Customer Satisfaction Survey of Maruti Suzuki India Limited
YOGESH VERMA (6414) MBA 2ND SEM
PREFACE
This project report pertains to the making of a Training Report of M.B.A. curriculum. The PURPOSE of this project is to make the students to have thorough knowledge of the topics given to them. I learned a lot from the hard work I put in to collect information regarding the same, which would be of great use in my near future as a professional. Justification cannot be done to whatever I have learnt within a few pages but I have still tried my best to cover as much as possible about ³Customer Satisfaction Survey of Maruti Suzuki India Limited´ in this report. Being students of Masters in Business Administration, we need to be aware of the organizational internal environment. Consumers of Maruti Udyog Ltd. have been surveyed regarding Cars.
EXECUTIVE SUMMARY
The project studied by me in Maruti Udyog Ltd., was ³Customer Satisfaction Survey of Maruti Suzuki India Limited´. The Indian auto market is growing very fast and every car manufacturers are planning expansion for the Indian market. Moreover, the Cars in India is the latest attraction. India is already an export hub for cars for Suzuki and now Hyundai also moved its complete manufacturing base for cars to India. Presently models like i10, Getz and Santro are manufactured in India. The list of upcoming cars in India in this segment is Maruti Splash, Maruti Suzuki Servo, Maruti Suzuki Kizashi and many more. In the Cars, Maruti Suzuki already dominates by holding 53% of the share for cars in India.
ACKNOWLEDGEMENT
It is a great privilege for me to work with, Pa. I convey my sincere thanks to Mr.Bhuvnesh Sharma, Asst. Sales Manager, Hira Automobiles, Patiala who accepted me a trainee in their esteemed organization and gave me the opportunity to develop this project. I even thanks to my college for helping and giving guidance throughout. I am also thankful to all my colleague members who continuously helped and provided with some valuable information during the training period.
Yogesh Verma
MARUTI SUZUKI INDIA LIMITED
Maruti Suzuki India limited (MARUTI SUZUKI INDIA LIMITED) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki¶s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government on the lines organization of Japanese
managed
management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss.
HISTORY OF MARUTI SUZUKI
In 1970 , Sanjay Gandhi the son of Indira Gandhi envisioned the manufacture of an indigenous , cost effective , low maintenance compact car for the Indian middle class . Indira Gandhi¶s cabinet passed a unanimous resolution for the development and production of a people¶s car. Sanjay Gandhi¶s company was christened Maruti limited. The name of the car was chosen after a Hindu deity named Maruti Ltd. That time Hindustan Motors¶ Ambassador was the chief car and the company had come out with a new entrant the premier Padmini that worked slowly gaining a part of the market share dominated by the ambassador. For the next ten years the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. Sanjay Gandhi was awarded the exclusive contract and license to design, develop and manufacture the ³People¶s Car.´ These exclusive rights of production generated some criticism in certain quarters, which was directly targeted at Indira Gandhi. Over the next few years the company was sidelined to Bangladesh liberation war and emergency. In the early days under the powerful patronage of Sanjay Gandhi the company was provided with free land, tax breaks and funds. Till the end of 1970 the company had not started the production and a prototype test model was welcomed with criticism and skepticism. The company went into liquidation IN 1977. The media perceived it to be another area of growing corruption. Unfortunately Maruti¶s started to fly only after the death of Sanjay Gandhi, when Suzuki motors joined the government of India as a joint venture partnered with 50% share. After his death Indira Gandhi decided that the project should not be allowed to die. Maruti¶s entered into this collaboration with Suzuki motors. The collaboration heralded a
revolution in the Indian car industry by producing the maruti-800. It created a record of taking 13 months¶ time to go from design to rolling out cars from a production line. The production of Maruti-800 in 1983 marked the beginning of a revolution in the Indian automobile industry. It brought in the latest technology of that time more fuel efficiency and lower prices that led to the creation of a huge market for all car segments as the Indian, middle class grew in size. This in turn brought in more players in this segment. A number of auxiliary car parts making units were set up as more car manufacturers realized it was more cost effective to make their car parts in India rather than importing them. Maruti¶s major influence was in helping the component industry in the country because of its emphasis on localization and indigenization. As in the beginning that sector hadn¶t grown much Maruti¶s had to start dozens of joint ventures with Indian entrepreneurs. It got them from foreign collaborations that led to collaborations for other manufacturers so that over a period of time the whole component industry was able to upgrade itself and improve its quality who had given their income leading to major existing export potential vehicle components. It also brought in better methods of financing that allowed more people who given their income levels could not afford to buy a car on their own, to buy cars. It still remains the leader not only in the terms of market share but also in customer satisfaction surveys. It has consistently topped J.D. power quality surveys, including 2005. By the year 1993 the company had sold 1, 96,820 cars. By March 1994 it produced 1 million vehicles becoming the first Indian company to cross the 2 million mark in October, 1997 and rolled out 4 millionth vehicles as Alto-LX .Then it introduced Wagon-R followed by Swift . Swift has been a great success in the market .In 2007 Maruti came up with SX4 and Grand Vitara.Maruti Suzuki is
one of India's leading automobile manufacturers 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 Indian government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti suzukiindia limited. Maruti suzukiindia limited 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 notmanufactured by Maruti suzukiindia limited) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling in A2 segment. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, in India Hindu's lord Hanuman is known as "maruti", was associated to the Maruti 800 model.
BOARD OF DIRECTORS
Mr. Shinzo Nakanishi (MD & CEO)
Mr. D. S. Brar (Director)
Mr. R. C. Bhargava (chairman)
Mr. Keiichi Asai (Director)
Mr. Manvinder Singh Banga (director)
Mr. Tsuneo Ohashi (director)
Mr. Amal Ganguli
Ms. Pallavi Shroff
Current Products of Maruti Suzuki
1. 800 (Launched 1983) 2. Omni (Launched 1984) 3. Gypsy (Launched 1985) 4. WagonR (Launched 2000) 5. Alto (Launched 2000) 6. Swift (Launched 2005) 7. Estilo (Launched 2009) 8. SX4 (Launched 2007) 9. Swift DZire (Launched 2008) 10. A-star (Launched 2008) 11. Ritz (Launched 2009) 12. Eeco (Launched 2010) 13. Grand Vitara (Launched 2007)
MARUTI SUZUKI PRODUCTS
MARUTI PRODUCTS
MARUTI INSURANCE
MARUTI DRIVING SCHOOL
MARUTI GENUINE ACCESSORIES MARUTI TRUE VALUE
MARUTI FINANCE
OBJECTIVE OF THE COMPANY
Maruti¶s marketing objective is to continually offer the customer new products and services that: reduce the customer¶s cost of ownership of their cars; andanticipate and address the customer¶s needs and preferences in all aspects and stages of car ownership, to provide what they refer to as the ³360 degree customer experience.´ They sell ten models with more than 50 variants in segments A, B, C, and utility vehicle segment of the Indian passenger car market. Of these, they manufacture nine models and import the Grand Vitara as a completely built unit from Suzuki in Japan. Their models and variants are designed to address the changing demands of the market and are periodically upgraded in technology, styling and features. To take advantage of the brand recognition associated with their products, they retain the brand name of the product through various stages of product upgrades over time. For example, the version of the Maruti 800 brand currently sold in the market is a significantly upgraded version, in terms of technology, design and styling, of the Maruti 800 launched in 1983.
4Ps: Product Price Place Promotion
Product Strategy: Portfolio of 12 products Five product lines
Product Line A1 A2 A3 SUV C - Class
Products Maruti 800 ,Alto Zen ,Wagon ±R, Swift, A-star ,Ritz D ZiRE, Sx4 Vitara, Gypsy Omni, EECO
Price Strategy:The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti ± 800 is the lowest price car of this company. Alto, Omni, Wagon R, are also the low price car of the company, Zen & Esteem are the mid price car of the company. But Grand Vitara is the high price model of the company. The price of car is decided according to its product variety, quality, design etc.
Place strategy:y y y y 600 New car sales outlets covering 393 cities. 265 µMaruti True Value¶ outlets spread across 166 cities. 2628 Maruti Authorized Service Stations, covering 1220 cities. Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat
Suggested Place strategy:y y y y 400 new car sales outlets in next three years. S150 new true value shops in next three years. 1200 new Maruti Authorized Service Stations in next three years. Tie up with other distributors for Exports.
Promotion Strategy:Advertising j TV Ads j Print Ads & Radio Ads
SWOT ANALYSIS
STRENGTHS
j j j j j Bigger name in the market Trust of People Maruti suzukiindia limited Ltd. is the market leader for more than a decade. Has a great dealership chain in the market. Better after sales service
WEAKNESSES
j j j Exports are not that good. Lesser diesel models in the market compare to others Global image is not that big
OPPURTUNITIES
j j j j Great opportunities to go global with success of Swift and SX4 allover Introduction of more diesel models. The diesel car segment is growing Opportunity to grow bigger by entering into bigger car markets Already a market leader so great opportunity to be the king of market in every stage of industry
THREATS
j j j j Foreign companies entering market; so a bigger threat fromMNCs. To the market share, as many big names are coming in the industry There is hardly any diesel models Rs. 1 lakh ± Rs. 1.5 lakh car
CURRENT STRATEGIES FOLLOWED BY MARUTI SUZUKI
PRICING STRATEGY - CATERING TO ALL SEGMENTS
Maruti caters to all segment and has a product offering at all price points. It has a car priced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking for up gradation in his car. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Here is how every price point is covered.
Sl.No. 1
BRAND GRAND VITARA AT
VARIANTS MT AT
PRICE IN PATIALA (Rs.) 17,24,074 18,57,761
3
SX4
VXI
6,97,329
ZXI 4 MARUTI EECO 7 SEATER 5 SEATER 5 MARUTI SWIFT LXi
8,71,374 2,98,702 2,74,906 4,25,674
VDi ZXi 6 MARUTI WAGON-R LX
5,32,020 5,41,940 3,34,019
LXi VXI VXI (ABS)
3,66,038 3,90,359 4,21,578
7
MARUTI GYPSY
1.3L ST
5,22,429
HT 8 MARUTI ZEN ESTILO LX
5,47,788 3,28,407
LXI VXI
3,62,857 3,86,454
9
MARUTI OMNI
CARGO
2,21,923
CARGO LPG 10 RITZ LXI RITZ ZXI RITZ VDI LXI ZXI VDI
2,05,379 4,07,980 5,05,127 5,37,512
11
MARUTI ALTO
LX
2,65,605
LXI
2,88,601
12
MARUTI 800
STD A/C MPFI
2,17,269 2,34,365
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 MARUTI SUZUKI INDIA LIMITED 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 in-service 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 singlewindow 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 competitive, 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, swiftdzire, Maruti 800, Alto and Omni.
(7) Technological Advantage It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 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.
NEW INITIATIVES IN MARUTI SUZUKI LIMITED (one stop shop to meet all your needs)
In an effort to become a complete car company, Maruti has entered the car insurance business as well. It offers the customer all the advantages of settling insurance claims directly with any of the company¶s authorized dealers.Maruti Insurance is one of the most renowned car insurance companies in India. The company has ties up with Bajaj Allianz, National Insurance Company, Royal Sundaram, and New India Assurance. Car insurance policy of Maruti Insurance is a single solution to all your car insurance needs, which may include instant policy issuance to post accident repairs on near cash-less basis. Automobileindia.com furnishes detailed information on Maruti Insurance.
The Basics Features of Maruti Insurance:
Car insurance under Maruti Insurance has a few basic features. Automobileindia.com furnishes detailed information on Maruti Insurance. ?Maruti provides motor insurance for Maruti vehicles only, which excludes Third Party policies. ?Maruti Insurance is available to customers only through Maruti dealer network all over India. ?Maruti Insurance provides insurance for Maruti vehicles up to 7 years old. One of the biggest plus points of insuring under Maruti Insurance, the vehicle can remain under cover as long as it lasts. Advantages of insuring with Maruti Insurance: Maruti Insurance offers a number of advantages, which contributes to its immense popularity. Automobileindia.com furnishes detailed information on Maruti Insurance.
Maruti Finance offers the best finance packages to consumers across the entire Maruti range. The service is being extended across the country in a phased mannerMaruti is the leading company in the Indian passenger car market Maruti has come up with a number of innovations and Maruti Car Finance is one of the popular such option.As part of the Maruti car finance, the company has entered into tie-ups with leading banks and financial institutions in the country.Maruti provides for financing help with the State Bank of India (SBI), CitiBank, Kotak Mahindra Bank and a few othersIn addition to, Maruti Countrywide and Citicorp Maruti Finance are the two joint ventures of Maruti with the leading names like GE Capital and CitiBank that provides for financing and loan assistance for buying all categories of Maruti cars.
MARUTI GENUINE ACCESSORIES
A single point of contact,Hassle-free transactions,Emergency Assistance ,Virtually Cashless Repairs Post accident repairs and insurance support at any dealer workshop.Maruti Suzuki Genuine Parts and Accessories are priced very competitively and offer a customer best value for money and quality. Browse through the complete range of accessories and contact the nearest dealer for more details.
MARUTI TRUE VALUE
Maruti has taken its first steps in the pre-owned car business under the brand name of Maruti True Value. Using their technological expertise, network support and the experience they have gained in the last 18 years, the company ensures the customers gets great value and completes the transaction zero hassles.
.ANYTIME
MARUTI
Maruti Suzuki has also set up state-of-the-art call centers (operational in Delhi, Gurgaon, Mumbai, Chennai, Bangalore and Hyderabad) Branded Anytime Maruti, this 24 hour help-line clarifies all doubts and queries regarding Suzuki any time of the day or night. The toll free no. is 1800-1800-180.
USEFULNESS AND SCOPE OF THE STUDY
USEFULNESS OF STUDY
Increasing market share requires an understanding of customer and their satisfaction towards the product. Customer satisfaction survey of Maruti Suzuki India Limited leads to examine the efficient factor to excel in the market. The best way to establish revenue goals and sales quotas for products, territories or stores/branches is to base them on the true customer satisfaction within the area. With a realistic picture of customer satisfaction you can focus resources intelligently, maintaining a presence where you're strong and investing heavily where opportunity is greatest.
SCOPE OF PROPOSED STUDY
To make it more marketing sensitive and adaptive change. To formulate market future strategies based on knowledge acquired out of the serving. To upgrade the customer satisfaction relate to Maruti Suzuki India Limited.
RESEARCH METHODOLOGY
Market Research Project Title ± ³Customer Satisfaction Survey of Maruti Suzuki India Limited´
Project involves:
-Introduction about Maruti -Quantitative research -Awareness regarding the facilities provided by Maruti -Overall opinion about Maruti
Research Methodology:
The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data.
Research Objective:
To find the satisfaction amongst the customers of Maruti.
Research Design:
Detailed and structured questionnaire was designed. Survey a sample of 100 customers. The methodology developed was Primary and Secondary research. The questionnaire was designed to get information from customers about their satisfaction and overall opinion about Maruti.
Sources of Data:
y Primary data y Secondary data
Field of Survey:
The field work for the survey was conducted in Patiala. The exercise involved face to face interview with the customers.
Analysis:
The important factors and data¶s collected were sequentially analyzed and graphed.
1. Knowledgeable Sales Persons?
no 6%
Sales
yes 94%
94% people said that there are knowledgeable sales person but 6% were disagree.
2. Are You Satisfied With The Availability of Product At The Time Of Visiting?
no 16%
Sales
yes 84%
84% people are satisfy with the availability of the product and 16% are not satisfy.
3. Are you satisfied with the Service at the Service Center?
no 18%
Sales
yes 82%
82% people are satisfy with the service at the service station and 18% are not satisfied.
4. Are you Satisfy with the Delivery of the Product in Time or Not?
no 8%
Sales
yes 92%
92% people are in the favour of that they got delivery in time.
5. Are Spare Parts Available At Reasonable Price or Not?
Sales
no 21%
yes 79%
79% people are saying yes that spare parts are available at reasonable price.
6. What Are The Response of employees after the sales?
not satisfy 15%
satisfaction
satisfy 85%
85% people are satisfy with the after sales service.
7. Is There Online support (customer care)?
customer care
no 28%
yes 72%
72% people are aware of customer online support.
8. Are You Satisfy With The Resale value of the car?
re sale
no 19%
yes 81%
81% people are satisfy with the resale of the car.
9. Are You Satisfy With the Value of money in Maruti Products?
value
not satisfy 22%
satisfy 78%
78% people are satisfy with the value of money in Maruti products.
10. Are You Satisfy With the Response to complaint?
not satisfy 18%
customer care
satisfy 82%
82% people are satisfy with the service of Maruti Suzuki.
11. Are all the commitments are fulfilled (commitment for accessories etc.)
no 6%
commitment
yes 94%
Almost all the customers are in favour that all the commitments are fulfilled.
12.Overall performance of Maruti Suzuki«.
not satisfy 7%
Satisfaction
satisfy 93%
Almost all the customers are satisfy with the mauti Suzuki sales, service, spares.
Conclusion
y At present Car sales are high due to their better service providing factor and rectifying problems. y Checking complaints have now become the first priority of the company, for that they install call centers to rectify those problems. y Being in the market of hype competition car companies making brand positioning of their models. They used to put free test camps and use actors and actresses, even fashion models in the Auto Expo events. y Car are launching their new models with variant colours to make the consumer feel free from the choices. y Product delivery should be in time. y People only buy a product of a particular brand if there is a brand value of company. Company should maintain its brand value. y All the commitments should be fulfilled in time.
AREAS FOR IMPOVEMENT
y Quality of Dealership should be improve y Uniform of Sales Executives y Proper visiting cards should be available to the executives y Mostly dealers don¶t have their specific website y Maruti should regard as generous discount offers during Festival Season like Navratra, Dusshera, and Diwali to gear-up their sales y More test drives should be offered. y Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer. y Company Should put in more efforts to promote Maruti Finance , Autocard and Accessories.
LIMITATIONS
1. The result of this research cannot be termed as making a fair representation of the
perception of the population.
2. Study was confined to the Patiala city. 3. Language problem was there as some of the respondents facing problem while filling the
questionnaire in English.
4. Sample size taken was 100 respondents, the result might have varied had there been a
larger sample size.
5. It is very much possible that some of the respondents may have given the incorrect
information.
BIBILOGRAPHY
Internet Resources yhttp://wwwtatamotors.com/itw_industry.htm yhttp://www.business-standard.com/india/news/the-wonder-cars/352657/ yhttp://www.merinews.com/catFull.jsp?articleID=141571 yhttp://www.automobileindia.com/cars/small-cars/ y www.marutiSuzuki.com y Wikipedia y www.cardekho.com
ANNEXURE: QUESTIONNAIRE
1. Are There Knowledgeable Sales Persons/ Employees ? o Yes o No 2. Are You Satisfy With The Availability of Product At The Time Of Visiting? o Yes o No 3. Are you satisfied with the Service at the Service Center? o Yes o No 4. Are you Satisfy with the Delivery of the Product in Time or Not? o Yes o No 5. Are Spare Parts Available At Reasonable Price or Not? o Yes o No 6. What Are The Response of employees after the sales? o Good o Not Good 7. Is There Online support (customer care)? o Yes o No 8. Are You Satisfy With The Resale value of the car? o Yes o No
9. Are You Satisfy With the Value of money in Maruti Products? o Yes o No 10. Are You Satisfy With the Response to complaint? o Yes o No 11. Are all the commitments are fulfilled (commitment for accessories etc.) o Yes o No 12. Are You Satisfied with the Genuine accessories of Maruti Suzuki? o Yes o No
doc_944338567.docx
YOGESH VERMA (6414) MBA 2ND SEM
PREFACE
This project report pertains to the making of a Training Report of M.B.A. curriculum. The PURPOSE of this project is to make the students to have thorough knowledge of the topics given to them. I learned a lot from the hard work I put in to collect information regarding the same, which would be of great use in my near future as a professional. Justification cannot be done to whatever I have learnt within a few pages but I have still tried my best to cover as much as possible about ³Customer Satisfaction Survey of Maruti Suzuki India Limited´ in this report. Being students of Masters in Business Administration, we need to be aware of the organizational internal environment. Consumers of Maruti Udyog Ltd. have been surveyed regarding Cars.
EXECUTIVE SUMMARY
The project studied by me in Maruti Udyog Ltd., was ³Customer Satisfaction Survey of Maruti Suzuki India Limited´. The Indian auto market is growing very fast and every car manufacturers are planning expansion for the Indian market. Moreover, the Cars in India is the latest attraction. India is already an export hub for cars for Suzuki and now Hyundai also moved its complete manufacturing base for cars to India. Presently models like i10, Getz and Santro are manufactured in India. The list of upcoming cars in India in this segment is Maruti Splash, Maruti Suzuki Servo, Maruti Suzuki Kizashi and many more. In the Cars, Maruti Suzuki already dominates by holding 53% of the share for cars in India.
ACKNOWLEDGEMENT
It is a great privilege for me to work with, Pa. I convey my sincere thanks to Mr.Bhuvnesh Sharma, Asst. Sales Manager, Hira Automobiles, Patiala who accepted me a trainee in their esteemed organization and gave me the opportunity to develop this project. I even thanks to my college for helping and giving guidance throughout. I am also thankful to all my colleague members who continuously helped and provided with some valuable information during the training period.
Yogesh Verma
MARUTI SUZUKI INDIA LIMITED
Maruti Suzuki India limited (MARUTI SUZUKI INDIA LIMITED) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki¶s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government on the lines organization of Japanese
managed
management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss.
HISTORY OF MARUTI SUZUKI
In 1970 , Sanjay Gandhi the son of Indira Gandhi envisioned the manufacture of an indigenous , cost effective , low maintenance compact car for the Indian middle class . Indira Gandhi¶s cabinet passed a unanimous resolution for the development and production of a people¶s car. Sanjay Gandhi¶s company was christened Maruti limited. The name of the car was chosen after a Hindu deity named Maruti Ltd. That time Hindustan Motors¶ Ambassador was the chief car and the company had come out with a new entrant the premier Padmini that worked slowly gaining a part of the market share dominated by the ambassador. For the next ten years the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. Sanjay Gandhi was awarded the exclusive contract and license to design, develop and manufacture the ³People¶s Car.´ These exclusive rights of production generated some criticism in certain quarters, which was directly targeted at Indira Gandhi. Over the next few years the company was sidelined to Bangladesh liberation war and emergency. In the early days under the powerful patronage of Sanjay Gandhi the company was provided with free land, tax breaks and funds. Till the end of 1970 the company had not started the production and a prototype test model was welcomed with criticism and skepticism. The company went into liquidation IN 1977. The media perceived it to be another area of growing corruption. Unfortunately Maruti¶s started to fly only after the death of Sanjay Gandhi, when Suzuki motors joined the government of India as a joint venture partnered with 50% share. After his death Indira Gandhi decided that the project should not be allowed to die. Maruti¶s entered into this collaboration with Suzuki motors. The collaboration heralded a
revolution in the Indian car industry by producing the maruti-800. It created a record of taking 13 months¶ time to go from design to rolling out cars from a production line. The production of Maruti-800 in 1983 marked the beginning of a revolution in the Indian automobile industry. It brought in the latest technology of that time more fuel efficiency and lower prices that led to the creation of a huge market for all car segments as the Indian, middle class grew in size. This in turn brought in more players in this segment. A number of auxiliary car parts making units were set up as more car manufacturers realized it was more cost effective to make their car parts in India rather than importing them. Maruti¶s major influence was in helping the component industry in the country because of its emphasis on localization and indigenization. As in the beginning that sector hadn¶t grown much Maruti¶s had to start dozens of joint ventures with Indian entrepreneurs. It got them from foreign collaborations that led to collaborations for other manufacturers so that over a period of time the whole component industry was able to upgrade itself and improve its quality who had given their income leading to major existing export potential vehicle components. It also brought in better methods of financing that allowed more people who given their income levels could not afford to buy a car on their own, to buy cars. It still remains the leader not only in the terms of market share but also in customer satisfaction surveys. It has consistently topped J.D. power quality surveys, including 2005. By the year 1993 the company had sold 1, 96,820 cars. By March 1994 it produced 1 million vehicles becoming the first Indian company to cross the 2 million mark in October, 1997 and rolled out 4 millionth vehicles as Alto-LX .Then it introduced Wagon-R followed by Swift . Swift has been a great success in the market .In 2007 Maruti came up with SX4 and Grand Vitara.Maruti Suzuki is
one of India's leading automobile manufacturers 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 Indian government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti suzukiindia limited. Maruti suzukiindia limited 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 notmanufactured by Maruti suzukiindia limited) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling in A2 segment. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, in India Hindu's lord Hanuman is known as "maruti", was associated to the Maruti 800 model.
BOARD OF DIRECTORS
Mr. Shinzo Nakanishi (MD & CEO)
Mr. D. S. Brar (Director)
Mr. R. C. Bhargava (chairman)
Mr. Keiichi Asai (Director)
Mr. Manvinder Singh Banga (director)
Mr. Tsuneo Ohashi (director)
Mr. Amal Ganguli
Ms. Pallavi Shroff
Current Products of Maruti Suzuki
1. 800 (Launched 1983) 2. Omni (Launched 1984) 3. Gypsy (Launched 1985) 4. WagonR (Launched 2000) 5. Alto (Launched 2000) 6. Swift (Launched 2005) 7. Estilo (Launched 2009) 8. SX4 (Launched 2007) 9. Swift DZire (Launched 2008) 10. A-star (Launched 2008) 11. Ritz (Launched 2009) 12. Eeco (Launched 2010) 13. Grand Vitara (Launched 2007)
MARUTI SUZUKI PRODUCTS
MARUTI PRODUCTS
MARUTI INSURANCE
MARUTI DRIVING SCHOOL
MARUTI GENUINE ACCESSORIES MARUTI TRUE VALUE
MARUTI FINANCE
OBJECTIVE OF THE COMPANY
Maruti¶s marketing objective is to continually offer the customer new products and services that: reduce the customer¶s cost of ownership of their cars; andanticipate and address the customer¶s needs and preferences in all aspects and stages of car ownership, to provide what they refer to as the ³360 degree customer experience.´ They sell ten models with more than 50 variants in segments A, B, C, and utility vehicle segment of the Indian passenger car market. Of these, they manufacture nine models and import the Grand Vitara as a completely built unit from Suzuki in Japan. Their models and variants are designed to address the changing demands of the market and are periodically upgraded in technology, styling and features. To take advantage of the brand recognition associated with their products, they retain the brand name of the product through various stages of product upgrades over time. For example, the version of the Maruti 800 brand currently sold in the market is a significantly upgraded version, in terms of technology, design and styling, of the Maruti 800 launched in 1983.
4Ps: Product Price Place Promotion
Product Strategy: Portfolio of 12 products Five product lines
Product Line A1 A2 A3 SUV C - Class
Products Maruti 800 ,Alto Zen ,Wagon ±R, Swift, A-star ,Ritz D ZiRE, Sx4 Vitara, Gypsy Omni, EECO
Price Strategy:The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti ± 800 is the lowest price car of this company. Alto, Omni, Wagon R, are also the low price car of the company, Zen & Esteem are the mid price car of the company. But Grand Vitara is the high price model of the company. The price of car is decided according to its product variety, quality, design etc.
Place strategy:y y y y 600 New car sales outlets covering 393 cities. 265 µMaruti True Value¶ outlets spread across 166 cities. 2628 Maruti Authorized Service Stations, covering 1220 cities. Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat
Suggested Place strategy:y y y y 400 new car sales outlets in next three years. S150 new true value shops in next three years. 1200 new Maruti Authorized Service Stations in next three years. Tie up with other distributors for Exports.
Promotion Strategy:Advertising j TV Ads j Print Ads & Radio Ads
SWOT ANALYSIS
STRENGTHS
j j j j j Bigger name in the market Trust of People Maruti suzukiindia limited Ltd. is the market leader for more than a decade. Has a great dealership chain in the market. Better after sales service
WEAKNESSES
j j j Exports are not that good. Lesser diesel models in the market compare to others Global image is not that big
OPPURTUNITIES
j j j j Great opportunities to go global with success of Swift and SX4 allover Introduction of more diesel models. The diesel car segment is growing Opportunity to grow bigger by entering into bigger car markets Already a market leader so great opportunity to be the king of market in every stage of industry
THREATS
j j j j Foreign companies entering market; so a bigger threat fromMNCs. To the market share, as many big names are coming in the industry There is hardly any diesel models Rs. 1 lakh ± Rs. 1.5 lakh car
CURRENT STRATEGIES FOLLOWED BY MARUTI SUZUKI
PRICING STRATEGY - CATERING TO ALL SEGMENTS
Maruti caters to all segment and has a product offering at all price points. It has a car priced at Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking for up gradation in his car. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Here is how every price point is covered.
Sl.No. 1
BRAND GRAND VITARA AT
VARIANTS MT AT
PRICE IN PATIALA (Rs.) 17,24,074 18,57,761
3
SX4
VXI
6,97,329
ZXI 4 MARUTI EECO 7 SEATER 5 SEATER 5 MARUTI SWIFT LXi
8,71,374 2,98,702 2,74,906 4,25,674
VDi ZXi 6 MARUTI WAGON-R LX
5,32,020 5,41,940 3,34,019
LXi VXI VXI (ABS)
3,66,038 3,90,359 4,21,578
7
MARUTI GYPSY
1.3L ST
5,22,429
HT 8 MARUTI ZEN ESTILO LX
5,47,788 3,28,407
LXI VXI
3,62,857 3,86,454
9
MARUTI OMNI
CARGO
2,21,923
CARGO LPG 10 RITZ LXI RITZ ZXI RITZ VDI LXI ZXI VDI
2,05,379 4,07,980 5,05,127 5,37,512
11
MARUTI ALTO
LX
2,65,605
LXI
2,88,601
12
MARUTI 800
STD A/C MPFI
2,17,269 2,34,365
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 MARUTI SUZUKI INDIA LIMITED 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 in-service 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 singlewindow 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 competitive, 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, swiftdzire, Maruti 800, Alto and Omni.
(7) Technological Advantage It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 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.
NEW INITIATIVES IN MARUTI SUZUKI LIMITED (one stop shop to meet all your needs)
In an effort to become a complete car company, Maruti has entered the car insurance business as well. It offers the customer all the advantages of settling insurance claims directly with any of the company¶s authorized dealers.Maruti Insurance is one of the most renowned car insurance companies in India. The company has ties up with Bajaj Allianz, National Insurance Company, Royal Sundaram, and New India Assurance. Car insurance policy of Maruti Insurance is a single solution to all your car insurance needs, which may include instant policy issuance to post accident repairs on near cash-less basis. Automobileindia.com furnishes detailed information on Maruti Insurance.
The Basics Features of Maruti Insurance:
Car insurance under Maruti Insurance has a few basic features. Automobileindia.com furnishes detailed information on Maruti Insurance. ?Maruti provides motor insurance for Maruti vehicles only, which excludes Third Party policies. ?Maruti Insurance is available to customers only through Maruti dealer network all over India. ?Maruti Insurance provides insurance for Maruti vehicles up to 7 years old. One of the biggest plus points of insuring under Maruti Insurance, the vehicle can remain under cover as long as it lasts. Advantages of insuring with Maruti Insurance: Maruti Insurance offers a number of advantages, which contributes to its immense popularity. Automobileindia.com furnishes detailed information on Maruti Insurance.
Maruti Finance offers the best finance packages to consumers across the entire Maruti range. The service is being extended across the country in a phased mannerMaruti is the leading company in the Indian passenger car market Maruti has come up with a number of innovations and Maruti Car Finance is one of the popular such option.As part of the Maruti car finance, the company has entered into tie-ups with leading banks and financial institutions in the country.Maruti provides for financing help with the State Bank of India (SBI), CitiBank, Kotak Mahindra Bank and a few othersIn addition to, Maruti Countrywide and Citicorp Maruti Finance are the two joint ventures of Maruti with the leading names like GE Capital and CitiBank that provides for financing and loan assistance for buying all categories of Maruti cars.
MARUTI GENUINE ACCESSORIES
A single point of contact,Hassle-free transactions,Emergency Assistance ,Virtually Cashless Repairs Post accident repairs and insurance support at any dealer workshop.Maruti Suzuki Genuine Parts and Accessories are priced very competitively and offer a customer best value for money and quality. Browse through the complete range of accessories and contact the nearest dealer for more details.
MARUTI TRUE VALUE
Maruti has taken its first steps in the pre-owned car business under the brand name of Maruti True Value. Using their technological expertise, network support and the experience they have gained in the last 18 years, the company ensures the customers gets great value and completes the transaction zero hassles.
.ANYTIME
MARUTI
Maruti Suzuki has also set up state-of-the-art call centers (operational in Delhi, Gurgaon, Mumbai, Chennai, Bangalore and Hyderabad) Branded Anytime Maruti, this 24 hour help-line clarifies all doubts and queries regarding Suzuki any time of the day or night. The toll free no. is 1800-1800-180.
USEFULNESS AND SCOPE OF THE STUDY
USEFULNESS OF STUDY
Increasing market share requires an understanding of customer and their satisfaction towards the product. Customer satisfaction survey of Maruti Suzuki India Limited leads to examine the efficient factor to excel in the market. The best way to establish revenue goals and sales quotas for products, territories or stores/branches is to base them on the true customer satisfaction within the area. With a realistic picture of customer satisfaction you can focus resources intelligently, maintaining a presence where you're strong and investing heavily where opportunity is greatest.
SCOPE OF PROPOSED STUDY
To make it more marketing sensitive and adaptive change. To formulate market future strategies based on knowledge acquired out of the serving. To upgrade the customer satisfaction relate to Maruti Suzuki India Limited.
RESEARCH METHODOLOGY
Market Research Project Title ± ³Customer Satisfaction Survey of Maruti Suzuki India Limited´
Project involves:
-Introduction about Maruti -Quantitative research -Awareness regarding the facilities provided by Maruti -Overall opinion about Maruti
Research Methodology:
The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data.
Research Objective:
To find the satisfaction amongst the customers of Maruti.
Research Design:
Detailed and structured questionnaire was designed. Survey a sample of 100 customers. The methodology developed was Primary and Secondary research. The questionnaire was designed to get information from customers about their satisfaction and overall opinion about Maruti.
Sources of Data:
y Primary data y Secondary data
Field of Survey:
The field work for the survey was conducted in Patiala. The exercise involved face to face interview with the customers.
Analysis:
The important factors and data¶s collected were sequentially analyzed and graphed.
1. Knowledgeable Sales Persons?
no 6%
Sales
yes 94%
94% people said that there are knowledgeable sales person but 6% were disagree.
2. Are You Satisfied With The Availability of Product At The Time Of Visiting?
no 16%
Sales
yes 84%
84% people are satisfy with the availability of the product and 16% are not satisfy.
3. Are you satisfied with the Service at the Service Center?
no 18%
Sales
yes 82%
82% people are satisfy with the service at the service station and 18% are not satisfied.
4. Are you Satisfy with the Delivery of the Product in Time or Not?
no 8%
Sales
yes 92%
92% people are in the favour of that they got delivery in time.
5. Are Spare Parts Available At Reasonable Price or Not?
Sales
no 21%
yes 79%
79% people are saying yes that spare parts are available at reasonable price.
6. What Are The Response of employees after the sales?
not satisfy 15%
satisfaction
satisfy 85%
85% people are satisfy with the after sales service.
7. Is There Online support (customer care)?
customer care
no 28%
yes 72%
72% people are aware of customer online support.
8. Are You Satisfy With The Resale value of the car?
re sale
no 19%
yes 81%
81% people are satisfy with the resale of the car.
9. Are You Satisfy With the Value of money in Maruti Products?
value
not satisfy 22%
satisfy 78%
78% people are satisfy with the value of money in Maruti products.
10. Are You Satisfy With the Response to complaint?
not satisfy 18%
customer care
satisfy 82%
82% people are satisfy with the service of Maruti Suzuki.
11. Are all the commitments are fulfilled (commitment for accessories etc.)
no 6%
commitment
yes 94%
Almost all the customers are in favour that all the commitments are fulfilled.
12.Overall performance of Maruti Suzuki«.
not satisfy 7%
Satisfaction
satisfy 93%
Almost all the customers are satisfy with the mauti Suzuki sales, service, spares.
Conclusion
y At present Car sales are high due to their better service providing factor and rectifying problems. y Checking complaints have now become the first priority of the company, for that they install call centers to rectify those problems. y Being in the market of hype competition car companies making brand positioning of their models. They used to put free test camps and use actors and actresses, even fashion models in the Auto Expo events. y Car are launching their new models with variant colours to make the consumer feel free from the choices. y Product delivery should be in time. y People only buy a product of a particular brand if there is a brand value of company. Company should maintain its brand value. y All the commitments should be fulfilled in time.
AREAS FOR IMPOVEMENT
y Quality of Dealership should be improve y Uniform of Sales Executives y Proper visiting cards should be available to the executives y Mostly dealers don¶t have their specific website y Maruti should regard as generous discount offers during Festival Season like Navratra, Dusshera, and Diwali to gear-up their sales y More test drives should be offered. y Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer. y Company Should put in more efforts to promote Maruti Finance , Autocard and Accessories.
LIMITATIONS
1. The result of this research cannot be termed as making a fair representation of the
perception of the population.
2. Study was confined to the Patiala city. 3. Language problem was there as some of the respondents facing problem while filling the
questionnaire in English.
4. Sample size taken was 100 respondents, the result might have varied had there been a
larger sample size.
5. It is very much possible that some of the respondents may have given the incorrect
information.
BIBILOGRAPHY
Internet Resources yhttp://wwwtatamotors.com/itw_industry.htm yhttp://www.business-standard.com/india/news/the-wonder-cars/352657/ yhttp://www.merinews.com/catFull.jsp?articleID=141571 yhttp://www.automobileindia.com/cars/small-cars/ y www.marutiSuzuki.com y Wikipedia y www.cardekho.com
ANNEXURE: QUESTIONNAIRE
1. Are There Knowledgeable Sales Persons/ Employees ? o Yes o No 2. Are You Satisfy With The Availability of Product At The Time Of Visiting? o Yes o No 3. Are you satisfied with the Service at the Service Center? o Yes o No 4. Are you Satisfy with the Delivery of the Product in Time or Not? o Yes o No 5. Are Spare Parts Available At Reasonable Price or Not? o Yes o No 6. What Are The Response of employees after the sales? o Good o Not Good 7. Is There Online support (customer care)? o Yes o No 8. Are You Satisfy With The Resale value of the car? o Yes o No
9. Are You Satisfy With the Value of money in Maruti Products? o Yes o No 10. Are You Satisfy With the Response to complaint? o Yes o No 11. Are all the commitments are fulfilled (commitment for accessories etc.) o Yes o No 12. Are You Satisfied with the Genuine accessories of Maruti Suzuki? o Yes o No
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