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I am thankful to the Dr. Yogeshwari Pathak, Director Prestige Institute of Management &

Research, Indore and Mr. Rahul Srivastava, Regional Manager (MP), Maruti Suzuki India

Limited for providing me the opportunity to carry out the summer internship project with marutiSuzuki limited.I express my deepest and most sincere thanks to my company guide Mr. Saipratap, Manager

Corp. Sales, Maruti Suzuki India Limited and my Faculty Dr.Sachin Mittal, Faculty FinancePIMR Indore for providing the guidance and helping me in conducting the project.

The project would not have completed without the hearty support and guidance of all the fellowmembers.

I also take this opportunity to thank all MSIL Executives, without their Co-operation the projectwill not be completed.

Mr. Manish Kaushal(Prestige institute of management and research Indore)

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Executive Summary

Strategies for promoting maruti vehicles to fleet operators

The project is concerned with a well known car manufacturing company maruti Suzuki India Ltd(MSIL), Regional Office, Indore (Madhya Pradesh), Headquartered at New Delhi

The objective of the project is to study the Vehicle Purchase, Usage & replacement pattern bythe major fleet operators based at Indore & Bhopal.

The project involved collection of related information by face to face interview with the fleet

owners & analyzing the gathered data and subsequently suggested the some key strategies toincrease its fleet sales in the sample we have taken.

Apart from that study gives a detailed insight about the key reasons behind small market share in

this sector thus it includes data collection analysis of gathered information from various fleetoperators.

The Maruti Suzuki is the Market leader in the passenger sales in India around 55.4% Marketshare, but when it comes to purchase by fleet operators, the companys market share is very less.

The study involved designing strategy to educate the operator on the Cost of ownership aspect.

The study shows some important findings which would be very helpful in building the rightstrategies like

y Relationship building with the major operators by the local dealer

y Educating customer on the cost of ownership aspect

y Packaging the offer, like offering Annual Maintenance Contract (AMC), Finance package& Buy Back option

y Periodic fleet servicing camp (Good Will Gesture)

y Inviting Fleet operators to new product launches & dealership / MSIL Events

Further the study serves for the organization as a database in the sense it will give details aboutthe various fleet operators Fleet Size, Usage pattern, Replacement cycle & Contact details

which can help in dealer alignment for serving the customer better and pitch maruti vehicle salesto the user.

Consequently we propose the cost of ownership which easily explains why maruti should

purchase by fleet operators.

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Abstract

This study is concerned with a well known leading player in Indian passenger car market

segment Maruti Suzuki India Ltd.

The projects prime focus is on fleet operators sales of its vehicles in various fleet operators ofIndore and Bhopal.

Apart from that study gives a detailed insight about the key reasons behind low market share inthis sector thus it includes data collection analysis of gathered information from various fleet

operators.

The Maruti Suzuki is the best seller of car in India around 55.4% Market Share but negligiblepresence in fleet operations (< 20%) in this sector. Therefore some key strategies are required to

boost the sale and close look on the competitors.

The study shows some important findings which would be very helpful in building the rightstrategies like.

y

Major fleet operators in Bhopal and Indore those have big number of vehicles fromvehicle purchasing prospective, so as to stress on building relationship with them .

y Which is the major player in this sector (competitor)

y Which type of vehicles are used /preferred by Fleet / Taxi operator.

y Fleet operators frequently replaced their cars rapidly.

Further the study serves for the organization as a database in the sense it will give details aboutthe various fleet operators like number of cars they have which brand they have in their fleet

operation contact details which can help the organization in boost more business.

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HISTORY OF MARUTI SUZUKI:

Maruti Suzuki India Limited (MSIL) was established in Feb 1981 through an Act of

Parliament, as a Government company with Suzuki Motor Corporation of Japan holding 26

per cent stake. It was entrusted the task of achieving the following:

y Modernization of the Indian Automobile Industry.

y Production of vehicles in large volumes

y Production of fuel efficient vehicles.

The Joint Venture agreement was signed between Government of India and Suzuki Motor

Company (now Suzuki Motor Corporation of Japan) in Oct 1982. Maruti collaborated with

Suzuki of Japan to produce the first affordable car for the average Indian. India's largest

automobile company, it entered the Indian car market with the avowed aim to provide high

quality, fuel - efficient, low - cost vehicles. Its cars operate on Japanese technology, adapted

to Indian conditions and Indian car users. In the small car segment it produces the Maruti

800 and the Zen. The big car segment includes the Maruti Esteem and the Maruti

1000.Maruti Suzuki was born as a Government of India company, with Suzuki as a minor

partner, to make a peoples car for middle class India.

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The old logo of Maruti Suzuki India Limited.

Later the logo of Suzuki Motor Corp. was also added to it.

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GET TO KNOW COMPANY BETTER.

Maruti Suzuki India Ltd

Type Public (BSE MARUTI, NSE MARUTI)

Founded 1981

Headquarters Gurgaon, Haryana, India

Key peopleShinzo Nakanishi, CEO

Jagdish Khattar, Managing Director

Industry Automotive

Products Cars

Revenue 301,197 million

Employees 7,600

Parent Suzuki

Website www.marutisuzuki.com

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ORGANISATION STRUCTURE

MEO (M&S)

MD

East zone (CBH) West zone

(CBH)

North Zone

(CBH)

South Zone

(CBH)

RM East 2

RM East 1RM East 4

RM East 3

RM

West2

RM

West1 RM

West3

RMWest4

RM North

1

RM North

4

RM North

2

RM

North3

RM South

1

RM

South2

RM

South3

RMSouth4

MD: Managing director

MEO: Management executive officer

RM: Regional manager

CBH: Commercial business heal

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FINANCIAL STATUS OF THE ORGANIZATION

Equity structure 54.21% Suzuki,45.79% with Fls,Public

Net profit 249762 in year 2010 audited

Sales 2895847

Market share 54%

Manpower 7,600 employees

Car models 13

Car market leader Maruti Suzuki India Limited sold a total of 95,649 vehicles in January 2010. This includes 14,562 units of

exports.

This is the highest ever domestic as well as total sales for the company.

The company had sold 67,005 vehicles in the domestic market in January 2009.

The sales figures for January 2010 are given below:

Segment ModelsIn January Till January April'08 -

March'092010 2009 % Change 2009-10 2008-09 % Change

A1 M800 2494 5571 -55.2% 27088 42878 -36.8% 49383

C Omni, Eeco* 10923 7759 40.8% 79782 64286 24.1% 77948

A2Alto, Wagon-R, Zen,

Swift, A-Star, Ritz*58540 46899 24.8% 518047 405650 27.7% 511396

A3 SX4, D'zire 8995 6590 36.5% 78608 59290 32.6% 75928

Total Passenger Cars 80952 66819 21.2% 703525 572104 23.0% 714655

MUVGypsy, Grand Vitara

*135 186 -27.4% 2970 5560 -46.6% 7489

Domestic 81087 67005 21.0% 706495 577664 22.3% 722144

Export 14562 4774 205.0% 120097 49644 141.9% 70023

Total Sales 95649 71779 33.3% 826592 627308 31.8% 792167

* Ritz launched in May09, Grand Vitara 2.4 launched in July09, Eeco launched in January 10

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RECRUITMENT AND PROCESS

y Laterals through consultants / References

y Fresher through campus recruitmentsy Online CV uploads at the website

15~45 days induction training covering 1 to 2 days at each of the division ,maruti driving school,soft skills (HR Training) and 1wk induction at HO (Sales and marketing function).

EMPLOYEES:

The company has enforced highly conducive working environment for its employees. MSIL does

not support favoritism in recruitment, promotion, providing compensation, or termination based

on caste, religion, gender or age. The company offers equal opportunity for growth to all

employees.

During the year, the company finalized its policy on affirmative action as per the guidelines laid

down by Confederation of Indian Industries.

Maruti culture:

Open office culture, easy accessibility and innovative HR practices comprise the Maruti culture.

Our Human Resources team views an employee as an "internal customer" and strives to deliver

maximum satisfaction to him through transparent, sensitive and innovative HR practices.

Participative management, team work and kaizen, communication and information sharing are

the pillars of employee-management relationship.

Following our open office culture we have a flat organizational structure with only three levels

of responsibilities via Board of Directors, Division Heads and Department Heads. Carrying the

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philosophy forward, we have an open office, common uniforms and a common canteen for all to

create an environment of trust, transparency and a sense of belonging amongst employees.

Growth opportunities:

Maruti Suzuki offers one of the best environments to learn and grow and to be associated with

some of the best processes and methods in the business of automotive manufacturing. Apart fromthis, the company offers many services like Finance, Insurance, and Driving School.As with any progressive world class company, Maruti Suzuki 'listens' to employees and acts on

the feedback. Many innovative schemes and practices through the years are results of having agood communication system across the organization

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FACILITIES PROVIDED BY THE COMPANY and production/operation of

the organization:

The Gurgaon facility:

Our facility in Guragoan houses three fully integrated plants. While the three plants have a total

installed capacity of 350,000 cars per year, several productivity improvements or shop floor

Kaizens over the years have enabled the company to manufacture nearly 700,000 cars per year at

the Gurgaon facilities.

The entire facility is equipped with more than 150 robots, out of which 71 have been developed

in-house. More than 50 per cent of our shop floor employees have been trained in Japan.

The Manesar facility:Our Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki

India Limited's (MSIL) global ambitions. The plant was inaugurated in February 2007. The

World Car derived from concept A-Star would be manufactured here. At present the plant rolls

our World Strategic Models Swift & SX4 and DZire.The plant has several in-built systems and

mechanisms.

There is a high degree of automation and robotic control in the press shop, weld shop and paint

shop to carry on manufacturing work with acute precision and high quality.The plant is designed

to be flexible: diverse car models can be made here conveniently owing to automatic tool

changers, centralized weld control system and numerical control machines that ensure high

quality.

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The plant at Manesar is the company's fourth car assembly plant and started with an initial

capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year by October

2008.

Diesel Engine Plant- Suzuki Power train India Limited:

Suzuki Power train India Limited the diesel engine plant at Manesar is Suzuki & Maruti's first

and perhaps the only plant designed to produce world class diesel engine and transmissions for

cars.

The plant is under a joint venture company, called Suzuki Power train India Limited (SPIL) in

which SMC holds 70 per cent equity the rest is held by MSIL.

This facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be

scaled up to 300,000 engines/annum by 2010.

Gurgaon 300 acres capacity 700,000 cars/annum

Manesar 600 acres capacity 300,000 cars/annum

Diesel Engine plant capacity 200,000 units/annum

Suppliers Park 100 acres

Total Capacity Over 1 million

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PRODUCT PORTFOLIO:

CARS

Maruti 800

y Maruti 800 STD BS IIIy Maruti 800 AC BS IIIy Maruti 800 Duo

Omni

y 5 seater Maruti Omniy 8 seater Maruti Omniy LPG Maruti Omni

Maruti Alto

y Altoy Alto Lxy Alto Lxi

Maruti Zen Estilo

y Maruti Zen Estilo Lxy Maruti Zen Estilo Lxiy Maruti Zen Estilo Vxi

WagonR

y WagonR Lxy WagonR Lxiy WagonR Vxiy WagonR Axy WagonR Duo

Eeco

y 5 seatery 5 seater ACy 7 seater ( DX & DX2)

Maruti Gypsy

y Hard topy Soft top

SX4

y Maruti SX4 Vxiy Maruti sx4 zxi

Swift

y Swift LXiy Swift VXiy Swift ZXiy Swift Diesel'Ldi'y Swift Diesel 'Vdi'

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Maruti Gypsy

y Hard topy

Soft top

Grand VitaraSwift DZire

COMMERCIAL VEHICLES

>>AMBULANCE

Omni Ambulance

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SWOT analysis of the company:

Strengths

The Quality AdvantageQuality Service Across 1036 CitiesA Buying Experience Like No Other

WeaknessesCommodity Price RisksExchange Rate Risks

Opportunities

Leading GrowthIncreased consumer spending

Threats

Risk FactorBusiness RisksThreat from Competitors

MARKET SHARES OF MARUTI SUZUKI:.

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RECOGNITION FOR THE WORK DONE IN PREVIOUS YEARS:

The Company is India's most awarded car Company. Some of the awards won by the Companyduring the year under review are:

y The prestigious Golden Peacock Award for excellence in the field of EnvironmentManagement in Automobile Sector.

y JD Power Customer Satisfaction Award. This award has been received for the 8th time ina row.

y 2007 India IQS Award for Maruti Swift which has been highest ranked model in thePremium Compact car segment.

y 2007 India APEAL for MarutiZen Estilo which has been highest ranked model inCompact car segment.

y 2007 India APEAL for Maruti Swift which has been highest ranked model in PremiumCompact car segment.

y 2007 India APEAL for Maruti SX4 which has been highest ranked model in Midsize carsegment.

y "Car Manufacturer of the Year" Award by NDTV.

y ICICI-NDTV Profit Viewers Choice Award for Maruti SX4 in the Midsize car segment.

y CNBC TV-18 Autocar Midsize Car Award for Maruti SX4.

y CNBC TV-18 Autocar Value for Money for Maruti SX4.

y CNBC TV 18 Autocar Award for Viewers Choice for Maruti SX4.

y CNBC TV-18 Autocar Manufacturer Award.y "Manufacturer of the Year" Award in the Passenger Car category by Auto Monitor.

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FURTURE PROSPECTS as Suggestions:

y To develop capability for full model change.

y To upgrade R&D capabilities for total evaluation of products.

y Emphasis on VA-VE & innovative cost reduction ideas to cut down costs.

y Carry out continuous up-gradation of existing models.

y Maximum localization for achieving cost reduction in existing as well as new models.

y Developing knowledge of costing of various Automotive Technologies through standard

cost tables and cost benchmarking.

y Cost planning of new products coinciding with the new Product planning to put cost in

the right perspective at the concept stage and give target cost to designers.

y Design in cost reduction to reduce costs from concept stage itself.

y Develop more products with alternative fuel option.

y Keeping promises to get closer to out the customers.

y Using technology to give our customers more for less.

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Chapter 1

Introduction

The study deals with the Fleet operators and the promotion of maruti Suzuki vehicles in thissector of market to study how to increase the sale in fleet.

The prime purpose of the project is to analyze the basic requirements of fleet operators trend

sales of vehicles in fleets (tour operators) via collecting the information from the same surveyand then suggesting some strategies to improve the sales of the vehicles in this sector.

At current organization have a good chance to penetrate in this market.

The apart from the analysis and building strategies the study included the building the database

of fleet operators (taxi operators ) which would help the organization in leveraging morebusiness in this sector of market the database comprise the details of the name of the operator

,address email if they have phone number and mobile number if any they have number ofvehicles they have model wise and brand wise total number of vehicles they have and at the last

remarks if they are interested in any of our product and such problems they faced what they needwhat they required so that its easy for organization keep in touch with them.

Therefore the project emphasizes on how to boost the sales in fleets

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Fleet operators

Fleet operators are key players in Bhopal and Indore as they purchase the vehicle most

frequently they replaced their vehicles more rapidly than any other section of the market.They are important for the company

Market wise: keep in touch with them explain them that the cost of operation of maruti vehicle is

less than any other vehicle they understand and boost the sales.

Profit wise: most frequent purchaser of vehicles mostly change their vehicles after 3 yrs about90000 kms.help the organization to make profit.

Targeting the major ones help the organization to boost the sales.

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Methodology

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The study and its objectivesy The objectives of the project are to study the vehicle purchase usage and

Replacement pattern fleet taxi operators across the city of Bhopal and Indore.

y The study involve in investigation of the fact that very few maruti cars are

purchase by the fleet taxi operates.

y To boost the sale in this sector of market.

y To study the cost of ownership and calculate for current year.

y To promote the maruti vehicles

y To make a better understanding between organization and fleet operators.

y To educate fleet operators about the maruti vehicles and its variants.

The sample:

BHOPAL:

INDORE

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THE TOOL

y DATA collection by Personnel visits:

See annexure 1

ANALYSIS PHASE 1:

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Collect the data from fleet operators of Bhopal and analysis that:

y Tata Indica is the leading player with 49% of market share.

y Tata sumo and gm tavera having 14% of market share

y Maruti Esteem having 7% of market share.Tata motors is a leading player in Bhopal region.

MARUTIESTEEM

7%

TATA INDICA

29%

TATA INDIGO

7%

TATA SUMO

14%

TATA SAFARI

7%

GM TAVERA

14%

M&M SCORPIO

7%

M&M XYLO

7%

OTHERStempo

travle

7%

BHOPAL

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Analysis:-

y Tata again leading player of the market with

40% Tata indica and Tata indigo 15%.

y Toyota comes after Tata motors in the market.

Discussion and Interpretations of Result

y Fewer operators purchase Maruti car.

y

Tata is the leading player in Bhopal and Indore.

y Except maruti esteem and maruti Omni no more variant is present in fleets.

Reason:

1. Non availability of suitable/economical entry level diesel hatch back/Sedan (like Indica /Indigo)

TATA INDICA

40%

TATA INDIGO

15%

GM TAVERA

5%

HONDA CITY

5%

TOYOTA

INNOVA

10%

TOYOTA QUALLIS

5%

M&M SCORPIO

5%

M&M BOLERO5%

M&M XYLO

5%

OTHERS

Tempo travler

5%

Chart Title

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2. Non available of Multi Utility Vehicle (MUV) like Sumo, Innova, Scorpio, Xylo, Tavera etc.

3. Lack of Interaction of Dealer Executives with the fleet operators.

4. Lack of Financing Arm of the Manufacturer (Like Tata Finance), who provide vehicle at lowdown payment.

5. Most of the operators not aware to the cost of operation of vehicle which is good in case ofmaruti vehicles.

6. Lack of awareness of the product line up of MSIL(Some of the operators were keen to buy

Maruti Gypsy, but had assumed that the company has discontinued the production)

Analysis phase 2:-

Implications of the study:

COST OF OWNERSHIP

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The price of a car is just one-third of what it costs you over its lifetime. Running and

maintaining it make up the other two-thirds. Take into account resale value and its real costbecomes clear.

Maruti Suzuki stands for value as much as it stands for performance. MSIL vehicles running

costs and resale values are unbeatable too.

MSIL has been ranked No.1 in customer satisfaction, for an unprecedented ten years in a row(J D Power Customer Satisfaction Index Study conducted in 2009). A feat no other car market

leader has ever accomplished anywhere in the world even once.

We calculate the cost of ownership on the basis of data we collect from different sources seeannexure 2 and calculation done on the basis of data as follows

overall calculation of Maruti

swift

initial cost 488648

mileage cost 182142.857

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Tyre cost 4700

maintenance

cost 33873

resale value

factor 128648

Total 838011.857

overall calculation

of Tata indica

initial cost 412304

mileage cost 224999.99

tyre cost 5200

maintenance cost 23431

resale value factor 212304

Total 878238.99

878238.99 - 838011.857= 40227.133

Now its clear that the cost of operation of Tata indica is costlier than swift

Network

To reach our customers, we have built a strong sales network of 600 outlets spread over 393 towns and cities.

We provide maintenance support to customers through 2628 workshops spread over 1200 towns and cities.

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SUPPLIERS:In manufacturing where a sizeable percentage of inputs are bought from vendors and suppliers,

the ability to continuously improve quality and reduce costs is directly dependent on vendors

doing the same.

In light of this statement, the company guides suppliers in adopting latest technologies, and

transfers its best practices in the areas of productivity improvement, quality enhancement and

cost reduction. The company has set up Maruti Centre for Excellence (MACE) in collaboration

with some of its suppliers to achieve these objectives. With the help of MACE, now the company

is assisting its direct suppliers in upgrading their sub-suppliers or (Tier-2 suppliers).

DEALERS:The company has been passionately building its sales and service network since its inception.

The company has set up 16 Regional Training Centres across the country to continuouslyupgrade skills of dealer employees as per new technologies and customers'requirements.

In recent years, the company has conducted a comprehensive national survey of its dealer

employees to gauge their level of satisfaction. By many accounts, this is a rare initiative by anyprincipal company. Based on the results of the survey, the company formed a cross functional

team of senior management from sales, network development and HR to identify an action planto improve satisfaction levels of dealer employees. One of the initiatives, for instance, was

providing car loans at low rates of interest for good performers with repayment guaranteeprovided by the dealer

Recommendations:-

y Conduct periodic fleet /tour operators meet to explain the benefits to the user

y Frequent visit by dealer executive to the operator

y Keep in touch with fleet operators

y Frequently research on their requirements

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y Explain the cost of ownership to them

y Keep eye on competitors.