SIP the Report Amit Garg 12BSPHH010097

7/27/2019 SIP the Report Amit Garg 12BSPHH010097

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SIP/Maruti Suzuki India Ltd/IBS/12BSPHH010097

A REPORT

ON

“MARKET RESEARCH AND ANALYSIS ON A3 SEGMENT OF AUTOMOBILE

INDUSTRY IN CONTEXT TO SWIFT DZIRE”

Submitted by: Amit Garg

12BSPHH010097 A Report Submitted in the partial fulfillment of the requirements of MBA

Program of IBS Hyderabad

Company Guides: Faculty Guide:

Mr. Sanjeev Handa Dr. JKS Chakravarti

General Manger(Marketing) IBS Hyderabad

Mr. Tushar Agarwal

Manager(Marketing)

Miss. Vasudha Girdhar

Brand Manager



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Authorization letter

I hereby declare that all the work shown in my project is true to my knowledge, and has beencompleted at MARUTI SUZUKI INDIA LTD New Delhi. This research study was conductedover a span of 10 weeks from 15th, March 2013 to 1st June 2013. This project is meant for a partial fulfillment of the MBA program of IBS, Hyderabad.

Yours FaithfullyAmit Garg

12BSPHH010097

Acknowledgements



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I am extremely grateful to IBS Hyderabad for having prescribed this internship and project work

to me as a part of the academic requirement in the MBA course. The completion of this project

work has enabled me to gain invaluable knowledge.

I would like to thank Mr.Sanjeev Handa – General Manager, Maruti Suzuki India Limited, who

gave me a wonderful opportunity to work, learn and grow in their esteemed organization.

I would like to express my gratitude towards Mr.Tushar Agarwal – Manager (Marketing) and

Miss Vasudha Girdhar – Brand Manager, whose invaluable support and guidance has helped

me to gain knowledge of various aspects of Marketing and has given me an opportunity to

sharpen my skill-sets and become an efficient manager.

I would further like to give my special thanks to Various DSE’s of Maruti and to all the staff members of Various Dealers who have helped me during the course of my study.

I would also like to express my gratitude towards Dr. JKS Chakravarti, who continually and

convincingly conveyed a spirit of excellence and excitement with regards to his support and

encouraged me to work optimally, which is one of the most essential prerequisite of an effective

manager.

At this juncture, I wish to appreciate the management and staff of Maruti Suzuki India Limited

for providing the entire state of the art infrastructure and resources, to enable me to complete and

enrich my project.

Yours Truly

Amit Garg

Contents



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Page No.

Executive Summary…………………………………………………..

1. Introduction1.1 Background……………………………………………….

1.2 Objectives………………………………………………….

1.3 Methodology………………………………………………

1.4 Scope and Limitation……………………………………..

2. Economic Industry Analysis

2.1 Background………………………………………………..

2.2 Indian Automobile History……………………………….

2.3 Current Statistics…………………………………………..2.4 SWOT Analysis………………………………………….....

2.5 Reason for High growth…………………………………...

2.6 Union Budget 2012-13 Impact……………………………..

2.7 Current Problems of Automobile Industry……………….

2.8 Michael Porters 5 Force Analysis………………………….

3. Company Analysis

3.1 Introduction………………………………………………....

3.2 Products……………………………………………………..

3.3 SWOT Analysis…………………………………………….

3.4 Manufacturing units of Maruti Suzuki …………………..

3.5 Company Policies…………………………………………..

3.6 A3 Segment Analysis………………………………………..

3.7 Comparison…………………………………………………

3.8 Maruti Suzuki Promotions………………………………

4. Project Specific Analysis

5. Findings…………………………………………………..

6. Recommendations……………………………………….

7. Contributions…………………………………………….

8. Learning from SIP………………………………………



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9. References…………………………………………….....

10. Annexures…………………………………………….....

EXECUTIVE SUMMARY

I Amit Garg a 2nd year student of IBS Hyderabad have been doing my internship program in

Maruti Suzuki India Limited (New Delhi). Maruti Suzuki India Limited (MSIL, formerly

known as Maruti Udyog Limited) is a subsidiary company of Suzuki Motor Corporation, Japan.

The company mainly deals with passenger vehicles. It was started off in the year 1981 though



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production started in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the

time was the only modern car available in India.

Project titles “Market Research and Analysis on A3 Segment of Automobile Industry in

Context to Swif t Dzire ”

The main objective of project is to conduct the market research for maruti Suzuki in A3 segment

along with consumer behavior towards swift dzire and its brand loyalty. Also to have overview

of competition prevailing in the same segment through competitive analysis(Honda Amaze) and

lost case analysis. Also consumer promotion tracking on monthly basis was done to know what

kinds of offers were given by the competitors on their products.

The A3 segment can be further divided into A3+ and A3- .Usually A3 segment (midsize)

consists of cars ranging in length from 4000 – 4500mm.While A3- can consists of car ranging in

length till 4000mm. eg. Swift dzire, Hyundai accent, Honda amaze.Swift dzire is going to be our primary product in the project. It has been a market leader in the

A3- segment.

Indian government wants to promote small cars as they are eco- friendly and consume less fuel

and also to reduce congestion. Thus cars measuring less than 4 metre in length and having an

engine capacity of less than 1.5 litres (diesel) 1.2 litres (gasoline) are classified as a small car and

attract only 12% excise duty while rest of the cars have 27%.

The closest competitor in the market for swift dzire has been Indigo CS, Honda jazz, Hyundai

i20, Toyota etios. Honda is planning to enter the segment with the launch of Honda Amaze, its

first diesel car. This can shake up the market leadership of maruti.

Many compact SUV are being launched by companies which can be a potential threat to this

segment.eg. quanto.

The current potential strategies will be reviewed to see the effectiveness in the market. It can

further be tweak to enhance its effectiveness.

An interesting study is a market research one where there is design of a questionnaire, selectionof customer respondents, conduct of interviews, and study of findings etc. All these were carried

out in a different phases.

Also various other factors were studied such as loyalty among existing customers and customer

relationship, reasons for customer attractiveness towards other brands and product differentiating

factors along with analysis of lost cases for the month of April.



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1. INTRODUCTION

1.1 Background

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a

subsidiary company of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader

in the Indian car market for over two and a half decades.



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The company has two manufacturing facilities located at Gurgaon and Manesar, south of New

Delhi, India. Both the facilities have a combined capability to produce over a 1.5 million

(1,500,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75

million by 2013.

The Company offers 16 brands AND over 150 variants which ranges from people's car Maruti

800 to the latest Life Utility Vehicle, Ertiga.

The portfolio includes Maruti 800, Alto, Alto K10, A-star, Estilo, WagonR, Ritz, Swift, Swift

DZire, SX4, Omni, Eeco, Kizashi, Grand Vitara, Gypsy and Ertiga. In an environment friendly

initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models

across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. With this Maruti

Suzuki became the first company in India to introduce factory fitted CNG vehicles.

In terms of number of cars produced and sold, the Company is the largest subsidiary of Suzuki

Motor Corporation. Cumulatively, the Company has produced over 10 million vehicles since itsinception of its first vehicle on 14th December, 1983. Maruti Suzuki is the only Indian Company

to have crossed the 10 million sales mark since its inception. In 2011-12, the company sold over

1.13 million vehicles including 1,27,379 units of exports. The Company employed over 9000

people as of 31st March, 2012. Maruti Suzuki's sales and service network is the largest among

car manufacturers in India. The Company has been rated first in customer satisfaction in the JD

Power survey for 12 consecutive years. Besides serving the Indian market, Maruti Suzuki also

exports cars to several countries in Europe, Asia, Latin America, Africa ,Oceania and other

countries as well.

1.2 Objectives

Conduct a market research for Maruti Suzuki in A3 segment.

Consumer behavior towards swift dzire and brand loyalty.

To have overview of competition prevailing in the same segment through

competitive analysis (Honda Amaze).

Evaluate the parameters which influence the intention to purchase a vehicle.

The Research would help me in understanding the consumer’s attitude

towards the product and also help me to find out the problem faced by them.

The study would recommend all the suitable strategies to organization which

will enhance the consumer preference for Maruti Suzuki cars.



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This study will also try to find out the areas which need to be improved so as

to gain a competitive advantage.

1.3 Methodology:

PHASE I

Stage 1

Interaction with potential customers, observation of sale pitch made by sales advisors and

secondary research about the products.

Stage2:

Secondary research was carried out by doing literature study.

PHASE I I

Stage 1

Focus Group Discussions were conducted for sales advisors to get deep insights.

Sales Advisors from 5 dealers were convered.

Stage 2

One questionnaire was prepared for analyzing the consumer; mainly focused on the feedback

about the importance of feature and usability. The questionnaire method includes the routine of

collecting information from the consumers.

PHASE II I

Population and Sampling

For this study there are two separate populations that will be examined. The first is of

DSE’s. Here the population consists of the DSE’s which are available in and around Delhi



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NCR. This sample becomes more specific by limiting the DSE’s that are interviewed to

those that specifically deals with A3 Segment Cars. This includes Swift Dzire, Toyota Etios,

Tata Indigo CS, Tata Manza, Chevrolet Sail etc. The second population is that of owners of

A3- Segment cars. This population is further divided into a sample population of Swift Dzire

and others.

An important thing here to note is that all of the samples cannot be from the same dealership.

I have to go to various dealerships in the area so that the perception of people of different

areas can be formed.

Sampling Design

In this project non-probability sampling is being used. Here the sampling involves the

selection of the sample based on factors other than random chance. The methods being used

are convenience sampling and quota sampling . Since I have not been given a list given of

particular Dealership that must be targeted therefore, we are able to target anyone that fits

into our 2 different sample populations. This type of sampling is of convenience. Quota

sampling is being used since we have a certain target that must be fulfilled. These targets are

given in the Research Design section of this report.

Research Design

The design employed in this study is the survey technique. There are two questionnaires that

will be used in total. The first questionnaire (Please see Appendix I) has been given to

DSE’s. The second questionnaire (Please see Appendix II) is specifically to be given to

Customers.

Pilot Study

There are two aspects to having a suitable questionnaire design for our study. One must

verify its reliability in the field and test its validity. A measurement that yields consistent





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Simple descriptive analysis has been applied so as to know the feedback of Current and

Potential customers. A qualitative analysis was done for the focus group discussions

conducted

Stage2:

Factor Analysis was carried out so as to know the factors which are important from

customer’s point of view.

Consumer Sur vey:

Survey was personally conducted by asking questions to the consumers based on the

questionnaire prepared.

Type of Research:

Exploratory research was carried out to understand the mindset of the consumers of Delhi.

Sample Size:

A sample size of 100 consumers was surveyed for the study, which included current as well

as potential customers.

Region:

Delhi was the main region of survey, various local areas within and around Pune was covered

to get a clear picture.

1.4 Scope and L imitations:

Scope:



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Examines and identifies key information and issues about 'Maruti Suzuki India

Limited' for business intelligence requirements

Study and presents the company's strengths, weaknesses, opportunities (growth

potential) and threats (competition). The profile also covers info on business processes, company history, major products

and services, prospects, key challengers and subsidiaries.

Limitations:

Change in certain trends like rise in the price of cars may affect the data.

The research is purely driven by the responses of the Customers.

The research was carried out in only Pune Area.

In getting the right feedback from the DSE’s to fill out the questionnaire. I can make

appointments with other DSE’s but in the end they still may not give the relevant

feedback.

Not all potential buyers are willing to share the required information.

Also not all data is shared with us about the company as it is a highly classified data

which is restricted for use.

Any bias from the perception of individual respondents (i.e., dealers and customers)

could result in several unknown and unseen factors which would result in errors.

The sample size is not very high due to non-availability of data.

2. Economic Industry Analysis

2.1 Background

India is considered as a back office of world, but in the last few years we have seen a tremendousgrowth in manufacturing sector as well. India ranks 3rd in GDP as per PPP (purchasing power parity) in world, India is a member of all the major groups of world like G-20, BRICS, and oneof the founder member of WTO, as per current data of IMF India’s per capita income is 3830$.

Since India has adopted the LPG policy in 1990 it has grown tremendously, since than it hasrecorded continuous high greet rate and have attracted the investors from all over the world to become a prime investment destination. Innovation and efficiency are the two keys of India



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which is helping them to be competitive among the world. India due to its huge talent pool isattracting all the major companies from the world who are investing in India for its R&D,realizing the same, US giant GE in 2000 set up a center for developing products for globalmarket.

But in last few months India has been facing various problems due to which global rating agencyStandard and Poor’s downgraded India’s long-term sovereign rating from stable to negative,which will affect the way foreign investors see India. This down grading may lead to:

Lower down of Business and Investment sentiment

Cost of borrowing of Indian companies may go up

Foreign money in stock market may slow down

Rupee and bonds may be hit

Contribution in India’s GDP:



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Indian GDP growth is being almost consistent; RBI has adopted various monetary policies so asto maintain a steady growth in the country and to support the Indian economy.

As we can see that even though there is a decrease in the growth of GDP it is still among one of the highest growing country of the world.

18%

26%55.60%

Sectors Contribution

Agriculture

Industry

Services

Data Source: Wikipedia



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If we will compare India’s GDP with world GDP than its still growing at much higher rate thanthe world GDP.

One of the biggest problems faced by India is the continuously rising Inflation rate in thecountry.

3.554.06 3.96

1.49

-2.33

4.21

9.32 9.279.82

4.93

9.1 8.81

-4

-2

0

2

4

6

8

10

12

2005 2006 2007 2008 2009 2010

World GDP growth

India GDP growth

As per World Bank

Data

(2011 data not given)



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Inflation stands out to be at a level of 4.89 percent in the month of April 2012 which is

comparatively lower than the previous year for the same month. The average inflation rate in

India was 7.99 percent reaching an historical high of 34.68 percent in September of 1974 and a

record low of -11.31 percent in May of 1976.

The Automobile Industry designs, develops, manufactures, markets, and sells vehicles, and isone of the world's most important economic sectors by revenue.

Automobile Industry, in whole world, as well as in India, is one of the most important sectors of

the economy. As Automobile industry has a very deep forward and backward linkage with many

key segment of economy, it has a very strong effect on Indian economic growth.

The first Motor Car in India was imported in 1898. Later on, the British and wealthy Indians

imported completely-built cars and commercial vehicles. By the end of WW1, 4000 vehicleswere being imported into India per year. Following an encouraging demand forecast, GM and

Ford set up their assembly plants in the early 1920s and 1930s respectively.

2.2 Indian Automobile History

Indian Automobile History can be divided in 4 parts:



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Pre 1984 period: In this era cars were considered a luxury product, government had full

control over the production, Manufacturers were given the license to produce a

predetermined quantity, and expansion was restricted by government. In this period

market was dominated by six licensed manufacturers: TELCO, Ashok Leyland, Mahindra

& Mahindra, Bajaj Auto, Hindustan Motors, and Premier Automobiles.

1985 – 1990: In this period Maruti Udyog was formed with the joint venture between

GOI and Japanese major Suzuki. This led to give a better choice to the consumers in

India.

1991 – 2000: Economic liberalization started in 1991 in India which later on helped to

delicense the passenger car segment in 1993. Hero Honda emerged as a major player in

two wheeler segment. In this era a much sophisticated and unregulated automobile

market started growing with the help of new foreign technology and huge investment

made by international player, as the competition increases advanced technology was

introduced to be competitive in market. A large chunk of money was spent on increasing

the service presence so as to support on road vehicles. Auto finance also started as a key

factor to affect the demand for the vehicle.

Post 2000: As the competition increases the government also helps the industry by

removing quantitative restriction and allowing 100 % FDI in Automobile industry. It also

gave helping hand to various Local manufacturers who initiated production of Vehicle.

Manufacturers focused on improving the output keeping in mind Quality andenvironment prospects.



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Automobile industry is one of the fastest growing Industries in India, Currently India is ranked

as:

6th in Commercial and Passenger vehicle manufacturing.

Asia’s 3rd largest exporter of Passenger cars.

One of the fastest growing market One of the highest contributors in Indian GDP.

The Indian auto industry grew at 13 per cent in last five years.

Market overview

The Automobile industry revenue is projected to reach US$ 145 billion by 2016.



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Automobile production increased from 8.5 million units in 2004 – 05 to 14.1

million units in 2009 – 2010 at CAGR of 10.7 per cent.

Domestic vehicle sales improved at 26.8 per cent y-o-y, from 9.7 million units in

2008 – 09 to 12.3 million units in 2009 – 2010.

Amongst April 2000 and August 2010, increasing foreign direct investment (FDI)

inflow to the automotive sector, including individually automobile and auto

components, totaled US$ 4,710 million.

Inflow of FDI in 2009 – 2010 for the auto components sector was recorded at US$

1.2 billion, which was 4 per cent of the total FDI inflow in the country in the same

period.

This chart shows the % change in production on YOY basis of India and the rest of the world,

it’s clearly visible that even at the time of downturn of world economy India’s automobile

production was steady due to high demand in local market.

2.3 Cur rent Statistics

Mainly Automobile Industry includes:

Passenger Vehicles



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Commercial Vehicles

Three Wheelers

Two Wheelers

As per latest data of SIAM the automobile industries market is divided as:

Segment Wise Market Share for 2011-2012

(as per SIAM - Society for Indian Automobile Manufacturers)

Passenger Vehicles:



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(Figures have been round off to the closest whole number)

Maruti Suzuki is the leader in Passenger Vehicle segment with a huge 38% market share while

the Challenger Hyundai is far behind it.

Commercial Vehicle:



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Maintaining its large market share in this segment TATA Motors has been a market leader of this

segment from a very long time.

Two wheelers:



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We can see that even after parting there ways away with HONDA, HERO Motor Corp is still on

the No.1 spot due to its large presence in country.

Three Wheelers:

Three wheeler Segment can be further divided into two categories of

1. Cargo segment

2. Passenger segment



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The overall three wheeler figure for Carriage and Passenger Diesel three wheeler sums up

to 274233 units. Piaggio has emerged as an undoubted leader in this category.

79%

15%

6%

Market share of Cargo segment

Piaggio

M&M

Bajaj

70%

21%

9%

Passenger segment

Piaggio

M&M

Bajaj



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A continuous liberalized policy adopted by government in automobile sector has helped it to

become a prime destination for many international automobile players. Apart from attracting

foreign players it has also given supporting hand to local players so as to be competitive in

market, due to this the production increases over a period of time which led to increase in export

and employment opportunity for local people. Auto Industry employs more than 12.5 million

people of India who are directly or indirectly related with this industry.

The Sector is also known as the ‘Sunrise Sector’ of the economy. The auto industry’s

contribution to GDP would rise from nearly 5% to 10%, thus making it a greater driving force of

the economy.

The production growth in various segments over last few years is as follows:

(Data Source : SIAM)

Segment 2007-08 2008-09 2009-10 2010-11 5-year

CAGR

Passenger

Vehicles

1,777,583 (15.0%) 1,838,593(3.4%)

2,357,411(28.2%)

2,987,296(26.7%)

17.9%

Commercial

Vehicles

549,006 (5.6%) 416,870 (-24.1%)

567,556 (36.2%) 752,735 (32.6%) 14.0%

Two Wheelers 8,026,681 (- 5.2%) 8,419,792(4.9%)

10,512,903(24.9%)

13,376,451(27.2%)

11.9%

Three Wheelers 500,660 (- 9.9%) 497,020 (-0.7%)

619,194 (24.5%) 799,553 (29.1%) 12.9%

Grand Total 10,853,930 (-2.1%)

11,172,275(2.9%)

14,057,064(25.8%)

17,916,035(27.5%)

12.9%

And Exports performances over last few years are as follows:

Segment 2007-08 2008-09 2009-10 2010-11 5-year

CAGR



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Passenger

Vehicles

218,401(10.0%)

335,729(53.7%)

446,145(32.9%)

453,479(1.6%)

20.9%

Commercial

Vehicles

58,994 (19.1%) 42,625 (-27.7%)

45,007 (5.6%) 76,297(69.5%)

13.4%

Two Wheelers 819,713(32.3%)

1,004,174(22.5%)

1,140,058(13.5%)

1,539,590(35.0%)

24.6%

Three Wheelers 141,225 (-1.9%)

148,066(4.8%)

173,214(17.0%)

269,967(55.9%)

28.6%

Grand Total 1,238,333(22.4%)

1,530,594(23.6%)

1,804,426(17.9%)

2,339,333(29.6%)

23.7%

Automobile Industry even includes Second Hand Automobile market which is also growing at a

very rapid pace.

Second Hand Automobil e Market:

As per Figures of SIAM the current used car market demand is 1.4 million cars annual

Current Market Structure:

Organized: 10%

Unorganized: 90%

i. Vendor Based – 30%

ii.

Direct Dealings – 70%

There are so many Certified used car dealers in India some of them are as follows:

Mahindra andMahindra’s First

Choice

Honda AutoTerrace

Maruti TrueValue

HyundaiAdvantage

General Motors -Chevrolet-OK

Ford Assured Toyota U Trust Tata MotorsAssured

Unorganized market due to lacks services like -warranties, OEM equipment’s, insurance and

taxes are nowadays ignored by many people.

2.4 SWOT Analysis of the Automobile I ndustry





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Reason for High

growth of

Automobile

Industry in India

Economic

Growth

Rural

Economy

Disposable

Income

Infrastructure

Development



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All these things are helping India so as to become a global hub for automobile industry



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2.6 Union Budget 2013-14 Impact

Union Budget 2013-14 Impact on Automobile sector can be seen as:

Finance minister Mr. P. Chidambarame while announcing Union Budget has made following provision for Automobile industry:

Excise duty have largely remained unchanged at 12 per cent

No extra tax for diesel vehicles, which is a relief to the auto sector, although prices of

diesel have been partially deregulated allowing a hike of 40-50 paise a litre per month

for retail customers

Excise duty on SUV’s will entitled to up to 30 per cent duty which is 3 per cent more

than previous year (with duty on SUV taxis, contributing to significant proportion of

sales, remaining unchanged) MUVs, SUVs enhanced

On a positive note, compact SUVs (4 meters in length and with 1.2L petrol or 1.5L

diesel engines) remain at the excise duty slab of 12% only.

The increase in customs duty on imported luxury cars to 100 percent from 75 percent

would channelize the demand towards locally assembled luxury models and be positive

for the domestic industry

The proposal to allocate Rs 148,730 million towards Jawaharlal Nehru National Urban

Renewal Mission (JNNURM) would help prop up sales volumes of Medium and Heavy

Commercial Vehicles (MHCV) passenger carriers to some extent.

Post budget Companies announced an increase in price of their vehicle (SUV’s) and said that it’s

not good news for industry. JLR was affected the most with the budget as most of its cars are

CBU’s.

2.7 Problems of Automobile I ndustry



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Market Reaction:

Shares in Mahindra & Mahindra , India's biggest utility vehicle manufacturer, fell as much as 1.4

percent on Thursday after the country's finance minister proposed increasing excise duty on

sports utility vehicles (SUVs).

Shares in Tata Motors, another big SUV player, fell as much as 0.8 percent after P.

Chidambaram proposed in the country's budget for the upcoming financial year that the duty

would increase to 30 percent from 27 percent.

2.8 M ichael Porters 5 force Analysis

Current

problems of

Automobile

Industry

Swelling

interest

rates

Inflationary

trends

Rising fuel

prices

Lower

growth rate





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Demand: It’s largely cyclical and dependent on various socio economic factors eg: per capita

income, disposable income, Seasonality etc.

Entry Restriction: Due to high amount of capital involved, Distribution network, Availability

of auto components and higher technological advancement.

Bargaining power of supplier’s: Low, due to stiff competition among rivals.

Bargaining power of customers: Very high, due to high availability of options.

Competition: High competition as technological advancement takes very less time, large no. of

manufacturers.

Even after high growth of industry, India is very less penetrated. As per a survey India has only10 passenger vehicles, 4 commercial vehicles and 43 two wheelers per 1000 people. While

globally, these figures are very high. For instance, Germany has 565 cars Korea has 238 cars and

Thailand 57 cars per 1000 population. So there is a huge scope for Automobile Industry.

3. Company Analysis



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3.1 I ntroduction :

MARUTI SUZUKI

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary

company of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader in the Indian

car market for over two and a half decades. The company has two manufacturing facilities

located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined

capability to produce over a 1.5 million (1,500,000) vehicles annually. The company plans to

expand its manufacturing capacity to 1.75 million by 2013. The Company offers 16 brands and

over 150 variants which ranges from people's car Maruti 800 to the latest Life Utility Vehicle,

Ertiga. The portfolio includes Maruti 800, Alto, Alto K10, A-star, Estilo, WagonR, Ritz, Swift,

Swift DZire, SX4, Omni, Eeco, Kizashi, Grand Vitara, Gypsy and Ertiga. In an environment

friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. With this

Maruti Suzuki became the first company in India to introduce factory fitted CNG vehicles. In

terms of number of cars produced and sold, the Company is the largest subsidiary of Suzuki

Motor Corporation. Cumulatively, the Company has produced over 10 million vehicles since its

inception of its first vehicle on 14th December, 1983. Maruti Suzuki is the only Indian Company

to have crossed the 10 million sales mark since its inception. In 2011-12, the company sold over

1.13 million vehicles including 1,27,379 units of exports. The Company employed over 9000

people as of 31st March, 2012. Maruti Suzuki's sales and service network is the largest among

car manufacturers in India. The Company has been rated first in customer satisfaction in the JD

Power survey for 12 consecutive years. Besides serving the Indian market, Maruti Suzuki also

exports cars to several countries in Europe, Asia, Latin America, Africa ,Oceania and other

countries as well.

Originally, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki

of Japan. The BJP-led government held an initial public offering of 25% of the company in June

2003. 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.

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

commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was

the only modern car available in India, its only competitors- the Hindustan Ambassador and

Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti

Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various

several other countries, depending upon export orders.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar in Haryana, south

of Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of 900,000 units per annum.



36 | P a g e


The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a

capacity of 550,000 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 14,50,000 units annually.

About 35% of all cars sold in India are made by Maruti. The company is 54.2% owned by the

Japanese multinational Suzuki Motor Corporation per cent of Maruti Suzuki. The rest is owned

by public and financial institutions. It is listed on the Bombay Stock Exchange and National

Stock Exchange of India.

During 2007 and 2008, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,

over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14

December 1983.

The Suzuki Motor Corporation, Maruti's main stakeholder, is a global leader in mini and

compact cars for three decades. Suzuki’s strategy is to utillise light-weight, compact engines

with stronger power, fuel-efficiency and performance capabilities. Nearly 75,000 people areemployed directly by Maruti Suzuki and its partners. It has been rated first in customer

satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.

Manufacturing facilities

Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a

combined production capacity of 14,50,000 vehicles annually. During a recent meeting of the

Gujarat chief minister with Suzuki Motor Corp chairman & CEO Osamu Suzuki,the Chairman

had said that the work on car manufacturing plant at Mandal near Ahmedabad would be started

soon. Maruti Suzuki to set up second plant in Gujarat; acquires 600 acres

Gurgaon manufacturing facility

The Gurgaon manufacturing facility has three fully integrated manufacturing plants and is spread

over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles annually

but productivity improvements have enabled it to manufacture 900,000 vehicles annually. The

Gurgaon facilities also manufacture 240,000 K-Series engines annually. The entire facility is

equipped with more than 150 robots, out of which 71 have been developed in-house. The

Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy, and Eeco.

Manesar manufacturing facilityThe Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600

acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was

increased to 300,000 vehicles annually in October 2008. The production capacity was further

increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The

Manesar Plant produces the A-star, Swift, Swift DZire, SX4,Ertiga and Ritz.



37 | P a g e


Sales and service network

As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in

all states and union territories of India. It has 2,946 service stations (inclusive of dealer

workshops and Maruti Authorised Service Stations) in 1,395 towns and cities throughout India. It

has 30 Express Service Stations on 30 National Highways across 1,314 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 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 InsuranceDistributors 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.

Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment

Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi

Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE

Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti

claims that its finance program offers most competitive interest rates to its customers, which arelower by 0.25% to 0.5% from the market rates.

Maruti TrueValue

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 341 outlets.



38 | P a g e


N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease and fleet

management solution to corporates. Clients who have signed up of this service include Gas

Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India,

National Stock Exchange and Transworld. This fleet management service include end-to-end

solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services

and Remarketing.

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 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

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

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

Before driving actual vehicles participants are trained on simulators.

Vision and Core Values

Vision

The leader in India Automobile Industry

Creating Customer Delight

And Shareholders Wealth;

A Pride of India

Core Values

Customer Obsession

Fast, Flexible and First Mover

Innovation and Creativity

Networking and Partnership

Openess and Learning



39 | P a g e


Maruti Suzuki is a Global company which has its presence not just in India but all over world.

The company has been rated as the fourth most reputed automobile company in the world. This

has happened because of the contribution of all the stake holders of Maruti Suzuki.

A Maruti Suzuki Customer is always assured of quick and reliable after sales service without

compromising on Quality.

Maruti Suzuki has its presence in all over India with (as on March 31st

2012):

• 2958 Total Service Network

• 1100 Total Sales Network

• 17 Regional Offices

• 17 Area Offices



40 | P a g e


• 04 Zonal Officces.

Which ensures Quick and easy service of vehicle and also easy availability of spare parts for

vehicle.

Maruti Suzuki has a touch point almost everywhere in India, which helps in getting quick access

and service for customers.

The major competitors of Maruti Suzuki are:

• TATA Motors

• Mahindra & Mahindra

• Toyota

• General Motors

• Ford

• Hyundai Motor India Ltd

3.2 Products

Maruti Suzuki mainly deals in: Passenger Vehicles

Passenger Vehicles



41 | P a g e


3.3 SWOT Analysis of Maruti Suzuki

Maruti Suzuki is the market leader in India and has amazing brand equity. Maruti is known for the service it provides and is synonymous with Maruti 800 – the longest running small car in

India. Here is a SWOT of Maruti Suzuki, its Strengths, Weaknesses, Opportunities and Threats.

Strengths

Maruti Suzuki India limited (MSIL) is in a leadership position in the market with a market shareof 37.76 per cent

A1 Segment

• Maruti 800

A2 Segment

• Alto, Estilo, WagonR, A-Star, Ritz, Swift

A3 Segment

• Dzire

• SX4

A4 Segment

• Kizashi

MUVSegment

• Gypsy

• Grand Vitara

MPV

Segment

• Omni

• Eeco

• Ertiga



42 | P a g e


Major strength of MSIL is having largest network of dealers and after sales service centres in thecountry.

Good promotional strategy is adopted by MSIL to transfer its thoughts to the people about its products.

Maruti Suzuki recently attained the 10million domestic sales mark.

Strong Brand Value and Loyal Customer Base are big strengths for MSIL

There are around 15 vehicles in Maruti Product portfolio. Has a good product line with good fuelefficiency.

Alto still beats the small car segment with highest number of sales

MSIL is the first automobile company to start second hand vehicle sales through its True-valueentity.

MSIL has good market share and hence it’s after sales service is a major revenue contributor.

Weaknesses

Interior quality is comparatively low inside the cars when compared to quality players likeHyundai and other new foreign players like Volkswagen,Nissan etc..

Younger generations started getting a great affinity towards new foreign brands

The management and the company’s labor unions are not in good terms. The recent strikes of the

employees have slowed down production and in turn affecting sales.

Maruti hasn’t proved itself in SUV segment like other players.

Opportunities

MSIL has launched its LPG version of Wagon R and it was a good move simultaneously

MSIL can start R&D on electric cars for a much better substitute of the fuel.

New DZire from Maruti has captured the market share in A3 Segment

Export capacity of the company is giving new hopes in American and UK markets

Economic growth of the country is constantly increasing and the government is working hard toincrease the GDP to double digit.



43 | P a g e


Threats

MUL recently faced a decline in market share from its 50.09%(2010) to 37.76 % (2012)

Major players like Maruti Suzuki, Hyundai and Tata has lost its market share due to many small players like Volkswagen- polo. Ford has shown a considerable increase in market share due to itsFigo.

Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to itsrespective competitor’s segment

China may give a good competition as they are also planning to enter into Indian car segment

3.4 Manufacturing units of Maruti Suzuki

Maruti Suzuki owes its leading position in the Indian automobile industry to its strong focus on

indigenization. This focus has driven the Company to set up world-class manufacturing units

with state-of-the-art technology. Every stage of product evolution-design, development,

manufacturing, assembly and quality control, is carried out meticulously. The manufacturing

plants are situated at Gurgaon and Manesar.

Gurgaon Facility



44 | P a g e


The Gurgaon facility spread over 300 acres is located around 25 kms south of Delhi. This facility

houses three fully integrated plants. Together the three plants churn out around 9 lakh units

annually.

K-Series Plant

The Gurgaon premises also houses the 'K Engine' Plant. Commissioned in 2008, the K-series

engine plant has an installed capacity of over 7.7 lakh units per annum. Since the launch of the

engine cumulatively, over 10 lakh K-series engines have been rolled out.

K-series engines are available in 1 litre, 1.2 litre and 1.4 litre capacities. The highly fuel efficient,

technologically advanced K-series engines have been very well appreciated by our customers for

their performance.

Several Maruti Suzuki cars such as the Alto K10, A-star, Estilo, WagonR, Swift, Swift Dzire,Ritz and Ertiga are powered by the K-series engines.

Manesar Facility

The 600 acre Manesar facility located around 25 kms south of Gurgaon facility was inaugurated

in February 2007. The Manesar facility houses two fully integrated plants with a capacity of 5.5

lakh units annually. The third assembly line is in advanced stage of completion and is expected

to be completed in the year 2013.

Both manufacturing facilities are highly automated with advanced robotics, contemporary paint,weld and machining infrastructure. While the different models can be assembled on same lines,

inter plant flexibility helps to increase productivity. On a single line diverse car models can be

made conveniently. Automatic tool changers, centralized weld control systems and advance

numerical control machines help for quick change over between models.

Suzuki Powertrain

Suzuki Powertrain India Limited is a joint venture of Maruti Suzuki with Suzuki Motor

Corporation, Japan.at Manesar. It manufactures world class diesel engines and transmissions for

cars.

SMC holds 70 per cent equity in SPIL the rest is held by Maruti Suzuki.

This diesel engine plant has a capacity to manufacture 300,000 diesel engines a year.

PRODUCTION PROCESS IN MARUTI SUZUKI



45 | P a g e


The production process in maruti Suzuki is set. It works onassembly line processing and involvesthe following steps-

⇒

Blanking

⇒

Stamping

⇒

Welding

⇒

Painting

⇒

Assembly

⇒

Final Inspection

Blanking:: making of blanks from steel coils by blanking process.

Stamping:: making of panels from blanks by stamping.

Dies: to give shape to the car models.

Welding:: making of body parts-chassis, doors.

Robots: spot welding (15 number of spot welding.

White body: completely welded white body.

Cathode electro deception- (paint area): 1st coat of paint on white body-1st coat is same for all body. Intermediate/top coat: (computerized) 2nd & 3rd coat after 1st coat. Heating zone in paintshop. Touch up line/final inspection: final inspection of the painted body.

Assembly line:

Trim line — fitment of lighter component viz. Wiring harnesses, head lamp, ac, etc.

Chassis line — fitment of heavier components- axes, brakes, etc.



46 | P a g e


Engineer assembly line components machines in m/c shops1.cam shaft2.crank shaft3.cylinder head4.cylinder block 5.transmission case

Final line — fitment of seats, ac gas filling &final adjustments.

Vehicle inspection process

First appearance

Drum tester (inspection of brake performance and other functions of the vehicle)

Emission Check — checking of emissions.

Shower tester – endurance testing of the vehicle to pass the water at 1.5kg/cm2 volume.

Final appearance tester — final roll out of the vehicle after final inspection.

Handover to sales and dispatch – handing over to sales and dispatch for delivery to dealer.

Our First Shipment to A-Star to Europe from Mundra Port..Total process time from BlankingToRolling Out of a vehicle ::12 hours

3.5 Company Policies

Promotional Practices

MUL strongly believes in attribute-oriented advertising. In an attempt to reposition M800 as a

choice for those upgrading from a two-wheeler, MUL’s campaign of a child playing with a toyM800 drives home the fuel-efficiency factor: µthe car never stops because the fuelnever finishes. The future communication strategy that MUL has envisioned for M800 is a snapof atypical middle-class family commuting on their two-wheeler. Next to them is another familyexcept that this one is comfortably ensconced in a Maruti 800.

One of MUL’s most ambitious television campaigns launched the Zen Predator. Positioning it asµstrong, sleek and sexy, the commercial showcases the variant’s new styling through the themeof predator and prey in the context of µa modern jungle. The theme is one of a chase that ends inwilling surrender, brought home in the baseline:µSurrender to the new Zen.

The Zen Predator is being aggressively promoted in print. MUL bought the entire advertisingspace on The Week’s first issue of 2004. Additionally, MUL is the first Indian automobilecorporate to utilise the internet for a complete branding exercise, using interactive and pagedomination techniques.



47 | P a g e


Recently, MUL has turned its marketing focus to corporate TV commercials to promote its entirerange of vehicles. The company has rolled out a new corporate TV campaign, featuring theMaruti Puttar. The rationale behind a second TVC featuring the same child model as the M800campaign is to leverage the brand recall of the earlier commercial, driving home the point that AMaruti Suzuki family is a happy family.

MUL is involved in a wide range of sponsorship activities, placing particular emphasis on motor sports. It was the founding sponsor of Raid De Himalaya, and in its fifth year continues to beclosely involved with it. The company regularly holds car rallies for amateur drivers and aspiringrallyists. MUL now has plans to host golf and polo events.

3.6 Significance of A3 SegmentSIGNIFICANCE OF THE STUDY

A3 segment is one of the highest growing segments of the automobile industry and one of the

major profit drivers for any company. Mostly the cars in this segment are derivatives of A2+

Segment. Nearly a billion dollar of investment goes into this segment, therefore A3- segment

sedans derived from these segment cost the company negligible amount of money to develop as

compared to their hatchback counterparts as the platform and most of the parts are the same.

Still the sedans in A3- segment retail at a higher price and therefore quite beneficial for thecompany. E.g. Average Monthly sales of Swift are around 17,000 units while that of Dzire is

15,000 units. Therefore the company is selling an additional 15,000 units of virtually the same

car as a separate brand and model line whose production cost is almost the same and

development cost was negligible.

The Customer is also attracted towards this segment as by paying Rs. 70,000 to 80,000 extra, he

is getting a Sedan which is considered to be an upper class of vehicle in India.

By conducting this study we will be able to gauge the consumer perception and behavior towardsthe A3- segment and by knowing the consumer we will be able to develop an effective sales

strategy for the Dzire in the long as well as the short term so that the Dzire is able to maintain its

status of a star for Maruti Suzuki.



48 | P a g e


3.7 Comparison



49 | P a g e


For the month of April

3.8 MSIL Promotion

Promotional strategies:

Road Shows

The company plans to stage road shows, to display vehicles in the pavilions during various

college festivals and exhibition. This car will appeal to youngsters more.

Data Source:

Management

- Panditz

http://2.bp.blogspot.com/-P0NYTBr_3C8/UYnLb-vPdRI/AAAAAAAAA_M/5089t0Y9Kp8/s1600/Top+20+cars+india.JPG



50 | P a g e


Television advertisements

Advertisements to promote and market our product will be shown on leading television channels.

Major music and sports channels will promote and they will reach out to the youth will be

promoted through Star, Zee, Sony and Doordarshan etc as it has more viewers.

Radio

Radio is the medium with the widest coverage. Studies have recently shown high levels of

exposure to radio broadcasting both within urban and rural areas, whether or not listeners

actually own a set. Many people listen to other people's radios or hear them in public places. So

radio announcements will be made and advertisements will be announced on the radio about the

product features and price, qualities, etc.

Print Ads

Daily advertisements in leading newspapers and magazines will be used to promote the product.

Leaflets at the initial stage will be distributed at railway stations, malls, college areas and various

other locations.



51 | P a g e


Workshops and Seminars

Workshops and seminars will be held in colleges and big corporate to make people aware aboutthe companies past performance and product features, its affordability and usage, vast

distribution network. Road shows will be conducted where free trials of the car would be given.

Banners, neon signs

Hoardings, banners, neon signs displayed at clubs, discs, outside theatres and shops are used to

promote SWIFT.

Booklets and pamphlets

Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to read. These booklets will provide information about our company; the products offered which suits the

customers need accordingly

5. PROJECT SPECIF IC

ANALYSIS

DZIRE’S LOST CASE ANALYSIS

OBJECTIVE OF THE RESEARCH

TO KNOW WERE WE ARE LOOSING DZIRE’S ENQUIRIES .

REGION

NEW DELHI AND NCR REGION.



52 | P a g e


METHODOLOGY

DATA ON – lost cases of the month April 2013.

MODE OF COMMUNICATION – telephonic

SAMPLE SIZE - 100

AGE PROFILE OF THE CUSTOMERS

AGE No.

<20 0

20 -30 28

30 -40 43

40-50 18

50- 60 7

60 -70 4



53 | P a g e


Customers falling in the age of 30-40 have bought the highest number of cars

PROFESSION OF THE CUSTOMERS

0

28

43

18

7

4

0

5

10

15

20

25

30

35

40

45

50

<20 20 -30 30 -40 40-50 50- 60 60 -70

AGE PROFILE

no.



54 | P a g e


41

53

2 1

2

1

business

job

govt

housewife

driver

student

STATUS OF DZIRE’S ENQUIRY



55 | P a g e


CANCELLED 7

POSTPONE 26

LOST TO HATCHBACKS 7LOST TO SEDAN 18

LOST TO MUV/SUV 4

LOST TO CO - VARIANTS 12

LOST TO CO - DEALERS 14cancelled, 8%

postpone, 30%

lost to hatchback8%

lost to sedan,20%

lost to muv/suv, 4%

lost to co-variants 14%

lost to co -dealers, 16%

CANCELLED

POSTPONE

LOST TO HATCHBACKS

LOST TO SEDAN

LOST TO MUV/SUV

lost to co- variants

lost to co- dealer

STATUS OF THE CAR BUYER’S



56 | P a g e


FIRTST TIME BUYERS 20

ADDITIONAL CAR 72

REPLACEMENT CAR 8

0

10

20

30

40

50

60

70

80

first time additional replacement

20

72

8

The ratio of additional car buyers is the highest.

LOST TO OTHER COMPETITORS



57 | P a g e


Amaze 10

Sail 2

Honda city 2

I – 20 2

VERNA 1

QUANTO 1

XYLO 1

I -10 1

Duster 1

AVEO 1

MICRA 1

POLO 1

ETIOS 1

SWIFT 2

INDIGO CS 1

SCORPIO 1



58 | P a g e


34.48

6.90

6.906.903.45

3.45

3.45

3.45

3.45

3.45

3.45

3.45

3.45 6.90

3.453.45

amaze

sail

honda city

I - 20

VERNA

QUANTO

XYLO

I -10

duster

AVEO

MICRA

POLO

ETIOS

SWIFT

INDIGO CS

From above we can see that dzire’s major competitor would be

Amaze.



59 | P a g e


34.48

6.90

6.906.903.45

3.45

3.45

3.45

3.45

3.45

3.45

3.45

3.45 6.90

3.45 3.45

amaze

sail

honda city

I - 20

VERNA

QUANTO

XYLO

I -10

duster

AVEO

MICRA

POLO

ETIOS

SWIFT

INDIGO CS

From above we can see that dzire’s major competitor would be

Amaze.



60 | P a g e


6. F INDINGS

Questionnaire for other Dealers :-

Questions M&M Tata Chevrolet Toyota

1. What is A3-

Segment

According to You?

Since 2006 renalut

logan tied up with

M&M, it has 1.5L

Diesel engine and

they were the first

one to launch the

car in this segment

Compact

Sedan

i.e.Hatch+Boo

t

but not full

executive

sedan

Size(length) and

engine capacity

Length

Engine Capcity

2. Who is the Present

Leader of the

Segment?

Maruti Dzire

Honda Amaze

(Quality,Pricing,Eco

nomy)

Maruti dzire

Toyota etios

Maruti dzire Etios-Toyota-

Brand

Tata

3. What cars do

customers

Compare when

they

Come to showroom

Etios, Sail, Amaze Maruti dzire

Toyota etios

Maruti swift

Swift dzire

Toyota etios

Existing Car,

Looks,

Accessories,

Comfort,

Space, Music

Changes Not

Sure

4. What are the USPs

Of your car

Price Factor-

700000(On Road)

Engine Power

Spacious

Ground Clearance

Value for

money

Maintenance

is low

Looks are similar to

cruze.

Maintenance free

packages are there.

Comfort,

Luxury, Looks



61 | P a g e


5. Which age

consumers do

generally take

away your car

28-40 For taxi – no

age

For private

use – 30 -40

Generally youngsters 25-35

6. Reasons for not

Conversion of

query

To sales

Families , Financial

Issue

Generally buy swift

Dzire because most

of their relatives

say that

Bank loan

might not get

approved.

Sometimes

there is higher

discount on

other cars.

Resale value is very

low.

Parts are not easily

available.

Service stations are

not easily available.

Family Issue

Money

Problem

7. To which car You

have

Lost your sales and

why

Swift Dzire because

people feel that

they are less

expensive to

maintain

Toyota Etios-

Brand,Quality

Maruti dzire Ford fiesta- diesel They have

changed their

mind or

dropped the

idea of buying

the car and

say that they

will let them

know

8. Demographics Educated, Value for

money, who

compare features

People who

run the car

like a taxi,

Consumers

buy more of

Nano

Chevrolet sells good

in Dwarka area

because people are

educated and aware

of latest technology

and its engine

Every kind of

person comes



62 | P a g e


9. What is the most

Preferred color

Silver White for taxi

Silver for

private

Black & silver. Grey

White

Questionnaire for Maruti Suzuki Dealers?

Questions MARUTI

1. When

consumer

s come to

you what

do they

ask for

(Features,Specificati

ons etc)

Brand Value of Maruti Suzuki, People come for Engine, Best Engine in India of

Fiat, 5 step fuel burning so more efficient and noise is less

Also the customer looks for Interior because there has been a change in

interiors lately

2. When they

come here

what all cars

do they

compare?

Toyota Etios, Tata Manza, Tata Indigo CS and Now Honda Amaze

3. Which age

consumersdo generally

take swift

dzire? Is it

their first

car,additiona

l or

replacement

20-28 – First Car

28-40 – Second Car

40 & above – Replacement



63 | P a g e


4. What are the

main aspects

of dzire for

which

consumersget attracted

Interiors, Music System, Looks although not liked very much, Technology has

been improved, Music system now has DSP(digital Sound Process)

5. Reasons why

sales do not

get

converted?

And to what

car do they

loose theirsale to?

Duster has come, Quanto, Switch to some SUV(4*4)

Not feeling right or bought it from other customer, Cash Problem in rural areas

as they don’t have funds to show but do have money

6. Do

Consumers

come into

buy as dzire

or as Maruti

Suzuki

50%- Dzire

50%- Maruti

7. How many

customers

switch from

swift to

ertiga to

dzire and

vice versa

Equal ratio

The people who want boot space switch to dzire but who have parking space

problem go for swift and those who do not require boot switch to swift as they

are not willing to shell Rs.70000 extra for it

8. Are there any

negative

highlights

which

customerspoint out

when they

look swift

dzire

ABS and EBD are missing in Middle level models

Basic Model is too basic

Basic model is given in Marriages or for tour and travel



64 | P a g e


9. According toyou who is

the present

leader in this

A3-

segment?

Maruti Suzuki

Toyota

Tata

Honda

Linea and sail no competion

7. RECOMENDATIONS

PRODUCT RELATED:

My personnel opinion after interacting with costumers, I would like to suggest some important

concerns of customer

First thing which can be done is to up market the interiors of dzire because it was

an important driving factor in buying a car

I even got so many complaints from Owners about the way some dealer treats

customers which need to be checked.

Dzire Regal is good move to give customers something new

Dealerships/ Service related:

Dealers should also maintain a proper stock of parts of all cars, if they don’t have

any part available they should arrange for it.

Sales advisors should focus on customers rather than filling up green forms.



65 | P a g e


Test drive vehicles should be maintained carefully as almost every dealerships

vehicle has some problem.

Sales Advisors should use Video player while dealing with Customers to give

then a good experience.

Various kinds of Rally/ Events related to Maruti Suzuki could be organized in a

particular city.

8. CONTRIBUTION

Proposed various strategies which can be adopted so as to create hype about the

product.

Proposed and Conducted surveys of DSE to get insights for A3 segment.

Finding and Tracking consumer promotion offer by various competitors

Met more than 100 current owners of A3 segment car so as to understand

problem faced by them and what do they expect from the car.

Analysis on lost Cases

9. LEARNING FROM SIP

Dealing with different types of customers. Various procedures to be followed while being in an organization.

Consumer insights about A3 Segment

Various ways of contacting customers and getting the feedback.

Patience.

Various stages of sales and action required at that stage.

How to deal with dealerships/ service provider.



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10. REFRENCES

Websites:

-auto.com

Books

Business Research Methods (ICFAI PUBLICATION)

Text Elements of a Research Proposal and Report by David S. Walonick.



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11. ANNEXURE

Appendix I

Questions with DSE’s

Q1. When consumers come to you what do they ask for.

(features, specification)?

Q2.when they come here what all cars do they compare?

_____________________________________________________

______________________________________________________

Q3.which age consumers do generally take swift dzire? Is it there first

car or replacement or additional

_____________________________________________________



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______________________________________________________

Q4.what are the main aspects of dzire for which consumers get

attracted?

______________________________________________________

Q5.reasons why sales do not get converted? And to which car did we

loose our sale to.

______________________________________________________

______________________________________________________

Q6.Do the consumers come into buy as dzire or as maruti Suzuki?

______________________________________________________

______________________________________________________

How many customers switch form Swift or ertiga to Dzire and vice

versa?



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Q7.Are there any negative highlights which they point out immediately

After looking at swift dzire?

_____________________________________________________

______________________________________________________

Q8.According to you who is the present leader in this A3- segment?

______________________________________________________

______________________________________________________

Appendix II

QUESTIONNAIRE(Customer)



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1. How much is your family annual income?

3 lacs- 4 lacs

4 lacs- 5 lacs

5 lacs- 6 lacs

6 lacs- 7 lacs

Above 7 lacs

2. What is your current working profile?

Student

Working lady

Service person

Businessman Housewife

Any other (please specify)

Unemployed

3. How many members are there in your family?

Individual

2 members

4-6 members

More than 6 members

4. Gender:

Male

Female

5. How many earning people are there in your family?

1

2

3

4

6. In which area do you live?

Urban

Semi urban

Rural



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Any other (please specify)________________________

7. What is the weekly usage of your car according to necessity? Please mark

1 as most necessary.

Particulars 1 2 3 4 5 6 7

Picking and dropping kid

at school

Going office regularly

Going for a long drive

Going for shopping

nearby stores

Visiting relatives

Moving around with

friends

Going to malls ,

restaurants

8. What is the importance of following features in your car according to

necessity? Please mark 1 as most necessary.

Particulars 1 2 3 4 5 6 7

Length

Boot Space

Power & Torque

Looks(Exterior)

Alloys



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Leg Room

Price

Mileage

Interior Color

Safety

Ground Clearance

Ride Comfort

9. What is your weekly usage of car in terms of kilometers?

50 kms

60 kms

80 kms

100 kms

More than 100

10. What drives you towards purchasing a car?

Basic need

Status symbol

Any other (please specify )_________________________

11. How many cars do you presently own?

1

2

3

More than 3

12. Which company car/ cars you are presently using?

Particulars Please tick below



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Tata Motors

Hyundai

Maruti Suzuki

Honda

Mercedes

BMW

Chevrolet

Fiat

Toyota

13. Are you satisfied with your present car?

Yes

No

Personal details

Name : Age :

Marital status:

Mobile no: Landline No:

Email-id:

Address:



Date: Signature:

Documents

SIP the Report Amit Garg 12BSPHH010097