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SUMMER TRAINING PROJECT REPORT
ON
―A study on Customer Satisfaction towards
Maruti Suzuki cars in Lucknow City‖
Towards partial fulfilment of
Master of Business Administration (MBA)
(Affiliated to Dr. A. P. J. Abdul Kalam Technical University,
Lucknow)
Industry Guide: Faculty Guide:
Mr. Manoj Srivastava Ms. Meetu Pandey
(Associate Professor)
BBD NITM, Lucknow
Submitted by:
Kapil Pathak
Roll no: 1605470036
M.B.A.3rd
Semester
SESSION2016-2018
DEPARTMENTOFMANAGEMENT
Babu Banarasi Das
National Institute of Technology & Management
Sector1,AkhileshDasnagar,FaizabadRoad,Lucknow(U.P.),India
DECLARATION
This is to declare that I, Kapil Pathak student of MBA, have personally worked on
the project entitled “A study on Customer Satisfaction towards Maruti Suzuki
cars in Lucknow City“. The data mentioned in this report were obtained during
genuine work done and collected by me. The data obtained from other sources
have been duly acknowledged. The result embodied in this project has not been
submitted to any other University or Institute for the award of any degree.
Kapil Pathak
iii
ACKNOWLEDGEMENT
The present work is an effort to throw some light on “A Study on Customer
Satisfaction towards Maruti Suzuki cars in Lucknow City”. The work would
not have been possible to come to the present shape without the able guidance,
supervision and help to me by number of people.
With deep sense of gratitude I acknowledge the encouragement and guidance
received by my organizational guide Ms. Meetu Pandey and other staff members.
I convey my heart full affection to all those people who helped and supported me
during the course, for completion of my Project Report.
(Kapil Pathak)
iv
PREFACE
The Summer Training program is the integral part of MBA curriculum
during the course of management; the research is expected to use and apply their
academic knowledge and gain a valuable insight into corporate culture with all its
environment operational complexities.
The research offers a valuable opportunity to the researcher to meet their academic
knowledge to the real world situation. I have undertaken commercial department to
study about the various activities done in this department in the details, as the
result of that I came out with the project title “A study on Customer Satisfaction
towards Maruti Suzuki cars in Lucknow City”.
In this report I have put my finest efforts to compile the data with utmost accuracy
and hope this report will give complete satisfaction regarding the various aspects
of marketing.
v
TABLE OF CONTENT
1. Certificate ii
2. Declaration iii
3. Acknowledgement iv
4. Preface v
5. Introduction 1
6. Literature Review 28
7. Company Profile 34
8. Research objectives 66
9. Research Methodology 68
10. Limitations 71
11. Data Analysis 73
12. Findings 86
13. Recommendations 88
14. Conclusion 90
15. Bibliography 92
16. Annexure 94
1
Introduction
2
INTRODUCTION
As organizations become increasingly customer focused and driven by demand, the
need to gain customer loyalty and retain their loyalty is critical. Customer
satisfaction is the most effective way to achieve customer loyalty. Customer
satisfaction and customer loyalty share many similar traits. Customer value is the
customer‘s perception of the ratio of benefits to what he or she gives to obtain
those benefits. The customer Value Triad is a framework used to understand what
it is that customers want. The framework consists of three parts: (1) perceived
product quality, (2) value-based pricing, and (3) perceived service quality.
Customers are satisfied, when value meets or exceeds expectations. If their
expectations of value are not met, there is no chance of satisfying them. Figuring
out what the customers want, however, is a difficult and complex process. To be
able to create and deliver customer value is important to understand its
components. On the most basic level, value from a customer‘s perspective is the
ratio of benefits to the risks being taken while buying the product.
CUSTOMER SATISFACTION
AN INSIGHT
According to Harold E Edmondson ― Customer Satisfaction‖ seems to appear in
print more frequently than any other catch phrase used to describe a new found
magic for industrial success. Before we proceed in to the study of the dynamics of
Customer Satisfaction it is important to know about, who a customer is and what
satisfaction really means.
3
Who really is a Customer?
The question of defining who your customers are seems fairly easy particularly if
you have segmented your market properly and understand who you are trying to
satisfy. However subtlety that frequently goes undetected by many firms is that is
that customer set can be divided into two parts, the apparent customer and the
user. The apparent customer is the person or group of people who decide what
product to buy and basically have control over the purse strings. The user is a
person or group who physically uses the product or is the direct recipient of a
service.
What does satisfaction really mean?
As in defining customer above, defining satisfaction also appears simple. However
as with customer there is a subtlety that needs addressing. Satisfaction by most
definitions simply means meeting the customer‘s requirement.
Customer satisfaction is a concept that more and more companies are putting at the
heart of their strategy, but for this to be successful they‘re needs to be clarity about,
what customer satisfaction means and what needs to happen to drive improvement.
Without this, there is a risk that customer satisfaction becomes little more than a
good intention, with confused objectives failing to address the real issues for
customers, one helpful way to look at the problem is to rephrase the objectives: set
the sights on helping the customers meet their goals.
Customer satisfaction can be defined in many different ways. Finding the right way
for a company depends on understanding your customer and on having a clear
vision of the role that customer satisfaction is to play in the strategy. For example,
a focus on customer satisfaction can work alongside existing segmentations to
support revenue generation from high value customers or it can be a company-
4
wide objective rooted in the brand values. For the former, it may be sufficient to
focus on improving customer service, but for the latter a broader definition of
customer satisfaction is necessary, closer akin to corporate reputation.
Whatever the strategy for customer satisfaction, it must at least include getting the
basics right. Failing to achieve this can destroy the reputation as well as losing
valuable customers. Every customer, regardless of their economic worth to the
business, has the power to influence – positively or negatively – a company‘s
reputation. Once the objectives for the customer satisfaction strategy are defined
there are a number of steps we can take to make sure the focus on customer
satisfaction is effective.
Building a company around Customer Satisfaction -
With the increase in customer‘s demands and competition it has become a lot more
important to base the entire company on customer service. When doing this one
must first realize that every member of an organization plays an active role in
customer service. This includes both external customers and internal customers
within a company.
Customer focused organizations focus both on customer satisfaction and
profit. Achieving customer satisfaction generates the profit. In these organizations
top management has frequent contacts with external customers. The top
management uses consultative, participative, and supportive management styles to
get through to the customer. The staff focuses all of its attention on satisfying the
customer‘s needs. However, the management‘s job is to provide the staff with
support necessary to achieve these goals. The other department and staff in the
organization that do not have direct contact with the external customers deal
exclusively with internal customer satisfaction.
5
The Influence of the salesperson in Customer Satisfaction-
In an article titled, ―The influence of salesperson selling behavior on customer
satisfaction with products,‖ Brent G.Goff and James S. Boles examine the effects
of non-product related construct on customer satisfaction with major retail
purchases such as automobiles. The article states that salesperson‘s selling
orientation- customer orientation (SOCO) will affect not only consumer
satisfaction with the salesperson and dealer, but also indirectly, satisfaction with
the product or manufacturer.
In the perspectives of both the retailer and the manufacturer, customer satisfaction
represents an important issue because it relates to several desirable
outcomes. Customer satisfaction leads to future purchases, and repeated purchases
of the same product from the same source. In other words, it helps a firm retain its
present customers and build loyalty. By helping a buyer obtain product information
and providing guidelines about what should be expected during the buying process
and use of a product, a salesperson may influence customer expectations
concerning the product. Thereby this may reduce the likelihood of dissatisfaction
(Grewal and Sharma, 1991). A successful salesperson tailors to the needs of each
individual customer. By being customer-oriented, a salesperson is likely to identify
with needs of the customer, enabling the salesperson to match his or her
presentation to those requirements of the customer.
Internal Marketing – how it affects Customer Satisfaction –
Successful companies make every effort to ensure satisfaction to their customer by
focusing all organizational efforts of the company on providing superior customer
service. By doing this these companies hope to retain their existing customers and
6
attract new ones. Only angle of customer satisfaction commonly overlooked is the
internal aspect.
The internal customer or employee plays a vital role in achieving customer
satisfaction and loyalty. Some firm‘s do not understand that the treatment of
internal customers becomes the external customers‘ perception of the company. A
firm‘s employees or other departments within the organization make up its internal
customers. Their job performance affects the firm‘s ability to deliver superior
product and customer service (Boone and Kurtz, 1999). When a firm‘s employees
are happy at work, their overall attitude and performance towards the customer
enhances tremendously. Internal marketing helps members or employees of an
organization understand and fulfill their roles in implementing its marketing
strategy. Internal marketing not only keeps employees happy, it also shows them
how their actions affect the firm‘s ability to achieve customer satisfaction.
Customer Satisfaction as part of Service Profit Chain:
A Harvard Business Review article outlines the internal process required to drive
growth and increase profitability. The article describes the ways in which service
quality contributes to success, outlining the steps in the ―Service-profit chain‖:
In this world of competition any organization cannot avoid Customers. It
has become a necessity for an organization for its survival in any industry so that
customer satisfaction plays important role in each an every product life cycle.
Customer satisfaction survey for Maruti Suzuki is the project conducted for
Maruti Suzuki Automotive pvt. Ltd in city of Amravati. Today Companies are
7
facing toughest competition ever. The intense competition makes the companies
to take the necessary steps.
To retain their existing customer as well as attract new once. In the
environment of advancement of the technology the companies are trying hard to
keep the pace with latest development.
This survey will help the company to know the customers satisfaction level
and feedback of customers at the product in Amravati. It will also help company
to know about the competitors. This will help company to know about wants and
expectation of customers.
The company can also know if there are any problems faced by the
customers in that region. This survey has conducted a geographical are in
Amravati.
O P E R AT I O N S
Your company remains steadfast in its quest for achieving higher operational
efficiencies. This includes efforts at reducing costs, increasing productivity and
maintaining delivery schedules.
An example of Maruti‘s strength in operations is its capability to roll out two
vehicles every minute from its shop floor. It is on the foundation of such strong
operations that MUL offers its customers a suite of 10 models in over 50 variants.
In times of unfavorable market conditions, our operational efficiencies have
helped us remain competitive. Today, as markets have turned upbeat, we have
8
leveraged this strength to seize opportunities and ensure that profits outpace top-
line growth.
PRODUCTION
Spread over 297 acres, Maruti has three fully integrated production facilities with
a combined capability of 500,000 units per annum. Chart D shows the category-
wise production of vehicles in 2003-04 and 2004-05. Production increased across all
categories of passenger cars — the A1 category grew by 20.4 per cent, A2 grew by
47.7 per cent and A3 grew by 33.8 per cent. Total vehicle production increased by
31.4 per cent from 359,960 units in 2003-04 to 472,908 units in 2004-05.
Two years ago, in the backdrop of fierce competition, your company had initiated a
program called ‗Challenge 50 — go fast, high quality‘ across its production
facilities.
The principal philosophy behind this program is to raise our productivity levels by
50 per cent in three years through Kaizen and continuous performance
benchmarking. 2004-05 is the last year of this program. As shown in Chart E, this
program has already yielded impressive operational gains for the company. A
critical parameter that measures efficiency of production systems in the automobile
industry is man-hours spent in producing one vehicle. This has improved by around
54 per cent in the last three years. In addition, there has been a considerable
reduction in inventory holding period, which dropped from 30 days in 2003-04 to
19 days in 2004-05.
SUPPLIER MANAGEMENT
In an industry like automobiles, where large part of its components are outsourced,
vendor management becomes a critical operation. This has always been a key focus
area for your company. When MUL started its operations in India, auto-component
9
suppliers were almost non-existent. Thus, one of the immediate goals was to
develop and establish a competent vendor base. This involved providing capital,
transplanting technology, and developing production processes for suppliers.
Today, this situation has changed. The Indian auto-component industry is
increasingly finding global recognition for its production capabilities and low
costs. This has considerably eased pressure on the vendor development front.
Nevertheless, given the severe competitive pressures over the last few years,
vendor management has become critical to the business. Some of the operational
issues in this regard are discussed below.
220 at the end of 2004-05. This has helped us enhance supply chain efficiencies by low-
ering the time and costs involved in dealing with more vendors. It has also provided our
vendors with the requisite volumes to realise economies of scale. Going forward, we plan
to have technically and financially capable set of vendors, whose standards match up to
those of Maruti.
improving quality and productivity of the vendors is a priority area for Maruti.
While the average standards have improved significantly over the years, there is
still high variability. Hence, improvement in this area is of considerable
importance to MUL.
our company has been encouraging vendors to develop their own technology and
R&D capability. In the long run, Maruti expects its vendors to initiate and
develop specialised components on their own, while it focuses energies on its
core competency of making better cars.
10
R&D AND TECHNOLOGY
R&D activities of Maruti have the twin objectives of reducing product costs by
developing capabilities of local vendors and becoming a regional R&D hub for all
Suzuki operations. The company has adopted a ‗focused model cost reduction‘
technique.
Maruti has been continuously engaging in Value Analysis/Value Engineering
(VA/VE) activities across its operations. This initiative has gathered greater
momentum this year with the introduction of ‗Junkai‘ (or ‗Focus‘) visits by our
engineers to our vendors‘ production facilities. Junkai visits facilitate
development of fresh VA/VE ideas for cost reduction and also reduce the cycle
time for idea evaluation.
In addition, Maruti has started conducting cost workshops with vendors supplying
high cost parts. In these workshops, current cost structures of vendors are analyzed
in detail and specific cost reduction targets suggested. To help vendors achieve
these targets, a team of engineers from Maruti and Suzuki visit their production
facilities and develop an action plan to meet these targets. The assistance of
vendors‘ collaborators, wherever applicable, is taken to accelerate implementation.
The action plan often includes VA ideas, localization of inner parts, and reduction
in cost of bought-out parts, yield improvement and process cost reductions. In the
year under review, 33 such visits were made.
In its early days, the Maruti R&D centre was primarily involved in providing
technical assistance to local component manufacturers. Over the years, this centre
has developed capabilities for face lifts and body changes of current models. These
include styling, clay modeling, computer aided design, prototype making and its
evaluation, and stamps / dies designing. All modifications done on the new Zen
11
model introduced by the company in 200304 were carried out in-house by the R&D
team. The dies for the new body panels were developed in- house die-shop for the
first time. All the changes required in the existing production facilities were also
developed in house, resulting in significant reduction in the investment required
for these modifications.
QUALITY
Maruti has raised the bar for quality checks by adopting the ‗Global Customer Audit
(GCA)‘ mechanism. The GCA methodology places a great deal of emphasis on
delivering products which meet the quality requirements of our customers. In this
process, a select number of cars are picked at random everyday and taken through
rigorous tests.
This includes examining the vehicle in ‗static condition‘ and then in ‗dynamic
condition‘ by test driving it under varied road conditions to check all functional
parts. The total cycle time for GCA is 95 minutes per vehicle. Based on the GCA
feedback, requisite remedial measures are undertaken to ensure that defects are not
carried in vehicles which are under production.
In the year under review, MUL introduced the concept of ‗Quality Gates‘ across its
manufacturing processes. These ‗Quality Gates‘ have been positioned at 110 key
locations throughout the manufacturing process, and provide real-time feedback
for continuous process improvement by following the concept of ―plan-do-
check-act‖.
MUL‘s press shop and related functions received the TS 16949 quality certification
in 2004-05. While we are proud of this achievement, we believe it is imperative
that these high quality standards be shared by our vendors too. To this end, MUL is
12
actively involved in assisting its suppliers to improve their quality practices to TS
16949.
We are pleased to report that our initiatives on the quality front have yielded
gains:
 MUL was ranked No. 1 in the prestigious JD Power Customer Satisfaction Survey,
2003. This No.1 rank is for fourth time in a row — which is a world record for any
automobile leader in a country.
In 2003, Maruti models topped ‗Initial Quality Study‘ conducted in India by JD
Power Asia Pacific. In the highly competitive A2 segment, Wagon R was rated
best in overall quality rating, followed by the Zen; while in A3 segment, Esteem
achieved top ranking in 2003.
In 2004-05, NFO, an international survey agency, ranked Maruti WagonR as no.1 in
the ‗Total Customer Satisfaction‘ for Premium Compact segment.
HUMAN RESOURCES
Maruti‘s most valuable asset has always been, and will continue to be, its people.
The successes and accomplishments of the company over the years have been
entirely due to the motivation, dedication and commitment of its employees.
It has been a constant endeavor of the management to share with its workforce the
opportunities and challenges faced in its business operations.
This initiative was given a major thrust with organizing a training program for the
union working committee members so that the message reached the workmen.
Through this training program, management shared its perception of the company‘s
future and familiarized the union members with the competitive pressures faced by
the company. Subsequently, a one-day training program, ‗Sankalp‘, was launched
13
to cover 100% of our workmen on the global business trends and the ever-increasing
competition. The objective was to highlight the need for a change in mindset and
approach to business. The Sankalp series will continue through the year to cover
the entire workmen population.
Encompasses a flexible perquisite basket based compensation package. Going
forward, we believe that this agreement would provide us the confidence and
strength to keep our costs competitive and bring in greater operational resilience.
Developing human resource capabilities across all levels and functional areas is
integral to the company‘s human resource philosophy. As a part of this, Maruti
Udyog sends its workers, supervisors and engineers to Suzuki factories in Japan for
on-the-job training programs. Varying from one month to two years, these
programs are not only aimed at enhancing technical skills but also inculcating the
Japanese way of working and facilitating cross-cultural exchange. Management
training programs focusing on leadership and change management were organized
by the Company for all departmental heads.
Apart from this the Company also has a well-structured, one yearlong training-
cum-orientation program for new campus recruits.
In light of mounting competitive pressures, a priority area for Maruti is to
rationalize and redesign its manpower needs to transform itself into a lean and
competitive organization. To this end, Maruti offered a Voluntary Retirement
Scheme (VRS) to its employees in the year under review. This offer was accepted by
1,251 employees, and followed an earlier VRS offer made in 2001-02, which was
accepted by 1,050 employees.
As on 31 March 2004, Maruti Udyog has 3,334 employees. Industrial relations
remained cordial throughout the year and not a single day‘s work was lost due to
14
strikes or disputes. During 2004-05, a five year wage settlement agreement was
signed by MUL with its workers‘ union. Apart from bringing in the concept of
cost to company in the remuneration scheme for workers, this agreement.
INFORMATIONTECHNOLOGY
Since its inception 20 years ago, Maruti Udyog has made concerted efforts to
leverage innovative and cutting-edge Information Technology (IT) tools to enhance
operational efficiencies. The IT initiative of the company started in 1983 with the
implementation of a booking system for its vehicles. With growing business
complexities, IT tools have now found use across all areas of operation including
marketing and sales, finance, plant and production management, raw material and
spare parts management.
As mentioned earlier Maruti has the widest network of dealer comprises dealership
showrooms, workshops and authorized service stations spread across the country.
Currently transactions with these dealers are through a centralized ‗extranet‘, which
allows dealers to log in and transact business in an online mode. While this system
has proved to be effective, to further enhance operational efficiencies, the company is
in the process of launching a first-of-its-kind Dealer Management System (DMS).
This system — implemented in Application Service Providing (ASP) mode — will
provide real-time information on all transactions between dealers and the company.
It would bring in ‗downstream-visibility‘ into the distribution network, and
standardize service delivery at customer touch points.
The system is presently undergoing pilot-testing, and is expected to be operational
by November 2004.
15
Maruti has also introduced a Vehicle Tracking System (VTS) at two of its plants. This
acts as an interface between business and shop-floor systems. It enhances shop-floor
efficiencies by providing accurate and timely instructions to the shop-floor, along
with a feedback to the business systems. Going forward, this infrastructure should
provide additional strategic capability of introducing more products and variants on
the same production facilities. VTS along with existing Quality Gate System has
considerably enhanced our quality control systems and has given us an important
competitive advantage in today‘s scenario.
One of the key initiatives on the operations front has been the introduction of E-
Nagare— a system for material scheduling and ordering. This is one of the best
practices inherited from Suzuki, and has significantly smoothened our Just-In-Time
(JIT) operations on the shop-floor.
MUL has also taken up e-sourcing as one of the key focus areas for cost reduction and
improved procurement. The company has successfully used this to significantly
reduce costs of procurement, while bringing in greater transparency into the system.
Going forward, MUL intends to increase procurement through e-sourcing, and is in
the process of deploying a software solution which is integrated with MUL‘s internal
applications.
Knowledge management is another area of focus for MUL. To this end, an intranet
portal using Microsoft Share point software — one of the first six free sites of this
product developed by Microsoft before its launch worldwide — has been
established, and is finding increasing popularity among employees across all levels
and functional areas.
16
PRODUCT PROFILE OF MARUTI SUZUKI INDIA LIMITED
LTD.
ALTO - LET’S GOS
The alto is a great combination of economy, practicality and styling. A runaway
success on the roads of Europe, it exemplifies the benchmark in build, quality and
reliability in a compact car. This is testified by the 24 hour endurance record set
on August 3, 2003 of covering 3082 kms in 24 hours at an average speed of 128
kmph.
17
GRAND VITARA XL – 7 - LIVE THE GRAND LIFE
Live the grand life with the new GRAND VITARA XL –7.
This luxurious 7 seater, 4 wheel drive sports utility vehicle comes equipped with a
powerful V6 engine, 166 bhp of power and 236 Nm of torque. Which enables you
to conquer any terrain with utmost ease? Enjoyed by both the adventurous and
successful, the new restyled Grand Vitara XL –7 is now available in India directly
imported from Suzuki, Japan.
GYPSY – ADVENTURES UNLIMITED
Be it the wild outdoors or the urban jungle, the Gypsy King
glide by with ease. The adventurous streak runs through all the gypsy siblings.
This 1300 cc off – road vehicle combines the raw of 80 bhp (at 6000rpm) with
superb 4 – wheel drive maneuverability and a rugged frame (it‘s available in both
soft and hard top versions). It‘s useful fifth gear, of course, delivers over drive for
on – road cruising.
OMNI – FITS ALL
The Omni is truly India‘s Original Maruti suzuki india
limitedtipurpose Vehicle. Today it is available in six avatars – 5 seater, 8 seater,
cargo, ambulance, CNG and LPG. It meets diverse needs across different user
segments and can double up both as a people carrier and a goods carrier. This
faithful workhouse is easy on the pocket, yet tough on the job.
18
MARUTI 800 - CHANGE YOUR LIFE
It has gone beyond being just a car; it has actually changed the
lifestyles of countless people, by bringing the joy of motoring to millions across
the length and the breadth of the country. Standing testimony to this claim is the
fact that more than 2 millions Maruti 800s have been sold till date. Today, India
best selling continues to be the final word on value and economy at the entry-level
segment.
WAGON R-INSPIRIED ENGINEERING
The Wagon R‘S original tall body design, spaciousness,
ergonomically designed interior and flexible seating all set it apart from other
cars. It complements the buyers unique personality enables him to live a maruti
suzuki india limitedti-dimensional life by the sheer excellence of its engineering
and its versatility.
19
ZEN –SURRENDER TO THE NEW ZEN
If you are looking for a car with drop – dad looks and
unmatched performances, then you need look beyond the Zen. With its new
contemporary and aggressive look, the Zen preserves its core values of driver
appeal, unmatched reliability and economy. 600000 satisfied customers in India
and around the world bear testimony to this fact.
SWIFT- YOU ARE THE FUEL
The hot looks, sexy interiors, the automatic climate control, the
air bags, the power steering moreover, all so affordable. The wait is over. Swift
has entered MARUTI SUZUKI INDIA LIMITED‘s portfolio. What are you
waiting for?
A-STAR-STOP @ NOTHING
Powered by state of art 998 cc engine, it‘s the best fuel efficient
car in its category with, mileage coming around 20km per liter.
SX-4 – MEN ARE BACK
Revolutionary European design, world class ―drive by wire‖ .Most
spacious in its class, Steering mounted audio controls; with maximum ground
clearance, high on safety with dual airbags.
20
SWIT DZIRE- THE HEART CAR
A car having everything you desire stunning looks, luxurious
interiors, enough power to capture your heart. Just slide in desire and take it for a
spin. Its sure steal many of hearts including yours.
Ritz -“Live the Moment”
Model of 2009 known by the name Suzuki splash having attractive
back with maximum ground clearance
OBJECTIVE OF THE COMPANY
Maruti‘s marketing objective is to continually offer the customer
new products and services that: reduce the customer‘s cost of ownership of their
cars; and anticipate and address the customer‘s needs and preferences in all
aspects and stages of car ownership, to provide what they refer to as the ―360
degree customer experience.‖
They sell ten models with more than 50 variants in segments A, B, C, and utility
vehicle segment of the Indian passenger car market. Of these, they manufacture
nine models and import the Grand Vitara as a completely built unit from Suzuki in
Japan. Their models and variants are designed to address the changing demands of
the market and are periodically upgraded in technology, styling and features. To
take advantage of the brand recognition associated with their products, they retain
the brand name of the product through various stages of product upgrades over
time. For example, the version of the Maruti 800 brand currently sold in the
21
market is a significantly upgraded version, in terms of technology, design and
styling, of the Maruti 800 launched in 1983.
GRADE CAR
A Maruti 800
A OMNI
B Zen
B Wagon R
B Alto
C D zire
C SX4
C EECO
C SWIFT
Utility Vehicle GYPSY KING
Utility Vehicle GRAND VITARA
4Ps:-
 Product
 Price
 Place
 Promotion
22
Product Strategy:-
 Portfolio of 12 products
 Five product lines
Product Line Products
A1 800
A2 Alto, Zen ,Wagon –R, Swift, A-star
A3 D ZiRE, Sx4
SUV Vitara, Gypsy
C - Class Omni, EECO
Price Strategy:-
The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti – 800
is the lowest price car of this company. Alto, Omni, Wagon R, are also the low
price car of the company, Zen & Esteem are the mid price car of the company. But
Grand Vitara is the high price model of the company. The price of car is decided
according to its product variety, quality, design etc.
Place strategy:-
600 New car sales outlets covering 393 cities.
265 ‗Maruti True Value‘ outlets spread across 166 cities.
2628 Maruti Authorized Service Stations, covering 1220 cities.
Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat
23
Suggested Place strategy:-
400 new car sales outlets in next three years.
S150 new true value shops in next three years.
1200 new Maruti Authorized Service Stations in next three years.
Tie up with other distributors for Exports.
Promotion Strategy:-
Advertising
 TV Ads
 Print Ads
 Radio Ads
SWOT Analysis:-
24
STRENGTHS
 Bigger name in the market
 Trust of People
 Maruti suzuki India limited Ltd. is the market leader for more than a
decade.
 Has a great dealership chain in the market.
 Better after sales service
 Low maintenance cost of vehicle
WEAKNESSES
 Exports are not that good.
 Lesser diesel models in the market compare to others
 Global image is not that big
OPPURTUNITIES
 Great opportunities to go global with success of Swift and SX4 allover
 Introduction of more diesel models. The diesel car segment is growing
 Opportunity to grow bigger by entering into bigger car markets
 Already a market leader so great opportunity to be the king of market in
every stage of industry
25
THREATS
 Foreign companies entering market; so a bigger threat from
MNCs.
 To the market share, as many big names are coming in the industry
 There is hardly any diesel models
Portfolio Analysis
26
MATRIX Of MARUTI SUZUKI
STAR: The Company has long run opportunity for growth and profitability. They
have high relative market share and high Growth rate. SWIFT, SWIFT DESIRE
AND ZEN ESTILO is the fast growing and has potential to gain substantial profit
in the market.
QUESTION MARK: there are also called as wild cats that are new products with
potential for success but there cash needs are high And cash generation is low. In
auto industry of MARUTI SX4, GRAND VITARA, ASTAR there has been
improve the organization reputation
As they want successful not only in Indian market but as well as in global market.
CASH COW: It has high relative market share but compete in low growth rate as
they generate cash in excess of their needs.
MARUTI 800, ALTO AND WAGNOR have fallen to ladder 3 & 4 due to
introduction of ZEN ESTALIO and A STAR.
DOG: The dogs have no market share and do not have potential to bring in much
cash. BALENO, OMINI, VERSA There business have liquidated and trim down
thus The strategies adopted are that are harvest, divest and drop.
BCG matrix can serves as a simple tool for viewing a corporation‘s business
portfolio at a glance , and may serves as a starting point for discussing resource
allocation among strategic business units.
27
28
Literature
Review
29
LITERATURE REVIEW
Customer satisfaction, as a construct, has been fundamental to marketing for over
three decades. As early as 1960, Keith (1960) defined marketing as ―satisfying the
needs and desires of the consumer”. Hunt (1982) reported that by the 1970s,
interest in customer satisfaction had increase to such an extent that over 500
studies were published. This trend continued and by 1992, Peterson and Wilson
estimated the amount of academic and trade articles on customer satisfaction to be
over 15,000.
Several studies have shown that it costs about five times to gain a new customer as
it does to keep an existing customer (Naumann, 1995) and this results into more
interest in customer relationships. Thus, several companies are adopting customer
satisfaction as their operational goal with a carefully designed framework. Hill and
Alexander (2000) wrote in their book that ―companies now have big investment in
database marketing, relationship management and customer planning to move
closer to their customers”. Jones and Sasser (1995) wrote that ―achieving customer
satisfaction is the main goal for most service firms today‖.
Increasing customer satisfaction has been shown to directly affect companies‘
market share, which leads to improved profits, positive recommendation, lower
marketing expenditures (Reichheld, 1996; Heskett et al., 1997), and greatly impact
the corporate image and survival (Pizam and Ellis, 1999).
Parker and Mathew (2001) expressed that there are two basic definitional
approaches of the concept of customer satisfaction. The first approach defines
satisfaction as a process and the second approach defines satisfaction as an
30
outcome of a consumption experience. These two approaches are complementary,
as often one depends on the other.
Customer satisfaction as a process is defined as an evaluation between what was
received and what was expected (Oliver, 1977, 1981; Olson and Dover, 1979; Tse
and Wilton, 1988), emphasizing the perceptual, evaluative and psychological
processes that contribute to customer satisfaction (Vavra, 1997, p. 4).
Parker and Mathews (2001) however noted that the process of satisfaction
definitions concentrates on the antecedents to satisfaction rather than satisfaction
itself.
Satisfaction as a process is the most widely adopted description of customer
satisfaction and a lot of research efforts have been directed at understanding the
process approach of satisfaction evaluations (Parker and Mathews, 2001). This
approach has its origin in the discrepancy theory (Porter, 1961), which argued that
satisfaction is determined by the perception of a difference between some standard
and actual performance.
Cardozo (1965); and Howard and Sheth (1969) developed the contrast theory,
which showed that consumers would exaggerate any contrasts between
expectations and product evaluations.
Olshavsky and Miller (1972); and Olson and Dover (1979) developed the
assimilation theory, which means that perceived quality is directly increasing with
expectations. Assimilation effects occur when the difference between expectations
and quality is too small to be perceived.
Anderson (1973) further developed this theory into assimilation-contrast theory,
which means if the discrepancy is too large to be assimilated then the contrast
effects occur. The assimilation-contrast effects occur when the difference between
31
expectations and quality is too large to be perceived and this difference is
exaggerated by consumers.
According to Parker and Mathews (2001), the most popular descendant of the
discrepancy theories is the expectation disconfirmation theory (Oliver, 1977,
1981), which stated that the result of customers‘ perceptions of the difference
between their perceptions of performance and their expectations of performance.
Positive disconfirmation leads to increased satisfaction, with negative
disconfirmation having the opposite effect. Yi (1990) expressed that customers
buy products or services with pre-purchase expectations about anticipated
performance, once the bought product or service has been used, outcomes are
compared against expectations. If the outcome matches expectations, the result is
confirmation. When there are differences between expectations and outcomes,
disconfirmation occurs. Positive disconfirmation occurs when product or service
performance exceeds expectations. Therefore, satisfaction is caused by positive
disconfirmation or confirmation of customer expectations, and dissatisfaction is the
negative disconfirmation of customer expectations (Yi, 1990).
While several studies support the disconfirmation paradigm, others do not. For
instance, Churchill and Surprenant (1982) found that neither disconfirmation nor
expectations had any effect on customer satisfaction with durable products.
Weiner (1980, and 1985); and Folkes (1984) proposed the attribution theory,
which stated that when a customer purchases a product or service, if the
consumption is below expectation, the customer is convinced that the supplier
causes the dissatisfaction. The complaining customer is focused on restoring
justice and the satisfaction outcome is driven by perceived fairness of the outcome
of complaining.
32
Westbrook and Reilly (1983) proposed the value-percept theory, which defines
satisfaction as an emotional response caused by a cognitive-evaluative process,
which is the comparison of the product or service to one's values rather than an
expectation. So, satisfaction is a discrepancy between the observed and the desired.
Fisk and Young (1985); Swan and Oliver (1985) proposed the equity theory, which
stated that individuals compare their input and output ratios with those of others
and feel equitable treated. Equity judgement is based on two steps; first, the
customer compares the outcome to the input and secondly, performs a relative
comparison of the outcome to the other party.
Pizam and Ellis (1999) reported that there are two additional distinct theories of
customer satisfaction apart from the seven aforementioned ones and these include:
1. Comparison-level
2. Generalized negativity; and
The outcome approach of the customer satisfaction is defined as the end-state
satisfaction resulting from the experience of consumption. This post- consumption
state can be an outcome that occurs without comparing expectations (Oliver,
1996); or may be a cognitive state of reward, an emotional response that may occur
as the result of comparing expected and actual performance or a comparison of
rewards and costs to the anticipated consequences (Vavra, 1997, p. 4).
Furthermore, Parker and Mathews (2001) expressed that attention has been focused
on the nature of satisfaction of the outcome approach which include:
1. Emotion - Satisfaction is viewed as the surprise element of product or service
purchase and or consumption experiences (Oliver, 1981), or is an affective
response to a specific consumption experience (Westbrook and Reilly, 1983). This
acknowledges the input of comparative cognitive processes but goes further by
33
stating that these may be just one of the determinants of the affective ―state‖
satisfaction (Park and Mathews, 2001).
2. Fulfillment –The theories of motivation state that people are driven by the desire
to satisfy their needs (Maslow, 1943) or by their behaviour aimed at achieving the
relevant goals (Vroom, 1964). However, satisfaction can be either way viewed as
the end-point in the motivational process. Thus ―consumer satisfaction can be seen
as the consumer's fulfillment response‖ (Rust and Oliver, 1994, p. 4).
3. State – Oliver (1989) expressed that there are four framework of satisfaction,
which relates to reinforcement and arousal. ―Satisfaction-as-pleasure‖ results from
positive reinforcement, where the product or service is adding to an aroused
resting state, and ―satisfaction-as-relief‖ results from negative reinforcement .In
relation to arousal, low arousal fulfillment is defined as ―satisfaction-as
contentment‖, a result of the product or service performing adequately in an
ongoing passive sense. High arousal satisfaction is defined as ―satisfaction as
either positive (delight) or negative surprise‖ which could be a shock (Rust and
Oliver, 1994).
34
Company
Profile
35
COMPANY PROFILE
Maruti Suzuki India Limited
Traded as
BSE: 532500
NSE: MARUTI
BSE SENSEX Constituent
Industry Automotive
Predecessor Maruti Udyog Limited
Founded 1981
Headquarters New Delhi, India
Key people
R. C. Bhargava (Chairman)
Kenichi Ayukawa (Managing Director & CEO)
Products Automobiles
Production output 1,429,248 units (2016)
Revenue 58,612 crore (US$8.7 billion) (2016)
Net income 4,630.90 crore (US$690 million) (2016)
Number of employees 12,900 (2015)
Parent Suzuki Motor Corporation
Website www.marutisuzuki.com
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an
automobile manufacturer in India. It is a subsidiary of Japanese automobile and
motorcycle manufacturer Suzuki Motor Corporation.As of January 2017, it had a
market share of 51% of the Indian passenger car market. Maruti Suzuki
36
manufactures and sells popular cars such as the Ciaz, Ertiga, Alto, Swift, Celerio,
Swift Dzire and Omni.The company is headquartered at New Delhi.In February
2012, the company sold its ten millionth (ten million = one crore) vehicle in India.
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by
the lack of an efficient public transport system. Suzuki Motor Company was
chosen from seven prospective partners worldwide. This was not only due to their
undisputed leadership in small cars but also to their commitment to actively bring
to MUL contemporary technology and Japanese management practices (which had
catapulted Japan over USA to the status of the top auto manufacturing country in
the world). A license and a Joint Venture agreement were signed between Govt of
India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in
Oct 1982. The objectives of MUL then were: Modernization of the Indian
Automobile Industry, Production of fuel-efficient vehicles to conserve scarce
resources, Production of large number of motor vehicles which was necessary for
economic growth.
The Revolution
Maruti created history by record production in 13 months. On 14 December 1983,
the then Prime Minister of India, Mrs. Indira Gandhi, handed over the keys of the
first car to Mr. Harpal Singh of Delhi. Volume targets were routinely exceeded,
and in March 1994, it became the first Indian company to produce over one million
vehicles, a landmark yet to be achieved by any other car company in India. Maruti
is the highest volume car manufacturer in Asia, outside Japan and Korea, having
produced over 3.5 million vehicles by December 2001. Maruti is one of the most
successful automobile joint ventures, and has made profits every year since
37
inception till 2000-01. In 2000-01, although we generated operating profits on an
income of Rs 92.5 billion, high depreciation on new model launches resulted in a
book loss. We are again on track for profits in 2001-02, with a profit of Rs 300
million in the first half. In this period, sales were increased by 5.3%, against an
industry decline of 6.1 %. We revolutionized the wav Indians looked at cars. "No
other car company so completely dominates its home market" - (The Economist).
Despite there being 11 companies now in the passenger car market, Maruti holds
about 60 % of the total market share. MUL is also the first and only car company
in the world to lead its home market in terms of both market share and in the JD
Power Customer Satisfaction study (JD Power Asia Pacific 2000 India Customer
Satisfaction studies).
Transfer of Technology
Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative
that the transfer of contemporary technology from our partner Suzuki is a smooth
process. Great stress is laid on training and motivating the people who maintain the
equipment, since the best equipment alone cannot guarantee high quality and
productivity. From the beginning it was a conscious decision to send people to
Suzuki Motor Corporation for on-the-job training for line technicians, supervisors
and engineers. This helps them to imbibe the culture in a way that merely
transferring technology through documents can never replicate. At present 20 % of
our workforce is trained under this program.
Our Ethos
Our employees are our greatest strength and asset. It is this underlying philosophy
that has molded our workforce into a team with common goals and objectives. Our
Employee-Management relationship is therefore characterized by: Participative
38
Management, Team work, Kaizen, Communication, Information sharing, and an
open office culture for easy accessibility to implement this philosophy. We have
taken several measures like a flat organizational structure i.e. there are only three
levels of responsibilities ranging from the Board Of Directors, Division Heads to
Department
Heads. Other visible features of this philosophy are common uniforms (at all
levels), and a common canteen for all. This structure ensures better communication
and speedy decision making processes. It also creates an environment that builds
trust, transparency and a sense of belonging amongst employees.
PERFORMANCE
In more ways than one, the year 2004-05 was a watershed year for Maruti Udyog
Limited (MUL). The company has consolidated and initiated a new growth
momentum. There have been several developments, of which it is useful to begin
with three.
First, driven by renewed vigor and aggression in the market, Maruti recorded its high-
est ever sales of over 4.72 lack vehicles in the domestic & export markets which resulted
in gross sales revenue of Rs.112,840 million — a growth of 25.8 per cent over 2003-
04. It is the highest top-line growth in the last seven years.
Second, this high sales growth, coupled with significant improvements in operational
efficiencies, has translated into much higher returns on investment. Earnings per share
(EPS) more than trebled from Rs.5.14 in 2003-04 to Rs.18.77 in 2004-05.
39
Third, the Government of India divested a majority of its shares through an initial
public offer(IPO) and made way for greater participation from you — the shareholders
– in the fortunes of India‘s leading passenger car manufacturer.
In a nutshell, therefore, 2004-05 marks the beginning of a new journey for your
company, as it restructured itself in the face of stiff competition and entered a
new high growth phase.
The sharp revival in the Indian economy — from 4 per cent GDP growth in 2003-04
to 8.2 per cent in 2004-05 — has definitely assisted your company in increasing
revenue. This is the highest GDP increase recorded by India since the advent of
economic liberalization, and the country has become one of the fastest growing
economies of the world .This has considerably increased per capita disposable
income which, coupled with much easier availability of significantly cheaper
consumer finance, has driven automobile sales.
Historically, the fortunes of automobile industries across the globe are strongly
correlated with macro-economic parameters and the performance of the industrial
sector. Chart A plots growth in GDP, industry, passenger vehicle (PV) sales volumes
and total automobile sales volumes – and emphasizes this correlation. In 2004-05,
the Indian passenger car and multi-utility vehicles market finally reached
efficient scales of nearly a million. Although the improved economic environment
helped growing automobile sales, it was not a totally smooth drive for the Indian
automobile industry. An increase in the number of players and models has resulted
in fierce competition — driving down prices across all segments. The industry also
40
witnessed significant rise in prices of key raw materials like steel, rubber and
plastics. Thus, profit margins were under pressure.
Maruti has always believed in size and spread. When the Indian automobile industry
was reconciled to around 40,000 cars in early 1980‘s, MUL was the first company
that aspired to sell 100,000 cars a year. The aspiration of being the market leader
with high sales volume continues to be intrinsic to your company‘s philosophy.
This belief has held the company in good stead during 2004-05 — where the
strategy of pushing volume growth resulted in higher margins due to the positive
effects of better capacity utilization. Improved operational
efficiencies, which are largely due to the transfer of technology, systems and
work culture from MUL‘s majority shareholder.
Suzuki Motor Corporation (SMC) — has also contributed to the improved returns
on investments. In 2004-05, the company has had record growth in bottom-line
and return on investments. Here are some numbers.
Net profit margin (PAT/total income) increased from 2 per cent in 2003-04 to
5.6 per cent in 2004-05.
Return on average capital employed (ROCE) increased from 9.9 per cent in
2003-04 to 22.3 per cent in 2004-05.
Return on average net worth (RONW) increased from 5.2 per cent in 2003-04 to
16.5 per cent in 2004-05.
Earnings per share (EPS) increased from Rs.5.14 in 2003-04 to Rs.18.77 in
2004-05, while cash EPS increased from Rs.17.79 in
2003-04 to Rs.38.39 in 2004-05.
41
MUL also witnessed a key structural change during 2004-05. The company was
originally set up as a joint venture between the Government of India (GOI) and SMC
to provide the average Indian with a reliable and affordable car. Today, 20 years
hence, MUL has come a long way from charting the initial growth of the Indian
automobile industry to becoming one of India‘s leading business organizations
-which has also promoted overall industrial growth through its linkages with
vendors. GOI played a key role in supporting Maruti‘s growth. In 2004-05, GOI
divested a bulk of its shares in the company to the public.
GOI offered 72,243,300 equity shares, which is 25 per cent of the company‘s share
capital, for sale to the public through the book-building route. Even in a somewhat
bearish stock market, the issue was fully subscribed within three hours of its
opening. In fact, it was over subscribed nearly 10 times at the floor price.
Encouraged by the overwhelming response, GOI exercised the green-shoe option,
and offloaded an additional 10 per cent of the issue size (equivalent to 7,224,300
equity shares).
Thus, MUL is now a listed company in Indian stock exchanges (Bombay Stock
Exchange & National Stock Exchange) with Suzuki Motor Corporation having 54.2
per cent share ownership. Today, GOI owns 18.3 per cent of MUL‘s ordinary shares,
while 27.5per cent is in public hands.
MUL is a company which is constantly reinventing itself in a sector that is on the
move. In the course of the following sections, we shall discuss markets, operations
and financials of Maruti during 2004-05, and analyze the rapid external and
internal transformations in its business. All data pertaining to markets is based on
figures released by Society of Indian Automobile Manufacturers (SIAM).
42
PRODUCTS & SERVICES
MARUTI 800
ECONOMY
Great technology enables the Maruti 800 to deliver great fuel efficiency. The
Maruti 800 has topped every fuel efficiency survey that has been conducted in the
past. The Maruti 800 has the lowest fuel cost per kilometer of any petrol car in the
country with a cost of Rs1.94 per kilometer.This confirms the position of the
Maruti 800 as the most fuel efficient petrol car in the country and Maruti also
launched their LPG model which is more economic than others.
43
MARUTI OMNI
FOR THE FAMILY
This car position itself in the mind of consumer as a family car. The punch line of
the car is ―total solution of the entire family‖
Features are:
MPFI Engine
The multi-point fuel injected engine helps to lower emissions and achieve greater
fuel efficiency.
With 37 bhp @ 5000 rpm, you have greater pulling power. A torque of 6.32 kgm
@ 3000 rpm ensures better climbing power and lesser gear changes. In other
words, less fatigue.
The MPFI engine also meets all the stringent Euro II emission norms
SPACE
Stretch out. Open up. Enjoy the luxury of space inside the Omni. The ample
headroom and legroom make long rides comfortable and enjoyable. Reclining front
seats with adjustable head restraints let you relax completely. With its ample
44
luggage space, the Omni is equipped for anything. Pack in your family, your group
of friends, your luggage, your golfing gear, your picnic hamper…all can fit in
snugly.
MARUTI ALTO
Features are:
MPFI ENGINE
Plenty of power, great mileage and low emission make the Alto the perfect choice
for Indian roads. The fuel efficiency of the Alto is better than any other vehicles in
its class.
The 16x4 hypertech MPFI engine delivers unadulterated power, begging for fun.
The 4-valves per cylinder MPFI engine mated with a 5-speed gearshift and a 16-bit
on-board computer allows the Alto to effectively combine power with optimal fuel
efficiency
RELIABILITY
Here's another first by ALTO, which has been setting records since its introduction
in India!
45
Alto becomes the first Indian car to undergo a 24 hours endurance test and sets 13
national records in the process.
Wagon R
COMFORT
The smarter race knows exactly how to take the stress out of driving and push
driving comfort to the max. Full flat folding front seats and reclining rear seats
allow you to stretch yourself during long drives. This ensures that you travel in
maximum comfort as compared to cramped seating arrangements in other cars.
The McPherson strut suspension in the front and coil springs at the rear ensures a
smooth comfortable drive. It's not just comfort; Wagon R also has a 1061cc MPFI
low friction engine
SPACE
Nothing cramps the style of the smarter race. That‘s why it prefers the Wagon R.
Tall body, high seats and wide opening doors make it easy to get in and get out.
Seven cm taller than the Santro, the Wagon R offers more headroom, amazing
spaciousness and a commanding driving position. The split rear seating
46
arrangement along with fully reclining front and the reclining rear seats gives a
first class airline seating comfort.
The Wagon R comes with an extra large boot space, which is possible because of
its unique design that maximizes space on a compact platform. Caution, safety and
protection are integral to a smarter mindset. And the Wagon R is designed to
satisfy every concern. Just check out the battery of safety features:
Dual side-impact beams in the front and rear doors protect you from lateral
collisions.
A long crumple zone shields you in the unlikely event of a frontal collision.
A Roll Control device in the front suspension imparts greater stability and helps
the Wagon R to negotiate sharp curves at high speeds. The 8 inch booster-assisted
brakes equip you well to handle any emergency High seating position gives you a
bigger field of view, allowing you to better anticipate traffic problems before they
occur.
47
MARUTI VERSA
ONE GREAT DRIVE. TWICE THE SAFETY
The Versa is one of the safest cars on the road. It has safety features to guard your
loved ones from road disasters. Side impact absorbing beams in all 4 doors protect
the passengers from side crashes. Front impact beams between the front pillars and
the collapsible steering column shield you from head on collisions.
A steel pipe frame in the rear seat safeguards your family from rear impacts.ELR
seat belts allow free movement, but hold you securely during sudden stoppages.
Height adjustable head restraints, brake boosters and a collapsible steering column
further ensure your safety. When you step out of the house and into your Versa,
rest assured
Sink in. Stretch out. Lie back. Indulge
Versa's the ideal car for long journeys. Now stretch your legs on those long rides.
All seats* have recliners. In SDX, the 2nd row bucket seats can be slid forward or
backward independently to suit the convenience of the passengers.
The high seat position makes it easy to get in and out and gives superior road
visibility. The front row seats have thick insulation between seat and the engine.
48
Two layers of PUF and aluminium sheets act as a buffer, protecting the driver from
engine heat. The rear seat also has a steel pipe frame for protection in the event of
a rear impact.
* Except for the folding seat in 2nd row (DX, DX2) and last row seats.
MARUTI GYPSY
Gypsy Advantage
HILLS
 Higher ground clearance of 210 mm to ensure better off-road handling.
 Diaphragm Spring Clutch designed to with stand higher rotational speeds
requiring less release load ,thereby reducing the wear of parts
SNOW
 The Engine that‘s high on thermal conductivity, and heats up quickly even
under extremely cold conditions. Thus, there are no starting problems even
in the midst of snow.
49
 1300 cc petrol engine — lighter than a diesel engine, resulting in a higher
power to weight ratio. This ensures better control, more power and greater
responsiveness.
DESERT
 The Engine avoids overheating because its high thermal conductivity
enables it to give off heat much faster
STREAMS
 Maximum power of 80 bhp @ 6000 rpm makes for easier crossings.
 4-Wheel drive for better control and more power at the wheel.
 A higher power to weight ratio of 0.0812 ensures faster acceleration
through streams and muddy terrain.
 DIRT TRACKS
DIRT TRACKS
 Steering Damper ensures that shocks encountered from bumps and potholes
are not passed on to the steering wheel. Thus, any loss of control owing to
unexpected obstacles is avoided.
 The Gypsy is a lighter vehicle weighing in at 1020 kg (hard top) and 985
kg (soft top). This is a major advantage on sandy or muddy tracts — a
heavier vehicle will get stuck but the Gypsy keeps
50
SWIFT
The time has come for a new kind of compact car, one that's based on a fresh
approach to design and development, delivers the kind of driver and passenger
experience that places it in a class of its own and has true worldwide appeal.
The time has come for the Maruti Suzuki Swift. The Swift is more eye-catching,
more spacious, more refined, more user-friendly, and a whole lot more enjoyable
to drive than anything else in the compact-car category.
51
SWIFT DZIRE
Maruti Swift DZire
The new Swift DZire joined the Swift and SX4 in Suzuki's Indian lineup and is
intended to "redefine the market and stir excitement in the entry level sedan
segment". It's a good news for the consumers because Swift DZire, which comes
both in diesel and petrol engines, offers luxury feature options including integrated
stereo, steering mounted audio controls, automatic climate control and power
windows as well. Not only this but, it is also equipped with latests safety features
like Dual Airbags, ABS with EDB, collapsible steering column and an i-CATS
anti-theft facility. It's true to say that many of these features are being offered for
the first time in this segment in contemporary car market in India.
Variants Petrol Diesel
LXI LDI
VXI VDI
ZXI ZDI
52
RANGE OF COLOURS
There is a wide range of colors for the customers. The newly Swift DZire is
offered in seven colours:
Arctic White
Silky Silver
Clear Beige
Midnight Black
Bright Red
Azure Gray
Sovereign Blue
Features
Launched as a replacement of the earlier mid size sedan Maruti Esteem, the Swift
DZire is sophisticated in look and features. There is a long list of features of Swift
DZire which includes:
INTERIORS
Steering Mounted Audio Controls:
Swift DZire is equipped with a classy dashboard integrated audio system with
remote control along with powerful speaker.
Automatic Climate Control (ACC):
Whenever you need to choose you temperature, just choose the temperature you
desire and the on-board computers is there to auto-adjust to the weather outside,
maintaining precise cabin temperature.
53
EXTERIORS
Makes Heads Turn with its desirable exteriors:
There is a chiseled shoulder line to complement muscular flared wheel arches and
sills.
Rich chrome styling for an imposing grille and an impressive rear is also there
now.
Stylish wraparound tail lamps fitted.
Powerful clear lens headlamps for superior night visibility is and additional benefit
for you.
Headlight leveling allows you perfect light beam adjustment while driving.
A high mounted stop lamp and a rear bumper-integrated fog lamp give clear
signals to following traffic, thus avoiding accidents.
Comfort & Convenience
Indulge your desire of complete comfort:
All around power windows for improved convenience to the drivers is there now.
Sounds absorbing materials and vibration dampers for a smooth and pleasurable
drive.
Now, there is height adjustable drivers seat for personalized driving position.
A tilt adjustable steering column lets you to set it just right for your height, so you
enjoy a comfortable drive and enjoy the ride even for long distance.
Improved comfort in the back row for those who don't drive but enjoy the ride.
Variants
54
MARUTI SX4
Maruti Suzuki SX4
Maruti Suzuki India Ltd.. is out with it's cutting edge new model, Maruti Suzuki
SX4, a joint venture made by two of automobile czars, Suzuki and Maruti. The
model closely follows the Swift platform, therefore, it is easily available with
exclusive features which makes it all the more desirable among car connoisseurs.
A mini SUV (sport utility vehicles) style, SX4 is almost like a car in it's
construction & comfort context.
The model is found in two- and four- wheel drive. With two variants, the model is
all set to conquer the Indian auto biz market. These are commonly referred as the
"Urban Line" & the "Outdoor Line", where the latter is more like an SUV in
appearance compared to the first one. The car is expected to have 1590cc petrol
engine making it capable enough to deliver a power of 94bhp and a torque of
13.4kgm.
55
OTHER FEATURES
Maruti Suzuki SX4 is assorted with elegant features which makes the model worth
possessing. These are :
ABS
EBD
Dual SRS airbags
Front and rear side doors having impact beams
Seat belt pre-tensioners
Force limiters
Car immobilizer
Anti theft device
Switchable three-mode 4x4 system for :
2WD
4WD Auto mode
4WD Lock mode
Colors
Colors for Maruti Suzuki SX4 are quite unique & contemporary in nature
56
GRAND VITARA
Grand vitara is anew segment entered by maruti. Initially they are just in traditional
cars business Grand vitara is a SUV (sports utility vehicle) with a powerful engine
of 2600 cc. It is fitted with a MPFI diesel engine. It delivers 4x4 drive.
Price charged for grand vitara is between 13.5 lakh to 16 lakh. It is of premium
segment.
57
MARUTI RITZ
Maruti Ritz Review
Maruti Ritz is the perhaps the most awaited and hyped car from Maruti Suzuki.
The car is positioned in the premium A2 market segment, which includes its
compact offering such as Alto, WagnoR, Swift, Zen and the newly-launched A-
Star. Hundai has already launched their i10 model in the Indian market. Now, it‘s
the turn of market leaders maruti Suzuki to respond with a brand new vehicle for
the Indian market. Engineers from Maruti Suzuki worked at close quarters with
their Japanese counterparts in the development of the Ritz, much like that for the
A-Star.MUL seems to be going the complete distance to insure that the Ritz
manages to make an impact on the cut-throat A-2 hatchback space. How far the
new Ritz manages to complete with its counterparts is yet to be seen in the time to
come.
58
Ritz launched in the Indian markets on 15th
May,2009, the Ritz Maruti is one of
the first BS-IV complaint cars of India. Priced at Rs 4 Lakh to Rs.5 Lakh, the Ritz
Maruti has a sporty new look with cool spacy interiors. It's true to say segment in
contemporary car market in India.that many of these features are being offered for
the first time in this segment in contemporary car market in India.
Mruti Ritz LXi
Mruti Ritz VXi
Mruti Ritz VXi ABS
Mruti Ritz ZXi
Mruti Ritz VDi
Mruti Ritz LDi
Mruti Ritz VDi ABS
Features
 Alloy wheels
 Engine immobilizer(iCATS)
 Steering-mounted audio controls
 Front seat under tray
 60:40 rear split seats
 Driver seat / Steering wheel / Seatbelt height adjustor
59
MARKETS
DOMESTIC
Maruti primarily operates in the passenger vehicles market with an emphasis on
passenger cars. During 2004-05, the Indian passenger vehicles market finally
attained critical mass with sales volume of 900,752 units — a 27.4 per cent
increase from 707,198 units sold in 2003-04.
The passenger vehicle market is divided broadly into the following three
categories:
1. Passenger cars
2. Multi-purpose vehicles (MPVs) and 3. Utility vehicles (UVs)
Within these categories, MUL‘s presence in order of prominence and in volume
term is in passenger cars, MPVs or the C segment and UVs or the B segment. Chart B
gives the relative share of each segment in Maruti‘s passenger vehicles sales, where
passenger car sales have been broken up according to the SIAM based classification
(A1-A6).
PASSENGERS CAR
In volume terms, passenger car sales accounted for over 77 per cent of the Indian
passenger vehicles market and grew by 28.6 per cent from 541,491 units in 2003-04
to 696,207 units in 2004-05. Maruti continues to be the market leader. During
2004-05, not only did Maruti grow due to the overall market growth, but also
managed to overcome intense competition and gain market share — which
increased from 50.8 per cent in 2003-04 to 51.4 per cent in 2004-05.
The Indian car market is classified into six categories based on the vehicle
length
60
 1: Mini — upto3,400mm.
 A2:Compac — from 3,401 mm to 4, 000 mm.
 A3: Mid-size — from 4,001 mm to 4,500 mm.
 A4: Executive — 4,501 mm to 4,700 mm.
 A5: Premium — from 4,701 to 5,000 mm.
A6: Luxury — 5,001 mm and above. MUL has presence in three of these categories
namely A1, A2 and A3. Chart C plots MUL‘s sales volumes in these three categories for
2004-05 and 2003-04.
A1 CATEGORY: With its Maruti 800, your company is the only player in this
category. Sales volumes increased by 16.9 per cent during 2004-05. Growth in
this economy segment comes mainly from first-time buyers, and consumers
buying their second car. Penetrating this market requires greater reach in
distribution, and MUL is undertaking many efforts in this direction.
A2 CATEGORY: Maruti has three models in this category — Zen, Alto and
Wagon R. This is the segment where the company faced stiff competition in the last
few years, and had lost some ground due to delays in launching new models. Things
have fundamentally changed in 2004-05. Through a well-crafted strategy, Maruti
consolidated its leadership position in the A2 category. While the category grew by
23.4 per cent in 2004-05, MUL‘s sales volume grew by 46 per cent. Consequently,
the company‘s market share has increased from 40.3 per cent in 2003-04 to 47.7 per
cent in 2004-05.
We believe that given India‘s income distribution and low levels of car penetration,
the A1 and A2 segments will continue to register strong growth as the population
increases its levels of motorization. Today, India is the second largest two-wheeler
61
market in world with sales of around 5 million two wheelers during 2004-05. The
existing stock of two wheelers on India‘s roads is over 50 million. With cheaper
credit facilities, many users of two-wheelers, especially in the higher end
segment, should shift to cars in the A1 category. MUL is the dominant company in
India, which has the models to tap this huge growth opportunity. To penetrate
deeper into the Indian market, MUL has tied up with the State Bank of India (SBI) to
finance cars. SBI has the widest branch network in India, and we expect to reach
parts of the rural markets hitherto uncovered by retail finance availability.
Apart from strengthening the distribution network, key initiatives that drove this
growth during 2004-05 include:
 Strengthening the brand image of the three models through advertisements and
sales promotional initiatives.
 Repositioning Alto in a niche space between A1 and A2 cars. Aggressive pricing
of the Alto was supplemented by a strong ad campaign that targeted the younger
generation. These factors played a role in boosting the volume of Alto sales by
over 125 per cent.
 New variant of the Zen was launched in the latter half of 2003, which
rejuvenated the brand in the market. There were also significant changes in the
Wagon R, which contributed to a volume growth of 59 per cent.
A3 CATEGORY: This is a highly fragmented category with several models, and
no single player has major leadership position. MUL‘s two models —Swift Desire&
SX4— have a combined market share of a little over 10 per cent. Maruti lost some
market share as its volume sales grew by around 30 per cent, against the overall
category‘s growth of 50.8 per cent. In the last quarter of 2004-05, to increase
62
market penetration, MUL revised the prices of SX4 downwards and launched a new
version — the SX4Lxi. We have already started witnessing results from this
initiative.
MULTI-PURPOSE VEHICLES (MPVS)
In this segment, Maruti‘s models include the Omni and the Versa. Here, Maruti is
the dominant player with nearly 100% market share. In 2004-05, the company‘s
sales volumes grew by 14.7 per cent.
During the latter half of the year, Maruti launched an economy model of the
Versa. A new Omni variant, which runs on LPG was launched to tap newer
cargo markets.
Passenger Cars + MPV Market
Passenger cars and MPVs are generally analyzed as a comprehensive segment.
Maruti marginally increased its share in this segment with about 55.2 per cent in
volume terms during 2004-05. Segment with a market share of only 2.5 per cent.
The primary model in this segment is the Gypsy. During April 2003, the
company
Launched its state-of-the-art sports utility vehicle (SUV) — the Grand
Vitara.
Customer Orientation
The growth in sales volumes is a consequence of Maruti‘s continuous stress on
customer focus. Regular interface and feedback from customers is integral to the
company‘s planning process. A tribute to its efforts at improving customer
satisfaction is the top ranking given to the Wagon R in the premium compact
segment, and Esteem in the entry midsize segment, by JD Power‘s survey on
63
IQS. Table 1 gives a snapshot of five top reasons why people buy Maruti cars as
per the JD Power survey.
It is important to note that the rating, which was between 10 and 20 per cent in
2000, has increased to above 50 per cent in 2003. Another interesting point is
that while Maruti‘s
UTILITY VEHICLES (UVS)
Diesel vehicles dominate this segment with a share of around 95 per cent. This
is mainly because vehicles in this segment are by nature heavy and diesel has
a policy determined price advantage over petrol. Since Maruti does not have a
diesel vehicle today, it remains a small player in the MUV economy factor was
the most important reason for purchase in 2000, the company‘s reputation has
become the leading factor determining the customer‘s purchase decision in 2003.
Thus, Maruti has managed to build a strong brand image in the last four years.
MUL‘s technological capabilities are getting greater recognition as in 2003:
―good technology‖ became one of the five leading reasons cited by customers
for buying a Maruti car.
Dealership and Service Network
This high level of customer satisfaction and award of number 1 position in
customer satisfaction by world renowned J D Power survey for four times in a row
can be translated into sales only through a strong dealer network, which actively
reaches out to potential customers. The company has extended its dealership
network to 280 sales outlets, spread over 182 cities, and has a service network of
more than 1900 workshops spread across 1000 cities. The confidence of the dealer
community in Maruti is spelled out by the fact that 28 existing dealers made large
64
investments and opened new showrooms. On the same lines, 59 new workshops
were opened by 51 existing dealers.
The automobile industry has two levels of customers — the dealer and the buyer.
It is imperative to have a robust dealer network to push sales to the final
customer. Therefore, MUL treats its dealers as its first level of customers. In the
last three years, Maruti has worked hard to revitalize and strengthen its dealership
network.
Apart from having a good product, the key factor in developing a good dealer
network is to assure profits for the dealers. Maruti believes that selling a car is only
the beginning of a long-term relationship with the car buyer. During the course of
a car‘s life, there are many services and products which can be offered to the
customer like finance, accessories, insurance, service, spare parts and finally trade-
in resale opportunities.
MUL offers its customers a suite of products through its authorized dealers, which
meets all the requirements during the life cycle of a car. This not only meets a
much larger basket of customer needs but also provides dealers with the
opportunity to generate greater profits. Other services that have been launched
under new business initiatives of Maruti include Maruti Finance (a consortium of
finance companies), Maruti Insurance and the pre owned cars business under the
True Value brand name. In all these businesses, Maruti plays the role of an
aggregator and brand manager. None of the risks related to these businesses are
booked in the books of MUL.
Most dealers have understood the importance and profitability of this new business
model and their strong motivation has resulted in record top-line growth for
2004-05.
65
A key initiative to promote best practices on the dealer front has been the practice
of the balanced scorecard to evaluate dealers. Those dealers who achieve or exceed a
certain score are financially rewarded for their efforts.
The company acknowledges that superior customers experience is only possible if
the dealers‘ employees are adequately trained. To achieve this, training is
undertaken in all areas of dealership operations.
We are proud to state that Maruti‘s dealer‘s technicians were ranked the best among
Suzuki distributors in South-East Asia; and now, an Indian team will participate in
the International Technical Skill Competition in Japan.
EXPORTS
2004-05 was also a landmark year for Maruti in terms of exports. The FOB value of
exports grew by 51.7 per cent from Rs.6,204 million in 200203 to Rs.9,410 million
in 2004-05 — which is the highest ever in Maruti‘s 17 years‘ export history. It is
also the first year in which the company exported over 50,000 vehicles. It exported
51,175 units. Maruti‘s export growth has been driven primarily by 56.8 per cent
increase in exports of Maruti 800, and 60.5 per cent growth in exports of A2 category
cars. Within the A2 category the YG4 (Alto) was a huge success in the European
market, where 34,399 Suzuki Altos were sold during 2004-05. The M-800 and the Zen
were very well accepted in Algeria. We also achieved substantial growth in our exports
to Algeria, Belgium, Bhutan, Chile, Denmark, Germany, Hungary, Nepal, Sri Lanka
and UK. Maruti entered the Gulf market (Saudi Arabia, Kuwait and Qatar) for the first
time with the new Alto GCC specifications, specially designed for this region.
66
RESEARCH
OBJECTIVEs
67
RESEARCH OBJECTIVES
Primary objective:-
1. To study the level of customer satisfaction towards Maruti Suzuki Cars
2. To study the factors those satisfy and delight the customer.
Secondary objective:-
1. To study the problems faced by customers
2. To understand the customers requirement from the Maruti Suzuki.
3. To know customer opinion about Maruti Suzuki‘s vehicles.
68
RESEARCH
METHODOLOGY
69
RESEARCH METHODOLOGY
DESCRIPTIVE RESEARCH:
The research undertaken was a descriptive research as it was concerned with
specific predictions, with narration of facts and characteristics concerning
Customer satisfaction towards Maruti Suzuki in Lucknow City.
SAMPLING DESIGN
The following factors have been decided within the scope of sample design:
UNIVERSE OF STUDY: Universe of the study means all the persons who are the
customers of Maruti Suzuki Lucknow City.
SAMPLE SIZE: A sample of minimum respondents will be selected from various
areas of Lucknow City. An effort was made to select respondents evenly. The
survey was carried out on 100 respondents.
SAMPLING TECHNIQUE: For the purpose of research convenient sampling
technique was used.
SOURCES OF DATA:
The data has been collected from both primary and secondary sources, to
get information regarding the organization and products
PRIMARY DATA: Primary data has been collected through questionnaires. The
questionnaire was mostly related to the brand awareness towards Maruti after sale
services provided by KTL.
70
SECONDARY DATA: Secondary data has been taken from
1) Reports
2) Pamphlets
3) Advertisement
4) Customer database
5) News papers
6) Internet
SAMPLING:
Out of few lakes of Maruti Suzuki customers spread all over India, the customers
of KTL, Lucknow City only are taken as target population for the study.
The sample size of 100 is selected from the database of the company. The
study requires on in depth survey and keen observation in a collecting data
regarding the brand awareness levels of Maruti customers.
Only simple random sampling technique is adopted in selection the
sample. In this technique, each and every unit of the population has on equal
opportunity of being selected in the sample.
71
LIMITATIONS
.
72
LIMITATIONS OF STUDY
 The study suffered from time constraints as it is completed within the short
period of one month.
 Sample size is small.
 Area of the study limited.
 Lack of response.
 The data collected and all the ground work that was felt necessary had to be
done by author itself. Thus huge work force was another constraint in the
study.
 There was dearth of free time in hands of the employees. As such carrying
survey and getting the questionnaire filled correctly on time was
challenging.
 Lack of professional approach since researcher is a student.
 I will have to rely upon the information get from secondary sources and
given by respondents, which may not be fully true.
73
DATA ANALYSIS
AND
INTERPRETATION
74
DATA ANALYSIS AND INTERPRETATION
Table No.-1 Table showing Occupation of Customer-
S.No. Occupation No. of
Respondent
1 Business 44
2 Employee 32
3 Agriculture 14
4 Other 10
Source-Primary data
Interpretation –
It is observed that, 44% customers are doing the Business and 32%
customer are the employee in private or government sector, 14% are
farmer and 10% in other field.
1 Business
44%
2 Employee
32%
3 Agriculture
14%
4 Other
10% Occupation of the customer
75
Table No.2 Table showing Age of the Maruti Suzuki’s Customer

Source-Primary data
Interpretation –
It is observed that, 5% customer’s age is between the 20-25 years, 40% in
26-34 years, 30% in 35-44 years and 2% customers above 45 years.
0
5
10
15
20
25
20 - 25 26 - 34 35 - 44 45 & above
Ist
2nd
Additional
Buyer 20 - 25 26 – 34 35 - 44 45 & above
1st 5 22 8 6
2nd 0 10 14 10
Additional 0 8 8 9
Total 5 40 30 25
76
Table No.-3 Table showing Pre-Purchase satisfaction level of the
customer.
Interpretation –
It is observed that, 50% of the customers are highly satisfied with the Pre-
purchase services
And 5% are dissatisfied with the Pre purchase services.
50%
30%
15%
5%
Pre Purhase Satisfaction of customers
Excellent Good Avverage Below average
Customers remark No. of respondent
Excellent 50
Good 30
Average 15
Below average 5
77
Table No.-4 Table showing customers opinion about the Maruti’s
vehicles for Value for Money
Respondent's Remark No of respondents
Above Expectation 38
As per Expectation 42
Below Expectation 20
Interpretation –
42% of the respondents are of opinion that vehicles are as per expectation
& 20% are of the opinion that the vehicle are below expectation.
38%
42%
20%
Value for Money
Above Expectatiom As per Expectation Below Expectation
78
Table No.-5 Table showing Post-purchase satisfaction level of the
customer.
Customers remark No. of respondent
Excellent 30
Good 45
Average 20
Below average 5
Interpretation –
It is observed that, 45% of the customers are highly satisfied with the Post-
purchase services
And 5% are dissatisfied with the Post purchase services.
30%
45%
20%
5%
Post purchase satisfaction of the
customer
Excellent Good Avverage Below average
79
Table No.-6 Table showing customer priority with respect to
characteristic.
Interpretation –
It is observed that, 26% of the customers preferred Mileages as first
preference and 6% preferred safety.
0%
12%
26%
12%
20%
24%
6%
Customers Pirority with respect to
charesteristic
Aspect
Comfort
Milage
Features
Looks
Price
Aspect No of Respondents
Comfort 12
Mileage 26
Features 12
Looks 20
Price 24
Safety 6
80
Table No.-7 Table showing customer remark about services.
Customers remark No. of Respondent
Excellent 32
Good 50
Average 15
Below average 3
Interpretation –
It is observed that, 55% of the customers are satisfied with the
services, and 3% are not satisfied.
Customer remark about services
32%
50%
15%
3%
Excellent
Good
Avverage
Below average
81
Table No.-8 Table showing customer expectation for improvement in
Maruti Suzuki.
Interpretation –
46% of the customers are of opinion that Maruti should improve in quality.
16%
46%
24%
14%
Customer expectation from Maruti Suzuki
Price
Quality
Service
Other
Customers remark No. of Respondent
Price 16
Quality 46
Service 24
Other 14
82
Table No.-9 Table showing customer’s repurchase intention.
Customers remark No. of Respondent
Yes 74
No 26
Interpretation –
It is observed that, 74% of the customers are ready to repurchase
the Maruti’s car, 26% are not ready to purchase the car.
0
10
20
30
40
50
60
70
80
Yes No
No. of Respondent
No. of Respondent
83
Table No.-10 Table showing customer’s recommendation intention.
Customers remark No. of Respondent
Yes 72
No 28
Interpretation –
It is observed that, 72% of the customers are ready to recommend
the car to the friends and relative, 28% are not ready to recommend the car
to the friends and relatives.
72%
28%
Recommandation to friends/relatives
Yes
No
84
Table No.-11 Table showing customer’s preference about M-Finance.
Customers remark No. of Respondent
Yes 38
No 62
Interpretation –
It is observed that, 62% of the customers are ready to prefer M-
Finance, 28% are not ready to prefer M-Finance.
38%
62%
Customer Preference about M-Finance
Yes
No
85
Table No.-12 Table showing customer’s preference about M-
Insurance.
Customers remark No. of Respondent
Yes 86
No 14
Interpretation –
It is observed that, 86% of the customers are ready to prefer M-
Insurance, 14% are not ready to prefer M-Insurance.
0
20
40
60
80
100
Yes No
86
14
Customer Preference about M-Insurance
No. of Respondent
86
FINDINGS
87
FINDINGS
1. The prospective segment is from the business and self employed class.
2. The company should concentrate on the age group 26-34.
3. Maruti should continue to maintain the standard of the service.
4. It is observed that, 42% of the respondent are of opinion that vehicles
are as per expectation, and 20% are saying its below expectation.
5. Company should improve its post sales service.
6. The customer highest priority is for the mileage.
7. Maruti Suzuki needs to improve its awareness about Add-on-Services
like any time Maruti, MEW etc.
8. Customer are highly satisfied with the service which help in customer
retention
9. It is observed that, 46% of the customers are of opinion that Maruti
should improve in quality, and 16% of the opinion that Maruti should
improve in price.
10. Customers are highly satisfied which help in customer retention.
11. Company has created goodwill among the customers which will help
them to recommend car to friends and relatives.
12. Maruti Suzuki needs to educate the customers about the benefits of M-
Finance. They can motivate the cash customers to offer M-Finance.
13. It is observed that, 86% of the customers are ready to prefer M-
Insurance, 14% are not ready to prefer M-Insurance.
88
RECOMMENDATIONS
89
SUGGESTIONS AND RECOMMENDATIONS
After conducting the survey and knowing the market, I realized that:
 The company should keep in mind the need of young generation.
 Company should improve the promotion strategy of product.
 Company should improve the promotion strategy of Add-on services.
 It will be beneficial for the company to make the warehouse near to the
showroom and there should be roof facility, adequate security facility in the
warehouse.
 The Company should know its customers satisfaction level throughout doing
periodic surveys. Periodic surveys can treat customer satisfaction directly.
 Company should improve/upgrades its employee‘s product knowledge,
market situation, and its competitor‘s knowledge by giving proper training to
employee.
 Company should upgrade or innovate its new product.
 The Company should not only concentrate on the customer satisfaction but
also the company led to monitor their competitor‘s performance in their areas of
operations.
 The Company should make changes according to the other competitors &
according to the customer‘s expectations.
90
CONCLUSION
91
CONCLUSION
It has been observed that most customers are satisfied with pre sales
services similarly most of these customers are dissatisfied with the post sales
service which is the matter of concern for the company. Maruti Suzuki needs to
improve some parts of products specifically the interiors. High customer
satisfaction level helps the company to retain its existing customer as well as
generate new customer through word to mouth publicity.
Customer satisfaction index is a good tool to make improvements in the
products and services of the company. And therefore should utilize carefully &
kept as confidential as possible.
Customer satisfaction provides a leading indicator of consumer purchase
intentions and loyalty." "Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold:"
"Within organizations, the collection, analysis and dissemination of these data send
a message about the importance of tending to customers and ensuring that they
have a positive experience with the company‘s goods and services."
92
BIBLIOGRAPHY
93
BIBLIOGRAPHY
Books:
 Kotler, P (2002),‖Marketing Management‖, Millennium Edition, Tenth
Edition, Prentice Hall, Inc, A Pearson Education Company, Upper Saddle
River, New Jersey ,pp.
 Hair, Joseph, F., Anderson, Rolph, E. and Tatham Ronald, L.
(1987),Multivariate Data Analysis, New 'fork: MacMillan Publishing
Company.
 Helen Woodniffe (1997), "Financial Sewices Marketing", Services
Marketing,Macmillion, Delhi.
 Hill, N., (1996), Hanbook of Customer Satisfaction Measurement, Gower
Press, Aldershot, UK.
 Jayaram, N. and Sandhog, R.S. (1998), Housing in India - Problems, Policy
andperspectives, B.R. Publishing Corporation, Delhi.
 Jeffrey Gitomer (1998), Customer satisfaction is worthless: Customer
loyalty is priceless: How to make customers love you, keep them coming
back and tell everyone they know, Austin TX: Board Press.
Websites
 http://www.carwale.com/marutisuzuki-cars/
 https://en.wikipedia.org/wiki/Maruti_Suzuki
 https://www.cardekho.com/cars/Maruti
 https://www.zigwheels.com/newcars/Maruti-Suzuki
94
ANNEXURE
95
QUESTIONNAIRE
Name: - Sex:-
Address: - Occupation:-
Contact No:-
Age of Respondent
a) <25 b) 25-34
c) 35-44 d) 45 & above
Annual Income
a) 3-5 lack b) 5-8 lack
c) 8-12 lack d) 12 and above
1. Which Model of Maruti are you using?
Car:-………………………………………………………………………………
2. From how many years you are using this model?
a) 0-2 years b) 2-4 years
c) 4-6 years d) 6-8 years
3. Preference for choosing particular car?
a) Comfort b) Mileage
c) Feature d) Performance
e) Looks f) Price
g) Others Please specify:-………
4. Are you satisfied with your car?
a) Yes
b) No
96
If No, give the reasons for the same
a) Comfort b) Mileage
c) Feature d) Performance
e) Looks f) Price
6. Do you prefer M-Insurance over any other insurance option?
a) Yes
b) No
If No, then why:-……………….
7. Do you prefer M-Finance over any other finance option?
a. Yes
b. No
If No, then why:-……………….
8. Do you prefer to get MGA fitted in your car or any local accessories?
a) MGA b) Local
9. What is your Pre-sales experience while purchasing the car?
a) Excellent b) Good
c) Average d) Below Average
10. What is your Post-sales experience after purchasing the car?
a) Excellent b) Good
c) Average d) Below Average
11. Are you satisfied with the features of Maruti?
a) Comfort……. /5 b) Mileage……. /5
c) Feature ……. /5 d) Safety……. /5
e) Looks ……. /5 f) Price……. /5
97
12. How will you rate Maruti on the basis of Value for Money?
a) Above Expectation
b) Below Expectation
c) As per Expectation
13. Do you find easy availability of spare parts?
a) Yes
b) No
14. Would you like to re purchase the Maruti’s car?
a) Yes
b) No
15. Would you like to recommend the Maruti car to your friends/relatives?
a) Yes
b) No
16. In which sector do you think/feel Maruti should improve?
a) Price b) Quality
c) Service d) Others
17. Are you satisfied with the overall service of Maruti?
a) Excellent b) Good
c) Average d) Below Average

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371341891-A-Study-on-Customer-Satisfaction-Towards-Maruti-Suzuki-Cars-in-Lucknow-Citygg.pdf

  • 1. SUMMER TRAINING PROJECT REPORT ON ―A study on Customer Satisfaction towards Maruti Suzuki cars in Lucknow City‖ Towards partial fulfilment of Master of Business Administration (MBA) (Affiliated to Dr. A. P. J. Abdul Kalam Technical University, Lucknow) Industry Guide: Faculty Guide: Mr. Manoj Srivastava Ms. Meetu Pandey (Associate Professor) BBD NITM, Lucknow Submitted by: Kapil Pathak Roll no: 1605470036 M.B.A.3rd Semester SESSION2016-2018 DEPARTMENTOFMANAGEMENT Babu Banarasi Das National Institute of Technology & Management Sector1,AkhileshDasnagar,FaizabadRoad,Lucknow(U.P.),India
  • 2. DECLARATION This is to declare that I, Kapil Pathak student of MBA, have personally worked on the project entitled “A study on Customer Satisfaction towards Maruti Suzuki cars in Lucknow City“. The data mentioned in this report were obtained during genuine work done and collected by me. The data obtained from other sources have been duly acknowledged. The result embodied in this project has not been submitted to any other University or Institute for the award of any degree. Kapil Pathak
  • 3. iii ACKNOWLEDGEMENT The present work is an effort to throw some light on “A Study on Customer Satisfaction towards Maruti Suzuki cars in Lucknow City”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledge the encouragement and guidance received by my organizational guide Ms. Meetu Pandey and other staff members. I convey my heart full affection to all those people who helped and supported me during the course, for completion of my Project Report. (Kapil Pathak)
  • 4. iv PREFACE The Summer Training program is the integral part of MBA curriculum during the course of management; the research is expected to use and apply their academic knowledge and gain a valuable insight into corporate culture with all its environment operational complexities. The research offers a valuable opportunity to the researcher to meet their academic knowledge to the real world situation. I have undertaken commercial department to study about the various activities done in this department in the details, as the result of that I came out with the project title “A study on Customer Satisfaction towards Maruti Suzuki cars in Lucknow City”. In this report I have put my finest efforts to compile the data with utmost accuracy and hope this report will give complete satisfaction regarding the various aspects of marketing.
  • 5. v TABLE OF CONTENT 1. Certificate ii 2. Declaration iii 3. Acknowledgement iv 4. Preface v 5. Introduction 1 6. Literature Review 28 7. Company Profile 34 8. Research objectives 66 9. Research Methodology 68 10. Limitations 71 11. Data Analysis 73 12. Findings 86 13. Recommendations 88 14. Conclusion 90 15. Bibliography 92 16. Annexure 94
  • 7. 2 INTRODUCTION As organizations become increasingly customer focused and driven by demand, the need to gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the most effective way to achieve customer loyalty. Customer satisfaction and customer loyalty share many similar traits. Customer value is the customer‘s perception of the ratio of benefits to what he or she gives to obtain those benefits. The customer Value Triad is a framework used to understand what it is that customers want. The framework consists of three parts: (1) perceived product quality, (2) value-based pricing, and (3) perceived service quality. Customers are satisfied, when value meets or exceeds expectations. If their expectations of value are not met, there is no chance of satisfying them. Figuring out what the customers want, however, is a difficult and complex process. To be able to create and deliver customer value is important to understand its components. On the most basic level, value from a customer‘s perspective is the ratio of benefits to the risks being taken while buying the product. CUSTOMER SATISFACTION AN INSIGHT According to Harold E Edmondson ― Customer Satisfaction‖ seems to appear in print more frequently than any other catch phrase used to describe a new found magic for industrial success. Before we proceed in to the study of the dynamics of Customer Satisfaction it is important to know about, who a customer is and what satisfaction really means.
  • 8. 3 Who really is a Customer? The question of defining who your customers are seems fairly easy particularly if you have segmented your market properly and understand who you are trying to satisfy. However subtlety that frequently goes undetected by many firms is that is that customer set can be divided into two parts, the apparent customer and the user. The apparent customer is the person or group of people who decide what product to buy and basically have control over the purse strings. The user is a person or group who physically uses the product or is the direct recipient of a service. What does satisfaction really mean? As in defining customer above, defining satisfaction also appears simple. However as with customer there is a subtlety that needs addressing. Satisfaction by most definitions simply means meeting the customer‘s requirement. Customer satisfaction is a concept that more and more companies are putting at the heart of their strategy, but for this to be successful they‘re needs to be clarity about, what customer satisfaction means and what needs to happen to drive improvement. Without this, there is a risk that customer satisfaction becomes little more than a good intention, with confused objectives failing to address the real issues for customers, one helpful way to look at the problem is to rephrase the objectives: set the sights on helping the customers meet their goals. Customer satisfaction can be defined in many different ways. Finding the right way for a company depends on understanding your customer and on having a clear vision of the role that customer satisfaction is to play in the strategy. For example, a focus on customer satisfaction can work alongside existing segmentations to support revenue generation from high value customers or it can be a company-
  • 9. 4 wide objective rooted in the brand values. For the former, it may be sufficient to focus on improving customer service, but for the latter a broader definition of customer satisfaction is necessary, closer akin to corporate reputation. Whatever the strategy for customer satisfaction, it must at least include getting the basics right. Failing to achieve this can destroy the reputation as well as losing valuable customers. Every customer, regardless of their economic worth to the business, has the power to influence – positively or negatively – a company‘s reputation. Once the objectives for the customer satisfaction strategy are defined there are a number of steps we can take to make sure the focus on customer satisfaction is effective. Building a company around Customer Satisfaction - With the increase in customer‘s demands and competition it has become a lot more important to base the entire company on customer service. When doing this one must first realize that every member of an organization plays an active role in customer service. This includes both external customers and internal customers within a company. Customer focused organizations focus both on customer satisfaction and profit. Achieving customer satisfaction generates the profit. In these organizations top management has frequent contacts with external customers. The top management uses consultative, participative, and supportive management styles to get through to the customer. The staff focuses all of its attention on satisfying the customer‘s needs. However, the management‘s job is to provide the staff with support necessary to achieve these goals. The other department and staff in the organization that do not have direct contact with the external customers deal exclusively with internal customer satisfaction.
  • 10. 5 The Influence of the salesperson in Customer Satisfaction- In an article titled, ―The influence of salesperson selling behavior on customer satisfaction with products,‖ Brent G.Goff and James S. Boles examine the effects of non-product related construct on customer satisfaction with major retail purchases such as automobiles. The article states that salesperson‘s selling orientation- customer orientation (SOCO) will affect not only consumer satisfaction with the salesperson and dealer, but also indirectly, satisfaction with the product or manufacturer. In the perspectives of both the retailer and the manufacturer, customer satisfaction represents an important issue because it relates to several desirable outcomes. Customer satisfaction leads to future purchases, and repeated purchases of the same product from the same source. In other words, it helps a firm retain its present customers and build loyalty. By helping a buyer obtain product information and providing guidelines about what should be expected during the buying process and use of a product, a salesperson may influence customer expectations concerning the product. Thereby this may reduce the likelihood of dissatisfaction (Grewal and Sharma, 1991). A successful salesperson tailors to the needs of each individual customer. By being customer-oriented, a salesperson is likely to identify with needs of the customer, enabling the salesperson to match his or her presentation to those requirements of the customer. Internal Marketing – how it affects Customer Satisfaction – Successful companies make every effort to ensure satisfaction to their customer by focusing all organizational efforts of the company on providing superior customer service. By doing this these companies hope to retain their existing customers and
  • 11. 6 attract new ones. Only angle of customer satisfaction commonly overlooked is the internal aspect. The internal customer or employee plays a vital role in achieving customer satisfaction and loyalty. Some firm‘s do not understand that the treatment of internal customers becomes the external customers‘ perception of the company. A firm‘s employees or other departments within the organization make up its internal customers. Their job performance affects the firm‘s ability to deliver superior product and customer service (Boone and Kurtz, 1999). When a firm‘s employees are happy at work, their overall attitude and performance towards the customer enhances tremendously. Internal marketing helps members or employees of an organization understand and fulfill their roles in implementing its marketing strategy. Internal marketing not only keeps employees happy, it also shows them how their actions affect the firm‘s ability to achieve customer satisfaction. Customer Satisfaction as part of Service Profit Chain: A Harvard Business Review article outlines the internal process required to drive growth and increase profitability. The article describes the ways in which service quality contributes to success, outlining the steps in the ―Service-profit chain‖: In this world of competition any organization cannot avoid Customers. It has become a necessity for an organization for its survival in any industry so that customer satisfaction plays important role in each an every product life cycle. Customer satisfaction survey for Maruti Suzuki is the project conducted for Maruti Suzuki Automotive pvt. Ltd in city of Amravati. Today Companies are
  • 12. 7 facing toughest competition ever. The intense competition makes the companies to take the necessary steps. To retain their existing customer as well as attract new once. In the environment of advancement of the technology the companies are trying hard to keep the pace with latest development. This survey will help the company to know the customers satisfaction level and feedback of customers at the product in Amravati. It will also help company to know about the competitors. This will help company to know about wants and expectation of customers. The company can also know if there are any problems faced by the customers in that region. This survey has conducted a geographical are in Amravati. O P E R AT I O N S Your company remains steadfast in its quest for achieving higher operational efficiencies. This includes efforts at reducing costs, increasing productivity and maintaining delivery schedules. An example of Maruti‘s strength in operations is its capability to roll out two vehicles every minute from its shop floor. It is on the foundation of such strong operations that MUL offers its customers a suite of 10 models in over 50 variants. In times of unfavorable market conditions, our operational efficiencies have helped us remain competitive. Today, as markets have turned upbeat, we have
  • 13. 8 leveraged this strength to seize opportunities and ensure that profits outpace top- line growth. PRODUCTION Spread over 297 acres, Maruti has three fully integrated production facilities with a combined capability of 500,000 units per annum. Chart D shows the category- wise production of vehicles in 2003-04 and 2004-05. Production increased across all categories of passenger cars — the A1 category grew by 20.4 per cent, A2 grew by 47.7 per cent and A3 grew by 33.8 per cent. Total vehicle production increased by 31.4 per cent from 359,960 units in 2003-04 to 472,908 units in 2004-05. Two years ago, in the backdrop of fierce competition, your company had initiated a program called ‗Challenge 50 — go fast, high quality‘ across its production facilities. The principal philosophy behind this program is to raise our productivity levels by 50 per cent in three years through Kaizen and continuous performance benchmarking. 2004-05 is the last year of this program. As shown in Chart E, this program has already yielded impressive operational gains for the company. A critical parameter that measures efficiency of production systems in the automobile industry is man-hours spent in producing one vehicle. This has improved by around 54 per cent in the last three years. In addition, there has been a considerable reduction in inventory holding period, which dropped from 30 days in 2003-04 to 19 days in 2004-05. SUPPLIER MANAGEMENT In an industry like automobiles, where large part of its components are outsourced, vendor management becomes a critical operation. This has always been a key focus area for your company. When MUL started its operations in India, auto-component
  • 14. 9 suppliers were almost non-existent. Thus, one of the immediate goals was to develop and establish a competent vendor base. This involved providing capital, transplanting technology, and developing production processes for suppliers. Today, this situation has changed. The Indian auto-component industry is increasingly finding global recognition for its production capabilities and low costs. This has considerably eased pressure on the vendor development front. Nevertheless, given the severe competitive pressures over the last few years, vendor management has become critical to the business. Some of the operational issues in this regard are discussed below. 220 at the end of 2004-05. This has helped us enhance supply chain efficiencies by low- ering the time and costs involved in dealing with more vendors. It has also provided our vendors with the requisite volumes to realise economies of scale. Going forward, we plan to have technically and financially capable set of vendors, whose standards match up to those of Maruti. improving quality and productivity of the vendors is a priority area for Maruti. While the average standards have improved significantly over the years, there is still high variability. Hence, improvement in this area is of considerable importance to MUL. our company has been encouraging vendors to develop their own technology and R&D capability. In the long run, Maruti expects its vendors to initiate and develop specialised components on their own, while it focuses energies on its core competency of making better cars.
  • 15. 10 R&D AND TECHNOLOGY R&D activities of Maruti have the twin objectives of reducing product costs by developing capabilities of local vendors and becoming a regional R&D hub for all Suzuki operations. The company has adopted a ‗focused model cost reduction‘ technique. Maruti has been continuously engaging in Value Analysis/Value Engineering (VA/VE) activities across its operations. This initiative has gathered greater momentum this year with the introduction of ‗Junkai‘ (or ‗Focus‘) visits by our engineers to our vendors‘ production facilities. Junkai visits facilitate development of fresh VA/VE ideas for cost reduction and also reduce the cycle time for idea evaluation. In addition, Maruti has started conducting cost workshops with vendors supplying high cost parts. In these workshops, current cost structures of vendors are analyzed in detail and specific cost reduction targets suggested. To help vendors achieve these targets, a team of engineers from Maruti and Suzuki visit their production facilities and develop an action plan to meet these targets. The assistance of vendors‘ collaborators, wherever applicable, is taken to accelerate implementation. The action plan often includes VA ideas, localization of inner parts, and reduction in cost of bought-out parts, yield improvement and process cost reductions. In the year under review, 33 such visits were made. In its early days, the Maruti R&D centre was primarily involved in providing technical assistance to local component manufacturers. Over the years, this centre has developed capabilities for face lifts and body changes of current models. These include styling, clay modeling, computer aided design, prototype making and its evaluation, and stamps / dies designing. All modifications done on the new Zen
  • 16. 11 model introduced by the company in 200304 were carried out in-house by the R&D team. The dies for the new body panels were developed in- house die-shop for the first time. All the changes required in the existing production facilities were also developed in house, resulting in significant reduction in the investment required for these modifications. QUALITY Maruti has raised the bar for quality checks by adopting the ‗Global Customer Audit (GCA)‘ mechanism. The GCA methodology places a great deal of emphasis on delivering products which meet the quality requirements of our customers. In this process, a select number of cars are picked at random everyday and taken through rigorous tests. This includes examining the vehicle in ‗static condition‘ and then in ‗dynamic condition‘ by test driving it under varied road conditions to check all functional parts. The total cycle time for GCA is 95 minutes per vehicle. Based on the GCA feedback, requisite remedial measures are undertaken to ensure that defects are not carried in vehicles which are under production. In the year under review, MUL introduced the concept of ‗Quality Gates‘ across its manufacturing processes. These ‗Quality Gates‘ have been positioned at 110 key locations throughout the manufacturing process, and provide real-time feedback for continuous process improvement by following the concept of ―plan-do- check-act‖. MUL‘s press shop and related functions received the TS 16949 quality certification in 2004-05. While we are proud of this achievement, we believe it is imperative that these high quality standards be shared by our vendors too. To this end, MUL is
  • 17. 12 actively involved in assisting its suppliers to improve their quality practices to TS 16949. We are pleased to report that our initiatives on the quality front have yielded gains:  MUL was ranked No. 1 in the prestigious JD Power Customer Satisfaction Survey, 2003. This No.1 rank is for fourth time in a row — which is a world record for any automobile leader in a country. In 2003, Maruti models topped ‗Initial Quality Study‘ conducted in India by JD Power Asia Pacific. In the highly competitive A2 segment, Wagon R was rated best in overall quality rating, followed by the Zen; while in A3 segment, Esteem achieved top ranking in 2003. In 2004-05, NFO, an international survey agency, ranked Maruti WagonR as no.1 in the ‗Total Customer Satisfaction‘ for Premium Compact segment. HUMAN RESOURCES Maruti‘s most valuable asset has always been, and will continue to be, its people. The successes and accomplishments of the company over the years have been entirely due to the motivation, dedication and commitment of its employees. It has been a constant endeavor of the management to share with its workforce the opportunities and challenges faced in its business operations. This initiative was given a major thrust with organizing a training program for the union working committee members so that the message reached the workmen. Through this training program, management shared its perception of the company‘s future and familiarized the union members with the competitive pressures faced by the company. Subsequently, a one-day training program, ‗Sankalp‘, was launched
  • 18. 13 to cover 100% of our workmen on the global business trends and the ever-increasing competition. The objective was to highlight the need for a change in mindset and approach to business. The Sankalp series will continue through the year to cover the entire workmen population. Encompasses a flexible perquisite basket based compensation package. Going forward, we believe that this agreement would provide us the confidence and strength to keep our costs competitive and bring in greater operational resilience. Developing human resource capabilities across all levels and functional areas is integral to the company‘s human resource philosophy. As a part of this, Maruti Udyog sends its workers, supervisors and engineers to Suzuki factories in Japan for on-the-job training programs. Varying from one month to two years, these programs are not only aimed at enhancing technical skills but also inculcating the Japanese way of working and facilitating cross-cultural exchange. Management training programs focusing on leadership and change management were organized by the Company for all departmental heads. Apart from this the Company also has a well-structured, one yearlong training- cum-orientation program for new campus recruits. In light of mounting competitive pressures, a priority area for Maruti is to rationalize and redesign its manpower needs to transform itself into a lean and competitive organization. To this end, Maruti offered a Voluntary Retirement Scheme (VRS) to its employees in the year under review. This offer was accepted by 1,251 employees, and followed an earlier VRS offer made in 2001-02, which was accepted by 1,050 employees. As on 31 March 2004, Maruti Udyog has 3,334 employees. Industrial relations remained cordial throughout the year and not a single day‘s work was lost due to
  • 19. 14 strikes or disputes. During 2004-05, a five year wage settlement agreement was signed by MUL with its workers‘ union. Apart from bringing in the concept of cost to company in the remuneration scheme for workers, this agreement. INFORMATIONTECHNOLOGY Since its inception 20 years ago, Maruti Udyog has made concerted efforts to leverage innovative and cutting-edge Information Technology (IT) tools to enhance operational efficiencies. The IT initiative of the company started in 1983 with the implementation of a booking system for its vehicles. With growing business complexities, IT tools have now found use across all areas of operation including marketing and sales, finance, plant and production management, raw material and spare parts management. As mentioned earlier Maruti has the widest network of dealer comprises dealership showrooms, workshops and authorized service stations spread across the country. Currently transactions with these dealers are through a centralized ‗extranet‘, which allows dealers to log in and transact business in an online mode. While this system has proved to be effective, to further enhance operational efficiencies, the company is in the process of launching a first-of-its-kind Dealer Management System (DMS). This system — implemented in Application Service Providing (ASP) mode — will provide real-time information on all transactions between dealers and the company. It would bring in ‗downstream-visibility‘ into the distribution network, and standardize service delivery at customer touch points. The system is presently undergoing pilot-testing, and is expected to be operational by November 2004.
  • 20. 15 Maruti has also introduced a Vehicle Tracking System (VTS) at two of its plants. This acts as an interface between business and shop-floor systems. It enhances shop-floor efficiencies by providing accurate and timely instructions to the shop-floor, along with a feedback to the business systems. Going forward, this infrastructure should provide additional strategic capability of introducing more products and variants on the same production facilities. VTS along with existing Quality Gate System has considerably enhanced our quality control systems and has given us an important competitive advantage in today‘s scenario. One of the key initiatives on the operations front has been the introduction of E- Nagare— a system for material scheduling and ordering. This is one of the best practices inherited from Suzuki, and has significantly smoothened our Just-In-Time (JIT) operations on the shop-floor. MUL has also taken up e-sourcing as one of the key focus areas for cost reduction and improved procurement. The company has successfully used this to significantly reduce costs of procurement, while bringing in greater transparency into the system. Going forward, MUL intends to increase procurement through e-sourcing, and is in the process of deploying a software solution which is integrated with MUL‘s internal applications. Knowledge management is another area of focus for MUL. To this end, an intranet portal using Microsoft Share point software — one of the first six free sites of this product developed by Microsoft before its launch worldwide — has been established, and is finding increasing popularity among employees across all levels and functional areas.
  • 21. 16 PRODUCT PROFILE OF MARUTI SUZUKI INDIA LIMITED LTD. ALTO - LET’S GOS The alto is a great combination of economy, practicality and styling. A runaway success on the roads of Europe, it exemplifies the benchmark in build, quality and reliability in a compact car. This is testified by the 24 hour endurance record set on August 3, 2003 of covering 3082 kms in 24 hours at an average speed of 128 kmph.
  • 22. 17 GRAND VITARA XL – 7 - LIVE THE GRAND LIFE Live the grand life with the new GRAND VITARA XL –7. This luxurious 7 seater, 4 wheel drive sports utility vehicle comes equipped with a powerful V6 engine, 166 bhp of power and 236 Nm of torque. Which enables you to conquer any terrain with utmost ease? Enjoyed by both the adventurous and successful, the new restyled Grand Vitara XL –7 is now available in India directly imported from Suzuki, Japan. GYPSY – ADVENTURES UNLIMITED Be it the wild outdoors or the urban jungle, the Gypsy King glide by with ease. The adventurous streak runs through all the gypsy siblings. This 1300 cc off – road vehicle combines the raw of 80 bhp (at 6000rpm) with superb 4 – wheel drive maneuverability and a rugged frame (it‘s available in both soft and hard top versions). It‘s useful fifth gear, of course, delivers over drive for on – road cruising. OMNI – FITS ALL The Omni is truly India‘s Original Maruti suzuki india limitedtipurpose Vehicle. Today it is available in six avatars – 5 seater, 8 seater, cargo, ambulance, CNG and LPG. It meets diverse needs across different user segments and can double up both as a people carrier and a goods carrier. This faithful workhouse is easy on the pocket, yet tough on the job.
  • 23. 18 MARUTI 800 - CHANGE YOUR LIFE It has gone beyond being just a car; it has actually changed the lifestyles of countless people, by bringing the joy of motoring to millions across the length and the breadth of the country. Standing testimony to this claim is the fact that more than 2 millions Maruti 800s have been sold till date. Today, India best selling continues to be the final word on value and economy at the entry-level segment. WAGON R-INSPIRIED ENGINEERING The Wagon R‘S original tall body design, spaciousness, ergonomically designed interior and flexible seating all set it apart from other cars. It complements the buyers unique personality enables him to live a maruti suzuki india limitedti-dimensional life by the sheer excellence of its engineering and its versatility.
  • 24. 19 ZEN –SURRENDER TO THE NEW ZEN If you are looking for a car with drop – dad looks and unmatched performances, then you need look beyond the Zen. With its new contemporary and aggressive look, the Zen preserves its core values of driver appeal, unmatched reliability and economy. 600000 satisfied customers in India and around the world bear testimony to this fact. SWIFT- YOU ARE THE FUEL The hot looks, sexy interiors, the automatic climate control, the air bags, the power steering moreover, all so affordable. The wait is over. Swift has entered MARUTI SUZUKI INDIA LIMITED‘s portfolio. What are you waiting for? A-STAR-STOP @ NOTHING Powered by state of art 998 cc engine, it‘s the best fuel efficient car in its category with, mileage coming around 20km per liter. SX-4 – MEN ARE BACK Revolutionary European design, world class ―drive by wire‖ .Most spacious in its class, Steering mounted audio controls; with maximum ground clearance, high on safety with dual airbags.
  • 25. 20 SWIT DZIRE- THE HEART CAR A car having everything you desire stunning looks, luxurious interiors, enough power to capture your heart. Just slide in desire and take it for a spin. Its sure steal many of hearts including yours. Ritz -“Live the Moment” Model of 2009 known by the name Suzuki splash having attractive back with maximum ground clearance OBJECTIVE OF THE COMPANY Maruti‘s marketing objective is to continually offer the customer new products and services that: reduce the customer‘s cost of ownership of their cars; and anticipate and address the customer‘s needs and preferences in all aspects and stages of car ownership, to provide what they refer to as the ―360 degree customer experience.‖ They sell ten models with more than 50 variants in segments A, B, C, and utility vehicle segment of the Indian passenger car market. Of these, they manufacture nine models and import the Grand Vitara as a completely built unit from Suzuki in Japan. Their models and variants are designed to address the changing demands of the market and are periodically upgraded in technology, styling and features. To take advantage of the brand recognition associated with their products, they retain the brand name of the product through various stages of product upgrades over time. For example, the version of the Maruti 800 brand currently sold in the
  • 26. 21 market is a significantly upgraded version, in terms of technology, design and styling, of the Maruti 800 launched in 1983. GRADE CAR A Maruti 800 A OMNI B Zen B Wagon R B Alto C D zire C SX4 C EECO C SWIFT Utility Vehicle GYPSY KING Utility Vehicle GRAND VITARA 4Ps:-  Product  Price  Place  Promotion
  • 27. 22 Product Strategy:-  Portfolio of 12 products  Five product lines Product Line Products A1 800 A2 Alto, Zen ,Wagon –R, Swift, A-star A3 D ZiRE, Sx4 SUV Vitara, Gypsy C - Class Omni, EECO Price Strategy:- The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti – 800 is the lowest price car of this company. Alto, Omni, Wagon R, are also the low price car of the company, Zen & Esteem are the mid price car of the company. But Grand Vitara is the high price model of the company. The price of car is decided according to its product variety, quality, design etc. Place strategy:- 600 New car sales outlets covering 393 cities. 265 ‗Maruti True Value‘ outlets spread across 166 cities. 2628 Maruti Authorized Service Stations, covering 1220 cities. Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat
  • 28. 23 Suggested Place strategy:- 400 new car sales outlets in next three years. S150 new true value shops in next three years. 1200 new Maruti Authorized Service Stations in next three years. Tie up with other distributors for Exports. Promotion Strategy:- Advertising  TV Ads  Print Ads  Radio Ads SWOT Analysis:-
  • 29. 24 STRENGTHS  Bigger name in the market  Trust of People  Maruti suzuki India limited Ltd. is the market leader for more than a decade.  Has a great dealership chain in the market.  Better after sales service  Low maintenance cost of vehicle WEAKNESSES  Exports are not that good.  Lesser diesel models in the market compare to others  Global image is not that big OPPURTUNITIES  Great opportunities to go global with success of Swift and SX4 allover  Introduction of more diesel models. The diesel car segment is growing  Opportunity to grow bigger by entering into bigger car markets  Already a market leader so great opportunity to be the king of market in every stage of industry
  • 30. 25 THREATS  Foreign companies entering market; so a bigger threat from MNCs.  To the market share, as many big names are coming in the industry  There is hardly any diesel models Portfolio Analysis
  • 31. 26 MATRIX Of MARUTI SUZUKI STAR: The Company has long run opportunity for growth and profitability. They have high relative market share and high Growth rate. SWIFT, SWIFT DESIRE AND ZEN ESTILO is the fast growing and has potential to gain substantial profit in the market. QUESTION MARK: there are also called as wild cats that are new products with potential for success but there cash needs are high And cash generation is low. In auto industry of MARUTI SX4, GRAND VITARA, ASTAR there has been improve the organization reputation As they want successful not only in Indian market but as well as in global market. CASH COW: It has high relative market share but compete in low growth rate as they generate cash in excess of their needs. MARUTI 800, ALTO AND WAGNOR have fallen to ladder 3 & 4 due to introduction of ZEN ESTALIO and A STAR. DOG: The dogs have no market share and do not have potential to bring in much cash. BALENO, OMINI, VERSA There business have liquidated and trim down thus The strategies adopted are that are harvest, divest and drop. BCG matrix can serves as a simple tool for viewing a corporation‘s business portfolio at a glance , and may serves as a starting point for discussing resource allocation among strategic business units.
  • 32. 27
  • 34. 29 LITERATURE REVIEW Customer satisfaction, as a construct, has been fundamental to marketing for over three decades. As early as 1960, Keith (1960) defined marketing as ―satisfying the needs and desires of the consumer”. Hunt (1982) reported that by the 1970s, interest in customer satisfaction had increase to such an extent that over 500 studies were published. This trend continued and by 1992, Peterson and Wilson estimated the amount of academic and trade articles on customer satisfaction to be over 15,000. Several studies have shown that it costs about five times to gain a new customer as it does to keep an existing customer (Naumann, 1995) and this results into more interest in customer relationships. Thus, several companies are adopting customer satisfaction as their operational goal with a carefully designed framework. Hill and Alexander (2000) wrote in their book that ―companies now have big investment in database marketing, relationship management and customer planning to move closer to their customers”. Jones and Sasser (1995) wrote that ―achieving customer satisfaction is the main goal for most service firms today‖. Increasing customer satisfaction has been shown to directly affect companies‘ market share, which leads to improved profits, positive recommendation, lower marketing expenditures (Reichheld, 1996; Heskett et al., 1997), and greatly impact the corporate image and survival (Pizam and Ellis, 1999). Parker and Mathew (2001) expressed that there are two basic definitional approaches of the concept of customer satisfaction. The first approach defines satisfaction as a process and the second approach defines satisfaction as an
  • 35. 30 outcome of a consumption experience. These two approaches are complementary, as often one depends on the other. Customer satisfaction as a process is defined as an evaluation between what was received and what was expected (Oliver, 1977, 1981; Olson and Dover, 1979; Tse and Wilton, 1988), emphasizing the perceptual, evaluative and psychological processes that contribute to customer satisfaction (Vavra, 1997, p. 4). Parker and Mathews (2001) however noted that the process of satisfaction definitions concentrates on the antecedents to satisfaction rather than satisfaction itself. Satisfaction as a process is the most widely adopted description of customer satisfaction and a lot of research efforts have been directed at understanding the process approach of satisfaction evaluations (Parker and Mathews, 2001). This approach has its origin in the discrepancy theory (Porter, 1961), which argued that satisfaction is determined by the perception of a difference between some standard and actual performance. Cardozo (1965); and Howard and Sheth (1969) developed the contrast theory, which showed that consumers would exaggerate any contrasts between expectations and product evaluations. Olshavsky and Miller (1972); and Olson and Dover (1979) developed the assimilation theory, which means that perceived quality is directly increasing with expectations. Assimilation effects occur when the difference between expectations and quality is too small to be perceived. Anderson (1973) further developed this theory into assimilation-contrast theory, which means if the discrepancy is too large to be assimilated then the contrast effects occur. The assimilation-contrast effects occur when the difference between
  • 36. 31 expectations and quality is too large to be perceived and this difference is exaggerated by consumers. According to Parker and Mathews (2001), the most popular descendant of the discrepancy theories is the expectation disconfirmation theory (Oliver, 1977, 1981), which stated that the result of customers‘ perceptions of the difference between their perceptions of performance and their expectations of performance. Positive disconfirmation leads to increased satisfaction, with negative disconfirmation having the opposite effect. Yi (1990) expressed that customers buy products or services with pre-purchase expectations about anticipated performance, once the bought product or service has been used, outcomes are compared against expectations. If the outcome matches expectations, the result is confirmation. When there are differences between expectations and outcomes, disconfirmation occurs. Positive disconfirmation occurs when product or service performance exceeds expectations. Therefore, satisfaction is caused by positive disconfirmation or confirmation of customer expectations, and dissatisfaction is the negative disconfirmation of customer expectations (Yi, 1990). While several studies support the disconfirmation paradigm, others do not. For instance, Churchill and Surprenant (1982) found that neither disconfirmation nor expectations had any effect on customer satisfaction with durable products. Weiner (1980, and 1985); and Folkes (1984) proposed the attribution theory, which stated that when a customer purchases a product or service, if the consumption is below expectation, the customer is convinced that the supplier causes the dissatisfaction. The complaining customer is focused on restoring justice and the satisfaction outcome is driven by perceived fairness of the outcome of complaining.
  • 37. 32 Westbrook and Reilly (1983) proposed the value-percept theory, which defines satisfaction as an emotional response caused by a cognitive-evaluative process, which is the comparison of the product or service to one's values rather than an expectation. So, satisfaction is a discrepancy between the observed and the desired. Fisk and Young (1985); Swan and Oliver (1985) proposed the equity theory, which stated that individuals compare their input and output ratios with those of others and feel equitable treated. Equity judgement is based on two steps; first, the customer compares the outcome to the input and secondly, performs a relative comparison of the outcome to the other party. Pizam and Ellis (1999) reported that there are two additional distinct theories of customer satisfaction apart from the seven aforementioned ones and these include: 1. Comparison-level 2. Generalized negativity; and The outcome approach of the customer satisfaction is defined as the end-state satisfaction resulting from the experience of consumption. This post- consumption state can be an outcome that occurs without comparing expectations (Oliver, 1996); or may be a cognitive state of reward, an emotional response that may occur as the result of comparing expected and actual performance or a comparison of rewards and costs to the anticipated consequences (Vavra, 1997, p. 4). Furthermore, Parker and Mathews (2001) expressed that attention has been focused on the nature of satisfaction of the outcome approach which include: 1. Emotion - Satisfaction is viewed as the surprise element of product or service purchase and or consumption experiences (Oliver, 1981), or is an affective response to a specific consumption experience (Westbrook and Reilly, 1983). This acknowledges the input of comparative cognitive processes but goes further by
  • 38. 33 stating that these may be just one of the determinants of the affective ―state‖ satisfaction (Park and Mathews, 2001). 2. Fulfillment –The theories of motivation state that people are driven by the desire to satisfy their needs (Maslow, 1943) or by their behaviour aimed at achieving the relevant goals (Vroom, 1964). However, satisfaction can be either way viewed as the end-point in the motivational process. Thus ―consumer satisfaction can be seen as the consumer's fulfillment response‖ (Rust and Oliver, 1994, p. 4). 3. State – Oliver (1989) expressed that there are four framework of satisfaction, which relates to reinforcement and arousal. ―Satisfaction-as-pleasure‖ results from positive reinforcement, where the product or service is adding to an aroused resting state, and ―satisfaction-as-relief‖ results from negative reinforcement .In relation to arousal, low arousal fulfillment is defined as ―satisfaction-as contentment‖, a result of the product or service performing adequately in an ongoing passive sense. High arousal satisfaction is defined as ―satisfaction as either positive (delight) or negative surprise‖ which could be a shock (Rust and Oliver, 1994).
  • 40. 35 COMPANY PROFILE Maruti Suzuki India Limited Traded as BSE: 532500 NSE: MARUTI BSE SENSEX Constituent Industry Automotive Predecessor Maruti Udyog Limited Founded 1981 Headquarters New Delhi, India Key people R. C. Bhargava (Chairman) Kenichi Ayukawa (Managing Director & CEO) Products Automobiles Production output 1,429,248 units (2016) Revenue 58,612 crore (US$8.7 billion) (2016) Net income 4,630.90 crore (US$690 million) (2016) Number of employees 12,900 (2015) Parent Suzuki Motor Corporation Website www.marutisuzuki.com Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor Corporation.As of January 2017, it had a market share of 51% of the Indian passenger car market. Maruti Suzuki
  • 41. 36 manufactures and sells popular cars such as the Ciaz, Ertiga, Alto, Swift, Celerio, Swift Dzire and Omni.The company is headquartered at New Delhi.In February 2012, the company sold its ten millionth (ten million = one crore) vehicle in India. Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was not only due to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A license and a Joint Venture agreement were signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives of MUL then were: Modernization of the Indian Automobile Industry, Production of fuel-efficient vehicles to conserve scarce resources, Production of large number of motor vehicles which was necessary for economic growth. The Revolution Maruti created history by record production in 13 months. On 14 December 1983, the then Prime Minister of India, Mrs. Indira Gandhi, handed over the keys of the first car to Mr. Harpal Singh of Delhi. Volume targets were routinely exceeded, and in March 1994, it became the first Indian company to produce over one million vehicles, a landmark yet to be achieved by any other car company in India. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 3.5 million vehicles by December 2001. Maruti is one of the most successful automobile joint ventures, and has made profits every year since
  • 42. 37 inception till 2000-01. In 2000-01, although we generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss. We are again on track for profits in 2001-02, with a profit of Rs 300 million in the first half. In this period, sales were increased by 5.3%, against an industry decline of 6.1 %. We revolutionized the wav Indians looked at cars. "No other car company so completely dominates its home market" - (The Economist). Despite there being 11 companies now in the passenger car market, Maruti holds about 60 % of the total market share. MUL is also the first and only car company in the world to lead its home market in terms of both market share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India Customer Satisfaction studies). Transfer of Technology Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the transfer of contemporary technology from our partner Suzuki is a smooth process. Great stress is laid on training and motivating the people who maintain the equipment, since the best equipment alone cannot guarantee high quality and productivity. From the beginning it was a conscious decision to send people to Suzuki Motor Corporation for on-the-job training for line technicians, supervisors and engineers. This helps them to imbibe the culture in a way that merely transferring technology through documents can never replicate. At present 20 % of our workforce is trained under this program. Our Ethos Our employees are our greatest strength and asset. It is this underlying philosophy that has molded our workforce into a team with common goals and objectives. Our Employee-Management relationship is therefore characterized by: Participative
  • 43. 38 Management, Team work, Kaizen, Communication, Information sharing, and an open office culture for easy accessibility to implement this philosophy. We have taken several measures like a flat organizational structure i.e. there are only three levels of responsibilities ranging from the Board Of Directors, Division Heads to Department Heads. Other visible features of this philosophy are common uniforms (at all levels), and a common canteen for all. This structure ensures better communication and speedy decision making processes. It also creates an environment that builds trust, transparency and a sense of belonging amongst employees. PERFORMANCE In more ways than one, the year 2004-05 was a watershed year for Maruti Udyog Limited (MUL). The company has consolidated and initiated a new growth momentum. There have been several developments, of which it is useful to begin with three. First, driven by renewed vigor and aggression in the market, Maruti recorded its high- est ever sales of over 4.72 lack vehicles in the domestic & export markets which resulted in gross sales revenue of Rs.112,840 million — a growth of 25.8 per cent over 2003- 04. It is the highest top-line growth in the last seven years. Second, this high sales growth, coupled with significant improvements in operational efficiencies, has translated into much higher returns on investment. Earnings per share (EPS) more than trebled from Rs.5.14 in 2003-04 to Rs.18.77 in 2004-05.
  • 44. 39 Third, the Government of India divested a majority of its shares through an initial public offer(IPO) and made way for greater participation from you — the shareholders – in the fortunes of India‘s leading passenger car manufacturer. In a nutshell, therefore, 2004-05 marks the beginning of a new journey for your company, as it restructured itself in the face of stiff competition and entered a new high growth phase. The sharp revival in the Indian economy — from 4 per cent GDP growth in 2003-04 to 8.2 per cent in 2004-05 — has definitely assisted your company in increasing revenue. This is the highest GDP increase recorded by India since the advent of economic liberalization, and the country has become one of the fastest growing economies of the world .This has considerably increased per capita disposable income which, coupled with much easier availability of significantly cheaper consumer finance, has driven automobile sales. Historically, the fortunes of automobile industries across the globe are strongly correlated with macro-economic parameters and the performance of the industrial sector. Chart A plots growth in GDP, industry, passenger vehicle (PV) sales volumes and total automobile sales volumes – and emphasizes this correlation. In 2004-05, the Indian passenger car and multi-utility vehicles market finally reached efficient scales of nearly a million. Although the improved economic environment helped growing automobile sales, it was not a totally smooth drive for the Indian automobile industry. An increase in the number of players and models has resulted in fierce competition — driving down prices across all segments. The industry also
  • 45. 40 witnessed significant rise in prices of key raw materials like steel, rubber and plastics. Thus, profit margins were under pressure. Maruti has always believed in size and spread. When the Indian automobile industry was reconciled to around 40,000 cars in early 1980‘s, MUL was the first company that aspired to sell 100,000 cars a year. The aspiration of being the market leader with high sales volume continues to be intrinsic to your company‘s philosophy. This belief has held the company in good stead during 2004-05 — where the strategy of pushing volume growth resulted in higher margins due to the positive effects of better capacity utilization. Improved operational efficiencies, which are largely due to the transfer of technology, systems and work culture from MUL‘s majority shareholder. Suzuki Motor Corporation (SMC) — has also contributed to the improved returns on investments. In 2004-05, the company has had record growth in bottom-line and return on investments. Here are some numbers. Net profit margin (PAT/total income) increased from 2 per cent in 2003-04 to 5.6 per cent in 2004-05. Return on average capital employed (ROCE) increased from 9.9 per cent in 2003-04 to 22.3 per cent in 2004-05. Return on average net worth (RONW) increased from 5.2 per cent in 2003-04 to 16.5 per cent in 2004-05. Earnings per share (EPS) increased from Rs.5.14 in 2003-04 to Rs.18.77 in 2004-05, while cash EPS increased from Rs.17.79 in 2003-04 to Rs.38.39 in 2004-05.
  • 46. 41 MUL also witnessed a key structural change during 2004-05. The company was originally set up as a joint venture between the Government of India (GOI) and SMC to provide the average Indian with a reliable and affordable car. Today, 20 years hence, MUL has come a long way from charting the initial growth of the Indian automobile industry to becoming one of India‘s leading business organizations -which has also promoted overall industrial growth through its linkages with vendors. GOI played a key role in supporting Maruti‘s growth. In 2004-05, GOI divested a bulk of its shares in the company to the public. GOI offered 72,243,300 equity shares, which is 25 per cent of the company‘s share capital, for sale to the public through the book-building route. Even in a somewhat bearish stock market, the issue was fully subscribed within three hours of its opening. In fact, it was over subscribed nearly 10 times at the floor price. Encouraged by the overwhelming response, GOI exercised the green-shoe option, and offloaded an additional 10 per cent of the issue size (equivalent to 7,224,300 equity shares). Thus, MUL is now a listed company in Indian stock exchanges (Bombay Stock Exchange & National Stock Exchange) with Suzuki Motor Corporation having 54.2 per cent share ownership. Today, GOI owns 18.3 per cent of MUL‘s ordinary shares, while 27.5per cent is in public hands. MUL is a company which is constantly reinventing itself in a sector that is on the move. In the course of the following sections, we shall discuss markets, operations and financials of Maruti during 2004-05, and analyze the rapid external and internal transformations in its business. All data pertaining to markets is based on figures released by Society of Indian Automobile Manufacturers (SIAM).
  • 47. 42 PRODUCTS & SERVICES MARUTI 800 ECONOMY Great technology enables the Maruti 800 to deliver great fuel efficiency. The Maruti 800 has topped every fuel efficiency survey that has been conducted in the past. The Maruti 800 has the lowest fuel cost per kilometer of any petrol car in the country with a cost of Rs1.94 per kilometer.This confirms the position of the Maruti 800 as the most fuel efficient petrol car in the country and Maruti also launched their LPG model which is more economic than others.
  • 48. 43 MARUTI OMNI FOR THE FAMILY This car position itself in the mind of consumer as a family car. The punch line of the car is ―total solution of the entire family‖ Features are: MPFI Engine The multi-point fuel injected engine helps to lower emissions and achieve greater fuel efficiency. With 37 bhp @ 5000 rpm, you have greater pulling power. A torque of 6.32 kgm @ 3000 rpm ensures better climbing power and lesser gear changes. In other words, less fatigue. The MPFI engine also meets all the stringent Euro II emission norms SPACE Stretch out. Open up. Enjoy the luxury of space inside the Omni. The ample headroom and legroom make long rides comfortable and enjoyable. Reclining front seats with adjustable head restraints let you relax completely. With its ample
  • 49. 44 luggage space, the Omni is equipped for anything. Pack in your family, your group of friends, your luggage, your golfing gear, your picnic hamper…all can fit in snugly. MARUTI ALTO Features are: MPFI ENGINE Plenty of power, great mileage and low emission make the Alto the perfect choice for Indian roads. The fuel efficiency of the Alto is better than any other vehicles in its class. The 16x4 hypertech MPFI engine delivers unadulterated power, begging for fun. The 4-valves per cylinder MPFI engine mated with a 5-speed gearshift and a 16-bit on-board computer allows the Alto to effectively combine power with optimal fuel efficiency RELIABILITY Here's another first by ALTO, which has been setting records since its introduction in India!
  • 50. 45 Alto becomes the first Indian car to undergo a 24 hours endurance test and sets 13 national records in the process. Wagon R COMFORT The smarter race knows exactly how to take the stress out of driving and push driving comfort to the max. Full flat folding front seats and reclining rear seats allow you to stretch yourself during long drives. This ensures that you travel in maximum comfort as compared to cramped seating arrangements in other cars. The McPherson strut suspension in the front and coil springs at the rear ensures a smooth comfortable drive. It's not just comfort; Wagon R also has a 1061cc MPFI low friction engine SPACE Nothing cramps the style of the smarter race. That‘s why it prefers the Wagon R. Tall body, high seats and wide opening doors make it easy to get in and get out. Seven cm taller than the Santro, the Wagon R offers more headroom, amazing spaciousness and a commanding driving position. The split rear seating
  • 51. 46 arrangement along with fully reclining front and the reclining rear seats gives a first class airline seating comfort. The Wagon R comes with an extra large boot space, which is possible because of its unique design that maximizes space on a compact platform. Caution, safety and protection are integral to a smarter mindset. And the Wagon R is designed to satisfy every concern. Just check out the battery of safety features: Dual side-impact beams in the front and rear doors protect you from lateral collisions. A long crumple zone shields you in the unlikely event of a frontal collision. A Roll Control device in the front suspension imparts greater stability and helps the Wagon R to negotiate sharp curves at high speeds. The 8 inch booster-assisted brakes equip you well to handle any emergency High seating position gives you a bigger field of view, allowing you to better anticipate traffic problems before they occur.
  • 52. 47 MARUTI VERSA ONE GREAT DRIVE. TWICE THE SAFETY The Versa is one of the safest cars on the road. It has safety features to guard your loved ones from road disasters. Side impact absorbing beams in all 4 doors protect the passengers from side crashes. Front impact beams between the front pillars and the collapsible steering column shield you from head on collisions. A steel pipe frame in the rear seat safeguards your family from rear impacts.ELR seat belts allow free movement, but hold you securely during sudden stoppages. Height adjustable head restraints, brake boosters and a collapsible steering column further ensure your safety. When you step out of the house and into your Versa, rest assured Sink in. Stretch out. Lie back. Indulge Versa's the ideal car for long journeys. Now stretch your legs on those long rides. All seats* have recliners. In SDX, the 2nd row bucket seats can be slid forward or backward independently to suit the convenience of the passengers. The high seat position makes it easy to get in and out and gives superior road visibility. The front row seats have thick insulation between seat and the engine.
  • 53. 48 Two layers of PUF and aluminium sheets act as a buffer, protecting the driver from engine heat. The rear seat also has a steel pipe frame for protection in the event of a rear impact. * Except for the folding seat in 2nd row (DX, DX2) and last row seats. MARUTI GYPSY Gypsy Advantage HILLS  Higher ground clearance of 210 mm to ensure better off-road handling.  Diaphragm Spring Clutch designed to with stand higher rotational speeds requiring less release load ,thereby reducing the wear of parts SNOW  The Engine that‘s high on thermal conductivity, and heats up quickly even under extremely cold conditions. Thus, there are no starting problems even in the midst of snow.
  • 54. 49  1300 cc petrol engine — lighter than a diesel engine, resulting in a higher power to weight ratio. This ensures better control, more power and greater responsiveness. DESERT  The Engine avoids overheating because its high thermal conductivity enables it to give off heat much faster STREAMS  Maximum power of 80 bhp @ 6000 rpm makes for easier crossings.  4-Wheel drive for better control and more power at the wheel.  A higher power to weight ratio of 0.0812 ensures faster acceleration through streams and muddy terrain.  DIRT TRACKS DIRT TRACKS  Steering Damper ensures that shocks encountered from bumps and potholes are not passed on to the steering wheel. Thus, any loss of control owing to unexpected obstacles is avoided.  The Gypsy is a lighter vehicle weighing in at 1020 kg (hard top) and 985 kg (soft top). This is a major advantage on sandy or muddy tracts — a heavier vehicle will get stuck but the Gypsy keeps
  • 55. 50 SWIFT The time has come for a new kind of compact car, one that's based on a fresh approach to design and development, delivers the kind of driver and passenger experience that places it in a class of its own and has true worldwide appeal. The time has come for the Maruti Suzuki Swift. The Swift is more eye-catching, more spacious, more refined, more user-friendly, and a whole lot more enjoyable to drive than anything else in the compact-car category.
  • 56. 51 SWIFT DZIRE Maruti Swift DZire The new Swift DZire joined the Swift and SX4 in Suzuki's Indian lineup and is intended to "redefine the market and stir excitement in the entry level sedan segment". It's a good news for the consumers because Swift DZire, which comes both in diesel and petrol engines, offers luxury feature options including integrated stereo, steering mounted audio controls, automatic climate control and power windows as well. Not only this but, it is also equipped with latests safety features like Dual Airbags, ABS with EDB, collapsible steering column and an i-CATS anti-theft facility. It's true to say that many of these features are being offered for the first time in this segment in contemporary car market in India. Variants Petrol Diesel LXI LDI VXI VDI ZXI ZDI
  • 57. 52 RANGE OF COLOURS There is a wide range of colors for the customers. The newly Swift DZire is offered in seven colours: Arctic White Silky Silver Clear Beige Midnight Black Bright Red Azure Gray Sovereign Blue Features Launched as a replacement of the earlier mid size sedan Maruti Esteem, the Swift DZire is sophisticated in look and features. There is a long list of features of Swift DZire which includes: INTERIORS Steering Mounted Audio Controls: Swift DZire is equipped with a classy dashboard integrated audio system with remote control along with powerful speaker. Automatic Climate Control (ACC): Whenever you need to choose you temperature, just choose the temperature you desire and the on-board computers is there to auto-adjust to the weather outside, maintaining precise cabin temperature.
  • 58. 53 EXTERIORS Makes Heads Turn with its desirable exteriors: There is a chiseled shoulder line to complement muscular flared wheel arches and sills. Rich chrome styling for an imposing grille and an impressive rear is also there now. Stylish wraparound tail lamps fitted. Powerful clear lens headlamps for superior night visibility is and additional benefit for you. Headlight leveling allows you perfect light beam adjustment while driving. A high mounted stop lamp and a rear bumper-integrated fog lamp give clear signals to following traffic, thus avoiding accidents. Comfort & Convenience Indulge your desire of complete comfort: All around power windows for improved convenience to the drivers is there now. Sounds absorbing materials and vibration dampers for a smooth and pleasurable drive. Now, there is height adjustable drivers seat for personalized driving position. A tilt adjustable steering column lets you to set it just right for your height, so you enjoy a comfortable drive and enjoy the ride even for long distance. Improved comfort in the back row for those who don't drive but enjoy the ride. Variants
  • 59. 54 MARUTI SX4 Maruti Suzuki SX4 Maruti Suzuki India Ltd.. is out with it's cutting edge new model, Maruti Suzuki SX4, a joint venture made by two of automobile czars, Suzuki and Maruti. The model closely follows the Swift platform, therefore, it is easily available with exclusive features which makes it all the more desirable among car connoisseurs. A mini SUV (sport utility vehicles) style, SX4 is almost like a car in it's construction & comfort context. The model is found in two- and four- wheel drive. With two variants, the model is all set to conquer the Indian auto biz market. These are commonly referred as the "Urban Line" & the "Outdoor Line", where the latter is more like an SUV in appearance compared to the first one. The car is expected to have 1590cc petrol engine making it capable enough to deliver a power of 94bhp and a torque of 13.4kgm.
  • 60. 55 OTHER FEATURES Maruti Suzuki SX4 is assorted with elegant features which makes the model worth possessing. These are : ABS EBD Dual SRS airbags Front and rear side doors having impact beams Seat belt pre-tensioners Force limiters Car immobilizer Anti theft device Switchable three-mode 4x4 system for : 2WD 4WD Auto mode 4WD Lock mode Colors Colors for Maruti Suzuki SX4 are quite unique & contemporary in nature
  • 61. 56 GRAND VITARA Grand vitara is anew segment entered by maruti. Initially they are just in traditional cars business Grand vitara is a SUV (sports utility vehicle) with a powerful engine of 2600 cc. It is fitted with a MPFI diesel engine. It delivers 4x4 drive. Price charged for grand vitara is between 13.5 lakh to 16 lakh. It is of premium segment.
  • 62. 57 MARUTI RITZ Maruti Ritz Review Maruti Ritz is the perhaps the most awaited and hyped car from Maruti Suzuki. The car is positioned in the premium A2 market segment, which includes its compact offering such as Alto, WagnoR, Swift, Zen and the newly-launched A- Star. Hundai has already launched their i10 model in the Indian market. Now, it‘s the turn of market leaders maruti Suzuki to respond with a brand new vehicle for the Indian market. Engineers from Maruti Suzuki worked at close quarters with their Japanese counterparts in the development of the Ritz, much like that for the A-Star.MUL seems to be going the complete distance to insure that the Ritz manages to make an impact on the cut-throat A-2 hatchback space. How far the new Ritz manages to complete with its counterparts is yet to be seen in the time to come.
  • 63. 58 Ritz launched in the Indian markets on 15th May,2009, the Ritz Maruti is one of the first BS-IV complaint cars of India. Priced at Rs 4 Lakh to Rs.5 Lakh, the Ritz Maruti has a sporty new look with cool spacy interiors. It's true to say segment in contemporary car market in India.that many of these features are being offered for the first time in this segment in contemporary car market in India. Mruti Ritz LXi Mruti Ritz VXi Mruti Ritz VXi ABS Mruti Ritz ZXi Mruti Ritz VDi Mruti Ritz LDi Mruti Ritz VDi ABS Features  Alloy wheels  Engine immobilizer(iCATS)  Steering-mounted audio controls  Front seat under tray  60:40 rear split seats  Driver seat / Steering wheel / Seatbelt height adjustor
  • 64. 59 MARKETS DOMESTIC Maruti primarily operates in the passenger vehicles market with an emphasis on passenger cars. During 2004-05, the Indian passenger vehicles market finally attained critical mass with sales volume of 900,752 units — a 27.4 per cent increase from 707,198 units sold in 2003-04. The passenger vehicle market is divided broadly into the following three categories: 1. Passenger cars 2. Multi-purpose vehicles (MPVs) and 3. Utility vehicles (UVs) Within these categories, MUL‘s presence in order of prominence and in volume term is in passenger cars, MPVs or the C segment and UVs or the B segment. Chart B gives the relative share of each segment in Maruti‘s passenger vehicles sales, where passenger car sales have been broken up according to the SIAM based classification (A1-A6). PASSENGERS CAR In volume terms, passenger car sales accounted for over 77 per cent of the Indian passenger vehicles market and grew by 28.6 per cent from 541,491 units in 2003-04 to 696,207 units in 2004-05. Maruti continues to be the market leader. During 2004-05, not only did Maruti grow due to the overall market growth, but also managed to overcome intense competition and gain market share — which increased from 50.8 per cent in 2003-04 to 51.4 per cent in 2004-05. The Indian car market is classified into six categories based on the vehicle length
  • 65. 60  1: Mini — upto3,400mm.  A2:Compac — from 3,401 mm to 4, 000 mm.  A3: Mid-size — from 4,001 mm to 4,500 mm.  A4: Executive — 4,501 mm to 4,700 mm.  A5: Premium — from 4,701 to 5,000 mm. A6: Luxury — 5,001 mm and above. MUL has presence in three of these categories namely A1, A2 and A3. Chart C plots MUL‘s sales volumes in these three categories for 2004-05 and 2003-04. A1 CATEGORY: With its Maruti 800, your company is the only player in this category. Sales volumes increased by 16.9 per cent during 2004-05. Growth in this economy segment comes mainly from first-time buyers, and consumers buying their second car. Penetrating this market requires greater reach in distribution, and MUL is undertaking many efforts in this direction. A2 CATEGORY: Maruti has three models in this category — Zen, Alto and Wagon R. This is the segment where the company faced stiff competition in the last few years, and had lost some ground due to delays in launching new models. Things have fundamentally changed in 2004-05. Through a well-crafted strategy, Maruti consolidated its leadership position in the A2 category. While the category grew by 23.4 per cent in 2004-05, MUL‘s sales volume grew by 46 per cent. Consequently, the company‘s market share has increased from 40.3 per cent in 2003-04 to 47.7 per cent in 2004-05. We believe that given India‘s income distribution and low levels of car penetration, the A1 and A2 segments will continue to register strong growth as the population increases its levels of motorization. Today, India is the second largest two-wheeler
  • 66. 61 market in world with sales of around 5 million two wheelers during 2004-05. The existing stock of two wheelers on India‘s roads is over 50 million. With cheaper credit facilities, many users of two-wheelers, especially in the higher end segment, should shift to cars in the A1 category. MUL is the dominant company in India, which has the models to tap this huge growth opportunity. To penetrate deeper into the Indian market, MUL has tied up with the State Bank of India (SBI) to finance cars. SBI has the widest branch network in India, and we expect to reach parts of the rural markets hitherto uncovered by retail finance availability. Apart from strengthening the distribution network, key initiatives that drove this growth during 2004-05 include:  Strengthening the brand image of the three models through advertisements and sales promotional initiatives.  Repositioning Alto in a niche space between A1 and A2 cars. Aggressive pricing of the Alto was supplemented by a strong ad campaign that targeted the younger generation. These factors played a role in boosting the volume of Alto sales by over 125 per cent.  New variant of the Zen was launched in the latter half of 2003, which rejuvenated the brand in the market. There were also significant changes in the Wagon R, which contributed to a volume growth of 59 per cent. A3 CATEGORY: This is a highly fragmented category with several models, and no single player has major leadership position. MUL‘s two models —Swift Desire& SX4— have a combined market share of a little over 10 per cent. Maruti lost some market share as its volume sales grew by around 30 per cent, against the overall category‘s growth of 50.8 per cent. In the last quarter of 2004-05, to increase
  • 67. 62 market penetration, MUL revised the prices of SX4 downwards and launched a new version — the SX4Lxi. We have already started witnessing results from this initiative. MULTI-PURPOSE VEHICLES (MPVS) In this segment, Maruti‘s models include the Omni and the Versa. Here, Maruti is the dominant player with nearly 100% market share. In 2004-05, the company‘s sales volumes grew by 14.7 per cent. During the latter half of the year, Maruti launched an economy model of the Versa. A new Omni variant, which runs on LPG was launched to tap newer cargo markets. Passenger Cars + MPV Market Passenger cars and MPVs are generally analyzed as a comprehensive segment. Maruti marginally increased its share in this segment with about 55.2 per cent in volume terms during 2004-05. Segment with a market share of only 2.5 per cent. The primary model in this segment is the Gypsy. During April 2003, the company Launched its state-of-the-art sports utility vehicle (SUV) — the Grand Vitara. Customer Orientation The growth in sales volumes is a consequence of Maruti‘s continuous stress on customer focus. Regular interface and feedback from customers is integral to the company‘s planning process. A tribute to its efforts at improving customer satisfaction is the top ranking given to the Wagon R in the premium compact segment, and Esteem in the entry midsize segment, by JD Power‘s survey on
  • 68. 63 IQS. Table 1 gives a snapshot of five top reasons why people buy Maruti cars as per the JD Power survey. It is important to note that the rating, which was between 10 and 20 per cent in 2000, has increased to above 50 per cent in 2003. Another interesting point is that while Maruti‘s UTILITY VEHICLES (UVS) Diesel vehicles dominate this segment with a share of around 95 per cent. This is mainly because vehicles in this segment are by nature heavy and diesel has a policy determined price advantage over petrol. Since Maruti does not have a diesel vehicle today, it remains a small player in the MUV economy factor was the most important reason for purchase in 2000, the company‘s reputation has become the leading factor determining the customer‘s purchase decision in 2003. Thus, Maruti has managed to build a strong brand image in the last four years. MUL‘s technological capabilities are getting greater recognition as in 2003: ―good technology‖ became one of the five leading reasons cited by customers for buying a Maruti car. Dealership and Service Network This high level of customer satisfaction and award of number 1 position in customer satisfaction by world renowned J D Power survey for four times in a row can be translated into sales only through a strong dealer network, which actively reaches out to potential customers. The company has extended its dealership network to 280 sales outlets, spread over 182 cities, and has a service network of more than 1900 workshops spread across 1000 cities. The confidence of the dealer community in Maruti is spelled out by the fact that 28 existing dealers made large
  • 69. 64 investments and opened new showrooms. On the same lines, 59 new workshops were opened by 51 existing dealers. The automobile industry has two levels of customers — the dealer and the buyer. It is imperative to have a robust dealer network to push sales to the final customer. Therefore, MUL treats its dealers as its first level of customers. In the last three years, Maruti has worked hard to revitalize and strengthen its dealership network. Apart from having a good product, the key factor in developing a good dealer network is to assure profits for the dealers. Maruti believes that selling a car is only the beginning of a long-term relationship with the car buyer. During the course of a car‘s life, there are many services and products which can be offered to the customer like finance, accessories, insurance, service, spare parts and finally trade- in resale opportunities. MUL offers its customers a suite of products through its authorized dealers, which meets all the requirements during the life cycle of a car. This not only meets a much larger basket of customer needs but also provides dealers with the opportunity to generate greater profits. Other services that have been launched under new business initiatives of Maruti include Maruti Finance (a consortium of finance companies), Maruti Insurance and the pre owned cars business under the True Value brand name. In all these businesses, Maruti plays the role of an aggregator and brand manager. None of the risks related to these businesses are booked in the books of MUL. Most dealers have understood the importance and profitability of this new business model and their strong motivation has resulted in record top-line growth for 2004-05.
  • 70. 65 A key initiative to promote best practices on the dealer front has been the practice of the balanced scorecard to evaluate dealers. Those dealers who achieve or exceed a certain score are financially rewarded for their efforts. The company acknowledges that superior customers experience is only possible if the dealers‘ employees are adequately trained. To achieve this, training is undertaken in all areas of dealership operations. We are proud to state that Maruti‘s dealer‘s technicians were ranked the best among Suzuki distributors in South-East Asia; and now, an Indian team will participate in the International Technical Skill Competition in Japan. EXPORTS 2004-05 was also a landmark year for Maruti in terms of exports. The FOB value of exports grew by 51.7 per cent from Rs.6,204 million in 200203 to Rs.9,410 million in 2004-05 — which is the highest ever in Maruti‘s 17 years‘ export history. It is also the first year in which the company exported over 50,000 vehicles. It exported 51,175 units. Maruti‘s export growth has been driven primarily by 56.8 per cent increase in exports of Maruti 800, and 60.5 per cent growth in exports of A2 category cars. Within the A2 category the YG4 (Alto) was a huge success in the European market, where 34,399 Suzuki Altos were sold during 2004-05. The M-800 and the Zen were very well accepted in Algeria. We also achieved substantial growth in our exports to Algeria, Belgium, Bhutan, Chile, Denmark, Germany, Hungary, Nepal, Sri Lanka and UK. Maruti entered the Gulf market (Saudi Arabia, Kuwait and Qatar) for the first time with the new Alto GCC specifications, specially designed for this region.
  • 72. 67 RESEARCH OBJECTIVES Primary objective:- 1. To study the level of customer satisfaction towards Maruti Suzuki Cars 2. To study the factors those satisfy and delight the customer. Secondary objective:- 1. To study the problems faced by customers 2. To understand the customers requirement from the Maruti Suzuki. 3. To know customer opinion about Maruti Suzuki‘s vehicles.
  • 74. 69 RESEARCH METHODOLOGY DESCRIPTIVE RESEARCH: The research undertaken was a descriptive research as it was concerned with specific predictions, with narration of facts and characteristics concerning Customer satisfaction towards Maruti Suzuki in Lucknow City. SAMPLING DESIGN The following factors have been decided within the scope of sample design: UNIVERSE OF STUDY: Universe of the study means all the persons who are the customers of Maruti Suzuki Lucknow City. SAMPLE SIZE: A sample of minimum respondents will be selected from various areas of Lucknow City. An effort was made to select respondents evenly. The survey was carried out on 100 respondents. SAMPLING TECHNIQUE: For the purpose of research convenient sampling technique was used. SOURCES OF DATA: The data has been collected from both primary and secondary sources, to get information regarding the organization and products PRIMARY DATA: Primary data has been collected through questionnaires. The questionnaire was mostly related to the brand awareness towards Maruti after sale services provided by KTL.
  • 75. 70 SECONDARY DATA: Secondary data has been taken from 1) Reports 2) Pamphlets 3) Advertisement 4) Customer database 5) News papers 6) Internet SAMPLING: Out of few lakes of Maruti Suzuki customers spread all over India, the customers of KTL, Lucknow City only are taken as target population for the study. The sample size of 100 is selected from the database of the company. The study requires on in depth survey and keen observation in a collecting data regarding the brand awareness levels of Maruti customers. Only simple random sampling technique is adopted in selection the sample. In this technique, each and every unit of the population has on equal opportunity of being selected in the sample.
  • 77. 72 LIMITATIONS OF STUDY  The study suffered from time constraints as it is completed within the short period of one month.  Sample size is small.  Area of the study limited.  Lack of response.  The data collected and all the ground work that was felt necessary had to be done by author itself. Thus huge work force was another constraint in the study.  There was dearth of free time in hands of the employees. As such carrying survey and getting the questionnaire filled correctly on time was challenging.  Lack of professional approach since researcher is a student.  I will have to rely upon the information get from secondary sources and given by respondents, which may not be fully true.
  • 79. 74 DATA ANALYSIS AND INTERPRETATION Table No.-1 Table showing Occupation of Customer- S.No. Occupation No. of Respondent 1 Business 44 2 Employee 32 3 Agriculture 14 4 Other 10 Source-Primary data Interpretation – It is observed that, 44% customers are doing the Business and 32% customer are the employee in private or government sector, 14% are farmer and 10% in other field. 1 Business 44% 2 Employee 32% 3 Agriculture 14% 4 Other 10% Occupation of the customer
  • 80. 75 Table No.2 Table showing Age of the Maruti Suzuki’s Customer Source-Primary data Interpretation – It is observed that, 5% customer’s age is between the 20-25 years, 40% in 26-34 years, 30% in 35-44 years and 2% customers above 45 years. 0 5 10 15 20 25 20 - 25 26 - 34 35 - 44 45 & above Ist 2nd Additional Buyer 20 - 25 26 – 34 35 - 44 45 & above 1st 5 22 8 6 2nd 0 10 14 10 Additional 0 8 8 9 Total 5 40 30 25
  • 81. 76 Table No.-3 Table showing Pre-Purchase satisfaction level of the customer. Interpretation – It is observed that, 50% of the customers are highly satisfied with the Pre- purchase services And 5% are dissatisfied with the Pre purchase services. 50% 30% 15% 5% Pre Purhase Satisfaction of customers Excellent Good Avverage Below average Customers remark No. of respondent Excellent 50 Good 30 Average 15 Below average 5
  • 82. 77 Table No.-4 Table showing customers opinion about the Maruti’s vehicles for Value for Money Respondent's Remark No of respondents Above Expectation 38 As per Expectation 42 Below Expectation 20 Interpretation – 42% of the respondents are of opinion that vehicles are as per expectation & 20% are of the opinion that the vehicle are below expectation. 38% 42% 20% Value for Money Above Expectatiom As per Expectation Below Expectation
  • 83. 78 Table No.-5 Table showing Post-purchase satisfaction level of the customer. Customers remark No. of respondent Excellent 30 Good 45 Average 20 Below average 5 Interpretation – It is observed that, 45% of the customers are highly satisfied with the Post- purchase services And 5% are dissatisfied with the Post purchase services. 30% 45% 20% 5% Post purchase satisfaction of the customer Excellent Good Avverage Below average
  • 84. 79 Table No.-6 Table showing customer priority with respect to characteristic. Interpretation – It is observed that, 26% of the customers preferred Mileages as first preference and 6% preferred safety. 0% 12% 26% 12% 20% 24% 6% Customers Pirority with respect to charesteristic Aspect Comfort Milage Features Looks Price Aspect No of Respondents Comfort 12 Mileage 26 Features 12 Looks 20 Price 24 Safety 6
  • 85. 80 Table No.-7 Table showing customer remark about services. Customers remark No. of Respondent Excellent 32 Good 50 Average 15 Below average 3 Interpretation – It is observed that, 55% of the customers are satisfied with the services, and 3% are not satisfied. Customer remark about services 32% 50% 15% 3% Excellent Good Avverage Below average
  • 86. 81 Table No.-8 Table showing customer expectation for improvement in Maruti Suzuki. Interpretation – 46% of the customers are of opinion that Maruti should improve in quality. 16% 46% 24% 14% Customer expectation from Maruti Suzuki Price Quality Service Other Customers remark No. of Respondent Price 16 Quality 46 Service 24 Other 14
  • 87. 82 Table No.-9 Table showing customer’s repurchase intention. Customers remark No. of Respondent Yes 74 No 26 Interpretation – It is observed that, 74% of the customers are ready to repurchase the Maruti’s car, 26% are not ready to purchase the car. 0 10 20 30 40 50 60 70 80 Yes No No. of Respondent No. of Respondent
  • 88. 83 Table No.-10 Table showing customer’s recommendation intention. Customers remark No. of Respondent Yes 72 No 28 Interpretation – It is observed that, 72% of the customers are ready to recommend the car to the friends and relative, 28% are not ready to recommend the car to the friends and relatives. 72% 28% Recommandation to friends/relatives Yes No
  • 89. 84 Table No.-11 Table showing customer’s preference about M-Finance. Customers remark No. of Respondent Yes 38 No 62 Interpretation – It is observed that, 62% of the customers are ready to prefer M- Finance, 28% are not ready to prefer M-Finance. 38% 62% Customer Preference about M-Finance Yes No
  • 90. 85 Table No.-12 Table showing customer’s preference about M- Insurance. Customers remark No. of Respondent Yes 86 No 14 Interpretation – It is observed that, 86% of the customers are ready to prefer M- Insurance, 14% are not ready to prefer M-Insurance. 0 20 40 60 80 100 Yes No 86 14 Customer Preference about M-Insurance No. of Respondent
  • 92. 87 FINDINGS 1. The prospective segment is from the business and self employed class. 2. The company should concentrate on the age group 26-34. 3. Maruti should continue to maintain the standard of the service. 4. It is observed that, 42% of the respondent are of opinion that vehicles are as per expectation, and 20% are saying its below expectation. 5. Company should improve its post sales service. 6. The customer highest priority is for the mileage. 7. Maruti Suzuki needs to improve its awareness about Add-on-Services like any time Maruti, MEW etc. 8. Customer are highly satisfied with the service which help in customer retention 9. It is observed that, 46% of the customers are of opinion that Maruti should improve in quality, and 16% of the opinion that Maruti should improve in price. 10. Customers are highly satisfied which help in customer retention. 11. Company has created goodwill among the customers which will help them to recommend car to friends and relatives. 12. Maruti Suzuki needs to educate the customers about the benefits of M- Finance. They can motivate the cash customers to offer M-Finance. 13. It is observed that, 86% of the customers are ready to prefer M- Insurance, 14% are not ready to prefer M-Insurance.
  • 94. 89 SUGGESTIONS AND RECOMMENDATIONS After conducting the survey and knowing the market, I realized that:  The company should keep in mind the need of young generation.  Company should improve the promotion strategy of product.  Company should improve the promotion strategy of Add-on services.  It will be beneficial for the company to make the warehouse near to the showroom and there should be roof facility, adequate security facility in the warehouse.  The Company should know its customers satisfaction level throughout doing periodic surveys. Periodic surveys can treat customer satisfaction directly.  Company should improve/upgrades its employee‘s product knowledge, market situation, and its competitor‘s knowledge by giving proper training to employee.  Company should upgrade or innovate its new product.  The Company should not only concentrate on the customer satisfaction but also the company led to monitor their competitor‘s performance in their areas of operations.  The Company should make changes according to the other competitors & according to the customer‘s expectations.
  • 96. 91 CONCLUSION It has been observed that most customers are satisfied with pre sales services similarly most of these customers are dissatisfied with the post sales service which is the matter of concern for the company. Maruti Suzuki needs to improve some parts of products specifically the interiors. High customer satisfaction level helps the company to retain its existing customer as well as generate new customer through word to mouth publicity. Customer satisfaction index is a good tool to make improvements in the products and services of the company. And therefore should utilize carefully & kept as confidential as possible. Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty." "Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold:" "Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company‘s goods and services."
  • 98. 93 BIBLIOGRAPHY Books:  Kotler, P (2002),‖Marketing Management‖, Millennium Edition, Tenth Edition, Prentice Hall, Inc, A Pearson Education Company, Upper Saddle River, New Jersey ,pp.  Hair, Joseph, F., Anderson, Rolph, E. and Tatham Ronald, L. (1987),Multivariate Data Analysis, New 'fork: MacMillan Publishing Company.  Helen Woodniffe (1997), "Financial Sewices Marketing", Services Marketing,Macmillion, Delhi.  Hill, N., (1996), Hanbook of Customer Satisfaction Measurement, Gower Press, Aldershot, UK.  Jayaram, N. and Sandhog, R.S. (1998), Housing in India - Problems, Policy andperspectives, B.R. Publishing Corporation, Delhi.  Jeffrey Gitomer (1998), Customer satisfaction is worthless: Customer loyalty is priceless: How to make customers love you, keep them coming back and tell everyone they know, Austin TX: Board Press. Websites  http://www.carwale.com/marutisuzuki-cars/  https://en.wikipedia.org/wiki/Maruti_Suzuki  https://www.cardekho.com/cars/Maruti  https://www.zigwheels.com/newcars/Maruti-Suzuki
  • 100. 95 QUESTIONNAIRE Name: - Sex:- Address: - Occupation:- Contact No:- Age of Respondent a) <25 b) 25-34 c) 35-44 d) 45 & above Annual Income a) 3-5 lack b) 5-8 lack c) 8-12 lack d) 12 and above 1. Which Model of Maruti are you using? Car:-……………………………………………………………………………… 2. From how many years you are using this model? a) 0-2 years b) 2-4 years c) 4-6 years d) 6-8 years 3. Preference for choosing particular car? a) Comfort b) Mileage c) Feature d) Performance e) Looks f) Price g) Others Please specify:-……… 4. Are you satisfied with your car? a) Yes b) No
  • 101. 96 If No, give the reasons for the same a) Comfort b) Mileage c) Feature d) Performance e) Looks f) Price 6. Do you prefer M-Insurance over any other insurance option? a) Yes b) No If No, then why:-………………. 7. Do you prefer M-Finance over any other finance option? a. Yes b. No If No, then why:-………………. 8. Do you prefer to get MGA fitted in your car or any local accessories? a) MGA b) Local 9. What is your Pre-sales experience while purchasing the car? a) Excellent b) Good c) Average d) Below Average 10. What is your Post-sales experience after purchasing the car? a) Excellent b) Good c) Average d) Below Average 11. Are you satisfied with the features of Maruti? a) Comfort……. /5 b) Mileage……. /5 c) Feature ……. /5 d) Safety……. /5 e) Looks ……. /5 f) Price……. /5
  • 102. 97 12. How will you rate Maruti on the basis of Value for Money? a) Above Expectation b) Below Expectation c) As per Expectation 13. Do you find easy availability of spare parts? a) Yes b) No 14. Would you like to re purchase the Maruti’s car? a) Yes b) No 15. Would you like to recommend the Maruti car to your friends/relatives? a) Yes b) No 16. In which sector do you think/feel Maruti should improve? a) Price b) Quality c) Service d) Others 17. Are you satisfied with the overall service of Maruti? a) Excellent b) Good c) Average d) Below Average