A SUMMER TRAINING REPORT

ON

MARKETING STRATEGY AND DEAL BETWEEN TRUE VALUE AND OLD CAR'S OF MARUTI SUZUKI (PVT)

LIMITED

Submitted in partial fulfillment of requirement ofMASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED TO: SUBMITTED BY:

JASJOT KAUR BINDRA TANVIR SINGH

2014MGB1100

MBA B (3RD)

SESSION: 2014-2016

1 | P a g e

  ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors who

graciously gave me their time and expertise.

They have provided me with the valuable guidance, sustained efforts and friendly approach.

It would have been difficult to achieve the results in such a short span of time without their help.

its my duty to record my gratitude towards the Internal project supervisor Mr. ARVINDER SINGH

LADDI . who devoted her precious time to interact, guide and gave me the right approach to

accomplish the task and also helped me to enhance my knowledge and understanding of the project.

The findings of the study show that businessman and professionals comprise the majority of the

used car customer segment. Further, the respondents indicated an overall satisfaction towards the

pre-purchase, purchase and post –purchase procedure involved in the buying of pre-owned car from

Maruti True Value dealers.

2 | P a g e

DECLARATION

I hereby declare that the following documented project report titled “ MARKETING

STRATEGY AND DEAL BETWEEN TRUE VALUE AND OLD CAR'S OF MARUTI SUZUKI

(PVT) LIMITED .” is an original and authentic work done by me for the partial fulfillment of

Bachelors of Business Administration degree program . It is my own work conducted under the

supervision of Mr. ARVINDER SINGH LADDI ( TEAM LEADER) , MARUTI SUZUKI ,

HOSHIARPUR AUTOMOBILES.

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.

3 | P a g e

INDEX

CHAPTER 1

INTRODUCTIONINTRODUCTION OF MARUTI SUZUKI INDIA............................................................ 1-12INRTODUCTION OF AUTOMOBILE INDUSTRY IN INDIA....................................... 13INRTODUCTION OF MARUTI SUZUKI HOSHIARPUR AUTOMOBILES................. 14MARUTI TRUE VALUE.................................................................................................... 15-19

CHAPTER 2

OBJECTIVE........................................................................................................................ 20

CHAPTER 3

SWOT ANALYSIS MARUTI SUZUKI............................................................................. 21-23

CHAPTER 4

RESEARCH METHODOLOGY......................................................................................... 24-27

CHAPTER 5

DATA ANALYSIS.............................................................................................................. 28-44

CHAPTER 6

OBSERVATION.................................................................................................................. 45-48

CONCLUSION............................................................................................................. 49

RECOMENDATION............................................................................................................... 50

CHAPTER 7

QUESTIONNAIRE SAMPLE.................................................................................................. 51

BIBLIOGRAPHY............................................................................................................... 52

4 | P a g e

CHAPTER 1

INTRODUCTION

INTRODUCTION TO MARUTI SUZUKI INDIA

Maruti Suzuki India Limited formerly known as Maruti Udyog Limited, is an

automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle

manufacturer Suzuki. As of November 2012, it had a market share of 37% of the Indian passenger

car markets. Maruti Suzuki manufactures and sells a complete range of cars from the entry level

Maruti 800 (discontinued), Alto, to the hatchback Ritz, Celerio, A-Star, Swift, Wagon R, Zen and

sedans DZire, Ciaz, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki

Ertiga and Sports Utility vehicle Grand Vitara.

The company's headquarters are at No 1, Nelson Mandela Road, New Delhi. In February 2012, the

company sold its ten millionth vehicle in India.

History

Maruti Udyog Limited was established in February 1981, though the actual production

commenced only in 1983. It started with Maruti 800, based on the Suzuki Alto key car which at the

time was the only modern car available in India. Its only competitors were Hindustan Ambassador

and Premier Padmini. Originally, 74% of the company was owned by the Indian government, and

26% by Suzuki of Japan. As of May 2007, the government of India sold its complete share to Indian

financial institutions and no longer has any stake in Maruti Udyog.

Sales and service network

As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in all

states and union territories of India. It has 3,060 service stations (inclusive of dealer workshops and

Maruti Authorized Service Stations) in 1,454 towns and cities throughout India. It has 30 Express

Service Stations on 30 National Highways across 1,436 cities in India.

Service is a major revenue generator of the company. Most of the service stations are

managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile

5 | P a g e

companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service

stations help many stranded vehicles on the highways by sending across their repair man to the

vehicle.

Maruti Insurance

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help

of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The

service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors

Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited

This service started as a benefit or value addition to customers and was able to ramp up

easily. By December 2005 they were able to sell more than two million insurance policies since its

inception.

Maruti Finance

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January

2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti

and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in

securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak

Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic

partners in car finance. Again the company entered into a strategic partnership with SBI in March

2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-

Maruti Finance is currently available in 166 cities across India.

Maruti True Value

Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used

Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help

of this service in India. As of 31 March 2010 there are 342 outlets.

Maruti Accessories

Many of the auto component companies other than Maruti Suzuki started to offer

components and accessories that were compatible. This caused a serious threat and loss of revenue

6 | P a g e

to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine

Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,

stereo systems, seat covers and other car care products. These products are sold through dealer

outlets and authorized service stations throughout India.

Maruti Driving School

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving

School in Delhi. Later the services were extended to other cities of India as well. These schools are

modeled on international standards, where learners go through classroom and practical sessions.

Many international practices like road behavior and attitudes are also taught in these schools.

Before driving actual vehicles participants are trained on simulators.

A the launch ceremony for the school Jagdish Khattar stated "We are very concerned about

mounting deaths on Indian roads. These can be brought down if government, industry and the

voluntary sector work together in an integrated manner. But we felt that Maruti should first do

something in this regard and hence this initiative of Maruti Driving Schools."

LOGOS OF MARUTI SUZUKI AUTOMOBILES

OLD MARUTI SUZUKI LOGO

NEW MARUTI SUZUKI LOGO

MARUTI INSURACE LOGO

7 | P a g e

MARUTI SUZUKI ACCESSORIES LOGO

MARUTI DRIVING SCHOOL LOGO

TRUE VALUE LOGO

SERVICE MARUTI LOGO

VEHICLE LOGO

8 | P a g e

MARUTI SUZUKI MODELS PREFRED BY CUSTOMERS AND

CONSUMERS

Maruti Alto

Maruti Alto is one of the bestselling car in India. It has included different new features in it

like clear lens headlamps, sparkling tail lamps,

dynamic front grill and bumper, stylish fabric,

rotary control for AC etc. Other features that

are really important for the comfort and safety

of the passenger are electronic power steering,

excellent services back up, convenient cup

holders, high rigid monocoque frame made of

high tensile steel, front and rear seat belts, booster assisted brakes etc. Its better mileage and low

engine friction make this car most fuel efficient car in A2 segment (petrol).

It has three variants:

Maruti Alto

Maruti Alto Lx

Maruti Alto Lxi

Maruti Alto

It has new features like front bumper,dynamic front grill, S mark, clear lens headlamps,

clear lens tail lamps etc.

Maruti Alto Lx

Along with the features that are present in Alto, there are many additional new features like

rotary control for AC, integrated rear seat head restraints etc.

Maruti Alto Lxi

Along with all the features that are present in Alto LX and Alto, another distinctive extra

feature included in this model is electronic power steering.

9 | P a g e

Maruti Omni

Maruti Omni can accompany anybody during the lazy holidays. Its seating capacity can

accommodate a group of people going for picnic or outing. Stylish, smart and sporty looks of newly

launched Maruti Omni is very comfortable. Its reclining and sliding front seat, enough leg space

and ample headroom make it more spacious.

Its sleek sliding door and new side body graphics are

giving new taste to the car lovers. Apart from this,

smart new steering wheel, clear lens headlamps and

head lamp leveling device are lining up to market this

car properly.

With 37 bhp @ 500rpm and torque of 6.32 kgm @ 3000 rpm, this car is running strong over the years. MPFI engine fulfills all the Bharat III emission norms. The features that make this car safe and secure are like side impact door beams, thermoplastic bumpers, booster assisted disc brakes, secured seat belts, laminated glass winshield etc.

Turning radius of 4.1 m, Omni solves the purpose of narrow lane driving, keen turning and small space parking.

5 seater Maruti Omni

8 seater Maruti Omni

LPG Maruti Omni

5 seater Maruti Omni

5 seater Maruti Omni has capacity to arrange seating for five. In 5 seater Maruti Omni

behind the front seats there is an arrangement for 3 seats in a row one after another.

8 seater Maruti Omni

10 | P a g e

8 seater Maruti Omni is with the accommodation facility for eight. In 8 seater Maruti Omni

behind the front’s seats there is a seating arrangement for two long seats to accommodate six more

occupants. Those both rear seats are arranged face to face which give scope to gossip with each

other while going for family picnic or friendly freak out.

LPG Maruti Omni

LPG Maruti Omni is the most cost saving new car of the Maruti Omni.

Its 5 seater accommodation arrangement with LPG kit ( Vialle, Netherlands) fitted by the factory

keeps it noticeable to the buyers. It has capacity of 62.1 ltr LPG cylinder / reserve fuel tank (petrol,

5 ltr). It runs with the power of 27bhp@ 4500rpm.

Maruti Zen Estilo

Zen Estilo is Maruti's latest launch pad in the automobile sector. Estilo, Spanish word for

"style", radiates both Japanese simplicity and

European sophistication & is made perfectly suitable

for Indian roads. The car is much more roomier than

Zen & its plush & sleek interiors impart a more royal

touch to its persona. Sporting a much larger engine

of 1061 cc., the car's elevated size offers extra boot

space. Best feature boasts of its superior air

conditioning which eases the task of beating the

sultry summers.

With a capacity of 64 bhp. & a low-end torque of 84 nm (i.e. 3500 rpm), the new model

ensures the Indian market with a smooth & comfortable drive.

The car exhibiting fine upholstery matched up with its' color theme has an immense stamina

to sweep away the customer with its' elan appearance. Other salient characteristics include: Modern

design, Two tone color design, Redesign seats.

Other Features

11 | P a g e

Maruti Zen Estilo has a series of other plus points which makes is an instant hit among Indian

buyers. They are:

* spacious

* Handy driver's side airbag

* Rear defogger, tachometer & ABS

* Electronic power steering

* Black bumpers

* Hatchbacks

* Dual tone theme

There are three variants found in this car:-

Maruti Zen Estilo Lx

Maruti Zen Estilo Lxi

Maruti Zen Estilo Vxi

Maruti Zen Estilo Lx

This model has certain specific points such as no body colored side or back door handles, outside

door mirrors, accessory socket. Though, it has rear door child lock & steering lock.

Maruti Zen Estilo Lxi

This variant of Estilo is almost the same like its other model LX. It has body colored bumpers &

back door handles. Though, it is fully air conditioned like others & has numerous other qualities.

Maruti Zen Estilo Vxi

Estilo Vxi bosts of almost all the benefits, thus, fitting easily in the ultra modern automobile

category. The model has an electrical adjustable ORVM, side door handles, outside door mirrors &

a host of other plus points. Though, certain features are optional in it which are:

* SRS airbag (driver side)

12 | P a g e

Maruti Swift

Competing with the other cars of Maruti,

Maruti Swift is gradually making its position in the

world of mid-sized family car. Maruti Swift has

come up with the special technical specifications of

16 valve 4-cylinder, 1300 cc engine generating

power of solid 87bhp @ 6000 rpm. Maruti swift is

equipped with various safety features and well

advanced equipments.

There are four variants in this car:

Swift LXi

Swift VXi

Swift ZXi

Swift Diesel'Ldi'

Swift Diesel 'Vdi'

Swift LXi

3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3 position), console box

(lower), cup holders (front 2, rear1), front door trim pockets, green tinted glass window, halogen

headlamps, headlamp leveling device, heater and manual Air conditioning, OVRM (internally

adjusted), rear fog lamps, wind screen wiper 2 speed plus 1 speed intermittent, tailgate opener key

type, trip meter (digital display), sun visors (both sides), brake assist , child lock (rear door), high

mounted stop lamp, power steering, rear seat belts etc. are the features available in this model.

Swift VXi

Apart from the features found in other model, striking features of this model are black

colored A & B pillars, 12v accessory socket in center console, day and night rear view mirror, door

ajar warming lamp, driver's seatbelt warning lamp, tachometer, driver's seat belt warning lamp,

vanity mirrors (sun visor co-driver side), rear seat head restraints, fabric accented door trims, central

13 | P a g e

door locking (4 door), front and rear electronic windows, front fog lamps, light off/ key reminder,

manual air-conditioning, key not removed warning buzzer, etc.

Swift ZXi

Special features that have made this model more market friendly are rear window demister,

rear parcel shelf, rear window wiper, room lamp and luggage room, keyless entry,dual front

airbags, colored outside door mirror cowls, colored outside door handles, 12v accessory socket in

luggage room, driver seat height adjuster, central door locking (5 doors), seat belts 3-point ELR

with shoulder adjusters, seat belts front 3-point ELR with pretensioning,tailgate opener

electromagnetic type etc.

Maruti Swift Diesel

Before making a buying decision for a car, comfort is always the first priority that we

usually look for. Make no compromises with your comforts, as 'Maruti Swift Diesel' incorporates

the best comfort features which any swanky car does have these days.

There are two variants this car:

Maruti Swift Diesel'Ldi' Maruti Swift Diesel 'Vdi'

Maruti Swift Diesel'Ldi'

Right from power steering to antenna and manual air conditioning to heater, you would get

maximum comfort level with this 'Ldi' model. As far as safety and security is concerned, it comes

with child lock (rear door), side impact beams and the icats. In addition to this, it has cabin light in

three positions, sports-type spherical shift knob, sun visors on both sides, 3 assist grips and lots

more inside the car.

Maruti Swift Diesel 'Vdi'

Apart from all those features mentioned with the Ldi, you can get front and rear electric

windows and central door locking in the comfort segment. On the other hand, the Vanity mirrors,

day/night rearview mirror, head restraints (rear seat) and 12V accessory socket in central console

14 | P a g e

are also some of the extra features which are found inside the car. he additional external features

include colored door mirror cowls and handles, front fog lamps and 165/80 R14 steel wheels with

cap (tubeless)

Maruti Wagon R

Wagon R with its 1061cc low friction engine does not only run, but always fly high with its

super power of 64bhp@6200rpm and faster acceleration. Its smooth pick up has made this car more

popular than other cars in this category.

Its on board computer of 16 bit capacity always keeps an eyes on the performance of the

engine. Its engine configuration of 4 valves per cylinder capacity keeps its fuel consumption lower

than other cars. Its Dual Distribution less Digital Ignition (DDLI) gives better start and ideal power

distribution. At the same time its mileage of 14.15 kmpl and other features make it more reliable car

to the buyer.

There are four variants in this car:-

Wagon R Lx Wagon R Lxi Wagon R Vxi Wagon R Ax Wagon R Duo

Wagon R Lx

It is well equipped with chrome plated grille, clear headlamps and tail lamps, right outside

rear view mirror, front wiper (2 speed + intermittent), new plush upholstery, air conditioner with

heater, full flat front seat, remote fuel lid opener, new headlamp leveling device etc.

Wagon R Lxi

Along with the features that are present in WagonR LXi, few exclusive features present in

this model are central door locking (all 5 doors), electronic power steering, roof rails, newly added

body colored bumpers, right outside rear view mirrors etc.

15 | P a g e

Wagon R Vxi

Apart from the features that are present in WagonR LXi ,few exclusive special features are

only available in this model like side molding, front power window, rear defogger, full wheel

covers, boot lamp, day/ night rear view mirror, electronic tachometer, “Key Not Removed” warning

buzzer, “Lights On” warning buzzer, vanity mirror, newly added accessory socket, two tone leather

steering wheel cover; newly added anti lock braking system (ABS), dual SRS airbags, key less

entry etc.

Wagon R AX

Along with the common features that are present in other models, this model contains

special features like right and left outside rear view mirror, new added roof rails etc.

Wagon R Duo

This extremely dynamic and vibrant variant of WagonR is flooded with all the latest

technologies and features not only externally but internally too. As the name itself suggests, it has

been designed to run on both petrol as well as the CNG mode whichever ways you want it to be.

The car has got some latest modifications such as 3 spoke steering, matching door trim fabric and

much more. It has been stuffed with some highly safety features such as intelligent computerized

anti theft system (iCATS), dual SRS air bags that minimizes the force of impact on passengers

during jerks, and crumple zone. Apart from Maruti Suzuki, for my researches I have to study some

other company through secondary resource .these are as follow . . .

16 | P a g e

INTRODUCTION OF AUTOMOBILE INDUSTRY IN INDIA

The automobile industry has been growing by leaps and bounds. With the crazy for new

models on the rise, the car manufacturing companies are vying with one another in terms of

upgrading the existing models with added features and introduction of new models, but all these

vehicles are always projected as rich man’s property, which the average salaried middle-class man

cannot afford. At this juncture, the Manufacturer Certified Pre-owned (MCP) Programs are

designed to give buyers the chance to purchase a used car with complete confidence by offering

some or all of the benefits like comprehensive vehicle inspection, extended warranties, strict

qualification guidelines, roadside assistance etc.

The automobile industry has been growing by leaps and bounds. With the crazy for new

models on the rise, the car manufacturing companies are vying with one another in terms of

upgrading the existing models with added features and introduction of new models, but all these

vehicles are always projected as rich man’s property, which the average salaried middle-class man

cannot afford. At this juncture, the Manufacturer Certified Pre-owned (MCP) Programs are

designed to give buyers the chance to purchase a used car with complete confidence by offering

some or all of the benefits like comprehensive vehicle inspection, extended warranties, strict

qualification guidelines, roadside assistance etc.

INDIAN AUTOMOBILE INDUSTRY

The automotive industry is one of the largest industries worldwide and in India as well. The

automotive sector is a vital sector for any developed economy. It drives upstream industries like

steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries like

advertising and marketing, transport and insurance.

The automotive industry can be divided into five sectors:-

1) Passenger Cars

2) Multi- Utility Vehicles (MUVs)

3) Two- and Three- Vehicles

4) Light Commercial Vehicles (LCVs) / Medium and Heavy Commercial Vehicles (MHCVs)

5) Tractors

17 | P a g e

INTRODUCTION OF MARUTI SUZUKI HOSHIARPUR AUTOMOBILES

Hoshiarpur automobiles is one of the best business partners of maruti suzuki family was

established in the year 2001 by S.AJVINDER SINGH. S AJVINDERSINGH being bkessed with

requisite caliber and vision always had the inspiration of becoming icon of busisness.

S.GURPREET SINGH has taken over the reign of hoshiarpur atomobiles oct 2012. A young

intelligent, confident, bright, talented and having a charimatic personality presnts him a very

dignified manner he is versatile and dynamic CEO and under whose able leadership, hoshiarpur

automobiles has achieved a tremendous result and remarkable progress in all spheres.

The inauguration of laying foundation stone of hoshiarpur automobile showroom at singriwala was

inaugurated by hon'able Sant Satnam Singh Ji , on 2nd march 2001.

18 | P a g e

The following table presents a comparative view of the extent of motorization in India

vis-à-vis certain other countries in the world

Country Passenger Cars in Use

per Thousand Persons

Two-Wheelers in Use

per Thousand Persons

Developed Countries

U.S.A 478 14

United Kingdom 373 12

Japan 395 115

Germany 508 36

Emerging Economies

China 3 8

Indonesia 14 62

Philippines 10 14

South Korea 167 59

India 5 27

MARUTI TRUE VALUE

19 | P a g e

Taking advantage of the present market scenario, Maruti Udyog Limited, established in

February 1981, stepped into action to cater to the vehicular needs of the people belonging to the

lower middle class. The company has come out with as innovative idea “Maruti True Value”, to tap

the potential middle class segment. Under this program, the buyer can either exchange his old

model car belonging to any brand for a used one or for a brand new Maruti vehicle, or he can

purchase any used Maruti car. Definitely this is not a second hand car showroom, but a pre-owned

car showroom. The prime objective of the company is to retain its customers and to bring in more

customers into its fold. Under the Maruti True Value services, Maruti cars which are less than 10

years old or ones which have done up to 1,00,000 km and have changed up to two previous

ownerships are accepted for purchase from the customer.

Then, designated engineers from Maruti, whose are present at the True Value outlets

conduct a standard 120-point check of the vehicle brought to the outlet. The documents of the seller

are also checked for any irregularities. MUL has trained its staff at the select dealer outlet to handle

its pre-owned cars business. Cashing in on the reliability of the brand name,, the company provides

a higher resale value for the Maruti vehicles. Maruti True Value customers enjoy all the advantage

of dealing directly with India’s most trusted car company. The company assures a customer of

providing quality, reliability, transparency and convenience, all under one roof. Its strong network

of 172 showrooms across the nation provides a very convenient option very close to a customer.

COMPETITIORS OF MTV:

Many automobile companies are in used car business, which are giving competition to MTV.

Some of those companies are listed below:

1) Hyundai advantage

2) Tata assured

3) Ford assured

4) Mahindra first choice

5) Toyota you trust

6) Honda auto terrace

KEY DEMAND DRIVERS

20 | P a g e

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.

ANALYSIS OF MARUTI TRUE VALUE

Strengths of MTV:-

1) Leader in Certified Pre-owned car market

2) Benefit due to association of Maruti brand

3) Extensive dealer network

4) MTV has become vital link for sale of New car through various offer

Weakness of MTV: -

1) Lack of training of DSE (Dealer Sales Executive)

2) Communication gap in rural area like Faridabad, where dealer are far behind to penetrate that

market despite the fact of that area has high income level people.

3) Conflict between New car showroom „s GM and True Value Outlet‟s GM

4) Lack of advertisement of Maruti True Value brand

5) Space limitation at True Value Outlets due to which dealers are unable to show case their product

Opportunity of MTV:-

21 | P a g e

1) Big market : Domestic & Abroad

2) Economic growth is sound and promising in future

3) Increasing income of middle class segment, which are potential customer group

4) Increase of excise duty on CKD cars, which would be in result of hike in car prices. Due to

which demand of used cars would increase.

Treats of MTV:-

1) Aggressive selling strategy of Hyundai advantage (competitor of MTV)

2) Hike of fuel prices due to which people are preferring public transport

3) Close competition from two wheeler segment

LIMITATIONS

This research is primarily based on the primary data from the users. This study has

successfully examined the major factors responsible for deal fail in MTV outlet based on

respondents‟ perception on various factors; future research may include examining the factors

importance. Future research may also consider the impact of other demographic variable.

Limitations of the Study Time Constraint:

The time period given for the preparation does lack some estimation as the progress of the

report is dependent on the appointment so given by the professionals and the customers to be

surveyed. Moreover being a MBA student regular assignment, projects, studies are part and parcel

of life hence to chalk out time for extra activities become a bit difficult, but still I am trying hard to

come up with this constrained and to give my 100%.

Possibility of Sampling Error:

The sample though selected through simple random basis but still there is a possibility that

the sample may suffer through judgmental error or any other error. The sample selected for study

may give wrong information or sample selected may not be right for study. Though proper and

22 | P a g e

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

sufficient steps have been taken to control these errors but still there is some possibility that the

survey report may not reflect the true feelings of the respondents.

Management Biasness:

Maintaining a good image is far hard than making a new image, hence in order to retain its

customers, both existing and future prospects, the management can give wrong information in order

to make a good image in front of me. In order to ensure the accuracy of the data given by the

company the data needs to be cross checked, but still there is possibility that the management can

succeed in presenting the wrong information to me. Dependency on Questionnaire: The main

source of the primary data is expressed in the answers of the questionnaire. The answers of the

questionnaire will be affected greatly by the moods, emotions and attitude of the customers during

the time of the survey. Moreover of the respondent intentionally wants to hide or misrepresent the

data then that could be controlled. For this cross questions are put but still there are chances that the

respondents present wrong information.

TRENDS IN THE INDIAN PASSENGER CAR INDUSTRY

23 | P a g e

CHAPTER 2

OBJECTIVE

The name of my project is “MARKETING STRATEGY AND DEAL BETWEEN TRUE

VALUE AND OLD CAR'S OF MARUTI SUZUKI (PVT) LIMITED” tells about the objective of

the study in a nutshell. Apart from these basic objectives there were other objectives for carrying

out the project.

These are enlisted below:-

1. Competitor analysis

2. Used car Market trend

3. Loop holes in the system’s process

4. New entries in the market

24 | P a g e

CHAPTER 3

SWOT ANALYSIS MARUTI SUZUKI

25 | P a g e

Strengths

Brand NameLarge Distribution NetworkWide product offering at different price pointsCheapest Cars in corresponding segmentsEncouraging exportsAwarded many awardsEconomy with technology

Weakness

Lack of in house R & DNew model introduction limited to only cosmetic changesDominance mainly at lower level only (Swift)

Opportunity

Rise of Indian middle class and small citiesA booming economyRising exports

Threats

Many players fighting for the same cakeEntry of new playersCannibalism

STRENGTHS

1. Brand Name: Maruti Suzuki has emerged as a strong brand name in recent times. Backed with

the parent company Maruti Suzuki this is recognized as a strong player in worldwide

26 | P a g e

automotive market, Swift has definitely a value associated with it any individual will like

associatd with.

2. Large Distribution Network: With a strong dealer network of around 3000 dealers al around the

country, Maruti Suzuki has made its presence felt in each and every corner of India.

3. Wide Product offerings at different price points: Maruti Suzuki has launched various models in

various segments and hence has a very good product mix of offerings as different price points.

4. Cheapest cars in respective segments: Maruti Suzuki has always followed an aggressive pricing

policy. As a result it has its cars priced at lowest possible rates in respective segments.

5. Encouraging Exports: Backed by a strong production and a global setup at Gurgaon, Maruti

Suzuki is exporting a lot. An export of worth Rs. 1,325 crores has been achieved in last six

months.

6. Awarded Many Awards: Maruti Suzuki has been awarded with many awards and recognitions

like “The Star Company” amongst unlisted companies by Business Standard this year. Its

various models like Swift has achieved many awards, thereby increasing the brand value of the

company.

7. Economy with technology: Maruti Suzuki’s cars have always seen as a company producing cars

blending economy with technology. Swift’s initiative of putting a 16-bit microprocessor on

board has proved as one of the major reasons for its success and that too for the lowest price in

its segment.

27 | P a g e

WEAKNESSES

1. Lack of in house R & D: Maruti Suzuki do not have a comprehensive R & D department.

2. New model introduction to only cosmetic changes: There is no major design changes incorporated

in Maruti Suzuki products. Only some cosmetic changes have been made.

3. Dominance mainly at lower level: Maruti Suzuki dominance in Indian market is only at its lower

level segments like Swift in B-Segment and Accent n C-Segment. It has to focus on its upper

segment models to strengthen its position in Indian car industry.

OPPORTUNITIES

1. Rise of Indian middle class and small cities: As a phenomenonal growth is seen in recent times

in Indian middle class and the purchasing power of working class individuals. Also a rise in

small cities across the country has given a great opportunity to Maruti Suzuki for achieving a

higher growth rate in coming times.

2. A Booming Economy: Indian economy is growing at a rate of on an average of 7% every year

thereby giving an opportunity of larger sales in each and every segment.

3. Rising exports: With a export of Rs. 1,325 crores in last six months, Maruti Suzuki has a great

opportunity of achieving a export target of Rs. 2,700 crores in this fiscal year.

THREATS

1. Many players fighting for the same cake: There a many major players in the B-Segment and

since the size of market is not expanding rapidly, Maruti Suzuki has a major threat in form of

tough competition.

2. Entry of new players: with coming of Tata Indica and other players planning to come out with

much more models in B-Segment, the competition is just getting hotter.

3. Cannibalism: to some extent the Zen is affecting Swift because of its price. Thus Maruti Suzuki

has to focus more on its positioning strategy of Zen and Swift.

28 | P a g e

CHAPTER 4

RESEARCH METHODOLOGY.

This dissertation work is on Automobile Sector specifically four wheeler market. There are

different companies’ uses their different strategies to grab the market which increases the potential

customer as well as market share. So research methodologies are described below:

Data Sources

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 research as it helps in the testing of hypothesis. The method of sampling was the

Random 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 part.

29 | P a g e

MARKET RESEARCH

Market research can be sub divided into three parts.

1. Observation

2. Survey

The brief description of all the methodologies is enlisted below:

1. Observation: - Here I used some of the observations methods.

These are enlisted below briefly: -

A. Communication and conversational analysis :-

Investigation of the patterns in the organization of people's interaction (it would be possible

to use the principle of analyzing a conversation between two travelers, or one traveler and one

transport enquiry office operator in real situations, in order to identify the needs for the traveler in

specific contexts, what are the difficulties encountered, how a system could resolve these

difficulties,...). One of these methods is the language / action approach

which considers the language as a means by which people act. Advantage of this method: it

provides a complete and logical conceptual frame in order to investigate all kinds of conversation.

Disadvantage of this method: many situations are characterized by subtle communication

processes not taken into account by the model. There is also a difficulty in labeling an interaction

and a message especially if they do not fit into the request or promise categories.

B. Participant observation:-

The investigator takes part in the tasks alongside other operators. It may be a useful data

collection approach if skilled performance is such that actions are "semi-automatic" in which case

users may find it difficult to verbalize how they are achieving the task goals. This type of

observation can also be useful if aspects of team performance are being investigated to understand

how the team members are organized and perform their tasks.

30 | P a g e

C. Passive observation :-

At the simplest level passive observation, where the person conducting the observation

quietly observes and records the user activity, can be used to record some details of the processes

which the user undertakes. Passive observation has the advantage that it minimizes the intrusion

which the user experiences. One problem with passive observation is the practical difficulty in

recording sufficient detail of the activity. This can be overcome through the video recording of user

activity which, after transcription into textual form, can provide a highly detailed analysis.

D. Usability Testing :-

Usability testing is a technique to evaluate the ease of use or ease of learning of an

interactive system. During a usability test a real future user uses (a prototype of) the system while

one or more observers look at how this is done. Usability tests are often task-oriented, i.e. the test

user receives a set of predefined tasks to perform. Usability tests often use the think aloud

technique, i.e. the test user is asked to say aloud what he thinks while using the system.

It has 2 types. Obtrusive observation: -

1) Think about what you want to ask before the test

2) Ask open questions

3) Don't blame the test user

4) Don't ask the test user for design solutions

Unobtrusive observation: - Observe: be quiet, watch, understand.

1) Don't explain

2) Don't ask the test user's opinion

3) Don't defend the design

4) Don't apologize

5) Don't suggest Don't contradict the test user nor agree with him/her: stay neutral

2. Survey Method: -

Basically my survey method focused into interview, secondary data collection from the

competitors, vendors and suppliers. The brief description are enlisted below:-

31 | P a g e

Interview :- Interview has been conducted to different clients, suppliers, inter departments. This

entails: -

1) Questioning (face to face)

2) Basic Methods to Get Customer feedback

3) Customer Satisfaction

4) Customer Service

Data Collection :- Secondary data for automobile sector has been collected from Annual

Reports, Journals, Websites, Working Files, Speech, Competitors’ News etc.

INSTRUMENTS USED

1. MS OFFICE

2. WEB SEARCH ENGINE

3. COMPLIANCE REPORT

4. NEWS & PRESS RELEASE

32 | P a g e

CHAPTER 5

DATA ANALYSIS

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

(i) Yes

(ii) No.

5%

15%

25%

35%

45%

55%

65%

75%

85%

yes

no

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.

About the reasons, 65% of the respondents who are aware about the market boom feel that it

reflects the resilience of the Indian economy and reflects a true picture of it. This they attribute to

the persistent increase in Sensex and continuing economic growth rate which is somehow near the

double digit mark. 27% of the respondents who are aware about the market boom feel that this is a

33 | P a g e

temporary situation which is likely to recede. Rest of the respondents could not attribute any

concrete causal relationship for the market boom.

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

34 | P a g e

5%

15%

25%

35%

45%

55%

only direct sales method

only indirect sales method

both

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

35 | P a g e

3%

8%

13%

18%

23%

28%

33%

38%

43%

yes no

cant say

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

36 | P a g e

3%

8%

13%

18%

23%

28%

33%

product specific

company specific

personality specific

cant say

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

(xi) Yes------------------------------------------------- 34 percent

(xii) No----------------------------------------------------- 27 percent

(xiii) Do not know/ Cannot say-------------------------39 percent

37 | P a g e

3%

8%

13%

18%

23%

28%

33%

38%

yes no

cant say

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

(xiv) Yes------------------------------------------------- 55 percent

(xv) No----------------------------------------------------- 12 percent

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

38 | P a g e

5%

15%

25%

35%

45%

55%

yes no

cant say

39 | P a g e

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

sector in India?

(xvii) Yes------------------------------------------------- 34 percent

(xviii) No----------------------------------------------------- 32 percent

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

32%

33%

34%

yes no

cant say

40 | P a g e

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

5%

15%

25%

35%

45%

55%

65%

75%

yes no

cant say

41 | P a g e

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

5%

15%

25%

35%

45%

55%

65%

yes no

cant say

42 | P a g e

10. Future of the automobile industry in India.

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

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

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

5%

15%

25%

35%

45%

55%

65%

75%

yes no

cant say

43 | P a g e

11. Major Weakness of Maruti Suzuki’s Marketing strategy.

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

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

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

5%

15%

25%

35%

45%

55%

65%

75%

branding

publicity

infrastructure assessment & de-velopment

44 | P a g e

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 / cannot say

5%

15%

25%

35%

45%

55%

reduced the profit margin

made industry more competitive

do not make any significant effect

45 | P a g e

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/ cannot say

5%

15%

25%

35%

45%

55%

65%

75%

Maruti is growing and has good future

Maruti is like any other auto-mobile company

cant say

46 | P a g e

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

47 | P a g e

3%

8%

13%

18%

23%

28%

33%

only brand demand-supply factor

only quality others

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

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

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

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

Those who believe that brand extension is necessary as part of its

marketing strategy holds the view that when a known brand extends into a product

category that involves sophisticated and state-of-the-art technology, consumers face uncertainty

and perceive a financial risk when considering the extension for purchase. The recognition that

48 | P a g e

brands are a powerful yet underutilized assets is why trademark licensing has become a popular

marketing strategy. Because many brand owners don't have the resources to pursue every viable

business opportunity, they utilize trademark licensing to enter new markets beyond their core

competencies.

49 | P a g e

5%

15%

25%

35%

45%

55%

65%

75%

yes

no

cant say

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

give the reasons as you think.

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

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

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

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

5%

15%

25%

35%

45%

55%

quality based

economical

branded

cant say

50 | P a g e

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

(i) Yes ------------------------------------------------------------------ 18 percent

(ii) No -------------------------------------------------------------------- 74 percent

(iii) Do not know/ Can not say ------------------------------------------ 08 percent

5%

15%

25%

35%

45%

55%

reduced the profit margin

made industry more competi-tive

do not make any significant ef-fect

51 | P a g e

CHAPTER 6

OBSERVATION , CONCLUSION AND RECOMENDATION

EXECUTIVE SUMMERY

Title

The Study of Consumer buying behavior towards small & medium car segment with special

reference to Maruti Suzuki India ltd.

Issue

Consumer behavior is ‘the mental and emotional processes and the observable behavior of

consumers during searching purchasing and post consumption of a product and service. People buy

different products from different brands to satisfy their needs. Consumer purchases are influenced

strongly by cultural, social, personal and psychological characteristic. Although marketers cannot

control such factors, they must give attention to them. Boston Analytics, a customized knowledge

services company, has announced the release of its “Automotive Industry in India” report as a part

of the series of monthly reports that analyze consumer observations and sentiments regarding a

automotive sector. According to this report consumer think about the following aspect while

making decision of purchase a car:

CAR PURCHASING PREFERENCES

Primary factors of preference

Price and fuel efficiency are the primary features that consumers expect today.

There will be an increase in the importance of fuel efficiency in approximately three to five

years from now for consumers.

Sales service, brand image/prestige, and resale value are secondary factors of choice today

and will remain so for the coming three to five years.

Environmental issues have yet to take root in India and do not show signs of becoming a

major factor for coming three to five years.

52 | P a g e

Car size

Affluence and aspiration are growing in parallel—The Indian consumer prefers a mid-size

car.

Our survey reveals that approximately one in two Indian consumers prefer a roomy mid-size

family car.

Indian versus foreign brand

There is evidence of “buy-Indian” mindset across the metros

Approximately three in four respondents prefer an Indian brand over a foreign one recently

launched versus established model

Indian consumers are divided in their preference for recently launched versus established

models of cars.

According to the results of the survey, 58% of respondents nationwide prefer a recently

launched model by a slight plurality.

Color preference

The color pie in the Indian car market shows that White is the most preferred color, closely

followed by Black and Silver

Approximately 29% of respondents preferred White, followed by 27% and 21% of

respondents opting for Black and Silver/Grey respectively

53 | P a g e

HOSHIARPUR MOTORS

54 | P a g e

MARCH MONTH

55 | P a g e

CONCLUSION

Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor

Corporation of Japan was India’s 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 bestselling 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 finalizing a purchase. “It’s smarter to think about

emotions and attitudes, if marketers are to do a better job of marrying what a car offers to the

consumer’s image of the offerings.

The mindset of the Indian consumer is such that he is delighted if he buys a pen a little

cheaper than his neighbor. Things are, however, slowly changing and customers at the upper end of

the market are now ready to pay more for more. I hope that this approach will soon enter the small

car segment, maybe not with the same intensity .

“Success will largely be determined to the extent a company can differentiate itself in terms

of intangibles that go with a car”. Thus, success could well hinge on the best of bundle of services

that a carmaker can provide. Maruti Suzuki grew from zero to the 500,000 mark and the number

One sales spot in India in just five years. Looking at the present scenario it can be said that though

there is lot of competition in the auto world Maruti Suzuki is picking up well.

56 | P a g e

RECOMMENDATIONS

Key attribute components:

Operational attributes.

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

Brand Image.

Customer Specific Details.

An excellent service & support infrastructure.

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

Strong customer relationships

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.

57 | P a g e

CHAPTER 7

QUESTIONNAIRE SAMPLE

1. Any Car model you have in mind ?

Q 2. Which fuel are you interested in ?Petrol Diesel

Q 3. What is to most priority expectation from the car ?Mileage Features Power Looks Value of money

Q 4. How many kilometers you drive in a month?1000 1000 to <= 1500 1500 to <=2000

Q 5. Which color are you interested in ?Color

Q 6. What is your approximate annual house hold income (rs) ?<=3 lac 3 lac to 6 lacs 6 lac to 10 lac

Q 7. What will be you mode of payment?Cash Self Finance Company finance

Q 8. Who will be the driver of car ?Male (husband) Female (wife) Driver

Q 9. Which car you already have ?

Q 10. By when, are you expending to finalize your new car ?<=15 days (hot) 16 to 30 days (warm) <=30 days (cold)

Customer detail :-Name

Approximate Age :-< 30 30-40 40-50 50 above

Address

Phone number :- Date .........................................

58 | P a g e

Mobile Landline Nil

BIBLIOGRAPHY

Marketing Management by Phillip Kotler

www.google.com

www.wikipidea.com

www.marutisuzuki.com

59 | P a g e