MARKETING STRATEGY OF MARUTI SUZUKI (PVT

A

PROJECT REPORT

ON

A STUDY OF COUSTMER STATISFACTION

TOWARDS TIRUPATI STRUCTURALS LIMITED

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION (SESSION: 2013-15)

M.B.A. 4th SEMESTER

SUBMITTED TO:- SUBMITTED BY:-

KURUKSHETRA UNIVERSITY MANOJ KUMAR

KURUKSHETRA MBA (GEN) FINAL ROLL NO.- 3010199

USM (KUK)

UNIVERSITY SCHOOL OF MANAGEMENT

KURUKSHETRA UNIVERSITY , KURUKSHETRA

HARYANA- 136119

ACKNOWLEDGEMENT

Gratitude is not a thing of expression; it is more a matter of feeling.

There is always a sense of gratitude which one express for others for their help and supervision in achieving the goals. I too express my deep gratitude to each and every one who has been helpful to me in completing the project report successfully.

First, of all, I am highly thankful to Dr. SIDARTH BHARDWAJ (Professor), for allowing me to pursue my Project Report on MARKETING STRATEGY OF MARUTI SUZUKI.

I give my regards and sincere thanks to Dr. MANISHA (Assistant professor) who

has devoted his precious time in guiding me and helping me it with in time. I am indebted to the Bank employees who supported me in handling my queries. I feel self-short of words to thanks my parents and friends who had directly or indirectly instrumental in the completion of the project.

PREFACE

Theoretical knowledge without practical knowledge is of little value. In order to achieve positive & concrete results along with theoretical and practical concept the exposure of real life situation existing in corporate is very much needed. To fulfill this need the management course has a provision for the practical training program. I thank my institute to provide us such opportunity having training period in our course so that students can have real feeling of industrial life.

I took my summer training MARUTI SUZUKI PVT. LTD. at GURGAON . It was my fortune to get training in very healthy atmosphere. I got ample opportunity to views the overall working of MARKETING STRATEGIES OF MARUTI SUZUKI PVT. LTD..

In the coming pages an attempt has been made to present a comprehensive report is concerning different aspects.

DECLARATION

I hereby declare that the following documented project report titled MARKETING STRATEGY OF MARUTI SUZUKI (PVT) LIMITED . is an original and authentic work done by me for the partial fulfillment of Master of Business Administration degree program

I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and original to the best of my knowledge & I have not submitted it earlier elsewhere.

Simant Kumar

MBA(Gen.)Final

ROLL NO.-40

USM(KUK)

EXECUTIVE SUMMARY

In this project we are trying to find the marketing strategies done by Maruti Suzuki and we are also trying to study the sales trend followed by Maruti Suzuki. In our study we had followed different method to find and analyze the data we are using primary data as well as secondary data. Before our study lots of study is being done but no one had tried to research on Maruti Suzuki marketing strategies and its effect on sales trend. We had used the questionnaire method to study the Maruti sales trend we had asked question to dealers. What modification should Maruti make in its cars to take an edge over competitors? We are also using secondary data to analyze the sales trend of Maruti Suzuki. In which we had studied the Maruti shares condition in the market. Its profit and lose its market share and many more. We had analyzed where Maruti having an edge over competitor and where it is lacking behind. How it would improve its sales trend. What are strategies for the future prospects of Maruti in Indian cars market.

TABLE OF CONTENTS

S.NO. TITLE

1. INDUSTRY PROFILE

2. COMPANY PROFILE

3. TOPIC OF THE STUDY

4. LITERATURE REVIEW

5. RESEARCH METHODOLOGY

6. DATA ANALYSIS & INTERPRETATION

7.1 FINDINGS OF THE STUDY

7.2 SUGGESTIONS

7.3 CONCLUSION OF THE STUDY

7.3 SUGGESTIONS

7.4 BIBLIOGRAPHY

7.5 ANNEXURE

1. INDUSTRY PROFILE

Initially, in the post-liberalization period, the automotive sector, especially the passenger car segment, saw a boom, derived primarily from economic vibrancy, changes in Government policies, increase in purchasing power, improvement in life styles, and availability of car finance. The passenger car industry was finally deregulated in 1993. However, the automobile industry, which contributed substantially to the industrial growth in FY1996 failed to maintain the same momentum between FY1997 and FY1999. The overall slowdown in the economy and the resultant slowdown in industrial production, political uncertainty and inadequate infrastructure development were some of the factors responsible for the slowdown experienced. In FY2000, the sector experienced a turnaround and witnessed the launch of many new models.

Two things that stunted growth of this industry in the past have been low demand and lack of vision on the part of the original equipment manufacturers (QEMs). However, the demand picked up after the liberalization of the regulatory environment, and global QEMs- who enjoy scale economies both in terms of manufacturing and research and development (R&D) - entered the Indian market. This has resulted in a big shift in the way business is conducted by suppliers, assemblers and marketers.

PASSENGER CAR INDUSTRY IN INDIA: HIGHLIGHTS

Passenger car sales are expected to increase at a compound annual growth rate (CAGR) of 8% over the period FY2004-2007. The six broad segments in the car market today are- Mini, Compact, Midrange, Executive, Premium and Luxury. In the medium term, growth in the Indian passenger car industry is expected to be led largely by the Compact and Mid-range Segments.

The critical success factor has changed from price to price value.

In terms of engine capacity, the Indian passenger car market is moving towards cars of highest capacity.

With the launch of new models from FY2000 onwards, the market for MUVs has been redefined in India, especially at the upper end. Currently, the higher-end MUVs, commonly known as Sports Utility Vehicles (SUVs), occupy a niche in the urban market. With the success of SUVs, the line of distinction between passenger cars and MUVs in the Indian market is getting increasingly blurred.

Domestic car manufacturers are now venturing into areas such as car financing, leasing, and fleet management, and used-car reconditioning /sales, to complement their mainstay-business of selling new cars.

TRENDS IN THE INDIAN PASSENGER CAR INDUSTRY

KEY DEVELOPMENTS IN THE INDUSTRY

COMPANY NAME

DOMESTIC SALES

MARKET SHARE

APR-AUG 2011

APR-AUG 2012

GROWTH

APR-AUG 2013

APR-AUG 2014

Daimler Chrysler India Pvt Ltd

633

662

4.6

0.2

0.2

Fiat India Automobiles Pvt Ltd

2907

635

-78.2

0.9

0.2

Ford India Ltd

8852

6944

-21.6

2.8

2.1

General Motors India Ltd

7179

4981

-30.6

2.3

1.5

Hindustan Motors Ltd

5610

5626

0.3

1.8

1.7

Honda Siel Cars India Ltd

13813

17560

27.1

4.4

5.3

Hyundai Motor India Ltd

48299

63140

30.7

15.3

19

Maruti Udyog Ltd

162007

169606

4.7

51.4

51.1

Skoda Auto India Ltd

3003

3439

14.5

1

1

Tata Motors Ltd

58548

55536

-5.1

18.6

16.7

Toyota Kirloskar Motor Ltd

4519

4030

-10.8

1.4

1.2

Total Passenger Car Sales

315370

332159

5.3

100

100

During April August 2012, the passenger car sales in India at 332159 units, marked a growth of 5.3%over the previous year. The growth in the domestic sales of passenger cars was led by strong growth in volumes reported by compact and mid size segments. While the share of mini and executive segments declined in the period under study, the share of other segments increased. For instance, the share of compact segment in the domestic car sales increased from 59.7% in April August 2011 to 64.9% in April August 2012, mid size segment from 20.5% to 22%, and the share of Premium segment was stagnant at 0.7% in the same period.

KEY DEMAND DRIVERS

Traditionally, disposable income was perceived as the key factor driving passenger car demand. But over time, other factors that are known to have an impact on demand have emerged. These include the need for greater mobility, non- availability of public transport services, availability of cheap finance, development of the used-car market, introduction of new technologically superior models, increasing levels of urbanization and changing consumer profiles.

SEGMENT ANALYSIS

0%

10%

20%

30%

40%

50%

60%

70%

80%

yes

no

cant say

yes

78%

no

4%

cant say

18%

MINI

COMPACT

MID-SIZE

EXECUTIVE

PREMIUM

LUXURY

Vehicle Length

5000

Maruti Udyog Ltd

800

Alto

Esteem

Omni

Zen

Baleno

Wagon R

Altura

Versa

Hyuindai Motor India Ltd

Santro

Accent

Elantra

Sonata

Hindustan Motors Ltd

Ambassador

Contessa

Mitsubishi

Lancer

Fiat India Automobile Ltd

Palio

Siena

Uno

Adventure

Weekend

General Motors India Ltd

Corsa Sail

Opel Corsa

Opel Vectra

Opel Astra

Opel Swing

Honda Siel India Ltd

City

Accord

Ford India Ltd

Ikon

Mondeo

TELCO

Indica

Indigo

DalmierChrysler India Ltd

Mercedes Benz C Class,M Class,SL

Mercedes Benz E Class

Mercedes Benz S Class

Skoda India Ltd

Octavia

Toyota Kirlosker Motor Ltd

Corolla

Camry

2. COMPANY PROFILE

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 May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries.

The company annually exports more than 30,000 cars and has an extremely large domestic market in India selling over 500,000 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 Alto tops the sales charts.

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, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Marutis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions.

Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983.

Maruti Suzuki offers 10 models, ranging from the peoples car, Maruti 800, for less than Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and luxury SUV, Grand Vitara.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzukis technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient.

Maruti is clearly an employer of choice for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners.

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for seven years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner, to make a peoples car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Marutis mission to motorize India.

SERVICES OFFERED

The following products are offered by Maruti Suzuki:-

1. Maruti 800: Launched 1983. Largest selling car in India, until 2004. Cheapest car in India. 3 Face-Lifts.(P)

2. Maruti Omni: Launched 1984. 2 Face-Lifts.(P)

3. Maruti Gypsy: Launched 1985.(P)

4. Maruti Wagon-R:Launched 1999, 2 Face-Lifts.(P)

5. Maruti Alto: Launched 2000. Currently the largest selling car in India. 1 Face-Lift.({{Tooltip|P|Petrol

6. Maruti Versa(2003-) (P)

7. Maruti Zen Estilo(2005-) (P)

8. Maruti Suzuki Swift 1 very small face-lift(2006- ) (P & D)

9. Maruti Suzuki SX4 (May 2007- ) (P & D)

10. Maruti Grand Vitara Sports Utility Vehicle Launched in (July 2007- ). Imported(P)

11. Maruti DZiRE Sedan Version of swift launched in (March 2008- ) (P)

12. Suzuki Splash

13. Suzuki A-Star

14. Maruti Omni Face-Lift in 2009

15. New Mini-SUV in 2010 Likely to be a four-door Jimny.

16. New Luxury Sedan in 2010 Likely to be a production version of the Kizashi

17. New Swift in 2011

18. New Alto 800 2012

GENERAL DISCRIPTION OF MODELS

0%

10%

20%

30%

40%

50%

60%

70%

80%

yes

no

cant say

yes

78%

no

4%

cant say

18%

MARUTI 800:-

Maruti 800 is a city car manufactured by Maruti Udyog in India .It used to be the largest selling car in India until the Maruti Alto recently took that title. It is also exported to a number of countries in southeastern Asia including Bangladesh and Sri Lanka, and to some South American markets (as Chile, sold as Suzuki Maruti), and was available in selected European markets between 1988 and 1992, sold as the Suzuki Maruti. In Morocco it is currently sold as Suzuki Maruti (as of March 2008)

MARUTI OMNI :

The Maruti Omni is a microvan manufactured by Indian automaker Maruti Udyog Limited. The first version of Maruti Omni had the same 796cc engine as the Maruti 800 city car. This was the second vehicle to be launched by Maruti, one year after the 800, in 1984.

Later version of the Omni includes the

Omni (E), released in 1996, 796 cc engine, 8 seater capacity vehicle

Omni XL - 1999, same engine, modified with a higher roof.

Omni Cargo LPG - 2004, created to answer the growing popularity of this car being used as an inter-city cargo vehicle.

Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG Kit, authorised by the Indian RTOs (Regional Transport Offices). This makes it the most economic 4 wheeler in India, as far as the driving costs are concerned

MARUTI GYPSY

The Maruti Gypsy is a four wheel drive SUV based on the Suzuki SJ long wheel base.Produced in India, it is also a common sight in Chile and Kenya. Within Europe, it is most often found in Malta and Hungary. In contrast to the Suzuki, the Maruti is available with 4 seats and a sizeable trunk. The Maruti Gypsy is available as a "soft top", "hard top " and as an "ambulance car". In India, it is widely used by the police and defense forces. In civilian use, the Gypsy is a popular choice as a low-cost SUV and is a common sight at rally events.

MARUTI WAGON-R

The Maruti Wagon-R is a made for India version of Suzuki Wagon R. The Wagon-R was born out of Japanese kei-jido-sha restrictions which dictated a limited length and engine size. This boxy, tall-boy design has now completed five years of presence on Indian roads. Now the car has found a market for itself, especially among young Indian urban professionals who don't mind its boxy slab-sided looks, but value its Maruti lineage. The car is currently among India's top five best-selling cars.

MARUTI ALTO The Maruti Alto is a city car manufactured by Maruti Udyog in India. It is the best-selling car in India.

It is India's largest selling car and has recently crossed the 1 million production figure.It is exported to a number of countries including Bangladesh and Sri Lanka, and to Chile. Alto has crossed the 150,000 export target. The popularity of the Alto has increased over the past few years, mainly due to the reduction in prices. This reduction in prices has mainly come in due to the reduction in excise duty over time. It has now become the first choice of young car buyers intending to upgrade from a 2 wheeler. Some of its appeal is from stylish looks, attractive features, and impressive fuel economy at very affordable prices compared to the other cars in the Indian market.

MARUTI VERSA

The Maruti Versa is a micro van produced by Maruti Udyog Limited and sold in India since October 2001. The Versa is a clone of the now discontinued Suzuki Carry. It is the second van released by Maruti Udyog since the Maruti Omni was released in 1984. There are two basic versions of this car in production; the two 8-seater DX/DX2 versions, and the 5-seater STD version. The DX2 version of the Versa is equipped with twin air conditioners for front and rear.

MARUTI SUZUKI SWIFT

The MARUTI Suzuki Swift is name plate marketed by Suzuki carried by vehicles of three distinct derivations:

Generations I, II, III: a super mini that began as an export nameplate of the Japanese domestic market of suzuki .

Generation IV: the current JDM, Europe and Oceana generation, a significant departure from the previous models, marketed solely under the nameplate "Swift". (this article)

Currently this varient is hot seller in India in the mini car segment.

MARUTI SUZUKI SX4

In an attempt to strengthen its position in the of Sedan cars market, Maruti Udyog Ltd. has launched its premium model bearing name SX4. After Maruti Suzuki Swift, SX4 is the second international model being launched in India. Suzuki SX4, is an A3 segment sedan car, with a perfect combination of style, performance, safety and comfort. There are two versions of Suzuki SX4: Vxi and Zxi that gets power from latest and efficient 1.6-litre M-Series engine delivering impressive 102 BHP of power. Having the price tag of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough competition to its rivalry models like Ford Fiesta, Hyundai Verna, Honda City, and Indigo XL.

MARUTI SUZUKI DZIRE

Maruti Swift Dzire is the new entry level sedan from Indian automaker Maruti Suzuki. Launched on March 26 2008, Maruti DZiRE is based on the popular Maruti Swift platform. The DZire replaces Maruti Suzukis popular entry level sedan, Maruti Suzuki Esteem, production of which was discontinued in late 2007. Maruti Suzuki has introduced DZire only in the Indian market. The car is pitted against the other entry level sedans in the Indian market, such as the Mahindra Renault Logan and the Tata Indigo.

MARUTI SUZUKI ESTEEM

Sophisticated big structured Maruti Suzuki esteem is one of the old car of the Maruti Udyog group. To run this huge car its engine is made of lightweight all-aluminum. This contemporary engine has capacity of 65 bhp at 6000 rpm . According to *Mileage (Auto India , Nov 2005), Esteem holds the topmost position on mileage among the other category of cars including the small cars. The Esteem was introduced in the global market in 1995 as Suzuki's first attempt in the

compact segment, at the time dominated by European cars such as the Volkswagen Bora/Jetta and Opel Astra, and Japanese models such as the Nissan Sunny

MARUTI SUZUKI BALENO

The Baleno has the looks and feel of a winner. This was Maruti Udyog's first D-segment car launched in India to compete with the Mitsubishi Lancer and the Honda City. This is also Suzuki's biggest passenger car and in Japan and other markets. The Baleno is called the Cultus in Japan. Suzuki restyled the Baleno in 1999. The car was given a new front end, with a rounder grille and new headlights, and the engine lineup was expanded.

MARUTI SUZUKI GRAND VITARA

The Suzuki Grand Vitara is a compact SUV, namely a long-wheelbase version of the Vitara, produced by the Japanese automaker Suzuki since 1999. It was face lifted in 2002 and 2004, and redesigned in 2006. A rebadged version was sold in North America by General Motors as the Chevrolet Tracker. The Tracker is sold in Latin America, but Mexico, as Chevrolet Grand Vitara. In Mexico, Grand Vitara and Tracker are different vehicles, sold by Suzuki and Chevrolet respectively The 2006 model has had a structural redesign with a new ladder-boxed chassis integrated into a unibody construction. In India, it is sold as a Maruti.

MARUTI SUZUKI ZEN-ESTILO

Estilo has got Wagon R's engine and chassis and Suzuki MR Wagon's shape. Whatever remains is taken from Zen, well does anything remain actually? This is the mixture of zen and wagon -R . 'Zen Estilo'. In essence its stylish Wagon R, Japan's MR Wagon, combination of the two or anything but Zen. It seems Maruti wants to exploit Zen brand-image hence named this car after Zen. With this model MSL has given its B segment a new variant by which it may compete with the models of other company.

SWOT ANALYSIS

3. STUDY OF TOPIC

MARKETING STRATEGY OF MARUTI SUZUKI (PVT.) LIMITED

The marketing strategy of the Maruti Suzuki Pvt. Ltd. can be measured from the following story:

EFFICIENT PRODUCTION AND DISTRIBUTION CAPABILITIES

Just three months after it launched Swift, Maruti Udyog Limited has already sold over 8,000 units of the car and added another 5,000 next month. There's a four-month waiting period for the 1,298-cc hatchback -- the company claims more than 9,000 bookings before the car was launched. And that's even while competitors -- Corsa Sail, Hyundai Getz and Fiat Palio -- are available off the shelf. Not surprisingly, MUL now has a lot riding on the car: there's over Rs 440 crore (Rs 4.40 billion) invested in the project (Rs 250 crore-odd is MUL's share). Not only is the company hoping that the Swift will help expand the market for the B-plus segment (premium hatchbacks), it's also counting on Swift to make a style statement -- that Suzuki can deliver good-looking cars on Indian roads. For a company that has been known more for its value-for-money proposition -- from the 800 to the Esteem -- that's important. "It's not as if our cars weren't style statements. It's just that with Swift, we have made a break from the past," reveals a company official.

PRODUCT There are number of products ( models ) Of Maruti are in the market. Some of the models are given below:- M 800, Zen, Esteem, Omni, Alto, Gypsy, Wagonr,Grand Vitara etc. These products are divided on the basis of product quality, variety, design, features etc.

They define different factors:

The quality of product.

The product variety from different categories.

The size of the car according to current or future market conditions.

The car features to the customer like, car looking very good.

PRICE

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, Wagonr, 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 are decided according to its product Varity, quality, design etc.

SWIFT

SpecificationsTransmission Type Manual Fuel Type Petrol Seating Capacity5 Gearbox5 Speed Engine Description1.3L 87bhp AlTec32 engine Engine Displacement1,298 ccMileage-City12.2 kmplMileage-Highway16.1 kmpl Maximum Power88.2@6000 (PS@rpm) Maximum Torque11.5@4,500 (kgm@rpm)

Ex-Showroom Price :Rs. 3,94,466 to Rs. 4,20,974

GRAND VITARA

SpecificationsTransmission Type Automatic Fuel Type Petrol Seating Capacity5 Gearbox4 Speed Engine Description2.0L 120bhp Series engine w/ Variable Induction & Drive by Wire technology Engine Displacement1,995 cc Maximum Power121.16@5,500 (PS@ rpm)Maximum Torque17.33@3,500 (kgm@ rpm)

Ex-Showroom Price : Rs. 14,80,000 to Rs. 15,28,711

PLACE

The place of the car is in the whole world.

Maruti Udyog Limited decides its distribution channels for selling car, like use some time one level or some time two level marketing channels. They decide areas in which they deal with customers. They show the permanent location for selling the car. They provide the many useful inventory. they define the transport facility of the company for company to market and market to consumers. Many showroom of Maruti udyog limited is in our India.

PROMOTION

Main promotion of car is done by the Advertising. The advertising is mainly done in the form of different T.V. channels, different newspaper, holdings etc. Now days the main promotion is done by the brand ambassadors such as film stars, celebrities, sportsmen, etc. And in this case they decide his actual or required sales forces for selling its car. And they maintain customer relationship. And they do direct marketing

5. RESEARCH METHODOLOGY

The purpose of methodology section in the report making is to describe the research process that is followed while doing the main part. This would however include the research design, the sampling procedure, and the data collection method. This section is perhaps difficult to write as it would also involve some technical terms and may be much of the audience will nor be able to understand the terminology used. The methodology followed by the researcher, during the preparation of the report was:

Research Design

A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The survey research was used in this project, because consumers feedback was necessary for obtaining the data.

Research Instrument

For doing the survey research, structured questionnaire for dealers with both open-ended and closed-ended questions was used.

Objectives of study

The present study of the marketing strategy of the Maruti Suzuki (Pvt.) Limited revolves around the following broad objectives:

To know the marketing strategy followed by dealers of maruti Suzuki in gurgaon.

To study the evolution and growth of the Maruti Suzuki (Pvt.) Limited in the context of the automobile revolution in India;

To study the growth strategy of the Maruti Suzuki (Pvt.) Limited and the marketing methods followed by it in this regard.

To study the small car revolution in India and the contribution of the Maruti Suzuki (Pvt.) Limited to it..

SAMPLE DESIGN

While developing a sample design, following points should be kept in mind:

Sampling unit: A decision has to be taken concerning a sampling unit before selecting sample. Sampling unit may be a geographical one such as state, district, village etc or a construction unit such as house, flat etc. or it ,may be as social unit such as family, club, school etc or it may be an individual . the researcher will have to decide one or more of such units that he has to select for his study

Size of the sample: This refers to the number of items to be selected from the universe to constitute a sample. This is a major problem before a researcher. The size of the sample should be neither is excessively large, nor too small. it should be optimum

An optimum sample is one which fulfills the requirements of efficiency, representatives, reliability and flexibility

Sample element and sample unit

45 people have been interviewed to know their opinion about the marketing strategy of maruti Suzuki.

Gurgaon (sample unit)

Time frame: 6weeks

Sampling technique: Random Sampling Techniques

Sampling frame: 45 People.

DATA COLLECTION

Primary Data

Primary data is that kind of data which is collected directly by the investigator himself for the purpose of the specific study. Primary Data is collected by the investigator through interviews of company employees, vendors, distributor etc. Data such collected is original in character. The advantage of this method of collection is the authentic.

A questionnaire of about 50 questions was made and it was given to the dealers to fill it up for our research.

The research was a kind of conclusive and exploratory research as it helps in the testing of hypothesis. The method of sampling was the convenience sampling method as it is unbiased.

Secondary Data

When an investigator uses the data that has been already collected by others, is called secondary data. The secondary data could be collected from Journals, Reports, libraries, magazines, fair & conference and other publications. The advantages of the secondary data can be It is economical, both in terms of money and time spent .The researcher of the report also did the same and collected secondary data from various internet sites like www.google.com, www.airtel.com, www.hutch.co.in and many more. The researcher of the report also visited various libraries for collection of the introduction

6. DATA ANALYSIS & INTERPRETATION:-

(1) Are you aware about the present boom in Market?

(i) Yes

(ii) No.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

yes

no

yes

82%

no

18%

INTERPRETATION:

As regard to market boom and the respondents awareness level about this, nearly 82% of the respondents are aware about the market boom in the present economy, while the rest 18% are not aware about any market boom. The awareness level is high among the middle and the upper middle class, and particularly among the business class and the traders. One of the interesting finding of the study was that many respondents confuse between inflation and market growth. Respondents belonging to lower middle and middle class confuse whether price rise has anything to do with the automobile industry scenario.

2. What method do you follow for marketing of your products?

(i) Only Direct sales Method--------------------- 28 percent

(ii) Only Indirect Dealership Method----------------- 18 percent

(iii) Both ---------------------------------------------------- 54 percent

0%

10%

20%

30%

40%

50%

60%

only direct sales method

only indirect sales method

both

only direct sales

method

28%

only indirect sales

method

18%

both

54%

INTERPRETATION:

28% respondents are only direct sales method and 18 % are to choose indirect sales method and 54% respondents are to choose both of these direct sales method or indirect sales method.

3. Do you think Advertisement is an effective method of selling your automobile products?

(iv) Yes------------------------------------------------- 45 percent

(v) No----------------------------------------------------- 18 percent

(vi) Do not know/ Cannot say-------------------------27 percent

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

yes

no

cant say

yes

45%

no

18%

cant say

27%

INTERPRETATION:

45 % respondents is to say yes that Advertisement is an effective method of selling and 18% are not effective advertisement and remaining 27% are cant say about this.

4. What type of advertising will be helpful in increasing salability of your auto products?

(vii) Product Specific------------------------------------- 34 percent

(viii) Company Specific---------------------------------- 22 percent

(ix) Personality oriented ------------------------------- 17 percent

(x) Do not know / Cannot say ------------------------ 27 percent

0%

5%

10%

15%

20%

25%

30%

35%

product specific

company specific

personality specific

cant say

product specific

34%

company specific

22%

personality specific

17%

cant say

27%

INTERPRETATION:

34% respondent is to say that product specific advertising will be helpful in increasing salability of your auto products and 22% say company specific 17% to say personality oriented is helpful and rema

0%

5%

10%

15%

20%

25%

30%

35%

40%

yes

no

cant say

yes

34%

no

27%

cant say

39%

ining 27% cant say about this.

6. Do you think that auto fairs are effective methods of sale promotion?

(xi) Yes------------------------------------------------- 55 percent

(xii) No----------------------------------------------------- 12 percent

(xiii) Do not know/ Cannot say-------------------------33 percent

0%

10%

20%

30%

40%

50%

60%

yes

no

cant say

yes

55%

no

12%

cant say

33%

INTERPRETATION:

55% respondent say that yes auto fair are effective methods of sales promotion and 12% response is no and remaining 33 % cant say about this.

7. Do you think that Foreign Direct Investment (FDI ) should be allowed in the auto mobile sector in India?

(xiv) Yes------------------------------------------------- 34 percent

(xv) No----------------------------------------------------- 32 percent

(xvi) Do not know/ Cannot say-------------------------34 percent

31%

32%

32%

33%

33%

34%

34%

yes

no

cant say

yes

34%

no

32%

cant say

34%

INTERPRETATION:

34% respondent say that yes Foreign Direct Investment (FDI ) should be allowed in the auto mobile sector in India 32% say no and remaining 34% cant say about this.

8. Do you follow branding of products as a Marketing strategy?

(i) Yes ------------------------------------------------------------------------ 74 percent

(ii) No -------------------------------------------------------------------------- 05 percent

(iii) Do not know/ Can not say --------------------------------------------- 21 percent

0%

10%

20%

30%

40%

50%

60%

70%

80%

yes

no

cant say

yes

74%

no

5%

cant say

21%

INTERPRETATION:

74% respondent say that yes branding of products as a Marketing strategy and 5% say that no and remaining 21% cant say about this.

9. Does branding of products helps to improve the marketing potential of your products?

(i) Yes ----------------------------------------------------------------68 percent

(ii) No ------------------------------------------------------------------12 percent

(iii) Do not know/ Can not say --------------------------------------------- 20 percent

0%

10%

20%

30%

40%

50%

60%

70%

yes

no

cant say

yes

68%

no

12%

cant say

20%

INTERPRETATION:

68% respondents say that yes branding of products helps to improve the marketing potential of products and 12% say no and r remaining 20% cant say about this.

10. Future of the automobile industry in India.

0%

10%

20%

30%

40%

50%

60%

70%

80%

yes

no

cant say

yes

75%

no

12%

cant say

13%

(i) The boom will continue --------------------------------------------- 75 percent

(ii) The boom is a temporary economic situation---------------- 12 percent

(iii) Do not know/ Can not say ------------------------------------------- 13 percent

INTERPRETATION:

75% respondent say that in future in automobile industry the boom will continue and 12% say that the boom is a temporary economic situation and remaining 13% cant say about this.

11. Major Weakness of Maruti Suzukis Marketing strategy.

Branding ------------------------------------ 14 per cent

Publicity ----------------------------------------- 09 percent

Infrastructure assessment and Development -------------------------------- 77 percent

0%

10%

20%

30%

40%

50%

60%

70%

80%

branding

publicity

infrastructure assessment

& development

branding

14%

publicity

9%

infrastructure

assessment &

development

77%

INTERPRETATION:

14% respondents say that branding is Major Weakness of Maruti Suzukis Marketing strategy and 9% say publicity and remaining 77 % say that Infrastructure assessment and Development are is Major Weakness of Maruti Suzukis Marketing strategy.

12. How do the Foreign Automobile Companies affect the prospects of the domestic players in the Indian market?

(i) 32 percent ------------------------------ have reduced the profit margin of the domestic players

(ii) 53 percent ---------------------------------- have made the automobile industry more competitive.

(iii) 07 percent ------------------------------- do not have significant effects on the domestic players operating in the automobile industry

(iv) 08 percent ------------------------------- do not know / can not say

0%

10%

20%

30%

40%

50%

60%

reduced the profit margin

made industry more

competitive

do not make any significant

effect

reduced the profit

margin

32%

made industry

more competitive

53%

do not make any

significant effect

15%

INTERPRETATION:

32 % respondents say thatit have reduced the profit margin of the domestic players and 07 % say that it do not have significant effects on the domestic players operating in the automobile industry53 % say that it have made the automobile industry more competitive and remaing 8% cant Say about this.

13. Maruti Suzuki has a future growth. You opinion

(i) 75 percent -------------------- Maruti Suzuki is gradually spreding its wings and being a very big company has the capacity to absorb short term losses, hence has a very good prospect for the future market in India.

(ii) 20 percent ---------------------- Its future is like any other private automobile companies in India

(iii) 5 percent -------------------- do not know/ can not say

0%

10%

20%

30%

40%

50%

60%

70%

80%

Maruti is growing and has

good future

Maruti is like any other

automobile company

cant say

Maruti is growing

and has good

future

75%

Maruti is like any

other automobile

company

20%

cant say

5%

INTERPRETATION:

75 % respondents say that Maruti Suzuki is gradually spreding its wings and being a very big company has the capacity to absorb short term losses, hence has a very good prospect for the future market in India and 20 % say that Its future is like any other private automobile companies in India and remaining 5% cant say about this.

14. Which is the major factor to increase the sale of your products?

(i) Only Brand ----------------------17percent

(ii) Demand-Supply factors ------35 percent

(iii) Only Quality ----------------------- 23 percent

(iv) Other factors ---------25 percent

0%

5%

10%

15%

20%

25%

30%

35%

only brand

demand-supply factor

only quality

others

only brand

17%

demand-supply

factor

35%

only quality

23%

others

25%

INTERPRETATION:

17% respondents say that only brand is the major factor to increase the sale of products

and 35% say demand supply factor and 23 5 prefer the quality and remaining 25 % cant say about this.

15. Do you think brand extension is necessary for the company?

(i) 78 percent --------------------------------- Yes

(ii) 04 percent -------------------------------- No

(iii) 18 percent -------------------------------- Do not know / Can not say

INTERPRETATION:

78% respondents say that yes brand extension is necessary for the company and 4% say that no and remaining 18% cant say about this.

16. Which are the products of the company that are favourite among the customers?

0%

10%

20%

30%

40%

50%

60%

quality based

economical

branded

cant say

quality based

55%

economical

30%

branded

6%

cant say

9%

(i) 55 percent --------------------- Quality based

(ii) 30 percent ---------------------Economical/ Cheap

(iii) 06 percent ---------------------- Branded

(iv) 09 percent ------------------------ Do not know /Can not say

INTERPRETATION:55% respondents say that quality products are favourite and 30% say that economical; product are favourite and 6% say that branding products are favourite and remaining 9% cant say about this.7.1 FINDINGS OF THE STUDY

To find the awareness of boom in the market then in our study 82% of the respondents are aware about the market boom in the present economy .

To find what method do you follow for marketing of your products then in our study 28% respondents are only direct sales method and 18 % are to choose indirect sales method.

To find What method do you follow for marketing of your products then in our study 45 % respondents is to say yes that Advertisement is an effective method of selling and 18% are not effective advertisement.

To find What type of advertising will be helpful in increasing salability of your auto products then in our study 34% respondent is to say that product specific advertising will be helpful in increasing salability of your auto products and 22% say company specific 17% to say personality oriented is helpful.

To find that branding helps in the marketing of your automobile products then in our study 34% respondents is say that yes branding helps in the marketing of automobile products and 27% is say no.

To find that auto fairs are effective methods of sale promotion then in our study 55% respondent say that yes auto fair are effective methods of sales promotion and 12% response is no.

To find that Foreign Direct Investment (FDI ) should be allowed in the auto mobile sector in India then in our study 34% respondent say that yes Foreign Direct Investment (FDI ) should be allowed in the auto mobile sector in India 32% say no.

To find that branding of products as a Marketing strategy then in our study 74% respondent say that yes branding of products as a Marketing strategy and 5% say that no.

To find that branding of products helps to improve the marketing potential of your products then in our study 68% respondents say that yes branding of products helps to improve the marketing potential of products.

To find that Future of the automobile industry in India then in our study 75% respondent say that in future in automobile industry the boom will continue and 12% say that the boom is a temporary economic situation .

To find that Major Weakness of Maruti Suzukis Marketing strategy then in our study 14% respondents say that branding is Major Weakness of Maruti Suzukis Marketing strategy and 9% say publicity and remaining 77 % say that Infrastructure assessment and Development are is Major Weakness of Maruti Suzukis Marketing strategy.

To find that brand extension is necessary for the company then in our study 78% respondents say that yes brand extension is necessary for the company and 4% say that no.

To find that Which are the products of the company that are favourite among the customers then in our study 55% respondents say that quality products are favourite and 30% say that economical; products.

7.3 CONCLUSION

Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor Corporation of Japan was Indias largest automobile company in 2005. It operated in the passenger vehicle market and manufactured affordable and fuel efficient cars for the Indian masses. Maruti 800 was its flagship small sized car and was the best selling car in India since decades. In 2005, Suzuki launched their global car Swift in international markets and later in India. Swift was the first stylish compact car from the stable of Maruti and was a differentiator from its earlier products. The launch of Swift had brought Maruti in lime-light and various global international automobile manufacturers announced their plans to boost their investments in India and launch competing cars. The competition was expected to intensify to grab the burgeoning customer base. The Indian car market currently appears to be at a crossroads, where car marketers are attempting to change customer perceptions of their brands and where specific buying motivations appear to be replacing generalities.

This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and safety, not necessarily in that order, before finalising a purchase. Its smarter to think about emotions and attitudes, if marketers are to do a better job of marrying what a car offers to the consumers image of the offerings.

7.2 SUGGESTION

Operational attributes should be made good.

Globalization is yet another opportunity, if followed effectively & promptly.

Brand Image should be made effective in the minds of the customer.

Customer Specific Details.

An excellent service & support infrastructure must be provided.

Ability to provide the cutting edge technology at best-value-for-money

Strong customer relationships must be made.

World Class Quality standards maintained for PPP (People, Processes & Performance). Alliance with global technology leaders.

The message should to the customers be sent in these components only to have the maximum benefit from the advertisement.

With the fast growing economy the pricing strategy needs to be tackled with care as it can decide upon long term decisions of the company.

LIMITATIONS OF STUDY

Due to the following unavoidable and uncontrollable factors the results might not be accurate. Some of the problems might face while conducting the survey are as follows:

Certain open-ended questions have been put in the questionnaire to give respondents freedom to express their perception.

Time and cost constraints were also there

Chances of some biasness couldnt be eliminated.

A sample size of 45 has been used due to time limitations.

The data has been collected from Gurgaon(North) and there the perception of the people from the smaller towns could not be judged

All the data has been collected at random but it is always liable from biasness.

The primary data has been collected from the middle and upper section of the society.

7.4 BIBLIOGRAPHY

Books & Journals

Marketing Management by Phillip Kotler

Brand positioning by Subroto sengupta

Positioning: The Battle for your mind by Al Ries & Jack Trout

Ahluwalia, I.J. (1988). "Industrial Policy and Performance in India" in Lucas, R.E.B. and G.F. Papanek (eds.) (1988). The Indian Economy: Recent Development and Future Prospects. Delhi: Oxford University Press, pp. 151-162

Ahluwalia, I.J. (1996). "India's Opening up to Trade and Investment" in I.J. Ahluwalia, Rakesh Mohan and Omkar Goswami, Policy Reform in India . Edited by Charles Oman. Paris: OECD, pp. 17-41

AIAM (1999). Recommendations for Developing Indian Automotive Policy. Association of Indian Automobile Manufacturers, New Delhi

Newspapers, Journals & Magazines

Business World

The Economist

Economic Times

Autocar Indias

6.5. ANNEXURE

QUESTIONNAIRE

(1) Are you aware about the present boom in Market?

Yes---------------------- 90 percent

No--------------------- 10 percent

2. What method do you follow for marketing of your products?

Only Direct sales Method--------------------- 28 percent

Only Indirect Dealership Method----------------- 18 percent

Both ---------------------------------------------------- 54 percent

3. Do you think Advertisement is an effective method of selling your automobile products?

Yes------------------------------------------------- 45 percent

No----------------------------------------------------- 18 percent

Do not know/ Cannot say-------------------------27 percent

4. What type of advertising will be helpful in increasing salability of your auto products?

Product Specific------------------------------------- 34 percent

Company Specific---------------------------------- 22 percent

Personality oriented ------------------------------- 17 percent

Do not know / Cannot say ------------------------ 27 percent

5. Do you think that branding helps in the marketing of your automobile products?

Yes------------------------------------------------- 34 percent

No----------------------------------------------------- 27 percent

Do not know/ Cannot say-------------------------39 percent

6. Do you think that auto fairs are effective methods of sale promotion?

Yes------------------------------------------------- 55 percent

No----------------------------------------------------- 12 percent

Do not know/ Cannot say-------------------------33 percent

7. Do you think that Foreign Direct Investment (FDI ) should be allowed in the auto mobile sector in India?

Yes------------------------------------------------- 34 percent

No----------------------------------------------------- 32 percent

Do not know/ Cannot say-------------------------34 percent

12. Does branding of products helps to improve the marketing potential of your products?

Yes ---------------------------------------------- 68 percent

No ----------------------------------------------- 12 percent

Do not know/ Can not say-------------------- 20 percent

13. Future of the automobile industry in India.

The boom will continue --------------------------------------------- 75 percent

The boom is a temporary economic situation---------------- 12 percent

Do not know/ Can not say ------------------------------------------- 13 percent

14. Major Weakness of Maruti Suzukis Marketing strategy.

Branding ------------------------------------ 14 per cent

Publicity ----------------------------------------- 09 percent

Infrastructure assessment and Development -------------------------------- 77 percent

15. How do the Foreign Automobile Companies affect the prospects of the domestic players in the Indian market?

32 percent ------------------------------ have reduced the profit margin of the domestic players

53 percent ---------------------------------- have made the automobile industry more competitive.

07 percent ------------------------------- do not have significant effects on the domestic players operating in the automobile industry

08 percent ------------------------------- do not know / can not say

16. Maruti Suzuki has a future growth. You opinion

75 percent -------------------- Maruti Suzuki is gradually spreding its wings and being a very big company has the capacity to absorb short term losses, hence has a very good prospect for the future market in India.

20 percent ---------------------- Its future is like any other private automobile companies in India

5 percent -------------------- do not know/ can not say

17. Which is the major factor to increase the sale of your products?

Only Brand ----------------------17percent

Demand-Supply factors ------35 percent

Only Quality ----------------------- 23 percent

Other factors ---------25 percent

18. Do you think brand extension is necessary for the company? If yes, why?

78 percent --------------------------------- Yes

04 percent -------------------------------- No

18 percent -------------------------------- Do not know / Can not say

19. Which are the products of the company that are favourite among the customers? Please give the reasons as you think.

55 percent --------------------- Quality based

30 percent ---------------------Economical/ Cheap

06 percent ---------------------- Branded

09 percent ------------------------ Do not know /Can not say

20. Do you see the probability of a separation between Maruti and Suzuki in future?

Yes ------------------------------------------------------------------ 18 percent

No -------------------------------------------------------------------- 74 percent

Do not know/ Can not say ------------------------------------------ 08 percent

EMBED MSGraph.Chart.8 \s

Threats

Many players fighting for the same cake

Entry of new players

Cannibalism

Opportunity

Rise of Indian middle class and small cities

A booming economy

Rising exports

Weakness

Lack of in house R & D

New model introduction limited to only cosmetic changes

Dominance mainly at lower level only (Swift)

Strengths

Brand Name

Large Distribution Network

Wide product offering at different price points

Cheapest Cars in corresponding segments

Encouraging exports

Awarded many awards

Economy with technology

Indian

Passenger Car Industry

Manufacturing Technologies:

Flexible Manufacturing Systems

Components:

Tierisation;

Tyres: Radials, Retreading

Regulatory framework:Deregulation;

De licensing;

Removal of QRs;

Introduction of strict

Emission norms

Auto finance:

Better/ cheaper schemes

Distribution Systems:

Changing relationship of manufacturers with dealers and suppliers

Materials: Low weight; Synthetic Composites

Entry of Foreign Manufacturers

Product technology:

MPFI; CRDi; diesel system

Structure of demand:

Change in industry segmentation

CAR DEMAND

There is a high degree of correlation between the demand for cars and ECONOMIC GROWTH.

Availability of NEW MODELS is likely to increase and change the structure of demand.

Competitive PRICING is crucial for gaining market share, especially in the small car segment.

AVAILABILITY OF CHEAP FINANCE is a key determinant of demand as most cars (around 60%) purchased in India are financed.

A mature USED CAR MARKET would, on one hand, encourage consumers to trade in their cars faster, and on the other, eat well into the share of new cars.

The Central Governments AUTO POLICY on excise and customs is an important aspect affecting the demand and supply of cars.

High degree of correlation between PER CAPITA INCOME and demand for cars, increase in the number of people crossing the income threshold, and CHANGING CONSUMER PROFILE are likely to increase and change the structure of demand.

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