MINOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF

BACHELOR OF BUSINESS ADMINISTRATION

MINOR PROJECT REPORT

ON

Topic of project
Batch: 2021-2024

Submitted By: PROJECT GUIDE

Name of student: Shubham Mishra Name: Shweta Yadav
Enrollment No: 00324001721 Designation: Assistant Professor

Trinity Institute of Professional Studies

Affiliated To Guru Gobind Singh Indraprastha University, New Delhi
 CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work “A STUDY OF MARKETING MIX OF

MARUTI SUZUKI” made by Shubham Mishra, BBA, 1st Year, (00324001721) is an authentic work
carried out by his/her under guidance and supervision of Project guide Name

The project report submitted has been found satisfactory for the partial fulfillment of the degree of
Bachelor of Business Administration.

Project Supervisor

Signature

Name
 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.

I deem it my duty to record my gratitude towards the Project supervisor Name who devoted
his/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.

Signature:
Name of Student
Enroll. No
Course
Class/sem/shift
 DECLARATION

I hereby declare that the following documented Project report titled “Project name” is an original and
authentic work done by me for the partial fulfillment of Bachelors of Business Administration degree
program.

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

Signature:
Name of Student
Course Class & Shift
Enrolment No.
 Table of Content

S. NO Particulars Page No.

1. Chapter-1 (Introduction & Literature Review) 1-15 aprrox

 Introduction(Topic)
 History(Topic)
( Theoretical concept about the topic such as
Importance, Functions, Types Roles) etc.
2. Chapter-2 (Research Objectives & Methodology) 15-30 approx
 Research Objective of the study
 Research Methodology
 Research Design
Types of research design
 Data Collection
Sources of data collection(Primary & Secondary)
3. Chapter-3 ( Data Processing, Analysis & Interpretation) 30-45 approx
 Data processing
 Analysis of the problem under study
 Interpretation of the result
4. Findings 46
5. Limitations 47
6. Suggestions & Recommendations 48
7. Conclusion 49
8. Bibliography 50
9. Annexure 51
 Chapter: - 1
Introduction & Literature Review
 1.1 Introduction

Maruti Suzuki is India’s number one leading automobile manufacturer and the market leader
in the car segment both in terms of volume of vehicle and revenue earned. Until recently
18.28% of the company was owned by the Indian government and 54.2% by the Suzuki of
Japan. The Indian Govt. held an initial public offering of 25% of the company in June 2003.
As of 10 May 2007 government of India sold its complete share to Indian financial
Institution. With this govt. Of India has no longer stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production was started in 1983 with the Maruti 800 based on the Suzuki Alto Kei Car which
at that time was the only modern car available in India. Its only competitor was Hindustan
Motor’s Ambassador and the Premier Padmini were both around 25 years out of date at that
point.Through 2004 , Maruti Suzuki had produced over 5 Million vehicles. Maruti Suzuki
are sold in India and various several other countries depending upon export orders. Models
similar to Maruti Suzuki ( but not manufactured by Maruti udyog) are sold by Suzuki Motors
corporation and manufactured in Pakistan and other south Asian countries.

The company anually exports more than 50,000 cars and has an extremely large domestic
market in India selling over 7,30,000 cars anually. Maruti 800 till 2004 was the India’s
largest selling compact car ever since it was launched in 1983. More than a Million unit of
this car have been sold worldwide so far. Currently Maruti Suzuki Alto tops the sales chart
and Maruti Suzuki Swift is the largest selling car in A2 segment.Due to large number of
Maruti 800’s sold in the Indian market the term “Maruti” is commonly used to refer to this
compact car model. Till recently the term “ Maruti” in popular Indian culture in India,
Hindu’s lord Hanuman is known as “Maruti” was associated with Maruti 800 model.
Manufacturing Facilities

Its manufacturing facilities are located at two facilities, “Gurgoan” and “Manesar” south of
Delhi. Maruti Suzuki’s Gurgoan facility has an installed capacity of 3,50,000 units per
annum. The Manesar facility launched in February 2007 comprises a vehicle assembly plant
with a capacity of 1,00,000 units per year and a Diesel Engine plant with an annual capacity
of 1,00,000 engines and transimission. Manesar and Gurgoan facility have a combined
capacity to produce over 7,00,000 units annually.More than a half of the cars sold in India are
Maruti Suzuki cars. The company is a subsidiary of Suzuki Motors Corporation of Japan
which owns 54.2 percent of Maruti Suzuki. The rest is owned by the Public and Finance
Institution.It was listed on the Bombay ( now Mumbai) stock exchange in India.
During 2007-08 Maruti Suzuki sold 7,64,842 cars of which 53,024 are exported in all. Over
Six Million Maruti Suzuki cars on Indian roads since the first car was rolled out on 14
December 1983
.
Products Offered

Maruti Suzuki offers 15 models and they are, Maruti 800, Alto, Wagon R,
Zen Estilo, A Star, Ritz, Swift, Swift Dzire, SX4, Omni, Eeco, Gypsy and
Grand Vitara.Out of these models Grand Vitara is imported from Japan a
completely built unit (CBU). Swift, Swift Dzire , A Star and SX4 are
manufactured in Manesar and the remaining models such as Maruti 800,
Alto, Wagon R, Zen Estilo, Ritz, Omni , Eecoetc are manufactured at
Gurgoan Plant.

Human Resources

Nearly 75,000 people are employed directly by the Maruti Suzuki and its Partner. It has been
rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J.D.
Power Asia Pacific.
Company’s Profile

Around 1970, Sanjay Gandhi, political advisor and younger son to the then Prime minister of
India, Indira Gandhi, envisioned the manufacture of an indigenous, cost effective, low
maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed an
uninamous resolution for the development and production of “Peoples car”. Sanjay Gandhi’s
company was christened Maruti Limited. The name of the car was was chosen as Maruti,
after a hindu deity named Marut.
Unfortunately Sanjay Gandhi died without fulfilling his dream. After this death , Indira
Gandhi decided that the project should not be allowed to die. Maruti entered into
collaboration with the Suzuki Motors of Japan. The collaboration heralded a resolution in the
Indian car industry by producing Maruti 800. The car went into sale on 14 December 1983.
And from 1980’s to till day today Maruti’s have dominated the Indian Automobile industry as
well as automobile market.

Stock Exchange on which company is listed

Maruti Suzuki is listed on Bombay stock exchange now Mumbai. It is also listed on NYSE
( New York Stock Exchange) as well as stock exchange of Japan.
 Vision, Mission and Core values of Maruti Suzuki

Vision:-

Vision of any company is those values on which company works. As the Maruti Udyog
Limited (MUL) is started by governmental initiatives it tends to be more consumer oriented
and hence cost- effective, but on the other hand Suzuki’s participation ensures not only need
of profit, but the need of maximum profit. The only way of Nora’s dilemma of selecting
principles for the company’s working vision was to maximize profit and sales and hence
Maruti Udyog Limited (MUL) declared its vision as:-
“The leader in the Indian Automobile Industry, creating Customer Delight one and
shareholder’s wealth two eventually become pride of India. Customer Delight One is making
sure that Performance, after sales service and customer are best and beyond expectations,
shareholder’s wealth two is the prime concern for running business smoothly. Maruti Udyog
Limited (MUL) knows this and understands “Customer Is King” , he can change the future of
any company hence goes company’s brand line : COUNT ON US!

Mission:-

Mission is the statement of any organisation’s purpose , what is want to accomplish in the
larger environment and its goal which are specific , realistic, and motivating. Missions are
described over Visions and Visions demand certain objectives. The main Objectives / Mission
of Maruti Udyog Limited are:-
1. Modernisation of Indian Automobile Industry.
2. Developing cars faster and selling for less.
3. Production of fuel- efficient vehicles to conserve scarce resources.
4. Production of large number of motor vehicles which are necessary for the Economic
Growth.
5. Market penetration, Market developments, similar product development and
diversification.
6. Parter relation management, value chain, value delivery networks.
Core Values :-
 Customer Obsession
 Fast, Flexible and First Mover
 Innovation and Creativity
 Networking and Partnership
 Openness and Learning

AWARDS

2005

 Number one in JD Power SSI for the second consecutive year

 Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times
 M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study
  Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd
time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in
the premium compact segment
 WagonR and Esteem top their segments in the JD Power APEAL study
 TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb
05
 Maruti bagged the "Manufacturer of the year" award from Autocar- CNBC ( 2nd time in a row)-
Feb 05
 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti
among top five most respected companies in India-Oct 04
 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04

2004
 Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales Satisfaction No.1 in Product
Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R)
 No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)
 Business World ranked us among the country's five most respected companies
 Business World ranked us the country's most respected automobile company
 Voted Manufacturer of the year by CNBC
 Voted one of India's Greenest Companies by Business Today-AC
 Nielson ORG-MARG

2003
 Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most
Trusted Brand survey 2003"
 J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem
 Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003.
 MUL tops in J D Power CSI (2001) for 4th time in a row

2001
 MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first

2000
 Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the
world

1999
 MSM launched as model workshop in India; achieves highest CSI rating.
 Central Board of Excise & Customs awards Maruti with "SammanPatra", for contribution to
exchequer and being an ideal tax assessee

1998
 CII's Business Excellence Award
1996
 Maruti wins INSSAN award for "Excellence in Suggestion Scheme"
 Awarded the Star Trading House status by Ministry of Commerce

1994-95
 Engineering Exports Promotion Council's award for export performance

1994
 Best Canteen award among Haryana Industries as part of employee welfare

1992-93
 Engineering Exports Promotion Council's award for export performance
 ORGANISATION STRUCTURE

Maruti Udyog Limited has a flat organisation structure with a maximum of three levels. The Organisation
Structure of Maruti Udyog Limited is follows:-
THE PRODUCTION PROCESS AT MARUTI
Meaning of recruitment

It is a process of searching the potential candidate and offers him or her the job. It is positive
in nature in the Indian context. Process of identifying and hiring best qualified candidate for a
job vacancy in a most timely and cost effective manner.

Meaning of Selection

It is the process of searching the potential candidate. It is negative in nature in the Indian
context but positive in U.S context.

Steps involved in the Selection Process

Selection process consists a series of steps and at each stage facts may come into light that
may lead to rejection of the application of the applicants. It is a series of successive hurdles
or barriers which an applicant must have to cross.

A) Preliminary Interview (Screening Applications) :- Initial screening is done to weedout

totally undesirable or unqualified candidate at the outset. It is essentially a sortingprocess in
which prospective candidate are given necessary information about thenature of the job and the
organisation at the same time, the necessary information isalso elicited from the candidate about
their education, skills, experience, salaryexpected and the like . It helps to determine whether it is
worthwhile for a candidate to fill up the application form.

B) Application Form :- Application form is a traditional and widely used device for collecting
information about the candidate. It should provide all the information
relevant to selection, where refeErence for caste, religion, birth place, may be avoided as it may
be regarded an evidence of description.

C) Selection Test :- Psychological test are being increasingly used in employee selection where a
test may evolve some aspects of an individual’s attitude , behaviour and performance. Tests are
useful when the number of applicants is large as at the best it reveals that the candidate who
scores above the predetermined cutoff points are likely to be more successful than those scoring
below the cut off points.

D) Employee Interview:- Interview is an essential element of selection and no selection

procedure is complete without one or more personal interview, where the information collected
through application letter or application forms and test can be crossed checked in the interview.

E) Medical Examination :- Applicants who have crossed the above stage are sent for the
physical medical examination either to the company’s physician or to a medical officer approved
for the purpose . Such examination serves the following purpose :-

1) It determines whether the candidate is physically fit to perform the job where
those who are physically unfit are rejected.
2) It prevents the employement of people suffering from contagious diseases.
3) It identifies candidate who are are otherwise suitable but requires specific job due
to physical handicaps and allergies.

F) Reference Checks :- The applicants are asked to mention in his application form, the names
and address of two or more persons who knows him very well. These may be their previous
employer , heads of educational institution or public figures. These people are requested to give
their opinion about the candidate without incurring any liabilities.
G) Final Approval :-In most of the Organisations, selection process is carried out by the Human
resource department, where the decision of the departments are recommendatory. The candidate
shortlisted by the department are finally approved by the executive of the concerned department
or the unit.

H) Employment :- Employment is offered in the form of an appointment letter mentioning the

post, the rank, the salary, grade, the date by which the candidate should join and other terms and
condition in briefs.

I) Induction :-The process of receiving employee when they begin work introducing thm to the
company and to their colleagues and informing them of the activities, customes and traditions of
the company is called “ induction”.

J) Follow ups :- All selection should be validated by follow ups, it is a stage where employee is
asked how he or she feels about progress to the date and the worker’s immediate supervisor is
asked for comments which is compared with the notes taken at the time of selection.
 Training and Devlopment Programs of Maruti Suzuki

TRAINING & DEVELOPMENT

Annual Training Plan - All Levels

Training customised to meet Organisational Objectives
Topics selected based on Vision, Values & Departmental Feedback of Companywide
Managers
Competency Mapping to identify Individual Training Needs
Technical Training on latest Technologies abroad at SMC, Japan
STRONG FOCUS ON TRAINING INITIATIVES
- Build a Learning Organisation
- Continuous Value Additions to Professional Skills
- Customised Training
- Training to the personnel of Business Partners

Overseas training

Training held in co-ordination with SMC, Japan and AOTS (Assoc. for Overseas Tech.
Scholarship)(covered 1600 employees under the various schemes)
6 months SMC Training for Technicians - OJT in SMC, Japan (2 batches/yr of 50
each)
9 months Javada Training for Press, Tool & Die Specialists - Design & Maintenance
AOTS Managerial Training (4-10weeks) for Manager & above - Managerial Best
Practices
AOTS Technical Training (3.5 to 6 months) for Supervisors & above - Technological
Knowhow
R & D Training (2 yrs.) - Research on new Technologies
 APPRAISAL & REWARD

Appraisal

New Appraisal System based on KRAs & Targets

Review of Targets at regular Intervals
People Development an important KRA

Reward

Promotions based on Performance

Productivity & Profit-linked Incentive Schemes
Training including Long-term SMC Japan Trg.
Highest paid workforce in the Industry, if not the Country

LEADERSHIP

Vision, Value & Team Building Workshops for Top Management

CFT (Cross Functional Teams) of Managers for Major Thrust Areas
Managers sent to Joint Ventures to upgrade their practices to MUL standards
 INTERNATIONAL BUSINESS

In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its first
export in 1986. Europe is the largest destination of Maruti’s exports and coincidentally after the first
commercial shipment of 480 units to Hungary in 1987, the 300,00 mark was crossed by the shipment of
571 units to the same country. The top ten destinations of the cumulative exports have been Netherlands,
Italy, Germany, Chile, U.K., Hungary, Nepal, Greece, France and Poland in that order.

The Alto, which meets the Euro-3 norms, has been very popular in Europe where a landmark 200,000
vehicle were exported till March 2003. Even in the highly developed and competitive markets of
Netherlands, UK, Germany, France and Italy Maruti vehicles have made a mark. Though the main
market for the Maruti vehicles is Europe, where it is selling over 70% of its exported quantity, it is
exporting in over 70 countries.

Maruti has entered some unconventional markets like Angola, Benin, Djibouti, Ethiopia,
Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East region has also
opened up and is showing good potential for growth. Some markets in this region where
Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE.

The markets outside of Europe that have large quantities, in the current year, are Algeria, Saudi Arabia,
Srilanka and Bangladesh. Maruti exported more than 51,000 vehicles in 2008-09 which was 59% higher
than last year. In the financial year 2008-09 Maruti exports contributed to more than 10% of total Maruti
sales.
Graph showing the Continent wise export of Maruti Udyog Limited Since Inception.
Description :-

Asia 12%
Africa 7%
America 9%
Europe 70%
Oceania 2%

Refrence :- Official website of Maruti Suzuki

(www.marutisuzuki.com)
 1.2 History

Around 1970, Sanjay Gandhi, Political advisor and younger son to then Prime minister of
India, Indira Gandhi , envisioned the manufacture of an indigenous , cost – effective , low
maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet passed a
uninamous resolution for the devlopment and production of “people’s car”. Sanjay Gandhi’s
company was christened Maruti Limited. The name of the car was choosen as “Maruti”, after
the name of a hindu deity named Marut.
At that time Hindustan Motor’s Ambassador was the cheif car and the company had came
out with a new enterant , the Premium Padmini which was slowly gaining a part of the market
share dominated by the Ambassador. For the next ten years the Indian car market had
stagnated at a volume of of 30,000 to 40,000 cars for the decade ending 1983.
Sanjay Gandhi was awarded the exclusive contract and licence to design, devlop and
manufacture the “People’s car.This exclusive right of production generated some criticism in
certain quaters, which was directly targeted at Indira Gandhi . Over the next few years the
company was sidelined due to the Bangladesh Liberation war and the emergency.
In the early days under the powerful patronage of Sanjay Gandhi, the company was provided
with free land , tax breaks , and funds. Till the end of 1970’s the company had not started the
production and a prototype test model was met with criticism and skepticism.The company
went into liquidation in 1977. The media perceived it to be another area of growing
corruption. Unfortunately Maruti started to fly only after the death of Sanjay Gandhi, when
Suzuki joined the Govt. Of India as a joint venture parteners with 50% share.
After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be
allowed to die. Maruti entered into collaboration with Suzuki Motors . The collaboration
heralded a resolution in the Indian car industry by the production of “Maruti 800”.
The car went into sale on December 14,1983. It created record by taking 13 months to go
from design to rolling out car from a production line. By the year 1994 the company had sold
upto 1,96,820 cars, mostly by selling its cheif product the “Maruti 800”. By March 1994, it
produced one million vehicle , becoming the first Indian company to cross this milestone. It
reaches the 2 million mark in October 1997, and rolled out its 4th million vehicle an ALTO
(LX) on April 19, 2003.
Maruti Udyog Ltd. is the premium car company in India. Maruti Udyog Limited (MUL) was
established in February 1981 through an act of parliament. The Company entered into
collaboration with Suzuki Motors of Japan to manufacture cars.The main objectives behind
formation of Maruti Udyog Limited was to meet the growing demand of a personal mode of
transport caused by the lack of an efficient Public Transport System.
Today Maruti Udyog Limited is garneshing share of automobile market in India. It has
completely revolutionised the Indian car market and has brought out numerous model to cater
to every section of society. These ranges from Economy cars to Luxury cars to Super SUV’s.
 Chapter :- 2
Research Objectives and Methodology
2.1 Meaning of Research

Redman and Mory define research as a “systemized effort to gain new knowledge.” Some people
consider research as a movement, a movement from the known to the unknown. Research is an academic
activity and as such the term should be used in a technical sense. According to Clifford Woody, research
comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing
the conclusions to determine whether they fit the formulating hypothesis.

2.2 Objective s of Research

The purpose of research is to discover answers to questions through the application of

scientific procedures.The main aim of research is to find out the truth which is hidden and which has not
been discovered as yet. Though each research study has it’s own specific purpose.

The main objectives of this research was to :-

1. To study about Maruti Suzuki i.e. when it was established , why it was established and by whom it was
established, financial structure, Organisational structure etc.

2. To study about the marketing mix and the strategies adopted by Maruti Suzuki in
order to cater the needs of the people and also to face tough competition in the market
since after the Globalisation of the Indian economy many competitors have grown and
tries to undermine the monopoly created by Maruti Suzuki.

3. To study the strategies adopted by Maruti Suzuki due to which they are able to
dominate the Indian Automobile Sector since last three decades.
 2.3 Significance of Research

“All process is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry and inquiry leads to invention.” Is a famous Hudson Maxim in context of which thesignificance
of research can well be understood. Increased amounts of research make progress possible. Research
inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking
and organization.
The role of research in several fields of applied economics, whether related to business or to the economy
as a whole, has greatly increased in modern times. The increasing complex nature of business and
government has focused attention on the use of research in solving operational problems. Research, as an
aid to economic policy, has gained added importance, both for government and business

2.4 Re search Methodology

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the various steps
that are generally adopted by a researcher in studying his research problem along with the logic behind
them. It is necessary for the researcher to know not only the research methods or techniques but also the
methodology.

2.5 Data Collection Source

Information for this project was collected primarly through secondary sources.The data
collected from the secondary sources are called as Secondary data.
Secondary Data:Any data, which have been gathered earlier for some other purpose, are secondary data
in the hands of researcher. Those data collected first hand, either by the researcher or by someone else,
especially for the purpose of the study is known as primary data. The data collected for this project has
been taken from the secondary source.

Sources of secondary data are :-

 Internet
 Magazine
 Publications
 Newspapers
 Brouchers
 Chapter: - 3
Data Processing, Analysis &
Interpretation
 Marketing

It is the process of directing of directing the flow of goods and services from the producers or
the manufacturers to the customers or consumers. It is accountable for planning, organising,
directing, coordinating, motivating, and controlling the market activities.
According to American Marketing Association, “Marketing is the performance of the
business activity that directs the flow of goods and services through producers to consumers
to users”.
According to Cundiff and Still, “Marketing is the business process by which the products are
matched with the market and through transfer of ownership are affected”. Matching the
products with the market means determining the needs and requirements of potential
customer and supplying them the product which meets their requirements.
According to Philip Kotler, “ Marketing is the social and managerial process by which
individuals and groups obtain what they need and want through creating, offering, and
exchanging product of value with others”.
According to William J. Stanton, “Marketing is a total system of interacting business
activities designed to plan, price, promote, and distribute, wants satisfying products to target
markets to achieve Organisational objectives”.
In general we can say that Marketing includes all those activities carried on to transfer those
goods from the manufactures or the producers to the consumers that can satisfy the needs and
the requirements of the consumers.

BRAND

Around 1970, Sanjay Gandhi the political advisor and younger son to then Prime minister of India, Indira
Gandhi, envisioned the manufacture of an Indigenous, cost effective, low maintenance and compact car
for the Indian middle class. Indira Gandhi’s cabinet unanimously passed a resolution for the development
and production of “people’s car”. Sanjay Gandhi’s company was christened Maruti Limited. The name
was chosen as Maruti after a Hindu deity named “Maruti”.
Unfortunately Sanjay Gandhi died without completing his project. After the death of Sanjay Gandhi,
Indira Gandhi decided that the project should not be allowed to die. Maruti entered into collaboration
with the Suzuki motors of Japan. The collaboration heralded a resolution in the Indian car industry by
producing Maruti 800. The car went on sale on December 14,1983.

PRODUCT

Product mix involves planning, developing, and producing the right types of products and services to be
marketed by the firm. It deals with the product range, durability and other qualities. Apart from
producing right products, emphasis should also be laid on their branding, packaging, colour and other
features. In short product planning and development involves decision about : i) quality of the product, ii)
size of the product, iii) design of the product, iv) volume of the production, v) packaging, vi) warranties
and after sale service, vii) product testing, viii) product range, etc.
Products Offered by Maruti Suzuki

Maruti Suzuki comes with a large number of products i.e cars ranging from economy cars to luxury cars
to super SUV’s. The economy cars includes :-

A) Maruti 800
B) Alto
C) Zen Estilo
D) Wagon R
E) A - Star
F) Ritz
G) Swift
H) Swift Dzire

The Utility Cars of Maruti Suzuki includes :-

A) Maruti Omni (Van)

B) Maruti Eeco
C) Maruti Gypsy
D) Grand Vitara

The Luxury Cars of Maruti Suzuki includes :-

A) Maruti Esteem
B) Maruti SX4
 PRICES OF MARUTI PRODUCTS

Car market leader Maruti Udyog Limited has announced a marginal increase in price of
certain models. .The price increase is due to rise in input costs and freight costs, which
increased following the rise in oil prices. In this phase, the company has decided to pass on only a part of
the increase in costs to the customers. There is no change in the prices of Swift, Zen, and WagonR
(Petrol).
 In Price case

They provide a list of different types of models of cars

They also gives a discount in the range of 20 % to 25 %.

PLACE

The Place of Maruti cars is in the whole world. Maruti Udyog Limited decides its distribution channel for
selling cars like some time or level or sometimes two levels marketing channels.They decide area in
which they deal customers. They show the permanent location for selling the cars. They provides many
useful inventory they define the transport facility of the company to the market and market to the
customers. Many showrooms of MUL are there in our India.

PROMOTION

Main Promotion of Maruti Suzuki cars is done by the advertising. The advertising is mainly done in the
form of different Television channels , different newspapers, holdings etc. Now a days the main
promotion is done by the brand Ambassador such as film stars, celebrities, sportsmen etc. and in this case
they decide their actual and equired sales force for selling their cars. They also maintain customer
relation and they do direct marketing.
 SEGMENTATION

Meaning of segmentation :-

Market segmentation is the process of dividing a potential market into distinct sub- markets of consumers
with common needs and characterstics. Market segmentation is the starting steps in applying the
marketing strategies. Once the segmentation takes place , the marketers targets the identified customer
groups with proper marketing- mix so as to position the products/ brands/ company as perceived by the
target customer.

Objectives of Segmentation :-

The main objective of segmentation is to provide those products to the customer they can :-

1. Satisfy their basic needs

2. Solve their problem
3. Make themselves feel good

Segmentation of Market by Maruti Suzuki:-

Maruti Udyog Limited was set up to manufacture low price cars that can be afforded by the nIndians but
after 1990 that means after the globalisation ( i.e opening of Indian economy for rest of the world) many
competitors started in enter the Indian market .
Further with the develoment of the Indian economy the income of the peoples of India also increased and
people started to afford luxury cars also. They have also catogorised their cars into different segments
depending upon the choices of different peoples depending upon their income and other behaviours and
these segments are :-

Mini hatch back segment or A1 segment :-

Maruti 800

Compact hatchback segment or A2 segment :-

Maruti Alto
Zen Estilo
Wagon R
A – Star
Swift

Mid size segment or A3 segment :-

Maruti Esteem
SX4

Utility Vehicle or MUV :-

Maruti Eeco
Maruti Gypsy
Grand Vitara

Market Positioning

Meaning :-

Market positioning means placing the potential product in the market that can satisfy the
needs and requirements of the target customers.

Positioning of products by Maruti :-

Management of Maruti’s always tries that their products should be available at the authorized outlets in
every city of India. In case of any new product they tries to make it available at every outlets in
metropolitian cities and by getting the response of customers they increases the production and extends
the availability in urban , semi urban and to the rular areas also.

Other Strategies adopted by Maruti Suzuki

After Sale service :-

As on date there are 342 Maruti dealer workshops and 1,545 Maruti Authorised Service
Stations, or MASSs, covering 898 cities in India. In addition, 24-hour mobile service is
offered in 38 cities under the brand “Maruti On-road Service”. They intend to extend this
service to an additional 25 cities over the next three years. As a benchmark for dealers with respect to
service quality and infrastructure facilities, they have launched service stations under the brand “Maruti
Service Masters, or MSMs, in three locations in India. They haveservice stations on 30 highways in India
under the brand “Express Service Stations”.To promote sales of their spare parts and the availability of
high quality, reliable spare parts for their products, they sell spares under the brand name “Maruti
Genuine Parts”, or MGP. These are distributed through their dealer network and through authorised
sellers of their spare parts, to whom they refer as stockists.
Many of their MASSs are at remote locations where they do not have dealers. In order to increase the
penetration, in terms of sales volumes, of their products in these remote areas, they are exploring
opportunities to integrate some of the MASSs into the sales process in order to increase sales of their cars
and related products and services such as spares and accessories, insurance and financing.

Genuine Accessories

They have also entered the business of marketing car accessories under the brand name “Maruti Genuine
Accessories”, or MGA, through their dealership network. They seek to provide customers with the
opportunity to customize their vehicles with accessories such as music systems, security systems, car-
care products and utility products.

Warranty and Extended Warranty Program

They offer a two-year warranty on all their vehicles at the time of sale. Their dealers are
required to address any claim made by a customer, in accordance with practices and
procedures prescribed by them, under the provisions of the warranty in force at that time. The dealers
subsequently claim the warranty cost from them. They analyse warranty claims from dealers and either
claim the cost from vendors, in the case of defective components, or bear the cost ourselves, in the case
of manufacturing defects.
They offer an extended paid-warranty program marketed under the brand, “Forever Yours” for the third
and fourth year after purchase. They have entered into arrangements with insurance companies to cover
the costs of warranties offered under this program. The extended warranty program is intended to
maintain the dealer’s contact with the customer and increase the revenue generated from sale of spares,
accessories and automobile-related services. An effort is made during the period of the extended
warranty to encourage the customer to exchange his existing Maruti car for a new Maruti car, or upgrade
to a new Maruti car.
 New business Initiatives

As the largest manufacturer and leader in the small car segment, they continually seek new ways to
utilize their vast car parc, range of products and extensive sales and service network to expand the size of
the passenger car market in India. They have recently launched new initiatives to develop the market for
automobile insurance, automobile finance, leasing and fleet management, and pre-owned cars. They aim
to provide customers with a “one-stop shop” for automobiles and automobile-related products and
services, and build on their wide customer base and extensive sales and service network to make
available to their customers a wide range of Maruti-branded services at different stages of ownership,
which they refer to as the “360 degree customer experience”.

AtithiDevoBhava: One-stop shop

Inspired by the spirit of India. AtithiDevoBhava, in Sanskirit, means “a guest is like God”. It captures the
Indian tradition of honouring guests. It's also the inspiration for the welcome you’ll receive at a Maruti
Suzuki dealership, and the caring relationship they share with those who drive their cars. At Maruti
Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance,
fleet management. services, exchange Maruti Suzuki is set to provide a single window solution for all
your car related needs. That’s why they have Maruti True Value, the best place to buy and sell reliable
used cars . Maruti finance an agglomeration of the biggest finance companies in India brought together
by Maruti Suzukitoensurethat the dream car is within everyone’s reach. Similarly Maruti
Finance brings together some of the biggest names in the car insurance industryto provide insurance
solution to every type of the car consumer.

Maruti Insurance :-

It was launched in 2002. Maruti Suzuki provides vehicles insurance to its customers with the help of
National Insurance Company , Bajaj Allianz , New India Assurance and Royal Sundaram. The service
was set up by the company with the inception of two subsidiaries Maruti Insurance Distributors Pvt. Ltd.
and Maruti Insurance Brokers Pvt. Ltd. The services started as a benefit or value addition to the
customers and was able to ramp up easily. By December 2005 they were to sell more than two Million
Insurance policies since its inception.

Maruti Finance :-

To promote the 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 Country
wide with City Group and GE countrywide respectively to assist its clients in securing loans. Maruti
Suzuki tied up with ABN Amro Bank , HDFC Bank , ICICI Limited , Kotak Mahindra , Standard
Chartered and Sundaram to start this venture including its strategic partnership with SBI in March 2003.
Since March 2003, Maruti had sold over 12,000 vehicles through SBI – Maruti Finance. SBI – Maruti
Finance is currently available in 166 cities across India.

“ Maruti Finance marks with coming together of the biggest players in the car finance
business. They are the benchmark in quality and efficiency. Combined with Maruti
volumes and networked dealership , this will enable Maruti Finance to offer superior
services and competitive rates in the Market place”.

- JagdishKhatter,
Managing Director of Maruti Udyog Limited

Citycorp Maruti Finance Limited is a joint venture between Citicorp Finance India
and Maruti Udyog Limited. Its primary business started by the company is “hire –purchase” financing of
Maruti Suzuki Vehicles . Citi Finance India limited is a wholly owned subsidiary of City Bank Overseas
Investment Corporation Delaware which inturn is a 100% wholly owned subsidiary of City Bank N.A.
City Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE
Capital , HDFC and Maruti Suzuki together came in 1995 to form Maruti Countrywide. Maruti Claims
that its finance program offers most competitive interest rates to its customers which are lower by 0.25%
to 0.5% from the market rates.

Maruti True Value :-

Maruti True service offered by Maruti Suzuki to its customers. It is a market place for the
used Maruti Suzuki Vehicles. One can buy ,sell or exchange used Maruti Suzuki Vehicles with the help
of this service in India. As of 2009 there are 315 Maruti True Value Outlets.

Maruti Driving school :-

As a part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving
school in Delhi. Later the service extended to other cities of India as well. These schools are modelled on
international standards, where the learners go through the classroom session and practical sessions. Many
standards facilities like road behaviour and attitude are taught in these schools. Before driving actual
vehicles participants are trained on stimulators.
 Customer Satisfaction By Maruti Suzuki

Now a day’s Customer satisfaction is the main aim or objectives of all the business
organisations. With the Globalisation and Liberalisation (i.e. opening of Indian market ) the competition
has increased to a great extent. All the Indian companies or the business organisations have to match their
products with the International standard level in order to remain in the market. A marketer can remain in
the mind of the customers only if he is able to satisfy the needs and requirements of the potential
customers (i.e. when customers get value for their money). In such situations Maruti Suzuki took an
initiative to satisfy its customer in the following ways.

Customer Service:-

The CRM Program allows Maruti Suzuki to acquire customers, service the customers,
increase the value of customers to the company, and retain good customers and to determine which
customer can be retained or given a higher level of service. A good CRM program can improve customer
service in several ways. Provides Product Information, product use, information and technical assistance
on websites that are accessible 24 hours a day and 7 days a week Identifies how each individual customer
defines quality and then designs service strategies for each customer based on these individual
requirements and expectations. Provides a fast mechanism for managing and scheduling follow up sales
call to assess post purchase cognitive dissonance, repurchase, probabilities repurchase times and
repurchase times.
Provides a mechanism to track all points of contact between customer and the company
and do it in an integrated way so that all sources and the types of contact are included
and all the user of the system see the same view of the customer (reduces confusion).m
It also helps to identify problems quickly before they occur.
Provides a user friendly mechanism for registering customer complaints (complaints
that are not registering with the company cannot be resolved and are a major source of
customer dissatisfaction).
Provides a fast mechanism for handling problems and complaints (complaints that are
resolved quickly increased customer satisfaction.
Provides a fast mechanism for correcting services deficiencies (correcting the problem
before other customer experience the same dissatisfaction).
Uses internet cookies to track customer interest and personalize product offerings
accordingly. Use internet to engage in collaborative customization or real time
customization.
Provides a fast mechanism for managing, scheduling, maintenance, repair and
ongoing support (improve efficiency and effectiveness).
The CRM can be integrated into other cross functional systems and thereby provides
accounting and production information to customers when they want it.

Improving Customer Relationships :-

CRM programs are also able to improve customer relationship. Proponents say this is so because:-
CRM Technology can track customer interests, needs and buying habits as they
progress their life cycles and tailors the marketing efforts accordingly. This way
customers get exactly want they want as they change.
The technology can track customer products use as the product progresses through its
life cycle and tailors the service accordingly.
These way Customers get what they need as the product ages.
In Industrial markets, the technology can be used to micro- segment the buying centre
 and helps co – ordinate the conflicting and changing purchase criteria of its members.
When any of the technology driven improvement in customer service (mentioned
above) contribute to long term satisfaction they can ensure repeat purchases, improve
customer relationship, increase customer loyalty, decreases customer turnover,
decreases marketing costs (associated with customer acquisition and customer
training), increases sales revenue and thereby increases profit margins.
Repeat purchase however comes from customer satisfaction which inturn comes from
deeper understandings of each customer, their individual business challenges rather
than a “one size fits all” approach.

CRM software enables sales people to achieve this one on one approach to selling and
can automate some elements of it via tailorable marketing communication. However
all of these elements are facilitated by or for humans to achieve. CRM is therefore a
companywide attitude as much as software solution.
 SWOT ANALYSIS

SWOT Analysis is the analysis of a company. SWOT analysis stands for Strengths ,
Weakness, Opportunities and threats. With the help of this analysis we can get the
information about a company’s strengths and weaknesses and also about the opportunities and threats
that a company is going to face or facing. After getting the knowledge about the weakpoints and threats
from the external environment the management tries to overcome the weaknesses and the threats.

SWOT analysis of Maruti Suzuki are as follows :-

STRENGTHS :-
1. Brand Image
2. Reliable and cheap
3. Established brand in the Indian marke.
4. Great service and nationwide penetration
5. Experience in the Indian market
6. Very old player in the Indian market
7. First major player
8. Established distribution and after sales network

WEAKNESSES :-

1. Diseconomies of scale
2. No Online presence
3. Not diversified
OPPORTUNITIES :-

1. Acquisition
2. Innovation
3. Online
4. Product and service expansion
5. Takeovers

THREATS :-

1. Competition
2. Cheaper technology
3. External changes ( Government policies, taxes, etc)
4. Lower cost competitors and cheap imports
5. Price war
6.Product substitution