TABLE OF CONTAINT
SR NO. 1
TOPIC
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AFTER SALES SERVICE
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KEY ELEMENTS OF AFTER-SALES SERVICE
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3. 4. 5. 6. 7. 8. 9. 10. 11. 12 12 13.
INDIAN AUTOMOBILE INDUSTRY MARUTI- SUZUKI VALUE - CHAIN ANALYSIS (PORTER) BUSINESS STRATEGY OF MARUTI AFTER SALES SERVICE OF MARUTI KEY SUCCESS FACTOR FOR MARUTI AFTER SALES SERVICE OF TATA MOTORS SERVICING COMPARISON BETWEEN TATA AND MARUTI COMMON BETWEEN MARUTI, TATA, FIAT AND GENERAL MOTORS IN INDIA QUESTIONAIRY CONCLUSION REFERRANCE
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AFTER-SALES SERVICE
After-sales service, which is in after sell all kinds of services provided. From the sales promotion to see, after-sales service itself is also a marketing tool. Follow up the stage in tracking, sales people to take various forms of cooperation, through the after-sale service to steps to improve the enterprise prestige of products and expand the market share, improve work efficiency and benefit of selling. After-sales service, it is to point to the production enterprise, dealers, the product (or service) sales to consumers, to provide consumers after a series of service is the objective. In the fierce market competition today, with the increasing awareness of the consumers and the changes in the concept of consumption, consumers in purchasing products, not only pay attention to product entity itself, in the similar product quality and performance similar circumstances, more importance to product after-sales service. Therefore, the enterprise in the offer the good and cheap products at the same time, to offer consumers perfect after-sale service, has become a modern enterprise market a new focus of competition. China, have haier group for after-sales service, and sales to rise steadily case. Objectively speaking, the high quality post-sale service is the product of brand service economy, famous brand product post-sale service often better than hybrid product. Famous brand of the price of the product brand enterprise service center. Case of general prep above, on the one hand, the inferior brand based on the cost of product and quality, but also because of the famous brand product sales strategies have considered after-sales service costs. Definition After Sales Service is defined as “Periodic or as-required maintenance or repair of equipment by its manufacturer or supplier, during and after a warranty period.”
Customer Service End-user of many types of product, ranging from computer systems to domestic appliances, require customer support at some time – assistance to help them gain maximum value from their purchase. In fact customer support entails all activities ?to ensure that a product is available for trouble-free use to consumers over its useful life span?(Goffin 2001). The concept of customer service has been a generic term used by industry and academia to describe a set of activities in which a firm engages to win and keep customers. Simply differentiation of customer service refers it to a variable that expands the image of a product and thereby offers
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the possibility of giving the firm‘s product market acceptance, growth and the possibility of market dominance (Larissa, 1994) In this prime role, customer service is viewed as an organized corporate philosophy consisting of a comprehensive and related set of activities. Specifically, customer service is not a generic abstraction, but rather a series of specific services prior to the transaction, during the transaction, and after the transaction. Firms offer specific service elements, such as ?timely deliveries?, ?efficient telephone handling of orders and queries?, ?accurate purchase statements?, and users receive customer service not in some abstract sense, but as the ?availability of an item?, ?after-sales service and back-up?, ?competent technical representatives?, ?demonstation of equipment? or ?special product promotions?. While there is broad agreement that these elements are commonly associated with customer service, the degree of importance attached to each respective service variesfrom industry to industry and company to company, depending on customer needs and the capability of the service-providing organization (Larissa 1994). There are two aspects of customer support, which particularly deserve management attention. First, there is the need for customer support requirements to be fully considered at the design stage – using what are called design for supportability techniques- in order to develop products, which are economical and easy to support. Second, the logistic of delivering customer support through suitable channels is key. Companies, which are good at both of these aspects have differentiated themselves from their competitor stand won significant market share. According to Eppientte (1997), customer service has been emerging as a competitive weapon for business firms. He mentioned ? it is becoming harder and harder to compete on manufacturing excellence alone. Manufacturers who thrive… will compete by bundling services with products.?. Of course, use of customer service, as a form of competition does not apply only to manufacturers. With the economy becoming increasingly service based and new kinds of services being offered continually (Schmenner, 1986), the input of customer service may be even more dynamic for non-manufacturers. It is probably safe to say that, in one form or another, all businesses are concerned with customer service. As early as 1972, Levitt noted that everyone is involved in service and that the service sector ofthe economy includes everything from banking and airlines to product-related services and the sales-related services offered by manufacturers and retailers. Obviously, customer service is a part of all facets of our economy and is especially important to the long-term survival of companies.
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KEY ELEMENTS OF AFTER-SALES SERVICE
Providing the proper after sales service is very important for firms and customers. Traditionally, support merely constituted maintenance, service and repair. However, as the scope of product support has broadened over the past decade, it has also included such aspects as installation, commissioning, training, maintenance and repair services, documentation, spare parts supply and logistics, product upgrading and medications, software, and warranty schemes, telephone support, etc. (Tore and Uday, 2003)
An after-sales support strategy associated with a product may include elements such as warranty provision, extended service contract provision, availability of repair service, loan availability, toll-free phone support, etc. (Arvinder, 1996)
Study on each of these elements and choosing the best one(s) is a crucial activity for all firms. According to Gulden (1997), after sale service consists of a number of dimensions or elements. It is conceptualized as consisting of the following: • The installation and start-up of the purchase product • The provision of spare parts for products • The provision of repair services • Technical advice regarding the product • The provision and support of warranties
But Goffin (1999) explanation may be more complete, that states seven elements of after-sales support which must be provided to customers over the working lifetime of products as follows: • Installation : For many products, the first element of product support following the sale is installation. This is usually performed for complex products (e.g. computer systems), or where safety issues are involved (e.g. medical devices) by personnel from the manufacturing company, or their representatives. Increasingly, where product design allows it, customers themselves will install their purchases and manufacturers face the challenge of making this easy for, often, non-technically minded customers. A good example of the importance of easy in4
stallation is that IBM recognized in 1990 that their personal computer customers wanted to be able to unpack their purchases and have them running quickly. This led to products with preinstalled software and which consequently could be unpacked, assembled, switched on and in use within five minutes • User Training : The complexity of some types of equipment necessitates that manufacturers provide good training for users. For example, hospital staff need to well-trained in the use of critical care devices and the successful implementation of process innovations, such as new manufacturing equipment, depends on extensive training being given over a long period. Many computer-based products include functions which help users learn to use them more efficiently; these can range from single Help functions, to full training packages as offered by manufacturers such as IBM. However, training costs can still be very high business users have to invest significant amounts of money in training their employees in efficient use of personal computers. For simpler products, training is not necessary and details of product operation are usually given in user documentation. • Documentation : Most products have some form of documentation and industries such as medical electronics it playas key role. Typical forms of documentation cover equipment operation, installation, maintenance, and repair. Good documentation can lead to lower support costs and increased products is poorly written and hard to understand. New technology is being applied to documentation and, for example, CD-ROMs are making car servicing more efficient. • Maintenance and Repair: Historically, maintenance and repair has been an important element of product support, which has required companies to invest significant resources. For example, an estimated 500,000 car mechanics are employed in the USA. If equipment fails, fast and efficient repair is essential in many markets because ? down-time costs run typically at anywhere from 100 to 10,000 times the price of spare parts or service?. In markets where product failure has strong implications – for example, computer systems for financial institutions- companies need to offer either equipment, which is very reliable (or even never fails), or a rapid response to expedite repairs. One way to achieve a fast response is to provide customers with loaner equipment in the event of breakdowns, where this is feasible. Another strategy for maintenance and repair is to design disposable products; the approach used by some companies for watches, torches and other products. Where repair costs do not exceed a significant
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percentage of product replacement costs, having repairable products is the best strategy for companies. For repairable products, it makes sense for companies to develop good diagnostics- efficient means to test for problems and identify the causes. However, where products are becoming cheaper and more reliable, as is the case with Pcs, service is becoming less viable. In order to repair faulty equipment, companies need to have efficient logistics for the management and movement of spares, the parts used in repairs. Some companies have focused strongly on this area, to gain an advantage over their competitors. Maintenance also referred to as preventive maintenance is undertaken to clean, refurbish or replace parts of equipment which otherwise would be liable to fail. Mechanical parts, for example, normally require regular maintenance as in the case of cars. In the computer sector, where fewer mechanical parts are involved, remote support technology enables computers to be ? updated…diagnosed and repaired? by linking them to manufacturers support centers via telephone lines. The US earthmoving equipment manufacturer Caterpillar, which focuses on product serviceability – products that are easy to maintain and repair- is using similar approaches. This has led them to develop products, which can be remotely monitored so that maintenance can be performed before fault occurs. • Online Support : Telephone advice on products is a major element of customer support in many industries. Product experts give online consulting to customers to help them use products more efficiently or, sometimes to trace the cause of fault (troubleshooting). Whenever problems can be solved over the telephone, costs are much lower than an engineer having to visit the customer site. Online support is particularly strongly utilized for software products (software support). For example, companies such as Microsoft have invested significant resources in telephone centers and support costs are typically 6 percent of revenues in the software industry. Many software products can now be remotely configured, so that they more exactly match customer requirements – for example, Microsoft‘s Windows 95 product has this capability. • Warranty : Manufacturers of most products offer warranty and, in some markets such as automobiles, manufacturers may try to gain a competitive advantage by offering longer warranty periods. Warranty reduces the financial risk of owning products and therefore it is an important element of customer support. Over the lifetime of product, support costs may be greater than the initial purchase price. In the computer sector these costs are referred to as cost-of-ownership and ?the costs of buying and operating computer hardware for the office is
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rather like an iceberg – most of them are hidden?. Consequently, as products have become more complex and support costs have increased, customers have started to demand more economical and effective support. To reduce the risk of expensive repairs, many manufacturers offer customers the possibility to purchase extended warranty. However, in the domestic appliance sector, manufacturers have been accused of charging excessively for this cover. • Upgrades : Offering customers the chance to enhance the performance of existing products can be an important aspect of support. For example, computer manufacturers offer upgrades because they increase the working lifetime of products and can be a significant source of revenue. Original equipment manufacturers have a competitive advantage in this business because they normally have records of where equipment has been sold which could benefit from upgrading.
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INDIAN AUTOMOBILE INDUSTRY The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5 million each year. The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%.Commercial vehicles and three-wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people. The supply chain is similar to the supply chain of the automotive industry in Europe and America. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. With a high cost of developing production facilities, limited accessibility to new technology, and increasing competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, India's increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%.Hyundai Motor India Limited and Mahindra and Mahindra are focusing expanding their
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footprint in the overseas market. Hero MotoCorp is occupying over 41% and sharing 26% of the two-wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three-wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy. The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilizing manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles.The Indian market offers endless possibilities for investors.[19]
Indian Automobile Export market
India is a very favorable market for small cars be it production, sales or export. Since the Indian automobile industry is the largest manufacturer of small cars companies like Hyundai and Nissan Motors export about 2,40,000 and 2,50,000 annually. India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Indian automobile exports registered a 22.30 percent growth in the year 2009. The growth trend was as follows: Two Wheelers- 32.31 percent, Commercial Vehicle - 19.10 percent and Passenger
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Cars grew by - 19.10 percent.
Key automobile manufactures in India
? ? ? ? ? ? ? ? ? ? ? ? ? ?
Maruti Udyog General Motors Ford India Limited Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motors India Limited Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Limited
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CARS IN INDIA - THEN AND NOW
Earlier, the only cars that were shining on the Indian roads were Ambassador and the Premier Padmini. Locally assembled Fiat 1100 was Premier Padmini, where as Ambassador is a replica of the Morris Oxford – an old British car. But now we have so many makes and models that it is very difficult to remember them all. It was in the year 1983, a joint venture between the government and Suzuki Motors of Japan that paved the way for a renaissance in the Indian automobile sector and gave birth to Maruti Suzuki 800 from the hatch back segment. And from then onwards there was no looking back for the Indian car industry. Today India is the second largest two-wheeler market, the fourth largest commercial vehicle market and eleventh largest passenger car market in the world. By 2016, India is expected to reach 6th position in passenger car. Now we have so many foreign car makers pouring in with different new, attractive and luxurious models to meet the growing demands for cars, these car manufacturers have set up their base in India. Name of such car makers are – Audi, BMW, Chevrolet Fiat, Ford, Honda, Hyundai, Mahindra, Mercedes-Benz, Mitsubishi, Skoda, Suzuki, Toyota, Volkswagen, and Volvo. Some of the makers like Ford are planning to make India a regional hub that will allow exports of both small cars as well as engines. There is a immense competition among the car manufacturers to position number one in the Indian auto market. Every car makers are compelled to come up with more innovative designs and technology to meet the customer‘s demands and needs. Unlike earlier, India is now car literate and understands the concept of a car, its design, technology and performance and as a result their expectation have soared the higher level and car manufacturers are grinding their tooth to satisfy their needs. With growing economy and disposable income, it has become much easier for car enthusiast to take home their dream car. Across the entire segment the demand for cars is high and financial firms are offering easy to pay finance schemes that have added an extra cream to the car sales. It is not just the new car market that is booming up, the used car market is also growing in a big way with authorised second-hand car showrooms. More than a necessity, a car has become a status symbol. With the advent of new and unique trends in the automobile sector in India, we will have to wait to see if it is going to be
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flourished further. It also has to go a long way to transform the mobility needs of the ordinary Indians.
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Maruti Suzuki is leader by far, but the No 2 spot in the Indian passenger vehicles could be anybody's game in the next couple of years, with at least four carmakers in the race for that position, reports ET.
In four months of the current fiscal - May, June, September and October - Mahindra & Mahindra (M&M) made a unique breakthrough in the Indian passenger vehicles space: it sold more vehicles in these months than the country's third largest carmaker Tata Motors, buoyed in the main by explosive growth in demand for utility vehicles.
For the overall seven months till October 2012, however, Tata Motors is still No 3 in terms of sales volumes. But the gap at the top is narrowing. Although Maruti Suzuki is way ahead of the pack for now, it's the No 2 position currently held by Hyundai that is up for grabs. The Korean carmaker for its part has its own strategy to keep the challengers at bay (see story alongside) even as Tata Motors and M&M attempt to pile on the pressure. They aren't the only ones. The Japanese troika of Toyota, Honda and Nissan appear to be finally getting it right on Indian soil, scoring rich gains in the April to October period of 2012 over a year ago. Toyota and Honda have upped their share by 0.7% each to 6.4% and 2.9% respectively , with Nissan gaining another 0.6%, even as the Detroit giants and Volkswagen ceded some ground in this period over the first seven months of the previous fiscal period. "As the market grows and carmakers expand their product line and distribution network, there will be some inevitable changes in share of the market leaders with some growing faster than the others," says Rakesh Batra, national leader (automotive ), Ernst & Young. Sales are still sluggish in a market that's reeling under the impact of an economic slowdown, but the competitive landscape couldn't be more exciting. Perhaps that's what persuaded General Motors honcho Karl Slym to make the trip from China back to India to head Tata Motors. If there are analysts and auto aficionados out there who reckon that Tata Motors is the easiest of preys in the pack thanks to its perceptibly staid product range, Slym was quick to indicate that the Indica and Nano maker means business. Soon after taking charge in October, Slym told journalists: "We see ourselves (emerging) as a strong No 2 player and that is my vision for the short to medium term; and we want to become No 1 in the long term." Tata Motors clearly needs a game changer to pull ahead. In the
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recent past, it hasn't had any launch that could set the Ganges on fire, which explains why its share is stagnating at a little over 13% for the past three-and-half years. A competitively priced diesel version of the Nano - which is expected in 2013 - may be just what the doctor ordered. "Currently Tata Motors in not a high volume player in the passenger vehicle segment. If the (recently-launched ) new Indica eV2 and the Nano diesel take off, there will be a significant jump in market share," said a person aware of the launch plans of Tata Motors (the company's spokesperson did not comment on a specific question pertaining to market share that was a part of an email questionnaire).
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Maruti Suzuki India Limited
Type Traded as Industry Founded
Public BSE: 532500 NSE: MARUTI Automotive 1981(as Maruti Udyog Limited)
Headquarters New Delhi, India Key people Products Revenue Net income Employees Parent Website Shinzo Nakanishi, Managing Director and CEO Automobiles 37,522.4 crore (US$7.61 billion) (2010-11) 2,288.6 crore (US$464.13 million) (2010-11) 6,903 Suzuki Motor Corporation marutisuzuki.com
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PROFILE OF MARUTI The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it 'To Munsiyari on a Maruti 800', Uttarakhand Himalayas Maruti Suzuki plant in Manesar Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. Maruti Suzuki has two manufacturing facilities in Haryana, one each at Gurgaon and Manesar, with a combined manufacturing capability of over 1.25 million vehicles per annum, which is much beyond the installed capacity of 1 million vehicles. Gurgaon Plant The Gurgaon facility contains three fully integrated plants with a combined installed manufacturing capacity of over 700,000 vehicles per annum. It also has a state-of-the-art K-series engine casting plant with a capacity of 7.80 lakh engines per annum. Manesar Plant The Manesar facility was started in February, 2007 and has one plant with a capacity of 300,000 vehicles per annum. Two more plants are presently under construction at Manesar.
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R & D Capabilities The Company is gradually enhancing its R&D capabilities. It has over 1,000 R&D engineers. The R&D team is working closely with SMC engineers on new product design and development. It has also initiated work on setting up a test course for R&D purposes at Rohtak, Haryana. Supplier base The Company has worked through the year with its suppliers to develop new products, refresh existing ones and achieve higher localisation levels to reduce costs. As on 31st March, 2011, the Company had a supplier base of 260, including 19 joint venture companies where the Company holds a strategic equity stake.
Domestic sales and service network Over the years, the Company has expanded its sales and service network to cover the length and breadth of the country. Amongst car manufacturers in India, Maruti Suzuki has the largest sales and service network. As on 31st March 2011, it had 933 sales outlets in 668 cities and 2,946 service workshops in 1,395 cities. The service network of the Company includes dealer workshops, Maruti Authorised Service Stations (MASS's), Maruti Service Masters (MSMs) and Maruti Service Zones (MSZs). Besides selling and servicing vehicles, the Company provides its customers services like automobile finance, genuine spare parts and accessories, extended warranty and certified preowned cars. The Company had 353 True Value pre-owned car outlets in 208 cities as on 31st March, 2011.
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Export sales and market Maruti Suzuki's first export assignment was a batch of 500 cars to Hungary in September, 1987. Since then, the export portfolio of the Company has been consistently expanding. In the reporting year, the Company exported to 78 countries in Europe, Asia, Latin America, Africa and Oceania. In 2010-11, the Company's export sales stood at 138,266 units; 42% of the sales came from the European markets. Cumulatively, the Company has exported 863,380 cars.
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AWARDS ? ? ? ? Declared Business Standard Company of the Year 2011 Ranked No.1 in JD Power Sales Satisfaction Index (SSI) Study 2010 Ranked No.1 in JD Power Customer Service Index (CSI) Study 2010 for the 11th time in a row Awarded the Best Automobile Manufacturer of the Year 2010 and the "Hall of Fame" award for single handedly changing the face of Indian automobile Industry by Car India ? ? ? ? ? Ranked among the top 10 "Most admired companies" from India by Wall Street Journal Bagged "Manufacturer of the Year" award for the Company and "Engine of the Year" award for K-series engine at CNBC-TV18 Awards 2011 Won National HRD Network Trailblazer Award 2010 for HRD Excellence Received Significant Achievement in Sustainability award in CII-ITC Sustainability Awards 2010 Won the NASSCOM & CNBC TV 18 IT User Award
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First advertiser from India to be awarded for the digital campaign 'Sports Sponsorship goes mobile' by Global Mobile Marketing Association Asia Pacific and the Global Awards
? ? ? ? ?
Received Gold at the Indian Documentary Producers Association (IDPA) for the best edited television commercial for theSX4 'After You' advertisement Won Bronze in the Internationalist Awards for Innovative Digital Marketing Solutions for the K-serial campaign on Ibibo.com Corporate Campaign "Kitna Deti Hai" rated amongst the best campaigns of 2010 by CNBC-TV18's programme on Advertising & Marketing adjudged as the Best TV Commercial (4-wheelers and 2-wheelers combined) by NDTV Car and Bike Awards WagonR won Pitch India Top Marketer Award 2010 for marketing campaigns
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VALUE - CHAIN ANALYSIS (PORTER)
The importance of customer service will be more recognized when Micheal porter (1980) considers it as a parameter for his value – chain analysis model that make margin for company. According to this analysis, which has shown below Figure, all the activities of the entity are mapped into a value arrow. The right side of the arrow represents total value created by the organization; in a competitive market, that is what customer are willing to pay, i.e. revenue. To create those values, costs are incurred; the difference between revenue and costs is the margin. To increase margin, the enterprise can, for example increase value for customer (primary activities). Generically, primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and continuing service.
Value Chain of Maruti Suzuki
The term value chain was coined by Michael Porter. The value chain is a comprehensive set of activities that are required to bring a product from a concept stage to marketing and consumption of end products. In competitive terms, value is the amount buyers are willing to pay for what a firm provides them. A company is profitable if the value it commands exceeds the costs involved in creating the product.
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Porter distinguishes between primary activities and support activities. Primary activities are directly concerned with the creation or delivery of a product or service. Each of these primary activities is linked to support activities which help to improve their effectiveness or efficiency. Primary activities at Maruti Suzuki MARKETING AND SALES Provide means by which buyers can purchase the product and inducing them to do so, such as advertising, promotion, sales force, quoting, channel selection, channel relations, and pricing. Maruti‘s marketing objective is to continually offer the customer new products and services that: 1. Reduce the customer‘s cost of ownership of our cars; and 2. Anticipate and address the customer‘s needs and preferences in all aspects and stages of car ownership (MARUTI SUZUKI refers to this as the ?360 degree customer experience? ? Maruti Suzuki has been aggressively cutting prices of its models. The rationale behind the price cuts is the focus on offering new upgraded vehicles at a low price. ? Maruti Suzuki offers a two-year warranty on all the vehicles at the time of sale. The dealers are required to address any claim made by a customer, in accordance with practices and procedures prescribed by MARUTI SUZUKI, under the provisions of the warranty in force at that time. ? MARUTI SUZUKI also offers an extended paid-warranty program marketed under the brand, ?Forever Yours? for the third and fourth year after purchase. The extended warranty program is intended to maintain the dealer‘s contact with the customer and increase the revenue generated from sale of spares, accessories and automobilerelated services. An effort is made during the period of the extended warranty to encourage the customer to exchange his existing. ? ?Maruti car for a new Maruti car or upgrade to a new Maruti car?. ? True Value Solutions Limited (TVSL), which was incorporated on January 14, 2002 as a wholly owned subsidiary of Maruti, provides value-added services to owners and users of motor vehicles on matters relating to manpower services with regard to recruitment, training and development. The company also intends to promote the
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business in the areas of pre-owned cars, lease and fleet management, finance and insurance.
Sales network ? MARUTI SUZUKI has the largest network of dealers amongst car manufacturers in India. Sales network is linked with the MARUTI SUZUKI through the secure extranet based information network. ? The sales of spares, accessories and Automobile related services such as insurance and finance serve as additional sources of revenue for the dealers. ? The availability of these related products and services at sales outlets also helps to attract customers to the outlets and promotes sales of the cars. ? MARUTI SUZUKI dealers provide services to customers such as pre delivery inspection of vehicles, sales of cars, after sales service, supply of spare parts and other services that promote sales of cars within the territory for which they are appointed. ? The performance of the dealers is followed and improvements are suggested frequently. In order to assist the dealers in enhancing their performance and capabilities, MARUTI SUZUKI has introduced a concept of ?Balanced Scorecard?. Using this tool, the performance of a dealership in several areas of operations, including sales, service, spares and accessories, financial management and management systems is measured. Dealers who perform well on the ?Balanced Scorecard? are reward with a cash payment at the end of the fiscal year. The ?Balanced Scorecard? serves as an effective incentive for dealers to enhance their performance. Distribution network: Maruti Suzuki is one of the companies in India which has a huge distribution network. Today it has 802 dealerships across 555 towns and cities in India. To ensure proper after sales service Maruti Suzuki has 2,740 workshops (including dealer workshops and Maruti Authorized Service Stations) in 1,335 towns and cities. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India.
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SERVICE Aims to enhance or maintain the value of the product, such as installation, repair, training, parts supply, and product adjustment ? Over the last few years, the company strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers. These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers. ? There are more than 400 Maruti dealer workshops and more than 1,500 Maruti Authorized Service Stations, covering more than 900 cities in India. In addition, 24hour mobile service is also offered under the brand ?Maruti On road Service?. As a benchmark for dealers with respect to service quality and infrastructure facilities, MARUTI SUZUKI has launched service stations under the brand ?Maruti Service Masters or MSMs. ? MARUTI SUZUKI also has service stations on highways in India under the brand ?Express Service Stations?. To promote sales of spare parts and the availability of high quality, reliable spare parts for its products, spares are sold under the brand name ?Maruti Genuine Parts?, or MGP. These are distributed through the dealer network and through the authorized sellers of the spare parts. ? Many of the Service Stations are at remote locations where MARUTI SUZUKI does not have dealers. Some of these Service Stations are integrated into the sales process in order to increase sales of the cars and related products and services such as spares and accessories, insurance and financing. ? In recent years, the Company has used IT to enhance interface with the customer. It has deployed a world class Dealer Management Solution across its vast network of dealers throughout the country. The solution has helped dealer managements to access a wide range of information about their operations, as also customer satisfaction and feedback.
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KEY INITIATIVES
? Car pickup & delivery facility for women car owners ? Setting up "Express Service Bays" & "2 - Technician Bays" As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2- Technicians Bays. These are done for customers who are hard pressed for time. ? Mega Camps The company aggressively conducts 'Mega Camps' throughout the country round the year. Activities undertaken during a mega camp include complimentary car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc. ? Service at your Door Step through Maruti Mobile Support Another unique initiative is the door step service facility through Maruti Mobile Support. Maruti Mobile Support is a first of its kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable. ? Car Safety device: Immobilizer The company used technology to meet customer needs and even delight them. Following feedback that the company's cars were more prone to theft owing to their resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars. ? Complete car needs The company's effort of providing all car-related needs -- from learning to drive a car at Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the existing car for a new one -- under one roof at dealerships also enhances customer satisfaction
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? The Low Cost Maintenance Advantage A car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.
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BUSINESS STRATEGY OF MARUTI They intend to continue to focus on the small car segment, while offering products in most segments of the Indian passenger car market. They aim toachieve their principal objectives by pursuing the following businessstrategies: Maintain and enhance their product range: They intend to utilize Suzuki‘sexpertise in small car technology to produce new variants of their existing models and to upgrade their products with contemporary technology and features. Increase reach and penetration: They plan to continue to utilize their extensive sales and service network to increase the reach , in terms of geographical spread, and penetration, in terms of sales volumes, of their products across India. Increased availability of automobile finance: They continue to seek opportunities to expand the size of the Indian passenger car market, especially in the small car segment, through facilitating easy availability of automobile finance. To that end, they have recently entered into an agreement with testate Bank of India. Secure repeat purchases by offering a “360 degree customer experience” :On the basis of their belief that securing repeat purchases from an existing customer requires less expenditure than acquiring a new customer, they aim to provide customers with a ?onestop shop? for automobiles and automobile-related products and services. Continue to benchmark their manufacturing capabilities: They plan to continue to benchmark our manufacturing capabilities with the most efficient car manufacturing facilities of Suzuki and its subsidiaries. Continue to reduce costs to offer more competitive products: Cost competitiveness has been, and continues to be, central to their strategy as the leading manufacturer in the small car segment to expand the size of the
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market by offering competitively priced, high quality products. Thecomponents of this strategy are: •Higher levels of localization •Vendor participation in cost reduction •Cost reduction on warranties •Reduction in initial investment cost •Reduction in number of vehicle platforms •Achieve further cost reduction through higher productivity Lower cost of ownership: Through their business strategies, they seek to reduce the consumer‘s cost of ownership of their cars, which comprises the cost of purchase, the cost of fuel and maintenance, including spare parts and repairs, during the life of the vehicle, insurance, and resale value
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AFTER SALES SERVICE OF MARUTI SUZUKI INDIA LIMITED The country‘s largest car manufacturer, Maruti Suzuki India (MSIL), has initiated its largest service network expansion drive this financial year since its inception. In the course of the year, it intends to add 200 outlets to cater to demand across sectors. “After-sales service availability is a critical deciding factor while choosing a car. We intend to be within 25 km of customers by the end of the current financial year,” informed Pankaj Narula, executive officer (service), MSIL. MSIL has 2,855 service centers across 1,363 cities. The number is set to cross the 3,000-mark by the end of 2010-11. The company also has customers in 2,900 talukas and 70 per cent of these have been covered under their rule of a service station every 25 km. As of date, the average distance to the closest MSIL service station in the remaining areas is 35 km. ?No company can fight competition on price. You need to have the right product, di stribution and service network to grow,? said Arvind Saxena, director and board member (marketing and sales), Hyundai Motor India (HMIL). To this end, HMIL has firmed up plans to open 130 additional facilities to service customers in 2011. This would increase the number of service points for Hyundai cars to 757. Toyota, set to foray into the intensely competitive small car segment with the Liva in April next year, is working on doubling its sales and service centers by the end of this year. Sandeep Singh, deputy managing director (marketing), Toyota Kirloskar Motor, said: ?Wordof-mouth publicity plays an important part in selling vehicles in the country, which depends on customer experience of the products and facilities we offer. Toyota products are known for their quality; cost of ownership is low. We intend to double sales in 2011, and to service the 150,000 cars we hope to sell, we are rapidly expanding our after-sales facilities.? TKM had 97 sales and service centers last year, which would increase to 150 by the end of this year. Of this, 135 centers would have workshops for maintenance activities. Among others, Toyota has developed a new dealership management system, which would enable the company to maintain a database for all its customers across the country.
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?When a customer approaches any Toyota dealership for maintenance, his record would already be available with us. We would be able to offer quality service within the shortest time possible. Along with the Etios, we have also introduced an ?Express Maint enance' service, in which we give customers an assured delivery within 60 minutes. This is a unique initiative taken by us to take care of our growing customer base,? said Singh.
AFTER SALES SERVICES OFFERED BY MARUTI I] Car pickup & Delivery facility for women car owners Quote Unquote: "The study finds that vehicle pickup and delivery before and after service has a strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their after-sales service experience, compared with customers who do not receive this service...." II]Maruti True Value Unique advantages: * India's largest certified used car dealer network * 358 outlets in 210 cities and growing * All car related services under one roof * professionally trained manpower * Complete peace of mind
Maruti True Value business expands the family of Maruti customers, providing reassurance to existing Maruti customers about resale of their cars and further emphasizes Maruti s Commitment towards enhancing customer satisfaction by continuous association during the vehicle ownership life cycle.
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No one knows your Maruti car better than Maruti - based on this premise, Maruti chanalises its expertise to ensure that transactions in pre owned cars are transparent and fair. Through that, the company endeavors to extend the relationship and emotional connect that it enjoys with the customer.
True Value has transparent and fair evaluation process, which is currently missing in the largely unorganized market for pre-owned cars. Maruti True Value processes and systems ensure that the seller gets the right price and is paid promptly.
Under True Value, the seller has the option to be paid in cash /cheque, or get a True Value car in exchange or a brand new Maruti Suzuki car in exchange. True Value category cars bought by Maruti True Value dealers are taken to state-of-the-art workshops.
True Value Category cars are refurbished in state of art workshops using Maruti Genuine Parts and by skilled technicians. These cars are then sold through maruti True Value outlets.
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As a mark of confidence, and to provide reassurance to customers, every vehicle bought under Maruti True Value is inspected and certified by Maruti Engineers and the Car carries a one-year warranty and three free services. Convenient finance options are also offered to buyers of Maruti True Value cars
III] Maruti Car Driving School MDS offers variety of courses to meet customer requirements. They may choose among our courses based on their: Training requirements
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Whether they need comprehensive training from the scratch, or they need to gain confidence while driving under able guidance, or they need to gain knowledge related to road safety, driving and traffic from reliable instructors, or
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if you want to learn driving before purchasing or upgrading to a new car Time MDS offers courses ranging from 2hrs to 30 hrs. Based on training requirements and availability of time, customers may choose any course. Vehicle Choices MDS has almost all the models in its stable to offer for practical training.
IV]Maruti Countrywide Loans Maruti Countrywide was set-up when GE Capital, HDFC and Maruti Udyog Limited formed a captive finance company in 1995. A professionally managed company we share the ideals and work culture of the parent companies. Our prime objective is to cater to the needs of Maruti car buyers by offering innovative finance schemes for the purchase of Maruti cars. Citicorp Maruti Finance Citicorp Maruti Finance Limited was formed when Maruti joined hands with Citibank in May 1998.
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Located in 52 cities we are the first company that provides services to finance the purchase of secondhand cars nationally. We also offer a wide range of flexible and customised financing options at affordable rates to individuals buying a Maruti car. Maruti Finance To bring you competitive financing, we have launched Maruti Finance. It is available across the states in India. Maruti has tied up with 5 finance companies to form a consortium. This consortium comprises Citicorp Maruti, ICICI Bank, HDFC Bank, Kotak Mahindra and Sundaram Finance. best interest rate Maruti Finance offers the best rates of interest. The installment schemes are designed to suit your convenience and other requirements. value addition Extended warranty: Maruti Finance gives you the privilege of extended warranty that goes up to four years! This means four years of hassle-free maintenance. You can get up to 30% discount on extended warranty under Maruti Finance. Loans for Insurance and Accessories Loans for insurance and accessories are built into the EMI's, keeping the whole deal simple and hassle free. So if you haven't already made up your mind, just walk into an authorised Maruti dealership for the best cars and best finance options. To find out more about financial schemes and services from our Joint Ventures and Dealers, and about the new SBI car loans, visit the links below. The country's largest bank and the largest car maker have joined hands to make affordable car finance available to more and more people across the country. The mega alliance makes car loans available at lower interest rates to a wider section of people, with transparent terms and conditions. It is supported by the unmatched combined network of SBI branches and Maruti outlets. The Unbeatable Advantages of SBI-Maruti Car Loans
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? ? ? ?
Two market leaders in their respective industries with trusted brand names. Lowest interest rates No processing fees or hidden costs to ensure transparency Car loans available for diverse categories of customers including government employees and agriculturists
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More loan amount available as it is extended on the basis of the car's on-road price, not ex showroom price.
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Longer loan repayment period -- up to seven years
V] Service Centers: To reach our customers, we have built a strong sales network of 933 outlets spread over 668 towns and cities. We provide maintenance support to customers through 2946 workshops spread over 1200 towns and cities.
NETWORK EXPANSION
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NETWORK EXPANSION (NOS.)
AS ON 31ST MARCH, 2010
AS ON 31ST MARCH, 2011
INCREASE
Sales outlets
802
933
131
Cities covered by sales network 555
668
113
Service stations
2,740
2,946
206
Cities covered by service network
1,335
1,395
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Maruti Driving Schools 83
166
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In these competitive times the challenge is to keep inventing newer ways of doing things to keep the customers in your fold.
Over the last few years ,the company strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers. These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers. The company has retained its competitive edge by offering high quality products. In the field, the products are supported by rapidly expanding networks. The company has diverse networks for new cars, spares, service, pre owned cars and so on, and all of them were in expansion mode last year to enable the company get closer to the customer.
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VI}Servicing customers 24X7 ..... 365 days.... The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 8th time in a row.
The award mirrors the company's commitment towards "Customer Obsession".
VII] Setting up "Express Service Bays" & "2 - Technician Bays" As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2- Technicians Bays.
These are done for customers who are hard pressed for time. Both the initiatives undertaken in this direction, have helped improve customer interface and also helped increase the productivity and capacity of existing workshops. VIII}Car Safety device: Immobilizer The company used technology to meet customer needs and even delight them. Following feedback that the company's cars were more prone to theft owing to their resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars. Complete car needs: The company's effort of providing all car-related needs -- from learning to drive a car at Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the existing car for a new one -- under one roof at dealerships also enhances customer satisfaction.
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IX] Mega Camps
The company aggressively conducts 'Mega Camps' throughout the country round the year. Activities undertaken during a mega camp include complimentary car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc.
Apart from mega camps workshop camps like A/C checkup camps, PUC and general checkup camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of customer connect initiatives. Maruti suzuki presents MEGA EXCHANGE MELA and MONSOON FREE CHECK UP CAMP Maruti suzuki presents MEGA EXCHANGE MELA and MONSOON FREE CHECK UP CAMP Maruti suzuki presenting SPECIAL OFFER up to Rs.90,000/- + Best Resale value + Special Savings man more Buy a RITZ get a discount of Rs.45,000/Buy Wagon-R Maruti Suzuki and get a discount of Rs.45,000 with insurance Buy Zen estilo, you would get Rs.50,000 with insurance Buy Maruti Suzuki‘s alto you can avail free insurance plus a discount of Rs.45,000 Buy a A-star and avail discount of Rs.45,000/Buy Omni and get Rs.20000/- Discount Visit for FREE Check-up Camp and avail 3% Discount on spare parts & 10% on Labours HURRY! Limited Period offer...
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X]Service at your Door Step through Maruti Mobile Support or Maruti On road Service ( MOS) Another unique initiative is the door step service facility through Maruti Mobile Support.
Maruti Mobile Support is a first of its kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable. Even with the most stringent quality measures, complex machines like cars can sometimes malfunction. Just call our 24 Hour Maruti On-road Service (MOS) centre during an emergency and help will be on its way to you.
The MOS ensures:
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Round-the-clock services in most of the cities. A computerized call-monitoring system dispatches a mobile MOS van to you at the earliest.
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All MOS vans are manned by qualified Maruti Authorised Dealers / MASS technicians who are trained by Maruti in problem diagnosis.
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You are charged only Rs.100 on labour and spares. The charges do not apply provided vehicle is under warranty and the defect is covered under warranty. For detailed warranty policy, kindly refer to owner's manual provided with the vehicle.
XI]Maruti Auto Card Maruti Suzuki Loyalty Card is a unique loyalty reward program designed exclusively for you - the owners of Maruti Suzuki Car. The program is loaded with powerful features and offers you the best services along with exciting rewards and privileges. With this program you not only get rewarded on your spends but also on the contribution you make towards the ever increasing sales of Maruti Suzuki.
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So the next time whenever you refer your friends/relatives to buy a new Maruti Car or get your car serviced at Maruti Suzuki network just use your Maruti Suzuki Loyalty Card and get rewarded with high value Auto Points (One Auto Point equals 1 rupee in value).
This is not all. You get an attractive exchange loyalty bonus of 3000 Auto Points when you exchange your existing Maruti Car with a new one. To maximize the benefits on the Loyalty Card, Maruti has partnered with State Bank of India - India‘s leading and most trusted bank. Maruti & SBI are both leading brands, and have consistently spelt trust and quality in all their product offerings for the Indian consumer
XII]One Stop Shop for All Car Needs!
With the condition of Indian roads getting poor every single day, there is a requirement of a car that delivers efficiently and looks stunning also. Because of the mismanaged traffic and bad Indian roads, the people daily face many problems and are unable to enjoy the car ride. Keeping all these problems in mind, Maruti Suzuki Limited has introduced a car which keeps in mind all the requirements of a consumer. With the launch of its new car Estilo, Maruti Group has played a winning bet and has brought a car with substance to all. The need of hour is a car that can tackle such grueling conditions and at the same time delivers the maximum pleasure of driving with utmost comfort and convenience. To address all the needs of the consumers, Maruti Suzuki Limited has come up with their all new Estilo. The car has been intelligently engineered and uniquely designed to suit the needs and demands of the Indian customers. Maruti Suzuki Estilo comes with a shorter wheelbase, high ground clearance, minimum turning radius and compact dimensions- all of which makes it suitable to run on the Indian roads. The wheelbase is 2360mm while the minimum turning radius 4.6m. Wheelbase is the distance between the front tire & the rear tire and the lesser wheelbase helps the car in taking the faster and sharper turns. This high ground clearance of Estilo is highly beneficial for all the consumers and people driving the car. Maruti Suzuki Estilo has a high ground clearance of 165mm which ensures the ideal functioning of the car even on a very bad road. Estilo is the best car to opt in the whole A2 segment of cars. Maruti
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Suzuki Estilo does not burn a hole in the pockets of the consumers. It is one of the most desired cars of the whole automobile industry. XIII]Customer support Customer Care Number
1800 1800 180 (BSNL/MTNL lines) Toll Free
Chargeable Number :9910202020 Contact Maruti Suzuki Email Online [email protected] Contact Online You can fill online contact form Write to Maruti Maruti Suzuki India Limited Nelson Mandela Road(NM Road), Vasant Kunj, New Delhi 110 070 Board No.46781000 Fax : 46150275 and 46150276
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OTHER EVENT ORGANISED BY MARUTI :
MOTOR SPORTS
Maruti Suzuki has been actively promoting motorsports in the country for over a decade now. To popularize action sport, the Maruti Suzuki motorsport calendar is packed with exciting motoring events. Be it for a motorsport enthusiast, an amateur or a professional, there are events that offer the thrill and joy of motorsport to one and all. The events include Autocross, Treasure Hunt and professional rallies including Maruti Suzuki Raid-de-Himalaya, Maruti Suzuki Desert Storm and Maruti Suzuki Dakshin Dare. These events provide rallying thrills as well as promote safe driving habits.
For families, there are events like Women's Fun Drive and Treasure Hunt throughout the year, across cities. This year we will be organizing the fourth edition of Maruti Suzuki AutoCAD Young Driver contest, a nationwide search for India's best young driving talent. RIDE TO HIMALAYA The 14th edition of the Maruti Suzuki Raid-de-Himalaya, one of the most awaited motorsport events in the country is all set to be flagged off amidst huge fervor and excitement from Shimla on 6th October 2012.
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This year‘s the first competitive leg of the rally will start off from Shimla on 7th Oct 2012 and end in Leh on 12th Oct 2012 covering over 1,800 kms.
As many as 150 teams with more than 300 participants in four wheelers and 43 bikers will brave the inhospitable terrains and weather conditions of the Western Himalayas to compete for the top prize. The tougher route this year goes through some of the highest motor able passes and human settlements in the world. These include Darcha (3360 mts), Keylong (3440 mts), Leh (3524 mts), Kaza (3650 mts), Dhanka (3894 mts), Losar (4079 mts), Rumtse (4300 mts), Kunzum La (4551 mts), Komik (4587 mts), Pang (4600 mts) &Wari La (5313 mts)
Speaking on the occasion, Mayank Pareek, COO Marketing & Sales, Maruti Suzuki said, ?Maruti Suzuki Raid-de-Himalaya is an example of how country‘s leading car maker made it possible for motorsport to reach to masses and flourish in India. Around two decade back, when Maruti Suzuki entered the arena of motorsport, it was available only to a few people as niche sport. Gradually, the company has brought it within the reach of common motoring enthusiast, especially youth, through many motorsport events. The increasing attention that Maruti Suzuki Raid de Himalaya gets every year from across India and from abroad speaks of the popularity and success. With carefully chosen motoring routes and terrains, Maruti Suzuki Raid de Himalaya this year too is all set to test the man and machines, their abilities and endurance in the mighty Himalayas.?
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KEY SUCCESS FACTORS (1)The Quality Advantage Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters. (2) A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car. (3) Quality Service Across 1036 Cities In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best inservice experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. (4) One Stop Shop At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs. (5) The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most com45
petitive, and it is here where Maruti Suzuki shines. (6) Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. (7) Technological Advantage It has introduced the superior 16x4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuelefficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car.
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AFTER SALES SERVICES OF : TATA MOTOR Tata Motors has now come up with Tata Motors Service Edge, a widespread & extensive customer service enterprise. The company‘s service network covers 800 service centers located in 500 cities and towns of the country. ?Response in minutes, resolve in hours‘; ?Service with unmatched reliability‘ and ?Assured value for money‘ are the three core characteristics of this initiative.
Speaking about the this novel concept, Mr.Anupam Misra, President, Concorde Motors (I) Ltd said, ?The Service Edge initiative is a great stride in our path to increase our reach & support to our valued customers. At Concorde, we believe in customer focus. We will continually strive to delight our customers across locations through the Tata Motors Service Edge program.?
Response in minutes, resolve in hours: Tata Motors Service Edge will bring speedy assistance to customers when in need.
24X7 On-road assistance programme: In association with MyTVS, Tata Motors has launched a breakdown assistance programme and towing assistance across the country accessed through a toll free helpline (1800 209 7979) and serviced by a dedicated network of over 2,000 authorized service providers. Quick response is ensured within 60 minutes in city limits, 90 minutes on state or national highways and within 120 minutes on hilly roads and other places.
Rapid repair: Rapid repair is a cost effective, quick and specialized body repair programme offered across the Tata Motors dealership network. Small dents, scratches and such body jobs are attended with an assurance of the car delivered on the same day.
e-Service appointments: Through an online service appointment facility, customers can select a time slot, date and a dealer of their choice for servicing their vehicle. Customers can also list down on-line job orders based on the repairs required. Post the on-line registration, the respective dealership customer relations officer responds instantly and confirms the appointment.
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Speed-O-Service: Speed-O-service has been designed to offer quick repair service within 60 to 120 minutes using specialized manpower and infrastructure. Tata Motors can repair 6 vehicles per bay per day through this process, ensuring faster response and increasing service efficiency.
Service with unmatched reliability: The company is ensuring that problem diagnosis and the related solution is comprehensive.
Symptom based diagnostics: A state-of-the-art diagnostic system ensures quick and comprehensive check of the vehicle. At each dealership a technician has been intensively trained as Diagnostic Expert Technician (DET). They attend to challenging repair requirements on the basis of symptoms indicated by the customers.
Flying doctors: A pool of 10 on-call technical experts has been set up across the country for higher level diagnostics to address any issues where dealers & DETs need support.
Quality repairs: Under this programme each vehicle is subjected to standard quality checks to identify repair requirements not noticed or reported by the customer, ensuring that complete health of the vehicle is assessed, attended to and customers are apprised. Over 15,000 technicians are trained annually to provide quality service through 8 training centers across the country. The company plans to build a world class training centre in Sanand.
Assured value for money: Assuring value for money has consistently been a core attribute of Tata Motors‘ products and services. Tata Motors Service Edge further strengthens it. The company has standardised and regulated service & repair charges which are reasonable across the network.
Value care: The company offers customised maintenance plan for service, minor and major repairs including wear & tear with flexible payment options. The Value care plan covers labour, parts, consumables, and guarantees substantial savings through price protection against inflation and ensures appropriate resale value for the vehicle at the time of exchange. Thus, customers accrue huge savings on cost of maintenance over a period of time. Tata Motors’ Original Parts (TOP): Tata Motors is the only manufacturer in the industry to
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provide 1 year warranty on its genuine spare parts, which are trademarked as ?TOP‘. Available across all Tata Motors dealerships, the spare parts are competitively priced and customers can avail of the warranty if the parts are fixed in a Tata Motors authorised service workshop. Tata Motors has also designed various cost effective repair kits which further add value to customers.
Tata Motors Insurance: The insurance scheme offers convenience of on-line policy issuance & near cashless repairs facility across the Tata Motors authorised network. The industry-best depreciations on composite parts under Tata Motors Insurance provide substantial savings. The company plans to launch a zero depreciation cover policy in the future.
Extended Warranty: A protection against unforeseen breakdowns, the programme extends warranty benefits for up to 4 years or 150,000 kms, applicable to all Tata passenger vehicles. The ?Nano Secure Extended Warranty‘ allows Tata Nano customers to choose from an extended warranty of 12 months/40,000 kms or 24 months/ 60,000 kms.
Gold Club: It is a privileged 2-year membership programme offering priority services and attractive discounts. A customer can become a member of the Gold Club for only Rs. 499/-.
Concorde Motors, a 100% subsidiary of Tata Motors, has its service locations in Hyderabad, Chennai, Cochin & Bangalore operating with 12 workshops.
Customers can access the 24 hour helpline services through the following numbers : Bangalore – 9844007484, 9972633522, 9741311114 Hyderabad – 9959344400, 9866444000 Chennai – 9841877000, 9841022244 Cochin – 9287488888
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COMPARISON OF SERVICING OF TATA AND MARUTI
Experience of Servicing Tata Nano from Tata Motors By the end of 2011, Tata Motors had sent a letter stating that starter motor for Tata Nano can be replaced free of cost at their service centre because the company has noticed a manufacturing defect. I was lazily holding onto that notice until one of the Tata Motors service representative called to remind me. The lady insisted me to setup an appointment so that motor can be replaced else after 15 days, customers will be charged for replacement. When I informed that I am short of time to get the service done, the representative offered to let their driver pick up the car and if required drop the car after the service is done. On the set time, driver came to pick up the car. I chose to go with the driver to service station. At 11:00 AM, I was in the service centre. I had a few minor adjustments that needed to be done. I was told that the whole process would take 4-5 hours. By 7:00 PM service centre was ready with the car. At 7:00 PM, I heard the closing siren of the service centre. However, service representative offered me to take to test drive. After the drive, I suggested a couple of minor complaints and he willfully attended my complaints to my satisfaction. Customer satisfaction score was mandatory for every service performed and advisor was probably expecting excellent score on service. However, I was unhappy with the service not because of quality of service but because service had taken around 9 hours instead of promised 4-5 hours. I gave rating of 9 or more on all parameters when service advisor insisted on it. However, I gave a rating of 7 on timeliness and 8 overall when Tata Motors called on phone next day.
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The rating of 7 and 8 started a series of events. Service Centre in-charge for services called me whether my service was not done properly. Even Service Advisor called and asked how he may satisfy him if I am not happy with the service. Score of 7 or 8 was not acceptable to them and they really looked desperate to fix the problem. I realized that Service was done to my satisfaction except that it took longer than expected. I had forgotten that while it took so long, Service Advisor had worked overtime to mend my complaints. I had a firm belief after the service that feedback is taken very seriously in Tata Motors. Experience of Servicing Swift Dzire from Maruti Suzuki Instance 1 - Regular service Last month, my Dzire completed its one month and I was already feeling some creaking noise and observing that car was giving a lot of vibrations when passing over pot holes on the road. I took Dzire to Moti Nagar service station, the location recommended by sales representative who sold me this car. I had informed that I was feeling lot of vibrations and the creaking noise and I was assured that they will be minor loosening of bolts; bolts will be tightened and noise and vibrations will disappear. The representative sold me the body coating package that included Teflon coating, anti rust coating etc. I entered around 10:00 AM and I was out of the service station by lunch time at around 1:30 PM. After the end of service, I was asked pay for the coating package and consumables. I diligently paid and Maruti issued me a gate pass. At that time, I was looking for Service Advisor who was nowhere to be seen. On my way back home, I realized that creaking noise is still there and the vibration level has not changed a bit. I returned to the service centre and asked for Service Advisor. This time, Service Advisor came with me for a test drive. We returned to service centre and he fixed the back seat which was lose and might be causing creaking sound. I was assured that vibrations are like that in Dzire and the level of vibration in new car may not sustain now (is a month old car not new?) I was offered to go home and return if I notice the sound again. Creaking sound was still there although lot less frequent. I returned to service station and informed to the advisor. The advisor advised me to observe the car for a few days as it may take some time for seat to settle and the noise should disappear. I was not fully satisfied but I believed what I was told.
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Instance 2 – Repair of bumper A few days back my Dzire was hit from behind and I took the car to the same Moti Nagar service station. Three days later, I went to pick up my car in the evening. The car was dirty from outside. It had developed a few more nicks. The trunk (boot) that was not closing due to the accident still showed resistance in closing. I got the trunk lock adjusted although the adjustment is still not what I had in the new car (this is anyway just 1.5 month old car). I had to get those nicks touched up. My car was cleaned from outside and inside. I was not offered a test drive and I did not believe that test drive was required. On my way back, I realized that the dash board panel (where odometer, fuel level indicators display) was hazy with oil marks. I tried to clean the display with my hands and the oil spread further to block the view completely. I noticed from inside rear view mirror that back glass showed similar oil marks and floor mat were put upside down. I could not help but remember the instance when service advisor had adjust the outside rear view mirror by hand when there was a joystick to adjust the rear view mirror (this could disrupt the setting). I called the service advisor telling him that my car is still dirty. In response, he offered me to bring the car back to service station to get it washed. I was thinking, why couldn‘t washing be already done. Next day, when I thought of cleaning up my car, I found that the new duster that I had bought and I had put in the trunk was missing. I should have given a really low rating for core service activities (creaking noise still there, vibrations still present, trunk does not close as smoothly as it used to be) and additional service activities (car was not clean). However, feedback form is not mandatory for Maruti. Overall Comparison of Tata vs Maruti 1. None of Tata or Maruti overcharged me for their service. At least I did not feel so. 2. Tata took longer to service while Maruti was prompt in their service. Tata did not value much to promptness of service. 3. Tata took the responsibility of the quality of their service. On the other hand Maruti does not care.
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COMMON BETWEEN MARUTI, TATA, FIAT AND GENERAL MOTORS IN INDIA
It does duty in small cars like Maruti Swift, Ritz, Fiat Punto and Tata Indica Vista. It also powers sedans like Maruti Dzire, SX4, Tata Indigo Manza and Fiat Linea. Recently a utility vehicle in the form of Ertiga was added to its repertoire. And in the not too unforeseeable future, its expansion would include the likes of GM‘s van Enjoy, small car Sail and its sedan version, Premier‘s SUV Rio and possibly also Maruti‘s own SUV XA Alpha that was showcased in the January Auto Expo.
Fiat
In short, if a unifying force is needed in the competitive Indian automotive landscape, Fiat‘s award winning 1.3 litre multijet engine would win the coveted crown hands down. Arguably the most efficient small diesel engine around the world (Hyundai, Ford and Toyota may raise the mandatory objections), the engine was a result of joint collaboration between Fiat and General Motors and won the international engine of the year award in 2005 pipping in the process 60 other engines including Peugeot-Citroen and Ford‘s 1.4 litre diesel engine, VW‘s 1,4 litre FSI, Toyota‘s 1.4 litre engine that does duty in Etios, Liva and Altis and Di ahatsu‘s small 1.3 litre engine.
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Engine
Since then, almost 4.5 million engines have been plonked on to cars of various shapes and sizes across brands and continents and it remains one of the most preferred power trains among companies and consumers alike. A direct benefit to companies who have been borrowing it from Fiat is an obvious one. They are saved from investing billions of dollars into developing an engine that may or may not turn out to be as revolutionary. Further in the case of some Japanese companies like Suzuki and Honda, it is even more difficult as they are traditionally not well versed with the dynamics of diesel power train. But the impact of this engine on sales has been as diverse as the companies that use it. One would have expected that Fiat, as the main developer of the engine, would have made the best possible use of it in its own cars. Far from it, the Punto and Linea remain glorious duds in India.
The Italian firm’s joint venture partner Tata has done only slightly better. Indica vista and Indigo Manza are the company’s two bread and butter models in India but they are sluggish and noisy and do not exploit the capabilities of the engine.
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Swift
It is infect Maruti that has fared the best. In the Swift and Dzire, the engine has found a life of its own and performs even better than in the Punto and Linea. The impact is visible on sales as well. It is a lifeline that Maruti has dearly hung on to in its bid to retain market share in India. The Swift‘s recent bull run for example is largely on the back of the spurt in demand for its diesel variant that helped it overtake Alto and become the largest selling car in India in April. Suzuki does not have expertise in diesel technology and without the Fiat engine, Maruti would have found itself on the back foot. Today, the Swift and Dzire are Maruti and India‘s best selling cars and Ertiga looks set to join the list as well. Though GM was a partner in the development of the engine and retains equal rights to the engine, it has not introduced it in any of its cars till date. While that defies logic considering that the demand for diesel is no longer a recent phenomenon, the company would launch at least 3 cars with the engine this year — the hatch back Sail, its sedan version and the van Enjoy. Only time will tell whether it would be able to do justice to the engine or end up underutilising it.
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QUESTIONAIRY 1:- Do you have a four wheeler?
YES NO
20 5
Four Wheeler
Yes No
56
Q – 2:- If yes, which company do you have?
Maruti Tata Hyundai Honda
8 4 6 2
company
9 8 7 6 5 4 3 2 1 0 Maruti Tata Hyundai Honda Maruti Tata Hyundai Honda
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Q – 3:- Which features of four wheeler affected your buying decision?
LOOKS/STYLE MAINTENANCE/MILAGE PICKUP/POWER RE-SALEVALUE PRICE AFTER SALES SERVICE
4 5 1 1 4 5
Features
LOOKS/STYLE MAINTENANCE/MILAGE PICKUP/POWER RE-SALEVALUE PRICE AFTER SALES SERVICE
58
Q 4:- Are you satisfied with its performance?
FULLY SATISFIED PARTIALLY SATISFIED UNSATISFIED
5 9 6
Performance
FULLY SATISFIED PARTIALLY SATISFIED UNSATISFIED
59
Q –5:- Are you satisfied with its after sales services?
YES NO
11 9
Satisfied
Yes No
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Q -6:- What major problems (Demerits) do you face with your car?
LOOKS/STYLE HEADLIGHTS HORN SEAT BREAKING SUSPENSION
1 2 4 3 1 5
Problems
LOOKS/STYLE HEADLIGHTS HORN SEAT BREAKING SUSPENSION
61
Q –7:-Are you satisfied with its services quality?
YES NO
9 11
Satisfied with Services Quality
YES NO
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CONCLUSION Maruti has always been identified as a traditional carmaker producing value-formoney cars and right now the biggest hurdle Maruti is facing is to shed this image. Maruti wants to change it for a more aggressive image. Maruti Baleno has failed due to one of the major reasons being that customers could not identify Maruti with a car as sophisticated as Maruti Baleno. Maruti is looking forward to bring about a perception change about the company and its cars. Maruti started the exercise with the new-look Swift , and Suzuki's decision to pick India as one of the first markets for this radically different-looking car gave this endeavor a new thrust. Maruti has also changed its logo at the front grill. It has replaced the traditional Maruti logo on grill ?stylish ?M‘ with S‘. The major thrust in the facelift endeavour is with the launch of 1.3 litre Swift. It‘s a style statement from Maruti to Indian market.
Rise in petrol prices and growing popularity of other substitute fuels like CNG will be another threat to Maruti. There is also a threat to Suzuki from R&D investment by Toyota and Honda in Hybrid cars. Hybrid cars could run on both petrol and gaseous fuels.
There is a threat to Maruti models ageing. Maruti models like Maruti 800 which is in market for the last twenty years and others like Zen and Esteem which have also entered the decline phase are the other threats. Maruti is planning phasing out Zen in 2007 and there were rumors of phasing out Maruti 800 also. This all makes Suzuki to replace these brands with new launches . As Swift and Wagon R are replacing the Zen market. Maruti will have to keep on making modifications in its present models or its models will face extinction.
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List of References
-
Aaker, D.A., & day, G.S. (1990) Marketing Research, 4 ed. Newyork: Wiley cop. Marketing Management, Phillip Kotler, (13th Edition) Times of India, News Paper Levitt, Theodore. ?After the sale is over,…? Harvard Business review 16 (1983): 8793.
-
Parasuraman A., Customer service in business-to business markets: an agenda for research, Journal of business & Industrial marketing, volume 13 number 4/5, 1998 pp. 309-321
-
Gronroos, C.(2000), Service Management and Marketing: A Customer Relationship Management Approach, 2 ed., Wiley, Chichester
-
Websites
:- www.marutisuzuki.com :- www.wikipedia.com :- www.economist.com :- www.indiainfo.com
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doc_330634758.docx
SR NO. 1
TOPIC
PAGE NO.
AFTER SALES SERVICE
2
2.
KEY ELEMENTS OF AFTER-SALES SERVICE
4 8
3. 4. 5. 6. 7. 8. 9. 10. 11. 12 12 13.
INDIAN AUTOMOBILE INDUSTRY MARUTI- SUZUKI VALUE - CHAIN ANALYSIS (PORTER) BUSINESS STRATEGY OF MARUTI AFTER SALES SERVICE OF MARUTI KEY SUCCESS FACTOR FOR MARUTI AFTER SALES SERVICE OF TATA MOTORS SERVICING COMPARISON BETWEEN TATA AND MARUTI COMMON BETWEEN MARUTI, TATA, FIAT AND GENERAL MOTORS IN INDIA QUESTIONAIRY CONCLUSION REFERRANCE
15 23 29 31 45 47 50 53 56 58 59
1
AFTER-SALES SERVICE
After-sales service, which is in after sell all kinds of services provided. From the sales promotion to see, after-sales service itself is also a marketing tool. Follow up the stage in tracking, sales people to take various forms of cooperation, through the after-sale service to steps to improve the enterprise prestige of products and expand the market share, improve work efficiency and benefit of selling. After-sales service, it is to point to the production enterprise, dealers, the product (or service) sales to consumers, to provide consumers after a series of service is the objective. In the fierce market competition today, with the increasing awareness of the consumers and the changes in the concept of consumption, consumers in purchasing products, not only pay attention to product entity itself, in the similar product quality and performance similar circumstances, more importance to product after-sales service. Therefore, the enterprise in the offer the good and cheap products at the same time, to offer consumers perfect after-sale service, has become a modern enterprise market a new focus of competition. China, have haier group for after-sales service, and sales to rise steadily case. Objectively speaking, the high quality post-sale service is the product of brand service economy, famous brand product post-sale service often better than hybrid product. Famous brand of the price of the product brand enterprise service center. Case of general prep above, on the one hand, the inferior brand based on the cost of product and quality, but also because of the famous brand product sales strategies have considered after-sales service costs. Definition After Sales Service is defined as “Periodic or as-required maintenance or repair of equipment by its manufacturer or supplier, during and after a warranty period.”
Customer Service End-user of many types of product, ranging from computer systems to domestic appliances, require customer support at some time – assistance to help them gain maximum value from their purchase. In fact customer support entails all activities ?to ensure that a product is available for trouble-free use to consumers over its useful life span?(Goffin 2001). The concept of customer service has been a generic term used by industry and academia to describe a set of activities in which a firm engages to win and keep customers. Simply differentiation of customer service refers it to a variable that expands the image of a product and thereby offers
2
the possibility of giving the firm‘s product market acceptance, growth and the possibility of market dominance (Larissa, 1994) In this prime role, customer service is viewed as an organized corporate philosophy consisting of a comprehensive and related set of activities. Specifically, customer service is not a generic abstraction, but rather a series of specific services prior to the transaction, during the transaction, and after the transaction. Firms offer specific service elements, such as ?timely deliveries?, ?efficient telephone handling of orders and queries?, ?accurate purchase statements?, and users receive customer service not in some abstract sense, but as the ?availability of an item?, ?after-sales service and back-up?, ?competent technical representatives?, ?demonstation of equipment? or ?special product promotions?. While there is broad agreement that these elements are commonly associated with customer service, the degree of importance attached to each respective service variesfrom industry to industry and company to company, depending on customer needs and the capability of the service-providing organization (Larissa 1994). There are two aspects of customer support, which particularly deserve management attention. First, there is the need for customer support requirements to be fully considered at the design stage – using what are called design for supportability techniques- in order to develop products, which are economical and easy to support. Second, the logistic of delivering customer support through suitable channels is key. Companies, which are good at both of these aspects have differentiated themselves from their competitor stand won significant market share. According to Eppientte (1997), customer service has been emerging as a competitive weapon for business firms. He mentioned ? it is becoming harder and harder to compete on manufacturing excellence alone. Manufacturers who thrive… will compete by bundling services with products.?. Of course, use of customer service, as a form of competition does not apply only to manufacturers. With the economy becoming increasingly service based and new kinds of services being offered continually (Schmenner, 1986), the input of customer service may be even more dynamic for non-manufacturers. It is probably safe to say that, in one form or another, all businesses are concerned with customer service. As early as 1972, Levitt noted that everyone is involved in service and that the service sector ofthe economy includes everything from banking and airlines to product-related services and the sales-related services offered by manufacturers and retailers. Obviously, customer service is a part of all facets of our economy and is especially important to the long-term survival of companies.
3
KEY ELEMENTS OF AFTER-SALES SERVICE
Providing the proper after sales service is very important for firms and customers. Traditionally, support merely constituted maintenance, service and repair. However, as the scope of product support has broadened over the past decade, it has also included such aspects as installation, commissioning, training, maintenance and repair services, documentation, spare parts supply and logistics, product upgrading and medications, software, and warranty schemes, telephone support, etc. (Tore and Uday, 2003)
An after-sales support strategy associated with a product may include elements such as warranty provision, extended service contract provision, availability of repair service, loan availability, toll-free phone support, etc. (Arvinder, 1996)
Study on each of these elements and choosing the best one(s) is a crucial activity for all firms. According to Gulden (1997), after sale service consists of a number of dimensions or elements. It is conceptualized as consisting of the following: • The installation and start-up of the purchase product • The provision of spare parts for products • The provision of repair services • Technical advice regarding the product • The provision and support of warranties
But Goffin (1999) explanation may be more complete, that states seven elements of after-sales support which must be provided to customers over the working lifetime of products as follows: • Installation : For many products, the first element of product support following the sale is installation. This is usually performed for complex products (e.g. computer systems), or where safety issues are involved (e.g. medical devices) by personnel from the manufacturing company, or their representatives. Increasingly, where product design allows it, customers themselves will install their purchases and manufacturers face the challenge of making this easy for, often, non-technically minded customers. A good example of the importance of easy in4
stallation is that IBM recognized in 1990 that their personal computer customers wanted to be able to unpack their purchases and have them running quickly. This led to products with preinstalled software and which consequently could be unpacked, assembled, switched on and in use within five minutes • User Training : The complexity of some types of equipment necessitates that manufacturers provide good training for users. For example, hospital staff need to well-trained in the use of critical care devices and the successful implementation of process innovations, such as new manufacturing equipment, depends on extensive training being given over a long period. Many computer-based products include functions which help users learn to use them more efficiently; these can range from single Help functions, to full training packages as offered by manufacturers such as IBM. However, training costs can still be very high business users have to invest significant amounts of money in training their employees in efficient use of personal computers. For simpler products, training is not necessary and details of product operation are usually given in user documentation. • Documentation : Most products have some form of documentation and industries such as medical electronics it playas key role. Typical forms of documentation cover equipment operation, installation, maintenance, and repair. Good documentation can lead to lower support costs and increased products is poorly written and hard to understand. New technology is being applied to documentation and, for example, CD-ROMs are making car servicing more efficient. • Maintenance and Repair: Historically, maintenance and repair has been an important element of product support, which has required companies to invest significant resources. For example, an estimated 500,000 car mechanics are employed in the USA. If equipment fails, fast and efficient repair is essential in many markets because ? down-time costs run typically at anywhere from 100 to 10,000 times the price of spare parts or service?. In markets where product failure has strong implications – for example, computer systems for financial institutions- companies need to offer either equipment, which is very reliable (or even never fails), or a rapid response to expedite repairs. One way to achieve a fast response is to provide customers with loaner equipment in the event of breakdowns, where this is feasible. Another strategy for maintenance and repair is to design disposable products; the approach used by some companies for watches, torches and other products. Where repair costs do not exceed a significant
5
percentage of product replacement costs, having repairable products is the best strategy for companies. For repairable products, it makes sense for companies to develop good diagnostics- efficient means to test for problems and identify the causes. However, where products are becoming cheaper and more reliable, as is the case with Pcs, service is becoming less viable. In order to repair faulty equipment, companies need to have efficient logistics for the management and movement of spares, the parts used in repairs. Some companies have focused strongly on this area, to gain an advantage over their competitors. Maintenance also referred to as preventive maintenance is undertaken to clean, refurbish or replace parts of equipment which otherwise would be liable to fail. Mechanical parts, for example, normally require regular maintenance as in the case of cars. In the computer sector, where fewer mechanical parts are involved, remote support technology enables computers to be ? updated…diagnosed and repaired? by linking them to manufacturers support centers via telephone lines. The US earthmoving equipment manufacturer Caterpillar, which focuses on product serviceability – products that are easy to maintain and repair- is using similar approaches. This has led them to develop products, which can be remotely monitored so that maintenance can be performed before fault occurs. • Online Support : Telephone advice on products is a major element of customer support in many industries. Product experts give online consulting to customers to help them use products more efficiently or, sometimes to trace the cause of fault (troubleshooting). Whenever problems can be solved over the telephone, costs are much lower than an engineer having to visit the customer site. Online support is particularly strongly utilized for software products (software support). For example, companies such as Microsoft have invested significant resources in telephone centers and support costs are typically 6 percent of revenues in the software industry. Many software products can now be remotely configured, so that they more exactly match customer requirements – for example, Microsoft‘s Windows 95 product has this capability. • Warranty : Manufacturers of most products offer warranty and, in some markets such as automobiles, manufacturers may try to gain a competitive advantage by offering longer warranty periods. Warranty reduces the financial risk of owning products and therefore it is an important element of customer support. Over the lifetime of product, support costs may be greater than the initial purchase price. In the computer sector these costs are referred to as cost-of-ownership and ?the costs of buying and operating computer hardware for the office is
6
rather like an iceberg – most of them are hidden?. Consequently, as products have become more complex and support costs have increased, customers have started to demand more economical and effective support. To reduce the risk of expensive repairs, many manufacturers offer customers the possibility to purchase extended warranty. However, in the domestic appliance sector, manufacturers have been accused of charging excessively for this cover. • Upgrades : Offering customers the chance to enhance the performance of existing products can be an important aspect of support. For example, computer manufacturers offer upgrades because they increase the working lifetime of products and can be a significant source of revenue. Original equipment manufacturers have a competitive advantage in this business because they normally have records of where equipment has been sold which could benefit from upgrading.
7
INDIAN AUTOMOBILE INDUSTRY The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5 million each year. The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%.Commercial vehicles and three-wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has a turnover of more than USD $35 billion and provides direct and indirect employment to over 13 million people. The supply chain is similar to the supply chain of the automotive industry in Europe and America. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. With a high cost of developing production facilities, limited accessibility to new technology, and increasing competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, India's increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%.Hyundai Motor India Limited and Mahindra and Mahindra are focusing expanding their
8
footprint in the overseas market. Hero MotoCorp is occupying over 41% and sharing 26% of the two-wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three-wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy. The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilizing manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles.The Indian market offers endless possibilities for investors.[19]
Indian Automobile Export market
India is a very favorable market for small cars be it production, sales or export. Since the Indian automobile industry is the largest manufacturer of small cars companies like Hyundai and Nissan Motors export about 2,40,000 and 2,50,000 annually. India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Indian automobile exports registered a 22.30 percent growth in the year 2009. The growth trend was as follows: Two Wheelers- 32.31 percent, Commercial Vehicle - 19.10 percent and Passenger
9
Cars grew by - 19.10 percent.
Key automobile manufactures in India
? ? ? ? ? ? ? ? ? ? ? ? ? ?
Maruti Udyog General Motors Ford India Limited Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motors India Limited Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Limited
10
CARS IN INDIA - THEN AND NOW
Earlier, the only cars that were shining on the Indian roads were Ambassador and the Premier Padmini. Locally assembled Fiat 1100 was Premier Padmini, where as Ambassador is a replica of the Morris Oxford – an old British car. But now we have so many makes and models that it is very difficult to remember them all. It was in the year 1983, a joint venture between the government and Suzuki Motors of Japan that paved the way for a renaissance in the Indian automobile sector and gave birth to Maruti Suzuki 800 from the hatch back segment. And from then onwards there was no looking back for the Indian car industry. Today India is the second largest two-wheeler market, the fourth largest commercial vehicle market and eleventh largest passenger car market in the world. By 2016, India is expected to reach 6th position in passenger car. Now we have so many foreign car makers pouring in with different new, attractive and luxurious models to meet the growing demands for cars, these car manufacturers have set up their base in India. Name of such car makers are – Audi, BMW, Chevrolet Fiat, Ford, Honda, Hyundai, Mahindra, Mercedes-Benz, Mitsubishi, Skoda, Suzuki, Toyota, Volkswagen, and Volvo. Some of the makers like Ford are planning to make India a regional hub that will allow exports of both small cars as well as engines. There is a immense competition among the car manufacturers to position number one in the Indian auto market. Every car makers are compelled to come up with more innovative designs and technology to meet the customer‘s demands and needs. Unlike earlier, India is now car literate and understands the concept of a car, its design, technology and performance and as a result their expectation have soared the higher level and car manufacturers are grinding their tooth to satisfy their needs. With growing economy and disposable income, it has become much easier for car enthusiast to take home their dream car. Across the entire segment the demand for cars is high and financial firms are offering easy to pay finance schemes that have added an extra cream to the car sales. It is not just the new car market that is booming up, the used car market is also growing in a big way with authorised second-hand car showrooms. More than a necessity, a car has become a status symbol. With the advent of new and unique trends in the automobile sector in India, we will have to wait to see if it is going to be
11
flourished further. It also has to go a long way to transform the mobility needs of the ordinary Indians.
12
Maruti Suzuki is leader by far, but the No 2 spot in the Indian passenger vehicles could be anybody's game in the next couple of years, with at least four carmakers in the race for that position, reports ET.
In four months of the current fiscal - May, June, September and October - Mahindra & Mahindra (M&M) made a unique breakthrough in the Indian passenger vehicles space: it sold more vehicles in these months than the country's third largest carmaker Tata Motors, buoyed in the main by explosive growth in demand for utility vehicles.
For the overall seven months till October 2012, however, Tata Motors is still No 3 in terms of sales volumes. But the gap at the top is narrowing. Although Maruti Suzuki is way ahead of the pack for now, it's the No 2 position currently held by Hyundai that is up for grabs. The Korean carmaker for its part has its own strategy to keep the challengers at bay (see story alongside) even as Tata Motors and M&M attempt to pile on the pressure. They aren't the only ones. The Japanese troika of Toyota, Honda and Nissan appear to be finally getting it right on Indian soil, scoring rich gains in the April to October period of 2012 over a year ago. Toyota and Honda have upped their share by 0.7% each to 6.4% and 2.9% respectively , with Nissan gaining another 0.6%, even as the Detroit giants and Volkswagen ceded some ground in this period over the first seven months of the previous fiscal period. "As the market grows and carmakers expand their product line and distribution network, there will be some inevitable changes in share of the market leaders with some growing faster than the others," says Rakesh Batra, national leader (automotive ), Ernst & Young. Sales are still sluggish in a market that's reeling under the impact of an economic slowdown, but the competitive landscape couldn't be more exciting. Perhaps that's what persuaded General Motors honcho Karl Slym to make the trip from China back to India to head Tata Motors. If there are analysts and auto aficionados out there who reckon that Tata Motors is the easiest of preys in the pack thanks to its perceptibly staid product range, Slym was quick to indicate that the Indica and Nano maker means business. Soon after taking charge in October, Slym told journalists: "We see ourselves (emerging) as a strong No 2 player and that is my vision for the short to medium term; and we want to become No 1 in the long term." Tata Motors clearly needs a game changer to pull ahead. In the
13
recent past, it hasn't had any launch that could set the Ganges on fire, which explains why its share is stagnating at a little over 13% for the past three-and-half years. A competitively priced diesel version of the Nano - which is expected in 2013 - may be just what the doctor ordered. "Currently Tata Motors in not a high volume player in the passenger vehicle segment. If the (recently-launched ) new Indica eV2 and the Nano diesel take off, there will be a significant jump in market share," said a person aware of the launch plans of Tata Motors (the company's spokesperson did not comment on a specific question pertaining to market share that was a part of an email questionnaire).
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Maruti Suzuki India Limited
Type Traded as Industry Founded
Public BSE: 532500 NSE: MARUTI Automotive 1981(as Maruti Udyog Limited)
Headquarters New Delhi, India Key people Products Revenue Net income Employees Parent Website Shinzo Nakanishi, Managing Director and CEO Automobiles 37,522.4 crore (US$7.61 billion) (2010-11) 2,288.6 crore (US$464.13 million) (2010-11) 6,903 Suzuki Motor Corporation marutisuzuki.com
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PROFILE OF MARUTI The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it 'To Munsiyari on a Maruti 800', Uttarakhand Himalayas Maruti Suzuki plant in Manesar Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. Maruti Suzuki has two manufacturing facilities in Haryana, one each at Gurgaon and Manesar, with a combined manufacturing capability of over 1.25 million vehicles per annum, which is much beyond the installed capacity of 1 million vehicles. Gurgaon Plant The Gurgaon facility contains three fully integrated plants with a combined installed manufacturing capacity of over 700,000 vehicles per annum. It also has a state-of-the-art K-series engine casting plant with a capacity of 7.80 lakh engines per annum. Manesar Plant The Manesar facility was started in February, 2007 and has one plant with a capacity of 300,000 vehicles per annum. Two more plants are presently under construction at Manesar.
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R & D Capabilities The Company is gradually enhancing its R&D capabilities. It has over 1,000 R&D engineers. The R&D team is working closely with SMC engineers on new product design and development. It has also initiated work on setting up a test course for R&D purposes at Rohtak, Haryana. Supplier base The Company has worked through the year with its suppliers to develop new products, refresh existing ones and achieve higher localisation levels to reduce costs. As on 31st March, 2011, the Company had a supplier base of 260, including 19 joint venture companies where the Company holds a strategic equity stake.
Domestic sales and service network Over the years, the Company has expanded its sales and service network to cover the length and breadth of the country. Amongst car manufacturers in India, Maruti Suzuki has the largest sales and service network. As on 31st March 2011, it had 933 sales outlets in 668 cities and 2,946 service workshops in 1,395 cities. The service network of the Company includes dealer workshops, Maruti Authorised Service Stations (MASS's), Maruti Service Masters (MSMs) and Maruti Service Zones (MSZs). Besides selling and servicing vehicles, the Company provides its customers services like automobile finance, genuine spare parts and accessories, extended warranty and certified preowned cars. The Company had 353 True Value pre-owned car outlets in 208 cities as on 31st March, 2011.
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Export sales and market Maruti Suzuki's first export assignment was a batch of 500 cars to Hungary in September, 1987. Since then, the export portfolio of the Company has been consistently expanding. In the reporting year, the Company exported to 78 countries in Europe, Asia, Latin America, Africa and Oceania. In 2010-11, the Company's export sales stood at 138,266 units; 42% of the sales came from the European markets. Cumulatively, the Company has exported 863,380 cars.
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AWARDS ? ? ? ? Declared Business Standard Company of the Year 2011 Ranked No.1 in JD Power Sales Satisfaction Index (SSI) Study 2010 Ranked No.1 in JD Power Customer Service Index (CSI) Study 2010 for the 11th time in a row Awarded the Best Automobile Manufacturer of the Year 2010 and the "Hall of Fame" award for single handedly changing the face of Indian automobile Industry by Car India ? ? ? ? ? Ranked among the top 10 "Most admired companies" from India by Wall Street Journal Bagged "Manufacturer of the Year" award for the Company and "Engine of the Year" award for K-series engine at CNBC-TV18 Awards 2011 Won National HRD Network Trailblazer Award 2010 for HRD Excellence Received Significant Achievement in Sustainability award in CII-ITC Sustainability Awards 2010 Won the NASSCOM & CNBC TV 18 IT User Award
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First advertiser from India to be awarded for the digital campaign 'Sports Sponsorship goes mobile' by Global Mobile Marketing Association Asia Pacific and the Global Awards
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Received Gold at the Indian Documentary Producers Association (IDPA) for the best edited television commercial for theSX4 'After You' advertisement Won Bronze in the Internationalist Awards for Innovative Digital Marketing Solutions for the K-serial campaign on Ibibo.com Corporate Campaign "Kitna Deti Hai" rated amongst the best campaigns of 2010 by CNBC-TV18's programme on Advertising & Marketing adjudged as the Best TV Commercial (4-wheelers and 2-wheelers combined) by NDTV Car and Bike Awards WagonR won Pitch India Top Marketer Award 2010 for marketing campaigns
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VALUE - CHAIN ANALYSIS (PORTER)
The importance of customer service will be more recognized when Micheal porter (1980) considers it as a parameter for his value – chain analysis model that make margin for company. According to this analysis, which has shown below Figure, all the activities of the entity are mapped into a value arrow. The right side of the arrow represents total value created by the organization; in a competitive market, that is what customer are willing to pay, i.e. revenue. To create those values, costs are incurred; the difference between revenue and costs is the margin. To increase margin, the enterprise can, for example increase value for customer (primary activities). Generically, primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and continuing service.
Value Chain of Maruti Suzuki
The term value chain was coined by Michael Porter. The value chain is a comprehensive set of activities that are required to bring a product from a concept stage to marketing and consumption of end products. In competitive terms, value is the amount buyers are willing to pay for what a firm provides them. A company is profitable if the value it commands exceeds the costs involved in creating the product.
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Porter distinguishes between primary activities and support activities. Primary activities are directly concerned with the creation or delivery of a product or service. Each of these primary activities is linked to support activities which help to improve their effectiveness or efficiency. Primary activities at Maruti Suzuki MARKETING AND SALES Provide means by which buyers can purchase the product and inducing them to do so, such as advertising, promotion, sales force, quoting, channel selection, channel relations, and pricing. Maruti‘s marketing objective is to continually offer the customer new products and services that: 1. Reduce the customer‘s cost of ownership of our cars; and 2. Anticipate and address the customer‘s needs and preferences in all aspects and stages of car ownership (MARUTI SUZUKI refers to this as the ?360 degree customer experience? ? Maruti Suzuki has been aggressively cutting prices of its models. The rationale behind the price cuts is the focus on offering new upgraded vehicles at a low price. ? Maruti Suzuki offers a two-year warranty on all the vehicles at the time of sale. The dealers are required to address any claim made by a customer, in accordance with practices and procedures prescribed by MARUTI SUZUKI, under the provisions of the warranty in force at that time. ? MARUTI SUZUKI also offers an extended paid-warranty program marketed under the brand, ?Forever Yours? for the third and fourth year after purchase. The extended warranty program is intended to maintain the dealer‘s contact with the customer and increase the revenue generated from sale of spares, accessories and automobilerelated services. An effort is made during the period of the extended warranty to encourage the customer to exchange his existing. ? ?Maruti car for a new Maruti car or upgrade to a new Maruti car?. ? True Value Solutions Limited (TVSL), which was incorporated on January 14, 2002 as a wholly owned subsidiary of Maruti, provides value-added services to owners and users of motor vehicles on matters relating to manpower services with regard to recruitment, training and development. The company also intends to promote the
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business in the areas of pre-owned cars, lease and fleet management, finance and insurance.
Sales network ? MARUTI SUZUKI has the largest network of dealers amongst car manufacturers in India. Sales network is linked with the MARUTI SUZUKI through the secure extranet based information network. ? The sales of spares, accessories and Automobile related services such as insurance and finance serve as additional sources of revenue for the dealers. ? The availability of these related products and services at sales outlets also helps to attract customers to the outlets and promotes sales of the cars. ? MARUTI SUZUKI dealers provide services to customers such as pre delivery inspection of vehicles, sales of cars, after sales service, supply of spare parts and other services that promote sales of cars within the territory for which they are appointed. ? The performance of the dealers is followed and improvements are suggested frequently. In order to assist the dealers in enhancing their performance and capabilities, MARUTI SUZUKI has introduced a concept of ?Balanced Scorecard?. Using this tool, the performance of a dealership in several areas of operations, including sales, service, spares and accessories, financial management and management systems is measured. Dealers who perform well on the ?Balanced Scorecard? are reward with a cash payment at the end of the fiscal year. The ?Balanced Scorecard? serves as an effective incentive for dealers to enhance their performance. Distribution network: Maruti Suzuki is one of the companies in India which has a huge distribution network. Today it has 802 dealerships across 555 towns and cities in India. To ensure proper after sales service Maruti Suzuki has 2,740 workshops (including dealer workshops and Maruti Authorized Service Stations) in 1,335 towns and cities. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India.
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SERVICE Aims to enhance or maintain the value of the product, such as installation, repair, training, parts supply, and product adjustment ? Over the last few years, the company strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers. These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers. ? There are more than 400 Maruti dealer workshops and more than 1,500 Maruti Authorized Service Stations, covering more than 900 cities in India. In addition, 24hour mobile service is also offered under the brand ?Maruti On road Service?. As a benchmark for dealers with respect to service quality and infrastructure facilities, MARUTI SUZUKI has launched service stations under the brand ?Maruti Service Masters or MSMs. ? MARUTI SUZUKI also has service stations on highways in India under the brand ?Express Service Stations?. To promote sales of spare parts and the availability of high quality, reliable spare parts for its products, spares are sold under the brand name ?Maruti Genuine Parts?, or MGP. These are distributed through the dealer network and through the authorized sellers of the spare parts. ? Many of the Service Stations are at remote locations where MARUTI SUZUKI does not have dealers. Some of these Service Stations are integrated into the sales process in order to increase sales of the cars and related products and services such as spares and accessories, insurance and financing. ? In recent years, the Company has used IT to enhance interface with the customer. It has deployed a world class Dealer Management Solution across its vast network of dealers throughout the country. The solution has helped dealer managements to access a wide range of information about their operations, as also customer satisfaction and feedback.
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KEY INITIATIVES
? Car pickup & delivery facility for women car owners ? Setting up "Express Service Bays" & "2 - Technician Bays" As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2- Technicians Bays. These are done for customers who are hard pressed for time. ? Mega Camps The company aggressively conducts 'Mega Camps' throughout the country round the year. Activities undertaken during a mega camp include complimentary car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc. ? Service at your Door Step through Maruti Mobile Support Another unique initiative is the door step service facility through Maruti Mobile Support. Maruti Mobile Support is a first of its kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable. ? Car Safety device: Immobilizer The company used technology to meet customer needs and even delight them. Following feedback that the company's cars were more prone to theft owing to their resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars. ? Complete car needs The company's effort of providing all car-related needs -- from learning to drive a car at Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the existing car for a new one -- under one roof at dealerships also enhances customer satisfaction
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? The Low Cost Maintenance Advantage A car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.
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BUSINESS STRATEGY OF MARUTI They intend to continue to focus on the small car segment, while offering products in most segments of the Indian passenger car market. They aim toachieve their principal objectives by pursuing the following businessstrategies: Maintain and enhance their product range: They intend to utilize Suzuki‘sexpertise in small car technology to produce new variants of their existing models and to upgrade their products with contemporary technology and features. Increase reach and penetration: They plan to continue to utilize their extensive sales and service network to increase the reach , in terms of geographical spread, and penetration, in terms of sales volumes, of their products across India. Increased availability of automobile finance: They continue to seek opportunities to expand the size of the Indian passenger car market, especially in the small car segment, through facilitating easy availability of automobile finance. To that end, they have recently entered into an agreement with testate Bank of India. Secure repeat purchases by offering a “360 degree customer experience” :On the basis of their belief that securing repeat purchases from an existing customer requires less expenditure than acquiring a new customer, they aim to provide customers with a ?onestop shop? for automobiles and automobile-related products and services. Continue to benchmark their manufacturing capabilities: They plan to continue to benchmark our manufacturing capabilities with the most efficient car manufacturing facilities of Suzuki and its subsidiaries. Continue to reduce costs to offer more competitive products: Cost competitiveness has been, and continues to be, central to their strategy as the leading manufacturer in the small car segment to expand the size of the
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market by offering competitively priced, high quality products. Thecomponents of this strategy are: •Higher levels of localization •Vendor participation in cost reduction •Cost reduction on warranties •Reduction in initial investment cost •Reduction in number of vehicle platforms •Achieve further cost reduction through higher productivity Lower cost of ownership: Through their business strategies, they seek to reduce the consumer‘s cost of ownership of their cars, which comprises the cost of purchase, the cost of fuel and maintenance, including spare parts and repairs, during the life of the vehicle, insurance, and resale value
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AFTER SALES SERVICE OF MARUTI SUZUKI INDIA LIMITED The country‘s largest car manufacturer, Maruti Suzuki India (MSIL), has initiated its largest service network expansion drive this financial year since its inception. In the course of the year, it intends to add 200 outlets to cater to demand across sectors. “After-sales service availability is a critical deciding factor while choosing a car. We intend to be within 25 km of customers by the end of the current financial year,” informed Pankaj Narula, executive officer (service), MSIL. MSIL has 2,855 service centers across 1,363 cities. The number is set to cross the 3,000-mark by the end of 2010-11. The company also has customers in 2,900 talukas and 70 per cent of these have been covered under their rule of a service station every 25 km. As of date, the average distance to the closest MSIL service station in the remaining areas is 35 km. ?No company can fight competition on price. You need to have the right product, di stribution and service network to grow,? said Arvind Saxena, director and board member (marketing and sales), Hyundai Motor India (HMIL). To this end, HMIL has firmed up plans to open 130 additional facilities to service customers in 2011. This would increase the number of service points for Hyundai cars to 757. Toyota, set to foray into the intensely competitive small car segment with the Liva in April next year, is working on doubling its sales and service centers by the end of this year. Sandeep Singh, deputy managing director (marketing), Toyota Kirloskar Motor, said: ?Wordof-mouth publicity plays an important part in selling vehicles in the country, which depends on customer experience of the products and facilities we offer. Toyota products are known for their quality; cost of ownership is low. We intend to double sales in 2011, and to service the 150,000 cars we hope to sell, we are rapidly expanding our after-sales facilities.? TKM had 97 sales and service centers last year, which would increase to 150 by the end of this year. Of this, 135 centers would have workshops for maintenance activities. Among others, Toyota has developed a new dealership management system, which would enable the company to maintain a database for all its customers across the country.
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?When a customer approaches any Toyota dealership for maintenance, his record would already be available with us. We would be able to offer quality service within the shortest time possible. Along with the Etios, we have also introduced an ?Express Maint enance' service, in which we give customers an assured delivery within 60 minutes. This is a unique initiative taken by us to take care of our growing customer base,? said Singh.
AFTER SALES SERVICES OFFERED BY MARUTI I] Car pickup & Delivery facility for women car owners Quote Unquote: "The study finds that vehicle pickup and delivery before and after service has a strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their after-sales service experience, compared with customers who do not receive this service...." II]Maruti True Value Unique advantages: * India's largest certified used car dealer network * 358 outlets in 210 cities and growing * All car related services under one roof * professionally trained manpower * Complete peace of mind
Maruti True Value business expands the family of Maruti customers, providing reassurance to existing Maruti customers about resale of their cars and further emphasizes Maruti s Commitment towards enhancing customer satisfaction by continuous association during the vehicle ownership life cycle.
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No one knows your Maruti car better than Maruti - based on this premise, Maruti chanalises its expertise to ensure that transactions in pre owned cars are transparent and fair. Through that, the company endeavors to extend the relationship and emotional connect that it enjoys with the customer.
True Value has transparent and fair evaluation process, which is currently missing in the largely unorganized market for pre-owned cars. Maruti True Value processes and systems ensure that the seller gets the right price and is paid promptly.
Under True Value, the seller has the option to be paid in cash /cheque, or get a True Value car in exchange or a brand new Maruti Suzuki car in exchange. True Value category cars bought by Maruti True Value dealers are taken to state-of-the-art workshops.
True Value Category cars are refurbished in state of art workshops using Maruti Genuine Parts and by skilled technicians. These cars are then sold through maruti True Value outlets.
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As a mark of confidence, and to provide reassurance to customers, every vehicle bought under Maruti True Value is inspected and certified by Maruti Engineers and the Car carries a one-year warranty and three free services. Convenient finance options are also offered to buyers of Maruti True Value cars
III] Maruti Car Driving School MDS offers variety of courses to meet customer requirements. They may choose among our courses based on their: Training requirements
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Whether they need comprehensive training from the scratch, or they need to gain confidence while driving under able guidance, or they need to gain knowledge related to road safety, driving and traffic from reliable instructors, or
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if you want to learn driving before purchasing or upgrading to a new car Time MDS offers courses ranging from 2hrs to 30 hrs. Based on training requirements and availability of time, customers may choose any course. Vehicle Choices MDS has almost all the models in its stable to offer for practical training.
IV]Maruti Countrywide Loans Maruti Countrywide was set-up when GE Capital, HDFC and Maruti Udyog Limited formed a captive finance company in 1995. A professionally managed company we share the ideals and work culture of the parent companies. Our prime objective is to cater to the needs of Maruti car buyers by offering innovative finance schemes for the purchase of Maruti cars. Citicorp Maruti Finance Citicorp Maruti Finance Limited was formed when Maruti joined hands with Citibank in May 1998.
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Located in 52 cities we are the first company that provides services to finance the purchase of secondhand cars nationally. We also offer a wide range of flexible and customised financing options at affordable rates to individuals buying a Maruti car. Maruti Finance To bring you competitive financing, we have launched Maruti Finance. It is available across the states in India. Maruti has tied up with 5 finance companies to form a consortium. This consortium comprises Citicorp Maruti, ICICI Bank, HDFC Bank, Kotak Mahindra and Sundaram Finance. best interest rate Maruti Finance offers the best rates of interest. The installment schemes are designed to suit your convenience and other requirements. value addition Extended warranty: Maruti Finance gives you the privilege of extended warranty that goes up to four years! This means four years of hassle-free maintenance. You can get up to 30% discount on extended warranty under Maruti Finance. Loans for Insurance and Accessories Loans for insurance and accessories are built into the EMI's, keeping the whole deal simple and hassle free. So if you haven't already made up your mind, just walk into an authorised Maruti dealership for the best cars and best finance options. To find out more about financial schemes and services from our Joint Ventures and Dealers, and about the new SBI car loans, visit the links below. The country's largest bank and the largest car maker have joined hands to make affordable car finance available to more and more people across the country. The mega alliance makes car loans available at lower interest rates to a wider section of people, with transparent terms and conditions. It is supported by the unmatched combined network of SBI branches and Maruti outlets. The Unbeatable Advantages of SBI-Maruti Car Loans
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Two market leaders in their respective industries with trusted brand names. Lowest interest rates No processing fees or hidden costs to ensure transparency Car loans available for diverse categories of customers including government employees and agriculturists
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More loan amount available as it is extended on the basis of the car's on-road price, not ex showroom price.
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Longer loan repayment period -- up to seven years
V] Service Centers: To reach our customers, we have built a strong sales network of 933 outlets spread over 668 towns and cities. We provide maintenance support to customers through 2946 workshops spread over 1200 towns and cities.
NETWORK EXPANSION
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NETWORK EXPANSION (NOS.)
AS ON 31ST MARCH, 2010
AS ON 31ST MARCH, 2011
INCREASE
Sales outlets
802
933
131
Cities covered by sales network 555
668
113
Service stations
2,740
2,946
206
Cities covered by service network
1,335
1,395
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Maruti Driving Schools 83
166
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In these competitive times the challenge is to keep inventing newer ways of doing things to keep the customers in your fold.
Over the last few years ,the company strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers. These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers. The company has retained its competitive edge by offering high quality products. In the field, the products are supported by rapidly expanding networks. The company has diverse networks for new cars, spares, service, pre owned cars and so on, and all of them were in expansion mode last year to enable the company get closer to the customer.
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VI}Servicing customers 24X7 ..... 365 days.... The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 8th time in a row.
The award mirrors the company's commitment towards "Customer Obsession".
VII] Setting up "Express Service Bays" & "2 - Technician Bays" As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2- Technicians Bays.
These are done for customers who are hard pressed for time. Both the initiatives undertaken in this direction, have helped improve customer interface and also helped increase the productivity and capacity of existing workshops. VIII}Car Safety device: Immobilizer The company used technology to meet customer needs and even delight them. Following feedback that the company's cars were more prone to theft owing to their resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars. Complete car needs: The company's effort of providing all car-related needs -- from learning to drive a car at Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the existing car for a new one -- under one roof at dealerships also enhances customer satisfaction.
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IX] Mega Camps
The company aggressively conducts 'Mega Camps' throughout the country round the year. Activities undertaken during a mega camp include complimentary car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc.
Apart from mega camps workshop camps like A/C checkup camps, PUC and general checkup camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of customer connect initiatives. Maruti suzuki presents MEGA EXCHANGE MELA and MONSOON FREE CHECK UP CAMP Maruti suzuki presents MEGA EXCHANGE MELA and MONSOON FREE CHECK UP CAMP Maruti suzuki presenting SPECIAL OFFER up to Rs.90,000/- + Best Resale value + Special Savings man more Buy a RITZ get a discount of Rs.45,000/Buy Wagon-R Maruti Suzuki and get a discount of Rs.45,000 with insurance Buy Zen estilo, you would get Rs.50,000 with insurance Buy Maruti Suzuki‘s alto you can avail free insurance plus a discount of Rs.45,000 Buy a A-star and avail discount of Rs.45,000/Buy Omni and get Rs.20000/- Discount Visit for FREE Check-up Camp and avail 3% Discount on spare parts & 10% on Labours HURRY! Limited Period offer...
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X]Service at your Door Step through Maruti Mobile Support or Maruti On road Service ( MOS) Another unique initiative is the door step service facility through Maruti Mobile Support.
Maruti Mobile Support is a first of its kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable. Even with the most stringent quality measures, complex machines like cars can sometimes malfunction. Just call our 24 Hour Maruti On-road Service (MOS) centre during an emergency and help will be on its way to you.
The MOS ensures:
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Round-the-clock services in most of the cities. A computerized call-monitoring system dispatches a mobile MOS van to you at the earliest.
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All MOS vans are manned by qualified Maruti Authorised Dealers / MASS technicians who are trained by Maruti in problem diagnosis.
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You are charged only Rs.100 on labour and spares. The charges do not apply provided vehicle is under warranty and the defect is covered under warranty. For detailed warranty policy, kindly refer to owner's manual provided with the vehicle.
XI]Maruti Auto Card Maruti Suzuki Loyalty Card is a unique loyalty reward program designed exclusively for you - the owners of Maruti Suzuki Car. The program is loaded with powerful features and offers you the best services along with exciting rewards and privileges. With this program you not only get rewarded on your spends but also on the contribution you make towards the ever increasing sales of Maruti Suzuki.
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So the next time whenever you refer your friends/relatives to buy a new Maruti Car or get your car serviced at Maruti Suzuki network just use your Maruti Suzuki Loyalty Card and get rewarded with high value Auto Points (One Auto Point equals 1 rupee in value).
This is not all. You get an attractive exchange loyalty bonus of 3000 Auto Points when you exchange your existing Maruti Car with a new one. To maximize the benefits on the Loyalty Card, Maruti has partnered with State Bank of India - India‘s leading and most trusted bank. Maruti & SBI are both leading brands, and have consistently spelt trust and quality in all their product offerings for the Indian consumer
XII]One Stop Shop for All Car Needs!
With the condition of Indian roads getting poor every single day, there is a requirement of a car that delivers efficiently and looks stunning also. Because of the mismanaged traffic and bad Indian roads, the people daily face many problems and are unable to enjoy the car ride. Keeping all these problems in mind, Maruti Suzuki Limited has introduced a car which keeps in mind all the requirements of a consumer. With the launch of its new car Estilo, Maruti Group has played a winning bet and has brought a car with substance to all. The need of hour is a car that can tackle such grueling conditions and at the same time delivers the maximum pleasure of driving with utmost comfort and convenience. To address all the needs of the consumers, Maruti Suzuki Limited has come up with their all new Estilo. The car has been intelligently engineered and uniquely designed to suit the needs and demands of the Indian customers. Maruti Suzuki Estilo comes with a shorter wheelbase, high ground clearance, minimum turning radius and compact dimensions- all of which makes it suitable to run on the Indian roads. The wheelbase is 2360mm while the minimum turning radius 4.6m. Wheelbase is the distance between the front tire & the rear tire and the lesser wheelbase helps the car in taking the faster and sharper turns. This high ground clearance of Estilo is highly beneficial for all the consumers and people driving the car. Maruti Suzuki Estilo has a high ground clearance of 165mm which ensures the ideal functioning of the car even on a very bad road. Estilo is the best car to opt in the whole A2 segment of cars. Maruti
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Suzuki Estilo does not burn a hole in the pockets of the consumers. It is one of the most desired cars of the whole automobile industry. XIII]Customer support Customer Care Number
1800 1800 180 (BSNL/MTNL lines) Toll Free
Chargeable Number :9910202020 Contact Maruti Suzuki Email Online [email protected] Contact Online You can fill online contact form Write to Maruti Maruti Suzuki India Limited Nelson Mandela Road(NM Road), Vasant Kunj, New Delhi 110 070 Board No.46781000 Fax : 46150275 and 46150276
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OTHER EVENT ORGANISED BY MARUTI :
MOTOR SPORTS
Maruti Suzuki has been actively promoting motorsports in the country for over a decade now. To popularize action sport, the Maruti Suzuki motorsport calendar is packed with exciting motoring events. Be it for a motorsport enthusiast, an amateur or a professional, there are events that offer the thrill and joy of motorsport to one and all. The events include Autocross, Treasure Hunt and professional rallies including Maruti Suzuki Raid-de-Himalaya, Maruti Suzuki Desert Storm and Maruti Suzuki Dakshin Dare. These events provide rallying thrills as well as promote safe driving habits.
For families, there are events like Women's Fun Drive and Treasure Hunt throughout the year, across cities. This year we will be organizing the fourth edition of Maruti Suzuki AutoCAD Young Driver contest, a nationwide search for India's best young driving talent. RIDE TO HIMALAYA The 14th edition of the Maruti Suzuki Raid-de-Himalaya, one of the most awaited motorsport events in the country is all set to be flagged off amidst huge fervor and excitement from Shimla on 6th October 2012.
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This year‘s the first competitive leg of the rally will start off from Shimla on 7th Oct 2012 and end in Leh on 12th Oct 2012 covering over 1,800 kms.
As many as 150 teams with more than 300 participants in four wheelers and 43 bikers will brave the inhospitable terrains and weather conditions of the Western Himalayas to compete for the top prize. The tougher route this year goes through some of the highest motor able passes and human settlements in the world. These include Darcha (3360 mts), Keylong (3440 mts), Leh (3524 mts), Kaza (3650 mts), Dhanka (3894 mts), Losar (4079 mts), Rumtse (4300 mts), Kunzum La (4551 mts), Komik (4587 mts), Pang (4600 mts) &Wari La (5313 mts)
Speaking on the occasion, Mayank Pareek, COO Marketing & Sales, Maruti Suzuki said, ?Maruti Suzuki Raid-de-Himalaya is an example of how country‘s leading car maker made it possible for motorsport to reach to masses and flourish in India. Around two decade back, when Maruti Suzuki entered the arena of motorsport, it was available only to a few people as niche sport. Gradually, the company has brought it within the reach of common motoring enthusiast, especially youth, through many motorsport events. The increasing attention that Maruti Suzuki Raid de Himalaya gets every year from across India and from abroad speaks of the popularity and success. With carefully chosen motoring routes and terrains, Maruti Suzuki Raid de Himalaya this year too is all set to test the man and machines, their abilities and endurance in the mighty Himalayas.?
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KEY SUCCESS FACTORS (1)The Quality Advantage Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters. (2) A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car. (3) Quality Service Across 1036 Cities In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best inservice experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. (4) One Stop Shop At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs. (5) The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most com45
petitive, and it is here where Maruti Suzuki shines. (6) Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. (7) Technological Advantage It has introduced the superior 16x4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuelefficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car.
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AFTER SALES SERVICES OF : TATA MOTOR Tata Motors has now come up with Tata Motors Service Edge, a widespread & extensive customer service enterprise. The company‘s service network covers 800 service centers located in 500 cities and towns of the country. ?Response in minutes, resolve in hours‘; ?Service with unmatched reliability‘ and ?Assured value for money‘ are the three core characteristics of this initiative.
Speaking about the this novel concept, Mr.Anupam Misra, President, Concorde Motors (I) Ltd said, ?The Service Edge initiative is a great stride in our path to increase our reach & support to our valued customers. At Concorde, we believe in customer focus. We will continually strive to delight our customers across locations through the Tata Motors Service Edge program.?
Response in minutes, resolve in hours: Tata Motors Service Edge will bring speedy assistance to customers when in need.
24X7 On-road assistance programme: In association with MyTVS, Tata Motors has launched a breakdown assistance programme and towing assistance across the country accessed through a toll free helpline (1800 209 7979) and serviced by a dedicated network of over 2,000 authorized service providers. Quick response is ensured within 60 minutes in city limits, 90 minutes on state or national highways and within 120 minutes on hilly roads and other places.
Rapid repair: Rapid repair is a cost effective, quick and specialized body repair programme offered across the Tata Motors dealership network. Small dents, scratches and such body jobs are attended with an assurance of the car delivered on the same day.
e-Service appointments: Through an online service appointment facility, customers can select a time slot, date and a dealer of their choice for servicing their vehicle. Customers can also list down on-line job orders based on the repairs required. Post the on-line registration, the respective dealership customer relations officer responds instantly and confirms the appointment.
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Speed-O-Service: Speed-O-service has been designed to offer quick repair service within 60 to 120 minutes using specialized manpower and infrastructure. Tata Motors can repair 6 vehicles per bay per day through this process, ensuring faster response and increasing service efficiency.
Service with unmatched reliability: The company is ensuring that problem diagnosis and the related solution is comprehensive.
Symptom based diagnostics: A state-of-the-art diagnostic system ensures quick and comprehensive check of the vehicle. At each dealership a technician has been intensively trained as Diagnostic Expert Technician (DET). They attend to challenging repair requirements on the basis of symptoms indicated by the customers.
Flying doctors: A pool of 10 on-call technical experts has been set up across the country for higher level diagnostics to address any issues where dealers & DETs need support.
Quality repairs: Under this programme each vehicle is subjected to standard quality checks to identify repair requirements not noticed or reported by the customer, ensuring that complete health of the vehicle is assessed, attended to and customers are apprised. Over 15,000 technicians are trained annually to provide quality service through 8 training centers across the country. The company plans to build a world class training centre in Sanand.
Assured value for money: Assuring value for money has consistently been a core attribute of Tata Motors‘ products and services. Tata Motors Service Edge further strengthens it. The company has standardised and regulated service & repair charges which are reasonable across the network.
Value care: The company offers customised maintenance plan for service, minor and major repairs including wear & tear with flexible payment options. The Value care plan covers labour, parts, consumables, and guarantees substantial savings through price protection against inflation and ensures appropriate resale value for the vehicle at the time of exchange. Thus, customers accrue huge savings on cost of maintenance over a period of time. Tata Motors’ Original Parts (TOP): Tata Motors is the only manufacturer in the industry to
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provide 1 year warranty on its genuine spare parts, which are trademarked as ?TOP‘. Available across all Tata Motors dealerships, the spare parts are competitively priced and customers can avail of the warranty if the parts are fixed in a Tata Motors authorised service workshop. Tata Motors has also designed various cost effective repair kits which further add value to customers.
Tata Motors Insurance: The insurance scheme offers convenience of on-line policy issuance & near cashless repairs facility across the Tata Motors authorised network. The industry-best depreciations on composite parts under Tata Motors Insurance provide substantial savings. The company plans to launch a zero depreciation cover policy in the future.
Extended Warranty: A protection against unforeseen breakdowns, the programme extends warranty benefits for up to 4 years or 150,000 kms, applicable to all Tata passenger vehicles. The ?Nano Secure Extended Warranty‘ allows Tata Nano customers to choose from an extended warranty of 12 months/40,000 kms or 24 months/ 60,000 kms.
Gold Club: It is a privileged 2-year membership programme offering priority services and attractive discounts. A customer can become a member of the Gold Club for only Rs. 499/-.
Concorde Motors, a 100% subsidiary of Tata Motors, has its service locations in Hyderabad, Chennai, Cochin & Bangalore operating with 12 workshops.
Customers can access the 24 hour helpline services through the following numbers : Bangalore – 9844007484, 9972633522, 9741311114 Hyderabad – 9959344400, 9866444000 Chennai – 9841877000, 9841022244 Cochin – 9287488888
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COMPARISON OF SERVICING OF TATA AND MARUTI
Experience of Servicing Tata Nano from Tata Motors By the end of 2011, Tata Motors had sent a letter stating that starter motor for Tata Nano can be replaced free of cost at their service centre because the company has noticed a manufacturing defect. I was lazily holding onto that notice until one of the Tata Motors service representative called to remind me. The lady insisted me to setup an appointment so that motor can be replaced else after 15 days, customers will be charged for replacement. When I informed that I am short of time to get the service done, the representative offered to let their driver pick up the car and if required drop the car after the service is done. On the set time, driver came to pick up the car. I chose to go with the driver to service station. At 11:00 AM, I was in the service centre. I had a few minor adjustments that needed to be done. I was told that the whole process would take 4-5 hours. By 7:00 PM service centre was ready with the car. At 7:00 PM, I heard the closing siren of the service centre. However, service representative offered me to take to test drive. After the drive, I suggested a couple of minor complaints and he willfully attended my complaints to my satisfaction. Customer satisfaction score was mandatory for every service performed and advisor was probably expecting excellent score on service. However, I was unhappy with the service not because of quality of service but because service had taken around 9 hours instead of promised 4-5 hours. I gave rating of 9 or more on all parameters when service advisor insisted on it. However, I gave a rating of 7 on timeliness and 8 overall when Tata Motors called on phone next day.
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The rating of 7 and 8 started a series of events. Service Centre in-charge for services called me whether my service was not done properly. Even Service Advisor called and asked how he may satisfy him if I am not happy with the service. Score of 7 or 8 was not acceptable to them and they really looked desperate to fix the problem. I realized that Service was done to my satisfaction except that it took longer than expected. I had forgotten that while it took so long, Service Advisor had worked overtime to mend my complaints. I had a firm belief after the service that feedback is taken very seriously in Tata Motors. Experience of Servicing Swift Dzire from Maruti Suzuki Instance 1 - Regular service Last month, my Dzire completed its one month and I was already feeling some creaking noise and observing that car was giving a lot of vibrations when passing over pot holes on the road. I took Dzire to Moti Nagar service station, the location recommended by sales representative who sold me this car. I had informed that I was feeling lot of vibrations and the creaking noise and I was assured that they will be minor loosening of bolts; bolts will be tightened and noise and vibrations will disappear. The representative sold me the body coating package that included Teflon coating, anti rust coating etc. I entered around 10:00 AM and I was out of the service station by lunch time at around 1:30 PM. After the end of service, I was asked pay for the coating package and consumables. I diligently paid and Maruti issued me a gate pass. At that time, I was looking for Service Advisor who was nowhere to be seen. On my way back home, I realized that creaking noise is still there and the vibration level has not changed a bit. I returned to the service centre and asked for Service Advisor. This time, Service Advisor came with me for a test drive. We returned to service centre and he fixed the back seat which was lose and might be causing creaking sound. I was assured that vibrations are like that in Dzire and the level of vibration in new car may not sustain now (is a month old car not new?) I was offered to go home and return if I notice the sound again. Creaking sound was still there although lot less frequent. I returned to service station and informed to the advisor. The advisor advised me to observe the car for a few days as it may take some time for seat to settle and the noise should disappear. I was not fully satisfied but I believed what I was told.
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Instance 2 – Repair of bumper A few days back my Dzire was hit from behind and I took the car to the same Moti Nagar service station. Three days later, I went to pick up my car in the evening. The car was dirty from outside. It had developed a few more nicks. The trunk (boot) that was not closing due to the accident still showed resistance in closing. I got the trunk lock adjusted although the adjustment is still not what I had in the new car (this is anyway just 1.5 month old car). I had to get those nicks touched up. My car was cleaned from outside and inside. I was not offered a test drive and I did not believe that test drive was required. On my way back, I realized that the dash board panel (where odometer, fuel level indicators display) was hazy with oil marks. I tried to clean the display with my hands and the oil spread further to block the view completely. I noticed from inside rear view mirror that back glass showed similar oil marks and floor mat were put upside down. I could not help but remember the instance when service advisor had adjust the outside rear view mirror by hand when there was a joystick to adjust the rear view mirror (this could disrupt the setting). I called the service advisor telling him that my car is still dirty. In response, he offered me to bring the car back to service station to get it washed. I was thinking, why couldn‘t washing be already done. Next day, when I thought of cleaning up my car, I found that the new duster that I had bought and I had put in the trunk was missing. I should have given a really low rating for core service activities (creaking noise still there, vibrations still present, trunk does not close as smoothly as it used to be) and additional service activities (car was not clean). However, feedback form is not mandatory for Maruti. Overall Comparison of Tata vs Maruti 1. None of Tata or Maruti overcharged me for their service. At least I did not feel so. 2. Tata took longer to service while Maruti was prompt in their service. Tata did not value much to promptness of service. 3. Tata took the responsibility of the quality of their service. On the other hand Maruti does not care.
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COMMON BETWEEN MARUTI, TATA, FIAT AND GENERAL MOTORS IN INDIA
It does duty in small cars like Maruti Swift, Ritz, Fiat Punto and Tata Indica Vista. It also powers sedans like Maruti Dzire, SX4, Tata Indigo Manza and Fiat Linea. Recently a utility vehicle in the form of Ertiga was added to its repertoire. And in the not too unforeseeable future, its expansion would include the likes of GM‘s van Enjoy, small car Sail and its sedan version, Premier‘s SUV Rio and possibly also Maruti‘s own SUV XA Alpha that was showcased in the January Auto Expo.
Fiat
In short, if a unifying force is needed in the competitive Indian automotive landscape, Fiat‘s award winning 1.3 litre multijet engine would win the coveted crown hands down. Arguably the most efficient small diesel engine around the world (Hyundai, Ford and Toyota may raise the mandatory objections), the engine was a result of joint collaboration between Fiat and General Motors and won the international engine of the year award in 2005 pipping in the process 60 other engines including Peugeot-Citroen and Ford‘s 1.4 litre diesel engine, VW‘s 1,4 litre FSI, Toyota‘s 1.4 litre engine that does duty in Etios, Liva and Altis and Di ahatsu‘s small 1.3 litre engine.
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Engine
Since then, almost 4.5 million engines have been plonked on to cars of various shapes and sizes across brands and continents and it remains one of the most preferred power trains among companies and consumers alike. A direct benefit to companies who have been borrowing it from Fiat is an obvious one. They are saved from investing billions of dollars into developing an engine that may or may not turn out to be as revolutionary. Further in the case of some Japanese companies like Suzuki and Honda, it is even more difficult as they are traditionally not well versed with the dynamics of diesel power train. But the impact of this engine on sales has been as diverse as the companies that use it. One would have expected that Fiat, as the main developer of the engine, would have made the best possible use of it in its own cars. Far from it, the Punto and Linea remain glorious duds in India.
The Italian firm’s joint venture partner Tata has done only slightly better. Indica vista and Indigo Manza are the company’s two bread and butter models in India but they are sluggish and noisy and do not exploit the capabilities of the engine.
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Swift
It is infect Maruti that has fared the best. In the Swift and Dzire, the engine has found a life of its own and performs even better than in the Punto and Linea. The impact is visible on sales as well. It is a lifeline that Maruti has dearly hung on to in its bid to retain market share in India. The Swift‘s recent bull run for example is largely on the back of the spurt in demand for its diesel variant that helped it overtake Alto and become the largest selling car in India in April. Suzuki does not have expertise in diesel technology and without the Fiat engine, Maruti would have found itself on the back foot. Today, the Swift and Dzire are Maruti and India‘s best selling cars and Ertiga looks set to join the list as well. Though GM was a partner in the development of the engine and retains equal rights to the engine, it has not introduced it in any of its cars till date. While that defies logic considering that the demand for diesel is no longer a recent phenomenon, the company would launch at least 3 cars with the engine this year — the hatch back Sail, its sedan version and the van Enjoy. Only time will tell whether it would be able to do justice to the engine or end up underutilising it.
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QUESTIONAIRY 1:- Do you have a four wheeler?
YES NO
20 5
Four Wheeler
Yes No
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Q – 2:- If yes, which company do you have?
Maruti Tata Hyundai Honda
8 4 6 2
company
9 8 7 6 5 4 3 2 1 0 Maruti Tata Hyundai Honda Maruti Tata Hyundai Honda
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Q – 3:- Which features of four wheeler affected your buying decision?
LOOKS/STYLE MAINTENANCE/MILAGE PICKUP/POWER RE-SALEVALUE PRICE AFTER SALES SERVICE
4 5 1 1 4 5
Features
LOOKS/STYLE MAINTENANCE/MILAGE PICKUP/POWER RE-SALEVALUE PRICE AFTER SALES SERVICE
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Q 4:- Are you satisfied with its performance?
FULLY SATISFIED PARTIALLY SATISFIED UNSATISFIED
5 9 6
Performance
FULLY SATISFIED PARTIALLY SATISFIED UNSATISFIED
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Q –5:- Are you satisfied with its after sales services?
YES NO
11 9
Satisfied
Yes No
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Q -6:- What major problems (Demerits) do you face with your car?
LOOKS/STYLE HEADLIGHTS HORN SEAT BREAKING SUSPENSION
1 2 4 3 1 5
Problems
LOOKS/STYLE HEADLIGHTS HORN SEAT BREAKING SUSPENSION
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Q –7:-Are you satisfied with its services quality?
YES NO
9 11
Satisfied with Services Quality
YES NO
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CONCLUSION Maruti has always been identified as a traditional carmaker producing value-formoney cars and right now the biggest hurdle Maruti is facing is to shed this image. Maruti wants to change it for a more aggressive image. Maruti Baleno has failed due to one of the major reasons being that customers could not identify Maruti with a car as sophisticated as Maruti Baleno. Maruti is looking forward to bring about a perception change about the company and its cars. Maruti started the exercise with the new-look Swift , and Suzuki's decision to pick India as one of the first markets for this radically different-looking car gave this endeavor a new thrust. Maruti has also changed its logo at the front grill. It has replaced the traditional Maruti logo on grill ?stylish ?M‘ with S‘. The major thrust in the facelift endeavour is with the launch of 1.3 litre Swift. It‘s a style statement from Maruti to Indian market.
Rise in petrol prices and growing popularity of other substitute fuels like CNG will be another threat to Maruti. There is also a threat to Suzuki from R&D investment by Toyota and Honda in Hybrid cars. Hybrid cars could run on both petrol and gaseous fuels.
There is a threat to Maruti models ageing. Maruti models like Maruti 800 which is in market for the last twenty years and others like Zen and Esteem which have also entered the decline phase are the other threats. Maruti is planning phasing out Zen in 2007 and there were rumors of phasing out Maruti 800 also. This all makes Suzuki to replace these brands with new launches . As Swift and Wagon R are replacing the Zen market. Maruti will have to keep on making modifications in its present models or its models will face extinction.
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List of References
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Aaker, D.A., & day, G.S. (1990) Marketing Research, 4 ed. Newyork: Wiley cop. Marketing Management, Phillip Kotler, (13th Edition) Times of India, News Paper Levitt, Theodore. ?After the sale is over,…? Harvard Business review 16 (1983): 8793.
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Parasuraman A., Customer service in business-to business markets: an agenda for research, Journal of business & Industrial marketing, volume 13 number 4/5, 1998 pp. 309-321
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Gronroos, C.(2000), Service Management and Marketing: A Customer Relationship Management Approach, 2 ed., Wiley, Chichester
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Websites
:- www.marutisuzuki.com :- www.wikipedia.com :- www.economist.com :- www.indiainfo.com
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