PROJECT REPORT ON CUSTOMER RETENTION WITH REFERENCE TO MARUTI SUZUKI PRODUCTS
Submitted in partial fulfillment of the requirement of Master of Business Administration Sikkim Manipal University
UNDER THE GUIDANCE OF: MS. GURPREET KAUR (FACULTY OF STUDY CENTRE)
SUBMITTED BY: VINIT SHARMA ROLL NO. 520928921 STUDY CENTER CODE: 0963
SESSION: 2009-2011
SIKKIM MANIPAL UNIVERSITY DIRECTORATE OF DISTANCE EDUCATION, SYNDICATE HOUSE, MANIPAL – 576104
ANNEXURE- A
Webuniv Rajouri Garden, New Delhi
CODE: 0963 CUSTOMER RETENTION WITH REFERENCE TO MARUTI SUZUKI PRODUCTS BY VINIT SHARMA A project report submitted in partial fulfillment of the requirement For Master of Business Administration of Sikkim Manipal University, INDIA
SIKKIM MANIPAL UNIVERSITY DIRECTORATE OF DISTANCE EDUCATION, MANIPAL - 576104
ANNEXURE- B
STUDENT DECLARATION
I here by declare that the project report entitled “CUSTOMER
RETENTION WITH REFERENCE TO MARUTI SUZUKI PRODUCTS .” Submitted in partial fulfillment of the requirement for the degree of Master of Business Administration to Sikkim–Manipal University, India, is my original work and not Submitted for the award of any other degree, diploma, fellowship, or any other similar Title or prizes.
Place :
VINIT SHARMA
Date :
ENROLLMENT NO. 520928921
ANNEXURE- C
EXAMINER’S CERTIFICATION
The project report of “VINIT SHARMA” project title “CUSTOMER
RETENTION WITH REFERENCE TO MARUTI SUZUKI PRODUCTS.” Is approved and is acceptable in quality and form
Internal Examiner
External Examiner
(Name, Qualification and Designation)
(Name, Qualification)
ANNEXURE- D
UNIVERSITY STUDY CENTRE CERTIFICATE
This is to certify that the project report entitled “CUSTOMER
RETENTION WITH REFERENCE TO MARUTI SUZUKI PRODUCTS.” Submitted in partial fulfillment of the requirement for the degree of Master of Business Administration of Sikkim Manipal University Directorate of Distance Education Mr. VINIT SHARMA, has worked under my supervision and guidance and that no part of this report has been submitted for the award of any other degree, Diploma, Fellowship or other similar titles or prizes and that the work has not been Published in any journal or Magazine.
ENROLLMENT NO. 520928921
Certified
Date: Place:
Ms. GURPREET KAUR Faculty of Webuniv Centre
ANNEXURE- E ACKNOWLEDGEMENT
I have prepared this study paper for the “CUSTOMER
RETENTION WITH REFERENCE TO MARUTI SUZUKI PRODUCTS”. Quite frankly, I have derived the contents and approach of this study paper through discussions with colleagues who are also the students of this course as well as with the help of various Books, Magazines and Newspapers etc. I would like to give my sincere thanks to a host of friends and the teachers who, through their guidance, enthusiasm and counseling helped me enormously. As I think there will be always need of improvement. Apart from this, I hope this study paper would stimulate the need of thinking and discussion on the topics like this one.
VINIT SHARMA ROLL NO. 520928921 STUDY CENTER CODE: 0963
TABLE OF CONTENTS
CONTENT 1. EXECUTIVE SUMMARY o o o o o
INTRODUCTION OF TOPIC OBJECTIVE OF STUDY FINDINGS SUGGESTIONS CONCLUSIONS
2. INDUSTRY PROFILE o o o
BOOM IN INDIAN AUTOMOBILE INDUSTRY E-BUSINESS OF AUTOMOTIVE INDUSTRY COMPETITIVE FACTORS OF AUTOMOBILE INDUSTRY IN INDIA
3. COMPANY PROFILE o o o o o
HISTORY OF MARUTI SUZUKI LTD AUTHORIZED SERVICE STATION OF MARUTI ABOUT COMPETENT AUTOMOBILES HISTORY OF COMPETENT AUTOMOBILES MANAGEMENT OF COMPETENT AUTOMOBILES LIMITED
4. RESEARCH METHODOLOGY
WHAT IS RESEARCH WHAT IS MARKETING RESEARCH TYPES PROCESS EXPLANATION ON CUSTOMER RETENTION OBJECTIVE OF STUDY
5. DATA ANALYSIS AND INTERPRETATION 6. LIMITATIONS OF THE PROJECT 7. SUGGESTIOS OF THE PROJECT 8. CONCLUSION OF THE PROJECT 9. GLOSARRY 10. BIBLIOGRAPHY
11. ANNEXURE
Executive summary •
Introduction of customer retention
Customer retention is the maintenance of continuous trading relationships with customers over the long term. Customer retention is the mirror image of customer defection or churn. High retention is equivalent to low defection. Customer retention is about keeping the customers organization has spent that money to acquire. And if you’re in an industry where they make multiple purchases over the years, organization entire team should be very focused on retaining those customers. A customer retention strategy aims to keep a high proportion of valuable customers by reducing customer defections (churn), and a customer development strategy aims to increase the value of those retained customers to the company. Just as customer acquisition is focused on particular prospects, retention and development also focus on particular customers. Focus is necessary because not all customers are worth retaining and not all customers have potential for development. We will deal with the issue of retention first, before turning to development.
· Which customers will be targeted for retention? · What customer retention strategies will be used? · How will the customer retention performance be measured?
•
Objective of the study
# To know whether the different variations of price level provided by COMPETENT AUTOMOBILES satisfies consumers.
# To know about code of conduct and which rules and procedures are followed by employees.
# To determine and compare educational development of the project-assisted and nonassisted institutes as perceived by teachers, administrators, and current students. Findings
# Out of the total respondents of 100 customers, 20 of the total customers come to know about the competent automobile ltd delhi(counght place) from Auto fair medium, 25 from Media, 15 from Newspapers, 40 from friends. Most of the customers know about competent automobile ltd from friends and media.
# All the customers surveyed at competent automobile ltd delhi (rama road) are using the after sales service provided by the dealer.
# Competent automobile ltd can achieve 100% success in customer’s satisfaction, if they will motivate their employees with handsome incentives & reward for creating customer delight. Many global automotives giant are practicing this marketing strategy these days. Suggestions
# looking to the result of the factor analysis Competent Automobiles Ltd. has to make the future strategy by considering the 3 important representative factors like as RELIABILITY, ATTRACTIVENESS, and CUSTOMER HANDLING.
# They must keep in their mind that the “customer is king in the market” and his full satisfaction in respect of all the parameters are very essential other wise goal cannot be achieved.
# Free samples should be distributed among the prospects. Sales promotion tools like gifts, contests and coupons must be given to customers.
•
Conclusion
# This Competent also handles the Customer in a very politely way after the sale of the vehicle and is ready to give any time service.
# It had Company Authorized Service Shop where there are well trained mechanics who quickly solves the problem of the vehicle.
# All the paper work done in purchasing the car and all the different policies are completed by this dealer in a very short period of time which saves the time of the customer.
Industry profile Automobile Industry History: In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in the U.S. A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first. To invent more applicable automobiles, making use of non-rechargeable electric batteries in 1842. Development of roads made traveling comfortable and as a result, the short ranged, electric battery driven automobiles were no more the best option for traveling over longer distances. The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of cars. This lead to the development of the industry and it first begun in the assembly lines of his car factory. The several methods adopted by Ford, made the new invention (that is, the car) popular amongst the rich as well as the masses. According the History of Automobile Industry US, dominated the automobile markets around the globe with no notable competitors. However, after the end of the Second World War in 1945, the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign automobile companies, especially those of Japan and Germany. The current trends of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets, whereas the Automobile Industry in the developing nations, such as, India and Brazil, have been consistently registering higher growth rates every passing year for their flourishing domestic automobile markets.
The automotive industry designs, develops, manufactures, markets, and sells the world's motor vehicles. In 2008, more than 70 million motor vehicles, including cars and commercial vehicles were produced worldwide. In 2007, a total of 79.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.[2] The markets in North America and Japan were stagnant, while those in South America and other parts of Asia grew strongly. Of the major markets, China, Russia, Brazil and India saw the most rapid growth. About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China.[3] In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars.[4][5][6] Thesustainable transport movement focuses on solutions to these problems. In 2008, with rapidly rising oil prices, industries such as the automotive industry are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. [7] Roughly half of the US's fifty-one light vehicle plants are projected to permanently close in the coming years, with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade.[8] China became both the largest automobile producer and market in the world after experiencing massive growth in 2009.
Introduction to The Indian Automotive Industry
An embryonic automotive industry emerged in India in the 1940s. Following the independence, in 1953, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. Indian automobile industry has grown leaps and bounds since 1898, a time when a car had touched the Indian streets for the first time. At present it holds a promising tenth position in the entire world with being # 2 in two wheelers and # 4 in commercial vehicles. Withstanding a growth rate of 18% per annum and an annual production of more than 2 million units, it may not be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per year. The Automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of Automobile Industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by the Automobile Industry.
The major Car manufacturer are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd ., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd.,Hyundai Motors India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd., to name a few.
The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc.
The heavy motors like buses, trucks, defense vehicles, auto rickshaws and other multiutility vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj, Mahindra and Mahindra, etc. The Commercial Vehicle Segment has been contributing to the automobile market to a great extent. So as in passenger luxury cars now/ Many foreign companies LikeMercedes,Suzuki,chevorlet,Honda,mitsubushi,Toyota,Hyundai etc. have been investing in the Indian Automobile Market in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations.like maruti joined hands with Suzuki in passenger cars, same as Mahindra with Renault, hero joint ventures Honda in two wheeler segment, ashoka with Leyland in commercial vehicle segment. The auto market in India can boast of attractive finance schemes, increasing purchasing power, and launch of the latest products. Investments in the automobile industry by the foreign companies in India help in strengthening the India’s economy. Turnover of Automobile Manufacturer Year
In USD Million
2002-2003
14,880
2003-2004
16,554
2004-2005
20,896
2005-2006
27,011
2006-2007
34,285
Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants. Every other day, we have been hearing about some new launches, some low cost cars – all customized in a manner such that the common man is not left behind. In 2009, the automobile industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis. The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations
globally as well, asking for more investments in the Indian automobile sector by the MNCs.
Boom in Indian automobile industry Today, vehicles are in great demand between all segments of society. With to huge demand of vehicles, automobile industry is the fastest growing industry all over the world. Automobile industries play a vital role in economic development of any country. Every week a new model of car or bike has been launching to accomplish the requirement of buyers. Various automobile manufacturing companies are in the market, which provide a lot of vehicle according to the requirements of different segment of peoples. Automobile companies are offering various products according to users budget. Gone are the days, when one had to wait for their dream vehicles. Today, it is not difficult to buy a dream vehicle because of various financial institutions. Many banks are providing loan and converting your dream into reality. Buyer needs to pay some extra money as interest rate for that finance amount. This amount depends on various factors such as buyer’s credit past, finance amount, loan period and the term and conditions of financial institution. If we consider the Indian automobile industry, there are various companies, which are offering all type of vehicles in the market. Automobile manufacturing companies are offering different cars, two wheelers, three wheelers, commercial vehicles, sport vehicles and other utility vehicles according to the user’s requirement. As we all know, cars have become a need for today’s world. Automobile companies are offering various premium cars to entry-level cars for the customers. There are various car-manufacturing companies in Indian market. Some giants in manufacturing of cars are Audi, Ford, Fiat, Honda, Hyundai, Skoda, Maruti, BMW, Mercedes, Mahindra & Mahindra, Hindustan Motors and General Motors. Some awaited car models, which are about to launch in the year 2008 are Fiesta 1.4 SXi Duratorq, Opel GT, Aveo U-VA, Getz Next Generation, Logan, Rhino Rover, Audi Q7, Montero, Outlander, Grandis, Santa Fe and Roomster. Tata motors also working to produce their low budget car till the July 2008. All the companies are offering various attractive models in different color and designs. In two-wheeler industries, Hero Honda, Bajaj Auto, TVS Motors, Yamaha, Honda, Suzuki and kinetic motors are offering various motorcycles, scooters and scooterettes to the market. One can choose among the various models according to his need and budget.
In the initial years after independence Indian automobile industry was plagued by unfavourable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the 1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking
policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world. Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments. India is on every major global automobile player's radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their manufacturing bases in India. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon.
Some of the major characteristics of Indian automobile sector are: • • • •
Second largest two-wheeler market in the world. Fourth largest commercial vehicle market in the world. 11th largest passenger car market in the world Expected to become the world's third largest automobile market by 2030, behind only China and the US.
E-BUSINESS OF AUTOMOTIVE INDUSTRY The online vehicle market in India has been providing excellent services to online vehicle sellers as well online vehicle buyers. The advantage of online vehicle buying is that one can get an exhaustive list of cars and bikes and even make a purchase without having to leave the comforts of one's house.Many websites likeautoindia.com,ebay.ca.in are their to promote online business of auto industry. Sellers can make their vehicles available instantly through the Internet to millions of buyers at the domestic level. Online vehicle selling sites advertise in dailynewspapers and magazines ensuring buyer as well as seller attentionbenifitting both.Online Vehicle Marketin India provides valuable information on vehicleoverviews, dealers, financing institutions, insurance companies, and alsoproduct comparisons. All information is with regard to the region of theonline vehicle purchaser. Many customer services are offered online. Theonline Indian automobile market is part of the growing automobile industry in India.
The Online Vehicles market in India provides full security to its buyers and sellers. Some of the security measures have been mentioned below:
•
Good online companies do not keep a record of the transactions made Nor are they involved in the transacting process.
• •
No trustee or financial department services offered by the websites. Discouraging the practice of advance payment. Thus, avoiding the Possibility of fraud.
•
Reliable websites like Cartradeindia.com, ebay.ca.in make sure that that their customers are not victims of manipulated electronic paper work.
COMPETITIEVE FACTORS OF AUTOMOBILE INDUSTRY OF INDIA The automotive sector is one of India’s largest and fastest growing manufacturing sectors. It is ranked the 11th largest passenger car producer in the world. In the category of motorcycles and scooters, India is ranked 1st and 2nd respectively. With India increasingly liberalizing its market place, many new joint ventures evolved, resulting in close to 24 global auto manufacturers setting up their shop in India.
Competition in India
As a result, competition in India’s automobile had been heating up in the recent years. Many global players in the automobile have already set up presence in India. Most of them are through tie-ups with dominant local players, while some are done entirely on their own.
In the absence of strong competition in the past, the local car manufacturer Maruti Udyog Ltd (MUL) has virtually dominated the Indian automotive market in the passenger segments since the 1980s. As the automotive manufacturing sector rapidly evolved through the dynamics of open market and deregulation, many new joint ventures (both technical and financial) were formed between local players with leading global manufacturers. In 1982, MUL, then a wholly government-owned company, signed up a collaboration agreement with Suzuki of Japan to establish the volume production of contemporary models. Subsequently, the licensing regime was scrapped in 1993 paving way for 17 new ventures, of which 16 are now manufacturing cars . since then; there has also been an emergence of new competition for higher value segments of the passenger car market. Hence, local players like MUL also began to face competition from new foreign car makers. Ford entered the mid-range market with the Icon model in April 1998, a move which was followed by Honda, Mitsubishi, Hyundai, and Daewoo. Other players, Hyundai and Daewoo, have since improved their share of the passenger car market with new models For the 4-wheelers segment, MUL/Suzuki dominates the automotive landscape holding a 33% share of the passenger car market in 2004/05. In the second place is Tata Motors, a local company, commanding 26% share, while Hyundai Motor ranked third with 15% share and the rest split amongst close to 2 dozen other manufacturers. For the 2-wheelers segment, it remains quite a local dominant game but global players also have obvious presence in the market. Major players in this segment include Bajaj Auto, TVS Suzuki, LML Limited, Hero-Honda Motors, Yamaha Motor India, Kinetic Engineering, Maharashtra Scooters Majestic Auto, Kinetic-Honda Motors, Royal Enfield (India), Scooters (India), Greaves Ltd. Foreign manufacturers also have presence in India through their 100% owned subsidiaries, e.g. Honda Motorcycle, Scooter India Pvt. Ltd. M/s Honda Motor Co., Japan, Yamaha Motor, Japan. The largest player is Hero Honda Motors, accounting for 40% of market share, followed by Bajaj Auto and TVS Motor, which account for 27% and 18% respectively.
Competition in the International Market Besides on the competition observed amongst all global players in the domestic Indian market, India as an automotive manufacturing country is also pitting against other competitors in the international market. In terms of exports of automobile, India is ranked 29th, while China, the other huge automotive factory ranked 17th. For exports of auto parts, India was 26th, while China came in 11th. The top country for exports of automobile and auto parts was Germany.
Market segment
Despite increased competition, Maruti Suzuki, which is now majority owned by Suzuki Motor Corp, remains the market leader in India with a share of nearly 44%. Its strength lies in its wide range of small car models, which form the bulk of the Indian car market. Maruti Suzuki also has the largest dealer network and its annual manufacturing capacity is close to 1 million vehicles. Tata Motors has a wider product range, from SUV’s to the world’s cheapest car, the Nano.
Company profile
Maruti Suzuki India Ltd
Type Public (BSE MARUTI, NSE MARUTI) Founded 1981 Headquarters Gurgaon (Delhi metropolitan area), Haryana, India Key people Jagdish Khattar, CEO
Industry Products Revenue Employees Slogan Website
Shinzo Nakanishi, Managing Director Automotive Cars ▲~$3.1 billion (2007) 3,334 Count on us. http://www.marutisuzuki.com
History of Maruti Suzuki India LTD
Maruti Suzuki India Limited, formerly Maruti Udyog Limited, is engaged in the business of manufacturing, purchase and sale of motor vehicles and spare parts (automobiles). The other activities of the Company include facilitation of pre-owned car sales, fleet management and car financing. The Company has four plants, three located in Palam Gurgaon Road, Gurgaon, Haryana and one located at Manesar Industrial Town, Gurgaon, Haryana. During the fiscal year ended March 31, 2009, the Company produced and sold over seven million cars, and exported more than 500,000 cars. The Company's subsidiaries include Maruti Insurance Business Agency Limited, Maruti Insurance Distribution Services Limited, Maruti Insurance Agency Solutions Limited, Maruti Insurance Agency Network Limited, Maruti Insurance Agency Services Limited and Maruti Insurance Agency Logistics Limited. The Company’s subsidiaries are engaged in the business of selling motor insurance policies to owners of Maruti Suzuki vehicles. Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading fourwheeler automobile manufacturer in South Asia. Suzuki Motor
Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India. On 17 September, 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. The company's headquarters remain in Gurgaon, near Delhi.
Maruti Udhyog Limited is India's largest automobile company. Its main factory is situated in Gurgaon district, Haryana. The company, a joint venture with of Government of India with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry. The first cars rolled out for sale on 14th December 1983, (the Company went into production in a record 13 months), marking the beginning of a revolution in the Indian automobile industry.
We were born as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, our product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is our mission to motorize India. Our parent company, Suzuki Motor Corporation, has been a global leader in mini and compact cars for three decades. Suzuki's technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. The same characteristics make our cars extremely relevant to Indian customers and Indian conditions. Product quality, safety and cost consciousness are embedded into our manufacturing process, which we have inherited from our parent company. Right from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy 'smaller, fewer, lighter, shorter and neater' From the Japanese work culture we imbibed simple practices like an open office, a
common uniform and common canteen for everyone from the Managing Director to the workman, daily morning exercise, and quality circle teams.
On 14th December, 1983, first Maruti 800, India's iconic car rolled-off the assembly line at company's Gurgaon plant. Late Mrs. Indira Gandhi, the then Prime Minister of India, handed over keys for this car to the first Maruti customer. Since then, Maruti Suzuki has produced and sold around 75 lakh (7.5 million) cars to address the needs of customers across segments.Maruti's current efforts mirror the government's vision to put India in the international map for producing compact small cars. All over the world, Suzuki is acknowledged for its know-how in producing small cars. The government's renewed focus on promoting small cars, offers a major opportunity for Maruti Suzuki.
The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the decade ending 1983. In 1993, this figure reached a number of 1, 96,820. Maruti's figures are a different story altogether. Maruti reached a total production of one million motorcars in March 1994, becoming the first Indian company to cross this milestone and crossed the two million mark in 1997.For the year ended 1997-98, Maruti posted a turnover of US$ 2.1 billion and a Profit before Tax of US$ 244 million. During the year, Maruti produced over 350,000 vehicles, out of which 26,000 were exported. Through the years Maruti has provided world-class Japanese technology, suitably adapted to Indian conditions and Indian car users.
The Maruti models on road now are
biles
Maruti Omni
India's Corps of Military Police personnel patrolling the Wagah border crossing in thePunjab in a Maruti Gypsy.
Maruti Alto
Maruti Suzuki Swift
Maruti Suzuki Zen Estilo
Suzuki SX4
7th Generation Suzuki Alto is sold as Maruti Suzuki A-Star in India.
Maruti Suzuki Swift DZire
Suzuki Splash is sold as Maruti Suzuki Ritz in India.
Manufactured locally
1.
800 (Launched 1983)
2.
Omni (Launched 1984)
3.
Gypsy (Launched 1985)
4.
Zen (Launched 1990)
5.
WagonR (Launched 2002)
6.
Alto (Launched 2000)
7.
Swift (Launched 2005)
8.
Estilo (Launched 2009)
9.
SX4 (Launched 2007)
10.
Swift DZire (Launched 2008)
11.
A-star (Launched 2008)
12.
Ritz (Launched 2009)
13.
Eeco (Launched 2010)
14.
Alto K10(Launched
2010)
15.
Imported
Suzuki Grand Vitara
1.
Grand Vitara (Launched 2007)
2.
Kizashi (Launched
2011)
Sales and service network As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in allstates 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.[15] 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.[16] Maruti Insurance Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited[17] 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.[18]
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.[19] 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[20] Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India. Maruti 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 Maruti True Value outlets. Exports Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it does not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen to encourage. Every political party expected Maruti Suzuki to earn foreign currency.
SALES GROWTH HIGHLIGHTS (1)
(2)
(3)
Monthly
Sale
MUL OBJECTIVES "Maintaining an international viewpoint, we are dedicated to supplying products of the highest efficiency, yet at reasonable prices, for worldwide customer satisfaction. To make good adverts, and great car...and keep the shareholders happy... To minimize the defect. To Minimize the Accidents. To see the consumer complaints will be zero. To keep the environment pollution free. Maximize capital utilization. Increase production capacity. Increase plant availability. Minimize indirect and direct loses Efficient use of resources. Effective use of all employees. Training for all. Ensure empowerment and improvement of department. Establish the sustain document quality management system. Compliance with relevant legislation and regulation
Vision: Visions of any company are those values on which company works. As the 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 the profit, but of the need of maximum profit. The only way for this Nora’s dilemma of selecting principals for company’s working vision ,was to maximize profit and reducing cost by maximizing
output
and
sales
Hence
MUL
declared
its
Vision
as-
“The Leader in the Indian Automobile Industry, Creating Customer Delight1 and Shareholder's
Wealth2;
eventually
become
a
pride
of
India”
Customer Delight1 is making sure that performance, after sales service and customer support are best and beyond expectation. Shareholder’s wealth2 is the prime concern for running business smoothly.MUL knows this and understands “customer is king”, he can change the fortune of any company, hence goes company’s brand line: COUNT ON US!
Mission: Mission is the statement of an organization’s purpose, what it want to accomplish in the larger environment and its goals which are specific, realistic and motivating. Missions are described
over
visions
and
visions
objectives/Missions -
Production
of cars
of
certain
of
Modernization Developing
demand
fuel-efficient
The
MUL
the faster
objectives.
Indian and
vehicles
to
are:
Automobile
selling
main
them
conserve
Industry. for
scarce
less. resources.
- Production of large number of motor vehicles which was necessary for economic growth. - Market Penetration, Market Development Similarly Product Development and Diversification. - Partner relationship management, Value chain, Value delivery network .
SWOT ANALYSIS: Consists of analysis of internal environment (Strength and weakness)
and
external
environments (Opportunity
and
Threat).
STERNGHTHS: Contemporary technology. Japanese Management practices (that had
captured Japan over USA to the status of top Auto manufacturing country in the world) Early mover advantages. Recruitment is done in very tedious manner ensuring talent and best professionals, Working culture, after sale services , distribution, diversification, R&D WEAKNESS: Still depends upon SUZUKI COPORATION, Japan For tech. support, 10% components are manufactured outside India. Though MUL has launched luxury cars as well it’s still considered as poor man’s brand. Diversification is not supported with all India presence of Manufacturing Units. Bureaucracy, Technological disadvantages, Decades of isolation, inertia and subservience to the whims of government bureaucrats have made MUL unaccustomed to international standards or keen competition. OPPURTUNITY: first company to roll out suitably designed cars before 2008 as per Govt.’s Proposal of new ethanol (renewable)mixed fuel. Other companies lacks economy of scale, so market is still open. Importing new technology is controlled by Govt. so there is plenty of untapped market and with increase in Income scale, Demand is rising THREAT: Numbers of new Technology driven players and manufactures are in market. Govt .reducing support and cutting down the Gas supply quota.(TOI, New Delhi,11th june,07).
Conclusion: Maruti Udyog limited had a prime objective to meet the growing demand of a personal mode of transport, which is caused due to lack of efficient public transport system. It changed the 4Ps of marketing mix into 4Cs.Product to Customers Solution, Price to Customer’s cost, Similarly Place to Customer’s convenience and Promotion to Customer’s Communications. This enabled MUL to become Market leader. Things are now changing with LPG polices and disinvestment ;the real competitions has already
began. The smarter will certainly will be next leader, but till then...MUL will going to the brand ,on which customers will always….. References:
1).
Principles
2).
Marketing
of
Marketing
Management
AND
(Kotler.Philip, case
studies
Armstrong.Gary, (ICMR
6e).
publication).
3). The TIMES OF INDIA (Internet editions and New Delhi Edition-11.06.07).
About Competent Automobiles Authorized Maruti Suzuki Car Dealer in Delhi and Dehraduni - offers a wealth of variety to the Maruti automotive consumers. We believe that our impressive strides in the marketplace stem in equal parts from our proactive approach and our customers' unstinting support, earned the only way we know: by giving our customers the most appropriate car luxury solutions for each of their needs, and by backing them up with consultancy, finance, after sales services and a responsive after-market network. We are conscious of the fact that vehicles are more than just a means of transporting people and goods; we understand that they have a deep and farreaching impact on society, the national economy and the environment. As we start our second century of business, we are in a position to appeal to the widest network of showrooms and service stations. Each of our Maruti automotive brands has a unique personality and holds a distinct value in itself. We carefully select those opportunities that enable us to deliver better ideas into the marketplace in new and exciting ways. At Competent, we create network to better connect with our customers. We strengthen our relationships with our customers through our services like MGP, MOS, MF We collaborate with others to revolutionize our core business processes and to stay ahead of our rapidly changing industry. We choose new view to help system that maximizes efficiency and operational services. Competent Group has its sights set firmly on the economic & premium sector of the national automobile market. To achieve its aims, the company knows how to deploy its strengths with an efficiency that is unmatched in the automotive industry. From research and development to sales and marketing, Competent Group is committed to the very
highest in quality for all its products and services. The company's phenomenal success is proof of this strategy's correctness. History of Competent Automobiles Ltd
Competent Automobiles Company Ltd (CACL) is promoted by Sh. Raj Chopra with a proactive practical, industrial and business experience of more than 40 years. He is a visionary businessman with distinctions in the fields of construction and hotels besides car dealership. He has been honored with various awards in recognition of his exemplary entrepreneurship skills. He is indeed one of the captains of Indian Industry. Some of his achievements are as follows: Rashtriya Samman in Business category for contribution to national exchequer by paying impressive amount of Income-Tax from the Govt. of India. Award for the service rendered to the construction industry by His Excellency Hon'ble Giani Zail Singh, the then President of India. Medal for service to the construction industry by Hon'ble Dr. Shankar Dayal Sharma, President of India. Gold medal by the Institute of Marketing & Management, New Delhi, being the best dealer in automobiles in India. Jamanalal Bajaj Gold Medal for best automobiles dealer. Prestigious Gold Star from the erstwhile USSR for serving the construction industry. Sh. Raj Chopra is the President of Delhi Olympic Association and Vice President of Indian Olympic Association. Sh. Raj Chopra has also promoted many other successful businesses including: Competent Construction Co., a leading name in the field of construction. Competent Construction Co. undertakes turnkey projects, besides real -estate development. There are many prestigious projects to its credit including important Hotels, Embassies, Hospitals, Housing complexes, Auditoriums etc. Competent Hotels Pvt Ltd.: Competent group has diversified into hotel business in India. Its first five star hotel was commissioned in, April 1994 in Manali, Himachal Pradesh under the name HOLIDAY INN MANALI which has franchise agreement with the 'Intercontinental Hotels Group., USA.' Competent Leasing & Finance, is engaged in the syndication of finance for cars. Competent Films Enterprises is engaged in the exhibition and distribution of films for Delhi-U.P. circuits and has given many block buster Feature Films of prominent producers. Competent Films Pvt. Ltd. : In the business of running state of the art Cineplex & Food court under the brand name 3C'S, at Lajpat Nagar, New Delhi.
Research methodology
What is research? Research can be defined as the search for knowledge or any systematic investigation to establish facts. The primary purpose for applied research (as opposed tobasic research) is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so. Scientific research relies on the application of the scientific method, a harnessing of curiosity. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us. It makes practical applications possible. Scientific research is funded by public authorities, by charitable organizations and by private groups, including many companies. Scientific research can be subdivided into different classifications according to their academic and application disciplines. Historical research is embodied in the scientific method.The term research is also used to describe an entire collection of information about a particular subject
Types of Research Research can be classified by purpose or by method. If we categorise it by purpose, it would fall into two major categories: Basic Research and Applied Research, while in case of method, it would be deductive research and inductive research. BASIC RESEARCH Also called Pure or fundamental Research, it is undertaken for increase in knowledge. There is no direct benefit as it is a research for the sake of research. It is conducted to satisfy any curiosity such as: (a) what makes things happen, (b) why society changes and (c) why social relations are in a certain way. In fact, it is the source of most new theories, principles and ideas. Basic research rarely helps anyone directly. It only stimulates new ways of thinking. The main motivation is to expand man's knowledge. There is absolutely no commercial value to the discoveries resulting from such research. o
o
However, in the long run, it forms the basis of applied research or development commercial products. If basic work is done first, then applied spin-offs often eventually result from this research. As Dr. George Smoot of LBNL says, "People cannot foresee the future well enough to predict what's going to develop from basic research. If we only did "applied research", we would still be making better spears." To sum up, basic research is purely theoretical to increase our understanding of certain phenomena or behavior but does not seek to solve any existing problem.
APPLIED RESEARCH
It is use of basic research or past theories, knowledge and methods for solving an existing problem. It deals with practical problems. It is opposed to pure research which is not problem-oriented but for the increase in knowledge which may or may not be used in future. In the present world situation, more emphasis is being given to applied research to solve problems arising out of overpopulation and scarcity of natural resources. Applied research should not be treated the same as Research & Development (R&D) which is involved in developing products demanded by the existing clients. Applied Research, on the other hand, focuses on uncovering what needs are not being met and use that information in designing products or services that would create their own demand. Thus, applied research brings in new customers and also provides better products and services to the existing customers. In old days, the mobile phone was expensive, bulky and had a short range. Applied Research foresaw that this product would have a limited market and stressed on cost-cutting, reduced weight and long-distance communication. Such measures caused a heavy demand. JUSTIFICATION: In the COMPETENT AUTOMOBILES there exists the APPLIED RESEARCH because this research gives the clear knowledge about the existing problems like How to satisfy the consumer? This research also takes the information from the Basic Research and also this research helps the dealer to create the good competitive marketing strategies.
What is Methodology? Methodology can be: 1. "the analysis of the principles of methods, rules, and postulates employed by a discipline". 2. "the systematic study of methods that are, can be, or have been applied within a discipline". Concept Methodology may be a description of process, or may be expanded to include a philosophically coherent collection of theories, concepts or ideas as they relate to a particular discipline or field of inquiry Methodology may refer to nothing more than a simple set of methods or procedures, or it may refer to the rationale and the philosophical assumptions that underlie a particular study relative to the scientific method. For example, scholarly literature often includes a section on the methodology of the researchers.
What is Marketing Research? Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes. Marketing research is often partitioned into two sets of categorical pairs, either by target market: • •
Consumer marketing research, and Business-to-business (B2B) marketing research
-The first is consumer market research. The goal is to study the purchasing habits of consumers. This can be done by tallying up how much of a product is sold, through surveys or through other means. The information gathered from consumers can be used to analyze current marketing campaigns and to create new ones. Consumer marketing research is a form of applied sociology that concentrates on understanding the preferences, attitudes, and behaviors of consumers in a market-based economy, and it aims to understand the effects and comparative success of marketing campaigns. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923. - The second type of marketing research is business to business (B2B) research, which studies how businesses sell products and services to other businesses. For example, Company A sells computer equipment to companies B and C. Someone may be interested in seeing how companies B and C found out about the equipment, how company A marketed its product and how good the market for that product is. Marketing research is not the same as market research. Marketing research studies how and why consumers and businesses buy, and how those sales can be increased or why they have decreased. It involves in-depth studies into the affect of advertisements and market conditions on consumers. Market research is the research that may be done into a single market, focusing on the size and trends in that market.
JUSTIFICATION: In COMPETENT AUTOMOBILES the Consumer Marketing research is applied as it helps the dealer to know the purchasing habits of the consumer which will help them in future to create marketing campaigns and it also updates the dealer with the attitudes and behavior of the consumer in the market. Types of Market Research
Market research is the process of finding information about your competitors, current market trends or your customers. Most companies invest in market research when they release a new product, improve on an existing product or if they plan on introducing a particular product in a new market. Market research can also prove helpful if you want to explore business opportunities in new markets. Market research can be conducted by two methods, primary research or secondary research.
-Primary Research Primary research refers to information that is directly collected from the source. Another simple method of primary research would be to directly talk to your customers and get their feedback. Primary research can be both qualitative and quantitative.
-qualitative primary research Qualitative primary research involves gathering information from interviews or focus groups. •
•
Open-ended interviews include questions that cannot be answered with a yes or no. You can get a lot of information from such interviews and also find out about the dislikes, likes, requirements, trends and emotional motivators of your primary market A focus group should ideally be led by experienced professionals who can lead a group of 6 or more people and ask them both general and specific questions. Since trained professionals are required to handle focus groups, they are very expensive.
-Quantitative primary research Quantitative primary research involves the collection of numerical information from surveys. This information is then analyzed. •
Surveys can provide you with the information you require if the survey has meaningful questions. More people would be willing to take a survey as it takes less time. The cheapest and easiest way of conducting a survey is through the telephone and on the place where your product is being sold.
JUSTIFICATION:
In this COMPETENT AUTOMOBILES Quantitative Primary Research is followed up as it provides the information at less time and the consumers are also interested to fill up the questionnaires.
-Secondary market research Secondary research is more economical and easier to do when compared to primary research. Here you will have to analyze the information that has been collected for some other reason. You can find the data that you require through a set of articles, demographic/ statistical data, studies etc. By investing in secondary market research you can analyze your target markets, evaluate your competitors and assess political, social and economic factors. The internet has a large number of secondary data sources and most resources, magazines and press releases are now available online.
Secondary research resources There are a large number of resources from which secondary research information can be obtained. Some of these sources are: 1. Trade associations From the reports available with trade associations you can get information on the industries served, the standards that they observe and the leaders in their field. You can also get information on the latest trends, issues and competitors. 2. The marketing departments of local colleges The marketing department of any college can give you access to special research projects and reports prepared by students. 3. Chamber of commerce The local chamber of commerce in your area can give you information on your local community and local businesses. You can also get access to the maps of the area.
4. Insurance companies, banks and real estate companies You can information on the statistics of the communities to whom they provide services. 5. Wholesalers and manufacturers
From manufactures and wholesalers you can get information on customers, problems if any, costs, industry standards etc. JUSTIFICATION: In this COMPETENT AUTOMOBILES mainly the information which is collected is based on Secondary Research which help the dealer to retrieve the information whenever is needed and with the help of this information the dealer plans out its future Marketing Strategies which influences the Purchasing Factors of The Consumers. The information can be collected from any reports like The Crisill Report which also shows the current status of its major competitors.
Marketing research process
Marketing research process is a set of six steps which defines the tasks to be accomplished in conducting a marketing research study. These include problem definition, developing an approach to problem, research design formulation, field work, data preparation and analysis, and report generation and presentation.
Stages of marketing research process
Step 1: Problem Definition:The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. JUSTIFICATION: In COMPETENT AUTOMOBILES the main problem definition of this dealer can be the customer’s satisfaction
Step 2: Development of an Approach to the Problem:-
Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations.
Step 3: Research Design Formulation:A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. More formally, formulating the research design involves the following steps: 1. Secondary data analysis 2. Qualitative research 3. Methods of collecting quantitative experimentation) 4. Definition of the information needed 5. Measurement and scaling procedures 6. Questionnaire design 7. Sampling process and sample size 8. Plan of data analysis
data
(survey,
observation,
and
Step 4: Field Work or Data Collection:Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with prerecruited households). Proper selection, training, supervision, and evaluation of the field force help minimize data-collection errors.
Step 5: Data Preparation and Analysis:Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to
magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Unvaried techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously.
Step 6: Report Preparation and Presentation:The entire project should be documented in a written report which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and present the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact. For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products. Explanation on Customer retention In today's challenging economy and competitive business world, retaining their customer base is critical to organization success. If they don't give their customers some good reasons to stay, organization’s competitors will give them a reason to leave. Customer retention and satisfaction drive profits. It's far less expensive to cultivate organization existing customer base and sell more services to them than it is to seek new, singletransaction customers. Most surveys across industries show that keeping one existing customer is five to seven times more profitable than attracting one new one. A customer-focused approach among its employees is still not present. In this era of intense competition, it is very important for any service company to understand that merely acquiring customers is not sufficient because there is a direct link between customer retention over time and profitability & growth. Customer retention to a great extent depends on service quality and customer satisfaction. It also depends on the ability of the organization to encourage customers to complain and then recover when things go wrong. Complaints are natural part of any service activity as mistakes are an unavoidable feature of all human endeavor and thus also of service recovery. Service recovery is the process of putting things right after something goes wrong in the service delivery. Customer retention is the maintenance of continuous trading relationships with customers over the long term. Customer retention is the mirror image of customer defection or churn. High retention is equivalent to low defection. Customer retention is about keeping the customers organization has spent that money to acquire. And if you’re in an industry
where they make multiple purchases over the years, organization entire team should be very focused on retaining those customers: • • • • •
Delivering service that’s consistent with your value proposition and brand Cross-selling, up-selling and asking for referrals from existing customers Developing programs to increase customer loyalty and decrease turnover Knowing the lifetime value for different segments and using that data to improve your marketing. Prioritizing retention as a major focus in your annual marketing plan.
Customer retention has always been an important topic for the marketing. For sure, the advantages of loyal clients are obvious. In the last years the concept had a renaissance because of the new term CRM (Customer Relationship Management). However, CRM comprises nearly every customer oriented activity from a complaint hotline to client cards and client clubs. Often CRM is only implementing new systems for data mining and client segmentation or operational systems like a complaint management. But the thing is: data mining systems or client clubs are not the basis. They are the cherry of the cake called client retention. A company like Porsche needs no client club to tie up the customer to the brand. According to Buchanan and Gilles the increased profitability associated with customer retention efforts occurs because of several factors that occur once a relationship has been established with a customer. •
The cost of acquisition occurs only at the beginning of a relationship, so the
longer the relationship, the lower the amortized cost. •
Account maintenance costs decline as a percentage of total costs (or as a
percentage of revenue). •
•
Long-term customers tend to be less inclined to switch, and also tend to be fewer prices sensitive. This can result in stable unit sales volume and increases in dollarsales volume. Long-term customers may initiate free word of mouth promotions and
referrals. • •
Long-term customers are more likely to purchase ancillary products and high margin supplemental products. Customers that stay with you tend to be satisfied with the relationship and are less likely to switch to competitors, making it difficult for competitors to enter the market or gain market share.
Importance of Customer Retention
Why are customers more profitable for service firms over a period of time? There are a number of reasons for this. To begin with, to acquire a customer a company incurs promotional costs like advertising, sales promotion etc. It is said that it costs five times more to attract a new customer than retaining one. The operating cost decreases when a customer stays. Services being rich in experience and credence qualities, it takes some time for customers to get accustomed to it and once they are used to the service and are satisfied with the service provider ,they tend to purchase more over a period of time. As they remain satisfied with a service provider, they spread a positive word of mouth, which is very effective in case of services for attracting new customers. Longer the customer stays with an organization, more the organization knows about him, which enables it to offer customized services which make it difficult for the customer to defect. This may even provide opportunities to the organization to charge price premium by offering individualized services which may be difficult for the competitors to offer. Considering the importance of retaining customers in service business, Reichheld & Sasser coined a term ‘Zero Defection’. They highlighted that companies can boost profits by almost 100% by retaining just 5% more of their customers. Further, it is also very important to understand the life time value of a customer. Further, if by a positive word of mouth, he brings just one more customer to the organization, his value to the organization doubles. Therefore, it is important for all the employees in the organization to understand the life time value of their customers. Once they understand it, they will treat the customer accordingly and will focus on building relationship with the very people who keep them in business.
Objective of study
1. 2. 3. 4. 5. 6. 7. 8.
To know about company’s responsibilities for their Customers. To know the consumer relationship with COMPETENT AUTOMOBILES. To know the thinking of the customer for purchasing the car of Maruti Suzuki. To know about code of conduct and which rules and procedures are followed by employees. To know about employees burden level for stick the customer in company. To study about the perception of maruti Suzuki automobiles product. To know whether the different variations of price level provided by COMPETENT AUTOMOBILES satisfies consumers. To know about employees burden level for stick the customer in company.
9. To know that why the customer choose the Maruti Suzuki brand in purchasing their dream car.
Findings: data analysis and interpretation 1. What type of car do you prefer from Maruti Suzuki (competent automobiles)? Small car Sedan Luxury
Small car sedan luxury
57% 29% 14%
Interpretation:- In the above graph we can come to know that there are 14% people who prefers luxury cars ,29% of the people using sedan cars and 57% of the people using the small cars.
Suggestion:-Best services should be provided to the high-end customers and loans should be given to the customers at cheaper rates who prefer luxury and sedan cars so it can increase the sales of luxury and sedan cars.
2. What is your perception about Maruti Suzuki automobiles product? Very good
Good Average Bad
Very good Good Average Bad
15% 70% 12% 3%
Interpretation:-From the above graph we can come to know that about 70% of the customers have good perception about Maruti Suzuki,15% of the customers has very good perception about Maruti cars,12% of the customers having average perception for d Maruti cars and 3% of the customers are having bad perception.
Suggestion:-The management team of Maruti Suzuki should look after the marketing team and train them in such a way that customers get influenced in much better way and hilting the key services provided by the company to increase the perception of customers.
3. From where do you come to know about competent automobiles? Media
Hoardings Newspapers Others ___________.
Media Hoardings Newspapers Others
25% 20% 15% 40%
Interpretation:-From the above graph we can see that 25% of the people come to know from media about competent automobiles,20% of the people come to know from the banners n hoardings,15% of the people come to know from the newspapers and 40% of the people come to know from their relatives,friends,parents etc…
Suggestion:-The dealer should increase their advertising expenditure in order to bring the attention of customers as well as people through media n other such activities.
4. Why do you choose this Maruti Suzuki brand? Product quality Low maintenance Cheaper rates
Product quality Low maintenance Cheaper rates
45% 30% 25%
Interpretation:-From the above graph we can come to know that about 45% of the people select this brand coz of product quality,30% of the people select this brand coz they think maintenance is low and 25% of the people think that the rates of this brand is cheaper.
Suggestion:-Its people’s choice for selecting the brand There can’t be any suggestion for this as it fully depends upon the customer choice.
5. If you are going to be a customer of maruti Suzuki (competent automobiles) cars in future what will b your expectation? More varieties of cars Improve quality of car Better after sales services
More varieties of cars
45%
Improve quality of car Better after sales services
25% 30%
Interpretation:-From the above Chart we can see that 45% of the people expecting more varities of cars from this brand,25% of the people want to change them the quality of cars and 30% of the people likes the after sales services of competent automobiles.
Suggestion:-There should be latest advanced technologies to b fixed in the cars if the customer wants to. Sports gear should be available and olso sunroof technique should be provided by the company.
6. What do you feel about the behavior of sales executives at competent automobiles? Bad Average Good Worst
Bad Average Good worst
5% 30% 60% 5%
Interpretation:-From the above chart we can say 60% of the people thinks that the behavior of sales executives is good, 30% thinks that the behavior is average,5% of the people thinks its bad and other 5% thinks that its worst when they are not treated well.
Suggestion:-I would like to suggest that the company must appoint the sales executives which understands the customers needs and can satisfies his needs, he should be capable of solving all the difficulties which local people are in.
7. Whether executives are able to understand your requirement? Yes No
Yes No
90% 10%
Interpretation:-In the above chart we can see that around 90% of the people are satisfied with the executives of competent automobiles and rest 10% of the people are not satisfied with their requirements provided by executives.
Suggestion: - It may sound straightforward, but unless every hour of a sales executive’s time is optimized and not allowed to waste, the company can never hope to achieve its ultimate potential. Without proper territorial alignment, the sales executive could be faced with having to deal with far too many potential customers.
8. What do you think about the space availability in Maruti cars? Extremely spacious Average Less space
Extremely spacious Average Less space
45% 50% 5%
Interpretation:-From the above chart we can say that 50% of the people say that space availability in maruti cars is average,45% of the people think that this cars are extremely spacious and rest of the 5% think that availability of space is less according to them.
Suggestion:-The suggestion is different for each of the cars, we get the spacy cars which is of luxury cars but for todays generation people believes in small car n prefer more so they dealers should make the small budget cars wit more space.
9. Do you think that the cars of Maruti Suzuki (competent automobiles) are capable to attract today’s generations? Yes No Cannot say
Yes No Cannot say
65% 25% 10%
Interpretation:-From the above graph we can say that 65% of the people are attracted to the maruti Suzuki cars of todays generations,25% people are not attracted by maruti Suzuki cars as they prefer other dealers and 10% of people say that as per the competition in the market its difficult to suggest.
Suggestion:-The only thing is to b suggested that dealer should provide discounts,varities of other external accessories, auto locks etc etc.
10. What do you think about the style and design of Maruti Suzuki cars? Very good Good Average Bad
Very good Good Average Bad
35% 30% 30% 5%
Interpretation:-From the above figure we can see that 30% of the people thinks that the style n design of Maruti cars is good,35% of the people think that style n design is very good,30% people thinks that style n design of Maruti cars is average and 5% of the people thinks that its bad. Suggestion:-I would like to suggest that the seats need to rise when we open the door. Solid supportive seats impressed, but the main thing was the massive access when you opened the door Fold away steering wheels is another way to make it easier for driver entry
11. New technologies such as Bluetooth device,DIS,reverse parking sensor are provided by Maruti Suzuki cars is it good and makes you feel comfort while driving? Excellent Very good Good Average
Excellent Very good Good Average
40% 35% 20% 5%
Interpretations:-In the above figure we can come to know that 40% of the people are happy with the technologies provided by the Maruti Suzuki,35% of the people thinks that its good for them,20% of the people thinks that technologies are good and 5 % thinks that it’s a average technologies.
Suggestion:-I would like to suggest that rather system, Bluetooth devices, parking sensor etc should be provided by the Co. only it should be with cars this work should not be done separately.
12) A Competent automobile has got the largest boot space in its segment, what do you think about it? Very good Good Average
Very good
55%
Good Average
40% 5%
Interpretation:-In the above chart we can see that about 52% of the people are satisfied by the boot space provided in Maruti cars,40% thinks that boot space segment is good and 5% of the people thinks that its average.
Suggestion:-I would like to suggest that their should be small two light near the boot space when its too spacious. 13) What do you think about the different variations’ of price level provided by competent automobiles? Highly price Moderate/average price Low price
Highly price Moderate/average price Low price
20% 70% 10%
Interpretation:-From the above bars we can come to know that 20% of the people thinks that price level provided by competent automobiles is high,70% of the people thinks that is average price according to the requirement and 10% thinks that it’s a low price.
Suggestion:-no suggestion
Limitations of the project Any research or study always has some limitations under which this has to be undertaken. This one too was not an exception. These limitations are poised by the environment … some external and some inherent. This study has been conducted with utmost consideration to the adequacy of data and quality of information, though as mention earlier the reliance on the sources can not be minimized to zero in context of precision. The limitation can be enlisted as hereunder:-
1. The perception level of the respondents.
2. Availability of documents as sources of secondary information.
3. Reliability of information collected from various public information sources such as magazines and website.
4. Respondents are not willing to fill the questionnaire.
5. Sometimes the respondents are not available at their place.
6. Very often the respondent do not express their true feelings, in such case their Habit, preference, practice, cannot be assessed correctly.
7. Some of the respondents refuse to give the important information best known to them.
8. There is a chance of mistake in the answer because of the limited knowledge of the respondent.
9. Probability sampling was not used due to time and cost constraints and therefore the results cannot be generalized to the population.
Suggestions of the projects Following are the few suggestions to COMPETENT AUTOMOBILES for improving the market share and image of the products concerned.
1. Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness.
2. Free samples should be distributed among the prospects. Sales promotion tools like gifts, contests and coupons must be given to customers.
3. Majority of the respondents in Dehradun suggested that the company should open some more service centre in Dehradun. Moreover, they also suggested that the company should increase their current servicing capacity.
4. The company should focus more on Auto fair medium, Magazines, Demo, should be the main weapon for the company.
5. Looking to the result of the factor analysis Competent Automobiles Ltd. has to make the future strategy by considering the 3 important representative factors like as RELIABILITY,ATTRACTIVENESS,CUSTOMER HANDLING
6. More test drives should be offered. Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer.
7. Should put in more efforts to promote Maruti finance, autocards,accessorories.
8. They must keep in their mind that the “customer is king in the market” and his full satisfaction in respect of all the parameters are very essential other wise goal cannot be achieved.
Conclusion of the project Here, below are some points which conclude the whole project:
•
During the work I knew that which way employees are follow their employer rules with customer relationship management.
•
One is the biggest benefit is to make me punctual and profession person for the good relationship with customers..
•
Motivate me to perform in work with the customer & increase the good relationship with customers.
•
To knowing that what is business and how we increase our business in competitive market.
•
How to save the time & how to do the work in just short time.
•
This Competent also handles the Customer in a very politely way after the sale of the vehicle and is ready to give any time service.
•
It had Company Authorized Service Shop where there are well trained mechanics who quickly solves the problem of the vehicle.
Glossary
1. Reliability:- reliability (systemic def.) is the ability of a person or system to perform and maintain its functions in routine circumstances, as well as hostile or unexpected circumstances.
2. Stretch:- "Stretch" is a speed reading program that offers exercises designed to improve reading speed and comprehension. These exercises are an extension of the flash-card method used in school, but with much greater scope for vocabulary and the capability of flashing more than one word at a time.
3. Liberalization:- The process of making policies less constraining of economic activity. 2. Reduction of tariffs and/or removal of nontariff barriers.
4. Segment:- A segment is a defined portion or section of something larger such as a database, geometric object, or network. The term is used in database management, graphics, and communications.
5. Deregulation:- Every industry has certain rules and regulations that it must abide by. These rules are created by industry associations and watchdogs, as well as the government. Deregulation occurs when the government pulls back from the industry a bit, therefore loosening its grip on particular rules and regulations.
6. Fleet management:- Fleet Management is a function which allows companies which rely on transportation in their business to remove or minimize the risks associated with vehicle investment, improving efficiency, productivity and reducing their overall transportation costs, providing 100% compliance with government legislation (duty of care) and many more. These functions can be dealt with by either an in-house fleet-management department or an outsourced fleet-management provider.
Bibliography Books
•
KOTHARI CK (2008): “Research Methodology” 2nd Revised Edition, New Age International Publisher, New Delhi
•
LAL RAJIV, QUELCH JOHN (2009): “Marketing Management” 3rd Edition, Tata McGraw – Hill Publishing Co. Ltd, NewDelhi
Sites
1. www.wikepedia.com 2. www.scribd.com 3. www.google.com
Annexure
Respected sir/Madam I Vinit Sharma Student of MBA program from Sikkim Manipal University in Delhi is working on a Project in the area of marketing specialization on the topic Customer Retention with reference to Maruti Suzuki products for the partial fulfillment for the master’ss Degree of Business Administration.
Kindly spare few minutes of your valuable time to fill in the below questionnaire.
• • • • •
NAME :GENDER:AGE:CONTACT NO. :OCCUPATION:-
1. What type of car do you prefer from Maruti Suzuki (competent automobiles)? Small car Sedans Luxury 2. What is your perception about Maruti Suzuki automobiles product? Very good Good Average Bad
3. From where do you come to know about competent automobiles? Media Hoardings Newspapers Others ___________.
4. Why do you choose this Maruti Suzuki brand? Product quality Low maintenance Cheaper rates
5. If you are going to be a customer of Maruti Suzuki (competent automobiles) cars in future what will b your expectation? More varieties of cars Improve quality of car Better after sales services 6. What do you feel about the behavior of sales executives at competent automobiles? Bad Average Good Worst 7. Whether executives are able to understand your requirement? Yes No 8. What do you think about the space availability in Maruti cars? Extremely spacious Average Less space
9. Do you think that the cars of Maruti Suzuki (competent automobiles) are capable to attract today’s generations? Yes No Cannot say
10. What do you think about the style and design of Maruti Suzuki cars? Very good Good Average Bad 11. New technologies such as Bluetooth device,DIS,reverse parking sensor are provided by competent automobiles of Maruti Suzuki cars is it good and makes you feel comfort while driving? Excellent Very good Good Average 12. A Competent automobile has got the largest boot space in its segment, what do you think about it? Very good Good Average 13. What do you think about the different variations’ of price level provided by competent automobiles? Highly price Moderate/average price
Low price
14. Finally, what is your suggestion for the Competent automobiles for the conditions and requirement provided by them? _______________________________________________________________________ _______________________________________________________________________ ___________________________________________________________
