INTRODUCTION OF THE COMAPANY

MARUTI UDYOG LIMITED Maruti is India's largest automobile company. The company, a joint venture with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry. Today, Maruti is India's largest automobile company. This feat was achieved by the missionary zeal of our employees across the line and the far-sighted vision of our management. The Company Mission: To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export markets. The Company Vision: We must be an internationally competitive company in terms of our products and services. We must retain our leadership in India and should also aspire to be among the global players. Their focus is on:

Building a continuously improving organisation adaptable to quick changes Providing value and satisfaction to the customer Aligning and fully involving all our employees, suppliers and dealers to face competition

Maximising Shareholder's value Being a responsible corporate citizen

At Maruti, they have a clear perspective on manpower. They see it as a unique resource, in the sense that optimal productivity of other resources depends largely on

the way human resources are utilised. The basic philosophy of management that underlies the Maruti culture is that all employees of the company should be moulded into a team which then strives as one, to achieve commonly shared company goals and objectives. To make this philosophy tenable, the Company takes several initiatives. Inputs are sought from employees at all levels. They believe that everyone should contribute to the formulation of company policies, goals and objectives. Secondly, at Maruti, they encourage leadership in the best sense of the word. According to us, a leader is one who must be impartial, must have the ability to rise above his own subjectivity, and, most importantly, must practice what he preaches. They understand that the process of creating a sense of belonging that all employees can identify with is a lengthy one. To ensure that this translates into concrete reality, they have taken several simple but specific and well thought out measures. The first step in this direction has been the introduction of a common uniform for all employees. Another measure is the creation of a common canteen where all employees have lunch, stand in common queues, and sit on the same table. Common toilets, common transport and similar facilities for all levels of employees are other measures that reinforce their emphasis on genuine equality in the workplace. At Maruti They do not believe in the notion of organisational hierarchies. As a matter of fact, the management structure and systems in Maruti have been designed to promote decentralisation of authority. Maruti has a horizontal management structure with only four functional levels of responsibility to facilitate quicker decision making. Another focus area of the Maruti culture is the maintenance of a smoothly functioning communication network. Maruti believes that communication channels between labour and management cannot simply consist of having a labour representative on the Board of the Company. They have faith in the ability of labour to effectively participate in management and make constructive suggestions. To encourage this, they ensure that there is a thorough dissemination of information at all levels, through newsletters or via a letter from the Chief Executive to all employees. Meetings with the Union are held regularly, and programmes being

contemplated by the Company are discussed with the Union. The Sahyog Samiti, a collection of representatives of non-unionised employees, training programmes in Japan, Quality Circles, productivity-linked incentive schemes, and an ethos of discipline and teamwork, all contribute to the Maruti culture. Several measures of performance have made amply clear that Maruti has established a truly healthy work culture. They have met all project and performance targets since inception. Their productivity levels are constantly improving. The Company has had good labour relations with employees from the very beginning, and they have been successful in the export market. Yet, the Maruti culture is one that does not believe in resting on its laurels. They adhere to the spirit of Kaizen, which states that constant improvement is always possible. The most basic tenet of productivity that they hold dear is that " Today should be better than Yesterday and Tomorrow should be better than Today". Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A licence and a Joint Venture agreement was signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives of MUL then were:

Modernization of the Indian Automobile Industry. Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles, which was necessary for economic growth.

Core Value

Customer Obsession Fast, Flexible and First Mover Innovation and Creativity Networking and Partnership Openness and Learning

Vision The leader in the India Automobile Industry, Creating Customer Delight and Shareholders Wealth; A pride of India Technological Advantage We have 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. Our other innovation has been the introduction of Electronic Power Steering (EPS) in select models. This results in better and greater maneuverability. In other words, our cars have become even more pleasurable to drive. Production/R&D Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to make a car. More importantly, with an incredible range of 11 models available in 50 variants, there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream. Production Milestones

1st vehicle produced, December 1983 1,00,000 vehicles produced by August, 1986 5,00,000 vehicles produced by June, 1990 10,00,000 vehicles produced by March, 1994 15,00,000 vehicles produced by April, 1996 20,00,000 vehicles produced by October, 1997 25,00,000 vehicles produced by March, 1999 30,00,000 vehicles produced by June, 2000 35,00,000 vehicles produced by December 2001 40,00,000 vehicles produced by April, 2003 45,00,000 vehicles produced by April, 2004

AWARDS 2005 Number one in JD Power SSI for the second consecutive year Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05

Maruti bagged the "Manufacturer of the year" award from AutocarCNBC ( 2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in India-Oct 04 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04 2004 Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R) No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG 2003 Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (2001) for 4th time in a row 2001 MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first 2000 Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world

1999 MSM launched as model workshop in India; achieves highest CSI rating. Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee 1998 CII's Business Excellence Award 1996 Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the Star Trading House status by Ministry of Commerce 1994-95 Engineering Exports Promotion Council's award for export performance 1994 Best Canteen award among Haryana Industries as part of employee welfare

WHY MARUTI SUZUKI

The Quality Advantage A car is an engineering product, only as good as the technology used to make it. Actual users of our technology are saying something very clearly Maruti Suzuki is No.1 in quality: Maruti Suzuki owners experience fewer problems with their vehicles than any other can 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. The J.D. Power APEAL Study 2004 proclaimed the Wagon R. No. 1 in the premium compact car segment and the Esteem No.1 in the entry level midsize car segment. This study measures owner delight in terms of design, content, layout and performance of vehicles across 8 parameters. 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 our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI study 2004. The SSI study measures sales satisfaction across 6 parameters: deal received, paperwork, dealer facility, salesperson, delivery timing and delivery process. Maruti Suzuki has not only got the No.1 nameplate in the J.D. Power SSI study 2004, but also ranked way above the industry average (Maruti Suzuki was at 784 while industry average was at 760). What is significant is that it was ranked above Skoda, Ford, Chevrolet, Mitsubishi and Hyundai. To be really happy with the car you own, it should have a reliable service network at hand and within easy reach. Their 1036 city strong service network is equipped to service 20,000 vehicles a day. No wonder Maruti Suzuki has been awarded the No.1 nameplate in customer satisfaction in India for the fifth year in a row, a feat unprecedented for any automobile market leader in the world.

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 our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004. 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. The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost you 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. The recent Auto car Survey conducted in August 2004 bears testimony to this fact. In the Maruti Suzuki stable, the Omni has the lowest aggregate cost of spares followed by the Maruti-800. The Maruti800 has the cheapest spares of any Indian car with a basket of just Rs. 23,422. In the Lower Mid-size segment as well, price-consciousness is very high, where the cars have to be not only affordable on purchase price but also need to combine quality, drivability and have comfortable interiors. In this segment, the Maruti Suzuki Versa has scored particularly well with the lowest

cost of spares in the segment. In the Upper Mid-size segment, the Maruti Suzuki Baleno has the segment's lowest prices on a majority of the spares. ISO 9001:2000 At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into the product". Technicians themselves inspect the quality of work. Supervisors educate and instruct technicians to continually improve productivity and quality. The movement of quality indicators is reviewed in weekly meetings by the top management. In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere in the world to get an ISO 9000:2000 certification. AV Belgium, global auditors for International Organization for Standardisation(ISO), certified Maruti after a four day long audit, covering varied parameters like Customer Focussed organisation, Leadership, Involvement of people, Process approach, System approach to Management, Continual improvement, etc. In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance in production, installation, marketing and sales as well as after sales services. We were also one of the first companies in the world to pioneer ISO 9000 certification for our dealers. In October 1993, MUL passed the Conformity Of Production (COP) Audit, which is based on a European Union Directive. This authenticated our quality systems and testing facilities for export to Europe. Their emphasis on total quality has meant that today they are in a position to guide vendors and dealers in establishing and consolidating their individual quality systems. This commitment to quality has ensured a consistently satisfying product and world-class sales and after-sales services.

Stages in Buying Decision Process

Need recogniti on Informat ion search Evaluation of alternative s Purchas e decisio n Postpurchase behavior

The consumer passes through five stages : Problem recognition information search, evaluation of alternatives purchase decision and post-purchase behavior. Clearly the buying process starts long before the actual purchase and has consequences long after the purchase. This model implies that consumers pass through all five stages in buying a product. But this is not the case, especially in low-involvement purchase. Consumers may skip or rreverse some stages. Thus a woman buying her regular brand of toothpaste goes directly from the need for toothpaste to the purchase decision, skipping information search and evaluation. However, we have already used the model in above, because it captures the full range of consideration that arise when a consumer facer a highly involving new purchase. We will allude again to Linda Brown and try to understand how she became interested in buying a laptop computer and the try to understand how she became interested in buying a laptop computer and stages she went through to make her final choice.

TARGET MARKETING

Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. Target marketing is the selection of customers you wish to service. The decisions involved in it are Which segments to target How many products to offer Which products to offer in which segments

There are three steps to targeting: Market segmentation Target choice Product positioning

One of the first things you need to do is to refine your product or service so that you are NOT trying to be 'all things to all people. Next, you need to understand that people purchase products or services for three basic reasons:

To satisfy basic needs. To solve problems. To make themselves feel good.

The next step in creating an effective marketing strategy is to zero in on your target market. Target marketing is one of corporate America's most effective business strategies. The idea is to increase sales by first identifying, and then targeting smaller, yet more profitable customer groups within the total market.

Four Ways to Identify Target Markets 1. Geographic: The location, size of the area, density, and climate zone of your customers. 2. Demographics: The age, gender, income, family composition and size, occupation, and education of your customers. 3. Psychographics: The general personality, behavior, life-style, rate of use, repetition of need, benefits sought, and loyalty characteristics of your customers. 4. Behaviors: The needs they seek to fulfill, the level of knowledge, information sources, attitude, use or response to a product of your customers. TARGET MARKETING Who are your best customers? Where should you direct your marketing activities? Where and how should you allocate your advertising and promotional efforts? Target Marketing, provides Focus for your business. It helps to establish critical Operational goals and defines what must be done to achieve them

Target Marketing

Comparison of Automobile And Consumer Durable

At Dealership Level S.No 1 2

Attributes
Turnover Margin Penetration Level Training of Sales Executives

Automobile
High 8%-12% More in small or large towns or cities Executives get Training after every specific period

Consumer Durables
Low 2%-4% More in Rural areas or in cities also

As such no training Co->Distributor>Dealer >Customer Depends on Dealer To Dealer Only Sales man is there to serve the customer Customer have to go at manufactured level

Supply-Chain Discount Margin

Co->Dealer->Customer

Cartel

CSR

Proper well organized Customer get 3free service

ASS

Brand Association

Customer first choice is more pertinent

Customer can change his or her choice More focus on Finance & Installment

10

Payment Post-Sales Follow UP Buying Procedure Database Brand Transition

Instantaneous Payment

11

More Customer can wait for new model Large Single-Tier Parent Company & dealer both give advertisement Yes

Very Less

12 13 14

Instant buying Few Multi-Tier

15 16

Advertisement Loyality Programs Customer Satisfaction Index Promotion Customer Retention

Only from Parent Company No

17 18

Well- Defined & Organized Free Service Camps

None None

19

More Only free service which customer can extend upto 4 years(first 2yr are free)

Very Less

20

Maintenance

Annual Maintenance Contract (AMC)

MARUTI CULTURE
Their employees are their greatest strength and asset. It is this underlying philosophy that has moulded their workforce into a team with common goals and objectives. Their Employee-Management relationship is therefore characterized by:

Participative Management. Team work & Kaizen. Communication and information sharing. Open office culture for easy accessibility

To implement this philosophy, they have taken several measures like a flat organizational structure. There are only three levels of responsibilities ranging from the Board Of Directors, Division Heads to Department Heads. Other visible features of this philosophy are an open office, common uniforms (at all levels), and a common canteen for all. The company is listed on Bombay Stock Exchange and National Stock Exchange. MUL is a Board-managed company. Currently the directors on the Board are:

Mr Shinzo Nakanishi, Chairman Mr Jagdish Khattar, Managing Director Mr Hirofumi Nagao, Joint Managing Director Mr Shinichi Takeuchi, Joint Managing Director Mr Kinji Saito, Director (Marketing and Sales) Mr Osamu Suzuki, Director Mr R C Bhargava, Director Mr S V Bhave, Director Mr Kumar Mangalam Birla, Director Mr Amal Ganguli, Director

OBJECTIVE OF THE COMPANY

Marutis marketing objective is to continually offer the customer new products and services that: Reduce the customers cost of ownership of their cars; and a nticipate and address the customers needs and preferences in all aspects and stages of car ownership, to provide what they refer to as the 360 degree customer experience. They sell ten models with more than 50 variants in segments A, B, C, and utility vehicle segment of the Indian passenger car market. Of these, they manufacture nine models and import the Grand Vitara as a completely built unit from Suzuki in Japan. Their models and variants are designed to address the changing demands of the market and are periodically upgraded in technology, styling and features. To take advantage of the brand recognition associated with their products, they retain the brand name of the product through various stages of product upgrades over time. A A B B B C C C C Utility Vehicle Utility Vehicle Maruti 800 OMNI Zen Wagon R Alto Esteem Baleno Versa SWIFT GYPSY KING GRAND VITARA

WAGON R

MARUTI 800

NEW ALTO

SWIFT

RESEARCH METHODOLOGY
The nature of the project work has been exploratory as no hypothesis, is taken to be tested. Though the conclusions drawn could be taken as the hypothesis and further tested by the research work undertaken in the relevant field. The reason for choosing the exploratory research design is the fact the project report has been primarily based upon the secondary sources of data and whose authenticity could be assured of. The reluctance of the company's personnel in parting with much of information led the project report to be based substantially on the secondary source of data. The sources of data used in data collection are the following:

Primary sources
In order to gather information about the various products, I personally visited a number of retail markets and collected data pertaining to the prices of the products offered. The market visits were useful in knowing the comparative prices and quality of the offered brands vis--vis the competitive brands. Detail regarding the packaging of the products were collected were collected and I also inquired about the various sales promotion schemes followed by the three companies. By interviewing these retailers valuable information was collected. I inquired from them about their marketing advertising and distribution strategies.

Secondary sources
Information was collected from secondary sources such as public libraries, newspapers, business magazines. Beside these the use of Internet was also made in collecting relevant information. The data collected from the above mentioned sources has been adequately structured and used at appropriate places in the report. This particular way of data collection was used because of its low cost (except data collected through surfing the internet) and less time consumption. The information gathered included:

Their annual reports (Procter & Gamble and Johnson and Johnson). Pamphlets. Posters. Press clippings. News releases. Newsletters. Pictures.

FINDINGS OF THE STUDY

PRICES OF MARUTI PRODUCTS Car market leader Maruti Udyog Limited has announced a marginal increase in price of certain models. The increase, which comes into effect from today, varies from 0.17 percent to 1.47 percent. The price increase is due to rise in input costs and freight costs, which increased following the rise in oil prices. In this phase, the company has decided to pass on only a part of the increase in costs to the customers. There is no change in the prices of Swift, Zen, Baleno (Vxi) and WagonR (Petrol). Ex-Showroom Prices in Delhi (in Rs) Model M800 Std M800 Std Ac Alto Std Alto Lx Alto Lxi Omni Cargo LPG Omni Cargo Omni (Eight Seater) Omni LPG Esteem Lx Esteem Lxi Esteem Vxi Baleno Lxi Versa Dx Versa Dx2 Versa Std WagonR Lx LPG WagonR Lxi LPG New 191646 213062 231585 265262 283878 194725 213706 221268 230388 445968 476223 511520 576173 433575 471779 360182 345106 373160 Chang Old Increase e % 191146 500 0.26% 212562 500 0.24% 231085 500 0.22% 264762 500 0.19% 283378 500 0.18% 192725 2000 1.04% 213206 500 0.23% 220768 500 0.23% 227388 3000 1.32% 444968 1000 0.22% 475223 1000 0.21% 510520 1000 0.20% 575173 1000 0.17% 432575 1000 0.23% 470779 1000 0.21% 359182 1000 0.28% 340106 5000 1.47% 368160 5000 1.36%

ORGANISATION STRUCTURE AT MUL

Maruti Udyog ltd. Has a flat organisation structure with a maximum of three levels.

Head office MD
MFG FIN OTHER

DIRECTOR GM/ DGMS

N CONTROLLER DGMS AGMS

GM

DGMS

AGMS MGRS/AMS

MGRS/AMS

MGRS/AM

SR GM/EX

ENGINEERS(EX) TRAINEES J.E. (TRAINEES)

SR. EX./EX

THE PRODUCTION PROCESS AT MARUTI

STEEL COILS

BLANKING

PRESSING

WELDING

PAINTING FROM VENDOR S FROM VENDOR S FROM VENDOR S

ASSEMBLY

VEHICLE INSPECTION

TEST RUN

SUPPLY & DISPATCH

MARUTI ALL INDIA SALES 3 YR TREND

Segment A1 (Mini - Hatchback) A2 (Compact - Hatchback) A3 (Mid Size) A4/A5/A6 (Exec./Prem./Luxury) C (Van Type) Passenger Cars - MUL 2006- Growt 2007-08 Growt 2008- Growth 07 h h 09 167,56 17% 116,262 -31% 89,223 -23% 1 176,13 47% 271,280 54% 335,136 24% 2 14,173 28% 29,637 109% 31,939 8% NA NA NA NA NA NA 15% 65,019 28% 482,198 26% 885,029 12% 5,204 28% 487,402 24% 1,050,2 46 9% 16% 17% 46% 16% 17% 66,366 522,66 4 948,66 9 4,374 527,03 8 1,129,3 16 2% 8% 7% -16% 8% 8%

59,526 417,39 2 Passenger Cars - Total 758,12 Industry 3 MUV (Utility Vehicles) 3,555 Passenger Vehicles - MUL 420,94 7 Passenger Vehicles - Total 901,15 Industry 0

MARKET SHARE

2005-06 Market Share-Segment A2

TATA 20%

MARUTI 59%

HYUNDAI 21%

2005-06 Market Share-Segment A3

HYUNDAI 16% MARUTI 17% FORD 14% OTHERS 7% HONDA 20% GM 6% TATA 20%

2005-06 Market Share-Passenger Cars

HYUNDAI 17% TATA 16% HONDA 4% FORD 3% GM 1% TOYOTA 1% OTHERS 3%

MARUTI 55%

COMPETITION MODELS SEGMENT

A1 (Mini Hatchback) A2 (Compact Hatchback) A3 (Mid Size) Maruti M800 Zen, WagonR, Alto, Swift Esteem, Baleno Hyundai - Santro & Getz; Tata Indica & Palio; GM - Corsa Sail Hyundai - Accent; Tata - Indigo & Petra; Honda - City; GM - Corsa, Optra, & Aveo; Ford - Ikon, Fusion, & Fiesta Hyundai - Elantra & Sonata; Honda - Accord; GM - Vectra; Ford - Mondeo; Skoda - Octavia & Superb; Toyota - Corolla & Camry; Daimler Chrysler - C,E, & S Class; Mitsubishi - Pajero; Hyundai Terracan & Tucson; Ford Endeavor; Toyota - Prado & Innova; Nissan - X Trail; Honda CRV; GM - Forrester & Tavera; Tata - Sumo & Safari; Mahindra Jeeps, Scorpio, & Bolero Competition

A4/A5/A6 (Exec./Prem./Luxury ) C (Van Type) MUV (Utility Vehicles) Omni, Versa Gypsy, Grand Vitara

COMPETITIVE STRENGTHS
MUL believes that they are well positioned to maintain and enhance their leadership position in the small car segment in India, while continuing to offer products in most segments of the Indian market, on account of their competitive strengths, which include the following: Expertise in small car technology: As a subsidiary of Suzuki, they have access to globally respected technology in the small car segment. They have the advantage of Suzukis expertise in all aspects of small car technology and design, with respect to their products, their manufacturing processes and business practices, the development of their supply chain and the training of their personnel. Extensive product portfolio: Their diverse product range includes cars in segments A, B and C, and utility vehicles. They manufactured five out of the ten models that were sold in the combined A and B segments in India in fiscal 2002. They are the only manufacturer of cars in segment A (priced below Rs.300,000) where they have two models, the Maruti 800 and the Omni. The Maruti 800 has been the largest selling car in India for several years, and continued to have the highest sales volumes of any model, with a market share of 25.3%. The Omni, a versatile vehicle that can seat more passengers than the Maruti 800 or be used as an ambulance or cargo vehicle, had a market share of 10.5% in fiscal 2002. They are also the only manufacturer to sell three distinct models, the Zen, the Alto and the Wagon R, in segment B (priced between Rs.300,000 and Rs.500,000). They believe that theirdominance in segment A and extensive product range in segment B enables us to offer the customer a wider choice in the small car segment than any of their competitors. In addition, the absence of other manufacturers in segments A gives their dealers greater flexibility in promoting models in segment B.

Quality products: In November 2001, they were one of the first automobile manufacturers in the world to receive the ISO 9001:2000 certification. They began to export products in 1988, primarily in order to benchmark our products against international quality standards. They have exported products to approximately 70 countries, including countries in Western Europe. Their products for export are manufactured using the same assembly line as our products for the domestic market. Extensive sales and service network: They believe that they have the largest network of dealers and service centers amongst car manufacturers in India. As of March 31, 2003, we had 178 authorized dealers with 243 sales outlets in 161 cities. They estimate their car parc to be in excess of 3.5 million vehicles. To service this car parc, at March 31, 2003, they had 342 dealer workshops and 1,545 Maruti Authorized Service Stations, or MASSs, which covered 898 cities in India backed by Express Service Centers on 30 highways across the country. In addition to the distribution of their cars, their dealership network is a critical resource in our efforts to provide customers with a one-stop shop for automobiles and automobile related products and services such as automobile finance, automobile insurance, Maruti-certified pre-owned cars available for purchase, and leasing and fleet management, in order to promote customer loyalty. Brand strength: They have been present in the Indian market for almost twenty years and have built their brand on the basis of the values of trust and reliability. Most of their principal competitors have been present in the Indian passenger car market for a significantly shorter period. Certain manufacturers have ceased to manufacture certain products shortly after introducing them, or have left the market altogether. In contrast, they continue to support the maintenance of their products. NFO Automotives 2002 Total Customer Satisfaction Survey ranked Maruti products as No. 1 in the Economy, Premium Compact and Entry Midsize segments respectively, for 2002. Integrated manufacturing facility: Their manufacturing facility comprises three integrated plants with flexible assembly lines located at Gurgaon in the

northern state of Haryana. Their facility has advanced engineering capability and each plant is upgraded on an ongoing basis to improve productivity and quality. Strong vendor base and higher rates of localization: They work closely with their vendor base for the supply of raw materials, components and spare parts of their products. In order to improve quality and generate economies of scale, they have reduced the number of their vendors of components in India from 370 as of March 31, 2000 to 299 as of March 31, 2003, and intend to continue to reduce the number of our vendors. 113 of their vendors at March 31, 2003 were in technical collaboration with foreign entities. As of the same date, we had strategic equity interests through joint venture agreements in 13 of their vendors, who together supply a substantial portion of their purchases of components. A number of their vendors are their dedicated suppliers in that they account for a majority of their turnover.

THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY

Hyundai Motor India Ltd

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 31 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson and Terracan in the SUV segment. The company recorded combined sales of 252,851 during calendar year 2005 with a growth of 17.26% over year 2004. HMIL is India's fastest growing car company having rolled-out over 970,000 cars in just over 80 months since its inception and is the largest exporter of passenger cars with exports of over Rs. 1,800 crores. HMIL has recorded a growth of 27.2% in exports over the year 2004. HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant, which will produce 300,000 units per annum, raising HMILs total production capacity to 600,000 per annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility .HMIL is investing to expand capacity in line with its positioning as HMCs global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 157 to 200 this year. And with the companys greater focus on the quality of its after-sales service, HMILs service network will be expanded to over 1,000 in 2006. Propelled by the strong performance in year 2005, Hyundai Motor India is on the threshold of yet another grand milestone of rolling out its One millionth car which is expected soon.

Tata Motors
Tata Motors is one of the largest companies in the Tata Group with a total income of US$ 2.35 billion. More than 3 million Tata vehicles ply on Indian roads making Tata a dominant force in the Indian automobile industry. Tata Motors is India's only fully integrated automobile manufacturer with a portfolio that covers trucks, buses, utility vehicles and passenger cars. It would be no exaggeration to say that Tata Motors provides the wheels for India's growth. Tata Motors has the unique distinction of giving India its first and only indigenously built passenger car - The Tata Indica and the premium feature sedan - The Tata Indigo. The Indica, launched in 1998, reached the 2,50,000 sales mark within 52 months of launch.

Mode of Communication
They reach to customers by giving advertisements in the T.V. or through radio, through wall painting, or through promotional activities like weakly haats, mela or local bazaars and most importantly, their policies were flexible and they could adapt to fast changing marketing situations. Through Internet, E-mail usage, communication media like telephone and mail facility this mode of communication is possible to a great extent. ITCs extensive Indiawide distribution network enables its greeting cards reach over 12,000 multi brand outlets in over 700 cities across the country. In the last three years, 10,000 greeting card designs have reached these outlets with the help of ITC's web-enabled ecommerce model Communication Model ITC markets

Opportunity
These days consumers are looking for convenience and instant gratification. Communication media like the telephone and e-mail facilitate communication to a

great extent. But many greeting card sites are moving from a 'free' to a 'pay' mode. This could be an emerging revenue earning opportunity for content providers.

Threats
'Expressions' which is a competitor of ITC in this segment is currently the second biggest greeting card brand in India with a market share of 20 per cent. ITC has a five per cent share in the stationery market. The greeting card market in India is estimated to be around Rs. 250 crore in terms of yearly consumer spent. The unorganized sector in the greeting card market will be close to 40 per cent. The organized sector, controlling 60 per cent of the market, is divided between ITC, Archies and Hallmark. While Archies has licensing agreements with international greetings brands

FINDINGS FROM SURVEY

Total Number of Respondents: 15 Officials Number of Respondents 5 2 2 5 1

Maruti Udyog Limited Hyundai Motors India Ltd General Motors Tata Motors Ford India Limited

Do you face problems in maintaining good and effective relationships with customers?
Quite Frequently Frequently Udyog 2 3 3 2 2 2 1 Average Rarely -

Maruti Limited Hyundai Motors India Ltd General Motors Tata Motors Ford India Limited

Rarely 0%

Average 0%

Quite Frequently 33%

Frequently 67%

Findings: According to the responses of the respondents it can be concluded that all the respondents face problems in maintaining good and effective relationships with

customers. With changing customer needs its quite obvious that maintaining good relations with customers need an effort on part of the Dealers and Manufacturers.

How well can your company identify its end user customers?
Maruti Udyog Limited: According to the officials of MUL, the companys endeavor is to be close to the customer, to anticipate and fulfill their needs. They believe that the new business initiatives taken by MUL have expanded the scope of this relationship. Maruti offers auto insurance, auto finance, corporate lease and fleet management and resale of pre-owned cars in partnership with its dealers. For the first time, car customers in India are able to access these services through a one-stop shop, backed by the leader brand. The way they look at it is that this will provide complete mobility solutions to the Maruti customer. This also enables them to extend their relationship with the customer beyond the point of purchase to the entire ownership life cycle. Since these services play a vital role in the car customer's ownership experience, the new initiatives enable them to offer Maruti owners greater value, assurance and convenience. Hyundai Motors India Ltd: According to the officials of Hyundai Motor India is at a very exciting stage in India today. They are experiencing tremendous growth - which is a true sign of enjoying customer confidence. In order to strengthen their position further in the Indian market, they need to continuously work on building their corporate reputation while aggressively positioning their products. For HMI's focus and commitment to the Indian automobile customers is of critical importance. Its been their continuous endeavor to fulfill the entire spectrum of customer needs and desires, across all socio-economic & lifestyle groups.

Can your company differentiate its customers based on their value to you and their needs from you?
Maruti Udyog Limited Hyundai Motors India Ltd General Motors Tata Motors Ford India Limited Yes 5 2 2 5 1 No -

No 0%

Yes 100%

Findings: According to the respondents (officials) at all the Five Automobile Majors their company was able to differentiate its customers based on their value to them and their needs from the company. This is important for the automobile industry because the dynamics of selling cars is changing and manufacturers and dealers who fail to meet the rising needs and expectations of their customers will lose out to those who can. Buying a new car is an experience customer will remember for a long time and ensuring that this experience is a satisfactory one is essential in building brand loyalty and customer advocacy.

How well does your company customize its products and services based on what it knows about its customers?
Highly Customer centric 5 2 2 5 1 Somewhat Customer centric Not Customer centric -

Maruti Udyog Limited Hyundai Motors India Ltd General Motors Tata Motors Ford India Limited

Somewhat Customer centric 0%

Not Customer centric 0%

Highly Customer centric 100%

Findings: All the officials of the Automobile Majors agree that all products and services are highly customer centric and based on the information they know about the customers.

Limitations of the Study

Since the road to improvement is never ending, so this study also suffers from certain limitations. Some of them are as follows: Because of illiteracy, it was a time consuming method in which

continuous guidance was required. Questionnaire method involves some uncertainty of response.

Co-operation on the part of informants, in some cases, was difficult to presume. It is possible that the information supplied by the informants

may be incorrect. So, the study may lack accuracy.

CONCLUSION
The price of a car is just one-third of what it cost you over its lifetime. Running and maintaining it make up the other two-thirds. Take into account resale value and its real cost becomes clear. Maruti Suzuki stands for value as much as it stands for performance. In spite of rising input costs, we try our best to keep prices down. Their running costs and resale values are unbeatable too. Nothing matches the delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki owners stated that they would definitely recommend the car they drive to someone else. Infact, you dont buy a Maruti Suzuki. You invest in it. After the rash of new cars launches the past two years, the relative lull in the auto industry is showing up in the customer satisfaction indices. According to the 2005 four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist division of TNS Automotive, the automobile ownership experience or customer ownership experience has declined in all areas compared to 2004. The study is one of the largest syndicated automotive studies in India, representing the responses of more than 7,000 new car buyers. The comprehensive study covers over 50 models with customer evaluations taken in the key areas of sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image, and costof-ownership. The TCS index score provides a measure of satisfaction and loyalty a given model enjoys with its customers. According to TNS Automotive, the decline is predominantly for older, small and entry mid-size car models. The ageing of these models seems to be posing a stiffer challenge for manufacturers to sustain past performance levels at a time when customer expectations are rising sharply.

BIBLIOGRAPHY
Reference Books, Journals, Newspaper, Web Sites, Reports, etc are to be listed, out here

Books
Kotler Philips, Marketing Management Analysis, Planning Implementation & Control Edition 1998. Prentice hall of India Ltd. New Delhi Magazines Jourals & Newapaper Name of the articles, Business Today: 15-22May 2000 Name of the articles, The times of India . Mumbai: 21st May 2000

www.google.com www.yahoo.com www.maruti.com

ACKNOWLEDGEMENTS
I owe my sincere thanks and gratitude to Mr. RAHUL SHARMA (Lecturer of IMEC Sagar) who inspired me by his able guidance and was a constant guiding light during the course of project study. The support and knowledge provided by him has been a great value addition for me and will go a long way in building a promising career. Last but not least, I am also thankful to all the respondents of my survey without whom the project would not have been completed successfully.

(NITIN SAINI) M.B.A. 1ST SEM. IMEC College Sagar

PREFACE
The student of M.B.A. 1st Year has to undergo Project Report as a part of their academic Course. The COMPANY PROFILE OF MARUTI SUZUKI, is a part of this training. The main purpose of undergoing such a searching is to know the customer satisfaction in Maruti company.

This report is preferred as the COMPANY PROFILE OF MARUTI SUZUKI, The report was conduct of the Maruti Company website. This report presents the introduction of management profile of Maruti Company along with limitation, suggestion. I have prepared my report honestly & tried my level best to cover all the aspect regarding

the company. All the information is on the basis of the secondary data available

NITIN SAINI MBA 1st SEM.

DECLARATION BY THE CANDIDATE

Date.

I declare that the Project report titled

COMPANY PROFILE OF MARUTI SUZUKI,is

my

own

work of of

conducted

under

the

Supervision Department

Mr.

Rahul

Sharma,

Business

Management,

IMEC College, Affiliated by Dr. Hari Singh Gour University Sagar.

To the best of my knowledge the report does not contain any work, which has been submitted for the award of any degree, anywhere.

Signature of Candidate

Nitin Saini M.B.A. 1st Sem.

CERTIFICATE
DATE: __________

The

project

report

titled

COMPANY

PROFILE OF MARUTI SUZUKI,in Sagar City

Prepared by NITIN SAINI, under the guidance and supervision of MR. RAHUL SHARMA (Lecturer OF M.B.A. Deptt., IMEC Sagar) for the partial fulfillment of the degree of Master of Business Administration is satisfactory in respect of :-

Comments By Examiner

Supervisor Head

of

Deptt.

1. Contents and presentation of the subject matter 2. Language 3. Embodies the original work of the candidate. 4. Submission within due date

Signature of Examiner Supervisor

Signature of

Signature of H.O.D.

CUSTOMERS QUESTIONNAIRS NAME : -------------------------------------------------------------------------AGE : SEX : ----------------------- OCCUPATION : -----------------------------------------1. Which company four wheeler do you use? a. Hyundai a. Alto others b. M & M c. Maruti d. others d. 2. Which Maruti Wheelers do you use? b. Wagnor c. Maruti 800

3. What do you think about the price of product? a. High a. Newspaper Hoardings 5. What criteria you see when you purchase Maruti Cars? a. Brand Name b. Price c. Quality d. Others 6. Do you feel Maruti Cars price Economic? Yes/ No. & Why?------------------------------------------------------------------------------------------------------------7. If you purchase any other Four Wheeler which one will you buy? -------------------------------------------------------------------------------------------8.. Do you have any complaints? Yes / No ------------------------------------------------------------------------------------------------------------------------------------9. Which facet of product should be focused more whether product quality, Price, Advertisement. -------------------------------------------------------------------------------------------10. Any Suggestion ---------------------------------------------------------------------------------------------------------------------------------------------------------------Date: Signature Thanks for you co-operation & valuable time b. Low b. Magazine c. Reasonable c. T.V. d. 4. How did you come to know about this brand?

CONTENTS

Acknowledgement Certificate Declaration by the candidate Preface

Company profile Products Marketing strategy of Maruti Suzuki Objectives Research methodology Data analysis & interpretation Findings Limitation Suggestion Conclusion Bibliography Questionnaire