Study of Marketing Mix of Maruti Suzuki - BBA Marketing Summer Training Project Report PDF

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RESEARCH PROJECT ON

“A STUDY OF MARKETING MIX OF MARUTI SUZUKI”

In the partial fulfillment of requirement for the award of Degree of Bachelor of Business Administration (BBA)

B.B.A- 6th Sem.

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ACKNOWLEGEMENT

“Success is not a description, but a journey.” While I reach towards the end of this journey, I realized I may not have come this far without the guidance, help and support of the people who acted as guides, friends and torch bearers along the way. I take this opportunity to thank Prof. Gurlal Singh without their cooperation I would not have been able to complete this project. I express my deepest and most sincere thanks to my organization guide, Mr.Harjit Singh (Manager) from who I had the opportunity to learn a lot, I would like to thank him for

giving me valuable suggestion and guidance with which, my project would have been complete.

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INDEX

Student Declaration

2

Acknowledgement

3

Chapter 1 About the Company

5-33

Chapter 2 Research Methodology

34-37

Chapter 3 Marketing Strategies

38-80

Chapter 4 Findings and analysis

81-85

Chapter 5 Conclusion

86--87

Chapter 6 Recommendations

88-89

Chapter 6 Bibliography

90

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Chapter: - 1 ABOUT THE COMPANY

5

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 Its only competitor was Hindustan Motor’s Ambassador and the Premier Padmini were both around 25 years out of date at that point.Through 2004 , Maruti Suzuki had produced over 5 Million vehicles.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.

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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.

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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. 9

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.

10

1.3 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.

1.3.1 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.

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1.3.2 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. 2. 3. 4.

Modernisation of Indian Automobile Industry. Developing cars faster and selling for less. Production of fuel- efficient vehicles to conserve scarce resources. 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 12

  

Innovation and Creativity Networking and Partnership Openness and Learning

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1.3.3 Company Board Of Directors

Mr.Shinzo Nakanishi

Managing Director (M.D) and Chief Executive Officer (C.E.O)

Mr. R.C. Bhargava

Chairman

Mr.Maninder Singh Banga

Director

Mr.AmalGanguli

Director

Mr.D.S.Brar

Director

Mr. Keiichi Asai

Director

Mr. Osamu Suzuki

Director

Mr.ShujiOishi

Director

Ms.PallaviShroff

Director

Mr. Kenichi Ayukawa

Director

Mr. Tsuneo Ohashi

Director and Management Executive Officer

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1.3.4 MILESTONES 2005

2004



The fiftieth lakh car rolls out in April, 2005



Growth in overall sales by 15.8%



New (non A/C) variant of Alto



Alto becomes India's new best-selling car



LPG variant of 'Omni Cargo'



Versa 5-seater, a new variant



Baleno LXi, a new variant



Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago

2003



New Suzuki Grand Vitara XL-7



Redesigned and all-new Zen



New upgraded WagonR



Enters into partnership with State Bank of India



Production of 4 millionth vehicles. Listed on BSE and NSE after a public issue oversubscribed 10 times

2002



WagonR Pride



Esteem Diesel. All other variants upgraded



Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited



Alto Spin LXi, with electronic power steering



Special edition of Maruti 800, India’s first colour-coordinated car



Maruti True value in Mumbai



Maruti Finance in Mumbai with 10 finance companies

15



Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 percent

2001



Zen LXi



Maruti True Value launched in Bangalore and Delhi



Maruti Versa, India’s first luxury MPV



Alto Spin LXi, with electronic power steering



Alto VXi



Customer information centers launched in Hyderabad, Bangalore and Chennai

2000



Launch of versa



First car company in India to launch a Call Center



New Alto



Altura, a luxury estate car



IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits

1999



Maruti 800 EX ( 796cc, hatchback car)



Zen LX (993cc, hatchback car)



Zen VXi (993cc, hatchback car with power steering)



Omni XL ( 796cc, MUV, high roof)



Baleno (1600cc, 3 Box Car)



Wagon R



Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives

1998



Maruti launches website as part of CRM initiatives



Zen D (1527 cc diesel, hatchback car)

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1997



Zen VX & Zen VX Automatic



New (Omni & Omni E) (796cc, MUV)



Launch of website as part of CRM initiatives



1998 Esteem (1299cc, 3 box car) LX, VX and AX



New Maruti 800 (796cc,hatchback Car) Standard and Deluxe



Produced the 2 millionth vehicle since the commencement of production

1996

1995



Gypsy (E) (970cc, 4WD 8 seater)



Omni (E) (796cc, MUV, 8 seater)



Gypsy King (1298cc, 4WD, off road vehicle)



Zen Automatic (993cc, hatchback car)



Esteem 1.3L (1298 cc, 3 box Car)AX



Launch of 24-hour emergency on-road vehicle service



Esteem 1.3L (1298 cc, 3 box car)VX



With the launch of second plant, installed capacity reached 200,000 units

1994



Esteem1.3L (1298cc, 3 box car)LX



Produced the 1 millionth vehicle since the commencement of production

1993



Zen (993cc, hatchback Car), which was later exported in Europe and elsewhere as the Alto

1992



SMC increases its stake in Maruti to 50 percent

1991



Reaches cumulative indigenisation of 65 percent for all vehicles produced

1990



Maruti 1000(970cc, 3 box), India’s first contemporary sedan

1988



Installed capacity increased to 100,000 units

17

1987



Exported first lot of 500 cars to Hungary

1986



Maruti 800 ( New Model-796cc, hatchback Car)



Produced 100,000 vehicles (cumulative production)

1985



Launch of Maruti Gypsy (970cc, 4WD off-road vehicle)
...