Buying Behavior and Attitude of Customers towards

Entry Segment Car

With
(Special reference to Maruti Udyog Limited)

For Partial Fulfillment of Degree

Master of Business Administration (MBA)

Submitted To:

Submitted By:

DR. RITVIK DUBEY

NAZIR HUSSAIN

SR. LECTURER
DEPARTMENT OF
MANAGEMENT STUDIES

MBA III SEM

ROLL NO: 07020500049

AMRAPALI INSTITUTE OF MANAGEMENT & COMPUTER APPLICATIONS

(AFFILIATED TO UTTRAKHAND TECHNICAL UNIVERSITY, DHERADUN)

SHIKSHA NAGAR, LAMACHAUR, HALDWANI

STUDENTS DECLARATION
This is to declare that project titled Buying Behavior and Attitude of Customers towards
Entry Segment Car Maruti Udyog Limited, Jaipur
The project was executed during the summer break after the fourth semester of M.B.A.
under the supervision of Dr. Ritvik Dubey.
Further, I declare that this project is my original work and the analysis and the findings
are for academic purpose only. This project has not been presented in any seminar or
submitted elsewhere for the award of any degree or diploma.

COUNTERSIGNED BY: -

SIGNATURE OF STUDENT

DR. RITVIK DUBEY

(SUPERVISIOR)

NAZIR HUSSAIN
MBA III SEM
ROLL NO.: 07020500049

SIGNATURE OF THE COURSE COORDINATOR

DEPARTMENT OF MANAGEMENT STUDIES

ACKNOWLEDGEMENT
I gratefully acknowledge the direction encouragement and help extent to me by my guide
lectures Dr. Ritvik Dubey under whose eminent guidance and constant support. I could
complete this project.
During the course of this study, many useful suggestions and constructive criticism came
across which really helped a lot in giving this project a professional look. I extend my
heartiest thanks to all those persons whose willing cooperation led to the timely
completion of the project.
I am sincerely thankful to the Marketing Deptt. Which co-coordinated my training &
especially express thanks to Mr. P. N. Mathur (Sales Manager) their continued help and
guidance during my stay here?
I would also like to extend my sincere thanks to my friends whose help me in designing
the questionnaire and analyzing the results have been of great help to me in this project.

NAZIR HUSSAIN
MBA III SEM

PREFACE
I feel immense pleasure in presenting this project based on the subject assigned to me as
winter project required in partial fulfillment of the course.
My subject area of interest is buying behavior and attitude of Entry segment Cars with
special reference Maruti Udyog Limited (Alto). The project analysis is based on the
research work done on the above said topic in this area with the help of the questionnaire
and other tools.
I sincerely hope that the research work and the analysis done will fulfill the requirement
of the project work assigned. I am grateful to all those including my project guide who
have helped me and encouraged me in preparing this project.

CONTENTS
S. NO.

TITLE

PAGE
NO.

Student Declaration
Preface
Acknowledgement
CHAPTER FIRST

i
ii
iii

Introduction

1.1

Objective of study

1.2

Sample size

1.3

Period of study

1.4

Methodology

1.5
1.6

Limitation of study
Scope of study

3
4

1.7

Chapter Arrangement

CHAPTER SECOND
2.1
2.2

Industry Profile
Company Profile

6
25

3.1

CHAPTER THIRD
Data Analysis

3.2

Finding
CHAPTER FOUR

36
37

4.1
4.2
4.3
4.4

Conclusion
Recommendation
Bibliography.
Annexure
LIST OF TABLES

38
39
41

1 Introduction
Even though the consumer behavior is unpredictable, human psychology can be
evaluated by the study of several factors. Curiosity to understand consumer behavior has
encouraged me to carry out this project report. My effort during this project will be to
understand the behavior of consumers of entry segment motor-Cars, so that the
companies manufacturing and marketing entry segment brands of the motor Car can
utilize this information for their own interest, and satisfy the need of their consumer to a
great extent.
To know the brand preference and company goodwill, about its products and market
position. You have to understand that is customer is the king. Costumers attitude,
buying behavior and satisfaction you has to strike into the kings minds.
This project is all about customer attitude their buying behavior towards Entry segment
Four-wheeler Motor Car, it will enhances my marketing skills to deal with customers
attitude and help the Four wheeler Motor Car company to find their strength and
weakness.
Summer training is an organized process for increasing skills of a management student. It
is a learning process involving the acquisition of skills and performance. It is necessary
and useful in the case of all type management students. It is necessary to increase the
confidence of student.
As a part of MBA Programme I am opportunity to do a project in an Organization. For
about two months I completed my summer training in Maruti Udyog Ltd. and my project
related to the study of buying behavior and attitude customers towards entry segment car.
The training helps the management student in converting his theoretical knowledge in
practical knowledge because now he is doing practical work.
At the completion of the project works. I have made my best efforts to summarize the
same in the report so that my report my act as understanding practical & knowledge
imparting detail for all reader.

1.1 Objectives of the Study

1. To identify the factors, which affect the purchase of Motor Car (Especially Entry
segment).
2. To identify the purchase motive in behind the motorcars.
3. To assess the importance of advertising of motorcars.
4. To find out what role the distribution channel & C.D.L. facilities plays in influencing
the attitude of consumers.

1.2 Sample Size

For the purpose of the project, the views of 150 people were collected.

1.3 Period of Study

The period of study is conducted during 20th June 08 to 20th August 08

1.4 Research Methodology

SECTOR & PLAYERS
Sector chosen for the study is AUTOMOBILE. Under this head we are concerned with
one player i.e. Maruti Udyog Limited.
INFORMATION SOURCES
Sources for primary data are organization, dealers, retailers, and customers. Internet is
used as the source for secondary data.
DATA COLLECTION METHOD
Primary data was collected through questionnaire method &secondary data was taken

books, magazines & websites.

QUESTIONNAIRE METHOD
It is very simple diagnostic tool &is a fastest method of collection data. In order to get an
unbiased data well-defined structure questionnaire was prepared for customer. Then data
was collected & analyzed to get the actual information & contain the truly reflected
picture.

1.5

Limitations Of The Study

While preparing the project many limitations were experienced.

1 Information given by some respondents may be wrong.
2 Area of research has limited to Jaipur and may not therefore reflect overall Consumers
perception.
3 Time has been another major limitation
4 financial resources were insufficient for the study.

1.6 Scope of the Study

To identify those attributes of products that influences the customer to buy them.
In the present competitive environment knowing customer attitude and behavior is
important for their survival of any organization. To have that winning competitive edge
knowledge of the buying behaviors and attitude of customers is very essential. Research
and development is the backbone of any organization.

1.7 Chapter Arrangement

In this report I have divided chapter into four different sections.

CHAPTER I:
Introduction
Objective of Study
Research Methodology
Scope & Limitations of Study.
CHAPTER II:
Industry Profile
Company Profile
CHAPTER III:
Data Analysis
Findings
CHAPTER IV:
Conclusions
Recommendations

THEORETICAL BACKGROUND: SALES MANAGEMENT (AUTOMOBILE

SECTOR)
DISTRIBUTION NETWORK:
Channel Structure
Manufacture
(Maruti Udyog Limited)
Distributor
Authorized Dealer
Customer
Functions performed by different channel members
Distributor
Marketing regional office for sales.
Authorized Dealer
Selected on the basis, reputation G/will in the Market.

Advertising [Paper AD with schemes]

Reference

DSA/DMA (Broker)
(Direct sales associates & Direct marketing associates)

Cold calling and corporate selling

[Cold calling means they take the data and call them]
[Corporate/Government selling means they go there self for selling.]
Financial Terms
For Company Advance Payment (Cheques, DD).
Booking order.

Order to plant.
Dispatch car from plant.
Order Price
The transport charges that take in dealer of vehicle to North Region will
Be giving by the company.
The transport of vehicle from North Region office to Chennai is done.
The Chennai cars dealer to deals with the customer online base system.
Warehousing
It is mainly located in Chennai.
Physical movements of the goods

Truck & Train.

Only Delhi Trains.

Else where Truck.

For Authorized Dealer

The payment through Cash can take the delivery or can booking the
vehicle in advance.

The customers who cannot pay the complete cash can take the loan or
financial help.

Order processing

They can book Online

They can directly take it from the showroom.

Warehousing
It is located in Gurgaon (Kapashera)

Physical movements of the goods

According to the company requirement
By road (Delhi from Showroom)
By truck, train (Chennai from Company)
Structure
Everything done from regional office, which is located at Delhi.
Size
Demand from customers point of view.
In North
a. 6 divisions

Delhi

Jammu

Rajasthan

Punjab

Main target is dispatch & order vary every month and it can affect the price of the
vehicle.
Process
The process of Payment.
Physical dispatch of cars to dealership and getting the cash.

Authorized Dealer
Structure

Infrastructure

Staff

Furniture

Own Drivers (to pick and deliver cars)

Size
This dealer is having 4 workshops in Delhi (All Zone).
Process
Work is being done in each workshop individually.
It depends on the monthly, the Quarterly, or half yearly on distribution of cars as per the
booking.
Response Time
80% of the time the customer is normally being responded immediately and the problem
is been solved.
And the remaining 20% of the time customer is not quickly responded.
Performance Appraisal system
Generally the performance appraisal consider as the Feedback from customer to the sales
person.

Knowledge

Product

Convince

Tell him about the competitors

Sales Functioning: Distributor

Sales organization structure
Depend upon the order and in the first come first serve process.
Physically dispatch from Gurgaun.
Sales organization structure

Head office in Defence colony [only showroom]

Okhla showroom cum workshop.

Mayapuri sales cum workshop.

Targets
Particular to Employees

Sales

Finance

Accessories

Responsibilities of sales person

No problem from customers side.
Performance Appraisal system
Done on the bases of

Targets

Behavior

Turnover

Co-operation with staff

Customer satisfaction

Appraisal is once in a Year.

Rewards & Incentives per month.

2.1 Industry Profile

Peter Drucker called the automobile industry as "the industry of industries". During the
last few years, the production and management systems have been revolutionized in the
automobile industry (Karmokolias, 1990). One of the major changes in the industry has
been the opening up and growth of several emerging markets. India is one of the most
important emerging car economies in the world today.
In 1991, the Government of India embarked on an ambitious structural adjustment
programme aimed at economic liberalization, based on the pillars of Delicensing,
Decontrol, Deregulation and Devaluation. Post-liberalization, the Government of India's
new automobile policy announced in June 1993 contained measures, such as delicensing,
automatic approval for foreign holding of 51% in Indian companies, abolition of phased
manufacturing programme, reduction of excise duty to 40% and import duties of CKD to
50% and of CBU to 110%, and commitment to indigenization schedules.
The Government of India's new automobile policy attracted a large number of
automobile companies to India. These include General Motors and Ford, and two
Japanese, seven European and two Korean companies. Toyota and Chrysler are
also seeking to enter the country with suitable Indian partners. In addition, there are three
existing Indian companies, Hindustan Motors, Premier Automobiles and Telco, and one
Indo-Japanese venture, Maruti already in the passenger car market. Maruti is
by far the biggest player with about 70% of the market share. As of April 1997, a total of
7 Automobile companies (Daewoo, Peugeot, Fiat, Ford, General Motors, Merc, Audi)
have already started selling cars, while another 8 companies (Honda, Mitsubishi, Renault,
VW, BMW, Toyota, Hyundai, Chrysler) have either begun operations in India or plan to
start soon. Some Indian companies like Telco and Kinetic are also working on
introducing small car models.

Demand Estimates
A rapidly growing middle class, rising per capita income, and high levels of latent
unsatisfied demand promise enormous opportunities. For instance, from current sales of
312,000 cars in 1994-95, sales are expected to rise to anywhere between 850,000 to 1.5
million vehicles by the year 2000. It is worth noting that in the past 15 years, all demand
projections have been exceeded. It remains to be seen if this will be true of current
projections also. The following table summarizes industry performance in the past five
years.

Even though growth rates are impressive, uncertainty about the extent of demand growth
persists for several reasons. The price to income ratio for the middle class consumer is
too high. Currently the price of a car is about 18 to 24 months salary, and therefore price
is perhaps one of the most important variables determining demand. However, incomes
are rising rapidly and inflation seems to be under control. Car prices are also likely to
remain fairly steady as companies indigenize component production. Excise duties are
high at 40%. If these are reduced, it is likely to spur growth. On the downside,
infrastructure in roads is very poor, and traffic congestion in many cities is very high.
Of the total of 170 million families in India, effective purchasing power is estimated to be
with 24 million families, which includes 4 million families which are in the top income
bracket, and can buy luxury and premium cars. These figures are rising rapidly since the
economy is growing steadily at 5% to 6%. Rural incomes compared to urban incomes are
lower, but disposable incomes are higher because of lower house rents and cost of living,
and because agricultural incomes are exempt from tax. The current state of rural roads is
very poor. The government has allowed private parties to build international class

highways and collect tolls in some areas. If roads in rural areas are developed, then car
sales are likely to grow very fast since these areas have very low market penetration.
In addition to price, duties and taxes, economic growth and availability of adequate road
kilometers, another factor affecting demand is availability and cost of credit. Vehicle
financing has boomed, and currently is around $1.6b, covering 25% of industry sales.
This figure includes credit for all vehicles including two wheelers, trucks and buses.
Many companies also provide new cars or soft loans for buying cars to its executives as
perks. The following table shows the credit made available to customers over the last two
years.

Automobile companies have announced plans to install capacity of around 900,000

vehicles by the year 2000. It is estimated that the number of cars sold over
the next five years is going to be anywhere between 2 and 3.5 million. The demand
estimates do not include utility vehicle (jeep) sales, which are classified as "off road
vehicles". Separate figures have been furnished for cars and for all vehicles including
trucks, buses, utility vehicles and two wheelers.

Car sales are expected to be in the region of 600,000 to 1.5 million vehicles by the year
2000. The sales of lower end luxury cars is expected to account for 26% of the total
market, i.e., 200,000 cars by 2000 AD. The industry will have to live with uncertainty for
the next two years before things become clear.

The Industrial Structure

Suzuki was the first MNC to enter India in 1981 through a joint venture with the
Government of India and set up Maruti Udyog Limited. Currently, Maruti has around
70% of market share, and the Maruti 800 in the small car segment is the best selling
model. Since 1995, the industry is witnessing a sea change with the introduction of
several new models by MNCs coming into India through joint ventures with Indian
partners. In the super-premium segment there is the Mercedes Benz's E-class sedan.
BMW and Audi are also considering plans to sell cars. New

introductions in the premium segment are General Motor's Opel Astra, PAL Peugeot's
309, Maruti's Esteem, Telco's Sumo, Estate and Sierra, DCM Daewoo's Cielo and
Sipani's Montego. In the economy car segment, Fiat Uno and Telco are expected to
produce 60,000 cars each per annum. The power relationship between automobile
companies, dealers and customers is going to change substantially as the industry moves
from a supply constrained sellers' market to a demand driven buyers' market. Thus
dealers and customers are going to acquire greater power.

Adoption of Lean Production

Since the Indian industry started mass production only in the mid 1980s with the arrival
of Maruti Udyog Limited, the transition to lean production is likely to take time. With so
many MNCs entering the growing Indian market, there will be a push towards lean
production. Maruti has implemented JIT for some of its major suppliers. Some others are
in the process of doing so. There is a stress on quality in the highly competitive industry.
However, the success of lean production at the industry level depends not only on the
efforts of the assemblers, but also on the suppliers and on institutional and cultural
factors. The bargaining power of suppliers of some components is high, because of
capacity constraints. This makes them accept only large orders, and therefore makes it
difficult for assemblers to implement JIT.

Government Regulations
The Indian government has made significant shifts in its policy towards the automobile
industry. Ever since independence, the government considered the
passenger car to be a luxury item, and imposed very high tariffs. Since the economic
liberalization launched in 1991, the Government of India's automobile policy announced
in June 1993 has changed. The excise duty varied as follows over the last five years.

The import duty on car components increased from 40% to 75% during 1984-91 and then
came down to 50% recently. Thus duties and taxes continue to be high by international
standards. These might be brought down in future as the industry becomes more
competitive.
The Government of India has reduced its direct control on the automobile industry
following the announcement of the new automobile policy. Entry of MNCs is permitted,
either as joint ventures or on their own. However, the indirect impact of government
policies on the industry still remains far from insignificant. The government has levied
110% customs duty on completely built units (CBU) and 50% on CKD and parts. There
are several areas where there is ambiguity. At the moment, the duty on both CKD kits and
components is 50%. However, though component imports do not require any license,
CKD imports need a license. The difference between CKD and component imports has
not been specified. This has helped companies to take advantage of the ambiguity. The
phased manufacturing program
(PMP) which was in force till 1993, and required component imports to be brought down
within a fixed time frame has been withdrawn. However, the licensing required by CKD
assemblers from phase to phase and for capacity expansions puts pressure on companies
to indigenize.

Suppliers
There are about 6,350 small and large component manufacturers in India, out of which
about 350 are in the organized sector and are registered with the Automotive Components
Manufacturers Association. There is a sizeable replacement market for parts and
components, but manufacturers who sell unbranded products at very low prices heavily
dominate this market. The component manufacturers therefore have to rely on assemblers
in the domestic market. The industry had a turnover of about $2.7 billion in 1995-96.
Although this is not impressive, industry sales have been growing at nearly 35% since
1992- 93, and turnover is projected to reach about $6.4 billion by the year 2000. Exports
are projected to reach $565 million by the year 2000. Tooling costs for suppliers remain
the same for 10,000 units or for 100,000 units. Till assemblers achieve volumes, it is not

profitable for suppliers to accept orders. Assemblers are thus forced to import
components. This pushes up costs and currently prices as well, which in turn affects sales
and growth. Maruti developed a quality vendor base over a period of 10 years. However,
new entrants can expect to develop a supplier base faster. The Indian auto component
industry has had some success in developing parts and components including collapsible
steering olumns, brake linings, power steering, catalytic converters and central locking
systems. Current
Technology up gradation is in plastics, trims, electronics, anti locking braking systems,
and environment and safety related items and materials. International supplier firms are
looking for Indian partners in a variety of areas. Thirteen new joint ventures were formed
in 1995, and much more technical collaboration are being finalized.
A large business delegation from CLEPA, the Liaison Committee for the European
Automotive Components and Equipment Industry, visited India in February 1996. Further
collaboration between Indian and European suppliers is likely to take place. Industry
analysts expect that products made by new joint ventures will not only serve the Indian
market, but would also be exported. Export focus is shifting from traditional markets in
Asia, the Middle East and Africa to North America, Europe and Australia.

Distribution Channels
The distribution environment for automobiles in India is quite different from that of most
advanced countries. Such differences exist in type and size of dealers, number of dealers,
car supermarkets, vertical integration, functions of dealer, bookings, financing,
manufacturer- dealer relationship, number of cars sold per dealer, margins, and market
environment. Having operated for years in a supply-constrained industry, most car
dealers in India would need to adjust to a situation where the customer has a wide choice.
In the current auto marketing system, the dealer orders cars in advance in a `push' system
driven by the automakers' agendas, and in turn the dealer has to bend the customer's
requirements to existing stock. The Typical Indian auto dealer has traditionally confined
his role to collecting payments from customers and supplying the car to the customer
after he receives it from the factory. However, with wider consumer options, auto

retailing in India is set to change. The new multinational companies are trying to
revolutionize the concepts of car delivery and after-sales service in India, and are coming
out with several innovative retailing ideas to win customers. Customers are demanding
more voice in the options they want and the cars they buy. This in turn will force dealers
to be more customer oriented. The emerging system of `customer pull' translates to
empowering the customer and creating a genuine symbiosis between the customer, the
dealer, and the automaker. Technology is playing a major, possibly revolutionary role in
this new thinking and is increasingly expressing the voice of the consumer. Dealers
would need to change to address the new market conditions. These factors would require
even better coordination between the manufacturer and the dealer. With greater
competition, the Indian car manufacturers and dealers are also likely to adopt advanced
country practices, like large dealer groups, multiple outlets per dealer, company-owned
dealers, higher sales per dealer, higher margin to dealers, changing role of the dealer as a
retailer, etc.

THE MARKETING QUESTIONS

Market Segmentation
The Indian automobile market is still in its evolutionary or early growth stage. Therefore,
no fixed or widely accepted method of segmenting the market has evolved as yet.
Segmentation has mostly been done on product types or price ranges. There has hardly
been any kind of segmentation on psychographics or behavioral parameters as seen in
developed car markets.

The segmentation provided in this paper is based on an

understanding of the current state of the industry.

These segments are quite different from the segments known in the US, European or
Japanese markets. The following four segments based on price and type of car have been
identified:
Off-road or utility vehicles e.g., Maruti Gypsy, Mahindra Armada, Tata Sumo.
Economy segment, comprising cars priced at less than $ 13,333, e.g., Ambassador,
Premier Padmini, Maruti 800.

Luxury segment, comprising cars in the $ 13,333 to $ 33,333 price bracket, e.g.,
Maruti Zen, Premier 118NE, Contessa, Maruti Esteem, Tata Sierra, Peugeot 309, Opel
Astra, Cielo, Ford Escort, VW Golf, Mitsubishi Lancer, Rover Montego.
Super-luxury segment, comprising cars priced at higher than $ 33,333, e.g., MercedesBenz, BMW, Audi.
There is a significant variation in demand in the four geographical regions of India. North
India is the largest market for cars in India currently with 43% market share. Next come
west with 27% and south with 22%. East has the lowest market share at 8%.

Positioning
The positioning of the brands in the Indian passenger car market can be understood from
the price-power map given in the next page. This map gives an idea of competition in
different segments. Since the Indian car market is in a state of flux, the positioning of
most companies in the consumer's mind appears to be confused. However, the companies
have developed mage-based positioning strategies for their brands. Some of them are :
Hindustan Motors (HM) - enduring, sturdy
General Motors Opel (GM) German engineering
Daewoo - Family car
Honda - superior after sale service
Peugeot - sound-free diesel engine
Ford Esteem - smooth drive
Ambassador car of HM is being mostly targeted for the taxi segment and for institutional
purchases like the Government. 40-45% of the taxi segment in the country and as much
as 55% of this segment in the South is accounted for by Ambassador cars. The Contessa
Classic is a luxury car and is primarily targeted at corporate sector clients. Only 10-15%
of the total purchases of Contessa is by individuals. Opel Astra, the 1995 Opel model, is
a leader in the European car market and the largest selling car in Europe. This model is
being produced in the GM India facility at Halol. Astra is positioned as a reliable family
sedan in the European market, which has been modified to suit the Indian market where
it is an up market vehicle given the underdeveloped market. Around 60 to 70% of Astra's
European market is in the taxicab segment and is regarded as the reliable second car for
a family. In contrast, the Opel Astra positioning in India is - " German engineered luxury
car with safety features unmatched by others".

Quality, Technology and R&D

With increased competition, established automobile manufacturers in India are becoming
more conscious about technology and quality. These companies are incorporating ISO
9000 certification and Total Quality Management as explicit corporate goals. R&D
expenditure in Maruti, Hindustan Motors, Premier Automobiles and Mahindra &
Mahindra, the four companies with over 95% of the market currently, is very low and in
1994-95, the combined budget of these four companies was $1 million or 0.38% of sales.
However, Telco has been building product development capabilities in trucks, light
commercial vehicles, and jeeps over the past fifteen years and has launched the Tata
Sumo and Sierra in the market. It has plans to increase exports of these models. Most of
the MNCs entering the Indian automobile market are bringing in modern technology.
Emission control techniques like catalytic

converters and injection technology are

present in most models. The fuel efficiency of these cars is higher than that of domestic
models. Foreign models are equipped with vehicle safety gadgets, which have never been
seen, in Indian cars. In fact, some brands in the luxury and super-luxury segments are
positioning hemselves on the basis of safety and engineering excellence. Some European
car manufacturers have

even expressed an interest in introducing technologies for

improving mobility, such as traffic management, planning and control to manage traffic
flow in metropolitan areas.

Infrastructure
The total length of roadways in India was estimated at 2,037,000 Km in 1990-91 by the
Economic Survey 1994-95. However only 49% is surfaced.

The National highway network was 34,058 km at the end of 1993-94, comprising less
than 2% of total road kilometers, but carrying nearly 40% of total road traffic. It is
estimated that road traffic which accounts for 80% passenger traffic and 60% of goods
traffic will account for 87% of passenger

COMPANY PROFILE:
Maruti Udyog Limited
Maruti Suzuki India Ltd

Type

Public (BSE MARUTI, NSE MARUTI)

Founded

1981

Headquarters

Gurgaon, Haryana, India

Key people

R
C
Bhargava,
Shinzo Nakanishi, Managing Director

Industry

Automotive

Products

Cars

Revenue

US$2.5 billion (2005)

Employees

6,903

Parent
Website

Chairman

Suzuki
www.marutisuzuki.com

Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea. It is the
one of most successful automobile company since its inception.The keys of the first
maruti car was handed over to Mr. Harpal Singh of Delhi by the then prime minister Mrs.
Indira Gandhi on 14th December, 1983.
Despite there being 11 companies now in the passenger car market in India, Maruti holds
about 60% of the total market share.

About Us

More than half the number of cars sold in India wear a Maruti Suzuki badge. We are a
subsidiary of Suzuki Motor Corporation Japan. We offer full range of cars- from entry
level Maruti 800 & Alto to stylish hatchback Swift, Wagon R, Estillo and sedans DZire,
SX4 and Sports Utility vehicle Grand Vitara.
Since inception, we have produced and sold over 7.5 million vehicles in India and
exported over 500,000 units to Europe and other countries.
Our turnover for the fiscal 2007-08 stood at Rs. 178603 Million, Yen 449 Billion,
$ 4.512 Billion * & Profit After Tax at Rs. 17308 Million.
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 motorise 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.

Profile

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader
in the car segment, both in terms of volume of vehicles sold and revenue earned. Until
recently, 18.28% of the company was owned by the Indian government, and 54.2% by
Suzuki of Japan. The Indian government held an initial public offering of 25% of the
company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to
Indian financial institutions. With this, Govt. of India no longer has stake in Maruti
Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983. Through 2004, Maruti has produced over 5 Million
vehicles. Marutis are sold in India and various several other countries, depending upon
export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold
by Suzuki in Pakistan and other South Asian countries.
The company annually exports more than 30,000 cars and has an extremely large
domestic market in India selling over 500,000 cars annually. Maruti 800, till 2004, was
the India's largest selling compact car ever since it was launched in 1983. More than a
million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the
sales charts.
Due to the large number of Maruti 800s 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, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has
been the leader of the Indian car market for over two decades.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of
New Delhi. Marutis Gurgaon facility has an installed capacity of 350,000 units per
annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly
plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual
capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a
combined capability to produce over 700,000 units annually.
More than half the cars sold in India are Maruti cars. The company is a subsidiary of
Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned
by the public and financial institutions. It is listed on the Bombay Stock Exchange and
National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti cars are on Indian roads since the first car was rolled out on
December 14, 1983.
Maruti Suzuki offers 10 models, ranging from the peoples car, Maruti 800, for less than
Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and luxury SUV, Grand
Vitara.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact
cars for three decades. Suzukis technical superiority lies in its ability to pack power and
performance into a compact, lightweight engine that is clean and fuel efficient.
Maruti is clearly an employer of choice for automotive engineers and young managers
from across the country. Nearly 75,000 people are employed directly by Maruti and its
partners.
The company vouches for customer satisfaction. For its sincere efforts it has been rated
(by customers)first in customer satisfaction among all car makers in India for seven years
in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner, to
make a peoples car for middle class India. Over the years, the product range has
widened, ownership has changed hands and the customer has evolved. What remains
unchanged, then and now, is Marutis mission to motorise India.
Our Network
To reach our customers, we have built a strong sales network of 600 outlets spread over
393 towns and cities. We provide maintenance support to customers through 2628
workshops spread over 1200 towns and cities.

Facility
We have two state-of-the-art manufacturing facilities in India. The first one is at Gurgaon
spread over 300 acres and the other at Manesar, spread over 600 acres in North India.
The Gurgaon facility Our facility in Guragoan houses three fully integrated plants. While
the three plants have a total installed capacity of 350,000 cars per year, several
productivity improvements or shop floor Kaizens over the years have enabled the
company to manufacture nearly 700,000 cars per year at the Gurgaon facilities.
The entire facility is equipped with more than 150 robots, out of which 71 have been
developed in-house. More than 50 per cent of our shop floor employees have been trained
in Japan.
The Manesar facility
Our Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti
Suzuki India Limited's (MSIL) global ambitions.
The plant was inaugurated in February 2007. The World Car derived from concept A-Star
would be manufactured here.
At present the plant rolls our World Strategic Models Swift & SX4 and DZire.The plant
has several in-built systems and mechanisms.
There is a high degree of automation and robotic control in the press shop, weld shop and
paint shop to carry on manufacturing work with acute precision and high quality.
The plant is designed to be flexible: diverse car models can be made here conveniently
owing to automatic tool changers, centralized weld control system and numerical control
machines that ensure high quality. The plant at Manesar is the company's fourth car
assembly plant and started with an initial capacity of 100,000 cars per year. This will be
scaled up to 300,000 cars per year by October 2008.

Diesel Engine Plant- Suzuki Powertrain India Limited

Suzuki Powertrain India Limited the diesel engine plant at Manesar is Suzuki & Maruti's
first and perhaps the only plant designed to produce world class diesel engine and
transmissions for cars.
The plant is under a joint venture company, called Suzuki Powertrain India Limited
(SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL. This facility has
an initial capacity to manufacture 100,000 diesel engines a year. This will be scaled up to
300,000 engines/annum by 2010
Vision and Core Values

We believe our core values drive us in every

endeavour
Sustainability
Sustainability at Maruti Suzuki refers to sum total of all the actions and initiatives
undertaken by the company for its long-term survival and growth.

To achieve long-term sustainability and prosperity the company has nurtured a socially
responsible behaviour towards its various stakeholders. Since inception, the company has
proactively taken care of the needs and sustainable growth of its stakeholders and they in
turn, have supported the company in achieving its vision and business results year after
year. As a result, sustainability has become an integral part of the company's approach to
business and decision making.
CSR Policy
"While working to enhance shareholder wealth, Maruti Suzuki will regularly engage with
all stakeholders to assess their needs and through its products, services, conduct and
management initiatives, promote their sustained growth and well - being"
Policy Guidelines
Company will follow responsible business practices in all its functions and operations
and will strive to implement them at its
suppliers, dealers and other business partners.
Company will continue to remain ahead of law in pursuit of environment protection and
energy conservation at its manufacturing
facilities, and in development of products that use fewer natural resources and are
environment friendly.
Company will be deeply committed towards the welfare of its employees, their families
and communities around its operations to
improve quality of life as a whole.
Company will develop products and services that fulfills the aspirations of customers,
build a strong and lasting bond with them,
proactively support them during natural calamities, delight them with after sales services
and availability of spares.
Company will continue to provide technological and managerial support to its suppliers
and dealers to further their profitable and

sustainable growth.
As an expression of thanks to the local community and the people of the country
Company will undertake initiatives that might not be
directly linked to its business.
Company will partner with government, NGOs, business partners to contribute
positively towards economic and human
development of the society especially underprivileged people.
Company will encourage and recognize its employees for volunteering in the community
in the spirit of serving and sharing their
expertise and skills.
Company will strive to constantly build organizational capabilities, like any other
competency, position suitable people and have a
proper organizational structure to ensure implementation of CSR policy, guidelines and
programs.
Company will engage with reputed external agencies for audit of its CSR activities for
the purpose of identifying areas of
improvement, authenticity of data and reporting.
Company will monitor the progress on various CSR programs in a structured manner,
document the performance against the set
targets and publish a report every year on its CSR performance and share with its key
stakeholders.

Our Stake Holder

Our Customers

The aspiration to give more for less to the customers has given the company a
competitive edge in competitive times. The VA-VE initiatives (Value Analysis & Value
Engineering) pursued aggressively by the company in partnership with suppliers have
helped the company reduce cost of making a car without compromising on quality.
A wide and deep service network spread across the country has helped the company reach
customers not only in metro cities but also in semi-urban, tier-2 and tier-3 cities. In
addition, the company introduced many new initiatives such as car pick & drop facility
by service workshops for women car owners, Maruti Mobile Support to offer door step
car servicing, Express service bays, special bays that can offer maintenance service in
less than 2 hours, and so on.
The company has a stringent customer complaint monitoring system.
Our Partners- Suppliers
In manufacturing where a sizeable percentage of inputs are bought from vendors and
suppliers, the ability to continuously improve quality and reduce costs is directly
dependent on vendors doing the same.
In light of this statement, the company guides suppliers in adopting latest technologies,
and transfers its best practices in the areas of productivity improvement, quality
enhancement and cost reduction.
The company has set up Maruti Centre for Excellence (MACE) in collaboration with
some of its suppliers to achieve these objectives. With the help of MACE, now the
company is assisting its direct suppliers in upgrading their sub-suppliers or (Tier-2
suppliers).Our Partners- Dealers
The company has been passionately building its sales and service network since its
inception.
The company has set up 16 Regional Training Centres across the country to continuously
upgrade skills of dealer employees as per new technologies and customers' requirements.

In recent years, the company has conducted a comprehensive national survey of its dealer
employees to gauge their level of satisfaction. By many accounts, this is a rare initiative
by any principal company. Based on the results of the survey, the company formed a
cross functional team of senior management from sales, network development and HR to
identify an action plan to improve satisfaction levels of dealer employees. One of the
initiatives, for instance, was providing car loans at low rates of interest for good
performers with repayment guarantee provided by the dealer.
Employees
The company has enforced highly conducive working environment for its employees.
MSIL does not support favouritism in recruitment, promotion, providing compensation,
or termination based on caste, religion, gender or age. The company offers equal
opportunity for growth to all employees.
During the year, the company finalised its policy on affirmative action as per the
guidelines laid down by Confederation of Indian Industries.Safety Policy
Giving high priority to work place safety, Maruti Suzuki firmly believes that a plant
designed to be safe is far more productive than otherwise. In light of this fact, the car
giant has undertaken concerted initiatives to eliminate work place mishaps, over the last
25 years.
One of the most exciting exercise of this annual drive is that the employees themselves
identify areas, activities and operations that could be unsafe or hazardous. Named as
'KYT', the end result of the exercise is that the employee suggests measures that are
appropriate to make the work place hazard free. The company has a vigilant policy in
place that monitors issues of work place safety on a weekly basis.
Community Initiatives

The company works closely with local communities around its manufacturing facilities to
improve their quality of life. The company has adopted four villages surrounding its
Manesar plant, i.e. Kasan, Dhana, Alihar and Baas Kusla and launched sustainable
livelihood programmes for unprivileged communities. The initiatives are focused on four
key areas: Health, Education, Employment Generation through Vocational Trainings &
Basic Infrastructure Development.

3.1 Data Analysis & Interpretation

Q-1) Do you have Car?

Response

No. Of Respondent

Percentage

Yes

50

33.30%

No

100

66.67%
Table 3.1.1

Title 1-Total person car holder vs. not having car

120
100
80

100

60
40

50

20
0
Yes

INTERPRETATION
1. 33% of the respondents are car holder.
2. 67% of the respondents are none holding the car.

Q2.) Are you planning to purchase entry segment car?

No

Response (who havent Car)

No. Of Respondent

Percentage

Yes

80

No

20

80%
20%

Table 3.1.2(a)
Response (who have car)

No. Of Respondent

Percentage

Yes

15

30%
70%

No

35
Table 3.1.2(b)

Title2-Prospective Buyer of Entry Segment Car

90
80
70
60
50
40
30
20
10
0

80

15

35

Yes(have car)

No(have car)

20
Yes

No

INTERPRETATION
1. 80% of the respondents who doesnt have car planning to purchase entry segment
car.
2. 20% respondents (who doesnt have car) say its out of budget.
3. 30% respondents planning to purchase entry segment car beside they have already
a car.
Q-3) what would be the time frame for purchase?

Response

No. Of Respondent

Percentage

With in a month

5.26%

After 3 month

10

10.53%

After 6 month

30

31.58%

Next year

50

52.63%

Table 3.1.3

Title 3-Purchase time frame for prospective buyers

60
50
50

40
30
20
10

10

30

0
With in a
month

After 3 month After 6 month

Next year

INTERPRETATION
1. All most 5% respondents are making plan to purchase a car with in a month.
2. Near about 11% respondents are making plan to purchase a car after 3 months.
3. 32% of the respondents are making plan to purchase a car after 6 months.
4. Remaining are not sure they postponed there decision for next year.

Q4. Which factor was found to be the most influential in purchasing a particular
Model?

Features

No of respondents

Percentage

Mileage

45

30%

Features/Looks

33

22%

Price

24

16%

Pick up

15

10%

Advertisement

12

8%

Friends

21

14%

Table 3.1.4
Title 4-Influential in Purchasing Model

up
Ad
ve
r ti
se
m
en
t

14

4
Fr
ie
nd
s

24

Pi
ck

Fe
at
ur
es
/L
oo
ks

33

Pr
ic
e

45

ile
ag
e

16
14
12
10
8
6
4
2
0

INTERPRETATION
1. 30% looks for mileage at the time of purchase of car.
2. 22% looks for Features at the time of purchase of car.
3. 16% looks for price at the time of purchase of car.
4. 10% looks for pick up at the time of purchase of car.
5. 8% respondents are influence through Ad. For buying a car while 14% says
friends recommendation play a vital role on there buying decisions.
Q5.What kind of look appealed most to respondents?

Features

No. Of respondents

Percentage

Rugged look

30

20%

Sleek look

51

34%

Sober look

45

30%

Flamboyant look

24

16%

Table 3.1.5
Title 5-Look Appealed Most Respondent

No. Of respondents
60
50
40
30
20
10
0

51

45

30
Rugged look

24
Sleek look

Sober look

Flamboyant
look

INTERPRETATION
20% respondents impressed with the rugged look of the car, 34% respondents like sleek
look of the car, 30% respondents prefer sober look and remaining are look for
Flamboyant look

Q6. Which was the most preferred colour for the motorcar among the respondents?

Features

No. Of Respondents

Percentage

Blue

24

16%

Black

60

40%

Red

36

24%

Sliver

21

14%

Other

6%

Table 1.3.6
Title 6-Most Preferred Co lour For Motor Car

70
60
60

50
40
30
20
10

36
24

21

Sliver

Other

0
Blue

Black

Red

INTERPRETATION
56% respondents prefer blue or black colour while 24 [refer red colour reaming go for
either sliver or unique colour.

Q7. Is the Finance for Motor easily available?

Response

No. Of respondents

Percentage

Yes

85

56.67%

No

65

43.33%

Table 1.3.7

Title 7-Aviblaty of Finance for Motor Car

90
80
70
60
50
40
30
20
10
0

85
65

Yes

No

INTERPRETATION
56% respondents say that finance for motor vehicle is easily available while 44% deny it.

Q8. Do you feel that if consumers get the financial help (C.D.L. - car loan) will affect
the attitude the behavior of consumer?

Response

No. Of Respondents

Percentage

Yes

85

56.67%

No

65

43.33%

Table 1.3.8

TILE 8-Consumer Buying Attitude after C.D.L

90
80
70
60
50
40
30
20
10
0

85
65

Yes

No

INTERPRETATION
57% respondents feel if they get loaning facility more easily they will defiantly purchase
a car while 43% says its doesnt matter.

Q9. Do you think that distributing channel plays important role in affecting the
Attitude behavior of consumers?

Response

No. Of Respondents

Percentage

Yes

123

82%

No

27

18%

Table 1.3.9

Title 8-Distribution Channel Is Affecting The Attitude Behavior

140
120
100

123

80
60
40
20
0

27
No

Yes
INTERPRETATION

82% respondents says service of distributors are also effect their buying behavior while
18% says its not a big issue.

Q10. Do you feel advertising affect the buying behavior & attitude of consumers?
Response
Yes

No. Of Respondents

Percentage

135

90%

No

15

10%

Table 1.3.10

TITLE 9-Advertising Affect The Buying Behavior And Attitude

160
140
120
100
80
60
40
20
0

135

15
Yes

No

INTERPRETATION
90% respondents says advertising affect the buying behavior of consumer while 10%
deny.

Summary of Findings
Almost one-third respondent doesnt have car.
80% respondent who hasnt car planning to purchase the entry segment car while

30% respondent who already possess a car planning to purchase entry segment
car.
30% of the respondents said that they consider mileage as a factor, 22% of the
Respondents consider features\looks, 16% consider price, and while14% take the
opinion of their friends.
34% of the respondents preferred sleek look, 30% of the respondents Preferred
sober look, 20%of the respondents are rugged look and rest of Them are
flamboyant look.
40% of the respondents preferred black in colour, 24% of the respondents
preferred red in colour, 16% of the respondents like blue in colour, 14% of the
Respondents silver and rest of them are others.
Almost 57% says that finance facilities for purchasing the car is easily available
while 43% den this.
If there will be a easy going finance facility near about 57% respondents are ready
to buy car.
Most of the respondent said that the distribution channel plays important role in
Affecting the attitude behavior consumers.82% of the respondents said
distribution channel plays an important Role in affecting the attitude and
behaviors of consumers and 18% says No.
During my research of this project what I observe and what I get through questioner is:
Mostly those people who are belonging to more than 15,000/- P.m. income group
are thinking to purchase a car. And the major factor which influence them to buy a
car are:
1. Status symbol
2. Car is convenient for family when members are more than 2 or 3.

3. During rainy season or during very cold bike is not to good that why they
want to use it for daily routine during that season.
4. Availability of finance.
Mostly those people who hold the bike more than 100 c.c. are planning to
purchase Entry segment car.
The bike holder who are planning to buy a car directly affected by car price.
Means pricing and mileage is vital issue for them afterward they think about look
and other extra quality. Coz they look for car only as a substitute of bike with
cover body not for their luxuries.
Almost prospective buyer of entry segment car are awaiting for a good and easily
available finance means if they get proper finance facility to buy a car they will
easily convert to became customer.
One of the major reasons for non-purchasing a entry segment car is customer
thought in current position he is not able to afford after sale services and expenses
on fuel. So if company convince the customer that the spare parts and services are
not too coastally its sure that sale will close very easily and soon.
Some customers who already hold an entry segment car are also looking for new
model with some advance facilities and securities. And half of them look for
another company for the same otherwise half wants it only in his present car
company.
And in last my opinion is The customer was aware of the product which are produced by
company by seeing the adv in the TV, banners, road shows, etc. and by the customer has
to choose which product they will buy because the adv can show the merits and demerits

of each product. By this the customer will have the knowledge of the product and can
take the decisions of his own to select the products, which will be the best for the use for
him.

4.1 Conclusion
The market of Entry Segment four-wheeler is a booming and unstoppable market. It
represents that the in mileage, look and more stylish pattern the people prefer the cars and
they are Very influenced by these all things. It represents that the car are easily available
in all cities. Again Maruti Udyog Ltd. got the highest points because of little extra quality.
And because of the high manufacture of the cars its available on the spot. The next point
that plays a major role in the entry segment four-wheeler sector is that loaning and low
price with good mileage, availability of the spares and facilities for after sale service. And
distribution channel for buying behavior and attitude of the customers.

4.2 Recommendations

1. Company should be highly innovative product to meet the demand of the market
and to achieve a good market position. The reason can be that this market is
changing according to the demand of the modern consumers.
2. Company should look according to the global world. Now the Indian market
Is coming with the new and modern technology, by which the better service
Can be provided to the customer because the customer is the king.
3. The company should emphasis on the advertisement and policies, to attract
Their customer and can increase their sales.
4. The companies should emphasis on the cars with greater mileage to serve to the
majority of the segments.
5. 40% of the respondents preferred black in colour, 34% of the respondents
preferred luxury looks. So the companies should manufacture cars with the
preferred attribute according to the needs of the potential consumers.
6. Companies like Hyundai, GM and other should work on their channel of
distribution and the product availability as consumers of maruti have responded
that the Maruti cars are easily available. So it is my suggestion that other
companies should work on it.

Bibliography
1: Kotler Philip Marketing Management (Third Edition 2003.)
2: Kothari R.C. Research Methodology New Delhi. 1999.
3- Website:

- WWW. GOOGLE. COM.

FORMAT OF THE QUESTIONNAIRE

DEMOGRAPHIC-CAPSULE:

Name:

Address:

Phone No.

OCCUPATIONA) Govt./Public Sector

B) Pvt. Ltd. Company

C) Partnership

D) Trader

E) Manufacture

F) Doctor

G) Lawyer

H) CA

I) Contractor

J) Hotelier

K) Farmer

L) Proper Ship

M) Engineer

N) Architect

O) Professor

P) Teacher
MONTHLY HOUSEHOLD INCOME:
A) Upto Rs. 10,000/B) Rs. 10,000/- to 15,000/C) Rs. 15,000/- to 25,000/D) More than Rs. 25,000/EDUCATION:
A) Below Senior Secondary education
B) Senior Secondary Education but not Graduate
C) Graduate/Post Graduate
D) Professional
VEHICLE OWNED:
A) Car

B) Two Wheeler

ANNEXURE
Q-1) Do you have Car?
Yes

No

Q2.) Are you planning to purchase entry segment car?

Yes

No

Q-3) what would be the time frame for purchase?

With in a month

( )

After 3 month

After 6 month

Next year

Q4.) Which factors is more influencer in purchasing the Car?

Features/looks

Mileage

Price

Pickup

Advertisements

Friends

Q5.) Characteristic of Motor Car which apple most to you?

Rugged looks

Sleek looks

Sober looks

Flamboyant look

Q6.) Which color of Cars do you prefer most?

Blue

Black

Red

Sliver

Others

Q7.) Is the Finance for Motor easily available?

Yes

No

Q8.) Do you feel that if consumers get the financial helps (C.D.L. - car loan) will
affect the attitude the behavior of consumers?
Yes

No

Q9.) Do you feel that distribution channel plays important roles in effecting the
attitude the behavior of consumers?
Yes

No

Q10.) Do you feel advertising affect the buying behavior and attitude of consumers?
Yes

No

APPENDIX

CHAPTER-1
INTRODUCTION
TO
PROJECT

CHAPTER-2
THEORITICAL
BACKGROUND

CHAPTER-3
DATA ANALYSIS
AND
FINDINGS

CHAPTER 4
CONCLUSION
&
RECOMMENDATION

BIBLIOGRAPY