Hussain Tiewala & Vanessa Rebelo

Why is it Important ?
0 No matter what

business you're in, unless your customers are happy you won't succeed.

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Consumer Behaviour is the behaviour that consumers display in searching for, purchasing, using and evaluating, products, services, and ideas which they expect will satisfy their needs

Hussain Tiewala & Vanessa Rebelo

0 The passenger car segment has seen an

impressive growth in the Indian automobile market because of the change in standard of living, their high-end incomes, easy monthly instalment (EMIs) and loan schemes offered by banks and financial institutions to buy cars. Indian car market has received a major boost due to these reasons and now foreign players are moving in to capture a market share.

Hussain Tiewala & Vanessa Rebelo

Conventional idea
0 The typical Indian car-buyer is obsessed with

post-purchase pricing. Which is, in effect, the cost of maintenance and the possible re-sale value. 0 The lower the selling price of a second hand model, the less is the purchasers incentive to opt for it

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What is it that influences us to buy one small car over the other ?
0 Mileage

0 Price
0 Comfort 0 Brand 0 Looks 0 After sales service 0 Cost of maintenance and spares 0 Mileage
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MAJOR COMPETITORS

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CRM AT MARUTI
0 Servicing customers 24X7 ..... 365 days.... 0 Maruti Suzuki won 1st Position in Customer Satisfaction Survey

conducted by independent body, J.D.Power Asia Pacific. It is 9th time in a row. 0 Maruti created a land-mark in CRM by launching a website for the customers in the year 1998. 0 The company was first car company in India to launch a Call Centre in the year 2000.

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0 One Stop Shop

At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs. 0 The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost customers face when buying a car. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines. 0 Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, R, Esteem, Maruti 800, Alto and Omni. HussainWagon Tiewala & Vanessa Rebelo

Key Initiatives
0 Car pickup & delivery facility for women

car owners. 0 Maruti also launched a mission to promote safe driving habits jointly with Institute of Driving Training and Research. 0 Launched Dil Se- a special program for Indians living abroad or NRIs, to facilitate them to gift Maruti cars online to friends Hussain Tiewala & Vanessa Rebelo and relatives at home.

Express Service Bays & 2Technicians Bays

0 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 & 2Technicians Bays 0 These are done for customers who are hard pressed for time. 0 Both the initiatives undertaken in this direction have helped improve customer interface and also helped increase the productivity and capacity of existing workshops.
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Mega Camps
0 The company aggressively conducts 'Mega Camps'

throughout the country round the year. 0 Apart from mega camps workshop camps like A/C checkup camps, PUC and general check-up camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of customer connect initiatives.

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Maruti

Mega Camps

Sports Events

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Maruti Auto Card

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. 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. It is called Loyalty-cum Reward Program in order to: Retain old and make new customers Provide special privileges and benefits Sell Mruti accessories, finance, insurance Crate edge over competitors Provides Rewards at Maruti Suzuki dealers and at workshops Purchase of lubricant and fuel at IOC Shopping/entertainment through Autocard Value of 1 Auto Point earned: re.1.00/-

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Maruti Call Center

The company was the first car company in India to launch a call center in year 2000. 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

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Car Pick up and Delivery facility for Women Owners

After a survey it was found out that vehicle pick up

and delivery before and after service has a strong impact on customer satisfaction . 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.

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Service at Door Step through Maruti Mobile Support

0 Maruti Mobile Support is a

first of it's 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 of new workshop may not be viable

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Maruti True Value Outlet

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.

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Maruti On Road Services

The MOS ensures:
Round-the-clock services in most of the cities A computerized call-monitoring system dispatches a

mobile MOS van to the customer at the earliest All MOS vans are managed by qualified Maruti Authorized Dealers / MASS technicians who are trained by Maruti in problem diagnosis The customer are charged only Rs.100 on labor and spares
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0 Market Research Department

Their Market Research department remains on its toes to study the changing consumer behavior and market needs. Maruti enjoys 70%repeat buyers which further bolsters their claim of being customer friendly 0 Availability of easy finance 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.

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Kings of understanding consumer behavior

0 A Buying Experience Like No Other

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. 0 Quality Service Across 1036 Cities In the J.D. Power CSI Study Maruti Suzuki scored the highest across all 7 parameters: 1.least problems experienced with vehicle serviced, 2.highest service quality, 3. best in-service experience,
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4.best service delivery, 5.best service advisor experience,

6. most user-friendly service and

7.best service initiation experience.

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The telling facts

0 92% of Maruti Suzuki owners feel that work gets done

right the first time during service. 0 The J.D. Power CSI study also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle. 0 While 90% owners would probably repurchase the same make of vehicle.

Hussain Tiewala & Vanessa Rebelo

Fiat
0 Fiat usually positions its cars as reliable and sturdy

cars for middle-class consumers. This strategy has worked well for the company especially in emerging markets like Brazil. In 1997, the company entered India through a joint-venture with Premier Automobiles Ltd (to sell its new car Uno), which it had successfully partnered with previously (since 1951) allowing the latter to sell Fiat cars in India that were dominantly used as taxis back then.

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0 The Unos pre-launch image appeared to be very

fascinating, but Fiat ruined it by continuing its position strategy in India carried over from its huge success in South America. 0 It believed that the similar positioning would work for them considering that both Brazil and India share similar attributes (both being emerging economies).

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0 One of the major problems was lack of market research. 0 Perception was largely associated with the cheap taxis that 0 0 0

had been selling for several years. Cultural issues needed to be considered to counter such perception through aggressive advertisements. The company failed to look into the demographic statistics of India. Only about 600000 cars were being sold to a billion people every year. On account of such low sales, Cars therefore were more of a status symbol in India than a utility option. Fiat were wrong to market the car as a reliable workhorse, which obviously led to their failure to entice the Indian consumer.

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So has the Indian market changed to suit Fiats reliable and sturdy image?

Not really.
0 The company literally flipped its positioning strategy.

Although today the number of Indian population who can afford a car has more than doubled up since 1997(since the launch of uno), it is still minimalistic when compared to the huge population.

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 The table below indicates the rise in sales of passenger cars in India. This means that buying a car in India is still a status symbol than being a utility-based purchase

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Online Review
0 FIAT Palio- This car comes first in my list of one of the

biggest flops in India, mainly because its an excellent car ruined by FIAT. It was received well by Indians, but after a few months FIAT somehow managed to turn everything around and sales plummeted to pathetic levels. The 1.3 JTD was the last ray of hope, but then FIAT again played spoilsport by allowing Maruti to take away all the glory. Current sales of the Palio Stile stand at around 400 cars as against around 9000+ for the Swift, which is a pity considering car-per-car the palio can give the swift a run for its money.

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Time for change

0 Fiat now targets the higher class market in India

focussing on Luxury and Style rather than Reliable and Sturdy image. This helped the company to connect with its consumers right away. 0 The Consumers said Well, we want our cars to be associated with high status and comfort . 0 Fiat responded, You got it!! Buy the new Linea or Punto

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Summary
0 Which Car Manufacturer has used Consumer Behavior more effectively ?

Maruti OR FIAT

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Bibliography
www.marutisuzuki.com www.scribd.com www.autocar.in www.wikipedia.com www.zigwheels.com

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Thank you

Hussain Tiewala & Vanessa Rebelo

Hussain Tiewala & Vanessa Rebelo