
certain attribute and also how much they experienced.
Problem analysis:
Respondent to list any problems they have had with the offer to list
any improvements they could suggest.
Importance/performance ratings:
Ratings to rate various elements of the offer n terms of the importance
of each elements and how well the organization performed each element.
This method also help the company to know if it is under performing
an important elements and over performing on relatively unimportant
elements.
Repurchase Intention:
While collecting customer satisfaction data, it would also be useful to
ask additional questions to measure. This will normally be high if the
customers satisfaction is high.
A high positive word of moth score indicates that the company is
producing high customer satisfaction.
Ghost Shopping:
To gather a picture of customer satisfaction is to hire Persons to pose
as potential buyers to report their findings on strong and weak points they
experienced buying the companys and competitors products.
These ghost shoppers ca even pose certain problems to test whether the
companys sales personnel handle the situation well.
Lost Customer Analysis:

Companies should contact customers who have stopped buying or who
have switched to another supplier to learn why this happened.
Some cautions in measuring customer satisfaction:

The company had to spell out every element in detail, customers
would face a huge questionnaire. Companies should also note that managers
and sales person can manipulate their ratings on customer satisfaction. They
can be especially price to customers just before the survey. They can also try
to exclude unhappy customers from being included in the survey.
Some customers may want express high dissatisfaction (even if
satisfied) in order to receive more concessions.
10
CHAPTER II
The various purposes of this chapter are to define the significance
of the study, objectives and methodology employed. Besides, efforts are
also made to outline scope, limitations and presentation of the present
study.
Introduction:
The marketers responsibility ends with not only by designing and
launching of the products and services but also with the creation of customer
satisfaction and optimization of customer satisfaction. It reveals that the
consumer is the only person, who can determine the success and failure of
an organisation and he is the source to offer meaningful and reasonable
revenue to the organisation.
The
marketing
department
is
responsible
for
formulation,
implementation and evaluation of various marketing strategies in the battle

field i.e., market. Today the markets are well matured with large group of
manufacturers, buyers and also products. In this crucial juncture, the
marketers have to immensely involve in the process of maximizing customer
satisfaction because it is only the alternative to fight against the core
competitors.
A sound marketing policy is required for each and every organisation
to fulfill its basic objectives like market share, profit maximization and etc,.
In this connection, it is so important to keep the consumers for a long period
by satisfying their needs, wants and desires. Hence, the customer satisfaction
is not at all considered is an activity, but it is an unique filed to study and
evaluate.
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Significance of the study:

Consumer is king
Consumer is sovereign
The above two punch lines, states that the importance of consumer in
the existence of an organisation. The various business activities of an
enterprise resolve around the consumer. It reveals that the organisation is
accountable in implementation of different corporate strategies like
financial, marketing, operational, personnel etc., to reach the end-users i.e.
consumer.
Consumer behavior and satisfaction has been emerged as a separate
field of study by its unique features. The business policy of and organisation
directly or indirectly concentrates to gain knowledge over attitudes, interest,
opinions, believer and etc., of the end-users. However, the renewal, growth
and sustainability of a corporate house merely depends on the amount of
satisfaction delivering to its target markets. Even though, calculation of
customer satisfaction is difficult task, but the organizations have to keep on
make their attempts to produce the desired level of customer satisfaction.
With this back drop, the project trainee is very much interested to
study the customer satisfaction for the small passenger car segment of the
Maruti of Varun Motors Limited as his summer project topic.
12
Objectives of the study:

The chief purpose of the present study is to evaluate the satisfaction of
Maruti Brand owners. However, the detailed set of objectives are as follows:
To know the overall opinion of with e customers of Maruti.
To evaluate the value added services and its cost of Maruti products .
with the help of .
To examine the promotional and availability of .
Finally, to suggest suitable mechanical based on the findings for the
better performance of company and public at large.
Methodology & Sources of Data:

The study is empirical in nature. Therefore, the data have been
collected from both the scares as primary and secondary. The primary data is
collected with the help of a structured questionnaire which can be seen in
appendix. The secondary data is collected from files, journals and
magazines, articles and other printed material.
Selection of the Sample:Sample is a small unit, which represents the universe. To attain the
objectives, the project trainee has prepared a questionnaire and it is
distributed among the sample i.e., .. in ..
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Scope of the Study:

The present survey has been conducted only in the city of by
considering judgment of sampling and no effort has been made to collect
the data above the sample. The findings, which are the outcome of the
survey, are the opinions of subscribers. Hence, the present findings and
suggestions are only meant for ..
Limitations of the Study:
The present study is suffering from the following limitations.
The survey is conducted only in .. and the findings and
suggestions are confined to only .. market and not be
gernalised to the other market.
The findings are based on the opinion of the respondents and the
respondents opinion may be biased.
Tools used for analysis: The collected data has been analyzed with the help of only
percentages.
Percentage = No.of Respondents of each expression
Sample size
14
x 100
CHAPTER-2
PROFILE OF PASSANGER CARS IN INDIA
The 4 wheelers industry is passing through is passing through
a critical but interesting phase. For many years, it was growing
continuously but the turning point came in 1996 Feb., when it
started slowing down. The impact was rally felt in the next year
when the overall growth was hardly 10%. This was also possible
only because, the cars segment showed a healthy growth of 50%.
The net result is that is that Maruti cars now account for 53% of
the 4 wheelers market in April, May & June 2002.
The Varun Motors Ltd., mainly is the only dealers of the mature
Branded cars.
NEW SEGMENTS
A step through segment like Maruti ZEN, VERSA and WAGON R.
DRAMATIC CHANGES
15
The new products have contributed to 35% of the growth and

helped the producers improve their bottom line. The coming
years will see increasing competition due to the priority in
products in products and prices. The only differentiate will be
technology, quality, product range and service.
Imaginative market will emphasize relationship building and
customer satisfaction. New techniques such as direct marketing
and institutional sales are being explorer by all. Some of them
are taking the vehicle actually to the customers door step. Now
the customer is king.
Luxury cars, Passenger cars & Multi purpose / Commercial cars.
Product range from MUL had offers different cars of all these
classification, i.e., Baleno & Esteem Cares in luxury days, M800, ALTO, ZEN, WAGON-R falls in passenger cars, while OMNI,
VERSA & GYPSY for multi purpose / commercial cars.
According to MUL managing director Jagdish Khattar, Swift has
been positioned on the aspirational plank for young Indians.
16
PROFILE OF MARUTI CARS

HISTORY:
Maruti Udyog Limited (MUL) was established as a private limited
company in India on February 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. MUL is wholly owned by the Govt. of India at the time of
its birth.
Suzuki Motor Company was chosen from seven prospective
partners world wide. This was due not only to their undisputed
leadership in small cars but also to their commitment to actively
bring
to
MUL
contemporary
technology
and
Japanese
management practices (which had catapulted Japan over USA to

the status of the top auto manufacturing country in the world)
MUL was classified in the Public Sector as long as the equity of
Government of India remained over 51% . A license and a Joint
Venture agreement were signed between Govt. of India and
17
Suzuki Motor Company (now Suzuki Motor Corporation of

Japan) in Oct 1982, with Suzuki Motor Corporation (SMC)
acquiring 26% of the equity.
This newly formed organisation were given the primary objectives

of:
1. Modernizing the Indian Automobile Industry by bringing in
the latest technology
2. Production of fuel- efficient vehicles to conserve scarce
resources.
3. Production of a large number of motor vehicles which is
necessary for economic growth.
Maruti created history by going into production in a record

13 months.
18
On 14 December 1983, the then Prime Minister of India. Mrs.

Indira Gandhi, released the first Vehicle for sale by handing over
the keys of a Maruti 800 to Mr. Harpal Singh of Delhi.
Maruti exceeded the volume targets, 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 cat manufacture in Asia.
Outside Japan and Korea, having produced over 4 million
vehicles by April 2003. Maruti revolutionized the way
Indians
VISION , VALUES & ETHOS OF MUL:

MUL Vision is to be a leader in the Indian Automobile Industry,
Creating
Customer
Delight
and
Shareholders
Wealth,
transforming Maruti to be A pride of India.

The Core values of MUL are customer Obsession, Fast, Flexible
and First Mover, Innovation and Creativity, Networking and
Partnership Openness and Learning, Quality Systems and
Consumer Satisfaction through Continuous Improvement of our
19
Products and Services by following PDCA (PLAN-DO-CHECKACT) in all functions of our organization.
At Maruti, the approach to quality is in keeping wit the Japanese
practice build it into the product. Technicians themselves
inspect the quality of work. Supervisors educate and instruct
technicians to continually improve productivity and quality. The
movement of quality indicators is reviewed in weekly meetings by
the top management
MUL believes that its employees are its greatest strength and
asset. It is this underlying philosophy that has molded the
workforce at Maruti into a team with common goals and
objectives. The Employee- Management relationship is therefore
characterized by :
o Participative Management .
o Team work & Kaizen1 .
o Communication and information sharing.
o Open office culture for easy accessibility
20
To implement this philosophy, several measures have been

adopted like, a flat organizational structure . There are only three
levels of responsibilities ranging from the Board of Directors,
Division Heads to Department Heads. Other visible features of
this philosophy are an open office, common uniforms (at all
levels),and a common canteen for all .
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.
DIRECTORS ON THE BOARD:

MUL is a Board-managed company. Currently the Directors on
the Board are:
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Mr. Shinzo Nakanishi, Managing Director

Mr. Jagdish khattar, managing Director
Mr. Junzo Sugimori, joint managing Director
Mr. Shinichi Takeuchi, Joint Managing director
Mr. Kinji Saito, director ( Marketing and Sales )
Mr. Osamu Suzuki. Director
Mr. RC Bhargava, Director
Mr. S V Bhave, Director
The Independent Directors on the board of Maruti are:
Mr. Kumaramangalam Birla, chairman, A V Birla Group
Mr. Amal Ganguli. Former Chairman, Price Waterhouse
coopers, India
Ms.
Pallavi
Shroff,
Senior
Partner,
Amarchand
and
Mangaldas and Suresh A Shroff and co

Mr. Manvedndra Singh Bnamga, chairman Hindustan Lever
Ltd. ( HLL )
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SMC increased its equity to 40% in 1989. In 1992 Maruti ceased

to be a government company. As SMCs equity holding went up to
50% in 2002, SMCs share went up to 54.2% converting MUL
into a subsidiary of SMC. The Govt. of India, s holding became
18.3% subsequent to an offer for sale of 27.5% of the companys
equity to the public including institutional investors.
To have a clear-cut idea regarding the latest share holding attern,
please
refer
to
the
Appendix-A.
AWARDS AND ACHIEVEMENTS:

In 2004, Maruti closed the financial year 2003-04 with an
annual sale of 472122 units, the highest ever since the
company began operations 20 years ago.
In 2003, Maruti Udyog Ranks Highest in Customer
satisfaction with dealer service in India for the fourth
consecutive year in the J.D Power Asia pacific 2003
India customer satisfaction index (CSI)Study. A copy of
the satisfaction index can be viewed in appendix-B.
In 2003, Maruti has won the first place in Excellence in
suggestion
scheme
contest
23
2003
which
is
the
6th consecutive award won in as many years. India

National
suggestion
schemes
association
(INSSAN)
organizes this contest. Since 1998 Maruti has won this a

ward 10 times.
In 2002, Marutis Quality Management System of its press
shop & associated functions ( collectively ) termed as press
function)
got
certification
for
conformance
to
the
requirements of TS 16947 : 20021standard. A copy of the

ISO TS 16949: 2002 certificate received by Maruti true
value (buying. Selling or exchange of pre-owned cars),
Maruti Finance (car financing), Maruti Insurance and N2N
(corporate lease & Fleet management).
In 2001 2002 Maruti launched its new businesses.
Maruti true value (buying, Selling or exchange of preowned cars), Maruti Finance (car financing), Maruti
insurance and N2N (corporate lease & Fleet management).
In 2001 Maruti Udyog ltd, became one of first automobile
companies anywhere in the world to get an ISO 9000:2000
certification. AV Belgium, global auditors for international
Organization for standardization ( ISO 0 certified Maruti
after a four day long audit, covering varied parameters like
customer focused organization, leadership, involvement of
24
people,
process
approach,
system
approach
to
management, continual improvement, etc. A copy of the I

so 9000:2000 certificate received my Maruti can be viewed
in appendix C.
In 1999, central board of excise & customs awarded Maruti
with Samman Patra for contribution to exchequer and
being an ideal tax assesses.
In may 1995, Maruti got ISO 9002 certification. The audit
for
this
covered
quality
assurance
in
production,
installation, marketing and scales as well as after saies

services, we were also one of the first companies in the
world to pioneer I so 9000 certification for our dealers.
In
2004
Maruthi
Suzuki
was
No.1
in
Customer
Satisfaction, No.1 in Sales Satisfaction, No.1 in Product

Quality (Esteem and Alto) and No.1 Product Appeal
(Esteem and Wagon R)
No.1 in Total Customer Satisfaction (Maruti 800, Zen and
Esteem)
Our market share grew from 42% to 54% in the competitive
A2 segment (with Wagon R, Zen and Alto)
25
Our overall sales increased by 23%. The Alto became Indias

new best-selling car.
Business World ranked us among the country five most
respected companies.
Business World ranked us the countrys most respected
automobile company.
Declared Manufacturer of The year by CNBC.
Business Today AC Nielsen ORG-MARG declared us one
of Indias Greenest Companies.
Hindustan Times Power Jobs proclaimed us the company
with the Most Innovation Human Resource Practices. And
much more.
26
TRANSFER
OF
TECHNOLOGY
Every minute two vehicles roll out of the Maruti Plant. It is

therefore imperative that the transfer of contemporary technology
from 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 have been trained under this
program.
27
PROFILE OF VARUN MOTORS Ltd
HISTORY
VARUN group commenced its Hyderabad operations is 2nd Feb.,
1996 with Maruti Udyog Ltd., as a Franchisee which is new
popularly known as VARUN MOTORS Ltd.
Mr. V.PRABHU KISHORE found the Varun Group in 1992 at
Hyderabad by establishing. Bajaj Auto Dealership, by a monthly
sale of 200 two and three wheelers initially. Now, it has reached a
monthly sales vol. Of 2500 units. By virtue of excellent
progressive performance at Hyderabad. Varun is awarded
another dealership at Vijayawada during the year 1999. Now, it
has seven outlets in Hyderabad and Vijayawada areas.
28
The Varun Group took Maruti Udyog Ltd., dealership in 1996

with one of Indias largest and most modern automobile
showrooms, measuring 18000 sft. On account of good work at
Hyderabad. Maruti awarded Hyderabad sales and service outlets
to Varun Motors Ltd., As on 31st March, 2002 Varun Hyderabad
Dealership sold 7856 cars and Varun Hyderabad. Dealership
sold 13165 cars. Now it has 7 outlets in Hyderabad.
Varun Group is also involved in the construction of residential
and office buildings in Hyderabad, Vijayawada, Visakhapatanam
and Bangalore. So, far 5 lakhs sft. of residential and office
accommodation has been successfully built and handed over to
the buyers by associated companies namely, Varsha Builders Pvt.
Ltd., and Continental Builders.
Varun Group latest venture is in the fast growing mobile
communications sector. It has taken dealership of HUTCH., and
now has outlets in Hyderabad and Visakhapatanam.
The Varun Group offers many incentives and facilities to its
Workgroup such as in house training, Bonus, Monetary
incentives for attendance, performance ;and target achievement.
It conducts get together regularly to review and set targets for the
group and also to give prizes to Excellent Employees in sales,
spares and service. Every employees birthday is celebrated in
29
the showroom. A novel housing scheme is in place to provide

housing to employees with repayment spread over 10 years, with
30% concession of basic flask cost.
As of now the Varun Group is engaged in such business of
vehicles,
hire
purchase,
construction,
transportation
and
Dealership of mobile phones. It has over 1000 employees on its

pay roll with an annual turn over of Rs. 250.00 crores with
outlets in Hyderabad and Vijayawada. It is targeting to achieve a
turnover of Rs. 450.00 crores for the current year, making it one
of the fastest growing companies in the state.
The Siripuram Branch of Varun Motors is the Main Branch,
which was first established in VSP City introduction the products
manufactured by Maruti. Varun Motors has three workshop in
Visakhapatanam (Local) city.
The Workshop in Visakhapatanam (Local) city is at:
1. City workshop located at Vuda Childrens theatre.
2. Auto Nagar workshop located near by SRMT.
3. Highway work shop located at beside Coco Cola.
Brief history of VARUN :
30
Our Founder and Managing Director, Mr. V. Prabhu Kishore has

over 35 years of experience in Automobile business of top OEMs in
India.
The start of automobile business for Mr. Prabhu Kishore began in
1975 with Padmaja Commercial Corporation, a firm founded in 1950
by his late
father V.K.R.Chowdary.
In 1988, Mr. Kishore established his own enterprise VARUN

FINANCE (Auto finance) which marked the birth of the Varun
group.
Sales & Service statistics of Varun at the end of 31st March 2010 :-
LOCATION
NO.OF
NO.OF
SALES
SERVICE
NO.
SHOW
WORK
VOLUME
VOLUME
VEHICLES
ROOMS
SHOPS
(ANNUALLY)
(ANNUALY)
FINANCED
10218
89000
7538
Nijamabad
880
7608
656
(maruti)
Vizag
3855
55546
2226
(maruti)
Vijayawada(
2686
33430
15357
maruti)
Vizag
29
26
22424
119899
15357
( bajaj)
Vijayawada(
22
21
17694
97180
12522
bajaj)
Varun JCB
Mahindra
1
2
2
2
301
523
7960
3052
286
497
Hyderabad
(maruti)
navistar
31
OF
Social Responsibility :
A modern medical diagnostic centre in memory of the M.D.s parents is

serving over 114 poor people a day at Vizag, in addition to an orphanage
with 18
children
at
Vijayawada.
Varun Industrial Training Centre(I.T.C): We train 50 boys in diesel

mechanic and body shop skills over a period of one year and they are
predominantly absorbed by Varun Group for their various divisions.
32
Dealership Achievements :
The management practices at Varun complements the pursuit of perfection.
The speed of adaptation to change and commitment to growth largely
boosted the operational efficiency of the organisation. Behind the success of
Varun Group, lies the saga of team work, empowerment, aggressive
marketing, discipline, higher levels of sensitivity towards customers and
excellent
HR
practices.
Our dealership practices and performance have made us the largest

automobile dealer in A.P and one of the top dealers for Bajaj and Maruti in
the country. Varun, by far has the largest net-work and own automobile
infrastructure in A.P. Below are few of our dealership achievements at the
national level.
Varun Motors was awarded Maruti PLATINUM award Eight times
consecutively for the past 10 years in Balanced Scorecard ( Platinum
award is the highest rated award in Maruti)
Adjudged Indias No.1 Maruti dealer in Balanced Scorecard in
2003-2004.
Committed Customer Service got us the ISO 9001 2008
Certification.
Govt of AP awarded "Best dealer award for payment of tax (VAT) &
Compliance to APVAT provisions in2001-02 and 2006-07".
33
Varun's Success Mantra :

At Varun, the management interacts directly with customers, and
communication is seen across all levels of management, to increase
operational efficiency.
We follow best practices like Customer Education Meet, Exclusive
Test Drive Team and few other HR practices have been adopted by
Maruti Suzuki and other dealerships across the nation.
We empower people and truly believe in delegation with discipline.
Strong Systems and adherence to the same from M.D. to at tender.
Many innovative and flexible in-house finance schemes have raised
the affordability levels of customers.
We focus on total customer satisfaction.
34
Serving the customer at his door step with workshops expansion.

Rural marketing with mobile showrooms, Finance, and service backup.
All vehicle related Services under one roof.
35
MASS:
Maruti Authorised Service Stations

1. Madhuri located at Gurudwara
2. Hyderabad Auto Scans located Begumpet Junction.
CUSTOMER FEEDBACK SYSTEM

o At the time of delivery a customer feedback card
(postage pre paid) must be handed over to 10% of
customers for his feed back.
o Once the feed back card is received from the
customer, data must be punched in a software
system which is to be provided by the Maruti Udyog
Limited by the dealer.
36
o At month end analysis from the system should be

reviewed internally and necessary countermeasures
should be taken for improvement in weak areas.
o Analysis for the month must be sent to Regional
Office by 3rd of next month.
PROMOTIONAL ACTIVITIES IN VARUN MOTORS

The promotional activities adopted by Varun Motors are:
o Advertising in News papers
o Free Campaigns
o Test Rides
o Mileage Contents
o Loan Melas
o Gift Schemes
o Hoarding and Wall Paintings
o Sponsoring Youth Events
37
Promotional expenses have been borne by both Varun Motors in

advertisement cost.
SERVICES OFFERED
o The Services offered to the customer in Varun Motors
are:
o Three free services and Paid services after sales of
Cars.
o Finance through Sundaram Finance company and
Maruti country wide finance company.
o Free check up campaigns.
o Demonstrations for new products.
o Acceptance of warranty claims.
WORKING TIME
Working hours in Varun Motors are 8 hours per day commencing
from 9 AM to 7.00PM with two hours break for Lunch (1 PM to
3.00PM)
38
ORGANIZATION CHART
CARS & ITS TECHNICAL SPECIFICATIONS
Customers
in
market
have
differences
in
buying
habits,
differences in the way the good s or service is used and also

possess different motives for buying one. Hence in such an hour
of need its necessary for the marketer to segment the market.
Market
segmentation
allows
managers
to
visualize
their
prospective customers in designing a marketing mix and also to

concentrate their resources on only one or a few market
segments.
Hence Maruti manufacture as nearly as 10 different models of its
cars to suite the various tastes and preference sets of its
customers. Each model is in turn having a number of various
tastes and flexibility, safety and other desired preferences. Thus
on the whole it turns out to be something more than a 100
39
variants of cars.The car Market has been segmented into 4

smaller, internally homogenous groups.
A Segment: This focuses on the middle class people. The
models designed for this segment are:
Maruti 800
Maruti Omni
40
B Segment: this focuses on the upper middle class people.

The models designed for this segment are;
Maruti Alto
41
Maruti wagon R
Maruti Zen
C Segment: this focuses on the lower upper class people.

The models designed for this segment are;
42
Maruti Versa
Maruti Gypsy
43
Maruti Esteem
Maruti Baleno
44
D Segment: This focuses on the upper class people, the

model designed for this segment is;
Grand Vitara
PRODUCT AVAILABILITY AT VARUN MOTORS
45
Varun Motors has single, franchise that is Maruti Cars. Maruti

car manufacture various types of Cars they are:
1. M 800
2. OMNI
3. ALTO
4. WAGON R
5. VERSA
6. GYPSY
7. ZEN
8. ESTEEM
9. BALENO
10.SWIFT
11. A-STAR
12.ERTIGA
13.RITZ
Key Credit Considerations:

Credit Strengths:
46
Strong credentials as the largest dealer of passenger vehicles of Maruti

Suzuki India Limited (MSIL) in Andhra Pradesh (AP)
Wide network with more than thirty showrooms, service centers and true
value outlets
Strong growth in revenues in the last two years; the operating income
increased from Rs 498.6 crore in FY2009 to Rs 766.9 crore in FY2011 on
the back of increased geographic reach of VMPL coupled with healthy
sales growth of MSIL
Healthy demand outlook for passenger vehicle industry in the long term
owing to relatively low-penetration levels, favorable demographic profile,
rising disposable income levels, buoyant economic growth and strong
demand from smaller towns and rural areas
Credit Concerns:
Regional sales concentration with sales derived from only AP; however the
company has presence across major cities of AP - Hyderabad, Vijayawada
& Vishakhapatnam.
The company has received the BharatBenz dealership for Andhra and
Rayalaseema regions of AP in 2011.
Moderate financial risk profile as characterized by gearing of 2.46 times as
on 31 Mar 2011.
Stable but low profitability as margins on vehicles, spares, service and
accessories are all controlled by MSIL; however the company receives
47
income from insurance commission, used car business, and finance

payouts.
Rating Rationale:
The assigned ratings factor in strong credentials of VMPL as the largest
dealer of passenger vehicles of MSIL in AP; wide network with more than
thirty showrooms, service centers and true value outlets; and strong growth
in revenues in the last two years with the operating income increased from
Rs 498.6 crore in FY2009 to Rs 766.9 crore in FY2011. The ratings
favorably factor in the healthy demand outlook in the long term for
passenger vehicle industry owing to relatively low-penetration levels,
favorable demographic profile, rising disposable income levels, buoyant
economic growth and strong demand from smaller towns and rural areas.
However, the ratings are constrained by stable but low profitability as
margins on vehicles, spares, service and accessories are all controlled by
MSIL; regional sales concentration with sales derived from only Andhra
Pradesh; and revenue concentration on a single principal. The ratings are
further constrained by moderate financial risk profile as characterized by
gearing of 2.46 times as on 31 Mar 2011 and interest coverage ratio of 3.6
times for FY2011 and high competitive intensity from dealers of other
OEMs resulting in increased pressure to pass on price discounts to
customers.
Company Profile:
Incorporated in 1996, Varun Motors Pvt. Ltd (VMPL) is into the business
of automobile dealership. The company has Maruti dealership for 11
48
districts of AP including Hyderabad, Visakhapatnam, and Vijayawada

cities. The company has 12 showrooms, 15 workshops and 14 true value
outlets. The company sells more than 18000 cars and services more than a
lakh of cars each year. VMPL is part of the Varun Group, which is into
automobile dealership and real estate.
49
Business and Competitive Position:

Strong credentials as the largest dealer of passenger vehicles of Maruti
Suzuki India Limited (MSIL) in Andhra Pradesh (AP) with 38% market
share VMPL is an authorised dealer for Maruti in the passenger car segment
for 11 districts of AP covering Hyderabad, Ranga Reddy, Medak, Nalgonda,
Mahabubnagar, Nizamabad, Vijayawada, Khammam, Visakhapatnam,
Vizianagaram and Srikakulam districts. In addition to this, VMPL is also
involved in servicing of vehicles, pre-owned vehicle sales and sales of spare
parts/accessories. With twelve showrooms and a turnover of Rs 767.9 crore
in 2010-11, VMPL is a large sized dealer. Over the years, the company has
established a strong position in AP and is the largest Maruti dealer in AP
accounting for around 38% of Maruti sales in AP.
Vehicle sales main revenue driver for VMPL accounting for 87% of the
gross income New car sales remain the major source of revenues for the
company, contributing to almost 87% of revenues per annum. VMPL has
been witnessing a healthy growth in its sales volumes during the last three
years. In 2010-11, the company has been able to record an increase of 20.8%
y-o-y with recovery in the consumer markets, as against Marutis sales
growth of 30.1% y-o-y. The sales growth of VMPL is lower than that of
Maruti on account of intense competition from other Maruti dealers. Swift
remains the highest selling model for the company, contributing ~33.9% of
its revenues, followed by alto with ~29.4% contribution in the last two years.
In line with Maruti sales trend, the share of Omni and Maruti 800 has
witnessed a decline whereas Swift has picked up.
Wide sales and service network with more than thirty outlets spread across
Andhra Pradesh The company has 12 showrooms spread across AP covering
Hyderabad (5), Vishakhapatnam (2), Vijayawada (2), and 1 each in
50
Srikakulam, Nizamabad and Jaggaiahpet; 15 workshops spread across AP

covering Hyderabad (6), Vishakhapatnam (3), Vijayawada (3), and 1 each in
Srikakulam, Vizianagaram, and Nizamabad; 14 true value outlets spread
across AP covering Hyderabad (6), Vishakhapatnam (3), Vijayawada (2), and
1 each in Srikakulam, Vizianagaram, and Nizamabad.
Further, the total area of the various showrooms, service centers and true
value outlets is 914,500 sft of which 873,000 sft is owned by the group
companies resulting lower rental costs for the company. This corresponds to
approximately 95% of the total area under various outlets of VMPL. Wide
sales network aiding sales growth despite intense competition among
dealers; new 3S outlet opened at Nanakramguda, Hyderabad Intense
competition amongst dealers and the OEM control over dealer margins has
resulted in thin margins for the industry. Despite healthy volumes, continued
competitive threats have resulted in VMPL having to pass on discounts to
the end customers. In Hyderabad, Maruti has 15 showrooms of which
VMPL has 5 showrooms; in Vishakhapatnam, VMPL has 2 showrooms out
of the 3 Maruti showrooms with the other showroom opened only in Mar
2011 and in Vijayawada, VMPL has 1 showroom out of 2 Maruti
showrooms.
The company has recently added a 3S outlet at Nanakramguda in
Hyderabad with a total capital expenditure of about Rs. 17 crore. The
expansion is funded by a term loan of Rs 12 crore and remaining from
internal accruals. The outlet is opened in the month of August 2011 and
is located in the middle of the IT hub located at Gachibowli. The service
center has a capacity to service 200 cars per day and is one of the largest
MSIL service outlets in India. Additionally, the company has plans to
51
open one more 3S outlets in Vishakhapatnam. With these new

showrooms, the company will have five Maruti showrooms in
Hyderabad and four Maruti showrooms in Vishakhapatnam which is
likely to benefit the company in improving its market share further. Non
sales income is driven by vehicle servicing income and commission
received from MUL.
Around 50% of the non sales income is contributed by vehicle servicing in
FY2011 which has increased from 35% in FY2006 in line with growing
service network of VMPL. The commission and incentives received from
MUL contributed around 30% of the non sales income which improved
consistently from 23% in FY2009. The commission and incentives from
MUL include margins on vehicle sales; incentives from Maruti Achievers
ICRA Credit Perspective Varun Motors Private Limited ICRA Rating
Services.
Club: incentives from MUL Balanced score card (platinum dealer); retail
and wholesale incentives on achieving sales targets; warranty claims;
interest on MUL dealership reserve fund. The other income contributed
around 20% of non sales income in FY2011.
The other income includes payouts from financiers; insurance payouts;
handling charges etc. Future capital expenditure plans The company has
received the dealership for BharathBenz in the current financial year
covering Andhra and Rayalaseema region of Andhra Pradesh which covers
13 districts. The company plans to start 3S outlets for BharatBenz at
Vishakhapatnam, and Vijayawada initially. BharatBenz is the brand of trucks
manufactured and marketed in India by Daimler India Commercial Vehicles
52
Private Limited (DICV), a wholly owned subsidiary of Daimler AG. It

produces trucks in the range of 6 - 49 ton.
Financial Performance:
Healthy growth in revenues at a CAGR of 21.5% in the last 5 years with
improvement in operating margins The operating income increased at a
CAGR of 21.5% between FY2006 and FY2011. The operating income
increased from Rs 289 crore in FY2006 to Rs 767.9 crore in FY2011 on the
back of increased geographic reach of VMPL coupled with healthy sales
growth of the principal, MSIL. The operating margins gradually improved
from 1.53% in FY2005 to 2.10% in FY2011 on the back of increased scale
of operations and increasing share of service income and spare sales wherein
the margins are better than vehicle sales. The net profit margins improved
marginally in the last two years on account of improvement in operating
margins. Low working capital intensity however increased in FY2011 on
account of increased inventory. The working capital intensity as reflected by
NWC/OI is low at 7% for FY2011. However, the working capital
requirements of the company have increased over the past years on account
of increased sales outlets. As per MSIL, the company is expected to maintain
one month of inventory.
Though the inventory days were lower at 16 days in FY2010 on account of
supply constraints at Marutis end, the inventory days increased in FY2011
to 34 days increasing the working capital requirements. However, the overall
working capital requirements reduce on account of additional booking
advances from customers Increased gearing levels on account of increasing
working capital borrowings and moderate coverage indicators on account of
thin margins as is the case in auto dealership industry The gearing increased
from 1.90 times as on 31 Mar 2010 to 2.46 times as on 31 Mar 2011 on
53
account of increased working capital borrowings. The total debt level

increased from Rs 47.52 crore as on 31 Mar 2010 to Rs 75.65 crore as on 31
Mar 2011 with short term debt (including working capital limits) accounting
for Rs 57.85 crore as on 31 Mar 2011. The working capital requirements are
met through utilization of CC limits and trade advances.
The term loans accounted for Rs 14.39 crore as on 31 Mar 2011 and the
loans were taken to fund the fund the construction of outlets. Increase in
total debt levels along with thin operating margins resulted in moderate
coverage ratios. However, with improved margins in FY2011, the coverage
ratios improved marginally with interest coverage ratio improving from 3.10
times in FY2010 to 3.64 times in FY2011. March 2012
Annexure I: Rating Amount in Rs crore

Fund Based Limits
80.84
Rating Action
[ICRA]BBB
Non-Fund Based Limits

Unallocated Limits
assigned
[ICRA]A2 assigned
[ICRA]BBB
(Stable)/
20.00
1.16
(Stable)
[ICRA]A2 assigned
54
55
ACHIEVEMENTS
AWARDS RECEIVED BY VARUN MOTORS Pvt Ltd.
1. The Main award is got by Government of Andhra Pradesh
Best Sales Tax Payer in Last Year.
2. And Second one is highest sales achiever out of 20 dealer
Maruti 800
Its the single choice when it comes to a value for money car. It
has won the title of the Best Economy Car in the NFO AA 2002
CS Study.
Major Variants:
o Bharat I Standard.
o Bharat II Standard.
56
The Mc Phercon strut suspension in every Maruti 800 gives a

smooth ride even over the roughest roads. Slim dimensions and
tight
turning
radius
of
just
4.4m
guarantee
amazing
maneuverability, making it easier to negotiate sharp corners,

narrow lances and park in even tighter spaces. The high mount
stop lamp, collapsible steering column, rear seat safety belts and
side impact beams brings all the safety one looks for.
Specifications:
Dimensions
Miscellaneous
Overall Length: 3335mm Engine Type: 4 stroke cycle, waterOverall Width: 1440mm
cooled SOHC (1C2V).
Overall Height: 1405mm No. of Cylinders: 3

Seating Capacity:4 persons. Breaks Front/Rear Disc / Drum
Laden Weight: 1000Kg. Steering: Rack & Pinion.
Tyre size: (Radial) 145/70 R-12.
Fuel Tank Capacity:30 Liters. Min. Tuning Radius: 4.4 m.
Price list update as on 25th May 2006

57
at Vijayawada
Variant
Non Metallic Price
Metallic
AC Bharat III
2,39,873
2,42,534
Std. Bharat III
2,17,261
2,19,922
Maruti Omni
Its the Picnic, weekend party and adventure trip car. Fun solutions for
your entire family.
Major Variants:
Cargo LPG.
Omni CNG.
Bharat II 8 / 5 Setter.
Maruti omni is built up with the MPFI engine, which meets all
the stringent euro II emission norms. Ample luggage space,
headroom & legroom make long rides comfortable. Reclining
front seats with adjustable head restraints let you relax
completely. Navigating through congested city lanes is now a
58
childs play because of the tight turning radius of only 4.1 m.,
and this is backed up with all the necessary safety features.
Specifications:
Dimensions.
Miscellaneous.
Overall Length: 3370mm Engine Type: 4 stroke cycle, waterOverall Width: 1410mm
cooled SOHC (1C2V).

Seating Capacity:5 or 8 per. Breaks Front / Rear. Drum / Drum
Approx. weight: 740Kg. Steering gear box: Re-circulating,
Tyre size: 4.50-12-6PR ULT. Ball and nut type.
59
Fuel Tank Capacity: 30 Liters. Min. Tuning Radius: 4.1 m.

at Vijayawada
Variant
Non Metallic Price
Metallic
Cargo Bharat III
2,21,394
2,24,055
Ambulance Bharat II
2,81,732
2,81,732
5 Str Bharat III
2,41,745
2,44,406
8 Str Bharat III
2,43,651
2, 46,516
Cargo LPG Bharat II
1,99,412
2,01,879
Omni LPG Bharat II
2,49,209
2,51,870
Maruti ALTO
Its the 16 bit computer controlled Lets Go car. It has been credited
as The car of the year 2001 by business standards motoring
organiztions.
Major Variants:
o Alto Bharat II.
60
o Alto LX Bharat II.

o Also spin LXIBharat II.
The electronic power steering uses computer controlled sensors
that take into account speed, driving style and road condition
thus giving you a smooth ride, which is backed up with the most
powerful and effective air-conditioning system that keep you cool
and comfortable during the hottest summers also. Alto comes
packed with active & passive safety feature like multiple crumple
zones that ensure maximum safety.
Specifications:
Dimensions
Miscellaneous
Overall Length: 3495mm Engine Type: FC Engine,.4valves per

Overall Width: 1495mm
cylinder MPFI

Seating Capacity: 4 persons. Breaks Front / Rear. Disc / Drum
Laden Weight: 1165Kg. Steering: Rack & Pinion.
Tyre size: (Radial) 145/80 R-12.
Fuel Tank Capacity:30 Liters. Min. Tuning Radius: 4.6 m.
61

at Vijayawada
Variant
Non Metallic Price
Metallic
LX Bharat III
2,78,332
2,81,971
LX Bharat II
2,74,391
2,78,030
LXi Bharat III
2,98,005
3,01,645
LXi Bharat II
2,94,065
2,97,704
Std Bharat III
2,42,346
2,45,986
Std Bharat - II
2,38,406
2,42,045
Maruti Wagon R
Its the car with a positive all round view, a high driving position
and modular space inside.
Major Variants:
62
Wagon R AX minor
Wagon R LX
Wagon R VXI
Wagon R LXI
The
excellent
electric
power
steering,
aid
parking
speed
maneuvers and greatly improved quality levels to give you a

pleasant surprise tight now one looks for. The automatic 3-speed
gearbox provides an excellent gearing ratio. Wagon R is designed
to deliver an ideal combination of style, power & Comfort of a
first class airline seat. Its got an excellent fuel efficiency ratio of
15.15 km/l.
Specifications:
Dimensions.
Miscellaneous.
Overall Length: 3195 mm Engine Type: 4 stroke cycle, waterOverall Width: 1395 mm cooled SOHC (1C2V).
63

Seating Capacity:4 persons. Breaks Front / Rear. Drum / Drum
Approx. weight: 1040Kg. Steering: Rack & Pinion
Tyre size: (Radial) 145/70 R - 12.
Fuel Tank Capacity: 30 Liters.

at Vijayawada
Variant
Non Metallic Price
Metallic
AX Bharat III
4,80,766
4,84,405
LX Bharat III
3,45,713
3,49,352
LX Bharat II
3,32,821
3,36,461
VXi Bharat III
3,91,326
3,94,965
VXi Bharat II
3,78,435
3,82,074
VXi with Air Bag & ABS
4,24,370
4,28,010
LXi Bharat III
3,66,969
3,70,608
Lxi Bharat II
3,54,078
3,57,717
64
Maruti Versa
Its van-like car or car like van. Its the tallest of all Maruti vehicles.
Load carrying flexibility is very good.
Major variants:
Versa-DX /DX2
Versa SDX
Versa STD 5-seater
The versa is expected to create a new market segment between
utility vehicles like the Quails and sedans like the Esteem. The
excellent twin A.C. with separate controls provides all round
uniform cooling. The flip folding seat in the third row creates
options for luggage or passenger space. True response electronic
power steering provides a fatigue free driving. Also the Diagnostic
breakdown system aids in the hour or need.
Specifications:
65
Dimensions.
Miscellaneous.
Overall length:
3675 mm Engine Type: 4-stroke cycle, water
cooled
Overall width: 1475 mm
SHOC,MPFI in line 4 drum
Overall Height: 19055mm No. of cylinders: Rack& pinion power

assisted.
Seating capacity 8 persons. Breaks front /rear.
Laden weight: 1585Kg.
Tyre size: 155/80 R-13 LT.
Fuel tank capacity; 40vlitres.

at Vijayawada
Variant
Non Metallic Price
Metallic
DX 5S Bharat III
4,19,577
4,23,217
DX Bharat III
4,19,577
4,23,217
DX2 - 5S Bharat III
4,57,417
4,61,056
66
DX2 Bharat III
4,57,417
4,61,056
Std Bharat III
3,46,184
3,49,824
Maruti Gypsy
Its the car for altitudes and attitudes. Its versatile four wheel drive
system can sustain knocks and keep running on rugged terrain.
Major Variants:
Gypsy soft Top 1.3
Gypsy Hard Top 1.3
The Gypsy King is real adventure gear. Superb maneuverability,
Smooth handling and raw energy packed into a sleek yet rugged
frame.
Whether
ploughing
through
dirt
track,
climbing
formidable terrain or making your way through the urban jungle,

Gypsy satisfies them all. To go off the beaten track of daily life, to
67
explore and discover the unknown, motoring to new places &

picnics hitherto unchallenged are all possible now.
Specifications:
Dimensions.
Miscellaneous.
Overall length:
4010 mm Engine Type:
G 1388
MPFI 16
Valve Gasoline
Overall width: 1540 mm No. of cylinders: 4
Overall Height: 1875mm Breaks front /rear.
Seating capacity 4 persons. Steering: Disc / Drum
Laden weight: 1620Kg. Fuel Tank Capacity 40 Liters
Tyre size: F78 15 4 PR Engine Oil Capacity 4.0 Liters

at Vijayawada
Variant
Non Metallic Price
Metallic
Ambulance - BharatIII
5,16,217
5,16,217
68
Hard Top Bharat III
5,09,912
5,12,805
Soft Top Bharat III
4,90,231
4,93,123
Maruti Zen
Its the car having a fan club in Andhra Pradesh and the fuel
efficiency of this little car is 18 kpl. Assured with a good
Responsive steering system.
Major Variants
o Zen Bharat I LX
o Zen AT Bharat II
o Zen Bharat II D/Di/LX
o Zen Bharat II Lxi/Vxi
o Zen AX Easy Drive TRD/TRC
o Zen AX Easy Drive - TRF/TRI
69
The Zen has the highest power to weight ratio in its class
78.4 bhp/tonne and the fastest 0-60 timings in its segment. It
has clear multi reflector headlamps that mesmerize you and its
speed sensitive electronic power steering heightens the sensation
of the perfect drive, offering amazing agility and grip on the
move. The collapsible steering column & protective monocoque
body transform Zen into an impregnable fortress of safety.
Specifications:
Dimensions.
Miscellaneous.
Overall length: 3535 mm Engine Type: Peugeot TU

D5
Overall width: 1495 mm No. of cylinders: 4
Overall Height: 1405mm Breaks front /rear. Disc / Drum
Seating capacity 5 persons. Steering: Rack & Pinion
70

at Visakhapatanam
Variant
Non Metallic Price
Metallic
LXi - Bharat III
3,70,943
3,74,582
LXi - Bharat II
3,58,052
3,61,691
VXi Bharat II
3,83,400
3,87,039
VXi Bharat III
3,96,291
3,99,930
LX Bharat III
3,46,431
3,50,070
LX Bharat - II
3,33,540
3,37,179
Maruti Esteem
Its The family Quick Silver. It thrills your sense &
pleases your eyes and has the ability to impress you with
engineering thats world class.
71
Major Variants
o Esteem D . Di Bharat II
o Esteem LX / LXi
o Esteem VXi / AX
The cutting edge engine technology provides a blazing 0 100

km/h in a mere 11.49 seconds. A 16 bit on board engine
management computer (EMC), precisely calibrate the air fuel
mixture and ignition timing thus increasing fuel efficiency and
reduce exhaust emission. Along with McPherson struts and coil
springs, a high ground clearance let the new Esteem glide over
bumps and potholes with ease.
Specifications:
Dimensions.
Miscellaneous.
Overall length:
4090 mm Engine Type: 4 Stroke
cycle,
72
water cooled SOHC (1C2V)

Overall width: 1575 mm No. of cylinders: In Line 4
Seating capacity 5 persons. Steering: Rack & Pinion
Tyre Size: (Radial) 175/70 R - 13

at Vijayawada
Variant
Non Metallic Price
Metallic
VXi - Bharat III
4,91,127
4,91,127
LXi - Bharat III
4,56,236
4,56,236
LX Bharat II
4,26,369
4,26,369
Maruti Baleno
73
Its the most handsome car among all the Maruti models. Its The
Luxury of Silence built using 13 advanced noise reduction
technologies.
Major Variants
o Baleno Sedan LXi

o Baleno Sedan VXi
o Baleno Altura Bharat II
All aluminum 1600 cc smart 1 Engine provides lively response
and superior fuel management. Also independent McPherson
suspension strut is provided on all four wheels mounted on
separate sub-frames. Which gives superior grip and road
handling. The Multi-Point fuel injection system provides uniform
fuel distribution thus giving the vehicle a max speed of even 175
km/h.
Specifications:
Dimensions.
Miscellaneous.
Overall
length:
4225
mm Engine
Aluminum
contemporary 16 Valves SOHC.
74
Type:
All
Overall width: 1690 mm No. of cylinders: In Line 4

Seating capacity 5 persons. Steering: Rack & Pinion with
hydraulic power assistance.

Tyre Size: (Radial) 165/80 R - 13

at Vijayawada
Variant
Non Metallic Price
Metallic
Sedan VXi Bharat - III
6,46,279
6,46,279
LXi - Bharat III
5,75,896
5,75,896
Maruthi Swift
Swift has been positioned on the aspirational plank for
young Indians.
75
Major Variants
Swift LXi
Swift VXi
Swift ZXi
The Swift is targeted at a new kind of Indian customer, who while
valuing the traditional Maruti Suziki attributes including fuel
efficiency also desires contemporary looks and attributes in the
Vehicles.
Specifications:
Dimensions.
Overall length:
Miscellaneous.
3695 mm Engine Type: 1298 capacity, 4
cylinders,
16 Valves, 87 Bhp, Fuel distribution Multi
Injection. Max. Speed 160 Km per hour.
76
Overall width: 1690 mm

Overall Height: 1530mm
Seating capacity : 5 persons.
Luggage Capacity: 232 Lts.
Fuel tank capacity; 43 liters.

at Vijayawada
Variant
Non Metallic Price
Metallic
VXi
4,07,685
4,07,685
VXi (ABS)
4,27,710
4,27,710
ZXi
4,87,801
4,87,801
Lxi
3,89,659
3,89,659
77
VARUN MOTORS Pvt Ltd

.VIJAYAWADA
BRAND POSITION IN THE MARKET
Production Marks were used in olden days to distinguish a

product that is product that is produced form different
production units. These are now known as brand names. Brand
name is strongly associated with the product quality in the
minds consumer.
In
order
to
be
successful
you
need
to
be
effectively
communicating your product to the prospects. This process of

communication of a message of the brand/product so that it
could be seen, Heard & Accepted by the human mind of you
prospect, is defined as the positioning of your brand.
78
Brand is a major issue in product strategy. On the one hand,

developing a branded product requires a great deal of long term
investment, especially for adverting, promotion and packaging
The Brand name can convey up to six levels of meanings. They

are:
Attributes: A brand brings to mind certain attributes.
Maruti suggests durable, low priced, well-built, wellengineered, high prestige automobiles.
Benefits: Attributes must be translated into functional and
emotional benefits. The attribute durable could translate
into I won t have to buy another car for several years.
Values: The
brand
also
says
something
about
the
producers value Maruti stands for high performance,

safety and prestige. It s social status symbol.
Culture: The brand may represent a certain culture.
Maruti represents world class culture, organized effort,
efficiency and high quality.
79
Personality: The
brand
can
also
project
certain
personality.
User: The brand suggests the kind of consumer who buys
or uses the product.
One of the first steps in building the brand is to find out
what promises to keep. Then figure out what promises you
realistically can keep. Finally take a long careful look at
your competition and decide which promise would give you
the best competitive advantage. This process of arriving at
a focused, credible value proposition is the kernel of brand
building activities.
Such are the activities being done by Maruti. This systematic
approach resulted in the fact that a common man too knows
about Maruti cars. Every hook and corner of the Maruti`s market
domain has a Maruti servicing center with 24hr service facility.
Maruti ranked No. I in customer satisfaction by j d power CSI
( 2001 ) for 4th time in a row and also JD power ranked 3 models
( 2003 Oct ) of Maruti on top: Wagon R, Zen and Esteem given
the scale of 50 lakh cars on road, the sheer diversity of Maruti
customers and the fact the Maruti sells more than all
competitors is simply incredible.
80
Imagine making 70000 precisely engineered components and

assembling them perfectly in to a car imagine doing this for more
than 50,000 cars in a row, with 10 different models and over 100
variants. Now that tells why India trusts Maruti more than
anyone else to build the cars of the future.
Lets see the brand position of the Maruti`s products in the local
markets in terms of the different attributes as indicated below
Technologically. Maruti is having a preference percentage of 80%

Maruti
uses
the
advanced
high-end
engineering
design
equipment in the manufacture of its cars.

The highly structured. Well-organized and disciplined servicing
teams and the technicians at Maruti services stations attend to
& repair the faults in no time. Thus the survey resulted in a
customer rating of 95%.
In terms of the features of t he car, Maruti enjoys comparative
65% availability. This could be due to the particular target group
being focused by Maruti. Which require a good cost-benefit
analysis.
81
Nearly 80% fell that Marutis cars are quite economical and
nearly 85% fell it to be a social status symbol to own a car of this
brand name.
The customer survey even showed that 75% do agree with the
fact that the Comfort derived is very much satisfactory and also
that the mileage is good, at times above expectation.
If you talk about change but dont change the reward and
recognition system, nothing changes. Says Paul Allaire, CEO,
Xerox corp in a similar sense its very essential that, only when
you have a clear understanding of what your present status is in
the market will make you design effective strategies for success.
So far the clear understanding of the brand position in the

market, lets visualize the above data in the form of a bar chart, I
hope
picture
speaks
more
than
thousand
words.
The above chart clearly shows the amount of competitive

pressure that exists for Marutis products in the market. Using
this data we can design strategies for expending the markets. For
a well trained eye, the above chart speaks of the cost of
82
mistakes with special emphasis on the growing customer

expectations.
Finally the chart presents the current status of the brand
position in the market in terms of all the parameters represented
in the x axis of the chart.
SERVICES OFFERED BY THE COMPANY

Services offered by the company, which are non-tangible, do play
a major role in the buying decision of the customer. The
attributes of the services add upon the value and would make a
lot of difference between buy and not to buy. Usually the costbenefit analysis made by the customer do account for the after
purchase services offered by the company.
Services thus play a major role in the formation of a positive
image of the company in the mindset of the customer, Having
considered the importance of the impact of services on the
buying process of the customers, lets view it with special
reference to the company under consideration. I.e., MUL services.
Maruti Udyog Limited offers a number of services to its
customers. Some of the major ones include:
S1. N2N Fleet Management.
83
S2. Maruti True Value

S3. Maruti Finance.
S4. Maruti Insurance
S5. Maruti On-road Services
S6. Forever Yours Extended Warranty.
S7. Maruti Genuine Accessories.
S8. Anytime Maruti- Call center.
Lets Discuss about each of these services in detail to understand
the kind of attributes Maruti has considered to fill up the service
package. This gives us a birds eye views of the kind of Marketing
Mix it has designed and also the effective strategies it uses to
capture a large market share.
S1. N2N Fleet Management : Kick the worries. Enjoy the

Car.
84
Car maintenance is a time- consuming process, especially if you

own a fleet. Marutis new N2N Fleet Management solutions for
companies, takes care of the A-Z of your automobile problems.
This service includes end-to-end backups/ solutions across the
vehicles life : Leasing, Maintenance, Convenience services and
Remarketing. Besides Company owned cars, Maruti also offers
this service for Employee-owned cars. With N2N on board,
Problems are things that happen to others. So just sit back, relax
& race ahead with the times.
There are three stages in the lifecycle of corporate fleet
ownership. The are:
1. Acquisitions:
Where
Corporate
formulate
fleet
policy,
Identify & evaluate options for various levels of employees,

negotiate with dealers/OEMs and Acquire corporate fleet.
2. Operations
Now
maintenance
budget
is
prepared,
Maintenance contracts with workshops are negotiated to

Operate and maintain fleet. Track expenses are also taken
care off.
3. Re Marketing : Market value of existing fleet is assessed
and Cars are auctioned to employees or a quotation invited
from external brokers and finally a new fleet is acquired.
85
Similarly there are three types of risks in the lifecycle of fleet

ownership.
Residual value risk : A fleet acquired by cash purchase, hire
purchase or loan, is in the name of the corporate and the
assets are reflected in its balance sheet. At the end of the
corporate usage tenure ( typically 3-5 years), the corporate
faces the risks of not realizing a fair value, delay in the
disposal of the asset, and administrative overheads. The
risk is high if the vehicle is not maintained as per OEM
prescribed standards.
Maintenance risk: During the fleet ownership stage, if the
corporate decides to maintain the fleet on its own or
contract with workshops for maintenance on actual
expense basis, the corporate faces the risk of unplanned
maintenance expenditure. Most corporate budget for
maintenance expenditure on the basis of historical data,
which results in sub-optimal forecasting. The corporate
also faces the risk of poor maintenance quality because of
absence
of
monitoring
go
maintenance workshops.
86
the
jobs
performed
by
Obsolescence risk : The increase in the rate of innovation in

technology and design in automobiles makes newer and better
technology models available to consumers, which considerably
increases the risk of obsolescence.
Marutis suite of N2N services covering acquisition, maintenance

and sales are enlisted below :
N2N Acquire:
Comprehensive
Vehicle
Acquisition
Program
with
competitive interest rate and pre-owned car business

backed residual values that provides attractive lease EMI.
After the end of the lease period, the organization can
either renew the lease with the same set of cars or replace
the old fleet with a new fleet through Maruti exchange
schemes.
Doorstep delivery at the address of choice, insurance,
registration and road tax management services.
N2N Cover:
87
Comprehensive Insurance & Accident Management
Program with virtually cash less claim transactions.
Replacement
vehicles in case maintenance downtime
are more than 24 hours.

N2N Mentor:
Driver Training and Safety Program with training course for
drivers at Marutis Drivers Training Institute.
Training course for individual users as well.
N2N Check In:

Convenience Services Program with 24X7X365 Call Center
supports for all queries, guidance & emergency.
Valets for vehicle pick ups for maintenance and home
delivery.
N2N Physio:
A Comprehensive OEM backed full Service Maintenance
Program.
88
Timely reminders for monthly servicing checks with

extended servicing hours & quick-fit drive in services.
Tyre/battery replacements as per OEM recommendations.
Extensive MIS reporting of cars condition from time to
time.
N2N Rescue:
On the spot emergency plus speedy accident repairs,
towing services
if stranded and home drops as well.
Delivering of repaired cars at the doorstep.
N2N Re- Marketing:

A Vehicle Resale Program for your fleet with transparent
pricing & speedy transactions
Hassle-free resale of vehicles through Marutis Pre-Owned
Car channels.
89
S2 : Maruti True Value :
Get the best value for your car.
Maruti True Value helps you to buy, sell or exchange a pre-owned

car. You get the full value for you dealings, in terms of Quality,
Reliability, Transparency and Convenience with your eyes Closed.
Buying or selling a used cat is a gamble With Maruti True Value,
Its like holding the winning hand All services are aimed at
making your transactions with Maruti as hassle free
and
enjoyable as possible Marutis dedicated and honest team will

ensure that you have rewarding experience at Maruti True Value.
At Maruti True Value, a pre-owned car is Re- conditioned to
Maruti standards in state of-the-art workshops by trained
mechanics using genuine parts. Cars are put through a stringent
120-point check that covers all major systems, like the engine,
brakes, transmission etc. This transparent free evaluation
system, which looks in to the merits of your car, would take 1520 minutes to give you the best possible price of your Maruti
Suzuki. After which, Engineers certify their trustworthiness. The
payment in full, to the seller is made immediately, once verified
at the RTO as genuine. Only then the car is put to sale.
90
Doorstep evaluation service for
your convenience is also
available. With the doorstep evaluation service you can sell your
car from the comfort of your home. True Value says Just call us
and well come . Marutis team works hard to make all its
customers happy.
Every pre-owned car brought through True Value scheme comes
with a Maruti warranty that guarantees complete peace of mind.
Three free services are also availed only when Maruti Suzuki
engineer certifies the car. The car is refurbished with Maruti
genuine parts (MGP) and by Maruti Suzuki trained personnel at
the state- of-the art Maruti Suzuki authorized workshops.
Maruti Suzuki cars up to 10 years old and mileage up to
1,00,00km are sold under True Value . As per the warranty
policy provided in the owners manual, all mechanical and
electrical parts are covered up to ONE full year depending upon
the rating given by the 120 point checkup.
Wear and Tear parts, parts worn due to aging, consumables like
oil, filters. Spark plugs, C.B. points, fuses, bulbs, paint
problems; A/C gas leak, battery , tyres, rubber and plastic items
are not covered by the Maruti Suzuki warranty.
On purchase of a Maruti Suzuki true value pre-owned car, you
will be entitled to three free inspection services at the workshops
91
of any Maruti Suzuki true value after sales service center. The
three free services will be available at the following intervals or
mileage, as the case may be:
First free inspection service:
Within 45 to 60 days or running 1000 5000 km, (over
and above the mileage at the time of delivery) Which ever
occurs earlier?
Second free inspection service:
Within 90 to 120 days of running 5000 5500 km, (over
and above the mileage at the time of delivery) whichever
occurs earlier?
Third free inspection service:
Within 210 to 240 days or running 10,000 10,500 km,
(over
and
above
the
mileage
at
the
time
of
delivery)Whichever occurs earlier.

And before we conclude lets see what the customers have got to
speak about Maruti true value:
True value has successfully organized the disorganized
secondhand car market in the capital. Good work. ND
Karla Indian air Force.
92
Very good concept. Genuine interest shown by sales

person. Not a moneymaking business. One feels very
reassured with the purchase. Best of luck. John Israel
Hyderabad.
Maruti true value is a good outlet for business in second
hand Maruti vehicles. D Kumar-New Delhi
Why settle for anything but the best? Every Maruti car is a
technologically superior product that is backed by a
country-wide network of service stations, authorized
workshops and other auto related services that only
Indias largest car manufacturer can offer. so if you want to
replace your old car with a brand new one, pick the car
that enjoys the highest resale value in the market. Pick a
Maruti.
S3. Maruti Finance:
Buy Now, Pay later as EMI.
This new initiative is a long term proposition besides acting as an

enabler to the core business of Maruti. This special purpose
scheme is centered on the customer through transparent deals
and availability of other bundled services.
93
Maruti finance is now banking on Maruti Udyogs extensive

dealership network that reaches every corner of the country.
Using this service, customers can get car finance at competitive
prices. After the establishment of this new wing, the sales
volume increased appreciably.
The countrys largest bank (SBI) and the largest Carmaker (MUL)
have joined hands to makes car finance available to the large
customer pool across the country. This Mega-alliance makes car
loans available at lower interest rates to a wider section of
people, with transparent terms and conditions. The unmatched
combined network of SBI branches and Maruti put less support
it and make it realty.
Here is the list of Unbeatable Advantages of SBI-Maruti Car
Loans:
Two market leaders in their respective industries with
trusted brand names.
Lowest interest rates of 9.50% (Note: Interest rates at the
time of purchase of the car will be applicable. Interest
rates are subject to change and are at the sole discretion
of SBI. Internet rate of 9.50% applicable on repayment
periods yup to 36 months. An interest rate of 10.00% is
94
applicable for a repayment period of 7 years. Credit at the

sole distractions of SBI.)
No processing fees or hidden costs to ensure transparency.
No extra charge for repaying loans ahead of schedule.
Standardized loans that offer fixed interest rates across
models and locations.
Car loans available for diverse categories of customers
including government employees and agriculturists.
More loans available for diverse categories of customers
including government employees and agriculturists.
More loan amount available as it is extended on the basis of
the cars on road price. Not ex showroom price.
Longer loan repayment period up to seven years
Thus the alliance did worked our well and resulted in a rich
experience for the prospective customers. But Maruti isnt
contented with that. It thought that its the right time to join
hands with some of the big bosses like the HDFC, GE Capital
etc.
95
Maruti Countrywide was set-up when GE Capital, HDFC and

Maruti Udyog Limited formed a captive finance company in 1995.
A professionally managed
company, which would share the
ideals and work culture of the parent companies. The prime

objective being to cater to the needs of Maruti car buyers by
offering innovative finance schemes for the purchase of Maruti
cars.
Later , Citicorp Maruti Finance Limited was formed when Maruti
joined hands with Citibank in May 1998. Located in 23 cities,
This is the first company that provides services to finance the
purchase of secondhand cars nationally. Citicorp Maruti Finance
Limited also offer a wide range of flexible and customized
financing options at affordable rates to individuals buying a
Maruti car.
Apart form all these above mentioned standardized alliances,
the organization also gave the dealers the flexibility to choose
form this wide rage of organize a genuine & more beneficial one
himself. Thus with such a systematic procedure being followed,
its the Marutis customers who are always at a wining edge.
S4. Maruthi Insurance :
Maruthi had tied with Bajaj Alliance and National Insurance
Corporation, two of the foremost Insurance companies to bring
96
this service for all its customers. Maruthi Insurance allows

customers to send enquiry and get a free renewal remainder and
claim. Post accident repairs saving valuable time and efforts
through an appointment contract person.
S5. Maruti On-road Services
Even with the most stringent quality measures, complex

machines like cars can sometimes malfunction. Just call the 24hour Maruti On-road Service (MOS) center during an emergency
and help will be on its way to you.
The MOS ensures:
Round-the 0clock services in almost every city.
A common contact number across the country : 96229622-00
A computerized call-monitoring system dispatches a mobile
MOS van to you at the earliest.
The MOS also ensures :
97
All MOS vans are manned by qualified Maruti Authorized

Dealers /MASS technicians who are trained by Maruti in
problem diagnosis
You are charged only Rs.100 on labour and spares
The charges do not apply if the vehicles is under warranty
The first 24 hour MOS was launched on a pilot run in Delhi in
Jan 1999. This
service was then extended to Bangalore,
Calcutta, Chandigarh, Chenai, Hyuderbad, Ludhiana, Mumbai

and Pune in Sep 1999. The success of the service in these
stations led to the addition of nine more cities in April 2000.
Today MOS is available in the following 41 cities across the
country .
Ahmedabad Cochin Indore Nagpur Surat
Ajmer Coimbatore Jaipure Noida Trivandurm
Ambala Delhi Kanpur Palwal Vadodara
Amritsar Erode Lucknow Panchkula Varanasi
Bangalore Faridabad Ludiana Patna Vizag
Bhopal Ghaziabad Madurai Pune
98
Calcutta Gurgaon Mangalore Rajkot

Chandigarh Howrah Mumbai Secundrabad
Chenai Hyderabad Mysore Sonipat
S6 Marutis forever yours Extended Warranty :

As everyone knows, no Maruti really needs a warranty, But just
to go that extra bit to show how much Maruti cares, They have
enhancing the 2- years primary warranty on your car with the
Forever Yours Extended Warranty * Program. Now you can buy
Extended Warranty with your Maruti, if your Maruti is
purchased on or after 14th May 2001, and the vehicle is still
covered under the primary warranty. This new service has come
into effect from 1st April 2002. The warranty will be valid at all
400 * authorized dealer workshops across India and comes at a
very attractive price. You can now get up to 4 years or up to
80,000 km of warranty coverage! Choose between two options.
99
OPTION I : Extended warranty for additional 1 year or up to

60,000 Kms, whichever comes earlier, from the date of expiry of
primary warranty. The below table gives the values calculated
for each model (new vehicle).
OPTION 1 (3rd Year or up to 60,000 km, whichever is earlier)
S.No. Model
Amount payable (Rs.) from date of delivery

0-60 days
61-365 days
366-730 days
M800
1,495
1,719
1,943
Omini
1,690
1,934
2,193
Alto
1,790
2,058
2,327
Zen
1,895
2,179
2,463
Wagon R
1,890
2,173
2,457
Gypsy
3,095
3,559
4,023
Esteem
3,495
4,019
4,543
Versa
3,495
4,019
4,543
Baleno
3,990
4,588
5,187
100
OPTION II : Extended warranty for additional 2 years or 80,000

Kms, whichever comes earlier, from the date of expiry of primary
warranty. The below table gives the values calculated for each
model (new vehicle).
OPTION 2 (3rd 4th Year or up to 80,000 km, whichever is earlier)
S.No. Model
Amount payable (Rs.) from date of delivery

0-60 days
61-365 days
366-730 days
M800
2,995
2,444
3,893
Omini
3,495
4,019
4,543
Alto
4,190
4,818
5,447
Zen
4,595
5,284
5,973
Wagon R
4,390
5,048
5,707
Gypsy
6,190
7,118
8,047
Esteem
5,885
6,767
7,650
Versa
5,885
6,767
7,650
Baleno
7,990
9,188
10,387
So simply you need to sign on the Extended Warranty Program.

And drive a car thats not just built with superior technology and
backed by over 800-city network of service stations but one that
guarantees
total
peace
101
of
mind.
S7. Maruti Genuine Accessories:

Maruti Genuine Accessories (MGA) is a new initiative to offer you
High quality accessories at competitive prices. Maruti follow
world class engineering and design processes to develop each
and every item of MGA. Many of these items are imported from
Suzuki, Japan. Every MGA item has perfect mechanical and
electrical
compatibility
with
the
vehicle
and
offers
you
Unmatched performance.
The below table shows a sample list of the accessories and the
advantage one can derive using them.
ITEM
THE MGA ADVANTAGE
Alloy
Perfect
Wheels
Aluminum from ISO certified sources. 100 % x-ray tested.
Match
with
vehicles.
Safe
and
reliable.
Virgin
Endurance tested. Excellent finish. Better cooling, better

Braking efficiency.
Body
High
Quality
imported
Fabric.
Water-
resistant.
1-Year
Cover
Warranty. UV Ray protection (UV rays cause paint fading ).

Very light and easily handled. Matches body profile perfectly.
Clamp mechanism. Comes in convenient carry bag.
Carpets
Imported materials used. Perfectly fits the contour of vehicle
102
floor. Attractive designs, matching the interior. Odors free

resistant. Fully Washable. Anti Slip mechanism to Prevent
slipping on floor. Special thread interlocking. Dust absorbing.
Reinforced cushioning at drives area to prevent balding.
Door
Perfect fit with vehicle profile. Unique attachment provided for
Visors
strong
fit.
Suzuki(Japan)
product.
Weatherproof.
Offers
protection from sun-rain Long lasting and unlike other visors,

do not become brittle or crack.
Fog Lamps Comes with complete electric wring, protection relay, switch
and lamps. Electrically compatible with the vehicle electrical
systems, therefore perfectly safe for the vehicle . No need to
cut/splice original vehicle wires, clip-on mechanism . Perfect
fit mechanically. Tested for long distance visibility. Beam
adjustment screws.
Stereo
Electrically
compatible
with
vehicle
electrical
system,
System
theretofore perfectly safe for the vehicle. No cutting/splicing of

original wiring on vehicle needed (Clamp-on system). High
Quality sound and wide features. Easy installation Tested over
50,000 Kms. Durable. Approved by Suzuki, Japan. High
Quality speakers & antenna.
Security
Many Advanced Features from complete vehicle protection.
system
Electrically compatible with vehicle electrical system, therefore

perfectly safe for the vehicle. No cutting/splicing of original
wiring
on
vehicle
needed
103
(clamp-on
system)
3-years
Warranty .
Spollers
Designed by experts to perfectly match the vehicle profile.

Gives the best aerodynamic and sporty look. Best fit. Special
high strength and low weight materials used If light provided,
the electrical are perfectly compatible with the vehicle electrical
systems. Excellent surface finish.
Seat
Leather Seat Covers are made from genuine Italian seat covers.
Covers
In Fabric Seat covers the best quality fabric used. High levels
of craftsmanship. Perfect fit and finish. Matches interiors .
Abrasion tested. Same quality as those fitted from factory.
Car
Care Body Polish, Glass Cleaner, Shampoo, Tyre Polish, Upholstery
Products
cleaner, Dashboard Shiner, etc. Besides these there are a host

of other accessories like Warning Buzzer Assembly warns a
driver when the door is open and reminds him to fix the seat
belt. There are high quality rear parcel tray made of reinforced
PP, FUCOT anti Rust Treatment (from Fucon), Bardahl Fuel
Additive (from Bardahl) etc.
104
S8. Anytime Maruti Call Center:

In addition to the existing channels of communication. Maruti
always explore new avenues of one-to-one interaction with our
customers. As a major step in this direction. It started a Pilot
Call Center for the people residing in Delhi and Gurgaon. This
service , named Anytime Maruti, has now been extended to
Chennai, Bangalore, Hyderabad and Mumbai . Customers in
these cities can contact at any time using a Toll-free number
1600-11-1515 from their MTN/BSNL phones.
Now there is one more channel for you to contact MARUTI . Any
time Maruti is now accessible to the customers using mobile
phones also. The number is (0) 98118-01515. This Mobile
number will not only connect a mobile phone user but also allow
subscribers of Touchtel. WLL,Tata, etc, to connect to anytime
105
Maruti. Please note that the calls to this mobile number will not
be toll-free.
The objective of this call center is to ensure you have quick and
easy access to all information on Marutis models , prices,
finance options, dealers and the locations of the numerous
services stations. There exist future plans to launch this service
nationally.
There is also a web site designed by Maruti Udyog Ltd. To provide
latest online information regarding various facilities and other
related stuff to all the Internet savvy. When is also playing a
major
role
influencing
the
customer.
The
Rediff.com
in
collaboration with the Chetna Institute of Management &

Research in Mumbai have conducted an online survey. The
survey has thrown up some interesting facts accounting for the
fact that 31% of the respondents said they were influenced by
the information available on the Internet.
Among the car brands where the Internet played an important
role in influencing customers, were Alto. Zen,Esteem, Optra and
Baleno. The list shows that Maruti Udyog ltd. Has been
successfully using the Internet to reach its consumers. The
study reflected that MUL, which advertises its brands on the Net,
has been able to convert prospects into customers.
106
CUSTOMER SATISFACTION
Theoretical frame work
Data analysis
CUSTOMER SATISFACTION:
107
Customer satisfaction is a customers feelings of pleasure of

disappointment resulting from comparing a product perceived
performance in resulting to his or her expectations.
Today, more and more companies are recognizing the importance
of satisfying and retaining their current customers.
Many
companies are aiming for high satisfaction level because

customers who are just satisfied offer come along. Those who
are highly satisfied are much less ready to switch, high satisfied
or delight creates an emotional bond with the brand, not just a
rational preference. This result is high customer loyalty.
How so buyers from their expectations?
From past buying
experience
Friends and associates, advice, and marketers and competitors
information and promises.
If marketer raise expectations to
high, there buyers is likely to be disappointed. Some of tow days

most
successful
companies
are
delivering customer satisfaction.
raising
expectations
and
For example, Nissan invites
potential infinity buyers to drop in for a guest drive (not a test

drive, because the Japanese word for customer is Honored
Quest).
108
In
addition
to
tacking
customer
value
expectations
and
satisfaction, companies need to monitor their competitors

performance in these years.
For customer centered companies, customer satisfaction is both
a goal and marketing tool.
Companies that achieve high
customer satisfaction ratings make sure that their market knows

it. The MARUTI Ltd. has received the number one rating in
customer satisfaction from J.D.Powers for the year 2006.
Although the customer centered firm seeks to create high
customer satisfaction, its main goal is not to maximize customer
satisfaction. If the company increased customer satisfaction by
lowering its price or increasing its services, the results may lower
profits. The companies might to able to increase its profitability
by means other increase satisfaction.
Ultimately, the company must operates on the philosophy that it
is trying to delivery a high level of customer satisfaction subject
to delivering acceptable level of satisfaction to the stake holders
with in the constrains of its total resources.
And also quality is the totality of features and characteristics of
products or service that bare on its ability to satisfy stated or
implied needs.
Today companies have no choice but to
implement total quality management programs if they are remain

109
solvent and profitable. Total quality is the key to value creation

and customer satisfaction.
The best sales of company are its satisfied customers as the
value of publicity and sales they generates for exceeds the value
of advertisings and promotion under taken the company.
When rate their satisfaction with an element of the companys

performance say delivery the company needs to recognize that
customers vary in how they define good delivery. It could mean
early delivery, on time delivery, order completeness and so on.
Yet if the company had to spell out every element in detail,
customers could face a huge questionnaire. The company must
also realize that two customers can report being Highly
Satisfied for different reasons one may be easily satisfied must
of time and the other might be hard to please but was pleased on
this occasion.
Listening is not enough however. The company must respond
quickly and constructively to the complaints.
Because loyal
customer account for substantial amount of company profits, the

company should not risk losing a customers by ignoring a
grievance of quarreling over a small amount. Winning back lost
customers is an important marketing activity and often cost less
than attraction first time customers.
110
Some companies navigate all these pit falls to research their

customer value and satisfaction goals. We call the companies
high performance business. Finally, a highly satisfied customer
is:
Stays loyal longer
Buys more as the companies introduce new products and
upgrades existing products
Talks
favorably
about
their
company
and
its
products/services.
Pays less attention to competing brands and advertising
and is less sensitive to price
Cost less to serve than new customers because transaction
are reutilized
Customer satisfaction is the extent to which a product perceived

performance
marches
buyers
expectations.
Customer
satisfaction with a purchase depends on how well the product

performance lives up to the expectation. It is the key influence
on future buying behavior. Dissatisfied customers often switch
to competitors and disparage the product to others.
111
If performance exceeds expectations the customers are highly

satisfied
or
delighted.
Smart
companies
aim
to
delight
customers by promising only what they can deliver, then

delivering more than they promise.
Highly satisfied customers produced several benefits for the
company. Satisfied customers are fewer prices sensitive. They
talk favorably to other about the company and its products and
remain loyal for a longer period. However, the relationship
between customer satisfaction and loyalty varies greatly across
industries
and
competitive
112
situations.
MARKET SHARE OF VARUN MOTORS IN LOCAL MARKET

Varun
Motors
Visakhapatanam
grabs
75%
and
of
the
others
Market
Share
holds
in
25%.
ANALYSIS OF THE STUDY

To know about the attitude of Customer towards Maruti Four
Wheelers and also about VARUN MOTORS and also to ascertain
the level of Customer Satisfaction at VARUN MOTORS a
structural questionnaire was prepared and canvassed among the
Customers of VARUM MOTORS (Sample of 150 was taken).
On Sample Random basis Maruti 4 wheelers cases was
sampled and the questionnaire was canvassed among them and
at times they were also interviewed. Reasonable to get more
information and the data thus collected was tabulated and the
findings reveal the following:-
113
1. AGE GROUP
AGE (YEARS)
NO. OF CUSTOMERS
PERCENTAGE%
25 - 45
60
60
45 - 65
30
30
65 ABOVE
10
10
TOTAL
100
100
114
250
200
150
Series 3
PERCETAGE%
100
NO.OF CUSTOMERS
50
0
25-45
45-65
65 ABOVE
TOTAL
The age composition of the respondents revealed that the age

group between 25-45 were 60% and between 45-65 were 30%
115
and the remaining people were aged above 65 years were 10%.
This shows that the four wheelers were preferred mainly by the
respondents below 25-45 years of age as data shows that 75% of
samples have less than 45 years of age.
The remaining 25% of respondents were between the age 45-65
and 65 above years. The data shows that 30% of respondents
using the 4-wheelers were in the age group between 45-65 and
30% were in the age of above 65 years.
2. GENDER ANALYSIS
GENDER
MALE
FEMALE
TOTAL
NO.OF CUSTOMERS
PERCENTAGE (%)
95
95
05
05
100
100
116
250
200
150
Column1
NO.OF CUSTOMERS
100
50
0
MALE
FEMALE
TOTAL
From the above table a graph we can observe that among the
100 Customers 95% were males and 5% were female.
117
3. OCCUPATION ANALYSIS
OCCUPATION
NO.OF CUSTOMERS
PERCENTAGE(%)
EMPLOYEE
43
43
PROFESSIONAL
25
25
BUSINESS
32
32
TOTAL
100
100
120
100
80
NO.OF CUSTOMERS
60
PERCENTAGE%
40
20
0
EMPLOYEE PROFESSIONAL BUSINESS
118
TOTAL
The occupation of the respondents reveals that 43% of them

were employees, 25% of them were professionals. And Business
people
were
32%
who
were
doing
apprentice
and
Self
Employment.
4. INCOME STATUS (PER MONTH )

INCOME
STATUS
(PER NO.OF
PERCENTAGE
MONTH )
CUSTOMERS
(%)
15 ,000 25,000
39
39
25,000 35, 000
34
34
ABOVE 35,000
27
27
TOTAL
100
100
119
15000-25000
25000-35000
ABOVE 35000
TOTAL
INCOME STATUS
Monthly Income of all the respondents revealed that 39% of them

were between 25,000 to 50,000, 34% of them had monthly
income range of 50,000 to 1,00,000 and 27% of them had
monthly Income above 1,00,000. The analysis shows that the
120
Customers constituted of mainly middle class and the upper

middle
class
and
High
class
segment.
5. PREFERRED PARAMENTERS OF MARUTI/ANY OTHER

BRAND IN VARUN
PARAMETERS
NO.
OF
PERCENTAGE(%)
CUSTOMERS
MILEAGE
STYLE
COMFORT
SERVICE/SPARES
25
11
31
NET 13
25
11
31
13
WORK
ALL FACTORS
TOTAL
20
100
121
20
100
100
90
80
70
60
50
40
30
20
10
0
NO.OF CUSTOMERS
PERCENTAGE%
The preferred parameters of Maruti/ Any other Bran in Varun of

the Respondents reveals that 25% of them were interested in
mileage improvement and 11% of them were offered style, 31% of
them were choosing for the comfort, 13% of the were offered for
the Service/spares net work. Most of the Customer were offered
for above all the factors their percentage was 50.67%.
122
6.NO.OF YEARS OF PARTICULAR DURATION OF USING 4WHEELERS
NO. OF YEARS
NO. OF CUSTOMERS
PERCENTAGE (%)
Less than 1 Year
20
20
1-2 Years
18
18
2-5 Years
27
27
5-10
18
18
Above 10 Years
17
17
TOTAL
100
100
123
100
90
80
70
60
50
40
NO.OF CUSTOMERS
30
PERCENTAGE%
20
10
0
The response for the question since how long are you using the
particular four wheelers shows that 18% of the respondents
were using the particular 4-wheeler for 1-2 years, 20% were
using since les than 1 years, 27% of them were using since 2-5
years and 17% of the respondents were using the particular 4wheeler above 10 years and 18% of the people are using the 4-
124
wheeler
between
10
years.
7.RATING OF SERVISCE OFFERED BY VARUN MOTORS TO

THE CUSTOMERS
SERVICE RATING
NO.OF CUTOMERS
PERCENTAGE (%)
EXCELLENT
22
22
VERY GOOD
24
24
GOOD
38
38
AVERAGE
16
16
TOTAL
100
100
125
200
180
160
140
120
100
PERCENTAGE%
80
NO.OF CUSTOMERS
60
40
20
0
The ratings of the respondents with respect to services of

VARUN MOTORS shows that 24% of them rated as very Good.
38% of them rated good and 22% of them rated excellent and
16%
revealed
as
satisfied
little
126
bit
of
their
services
8.RECOMMENDED MODIFICATION IN MARUTI PRODUCT

RANGE
MODIFICATIONS
NO. OF CUSTOMERS PERCENTAGE
EXTRA MILEAGE
34
34
MORE SPARE FOR LUGGAGE
25
25
MORE PICK UP
34
34
CHANGE IN STYLE
07
07
TOTAL
100
100
127
200
180
160
140
120
100
80
PERCENTAGE%
60
NO.OF CUSTOMERS
40
20
0
From the above table any graph it can be known that 34% of the
Customers need additional features that 75 of them extra
mileage. 25% of them suggested that there is and or increasing
the space for luggage. 7% members gave is as more pick up and
34%
of
them
asked
for
128
change
in
style.
9.INFLUENCED YOU TO PURCHASE
INFLUENCE
NO. OF CUSTOMERS
PERCENTAGE (%)
SELF
19
19
FAMILY
25
25
FRIENDS
24
24
ADVERTISEMENT
10
10
SALES FORCE
22
22
ANY OTHER
00
00
TOTAL
100
100
129
120
100
80
60
NO.OF CUSTOMERS
40
PERCENTAGE%
20
0
When the customers who were influenced of new offerings were

enquired as to how they had came to know about them, it was
found that around 19% came to know though. Self influence and
around 22% through the sales force approach 10% came to know
through advertisements, 25% people are influenced by their
family members.24% & 1.33% are influenced by the friends and
other reasons respectively. Hence, self influence seems to have
played important role in creating awareness of new models
offering of the Maruti.
130
10.CHOOSE VARUN MOTORS WHY BECAUSE OF
CAUSE
NO.
CUSTOMERS
NOT
AWARE
OF
OTHER 11
OF PERCENTAGE
(%)
11
DEALERS
PROMOTIONAL SCHEMES
23
23
SERVICE OFFERED
20
20
FINANCIAL AVAILABILITY
26
26
ANY OTHER
20
20
TOTAL
100
100
131
NOT AWARE OF OTHER

DEALERS
PROMOTIONAL SCHEMES
SEVICE OFFERED
FINANCIAL AVAILABILITY
ANY OTHER
TOTAL
The response form the Customers regarding the reason for

choosing Varun Motors to buy 4- wheelers revealed that 20% of
them Varun for service offered. 30% people were not aware of the
dealers. 23% for promotional schemes and 26% & 20% were for
finance availability and any other causes. Such as reputation
near
to
the
11.SATISFACTION
service
WITH
SALES
station
FORCE
respectively.
APPROACH
SATISFIED
NO. OF CUSTOMERS
PERCENTAGE (%)
YES
100
100
NO
00
00
TOTAL
100
100
132
100
90
80
70
60
NO.OF CUSTOMERS
50
PERCENTAGE%
40
30
20
10
0
YES
NO
Most of the Customers were satisfied with the Varun Sales force
approach the satisfied percentage was 100% Remaining persons
are not satisfied with the sales force approach why because they
are not maintaining the time, and they are approaching in add
133
timings.
12.ADVANTAGE OF VARUN
ADVANTAGES
NO. OF CUSTOMERS PERCENTAGE (%)
WIDE RANGE OF CHOICE 17
17
CONVENIENCE
22
22
FINANCE
22
22
ALL FACTORS
39
39
TOTAL
100
100
134
NO.OF CUSTOMERS
WIDE RANGE OF CHOICE

CONVENIENCE
FINANCE
ALL FACTORS
TOTAL
From the above table it can be observed that the total of the no.
of Customers are more than 100. It is because of the Customers
preferring 4- wheelers vilified as their reasons for Varun as their
dealer.
13. ANY SERVICE PROBLEMS AFTER SALES

PROBLEMS
NO.
OF LPERCENTAGE
CUSTOMERS
(%)
06
06
TIPS DEMANDED BY SERVICE 13
13
UNTIMELINESS
BOYS
NON AVAILABILITY OF SPARE 09

135
09
PARTS
PROBLEM IN CHARGING
06
06
NO COMMENTS
66
66
TOTAL
100
100
100
90
80
70
60
50
40
30
20
10
0
NO.OF CUSTOMERS
Series 2
From the above table it can be observed that there are very large
members of Customers who are satisfied with the services of
136
Varun Motors. Very few members are not satisfied with the
Varun Services why because they are not maintaining the time
and tip demanded by the service boys and non-availability of
spares and maintaining is billing.
14. MODE
OF
PURCHASES
MODES
NO. OF CUSTOMERS
PERCENTAGE (%)
CASH
46
46
CREDIT FINANCE
54
54
TOTAL
100
100
137
250
200
150
PERCENTAGE
NO.OF CUSTOMERS
100
50
0
CASH
CREDIT FINANCE
TOTAL
Most of the customers are purchasing the 4- wheelers by credit.

It will be provided by the banks. Like ICICI and HDFC banks by
credit mode Customers were 54% by ready cash buyers are 46%.
138
SUMMARY & SUGGESTION
BIBLIOGRAPHY
APPENDIX
Questionneire
ANALYSIS
This is about analyzing the answers, or responses of customers
to the questions in the given questionnaire. About their car
model, income, occupation, awareness of Varun Motors, reasons
for buying from Varun Motors, its advertising like that questions
which helps us in analyzing the Varun Motors overall customer
satisfaction so that we can find out some positive and negative
responses towards Varunm Motors. So that we can offer some
suggestions
to
improve
SUMMARY
139
the
organization.
A Study of Customer Satisfaction at Varun Motors was done with

the sample size of 100 Respondents. The data is mainly divided
into two types i.e. Primary Data and Secondary Data. Primary
data
was
collected
through
Questionnaire
and
personal
interviews and Secondary Data was collected from Journals,

magazines, dailies, websites and Industrial Survey.
To ascertain the Customer Satisfaction towards Maruti Four
Wheelers in Varun Motors a detailed study o Customer attitudes
and level of satisfaction and their complaints and suggestion was
taken under, the study also includes assessing the future
prospects of four wheeler industry.
India is the first largest manufacturer and producer of four
wheelers in the world. The four wheeler industry made a small
beginning in the early of 50s when automobile Products of India
(API) started manufacturing Cars in the Country. The industry
has smoothly started manufacturing even all types of Cars and
Vans. The India Four- wheelers industry can be broadly classified
as Cars, Vans and Mini Cars.
Maruti Udyog Limited occupies a market share of 52% with
emergence of MNCs like Hyundai, Daewoo, Fiat, Honda, Ford.
Marutri Udyog Limited is facing stiff competition for its Maruti
140
800 and Zen. Even in mid car segment Maruti occupies number
one position with its Maruti Esteem model.
Maruti has strategically positioned its products in various
segments targeting, different customers preferences, unlike other
companies Maruti Udyog Limited has been providing services to
the Customers not only before but also after sales service with
its wide range of network.
Varun group commenced its Hyderabad operations in with the
Name and style of Maruti Franchisee, which is now popularly
known to be as VARUN MOTORS . Varun motors had captured
total 80% of the Visakhapatanam and Other cities around
Visakhapatanam. Varun has captured the 80% of Four Wheelers
and
all
types
of
Two
Wheelers
also
in
and
around
Visakhapatanam. As of now, Varun Motors has a work force of

150 members, with an annual turnover of more than 50 crores.
They have also opened a separate service station for better
Customer Care.
Varun Motors has also opened a Separate
Finance Institutes for the Customers Satisfaction to attract more

customers.
The essence of the marketing concept is that organization must
adopt customer oriented features and focuses their attention on
building programs, offerings and strategies that satisfy customer
141
needs and wants. Many organizations maintain their focus on

operations or product or sales efforts and thereby get dislocated
by mistaking the means for the end.
Customer
Satisfaction is a persons feelings of pleasure or
disappointment resulting from the comparing comparing a

products perceived performance ( or out come ) in relation to his
or
expectation.
Some of the important findings are,

Majorities of the customers of Varun Motors were Males.
The target customers were mainly in upper middle class
income group and Upper class.
Most of the Customers of Maruti were Business men.
Most of Four wheelers used by the Customers of Varun
Motors are Maruti .
Alto, Baleno, Maruti 800CC, Zen and all types of Brands
are the specialized brands for Varun Motors.
Majority of the Customers were self- influenced to purchase
the Four Wheelers of Maruti
142
The main reason for Customers to choose Varun Motors to

but their Four wheelers for the service orientation.
50%
of
the
Customers
were
Recommended
for
the
modification offered by Varun Motors to the Customers .

70% of Customers who were aware of the new offerings of
Maruti four Wheelers have got information through
Advertisements and Hoarding .
The cost of the spare parts were found to be high at Varun
Motors than outside.
SUGGESTIONS
Varun Motors should maintain the stock of spares of all

brands of Maruti Four wheelers so that it does not cause
any inconvenience to the Customers.
The charges for servicing the four wheelers may be slightly
reduced. For the quality of unpaid service should be kept
at par with that of paid service.
143
As a promotional measure of Varun Motors may increase

free services camps. This will increase the Customers
loyalty.
A few more service stations smaller in size may be set up in
areas where there is more demand which satisfy more
customers of all areas.
As per the study after service, cleaning and servicing
vehicles should be given importance and improved upon.
Care should be taken to see that delivery of new car as well
as serviced car should be on time.
Customers are expecting some complaints during the
delivery of Car. Hence, such items may be given to improve
Customer satisfaction.
Varun motors should concentrate on female customers to
increase its sales.
BIBLIOGRAPHY
1. Principles of marketing
144
--Philip Kotler & Gray Armstrong

2. Fundamentals of marketing
--William J.stanton
3. Articles of customer satisfaction
--Business India
4. Marketing research
-- Barri
5. Magazine:
--Business of India
--Business world
--Business today
Company
brouchers
and
APPENDIX
145
manuals
QUESTIONNEIRE:
Q1;
Name
: ---------------------
Age
: ----------------------
Occupation : ---------------------Dealer
: -----------------------
Q2; which model preferred by the customer: ----------------
Q3; How do you first come to about VARUN motors?

a. Television
b. News papers
c. Friends
d. Neighbors
146
Q4; Are you satisfied with the quality of MARUTI 4-wheelers ?

a. Very much satisfied
b. Satisfied
c. Not satisfied
d. Very much not satisfied
Q5; How do feel about the price of MARUTHI 4-wheelers

compared to other 4-wheelers?
a. Affordable
b. High
c. Low
Q6: Are you satisfied with the service provided by VARUN

motors?
a. Yes
b. No
147
Q7; The most reasons for buying this model?

a. Good looks /style
b. Suits my personality/image
c. Fuel efficiency
d. Easy access to service station
Q8; what major purpose would you use this 4-wheelers?

a. For communication
b. For going to college
c. Riding around for fun
d. Going for long drives
Q9; Are you satisfied with the spare parts available with dealer?
a. Yes
b. No
148
Q10; How are the prices of the spare parts of MARUTI 4wheelers?
a. High
b. Affordable
c. Low
Q11; do you think any promotional schemes requires ?

a. Yes
b. No
Q12; Did you avail finance scheme or made full cash payment?
a. Full payment
b. Finance scheme
Q13; what is you are option on the statement MARUTI 4wheelers is the
worlds no-1 4-Wheelers company?

149
a. Yes
b. No
Q14; Do you wants to mention any complaints?
Thanks for response
150

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CHAPTER - I

This chapter seeks to describe the concept of marketing and

Introduction:Human wants are unlimited and respective in nature. Business

The product should confirm to the requirements of the consumers.

- American Marketing Association

Marketing is a total systems of interacting business activities designed

promote and distribute wants satisfying products and

services to present and potential customers.

A managerial function-marketing is one of the most powerful

Customer Satisfaction:Satisfaction depends on a products perceived performance in

performance falls short of the customers expectations the buyer is

If the performance is exceeds expectations the buyer is

delighted. Outstanding marketing companies go out of their way to keep

Marketer must be carefully to set the right level of

Various Steps Involved To Create High Customer Satisfaction:

Company has many stockholders including employees dealers

Methods of Tracking & Measuring Customer Satisfaction:

Direct measures of customer satisfaction:

Directly reported satisfaction:

Lost Customer Analysis:

Some cautions in measuring customer satisfaction:

implementation and evaluation of various marketing strategies in the battle

Significance of the study:

Objectives of the study:

Methodology & Sources of Data:

Scope of the Study:

A step through segment like Maruti ZEN, VERSA and WAGON R.

The new products have contributed to 35% of the growth and

PROFILE OF MARUTI CARS

management practices (which had catapulted Japan over USA to

Suzuki Motor Company (now Suzuki Motor Corporation of

This newly formed organisation were given the primary objectives

Maruti created history by going into production in a record

On 14 December 1983, the then Prime Minister of India. Mrs.

VISION , VALUES & ETHOS OF MUL:

transforming Maruti to be A pride of India.

To implement this philosophy, several measures have been

DIRECTORS ON THE BOARD:

Mr. Shinzo Nakanishi, Managing Director

Mangaldas and Suresh A Shroff and co

SMC increased its equity to 40% in 1989. In 1992 Maruti ceased

AWARDS AND ACHIEVEMENTS:

6th consecutive award won in as many years. India

organizes this contest. Since 1998 Maruti has won this a

requirements of TS 16947 : 20021standard. A copy of the

management, continual improvement, etc. A copy of the I

installation, marketing and scales as well as after saies

Satisfaction, No.1 in Sales Satisfaction, No.1 in Product

Our overall sales increased by 23%. The Alto became Indias

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

PROFILE OF VARUN MOTORS Ltd

The Varun Group took Maruti Udyog Ltd., dealership in 1996

the showroom. A novel housing scheme is in place to provide

Dealership of mobile phones. It has over 1000 employees on its

Brief history of VARUN :

Our Founder and Managing Director, Mr. V. Prabhu Kishore has

In 1988, Mr. Kishore established his own enterprise VARUN

A modern medical diagnostic centre in memory of the M.D.s parents is

Varun Industrial Training Centre(I.T.C): We train 50 boys in diesel

Our dealership practices and performance have made us the largest

Varun's Success Mantra :

Serving the customer at his door step with workshops expansion.

Maruti Authorised Service Stations