http://www.scribd.

com/doc/21555444/Project-on-Maruti-Suzuki

ACKNOWLEDGEMENT

Many talented people have contributed to the successful completion of this work and I would like to extend a word of thanks and appreciation to all of them. First, I take this opportunity to acknowledge my institution WLC College Sainik Farms New Delhi. Where I am pursuing my Post graduate diploma in business economics. Second, I empress my thanks to Dr. Amit Nagpal, Our H.O.D Business, for his guidance, support and encouragement which helped me in completing my project. Above all, I would like to thank the Almighty God without whom this work could never have been completed.

Sharib Kausar ACL I

CONTENTS

1. INTRODUCTION

2 . P U R P OS E OF R E S E A R CH S T U D Y

-RESEARCH STUDY -SCOPE OF THE STUDY

3 . R E S E A R CH M E T H O D O L OG Y

-TOOLS OF RESEARCH -RESOURCE OF DATA

4. RECOMMENDATIONS, FINDINGS AND LIMATATIONS5 . 5. CONCLUSION 6. BIBLIOGRAPHY

INTRODUCTION

ORGANIZATION OVERVIEW Maruti Udyog Limited (MUL) was established in Feb 1 9 8 1 through an Act of Parliament, to meet the growing demand of a p e r s o n a l mo de o f tr a ns po r t c a us ed b y t h e l a c k o f a n ef f i ci e nt public transport system. S u zu ki M o to r Co m p a ny w a s c ho s e n f r o m s ev en pr o s p ec ti v e partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively b r i n g t o M U L contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now Suzuk iMotor Corporation of Japan) in Oct 1982.The objectives of MUL then were: M o d e r n i z a t i o n o f t h e I n d i a n A u t o m o b i l e Industry. Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth.

Our Vision

Production /R & D

Spread over a sprawling 297 acres with 3 fully i n t e g r a t e d production facilities, the Maruti Udyog Plant has already rolled o u t o v e r 4 . 3 m i l l i o n v e h i c l e s . I n f a c t , o n a n a v e r a g e , t w o vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to make a car. More importantly, with an incredible range of 11 models available in 50 variants, there's a M a r uti S u z uki ma d e h e r e to f i t ev er y ca r - bu y er ' s b u d g e t. A nd dream.

PRODUCTION MILESTONES

1st vehicle produced, December 1983

1,00,000 vehicles produced by August, 1986

5,00,000 vehicles produced by June, 1990

1st vehicle produced, December 1983

1,00,000 vehicles produced by August, 1986

5,00,000 vehicles produced by June, 1990

10,00,000 vehicles produced by March, 1994

15,00,000 vehicles produced by April, 1996

20,00,000 vehicles produced by October, 1997 25,00,000 vehicles produced by March, 1999

30,00,000 vehicles produced by June, 2000

35,00,000 vehicles produced by December 2001

40,00,000 vehicles produced by April, 2003

45,00,000 vehicles produced by April, 2004.

MILESTONES

2005

The fiftieth lakh car rolls out in April, 2005 Growth in overall sales by 15.8%

2004

New (non A/C) variant of Alto

Alto becomes India's new best selling car

LPG variant of 'Omni Cargo'

Versa 5-seater, a new variant

Baleno LXi, a new variant

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

2003

New Suzuki Grand Vitara XL-7

Redesigned and all-new Zen

New upgraded WagonR

Enters into partnership with State Bank of India

Production of 4 millionth vehicle. Listed on BSE and NSE after apublic issue oversubscribed 10 times

2002

WagonR Pride

Esteem Diesel. All other variants upgraded

Maruti Insurance. Two new subsidiaries started:

M a r u t i Insurance Distributor Services and Maruti Insurance Brokers Limited

Alto Spin LXi, with electronic power steering.

2001

Zen LXi

Maruti True Value launched in Bangalore and Delhi

Maruti Versa, Indias first luxury MPV

Alto Spin LXi, with electronic power steering

Alto Vxi

Customer information centers launched in Hyderabad, Bangalore and Chennai

Launch of versa.

2000

First car company in India to launch a Call Center New Alto Altura, a luxury estate car IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits.

1999

Maruti 800 EX ( 796cc, hatchback car) Zen LX (993cc, hatchback car)

 Zen VXi (993cc, hatchback car with power steering) Omni XL ( 796cc, MUV, high roof) Baleno (1600cc, 3 Box Car) Wagon R Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives

1998

Maruti launches website as part of CRM initiatives Zen D (1527 cc diesel, hatchback car) Zen VX & Zen VX Automatic New (Omni & Omni E) (796cc, MUV) Launch of website as part of CRM initiatives

1997

Esteem (1299cc, 3 box car) LX, VX and AX. New Maruti 800 (796cc,hatchback Car) Standard and Deluxe P r o d u ce d t he 2 m i l l i o nt h v eh i cl e s i n ce t he co mme n c em e nt o f production.

1996

Gypsy (E) (970cc, 4WD 8 seater) Omni (E) (796cc, MUV, 8 seater) Gypsy King (1298cc, 4WD, off road vehicle) Zen Automatic (993cc, hatchback car) Esteem 1.3L (1298 cc, 3 box Car)AX Launch of 24-hour emergency on-road vehicle service

1995

Esteem 1.3L (1298 cc, 3 box car)VX With the launch of second plant, installed capacity reached 200,000 units

1994

Esteem1.3L (1298cc, 3 box car)LX Produced the 1 millionth vehicle since the commencement of production

1993 Z e n ( 9 9 3 c c , h a t c h b a c k C a r ) , w h i c h w a s l a t e r exported in Europe and elsewhere as the Alto

1992

SMC increases its stake in Maruti to 50 percent

1991

Reaches cumulative indigenization of 65 percent for all vehicles produced

1990

Maruti 1000(970cc, 3 box), Indias first contemporary sedan

1988

Installed capacity increased to 100,000 units

1987

Exported first lot of 500 cars to Hungary.

1986 Maruti 800 ( New Model-796cc, hatchback Car) Produced 100,000 vehicles (cumulative production)

1985

Launch of Maruti Gypsy (970cc, 4WD off-road vehicle) 1984 Omni, a 796cc MUV

1983

Maruti 800, a 796 cc hatchback, Indias first affordable car. Production was started under JVA

1982

 L i c e ns e a n d JV a g r ee me n t s i g n ed b e tw e en M a r u ti U d y o g Ltd. and SMC of Japan

1981

Maruti Udyog Ltd was incorporated under the provisions of the Indian Companies Act, 1956

AWARDS

2005 N um b er o ne i n JD Po w e r S S I f o r th e s e co nd co ns ec u ti v e year Number one in JD Power CSI for the sixth time in a row - theonly car to win it so many times M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study. Leadership in the JD Power Initial Quality Study A l t o number one in its segment for the 2nd time in a row, Esteem number

one in its segment for the 3rd year in a row, Swift number one in the premium compact segment W a g o nR a n d E s tee m to p t he i r s e g m e n ts i n t h e JD P o w er APEAL study TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05 M a r uti b a g g e d t he " M a n uf a c t ur e r o f th e y ea r " a w a r d f r o m AutocarCNBC (2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respectedcompanies in IndiaOct 04 Maruti ranked among top ten (Rank7) greenest companies inIndia by Business Today - Sep '04 2004

M a r uti S u z uki w a s N o . 1 i n C us to m er a t i s f a c ti o n, N o . 1 i n S a l es S a ti s f a c ti o n N o . 1 i n Pr o d u ct Q ua l i t y ( E s te em a n d A l to ) a n d N o . 1 i n Product Appeal (Esteem and Wagon R) No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most respectedcompanies Business World ranked us the country's most respected automobilecompany Voted Manufacturer of the year by CNBC Voted one of India's Greenest Companies by Business Today -AC Nielson ORG-MARG. 2003 Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10a u t o mo ti v e br a n ds i n " M o s t T r u s te d B r a n d s ur v e y 2 0 03 " J D P o w er ranked 3 models of Maruti on top: Wagonr, Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (2001) for 4th time in a row 2001

 M U L to p s i n J D P o w er CS I (2 0 01 ) f o r 2 nd ti me i n a r o w : a no t her international first 2000 Maruti bags JD Power CSI - 1st rank; unique achievement b y market leader anywhere in the world 1999 MSM launched as model workshop in India; achieves highest CSI rating. Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee 1998 CII's Business Excellence Award

1996 Maruti wins INSSAN award for "Excellence in Suggestion Scheme" Awarded the Star Trading House status by Ministry of Commerce 1994-95

 Engineering Exports Promotion Council's award f o r e x p o r t performance 1994 Best Canteen award among Haryana Industries as part of employeewelfare 1992-93 Engineering Exports Promotion Council's award f o r e x p o r t performance.

Engineering Exports Promotion Council's award f o r e x p o r t performance.

Quality Service by MARUTI SUZUKI

Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India For a Ninth Consecutive Year In SINGAPORE on 20 October 2008 - For a ninth consecutive year, Maruti Suzuki ranks highest in customer satisfaction with authorized dealer service in India, according to the J.D. Power Asia Pacific 2008 India Customer Service Index (CSI) StudySM released today. The study, now in its 12th year, measures satisfaction among vehicle owners who visited their authorized dealership service center for maintenance or repair work during the first 12 to 18 months of ownership, which typically represents the warranty period.

Overall satisfaction is determined by examining seven measures (listed in order of importance): problems experienced; service quality; user-friendly service; service advisor; service initiation; service delivery; and in-service experience. Maruti Suzuki achieves an overall CSI score of 820 on a 1,000-point scale. Overall customer satisfaction with dealer service for the industry improves slightly in 2008-up by 3 points since 2007, with six of the 11 ranked brands demonstrating gains. While ranking below the industry average, Tata and Mahindra emerge as the most improved brands, respectively, particularly in the areas of service initiation, quality of service advisors and in-service experience. "Maruti Suzuki has effectively implemented simple procedures that improve satisfaction with the value of work performed and perceptions of the fairness and honesty of the dealer, such as greeting service customers quickly upon arrival and fully explaining charges and repairs," said Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore. "Instituting these low-effort, yet high-impact practices helps to foster trust among customers, which is critical to building loyalty for future service and sales opportunities." The study finds that the proportion of vehicles brought in and serviced within the same day has increased to 55 percent this year from 49 percent in 2007. Quick completion of service is a key source of customer delight, particularly for customers who visit the dealer for routine maintenance. "Quick service turnaround induces a feeling of convenience and comfort for customers, especially as life styles become more fast paced," said Arora. "Dealers that provide expedient service not only delight their customers but also benefit from greater dealership profitability as a result of high levels of asset utilization." The study also finds that customer-reported costs of operation for petrol-powered vehicles have risen by seven percent since 2007, primarily due to rising fuel costs. In contrast, owners of diesel-powered vehicles report a minimal increase in operating

costs in 2008, compared with 2007. The overall cost of vehicle operation is an aggregation of three components: fuel; repair and maintenance; and tire expenses. "Consumers in India have traditionally exhibited higher sensitivity to the costs of vehicle operation, compared with consumers in other international markets," said Arora. "In India, customer intent to recommend a model or repurchase a make is strongly influenced by satisfaction with vehicle operating costs." The study finds that overall advocacy rates have declined, with 77 percent of owners in 2008 reporting that they "definitely would" recommend their vehicle make, compared with 82 percent in 2007. Customer loyalty rates have remained stable from 2007, with 64 percent of owners in 2008 saying they "definitely would" repurchase their vehicle make, compared with 63 percent in 2007. However, the study also finds that rates of advocacy and loyalty are much higher among highly satisfied customers (those with satisfaction scores averaging above 867) than among customers with lower levels of satisfaction. Approximately 94 percent of highly satisfied customers say they "definitely would" recommend their vehicle make, and 84 percent report they "definitely would" repurchase their vehicle make. In contrast, among customers with the lowest levels of satisfaction (averaging below 709), only 55 percent of customers "definitely would" recommend, and only 43 percent report that they "definitely would" repurchase their current vehicle make. The 2008 India Customer Satisfaction Index (CSI) study is based on responses from more than 5,594 owners of nearly 41 different vehicle models. The study was fielded from May to August 2008 and includes customers who serviced their vehicles at authorized service facilities between November 2006 and August 2007. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion.

Low Cost of Ownership

There are many cars running on roads but Maruti Suzuki cars have the lowest cost of ownership. Till date, there are no car models below the price range that Maruti offers. Maruti Suzuki Zen, Maruti 800, Maruti Suzuki Alto, and Maruti Suzuki Omni have the lowest price tags in their respective car segments. Cost of ownership also includes the cost of operation that is the lowest among Maruti cars including the Maruti 800, Alto, Zen, Omni and Wagon R.

Low Cost of Maintenance The acquisition cost is not the only cost associated with a car purchase. A car that is cheap may not necessarily be low in maintenance but fortunately Maruti cars hold lower acquisition cost. Apart from being the lowest price cars, Maruti cars are also the best in maintenance. The entire range of Maruti cars have lower cost of maintenance with cheap availability of spare parts and lower running cost. In a survey, J.D. Power Vehicle Dependability 2008, Maruti car models rank highest in two premium compact and entry midsized. Maruti Suzuki Swifts scores first rank in premium compact car and Maruti Suzuki Esteem the first in entry midsized. Lower cost of maintenance is one such segment where Maruti cars always shine.

MARUTI CULTURE

Our employees are our greatest strength and asset. It is this underlyingphilosophy that has moulded our workforce into a team with commong o a l s a n d o b j e c t i v e s . O u r E m p l o y e e - M a n a g e m e n t r e l a t i o n s h i p i s therefore characterized by:

 Participative Management. Team work & Kaizen. Communication and information sharing. Open office culture for easy accessibility To implement this philosophy, we have taken several measures like a flat organizational structure. There are only t h r e e l e v e l s o f responsibilities ranging from the Board Of Directors, Division Heads to D ep a r t me n t H e a d s . O t h er v i s i b l e f ea t ur es o f t hi s p h i l o s o p hy a r e a n open office, common uniforms (at all levels), and a common canteen for all. T hi s s tr u ct ur e e ns ur es b e tt er c o mm u ni ca ti o n a n d s p e ed y d e ci s i o n m a k i n g pr o ces s es . It a l s o c r ea tes a n e nv i r o n me nt t ha t b ui l d s t r u s t , transparency and a sense of belonging amongst employees. PURPOSE OF RESEARCH STUDY

1. RESEARCH STUDY 2. SCOPE OF THE STUDY T o s t u dy a n d u n de r s t a nd v a r i o us a s p e cts o f C us to m er r el a ti o ns hi p management at MARUTI SUZUKI. SCOPE OF THE STUDY This study extends its emphasis on studying v a r i o u s economic , social , geographical and political aspects of trade relations between India and the gulf countries. It further extends to suggest possible measures and steps t o f ur th er s tr e n g t h en t he tr a d e s t r u c t ur e b etw e en I n di a a nd t h e gulf countries.

1. Maruti &CRM o Maruti created a land-mark in CRM by launching a website for the customers in the year 1998

Maruti is investing a lot of money and effort in building customer loyalty programmes. 2. Maruti Auto Card o Auto Card brings the customer all the advantages of an international credit card in addition to bringing the customer an opportunity of earning valuable Auto points for his next Maruti car. o A product my Maruti Suzuki In collaboration with Citibank AND Indian Oil Corporation, launched on Apr 19 2006 in 36 cities acrss India for new as well as existing Customers of Maruti Car. o It is called Loyalty-cum Reward Program in order to: o Retain old and make new customers o Provide special privileges and benefits o Sell Mruti accessories, finance, insurance o Crate edge over competitors o Provides Rewards at o Maruti Suzuki dealers and at workshops o Purchase of lubricant and fuel at IOC o Shopping/entertainment through Autocard o Value of 1 Auto Point earned: re.1.00/3. Maruti True Value Outlet o Maruti has aided customers by providing them the facility to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return. This helps them retain the customer. 4. Maruti Call Center o The company was the first car company in India to launch a call center in year 2000. o Maruti has proper customer complain handling cell under the CRM dept. The CIC will help MUL rapidly build an information pool of over 3 million Maruti owners as well as that of its prospective customers 5. Express Service Bays & 2- Technicians Bays o As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2-Technicians Bays o These are done for customers who are hard pressed for time.
o

Both the initiatives undertaken in this direction have helped improve customer interface and also helped increase the productivity and capacity of existing workshops. 6. Mega Camps o The company aggressively conducts Mega Camps throughout the company round the year. o Activities undertaken during a mega camp include complimentary car wash, AC and Pollution check, oil and fuel top ups, Wheel alignments etc. o PUC and general camps, locality camps, pre monsoon camps etc are also regularly conducted as part of customer connect initiatives. 7. Maruti On Road Services o The MOS ensures: o Round-the-clock services in most of the cities o A computerized call-monitoring system dispatches a mobile MOS van to the customer at the earliest o All MOS vans are managed by qualified Maruti Authorized Dealers / MASS technicians who are trained by Maruti in problem diagnosis o The customer are charged only Rs.100 on labor and spares 8. N2N o Marutis N2N Fleet Management Solutions for companies, takes care of the A-Z of automobile problems. Services include end-to-end backups/solutions across the vehicles life: Leasing, Maintenance, Convenience services and Remarketing. 9. Market Research Department o Their Market Research department remains on its toes to study the changing consumer behaviour and market needs. Maruti enjoys 70%repeat buyers which further bolsters their claim of being customer friendly 10.Car Safety Device: Immobilizer o The company used technology to meet customer needs and even delight them. Following the feedback that the companys cars were more prone to theft owing to their resale value, the company worked on an anti-theft immobilizer or I-Cats system for all its new cars. 11.Complete Car Needs o The companys effort of providing all Car related needs from learning to drive a Maruti Driving School to Car Insurance, Extended Warranty and eventually exchanging the existing car for a new one---under one roof at dealerships also enhances customer satisfaction.
o

12.Availability of easy finance o Maruti has also made the customer experience hassle free and helped building customer satisfaction by developing different revenue streams in the form of Maruti Insurance and Maruti Finance. 13.Car Pick up and Delivery facility for Women Owners o After a survey it was found out that vehicle pick up and delivery before and after service has a strong impact on customer satisfaction . o In particular, customers who say that their vehicle was picked up from doorstep before service and delivered to same point after service are more delighted with their after sales service experience, compared to others who do not receive it. 14.Service at Doorstep through Maruti Mobile Support o Another unique initiative is door step service facility through Maruti Mobile Support. o Maruti Mobile support is first of its kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban / rural areas where setting up a new workshop is not viable. 15.Dil Se o Dil Se, a special program for Indians living abroad or NRIs, to facilitate them to gift Maruti Cars Online to friends and relatives at home. o Swift Life. this is a online club for Swift Owners. 16.Other advantages which help in CRM. o A Buying Experience Like No Other o Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car. o Quality Service Across 1036 Cities o In the J.D. Power CSI Study Maruti Suzuki scored the highest across all 7 parameters: o 1.least problems experienced with vehicle serviced, o 2.highest service quality, o 3. best in-service experience, 17. o 4.best service delivery, o 5.best service advisor experience, o 6. most user-friendly service and o 7.best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

ANALYTICAL CRM

In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to segment customers or to identify potential toe n h a n c e c l i e n t r e l a t i o n s h i p . C u st o me r a n a l ys i s t yp i c a l l y l e a d s t o targeted campaigns to increase share of customer's wallet. Examples of Campaigns directed towards customers are: Acquisition: Cross-sell, up-sell R e t e n t i o n : R e t a in i n g c u s t o me r s wh o l e a v e d u e t o ma t u r i t y o r attrition. Information: Providing timely and regular i n f o r m a t i o n t o customers about Maruti. M o d i f i c a t i o n : Alt e r i n g d e t a i l s o f t h e t r a n s a c t i o n a l n a t u r e o f t h e customers' relationship.Analysis typically covers but is not limited to: Decision support: Dashboards, reporting, metrics, performanceetc. Predictive modelling of customer attributes Strategy and research.

PURPOSE OF RESEARCH STUDY -RESEARCH STUDY

T o s t u d y a n d u n de r s t a n d v a r i o u s a s p e c t s o f C u s t o me r relationship management at MARUTI SUZUKI.

FUNCTIONAL COMPONENTS OF CRMARCHITECTURE FOR ENTERPRISE MARKETINGAUTOMATION:

RECOMMENDATIONS ANDCONCLUSION P r o v i d e a u s e r - f r i e n d l y me c h a n i s m f o r r e g i s t e r i n g c u s t o me r complaints (complaints that are not registered with the companyc a n n o t b e r e s o l v e d , a n d a r e a m a j o r s o u r c e o f c u s t o m e r dissatisfaction). Provide a fast mechanism for handling problems and complaints( c o mp l a i n t s t h a t a r e r e s o l v e d q u i c k l y c a n i n c r e a s e c u s t o m e r satisfaction). P r o v i d e a f a s t me c h a n i s m f o r c o r r e c t i n g s e r v i c e d e f i c i e n c i e s ( c o r r e c t t h e p r o b l e m b e f o r e o t h e r c u s to me r s e x p e r i e n c e t h e same dissatisfaction). Use internet cookies to track customer interests and personalizeproduct offerings accordingly. U s e t h e I n t e r n e t t o e n g a g e i n c o l l a b o r a t i v e c u s t o mi z a t i o n o r realtime customization

BIBLIOGRAPHY

Journals: Business and economy

Websites: www.marutiudyog.com Gurgaon.nic.in/maruti.htm Auto.indiamart.com Economictimes.indiatimes.com En.wikipedia.org/wiki www.citrix.com