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GURU GOBIND SINGH INDRAPRASTHA UNIVERSITYNEW DELHI
PROJECT REPORT
ON
STUDY OF MARKETING STRATEGIES
OF
MARUTI UDYOG LIMTED
SUBMITTED TO: SUBMITTED BY:
Ms. Monika Bhatia Aman Sachan
Semester VI
BBA-0451061708
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C E
I
I C A
E
This is ce ify that th e Proj ec t Rep ort / Di sse rtation ( BB -310) entitl ed
STUDY OF MA K TING STRATEGIES OF M ARUTI UDYOG LIMITED don e by
Aman Sachan , enrollm ent no. 0451061708 , is com p le t ed un de r my gui dan ce .
Signatur e of th e Guide
(Ms. Mo nika Bhatia)
Date:
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A CKNOWL E E E NT S
I owe my since re thank s an d gratitu de to M s. Monika Bhatia
who in sp ired m e by h er abl e guidan ce an d wa s a con stant gui ding light during th e
cour se of proj ec t stu dy.
The su pp ort an d knowl ed ge p rovi ded by h e r ha s b ee n a gr eat valu e add ition
for m e an d will go a long way in buil ding a p romi sing car ee r.
Last but not l east, I am al so thankful to all th e resp on de nt s of my surv ey without
whom th e proj ec t woul d not hav e bee n com ple ted success fully .
(M s . Monika Bhatia ) (Aman Sa chan )
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I ND EX
y INTRODUCTION OF THE COMP ANY 5
y W HY MARUTI SUZUKI 9
y M ARUTI CULTURE 17
y RESEARCH METHODO LOGY 19
y FINDINGS ABOUT THE COMP ANY 21
y FINDINGS FROM THE SUR VEY 37
y ANALYSIS OF THE FINDINGS 54
y LIMITATIONS 56
y CONCLUSIO N 57
y BIBILIOGRAPHY 60
y Q UESTIONNAIRE 61
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I NTRODUCT I ON OF TH E CO M AP A NY
MARUTI UDYOG LIMITED
Maruti i s India' s larg es t automobil e com pany. Th e com pany, a joint v entur e with
Suzuki of Ja pan, ha s bee n a success story lik e no oth er in th e annal s of th e Indian
automobil e industry.
Today, Maruti i s India' s larg es t automobil e com pany. Thi s f eat wa s achieved by th e
miss ionary z eal of our em ployees acro ss th e line an d th e far -sight ed vision of our
manag em ent.
The Company M iss ion:
To provi de a wi de rang e of mo de rn, high quality fu e l ef ficient v ehicles in or de r to
m ee t th e need of diff erent custom ers, both in dom es tic an d exp ort mark e ts.
The Company Vision:
We mu st b e an int ernationally com pe titiv e com pany in t erm s of our pro ducts an d
se rvices . W e mu st r e tain our l eade rship in India an d shoul d also a sp ire to b e among
th e global play ers.
Their fo cus is o n:
y Building a continuou sly improving organi sation a daptabl e to qui ck chang es
y Provi ding valu e an d sati sfa ction to th e custom er
y Aligning an d fully involving all our employ ees , supp liers an d de alers to fa ce
com pe tition
y Ma ximising Shar ehol de r's valu e
y Being a r esp on sible cor porat e citizen
At Maruti, th ey hav e a clear pe rspec tive on man pow er. Th ey see it a s a uniqu e
resour ce , in th e se nse that o p timal pro ductivity of oth er res our ces depe n ds larg e ly
on th e way human r es our ces ar e utili sed . The ba sic philo sophy of manag em ent
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that un de rlies th e Maruti cultur e is that all employ ees of th e com pany shoul d be
moul ded into a t eam whi ch th en striv es as on e , to a chieve commonly shar ed
com pany goal s an d obj ec tives . To mak e thi s philo sophy t enabl e , th e Com pany
tak es se veral initiativ es . Input s ar e sought from employees at all l eve ls. They
be lieve that everyon e shoul d contribut e to th e formulation of com pany policies ,goal s an d obj ec tives . Secon dly, at Maruti, th ey encourag e leade rship in th e bes t
se nse of th e wor d. Accor ding to u s, a leade r is on e who mu st b e im partial, mu st
hav e th e ability to ri se abov e his own subj ec tivity, an d , mo st im portantly, mu st
pra ctice what h e preaches .
They un de rstan d that th e pro cess of creating a se nse of b e longing that all
employees can i de ntify with i s a lengthy on e . To ensur e that thi s tran slat es into
con cre te reality, th ey hav e tak en se veral simple but spec ific an d we ll thought out
m easur es . The first step in thi s direc tion ha s bee n th e intro duction of a common
uniform for all employ ees . Anoth er m easur e is th e creation of a common cant ee n
wh ere all employees hav e lun ch, stan d in common qu eues , an d sit on th e sam e
tabl e . Common toil e ts, common tran sport an d similar fa cilities for all l eve ls of
employees ar e oth er m easur es that r e infor ce th e ir empha sis on g enuin e equality in
th e work place .
At Maruti Th ey do not b e lieve in th e notion of organi sational hi erar chies . As a
matt er of fa ct, th e manag ement stru ctur e an d systems in Maruti hav e bee n
des ign ed to promot e dece ntrali sation of authority. Maruti ha s a horizontal
manag em ent stru ctur e with only four fun ctional l eve ls of r esp on sibility to fa cilitat e
qui cker dec ision making.
Anoth er fo cus ar ea of th e Maruti cultur e is th e ma int enan ce of a smoothly
fun ctioning communi cation n e twork. Maruti b e lieves that communi cation chann e ls
be tw ee n labour an d manag em ent cannot sim ply con sist of having a labour
rep rese ntativ e on th e Boar d of th e Com pany. Th ey hav e faith in th e ability of
labour to eff ec tive ly parti cipat e in manag em ent an d mak e con stru ctive
sugg es tion s. To encourag e thi s, th ey ensur e that th ere is a thorough disse mination
of information at all l eve ls, through n ewsle tt ers or via a l e tt er from th e Chief
Executiv e to all employees . Mee ting s with th e Union ar e he ld regularly, an d
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programm es be ing cont emplat ed by th e Com pany ar e discussed with th e Union.
The Sahyog Samiti, a collec tion of r ep rese ntativ es of non -unioni sed employees ,
training programm es in Japan, Quality Cir cles , pro du ctivity -linked incentiv e
schem es , an d an e tho s of discipline an d teamwork, all contribut e to th e Maruti
cultur e .
Several m easur es of pe rforman ce hav e ma de am ply clear that Maruti ha s
es tabli shed a truly h ealthy work cultur e . They hav e m e t all proj ec t an d
pe rforman ce targ e ts since incep tion. Th e ir pro ductivity l eve ls ar e con stantly
improving. Th e Com pany ha s ha d goo d labour r e lation s with em ployees from th e
very b eginning, an d th ey hav e bee n success ful in th e exp ort mark e t. Ye t, th e
Maruti cultur e is on e that does not b e lieve in r es ting on it s laur e ls. They adhere to
th e sp irit of Kaiz en, whi ch stat es that con stant im prov em ent i s alway s poss ible . The
mo st ba sic tene t of pro ductivity that th ey hol d de ar i s that " To day shoul d be be tt er
than Y es terday an d Tomorrow shoul d be be tt er than To day".
Maruti U dyog Limit ed (MUL) wa s es tabli shed in Feb 1981 through an A ct of
Parliam ent, to m ee t th e growing de man d of a pe rsonal mo de of tran sport cau sed
by th e lack of an efficient publi c tran sport system.
Suzuki Motor Com pany wa s cho se n from se ven pro spec tive partn ers worl dwide .
This wa s due not only to th e ir un disput ed leade rship in small car s but al so to th e ircommitm ent to a ctive ly bring to MUL cont em porary t echnology an d Japan ese
manag em ent pra ctices (whi ch ha d cata pult ed Japan ov er USA to th e statu s of th e
to p auto manufa cturing country in th e worl d).
A licence an d a Joint Ventur e agr ee m ent w ere signed be tw ee n Gov ernm ent of
India an d Suzuki Motor Com pany (now Suzuki Motor Cor poration of Ja pan ) in Oct
1982 .
The obj ec tives of MUL th en w ere:
y Mo de rnization of th e Indian Automobil e Industry.
y Pro duction of fu e l-efficient v ehicles to con se rve scar ce resour ces .
y Pro duction of larg e numb er of motor v ehicles , whi ch wa s necess ary for
economi c growth.
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Core Value
y Custom er Ob sess ion
y Fast, Flexible an d First Mov er
y Innovation an d Creativity
y N e tworking an d Partn ership
y Ope nn ess an d Learning
Vision
The leade r in th e India Automobil e Industry, Cr eating Cu stom er De light an d
Shar ehol de r s Wealth; A pride of India
Techn o log ical Advanta ge
They hav e intro duced th e supe rior 16 * 4 Hype rt ech engin es acro ss th e entir e
Maruti Suzuki rang e . This new t echnology harn esses th e pow er of a brainy 16-bit
com put er to a fu e l-e fficient 4-valve engin e to creat e optimum engin e de livery. Thi s
m ean s every Maruti Suzuki own er ge ts th e ide al combination of pow er an d
pe rforman ce from hi s car.
Our oth er innovation ha s bee n th e intro duction of El ec troni c Pow er Stee ring (EP S) in se lec t mo de ls. This result s in b e tt er an d great er man euv erability. In oth er wor ds ,
our car s hav e becom e even mor e pleasurabl e to drive .
Producti on/ R&D
Spread over a sp rawling 297 acres with 3 fully -int egrat ed pro duction fa cilities , th e
Maruti U dyog Plant ha s alr eady rolled out ov er 4.3 million v ehicles . In fa ct, on an
averag e , two v ehicles roll out of th e fa ctory every minut e . And it tak es on an
averag e , ju st 14 hour s to mak e a car. Mor e importantly, with an in cred ible rang e of
11 mo de ls availabl e in 50 variant s, th ere 's a Maruti Suzuki ma de here to fit every
car -buy er' s bu dge t & dream.
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WHY M A RU T I S UZUK I
The Q uality Advanta ge
A car i s an engin ee ring p ro du ct, only a s goo d as th e t ec hnology u sed to mak e
it. Actual u se rs of our t ec hnology ar e saying som e thing v e ry clearly Maruti
Suzuki i s N o. 1 in quality :
Maruti Suzuki own ers expe rience f ewer probl em s with th e ir vehicles than any
oth er can manufa ctur er in In dia (J.D. Pow er IQ S Stu dy 2008) . The Alto wa s cho se n
N o. 1 in th e premium com pact car segm ent an d th e Estee m in th e entry l eve l mid-
size car se gm ent a cro ss 9 param e ters.
The J.D. Pow e r APEAL Stu dy 2008 p ro claim ed th e Wagon R. N o. 1 in th e
p remium com pa ct car se gm ent an d th e Es t ee m N o. 1 in th e entry l eve l mi d -
s ize car se gm ent. Thi s stu dy m e asur es own e r de light in t e rm s of des ign,
cont ent, layout an d pe rforman ce of v ehi cles a cro ss 8 p aram e t e rs .
Maruti Suzuki ha s a sal es n e twork of 307 s tat e - of -th e- art showroom s a cro ss
189 cit ies *, with a workfor ce of ov e r 6000 train ed sal es pe r sonn e l to gui de
our cu stom e rs in fin d ing th e right car. Our high sal es an d cu s tom e r car e
s tan dar ds led u s to a chi eve th e N o. 1 nam ep lat e in th e J.D. Pow e r SSI s tu dy
2008 . Th e SSI s tu dy m e asur es sal es sati sfa ction a cro ss 6 p aram e t e r s: de al
rece ived pape rwork, de al e r fa cility, sal espe rson, an d de live ry timing an d
de live ry p ro cess . Maruti Suzuki ha s not only got th e N o. 1 nam ep lat e in th e
J.D. Pow e r SSI stu dy 2008 , but al so rank ed way abov e th e in du s try av e rag e
(Maruti Suzuki wa s at 784 whil e in du stry av e rag e wa s at 760) . What i s
s ignificant i s that it wa s rank ed abov e Sko da, For d , Ch evrol e t, Mit subi shi an d
Hyun dai.
To b e re ally ha pp y with th e car you own, it shoul d hav e a r e liabl e se rv ice
n e twork at han d an d within easy re a ch. Th e ir 1036 city strong se rvice
n e twork i s equi pped to se rvice 20 ,000 vehi cles a day. N o won de r Maruti
Suzuki ha s b ee n awar ded th e N o. 1 nam ep lat e in cu s tom e r sati sfa ction in
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In dia for th e fifth y e ar in a row, a f e at un p recede nt ed for any automobil e
mark e t leade r in th e worl d .
In th e J.D. Pow e r CSI stu dy 2008 , Maruti Suzuki scor ed th e high es t a cro ss all
7 param e t e rs: leas t p robl em s expe ri en ced with v ehi cle se rviced , high es t
se rv ice quality, b es t in -se rv ice expe ri en ce , b es t se rvice de live ry, b es t in -
se rv ice expe ri en ce , mo s t u se r -fr ien d ly se rvice an d b es t se rvice initiation
expe ri en ce .
In fa ct, 92% of Maruti Suzuki own ers f ee l that work g e ts don e right th e first tim e
during se rvice . The J.D. Pow er CSI stu dy 2008 also r eveals that 97% of Maruti
Suzuki own ers woul d probabl e recomm end th e sam e mak e of v ehicle , whil e 90%
own ers woul d probabl e rep ur cha se th e sam e mak e of v ehicle .
A Buyin g Experience Like No O ther
Maruti Suzuki ha s a sales ne twork of 307 stat e-of -th e-art showroom s acro ss 189
cities , with a workfor ce of ov er 6000 train ed sales pe rsonn e l to gui de our
custom ers in fin ding th e right car. Our high sales an d custom er car e stan dar ds led
us to a chieve th e N o. 1 nam ep lat e in th e J.D. Pow er SSI Stu dy 2008 .
Q uality Service Across 1036 Citie s
In th e J.D. Pow er CSI Stu dy 2008 , Maruti Suzuki scor ed th e high es t a cro ss all 7
param e ters: least probl ems expe rienced with v ehicle se rviced , high es t se rvice
quality, b es t in -se rvice expe rience , bes t se rvice de livery, b es t se rvice advisor
expe rience , mo st u se r -friendly se rvice an d bes t se rvice initiation expe rience .
92% of Maruti Suzuki own ers f ee l that work g e ts don e right th e first tim e during
se rvice . The J.D. Pow er CSI stu dy 2008 also r eveals that 97% of Maruti Suzuki
own ers woul d probably r ec omm end th e sam e mak e of v ehicle , whil e 90% own ers
woul d probably r ep ur cha se th e sam e mak e of v ehicle .
One Stop Shop
At Maruti Suzuki, you will fin d all your car r e lat ed needs m e t un de r on e roof.
Wh e th er it is easy finan ce , insuran ce , flee t manag em ent se rvices , exchang e - Maruti
Suzuki i s se t to provi de a single-win dow solution for all your car r e lat ed needs .
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The Low Cos t M aintenance Advanta ge
The a cqui s ition co s t i s unfortunat e ly not th e only co st you fa ce wh en buying
a car. Although a car may b e affor dabl e to buy, it may not n ecess arily b e
affor dabl e to maintain, a s som e of it s regularly u sed sp ar e p art s may b e
p ri ced quit e s t eep ly . N ot so in th e case o f a Maruti Suzuki. It i s in th e
ec onomy se gm ent that th e affor dability of sp ar es is mo s t com pe titiv e , an d it
is h e re wh e re Maruti Suzuki shin es . The rece nt Auto car Surv e y con du ct ed in
Augu s t 2008 b e ar s t es timony to thi s fa ct. In th e Maruti Suzuki s tabl e , th e
Omni ha s th e low es t aggr egat e co s t of sp ar es follow ed by th e Maruti -800 .
The Maruti -800 ha s th e ch eapes t sp ar es of any In d ian car with a ba ske t of
ju s t Rs. 23 ,422 . In th e Lowe r Mi d -s ize se gm ent a s we ll , p rice-c on sc iou sn ess is
ve ry high, wh e r e th e car s hav e to b e not only affor dabl e on pur cha se p ri ce
but al so n eed to combin e quality, d rivability an d hav e comfortabl e int e rior s.
In thi s se gm ent, th e Maruti Suzuki Ve rsa ha s scor ed parti cularly w e ll with th e
low es t co s t of sp ar es in th e se gm ent. In th e Uppe r Mi d-s ize se gm ent, th e
Maruti Suzuki Bal eno ha s th e se gm ent' s low es t p ri ces on a majority of th e
sp ar es .
Low est Cos t of Ow ner ship
To b e r eally ha pp y with th e car on e own s , it shoul d b e easy on th e po cke t to
buy an d to run -whi ch i s why th e co st of own e rshi p is so im portant. An d h e re
again, a Maruti Suzuki i s a clear winn e r, a s shown by th e rece nt J.D.Pow e r CSI
s tu dy 2008 . It is cle ar that a Maruti Suzuki de light s you e ven wh en you run it
for y e ar s. The 6 high es t sati sfa ction rating s with r egar d to co s t of own e rshi p
among all mo de ls ar e all Maruti Suzuki v e hi cles: Zen, Wagon R, E s t ee m,
Maruti 800 , Alto an d Omni. Th e y ar e p rou d to hav e t h e low es t co s t of
o pe ration / km (among pe trol v ehi cles) - th e to p 5 mo de ls ar e all Maruti
Suzuki mo de ls: Maruti 800 , Alto, Zen, Omni an d Wagon R.
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Empl o yee Q uality M ea sure s
Kaizen is ba sed on th e con cep t of making in crem ental im prov em ent s in our
pro duct s. It in cor porat es a se ries of continuou s small an d simple improv em ent s,
whi ch aim at involving employees at all l eve ls.
The Sugg es tion Schem e is ba sed on th e sam e prin ciple . Unde r thi s schem e ,
employees ar e encourag ed to mak e sugg es tion s for im prov em ent in any ar ea of
our o pe ration. Ov er 50,000 sugg es tion s ar e rece ived from employees every year.
Maruti ha s won th e First place in "Excellence in Sugges tion Scheme Conte st 2007 " ,
whi ch is th e 6th con sec utiv e awar d won in a s many y ear s. This cont es t is organiz ed
by Indian National Suggestion Schemes Association (IN SSAN ). Since 1998 Maruti
ha s won thi s awar d 10 tim es .
"Quality Cir cles " ar e grou ps of five to e ight m emb ers from a parti cular work ar ea
who work a s a t eam to i de ntify prioriti es an d solve work r e lat ed probl em s in th e
ar ea.
We be lieve that it i s thi s unwav ering commitm ent to quality that will l ead to th e
furth er growth of th e organization a s com pe tition in creases .
ISO 9001: 2000
At Maruti, our a pp roa ch to quality i s in keep ing with th e Japan ese pra ct ice-- "buil d
it into th e product". Techni cian s th emse lves inspec t th e quality of work.
Supe rvisor s ed ucat e an d instru ct t echni cian s to continually im prov e pro ductivity
an d quality. Th e mov em ent of quality in dicator s is reviewed in w ee kly m ee ting s by
th e to p manag em ent.
In 2001, Maruti Udy og Ltd b ecame one of the f irst aut o m ob ile co mpanie s
any where in the wo rld to g et an ISO 9 000: 2000 certi f icati on . AV Belgium, global
au ditor s for Int ernational Organization for Stan dar disation(I SO), ce rtified Maruti
aft er a four day long au dit, cov ering vari ed param e ters like Custom er Focussed
organi sation, L eade rship, Involv em ent of pe ople , Pro cess app roa ch, System
app roa ch to Manag ement, Continual im prov em ent, e tc.
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In May 199 5, Maruti go t ISO 9 002 certi f icati on . The au dit for thi s covered quality
assuran ce in pro duction, in stallation, mark e ting an d sales as we ll as aft er sales
se rvices . W e were also on e of th e first com pani es in th e worl d to pion ee r ISO 9000
ce rtifi cation for our de alers.
In Oct ob er 1993 , MU L pa ss ed the Confo rmity of P roducti on (COP) Audit, which is
b ased on a Eur o pean Union Directive . This auth enti cat ed our quality systems an d
tes ting fa cilities for exp ort to Euro pe .
The ir empha sis on total quality ha s m eant that to day th ey ar e in a position to gui de
vendor s an d de alers in es tabli shing an d con solidating th e ir individual quality
system s. This commitm ent to quality ha s ensur ed a con sistently sati sfying pro duct
an d worl d-c lass sales an d aft er-sales se rvices .
TS16949:2002 - A new f eath er wa s added rece ntly in Maruti s cap in th e fie ld of
quality wh en th e Quality Manag em ent System of it s Press Sho p & associat ed
fun ction s (collec tive ly term ed as Press Fun ction ) got ce rtification for conforman ce
to th e requir em ent s of TS16949:2002 stan dar d.
As a part of Quality system r equir em ent s, GM r equir es all it s supp liers to b e
ce rtified to e ith er ISO TS 16949 or Q S 9000 .
These stan dar ds add ress Quality System r equir em ent s, whi ch ar e parti cularly
spec ific to th e automotiv e industry an d requir es an organization t o b e in
com plian ce with I SO 9000 system s as a ba sic requir em ent. How ever, wh ereas Q S
9000 woul d becom e de fun ct an d cease to exist aft er Dec 2010 , TS 16949 is going to
be th e stan dar d of th e futur e .
The TS 16949 stan dar d, brought out by I SO in th e year 1999 , is an extension of th e
ISO 9001:2000 stan dar d that presc rib es Quality manag em ent system r equir em ent s
that ar e spec ifically a pp licabl e to th e automotiv e industry.
TS 16949 ha s gain ed high popularity an d almo st all major automobil e players
acro ss th e glob e including GM, For d , Daiml er Chry sler, N issan, Hon da ar e
embra cing & promoting it.
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T A RG E T M A RK E T I NG
Tar get Marketin g involv es br eaking a mark e t into segm ent s an d th en
con ce ntrating your mark e ting effort s on on e or a f ew k ey se gm ent s.
The beauty of targ e t mark e ting i s that it mak es th e promotion, pricing an d distribution of your pro ducts an d/or se rvices easier an d mor e cost -e ff ec tive . Targ e t
mark e ting i s th e se lec tion of custom ers you wi sh to se rvice . The dec ision s involv ed
in it ar e:
y Which se gm ent s to targ e t
y How many pro ducts to off er
y Which pro ducts to off er in whi ch se gm ent s
There ar e thr ee steps to targ e ting :
y Mark e t se gm entation
y Targ e t choi ce
y Pro duct positioning
One of th e first thing s you n eed to do is to r efine your pro duct or se rvice so that
you ar e N OT trying to b e 'all thing s to all pe ople .
N ex t, you n eed to un de rstan d that pe ople pur cha se pro ducts or se rvices for thr ee
ba sic reason s:
y To sati sfy ba s ic n eeds .
y To solv e p robl em s.
y To mak e th e m se lves f ee l goo d .
The nex t step in creating an eff ec tive mark e ting strat egy is to z ero in on your targ e t
mark e t.
Targ e t mark e ting i s on e of cor porat e America' s mo st eff ec tive bu siness strat egies .
The ide a is to in crease sales by fir st ide ntifying, an d th en targ e ting small er, y e t
mor e profitabl e custom er grou ps within th e total mark e t.
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Four W ay s to Identi f y Tar get M arket s
1. Ge og raphic: The lo cation, size of th e ar e a, de n sity, an d climat e zon e
of your cu s tom e rs.
2. Dem og raphic s : The ag e , gen de r, in com e , family com po sition an d size ,
o ccu pation, an d ed u cation of your cu stom e r s.
3. Ps ych og raphic s : The gene ral pe rsonality, b e havior, lif e-s tyl e , rat e of
u se , repe tition of n eed , b en e fi t s sought, an d loyalty chara ct e ri sti cs of
your cu s tom e rs.
4. Behavi o rs : The n eeds th ey see k to fulfill th e leve l of knowl ed ge ,
information sour ces , attitu de , u se or r esp on se to a p ro du ct of your
cu stom e rs .
One of th e bes t way s to i de ntify your targ e t mark e t is to look at your existing
custom er ba se . Who ar e your i de al client s? What do th ey hav e in common ? If you
do not hav e an existing custom er ba se , or if you ar e targ e ting a com ple te ly new
au dience , spec ulat e on who th ey might b e , ba sed on th e ir n eeds an d th e benefits
th ey will rece ive . Inves tigat e com pe titor s or similar bu sinesses in oth er mark e ts to
gain in sight.
TARGET MARKETING
y Who ar e your b es t custom ers? Wh ere shoul d you direc t your mark e ting
activiti es?
y Wh ere an d how shoul d you allo cat e your a dverti sing an d promotional
effort s?
Targ e t Mark e ting, p rovi des Fo cu s for your bu s in ess . It h e lps to es tabli sh
criti cal O pe rational goal s an d de fines what mu s t b e don e to a chi eve th em
W hat Cu sto mer s W ant
y Mark e ting i s mor e than an a ctivity, it i s an attitu de
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y In st ead of trying to g e t cu stom e rs to buy what th e firm lik es to mak e ,
or ha ppe n s to hav e on han d , th e mark e ting ori ent ed firm tri es to
p ro du ce or se ll w hat its customers w an t w hich can be sold at a pro fit.
y Do not simply throw out everything that you now hav e an d rep la ce goo ds or
pro duction ma chin ery with com ple te ly new it em s. y HOW EVER, AS YOU ANALYZE YOUR MARKET AND CUSTOMER PROFI LES,
AND SO GAIN AN UNDERSTANDING OF THEIR W ANTS, DESIRES, AND
PERCEIVED NEEDS, YOU CAN BEGIN TO REORIENT YOUR BUSINESS OVER
TIME TO TAKE BEST ADVANTAGE OF THESE NEW INSIGHTS. CONSIDER
BOTH THE SHORT TERM AND LONG-TERM IMP LICATIONS OF DEVELOPING
AND IMP LEMENTING THE RIGHT TARGET MARKETING STRATEGY FOR
YOUR BUSINESS.
Cus to mer Attitude s
y For a long tim e , pe ople hav e be lieved that a dverti sing can b e used to
chang e pe ople 's min ds about what th ey want. Thi s is an in cred ibly difficult
pro cess at b es t, an d an ex tr em e ly expe nsive on e . Becau se of th ese two
factor s, it is a pro cess that small er firm s simply cannot affor d to pur sue .
Instead , it is mu ch mor e pro ductive for any size firm to tun e in to targ e t
custom er attitu des as th ey curr ently exist. On ce th ey hav e ide ntifi ed th e
actual prevailing attitu des , th ey can b egin to organiz e com pany r es our ces
needed to cons tructively addre ss and sati sf y the se attitude s the key
que stio n is,
" W hat are the e xis tin g cu s t o mer attitude s?"
With thi s as an obj ec tiv e , de ve lo p ing an un de rs tan d ing of ex isting cu stom e r
attitu des b ec om es esse ntial, an d th e ir ide ntifi cation b ec om es an im portant
part of th e mark e ting p ro cess . On ce th ese cu s tom e r attitu des , n eeds or
p re f e r en ces ar e ide ntifi ed , th e entir e firm can th en organiz e it se lf to sati sfy
th ese n eeds a s com p le t e ly an d e fficiently a s p o ss ible .
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M A RU T I CULTUR E
The ir employees ar e th e ir gr eat es t str ength an d asse t. It i s thi s un de rlying
philo sophy that ha s moul ded th e ir workfor ce into a t eam with common goal s an d
obj ec tives . The ir Employee- Manag em ent r e lation ship is th erefor e chara cterized by :
y Parti cipativ e Manag em ent.
y Team work & Kaiz en.
y Communi cation an d information sharing.
y Ope n offi ce cultur e for easy a ccess ibility
To im plem ent thi s philo sophy, th ey hav e tak en se veral m easur es like a flat
organizational stru ctur e . There ar e only thr ee leve ls of r esp on sibilities ranging from
th e Boar d of Direc tor s, Division H eads to D ep artm ent H eads . Oth er visible f eatur es
of thi s philo sophy ar e an o pe n offi ce , common uniform s (at all l eve ls), an d a
common cant ee n for all.
This stru ctur e ensur es be tt er communi cation an d speed y dec ision making
pro cesses . It al so creat es an environm ent that buil ds tru st, tran spar ency an d a
se nse of b e longing among st employees .
Fo r Inve sto rs:
Maruti U dyog Limit ed , a sub sidiary of Suzuki Motor Cor poration of Ja pan, ha s bee n
th e leade r of th e Indian car mark e t for about two dec ades . It s manufa cturing plant,
locat ed som e 25 km south of N ew De lhi in Gurgaon, ha s an in stall ed capacity of
3,50 ,000 unit s pe r annum, with a capability to pro duce about h alf a million
vehicles .
The com pany ha s a portfolio of 11 bran ds , including Maruti 800 , Omni, premium
small car Zen, int ernational bran ds Alto an d WagonR, off -roa de r Gypsy, mi d size
Estee m, lu xury car Baleno, th e MPV, Ve rsa, Swift an d Luxury SUV Gran d Vita ra XL7.
In r ece nt y ear s, Maruti ha s ma de major stri des towar ds its goal of b ecoming Suzuki
Motor Cor poration' s R and D hub for A sia. It ha s intro duced upgra ded version s of
WagonR Z en an d Estee m, com ple te ly des ign ed an d styled in -hou se .
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Maruti' s contribution a s th e engin e of growth of th e Indian auto in dustry, in deed
its impact on th e lif es tyle an d psyche of an entir e generation of In dian mi dd le class ,
is wide ly a cknowl ed ged . Its emotional conn ec t with th e custom er continu es .
Maruti to ps custom er sati sfa ction again for sixth y ear in a row a ccor ding to th e J.D.
Pow er Asia Pa cific 2009 India Custom er Sati sfa ction In dex (CSI) Stu dy.
The com pany ha s also rank ed high es t in In dia Sales Sati sfa ction Stu dy.
The com pany' s quality system s an d pra ctices hav e bee n rat ed as a "b enchmark for
th e automotiv e industry worl d- wide " by A V Belgium, global au ditor s for
Int ernational Organi sation for Stan dar disation.
In keep ing with it s leade rship position, Maruti supp ort s saf e driving an d traffi c
manag em ent through ma ss m ed ia m ess ag es an d a stat e-of -th e art driving training
an d rese ar ch in stitut e that it manag es for th e De lhi Gov ernm ent.
The com pany' s se rvice bu sinesses including sale an d pur cha se of pre own ed car s
(Tru eValu e) , lease an d flee t manag em ent se rvice for cor porat es (N 2N ), Maruti
Insuran ce an d Maruti Finan ce ar e now fully o pe rational. Th ese initiativ es , bes ides
providing total mobility solution s to custom ers in a conv enient an d tran spar ent
mann er, hav e he lped improv e economi c viability of Th e Com pany s de alerships .
The com pany i s listed on Bombay Sto ck Exchang e an d N ational Sto ck Exchang e .
MUL is a Boar d- manag ed com pany. Curr ently th e direc tor s on th e Boar d ar e:
y Mr Shinzo N akani shi, Chairman
y Mr Jag dish Khattar, Managing Dir ec tor
y Mr Hirofumi N agao, Joint Managing Dir ec tor
y Mr Shini chi Tak euchi, Joint Managing Dir ec tor
y Mr Kinji Saito, Dir ec tor (Mark e ting an d Sales)
y Mr O samu Suzuki, Dir ec tor
y Mr R C Bhargava, Dir ec tor
y Mr S V Bhav e , Direc tor
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R ESEA RCH M E THODOLOGY
OBJECTIVES OF THE STUDY
PRIM ARY OBJECTIVE:
y To know about th e Mark e ting Strat egies of Maruti U dyog Limit ed
y To know about th e Co s Core Valu es , Vision & it s Technologi cal Advantag e
SECONDARY OBJECTIVE:
y
To know about th e bu siness strat egies of th e com pany, th e ir sales ne twork
an d th e se lling t echniqu es
y To know about th e strat egies of th e oth er play ers in th e industry
y To fin d out th e ar eas in whi ch th e com pany la cks behin d oth ers
y To fin d out th e ar eas of im provi sation
y To know about th e organization stru ctur e
y To know about th e com pe titiv e str ength s of th e com pany
y To know about th e new bu siness initiativ es
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F I ND I NG S AB OUT T E CO M PA NY
PRICES OF MARUTI PRODUCTS
Car mark e t leade r Maruti U dyog Limit ed ha s announ ced a marginal in crease in
price of ce rtain mo de ls. The increase , whi ch com es into eff ec t , vari es from 0.17
pe rcent to 1.47 pe rcent.
The p ri ce in crea se is due to ri se in in put co st s an d fr e ight co s t s, whi ch
in creased following th e ri se in oil p rices . In thi s pha se , th e com pany ha s
dec ided to pa ss on only a part of th e in cre ase in co s t s to th e cu stom e rs .
The re is no chang e in th e p ri ces of Swift, Z en, Bal eno ( Vxi) an d WagonR(P e trol ).
Ex-Show roo m Price s in Delhi (in Rs) Mo del New Old Increa se Chan ge % M 800 Std 191646 191146 500 0.26% M 800 Std Ac 213062 212562 500 0.24% Alto S td 231585 231085 500 0.22% Alto Lx 265262 264762 500 0.19% Alto Lxi 283878 283378 500 0.18% Omni Car go LPG 194725 192725 2000 1.04%
Omni Car go 213706 213206 500 0.23% Omni (Eight Seater) 221268 220768 500 0.23% Omni LPG 230388 227388 3000 1.32% Esteem Lx 445968 444968 1000 0.22% Esteem Lxi 476223 475223 1000 0.21% Esteem Vxi 511520 510520 1000 0.20% Balen o Lxi 576173 575173 1000 0.17% Ver sa Dx 433575 432575 1000 0.23% Ver sa Dx2 471779 470779 1000 0.21% Ver sa Std 360182 359182 1000 0.28% W ago nR Lx LPG 345106 340106 5000 1.47%
W ago nR Lxi LPG 373160 368160 5000 1.36%
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ORG A N ISA T I ON S TRUCTUR E A T MUL
Maruti U dyog lt d. ha s a flat organi sation stru ctur e with a ma ximum of thr ee leve ls.
Head off ice
MD
MFG FIN OTHER
DIRECTOR N CON TROLLER GM DGMS AGMS
GM/ DGM S DGMS AGMS MGRS/AMS
MGRS/AMS MGRS/AM SR GM/EX
EN GIN EERS (EX) SR. EX. /EX TRAIN EES
J.E. (TRAIN EES)
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THE PRODUCTION PROCESS AT MARUTI
S T EE L CO I L S
B L A NK I NG
P R ESSI NG
W E LD I NG
PAI NT I NG
ASSE M B LY
VE H I CL E I N SPE CT I ON
T ES T RUN
S U PP LY &D ISPA TCH
FROMVE NDOR
FROMVE NDOR
FROMVE NDOR
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CO M PE T I T I VE S TR E NGTH S
MUL be lieves that th ey ar e we ll position ed to maintain an d enhan ce th e ir
leade rship position in th e small car se gm ent in In dia, whil e continuing to off er
pro ducts in mo st se gm ent s of th e Indian mark e t, on a ccount of th e ir com pe titiv e
str ength s, whi ch in clu de th e following :
Experti s e in small car techn o log y: As a sub sidiary of Suzuki, th ey hav e a ccess
to globally r espec t ed t ec hnology in th e small car se gm ent. Th ey hav e th e
advantag e of Suzuki s expe rt i se in all a spec t s of small car t ec hnology an d
des ign, with r espec t to th e ir p ro du ct s , th e ir manufa cturing p ro cesses an d
bu s in ess p ra cti ces , th e de ve lo pm ent of th e ir su pp ly chain an d th e training of
th e ir pe rsonn e l.
Exten s ive pr o duct p o rt fo lio : The ir dive rse p ro du ct rang e in clu des car s in
se gm ent s A, B an d C, an d utility v ehi cles . The y manufa ctur ed five out of th e
t en mo de ls that w e re sol d in th e combin ed A an d B se gm ent s in In d ia in fi scal
2002 . They ar e th e only manufa ctur e r of car s in se gm ent A ( p ri ced b e low
Rs .300 , 000) wh e re th ey hav e two mo de ls , th e Maruti 800 an d th e Omni. Th e
Maruti 800 ha s b ee n th e larg es t se lling car in In dia for se ve ral y ear s, an d
continu ed to hav e th e high es t sal es volum es of any mo de l , with a mark e t
shar e of 25 .3%.
Q uality pr o duct s : In N ov emb e r 2001 , th e y w e re on e of th e firs t automobil e
manufa ctur e r s in th e worl d to r ece ive th e ISO 9001:2000 ce rtifi cation. Th e y
b egan to exp ort p ro du ct s in 1988 , p rimarily in or de r to b en chmark our
p ro du ct s again st int e rnational quality stan dar ds . The y hav e exp or t ed
p ro du ct s to a pp ro ximat e ly 70 countri e s , in clu d ing countri es in W es t e rn
Euro pe . Th e ir p ro du ct s for exp ort ar e manufa ctur ed u s ing th e sam e asse mbly
line as our p ro du ct s for th e dom es ti c mark e t.
Exten s ive sale s and s ervice net wo rk: They b e lieve that th ey hav e th e larg es t
n e twork of de al e rs an d se rv ice ce nt e rs among st car manufa ctur e rs in In dia.
As of Mar ch 31 , 2007 , w e ha d 178 authoriz ed de al e rs with 243 sal es outl e t s
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in 161 cit ies . Th ey es timat e th e ir car p ar c to b e in excess of 3.5 million
vehi cles . To se rv ice thi s car par c, at Mar ch 31 , 2007 , th ey ha d 342 de al e r
work sho ps an d 1 ,545 Maruti Authoriz ed Se rv ice Station s, or MA SSs, whi ch
cov e red 898 cit ies in In dia ba cked by Exp ress Servi ce Cent e rs on 30 highway s
acro ss th e country. In a dd ition to th e d istribution of th e ir car s, th e irde al e rshi p n e twork i s a criti cal r es our ce in our e ffort s to p rovi de cu s tom e r s
with a on e- s to p sho p for automobil es an d automobil e re lat ed p ro du ct s an d
se rv ices su ch a s automobil e finan ce , automobil e in suran ce , Maruti -ce rtifi ed
p re- own ed car s availabl e for pur cha se , a n d le as ing an d flee t manag e m ent, in
or de r to p romot e cu stom e r loyalty.
Brand s tren gth : They hav e b ee n p rese nt in th e In dian mark e t for almo s t
tw enty y ear s an d hav e built th e ir bran d on th e ba sis of th e valu es of tru s t
an d re liability. Mo s t of th e ir p rin ci pal com pe titor s hav e b ee n p rese nt in th e
In dian passe ng e r car mark e t for a significantly short e r pe rio d . Ce rtain
manufa ctur e r s hav e ce ased to manufa ctur e ce rtain p ro du ct s shortly aft e r
intro du cing th em, or hav e le ft th e mark e t altog e th e r. In contra st, th ey
continu e to supp ort th e maint enan ce of th e ir p ro du ct s. This ha s contribut ed
to th e s tr ength of th e ir bran d . In 2000 , 2001 an d 2002 , J. D. Pow e r Asia
Pa cif ic, In c. rank ed u s N o. 1 in th e In d ia Cu stom e r Sati sfa ction In dex , whi ch
assesses cu stom e r sati sfa ction with p ro du ct quality an d de al e r se rv ice . Th ey
b e lieve that thi s wa s th e first tim e that a volum e leade r in th e automobil e
in du s try anywh e r e in th e worl d wa s rank ed fi rst on th e JD Pow e r Cu s tom e r
Sati sfa ction In dex . N FO Automotiv es 2002 Total Cu stom e r Sa ti sfa ction Surv e y
rank ed Maruti p ro du ct s as N o. 1 in th e Economy , Pr emium Com p a ct an d
Entry Mi ds ize se gm ent s r espec tive ly, for 2002 .
Inte grated manu f acturin g f acility: The ir manufa cturing fa cility com p ri ses
thr ee int egrat ed p lant s with fl ex ibl e asse m bly lin es lo cat ed at Gurgaon in th e
north e rn stat e of Haryana. Th e ir fa cility ha s advan ced engin ee ring capability
an d e a ch p lant i s u pgra ded on an ongoing ba sis to im p rov e p ro du ctivity an d
quality. A s a r es ult, th e ir fir s t plant se t u p in fi scal 1984 is t e c hnologi cally at
par with th e ir n ew e r p lant s an d is al so u sed in th e p ro duction of th e ir n ew
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mo de ls. Th ey b e lieve that th ey ar e on e of th e mo s t e fficient among th e
vehi cle manufa cturing fa cilities of Suzuki s sub sid iari es out side Ja pan in
t e rm s of p ro du ctivity m e asur ed as th e ratio of numb e r of v ehi cles p ro du ced
to numb e r of e m p loy ees . Th ey hav e an in s tall ed capa city of 350 ,000 vehi cles
pe r year, whi ch i s th e high es t among pa sse ng e r car manufa ctur e rs in In d iaan d among th e p asse ng e r car manufa cturing fa ci li ties of Suzuki s sub s id iari es
out s ide Ja pan. Th e y hav e con sis t ently p ro du ced in excess of th e ir in stall ed
cap a city in th e five fisc al ye ar s en ded Mar ch 31 , 2002 .
The y b e lieve that th ey woul d b e abl e to exp an d th e ir p ro du ction to 500 ,000
car s pe r year with minimal a dd itional cap ital expe n d itur e . This woul d enabl e
th em to b en e fit from signifi cant ec onomi es of sc al e .
Str o n g vend o r b a s e and hi gher rate s of lo calizati o n : They work clo se ly withth e ir ven dor ba se for th e su pp ly of raw mat e rial s, com pon ent s an d sp ar e
part s of th e ir p ro du ct s. In or de r to im p rov e quality an d gen e rat e ec onomi es
of scal e , th ey hav e red u ced th e numb e r of th e ir ven dor s of com pon ent s in
In dia from 370 as of Mar ch 31 , 2000 to 299 as of Mar ch 31 , 2007 , an d int en d
to continu e to r ed u ce th e numb e r of our v e n dor s . 113 of th e ir ven dor s at
Mar ch 31 , 2007 w e re in t ec hni cal collaboration with for e ign entiti es . As of
th e sam e dat e , w e ha d strat egic equity int e res t s through joint v entur e
agr ee m ent s in 13 of th e ir ven dor s , who tog e th e r su pp ly a sub stantial portion
of th e ir pur cha ses of com pon ent s. The p ro du ction sys t e m s of th e ir ven dor s
ar e gen e rally align ed to th e ir n eed for a r e liabl e an d tim e ly su pp ly of
com pon ent s that m ee t th e ir quality r equir em ent s. This ha s enabl ed th em to
in crease th e p ro portion of lo cally sour ced , low e r co s t com pon ent s in th e ir
mo de ls, a con cep t th ey re f e r to a s lo calisation. Th ey hav e b ee n abl e , in
collaboration with th e ir ven dor s, to in cr e ase th e rat e at whi ch th ey ar e abl e
to lo calise p ro du ction of th e ir n e w mo de ls ov e r tim e . This ha s h e lped th e m
red u ce th e co st of th e ir com pon ent s .
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Cos t com pe titiv en ess ha s b ee n, an d continu es to b e , ce ntral to th e ir strat egy
as th e lead ing manufa ctur e r in th e small car se gm ent to exp an d th e size of
th e mark e t by off e ring com pe titiv e ly p ri ced , high quality p ro du ct s . The
com pon ent s of thi s s trat egy ar e:
y Highe r leve ls of lo calization
y Ve n dor parti cipation in cos t r ed u ction
y Cost r ed u ction on warranti es
y Red u ction in initial inv es tm ent co s t
y Red u ction in numb e r of v ehi cle p latform s
y Achi eve furth e r co s t r ed u ction through high e r p ro du ctivity
Low er cos t of ow ner ship:
Through th e ir bu sin ess s trat egies , th e y see k to r ed u ce th e con sum e r s co st of
own e rshi p of th e ir car s, whi ch com p ri ses th e co s t of pur cha se , th e co s t of
fu e l an d maint enan ce , in clu ding sp ar e part s an d rep air s, during th e lif e of
th e vehi cle , in suran ce , an d res al e valu e .
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SA L ES NE TWORK
De al e rs: They off e r th e ir p ro du ct s to th e cu s tom e r through a n e twork of 178
authoriz ed de al e rs with 243 sal es outl e t s a cro ss 161 cit ies . They b e lieve that
thi s is th e larg es t n e twork of de al e rs among st car manufa ctur e rs in In d ia.
The ir de al e rs em p loyed mor e than 3,500 sal es exec utiv es . Th ey ar e linked to
th e ir sal es n e twork through th e ir sec ur e ex tran e t -ba sed information
n e twork. Th e sal es of th e ir sp ar es , a ccess ori es an d automobil e - re lat ed
se rv ices su ch a s in suran ce an d finan ce se rv e a s add itional sour ces of r eve nu e
for our de al e rs . Th ey b e lieve that th e availability of th ese re lat ed p ro du ct s
an d se rv ices at sal es outl e t s al so h e lps to attra ct cu s tom e rs to th e outl e t s
an d p romot es sal es of th e ir car s.
Agree m ent s with de al e rs : The y gen e rally a pp oint a limit ed numb e r of de al e rs
for a ce rtain g eogra phi cal t e rritory. Th e ir de al e rs p rovi de se rvices to
cu stom e rs su ch a s p re-de live ry in spec tion of v ehi cles , sal es of car s, aft e r
sal es se rv ice , su pp ly of sp ar e part s an d oth e r se rvices that p romot e sal es of
car s within th e t e rritory for whi ch th e y ar e app oint ed . They hav e th e right to
se ll th e ir p ro du ct s an d se rvices through oth e r de al e rs or int e rm ed iari es in
any t e rritory, wh e th e r or not on e of th e ir de al e rs is alr eady es tabli sh ed in
that t e rritory. Th e ir de al e rs ar e requir ed to maintain th e ir outl e t s inaccor d an ce with th e ir spec if ication s an d em p loy w e ll -train ed sal es s taff.
The ir agr ee m ent s with th e ir de al e rs u sually hav e t e rm s of fiv e year s. These
agr ee m ent s ar e gen e rally r en ewabl e for su ccess ive t e rm s of thr ee ye ar s , by
mutual agr ee m ent. Th e agr ee m ent s ty p ically pe rmit t e rmination by e ith e r
th e de al e r or th em with six month s p rior noti ce .
De al e r training : They hav e es tabli sh ed stan dar d o pe rating p ro ced ur es ,
showroom ambi en ce an d se rvice quality stan dar ds for de al e rshi p s . The y
p rovi de pe rio d ic training through th e ir training ce ntr es lo cat ed at th e ir
manufa cturing fa cility an d at Ch ennai, Kolkata, Guwahati an d Pun e . Th ey
hav e train ed mor e than 2,600 an d 3,400 de al e r sal es pe rsonn e l. The ir
sub sid iary, Tru e Valu e Solution s Ltd ., p rovi des valu e-added se rvi ces , su ch a s
man pow e r r ec ruitm ent an d training, to th e ir de al e rs.
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A FT E R- SA L ES SE RV I C E
Net wo rk
As on dat e th e r e ar e 342 Maruti de al e r work sho ps an d 1,545 Maruti
Authori sed Se rvice Station s, or MA SSs, cov e ring 898 cit ies in In d ia. In
add ition, 24- hour mobil e se rvi ce is off e red in 38 cit ies un de r th e bran d
Maruti On -roa d Serv ice . They int en d to ex t e n d thi s se rvice to an a dd itional
25 cit ies ov e r th e n ex t thr ee year s. As a b en chmark for de al e rs with r espec t
to se rv ice quality an d infra stru ctur e fa cilities , th ey hav e laun ch ed se rvice
s tation s un de r th e bran d Maruti Service Ma s t e r s, or M SMs, in thr ee
lo cation s in In d ia. Th e y hav e se rvice s tation s on 30 highway s in In d ia un de r
th e bran d Exp r ess Se rvice Station s .
To p romot e sal es of th e ir sp ar e part s an d th e availability of high quality,
re liabl e sp ar e part s for th e ir p ro du ct s , th ey se ll sp ar es un de r th e bran d nam e
Maruti G enuin e Part s , or MGP. Th ese ar e d istribut ed through th e ir de al e r
n e twork an d through authori sed se lle rs of th e ir sp ar e par t s, to whom th ey
re f e r a s s to ckis t s.
Many of th e ir MASSs ar e at r emot e lo cation s wh e r e th e y do not hav e
de al e rs. In or de r to in crease th e pe n e tration, in t e rm s of sal es volum es , of
th e ir p ro du ct s in th ese re mot e ar e as, th e y ar e exp loring o pp ortuniti es to
int egrat e som e of th e MASSs into th e sal es p ro cess in or de r to in cr ease sal es
of th e ir car s an d re lat ed p ro du ct s an d se rvices su ch a s sp ar es an d
access ori es , in suran ce an d finan cing.
Genuine Acce sso rie s
The y hav e al so ent e r ed th e bu s in ess of mark e ting car a ccess ori es un de r th e
bran d nam e Maruti G enuin e Access ori es , or MGA, through th e ir de al e rshi p
n e twork. Th ey see k to p rovi de cu s tom e rs with th e o pp ortunity to cu s tomiz e
th e ir vehi cles with a ccess ori es su ch a s mu s ic syst em s , sec urity syst e m s, car -
car e p ro du ct s an d utility pro du ct s .
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W arranty and Extended W arranty Prog ram
The y off e r a two -year warranty on all th e ir vehi cles at th e tim e of sal e . The ir
de al e rs ar e r equir ed to a dd r ess any claim ma de by a cu stom e r, in a ccor dan ce
with p ra cti ces an d p ro ced ur es p resc rib ed by th e m, un de r th e p rovi sion s of
th e warranty in for ce at that tim e . Th e de al e rs sub se qu ently claim th e
warranty co s t from th em. Th ey analy se warranty claim s from de al e rs an d
e ith e r claim th e co s t from v en dor s, in th e ca se of de f e c tiv e com pon ent s , or
b ear th e co st our se lves , in th e case of manufa cturing de f ec t s.
The y off e r an ex t en ded pai d -warranty p rogram mark e t ed un de r th e bran d ,
Fo rever Yo ur s for th e thir d an d fourth y ear aft e r pur cha se . Th ey hav e
ent e red into arrang em ent s with in suran ce com pani es to cov e r th e co s t s of
warranti es off e red un de r thi s p rogram. Th e ex t en ded warranty p rogram i s int en ded to maintain th e de al e r s conta ct with th e cu stom e r an d in cre ase
th e r evenu e gen e rat ed from sal e of sp ar es , a ccess ori es an d automobi l e-
re lat ed se rvices . An e ffort i s ma de during th e pe rio d of th e ex t en ded
warranty to en courag e th e cu s tom e r to exchang e hi s ex isting Maruti car for a
n ew Maruti car, or u pgra de to a n ew Maruti car.
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TH E P L A YE R S I N TH E I ND IA N A UTOMO BI L E I NDU S TRY
Hyundai Mo t o r India Ltd
Hyun dai Motor In dia Limited (HMIL) is a wholly own ed sub sidiary of Hyun dai Motor
Com pany, South Kor ea an d is th e sec on d larg es t an d th e fa stes t growing car
manufa ctur er in In dia. HMIL prese ntly mark e ts 31 variant s of passe ng er car s in six
se gm ent s. The Santro in th e B se gm ent, G e tz in th e B+ se gm ent, th e Acce nt in th e C
se gm ent, th e Elantra in th e D se gm ent, th e Sonata Emb era in th e E se gm ent an d
th e Tucson an d Terra can in th e SUV se gm ent.
The com pany r ecor ded combin ed sales of 252 ,851 duri ng calendar y ear 2009 with
a growth of 17.26% ov er year 2008 . HMIL is Ind ia' s fastes t growing car com pany
having roll ed- out ov er 970 ,000 car s in ju st ov er 80 month s since its incep tion an d is
th e larg es t export er of passe ng er car s with exp ort s of ov er Rs. 1,800 cror es . HMIL
ha s recor ded a growth of 27.2% in export s over th e year 2008 .
HMIL s fully int egrat ed stat e-of -th e-art manufa cturing plant n ear Ch ennai boa sts
som e of th e mo st a dvan ced pro duction, quality an d tes ting capabiliti es in th e
country. In continuation of it s inves tm ent in providing th e Indian custom er global
technology, HMIL ha s announ ced plan s for it s sec on d plant, whi ch will pro duce
300 ,000 unit s pe r annum, rai sing HMIL s total pro duction capacity to 600 ,000 pe r
annum by 2007 . The plant will b e built on a 2.1 million squar e m e ter site ad jacent
to th e existing fa cility .HMIL is inves ting to exp an d capacity in lin e with it s
positioning a s HMC s global exp ort hub for com pact car s. Apart from exp an sion of
pro duction capacity, HMIL plan s to exp an d its de aler n e twork, whi ch will b e
increased from 157 to 200 thi s year. An d with th e com pany s gr eat er fo cus on th e
quality of it s aft er -sales se rvice , HMIL s se rvice ne twork will b e exp an ded to ov er
1,000 in 2010 .
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Tata Mo t o rs
Tata Motor s is on e of th e larg es t com pani es in th e Tata Grou p with a total
in com e of U S$ 2.35 billion. Mor e than 3 million Tata v ehi cles p ly on In d ian
roa ds making Tata a dominant for ce in th e Ind ian automobil e in du s try.
Tata Motor s is In dia ' s only fully int egrat ed automobil e manu fa ctur e r with a
portfolio that cov e rs tru cks , bu ses , utility v ehi cles an d passe ng e r car s . It
woul d b e no ex agg e ration to say that Tata Motor s p rovi des th e wh ee ls for
In dia ' s growth.
Tata Motor s ow es its leading position in th e Indian automobil e industry to it s
strong fo cus on in digenisation. Thi s focus ha s driven th e Com pany to se t u p worl d -
class manufa cturing unit s with stat e-of -th e-art t echnology. Ev ery stag e of product
evolution -des ign, de ve lopm ent, manufa cturing, a sse mbly an d quality control, i s
carri ed out m e ticulou sly. Th e ir manufa cturing plant s ar e situat ed at Jam shedp ur in
th e East, Pun e in th e Wes t an d Lucknow in th e N orth.
Ford India Limited
The Ford Motor Com pany ha s a ri ch lega cy of tran slating b e tt er motoring i de as to
th e roa ds . It ha s manufa ctur ed notabl e bran ds such a s th e Ford , Lincoln, M ercury
an d th e Jaguar. It i s among th e to p five industrial cor poration s in th e worl d an d is
availabl e in mor e than 200 countri es aroun d th e worl d.
Ford ha s ent ered th e Indian mark e t through a ti e - up with Mahin dra Motor s to
manufa ctur e th e Ford Escort, A proj ec t that ha s bee n se t u p with an inv es tm ent of
Rs.1700 cror e . Ford India Limited is a sub sidiary of For d Motor Com pany; curr ently
Ford ha s a 78% stak e , whi ch is going u p to 92% soon. Th e Maraimalai N agar Plant
of For d India Limited , locat ed roughly 45k.m.from Ch ennai, provides employm ent
to ov er 20000 pe ople .The plant ha s th e capacity to manufa ctur e 1,00,000 vehicles
pe r annum, equi pped with stat e-of -th e-art v ehicle manufa cturing t echnology from
Ford.
Prese ntly off ering se ven diff erent mo de ls, For d India Limited (FIL) is cat ching u p
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fa st with th e Indian con sum er. Thi s is sec ur ed through a quality check program
ba sed on th e prin ciples of N OVA - C (N ew Overall Vehicle Audit - Custom er)
wh ere in daily ran dom checks ar e con ducted from a custom er' s point of vi ew. To b e
doubly sur e , routin e calls ar e ma de to de alerships to check th e quality of car s
de livered to th em.
At Mahin d ra' s de al e rshi ps ar e p rese nt train ed p rof ess ional s who p rovi de th e
b es t leve ls of se rvi ce in In d ia. It s int en s ive man pow e r training, a dvan ced
se rv ice equi pm ent an d ded icat ed con sum e r sati sfa ction ar e it s p lu s point s
whi ch ar e b e ing follow ed by th e entir e in du stry.
Acknowl ed gem ent ha s com e in th e form of th e J D pow er 1997 India Initial Quality
an d Custom er Sati sfa ction Awar ds . These int ernationally a cclaim ed an d recogniz ed
awar ds vot ed th e Ford Escort a s th e Bes t Quality car an d th e Mahin dra For d an d its
de alerships were rat ed th e high es t in Cu stom er Sati sfa ction. Thi s is an honour a s it
it s only th e sec on d tim e in automotiv e history that th e sam e bran d/manufa ctur er
ha s rece ived both th e awar ds in th e sam e year.
General Mo to rs India
Ge
ne
ral Motors
Ind
ia, incor
porat
edin
1994a
sa
50-50joint v
entur
e com
pany with
th e C.K.Birla Grou p of Com pani es , b ecam e a fully own ed sub sidiary of GM in 1999
wh en GMOC bought th e remaining shar es . The com pany wa s res tru ctur ed in 1999
an d wa s conv ert ed from a Publi c Limited com pany to a Privat e Limited com pany.
GM APH LLCcurr ently hol ds 86 pe rcent of voting shar es , an d Holde n (Australia )
hol ds 14 pe rcent. Th e SPO bu siness wa s int egrat ed with th e main bu siness in th e
sam e com pany in 2000 .
In India, GM str ength ened its prese nce with n ew pro duct laun ches Chevrol e t O ptrain 2003 an d Chevrol e t Tav era (Multi Utility Vehicle) in 2004 . Similarly in 2008 , GM
India is expec ted to r egister a growth of 90% over 2007 . With sales volum e going
up, th e mark e t shar e of GM In dia ha s gon e to n early 2%. T he sales volum e in 2007
wa s 15,155 unit s whil e 2008 figur e is expec ted to b e aroun d 27,000 unit s. In 2008 ,
th e com pany sold a total of 26,166 car s as again st 15,155 car s in 2007 registering a
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growth of 73% whil e overall passe ng er car growth during th e year wa s only aroun d
23-24% . These included 9191 Chevy Optra s in Entry 'D' Lu xury sed an se gm ent, 8369
Ope l Corsas an d 8417 unit s of th e new g eneration premium multi -utility v ehicle
(MUV) Chevrole t Tav era.
The existing GM In dia plant wa s originally built by Hin dustan Motor s. In 1994 , GM
India ent ered into a 50% Joint Ventur e partn ership with Hin dustan Motor s an d
mo de rniz ed th e 45,000-s quar e-m e ter plant n ear Halol, 45 kilom e ters northw es t of
Vadodara, in th e wes tern stat e of Gujarat. In F ebruary, 1999 , GM bought th e
hol dings of Hin dutan Motor s an d GM India b ecam e a 100% sub sidiary of G eneral
Motor s Corporation of U SA. The plant pro duces th e Ope l Corsa, Cor sa Sail,
Chevrol e t O ptra, an d Chevrole t Tav era. Th e Chevrol e t For es ter an d Ope l Vec tra ar e
sold as CBUs (Com p le te ly Built in Unit s) an d as im port ed from Ja pan an d Germany
respec tive ly.
All em p loyees of Gala xy Toyota shall con side r how th ey shoul d act an d how
th ey might chang e th e ir way s to b en e fit th e com pany. Th e y laun ch on e Co
Bran ded Cred it Car d to p rovi de add itional b en e fi t s an d se rvi ces to th e
Toyota cu s tom e rs . This Cred it Car d will give Toyota cu s tom e rs b e tt e r
paym ent fl ex ibility an d conv eni en ce , like Cus tom e r ge t s fr ee se rv ice vou ch e r
with th e car d , Spec ial Invit e to co -sp on sor ed event s , Pe rsonal a cc ide nt
in suran ce cov e rag e: Up to 20 lakh s e t c. They hav e on e Gu es t Book in whi ch
th ey s tor e valuabl e comm ent s of cu s tom e rs , whi ch th ey think ar e ve ry
im portant for th e m, whi ch will h e lp th em to im p rov e th e ir se rv ice .
HO NDA
Hon da is on e of th e leading manufa ctur ers of automobil es an d pow er pro ducts an d
th e larg es t manufa ctur e of motor cycles in th e worl d. They hav e 20 de alers in 42
diff erent cities aroun d India. In N ew De lhi th ey hav e 6 de alers; I hav e visit ed on e of
th em, whi ch is in N ajafgarh Roa d.
They do surv eys to know custom ers need . They targ e t e ith er existing or th e ir
pe rspec tive custom ers by giving a dverti se m ent in th e newspape r or through th ere
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sati sfied custom ers whi ch give ref erences . They don t be lieve on targ e ting
com pe titor s custom ers becau se by not doing so th ey hav e such a bran d rep utation
with goo d quality pro ducts, only through thi s th ey ar e abl e to mak e goo d sales .
The y d isp lay th e ir mo de ls in 8th Auto E xpo, whi ch h e ld in N ew De lhi. Th ey
ar e now fo cu s ing on th e ir n ew mo de l Civic . Honda' s Civic pe rha ps d rew th e
ma ximum att ention. Th e re ason i s sim p le: Civic is a n ew car from th e hou se
of Hon da. During my surv ey I ge t to know that Hon da City Mo de l is th e
sec on d larg es t se lling car in th e C s e gm ent. Th ey hav e a goo d su pe riority
with su pe rior bran d nam e in th e country.
The y p re f e r to hav e mo de of communi cation with th e cu stom e r through mail,
t e lep hon e an d som e tim es by l e tt e r. Cu stom e r s who don t hav e tim e even to
see th e mo de l or to call th e de al e r to mak e inquiri es about th e ir r ese rvation
th ey des ir e to solv e th e ir qu e ry onlin e it se lf.
To ju dge custom er sati sfa ction th ey som e tim es invit e th e ir custom ers to hav e a
ge t tog e th er, to hav e int era ction with custom er in a minut e to know that ar e th ey
sati sfied with th e ir se rvices an d what th ey ar e expec ting from th em in th e near
futur e . They mak e ma ximum of th e ir sales from th e fresh custom ers rath er than
th e ir repe at pur cha se rs. To in crease th e ir sales th ey try to ex tort surr ep titiou s information from th e custom ers an d on th e ir end th ey aim to ensur e that th e
pro duct quality an d pro duct quantity shoul d be availabl e in r equir ed quantity in
th e ir de alership.
They hav e Feed ba ck form in whi ch th ey tak e f eed ba ck of th e custom er a s we ll as
th e ir salespe rson b ecau se through thi s th ey ar e abl e to g e t th e information of both
th e custom er & th e ir salespe rson that ar e th ey giving th e full information to th e
custom er. Thi s Dealership even provi de techni cal skills an d techniqu es to th e ir
employees that how to de al with th e custom er thoughtfully every aft er 6 month s.
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FINDINGS FROM SUR VEY
To t l Nu ber of Res po nd ent s: 15 O ff i i ls
Number of Res on entsMaruti U yog Limite 5Hyun ai Motors In ia Lt 2General Motors 2Tata Motors 5For In ia Limite 1
Do you face roblems in maintaining goo an effecti ve relationshi swith customers
QuiteFrequentl y
Frequentl y Average Rarel y
Maruti U yogLimite
2 3 - -
Hyun ai MotorsIn ia Lt
- 2 - -
General Motors - 2 - -Tata Motors 3 2 - -For In ia Limite - 1 - -
Fin ings Accor ing to the res onses of the res on ents it can be conclu e that
all the res on ents face roblems in maintaining goo an effecti ve relationshi s
with customers. With changing customer nee s it s quite ob vious that maintaining
goo relations with customers nee an effort on art of the Dealers an
Manufacturers.
QuiteFrequently
33%
Frequently67%
Average0%Rarely0%
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How w ell can yo ur co mpany identi f y it s end u ser cu s t o mer s?
j Maruti U dyog Limit ed: Accor d ing to th e offi cial s of MUL, th e com p any s
en de avor i s to b e clo se to th e cu stom e r, to anti cipat e an d fulfill th e ir
n eeds . The y b e lieve that th e n e w bu sin ess initiativ es tak en by MUL hav e
exp an ded th e sc o pe of thi s re lation shi p . Maruti off e rs auto in suran ce ,
auto finan ce , cor porat e le ase an d flee t manag e m ent an d r es al e of p re-
own ed car s in partn e rshi p with it s de al e rs. For th e first tim e , car
cu stom e rs in In d ia ar e abl e to a ccess th ese se rv ices through a on e -s to p
sho p , ba cked by th e le ade r bran d . The way th ey look at it i s that thi s will
p rovi de com p le t e mobility solution s to th e Maruti cu stom e r. Thi s al so
enabl es th em to ex t en d th e ir r e lation shi p with th e cu s tom e r b eyon d th e point of pur cha se to th e entir e own e rshi p li f e cycle . Sin ce th ese se rv ices
p lay a vital rol e in th e car cu s tom e r' s own e rshi p expe ri en ce , th e n e w
initiativ es enabl e th e m to off e r Maruti own e r s gr e at e r valu e , a ss uran ce
an d conv eni ence .
j Hyun dai Motor s In d ia Ltd: Accor d ing to th e offi cials of Hyun dai Motor
In dia is at a v e ry exc iting stag e in In dia to day. Th ey ar e expe ri en cing
tr e m en dou s growth - whi ch i s a tru e sign of enjoying cu s tom e r
confi de n ce . In or de r to s tr ength en th e ir pos ition furth e r in th e In d ian
mark e t, th ey n eed to continuou sly work on buil d ing th e ir cor porat e
rep utation whil e aggr ess ive ly po sitioning th e ir p ro du ct s. For H MI' s fo cu s
an d commitm ent to th e Ind ian automobil e cu s tom e rs is of criti cal
im portan ce . It s b ee n th e ir continuou s en de avor to fulfill th e entir e
spec trum of cu stom e r n eeds an d des ir es , a cro ss all so cio -ec onomi c &
lif es tyl e grou ps . The y hav e th e re for e , in ju st 6 year s of HMI' s young lif e ,
es tabli sh ed nationwi de sal es & se rvice n e twork, sc al ed u p stat e- of -th e-
art manufa cturing cap acity, laun ch ed global -s tan dar d car s in ra p id
su ccess ion an d exp or t ed car s ma de - in -In dia a cro ss th e glob e . Ge tz, a
mu ch a dmir ed li f es tyl e bran d in Euro pe an d e lse wh e re , is a st ep in th e
sam e d ir ec tion an d is a cutting -ed ge , a dd ition to HMI' s ex t en sive p ro du ct
portfolio.
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j Gen e ral Motor s: Accor d ing to th e offi cials at G en e ral Motor s is po s ition ed
as a matur e an d resp on s ible car manufa ct ur e r, whi ch off e rs gr e at valu e-
for -mon ey p ro du ct s to it s cu s tom e rs. The com pany l eve rag es it s global
expe rt i se to manufa ctur e an d mark e t w e ll engin ee red an d saf e p ro du ct s
through it s w e ll -es tabli sh ed re tail n e twork that p rovi de an exce llentown e rshi p expe r ien ce to it s cu s tom e r s.
j Tata Motor s: Accor d ing to th e offi cials of Tata Motor s th e foun dation of
th e com p any s growth ov e r th e la s t 50 year s is a deep un de rs tan d ing of
ec onomi c s timuli an d cu stom e r n eeds , an d th e ability to tran slat e th em
into cu s tom e r -des ir ed off e ring s through l ead ing ed ge R&D.
j For d In d ia Limit ed: Accor d ing to th e offi cials of For d In d ia ha s re affirm ed
it s commitm ent to enhan cing th e pur cha se an d own e rshi p expe ri en ce for
it s cu s tom e rs with th e rollout of For d Bran d@ Re tail con cep t a cro ss th e
country. For d In d ia ha s b ee n r evam p ing all de al e rshi ps un de r th e For d
Bran d@ Re tail, a global cor porat e ide ntity p rogram to off e r a worl d -c la ss
pur cha se expe ri en ce to th e cu s tom e r. For d Ind ia continu es to exp an d it s
d istribution n e twork an d will grow to 115 de al e r outl e t s in 79 lo cation s
by th e en d of 2009 . The offi cials al so m ention ed that For d In dia p rovi des
training su pp ort to de al e rs in ar ea s in clu d ing cu stom e r sati sfa ction, sal es ,
t ec hni cal an d non -t ec hni cal a spec t s of th e bu sin ess an d in th e finan ci al
manag e m ent of th e de al e rshi p .
Can your company diff erentiate its cu st o mer s b ased o n their value toyou and their need s f ro m you?
Yes N oMaruti U dyog Limit ed 5 - Hyun dai Motor s In d ia
Ltd
2 -
Gen e ral Motor s 2 - Tata Motor s 5 - For d In d ia Limit ed 1 -
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during th e day an d all day s of th e wee k. The toll -free se rvice is 1800 1800 180 ,
it is access ible from any fi xed- line or mobil e phon e of BSN L/MTN L ne twork
acro ss th e nation. Th e Anytime Maruti Call-ce nt er can al so b e accessed using
te lep hon es on oth er n e twork s by dialing 09811801515 (not toll -free) . The
obj ec tive of thi s se rvice is to ensur e that custom ers hav e qui ck an d easy a ccess to all information on th e ir mo de ls, prices , de alers, valu e added se rvices , finan ce
option s, an d th e location s of our num erou s se rvice station s. Anytim e Maruti
he lps custom ers to l earn mor e about th e ir Maruti Car s an d also about oth er
se rvices off ered by Maruti. For pro spec tive buy ers, Anytim e Maruti can h e lp
th em dec iding among st variou s Maruti Mo de ls an d benefits of buying from
Maruti.
j Hyun dai Motor s In d ia Ltd: Accor d ing to th e offi cials at HMI Th e Com pany
ha s se t u p mor e than 70 de al e r work sho ps that ar e equi pped with th e
lat es t t ec hnology, ma chin e ry, an d int e rnational quality press , bo dy an d
paint sho ps , a cro ss th e country, th e reby p rovi ding a on e -s to p sho p for a
Hyun dai cu stom e r. Hyun dai al so ha s a fl ee t of 78 e m e rgen cy roa d se rvi ce
car s - spec ially equi pped Santro that can p rovi de e m e rgen cy se rvi ce to all
it s cu s tom e rs anytim e , anywh e r e . The cu s tom e rs can al so call on 1800-
11-4645 (Toll Free - Only from MT N L & BSN L numb e rs)
011- 26924645 (For all G SM Conn ec tion s / Lan d line oth e r than MT N L &
BSN L numb e rs) for any qu e ri es & cu s tom e r com p laint s.
j Gen e ral Motor s: Accor d ing to th e offi cial at GM, to bring gr e at e r valu e
an d se rvice to cu s tom e rs , th e y hav e intro du ced th e GM Servi ce Plu s a
uniqu e clu st e r of se rvices , des ign ed to com p lim ent eve ry a spec t of
owning a car an d ensuring com p le t e pe a ce of min d . So b e it e m e rg en cy
ass is tan ce , an urg ent car se rv icing or even sour cing g enuin e a ccess ori es ,
Custom e rs can b e a ss ur ed of y e t anoth e r gr eat mom ent from G en e ral
Motor s . For any car r e lat ed qu e ry or e m e rg e n cy requir em ent, cu s tom e rs
can call 24- hour a ss is tan ce at 30308080 . The uniqu e 3 -hour se rvice
p rogramm e com es with a p romi se of se rv icing your car in ju st 3 hour s, or
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you g e t th e se rvice fr ee . With th e ir 24- hour work sho ps , cu stom e rs can
now conv eni ently g e t th e ir car se rviced , wh en th e y u se it th e leas t.
Wi desp read sal es an d se rvice outl e t s a cro ss th e country en sur e that you
hav e th e ass uran ce of gr eat se rv ice wh e reve r you trav e l in Ind ia.
j Tata Motor s: a ccor d ing to th e offi cial s of Tata Motor s th e com pany ha s str ength en ed it s d is tribution an d cu stom e r car e n e twork an d to day ha s
77 de al e rs an d 230 authoriz ed se rvice outl e t s sp read a cro ss 119 lo cation s
in In dia.
j For d Ind ia Limit ed: Accor d ing to th e offi cials at For d solution s aim s to
p rovi de quality, pe a ce - of -min d p ro du ct s for th e cu stom e r an d e mbo d ies a
bran d synonymou s with it s ability to p rovi de p ro du ct s that can b e
tailor ed to suit on e 's in d ividual n eeds . For d Solution s se rv e to de ve lo p
p ro du ct s for For d an d th e De al e r bo dy that enhan ce cu stom e r
sati sfa ction. Wh en your v ehi cle n eeds a r ep air or a com pon ent r ep la ced ,
you n eed Quality Car e se rvice . Your For d De al e rshi p is s im p ly th e b es t
p la ce to hav e your v ehi cle se rviced . Brak es , sho cks , batt e ri es or anything
your v ehi cle may n eed , your de al e rshi p is th e p la ce to g e t it. Cu stom e rs
can p la ce an onlin e se rvice r equ es t at For d .
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Ho w w e ll does 3 ou r com pa n 3 cus tom i4 e its pro du ct s and serv ices base d on wh a t it 5 no ws abo ut it s cus tomers 6
Highly Customer
centric
Somewhat
Customer centric
Not Customer
centricMaruti U 7 yogLimite 7
5 - -
Hyun 7 ai MotorsIn 7 ia Lt 7
2 - -
General Motors 2 - -
Tata Motors 5 - -
For 7 In 7 iaLimite 7
1 - -
Fin 7 ings 8 All the officials of the Automobile Ma jors agree that all 9 ro 7 ucts an 7
ser vices are highl y customer centric an 7 base 7 on the information the y know about
the customers.
Highly Customer centric100%
SomewhatCustomer centric
0%
Not Customer centric
0%
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Does th e com pa n @ have es tab lishe d qua lit @ ass u ra nce p rocesses A
Yes NoMaruti U B yog Limite B 5 -
HyunB
ai Motors InB
iaLt B 2 -
General Motors 2 -Tata Motors 5 -For B In B ia Limite B 1 -
Fin B ings C Accor B ing to all the res D on B ents their res D ecti ve com D anies ha ve
establishe B qualit y assurance D rocesses.
Yes100%
No0%
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Does th e com pan E take cus tomers' nee ds int o co ns idera tion wh e nse lec ting a nd i m pleme nting t ec hn o log E ?
Yes NoMaruti U F yog Limite F 5 -
HyunF
ai Motors InF
iaLt F 2 -
General Motors 2 -Tata Motors 5 -For F In F ia Limite F 1 -
Fin F ings G Accor F ing to all the res H on F ents their res H ecti ve com H anies take
customers' nee F s into consi F eration when selecting an F im H lementing technolog y.
As H er officials of GM the Ta vera is a classic case of an In F ia-s H ecific H ro F uct.
Though it is an international H ro F uct, the car has been totall y re-engineere F for
In F ian market requirements.
At Hyun F ai Segment-nee F s an F bu F gets are s H ecific an F a suitable variant
strateg y is ine vitabl y require F to meet F ifferent segment-nee F s an F to be a
volume H layer in the segment. The variants are F eci F e F after consi F erable
research. The y ha ve been targete F at F ifferent segments an F the y H resentl y
witness a health y mi I . As this segment e volves the y rationalise the variant
strateg y an F a F F or F elete variants to meet market requirements. The y ha ve
H ut in H lace a customer contact H rogramme where the y interact with
Yes100%
No0%
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customers in grou P s as well at an in Q ivi Q ual le vel at regular inter vals to
assess their nee Q s an Q overall e R P erience with their P ro Q uct.
The t yp ical In Q ian consumer looks for value an Q Q oes not min Q paying a little
more for it. Fuel efficienc y, aircon Q itioning an Q reliabilit y along with ease of
ser vice an Q low cost of ownershi p are ma jor consi Q erations Q uring the
purchase p rocess in In Q ia.
Does th e com p a n S p rov id e it s em pl oyees with t ec hn o logy th a te n ab les th em t o h e lp cu s t omers ?
Yes NoMaruti U Q yog Limite Q 5 -Hyun Q ai Motors In Q iaLt Q
2 -
General Motors 2 -Tata Motors 5 -For Q In Q ia Limite Q 1 -
Fin Q ings T Accor Q ing to all the res pon Q ents the com pan y p ro vi Q es its
em p loyees with technolog y that enables them to hel p customers. Em p loyee
an Q Dealer Training is a part of e ver y com pan y Customer Ser vice Initiati ve.
This enables them to p ro vi Q e the customers with state of art p ro Q ucts an Q
ser vice to customers.
Y es100
No0
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Does th e com p a n y ma int a in a s t ra t e gy for co llec ting a nd u s ingin forma ti o n abo ut cu s t omers ?
Yes NoMaruti U U yog Limite U 5 -Hyun U ai Motors In U ia
LtU
2 -
General Motors 2 -Tata Motors 5 -For U In U ia Limite U 1 -
Fin U ings V Accor U ing to all the res pon U ents the y ha ve p roper information about
their most profitable customers. Com panies use Informal Meetings, Sales
Interaction an U calls to collect rele vant information nee U e U to maintain goo U
customer relationshi p . The most effecti ve com panies like Tata Motors use all the
abo ve while most of other tracks the U ata U uring sales interaction. All the
Automobile ma jors sur veye U use U CRM software for tracking Customer
Information. Accor U ing to the officials Customer an U Supp lier Fee U back are
gathere U through Call Centers, Mails an U Direct Inter views. There are other
metho U s too but the abo ve three are the most cost effecti ve.
Yes100%
No0%
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Ho w effec ti ve ly does th e com pa ny comb in e in forma ti o n o ncu s t omers with it s ex p er ie n ces t o ge nera t e kno wl e dg e abo ut it s cu s t omers ?
Highly Effective SomewhatEffecti ve
Not Effecti ve
Maruti U W yogLimite W
4 1 -
Hyun W ai MotorsIn W ia Lt W
2 - -
General Motors 2 - -
Tata Motors 3 2 -
For W In W iaLimite W
1 - -
Fin W ings X All the 80 Y officials of the Automobile Ma jors their com pan y highl y
effecti ve in combining information on customers with its e ` periences to
generate knowle W ge about its customers while 20 Y sai W that the com p an y
was somewhat effecti ve.
Highly Effective80%
a
omewhateffective
20%
Not Effective0%
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W hat step s ha s the co mpany taken to impr ove the to tal experience of
its cu st omer s?
j
Accor d ing to th e Maruti U dyog Limit ed Officials: Sal es expe ri en ce is th e mo st im portant fa ctor, a ccounting for 37 pe r ce nt of th e SSI sc or e , an d
in clu des iss u es su ch a s fulfillm ent of commitm ent s an d la ck of ha ss les
during th e sal es p ro cess , ov e rall hon es ty an d int egrity of th e de al e rshi p
pe rsonn e l an d suffi cient tim e to mak e th e dec ision. Maruti ent e r ed th e
In dian car mark e t, to p rovi de fu e l e ff icient, low -co s t v ehi cles , whi ch w e re
re liabl e an d of high quality. It al so off e red cu s tom e rs a fri en d ly sal es an d
aft e r sal es se rv ice . With high cu s tom e r sati sfa ction ratio an d Total
automobil e valu e th ese obj ec tiv es sha ped Maruti a s big Giant in th e fie ld
of automobil es .
j Accor d ing to Hyun dai Motor s (Ind ia ) Officials: Hyun dai ' s big hit wa s it s
com p a ct family car nam ed Santro whi ch b ec am e a hug e hit with it s
laun ch an d cap tur e h e art s of million s with in cre asing sati sfied cu stom e rs
day by day. Wh en Hyun dai foray ed into th e In d ian mark e t it mov ed
qui ckly to se t u p a n e twork of de al e rs an d se rv ice s tation s - it ha s clo se to
260 of th e latt e r. Servi ce wa s ide ntifi ed as a pow e rful d iff e rentiator toth e way thing s w e re don e an d wor d of mouth d id th e res t. It wa s on e of
th e way s to k eep th e Hyun dai cu stom e r within our fol d . Also, th ese ar e
advan ced car s, whi ch can't b e rep air ed by a corn e r m ec hani c. Hyun dai
off e rs se rv ice for l ess , it' s eas ily re achabl e an d allow s flex ibility an d
cu stom e rs app rec iat e that. Hyun dai Motor In dia Ltd (HMIL) laun ch ed
Achi eve Q 1P1 quality cam paign on Mar ch 24 , 2010 p rimarily fo cu s ing
on a chi eving th e Global N o. 1 Quality & Bran d imag e . The cam paign ha s
b ee n initiat ed a cro ss th e Hyun dai v en dor frat e rnity. Thi s n ew initiativ e
will str ength en th e Ve n dor quality organi sation an d will en sur e th e major
part quality im p rov e m ent su ch a s Six Sigma A ctivity, training an d im p rov e
th e Tie r 2 su pp lie rs . The cam paign will al so h e lp th e su pp lie rs to im p rov e
th e ir 3C5S (3C Correc t Contain e r, Corr ec t Quantity & Corr ec t Lo cation
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an d 5S Sorting, Sys t e matizing, Shining, Stan dar d izing & Se lf -Disc ip line) ,
TPM (Total Pro du ctivity Maint enan ce) , b e n chmarking a ctiviti es an d
u pgra de quality sys t e m s.
Accor d ing to For d In d ia Limit ed offi cial s, Pr ese ntly For d is off e ring se ven
d if f e rent mo de ls; For d In d ia Limit ed (FIL) is cat ching u p fa st with th e In d ian
con sum e r. FIL was th e first sub s id iary of a multinational car manufa ctur e r in
In dia to laun ch a car des ign ed spec if ically for In d ia. Th ey hav e con sis t ently
adap t ed th e spec if ication of th e Ikon to en sur e it m ee t s th e n eeds of In d ian
con sum e rs. Th ey hav e im p rov ed th e horn an d th e st ee ring column swit ch so
that th ey ar e mor e robu s t; th e n ew combination swit ch ha s p rov ed so
e ff ec tiv e that it i s u sed worl dwi de . They hav e al so de ve lo ped a hy d rauli cally
activat ed clut ch sys t e m, im p rov ed groun d cle aran ce an d u pgra ded air
con d itioning to sati sfy th e spec if ic n eeds of th e In d ian cu s tom e r. Thi s is part
of a continuou s im p rov e m ent p ro cess . Sati sfying our cu stom e rs th ey hav e
intro du ced initiativ es to a ssess cu s tom e r sati sfa ction an d to a ct on th e ir
con ce rn s. The Int en sif ied Cus tom e r Con c e rn D e finition (ICCD ) is a t e lep hon e
surv ey of cu s tom e rs con du ct ed to a ssess p robl em s in thr ee ar e as:
The y r ec ogni se th e n eed for a dd itional p ro duct s . The y ar e working towar ds
intro du cing p ro du ct s to mat ch our cu s tom e r s dynami c li f es tyl e , p ro du ct s
whi ch hav e p rogr ess ive styling an d ar e gr e at to d rive .
Ve hi cle quality con ce rn Des ign an d gen e ral comm ent s N e gativ e sal es
an d se rvi ce
j Accor d ing to GM offi cials: Gen e ral Motor s targ e t i s to off e r a choi ce of
p ro du ct s to th e ir cu s tom e rs to mat ch th e ir d iff e rent n eeds an d bu dge t s .
Being th e worl d s larg es t car manufa ctur e r, th ey hav e a ccess to a rang e of
p ro du ct s through th e ir global allian ces . They ar e alr eady p rese nt in mo s tse gm ent s an d will shortly hav e p ro du ct s in a dd itional se gm ent s .
How eve r, th ey ar e fo cu s ing on th e fa s t growing MP V se gm ent with th e
Chevrol e t Tav e ra an d hav e inv es t ed sub stantially in thi s p ro du ct lin e .
The y look for cu s tom e rs for lif e who will hav e a choi ce of p ro du ct s to buy
from th e ir stabl e . Su stain ed bran d buil ding e ffort s cou p led w ith int en s ive
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groun d- leve l activity ha s en sur ed that O p tra ha s remain ed among th e to p
two p lay e rs in it s se gm ent. Th ey hav e r e fr es h ed th e p ro du ct through
continuou s p ro du ct im p rov e m ent s an d hav e em e rg ed as se gm ent l eade r
in fu e l e ffi cien cy. Th e y hav e rece ntly laun ch ed a limit ed ed ition of 150
car s , whi ch ha s rece ived a v e ry po sitive r esp on se an d given u s ri chd ivide n d in t e rm s of bran d buil ding an d imag e ry. A p ro du ct r e fr es hm ent
p lan en sur es that th ey remain com pe titiv e an d ar e ready to m ee t futur e
chall eng es in thi s se gm ent. Th ey al so hav e a r egular Cu stom e r Re lation
Manag e m ent p rogramm e wh e reby ex isting cus tom e rs ar e off e red loyalty
p rogramm es an d gr eat off e r s. So far, th ey hav e organi sed six Op tra Ma x
Mil eag e Rally m ee t s wh e re Op tra cu s tom e rs com pe t e to e x tra ct th e b es t
fu e l e fficien cy out of th e ir car s an d all parti cipant s ar e tr e at ed to an
ov e rnight stay at an ex oti c lo cal e with an eve ning of ent e rtainm ent. Th e
winn e rs of th ese ralli es ar e given h ealthy ca sh r ewar ds . These vent s go a
long way in buil ding goo dwill an d bran d loyalty.
j Accor d ing to Tata Motor s Official s: TATA Motor s is In dia ' s for emo s t, an d
th e only fully int egrat ed automobil e manufa ctu r e r. Es tabli sh ed in 1945 as
TATA Engin ee ring & Lo comotiv e Com p any (TELCO), to manufa ctur e
lo comotiv es an d oth e r engin ee ring p ro du ct s , th e com pany i s to day
among th e worl d 's to p 10 p ro du c