1

CHAPTER I
INTRODUCTION




1.1 Introduction

Maruti Suzuki India Limited (/maruti Suzuki/), commonly referred to as
Maruti and formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a subsidiary of Japanese automobile and
motorcycle manufacturer Suzuki. As of November 2012, it had a market
share of 37% of the Indian passenger car market. Maruti Suzuki
manufactures and sells a complete range of cars from the entry level Alto,
to the hatchback Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire,
Kizashi and SX4; in the 'C' segment Eeco, Omni, Multi Purpose vehicle
Suzuki Ertiga and Sports Utility vehicle Grand Vitara. The company's
headquarters are at No 1, Nelson Mandela Road, New Delhi. In February
2012, the company sold its ten millionth vehicles in India.


COMPANY LOGO




2



Maruti Suzuki India Limited

















































Type Public
Traded as BSE: 532500
NSE: MARUTI

BSE SENSEX Constituent
Industry Automotive
Predecessor(s) Maruti Udyog Limited
Founded 1981
Headquarters New Delhi, India
Key people R. C. Bhargava (Chairman) Kenichi
Ayukawa (CEO & MD)
Products Automobiles
Revenue 43272 crore (US$7.3 billion) (2013-14)
Net income 2469 crore (US$410 million) (2013-14)
Employees 6,903 (2011)
Parent
Suzuki
Website www.marutisuzuki.com
3


1.2 History

Originally, 18.28% of the company was owned by the Indian government, and
54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of
25% of the company in June 2003. As of May 2007, the government of India sold
its complete share to Indian financial institutions and no longer has any stake in
Maruti Udyog.






Maruti Udyog Limited was established in February 1981, though the
actual production commenced only in 1983. It started with Maruti 800, based
on the Suzuki Alto kei car which at the time was the only modern car
available in India. Its only competitors were Hindustan Ambassador and
Premier Padmini. Originally, 74% of the company was owned by the Indian
government, and 26% by Suzuki of Japan. As of May 2007, the government
of India sold its complete share to Indian financial institutions and no longer
has any stake in Maruti Udyog.

The company exports more than 50,000 cars annually and has domestic sales of
730,000 cars annually.

Its manufacturing facilities are located at two facilities
Gurgaon and Manesar in Haryana, south of Delhi. Maruti Suzukis Gurgaon
facility has an installed capacity of 900,000 units per annum. The Manesar
facilities, launched in February 2007 comprise a vehicle assembly plant with a
capacity of 550,000 units per year and a Diesel Engine plant with an annual
The old logo of Maruti
Suzuki India Limited.
Later the logo of Suzuki
Motor Corp. was also
added to it



4

capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities
have a combined capability to produce over 14, 50,000 units annually.

1.3 Chronology

1.3.1 Beginnings

Maruti's history begins in 1970, when a private limited company named 'Maruti
technical services private limited' (MTSPL) is launched on November 16, 1970.
The stated purpose of this company was to provide technical know-how for
the design, manufacture and assembly of "a wholly indigenous motor car". In
June 1971, a company called 'Maruti limited' was incorporated under the
Companies Act and Sanjay Gandhi became its first managing director. After a
series of scandals, "Maruti Limited" goes into liquidation in 1977. This is
followed by a commission of inquiry headed by Justice A. C. Gupta, which
submits its report in 1978. On 23 June 1980 Sanjay Gandhi dies when a private
test plane he was flying crashes. A year after his death, and at the behest of
Indira Gandhi, the Indian Central government salvages Maruti Limited and
starts looking for an active collaborator for a new company: Maruti Udyog Ltd
being incorporated in the same year.



fig 1:The first Maruti 800, based on the
Suzuki SS80



5


1.3.2 Suzuki enters


In 1982, a license & Joint Venture Agreement (JVA) is signed between
Maruti Udyog Ltd. and Suzuki of Japan. At first, Maruti Suzuki was mainly
an importer of cars. In India's closed market, Maruti received the right to
import 40,000 fully built-up Suzukis in the first two years, and even after
that the early goal was to use only 33% indigenous parts. This upset the
local manufacturers considerably. There were also some concerns that the
Indian market was too small to absorb the comparatively large production
planned by Maruti Suzuki, with the government even considering adjusting
the petrol tax and lowering the excise duty in order to boost sales. Finally,
in 1983, the Maruti800 is released. This 796 cc hatchback is based on the
SS80 Suzuki Alto and is Indias first affordable car. Initial product plan is
40% saloons, and 60% Maruti Van. Local production commences in
December 1983. In 1984 the Maruti Van, with the same three-cylinder
engine as the 800, is released. Installed capacity of the plant in Gurgaon,
reaches 40,000 units.

In 1985 the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, is
launched. In 1986 the original 800 is replaced by an all-new model of the
796 cc hatchback Suzuki Alto/Fronte. This is also when the 100,000th
vehicle is produced by the company. In 1987 follows the company's first
export to the West, when a lot of 500 cars were sent to Hungary. Maruti
products had been exported to certain neighboring countries already. By
1988, the capacity of the Gurgaon plant is increased to 100,000 units per
annum.


6





1.3.3Market liberalization

In 1989 the Maruti 1000 is presented after having been shown earlier.
This 970 cc, three-box is Indias first contemporary sedan. By 1991 65
percent of the components, for all vehicles produced, are indigenized.
Meanwhile, the liberalization of the Indian economy opens new
opportunities but also brings more competition to the segments in which
Maruti operates. In 1992 Suzuki increases its stake in Maruti to 50 percent,
making the company a 50-50 JV with the Government of India the other
stake holder.

A flow of new models begin in the early nineties. In 1993 the Zen, a
modern 993 cc, hatchback which is later exported globally as the Suzuki
Alto. In 1994 the 1298 cc Esteem appears, a more luxurious redesigned
Maruti 1000. This and other Marutis begin appearing in a plethora of
different equipment levels, to better suit India's increasingly discerning
consumers. A Zen Automatic arrives in 1996, as does the Gypsy King, a 1.3
liter version of the compact off-roader, and a minibus version of the Omni
(the Omni E).

In 1994 Maruti Suzuki produces its 1 millionth vehicle since the
Fig 2: An old Maruti 800 model
from the 1980s, still in use as of
2013 in Goa.
The Maruti 800 w as popularly
referred to as simply "Maruti"

7

commencement of production, being the first company in India to do so.
This is still not enough in a booming market and the next year Maruti's
second plant is opened, with annual capacity reaching 200,000 units. Maruti
also launches a 24-hour emergency on-road vehicle service, the first of its
kind in the country. In 1996 the United Front government is formed, with
Murasoli Maran new Industries Minister. On 27 August the following year
the government nominates Mr. S.S.L.N. Bhaskarudu as the Managing
Director, as the then current Managing director R.C. Bhargava, was
completing his tenure. This creates a conflict with Suzuki, discussed closer
in the Joint venture related issues section.

In 1998 the new Maruti 800 is released, the first change in design since
1986. This is simply a facelift of the existing model, to ensure steady sales.
Also, the two millionth vehicle is produced. Other news include the Zen D, a
1527 cc diesel hatchback and Maruti's first diesel vehicle. The Omni van and
microbus is also redesigned. The next year the Omni bus arrives in a high
roof version, the Omni XL. The 1.6 litre Maruti Baleno three-box saloon,
advertised as the 'Maruti Suzuki Baleno', also appears. This is Maruti's
biggest car yet. Finally, in what is a very busy year, the Wagon R is
launched.

In 2000 Maruti becomes the first car company in India to launch a
Call Center for internal and customer services. The new Alto model is also
released, somewhat larger and more modern than the 800. The estate
Baleno Altura is also shown, while IDTR (Institute of Driving Training and
Research) is launched jointly with the Delhi government to promote safe
driving habits. In 2001 Maruti True Value, selling and buying used Maruti
Suzukis, is launched in Bangalore and Delhi, later in Mumbai and elsewhere.
In October of the same year the Maruti Versa sees the day, a bigger engined
and more luxurious microbus than the Omni. It never catches on in the
market and is discontinued by late 2009, only to be replaced by a cheaper,
8

stripped-down version called Eeco. Customer information centers are also
launched in Hyderabad, Bangalore and Chennai. In 2002 the Esteem Diesel
appears, as does Maruti Insurance. Two new subsidiaries are also started:
Maruti Insurance Distributor Services and Maruti Insurance Brokers
Limited. Suzuki Motor Corporation increases its stake in Maruti to 54.2
percent.


fig3: Maruti Alto, introduced in 2000



In 2003 the new Suzuki Grand Vitara XL-7 appears, while the Zen
and the Wagon R are upgraded and redesigned. The four millionth Maruti
vehicle is built and they enter into a partnership with the State Bank of
India. Maruti Udyog Ltd is Listed on BSE and NSE after a public issue,
which is oversubscribed tenfold. In 2004 the Alto becomes India's new
best selling car, overtaking the Maruti 800 which had been number one for
nearly two decades. The five-seater Versa 5-seater, a new variant, is
created while the Esteem undergoes cosmetic changes and is re-launched
with a price cut. Maruti Udyog closed the financial year 2003-04 with an
annual sale of 472,122 units, the highest ever since the company began
operations 20 years earlier, and the fiftieth lakh (5 millionth) car rolls out in
April, 2005, with overall sales growing by 15.8%. The 1.3 L Suzuki Swift
five-door hatchback also appears 2004-05 marked another record year
(487,402 domestic sales) and exports reached 48,899 cars to about fifty
different countries. The United Kingdom took the lion's share, with 10,623
9

deliveries.

In 2006 Suzuki and Maruti set up another joint venture,
"Maruti Suzuki Automobiles India", to build two new manufacturing plants,
one for vehicles and one for engines. Cleaner cars were also introduced, with
several new models meeting the new "Bharat Stage III" standards. In
February 2012, Maruti Suzuki sold its ten millionth vehicle in India.

1.4 Manufacturing facilities

Maruti Suzuki has two manufacturing facilities in India. Both
manufacturing facilities have a combined production capacity of 14,50,000
vehicles annually. During a recent meeting of the Gujarat chief minister with
Suzuki Motor Corp chairman & CEO Osamu Suzuki, the Chairman had
said that the work on car manufacturing plant at Mandal near Ahmedabad
would be started soon. Maruti Suzuki to set up second plant in Gujarat;
acquires 600 acres


Fig 4: The Maruti Suzuki A-Star is sold as the Suzuki Alto in Europe


1.4.1 Gurgaon manufacturing facility


The Gurgaon manufacturing facility has three fully integrated
manufacturing plants and is spread over 300 acres (1.2 km
2
). All three
10

plants have an installed capacity of 350,000 vehicles annually but
productivity improvements have enabled it to manufacture 900,000 vehicles
annually. The Gurgaon facilities also manufacture 240,000 K-Series engines
annually. The entire facility is equipped with more than 150 robots, out of
which 71 have been developed in-house. The Gurgaon Facilities
manufactures the 800, Alto, Wagon R, Estilo, Omni, Gypsy, and Eeco.



fig5: Suzuki Splash is sold as Maruti
Suzuki Ritz in India



1.4.2Manesar manufacturing facility

The Manesar manufacturing plant was inaugurated in February 2007 and is
spread over 600 acres (2.4 km
2
). Initially it had a production capacity of
100,000 vehicles annually but this was increased to 300,000 vehicles
annually in October 2008. The production capacity was further increased by
250,000 vehicles taking total production capacity to 550,000 vehicles
annually. The Manesar Plant produces the A-star, Swift, Swift DZire, SX4,
Ritz and Celerio.
11


fig6: India's Corps of Military Police personnel
patrolling the Wagah border crossing in the Punjab in a
Maruti Gypsy.

On 25 June 2012, Haryana State Industries and Infrastructure Development
Corporation demanded Maruti Suzuki to pay an additional Rs 235 crore for
enhanced land acquisition for its Haryana plant expansion. The agency
reminded Maruti that failure to pay the amount would lead to further
proceedings and vacating the enhanced land acquisition.

1.5 Industrial relations

Since its founding in 1983, Maruti Udyog Limited experienced problems
with its labour force. The Indian labour it hired readily accepted Japanese
work culture and the modern manufacturing process. In 1997, there was a
change in ownership, and Maruti became predominantly government
controlled. Shortly thereafter, conflict between the United Front Government
and Suzuki started. Labour unrest started under management of Indian
central government. In 2000, a major industrial relations issue began and
employees of Maruti went on an indefinite strike, demanding among other
things, major revisions to their wages, incentives and pensions.
Employees used slowdown in October 2000, to press a revision to their
incentive-linked pay. In parallel, after elections and a new central
government led by NDA alliance, India pursued a disinvestments policy.
Along with many other government owned companies, the new
administration proposed to sell part of its stake in Maruti Suzuki in a public
12

offering. The worker's union opposed this sell-off plan on the grounds that
the company will lose a major business advantage of being subsidised by the
Government, and the union has better protection while the company remains
in control of the government.
The standoff between the union and the management continued through
2001. The management refused union demands citing increased competition
and lower margins. The central government prevailed and privatized Maruti
in 2002. Suzuki became the majority owner of Maruti Udyog Limited.

1.5 Manesar violence July 2012

On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at
one of its auto factories attacked supervisors and started a fire that killed a
company official and injured 100 managers, including two Japanese
expatriates. The violent mob also injured nine policemen. The company's
General Manager of Human Resources had both arms and legs broken by
his attackers, unable to leave the building that was set ablaze, and was
charred to death. The incident is the worst-ever for Suzuki since the
company began operations in India in 1983

Since April 2012, the Manesar union had demanded a three-fold increase
in basics alary, a monthly conveyance allowance of 10,000, a laundry
allowance of 3,000, a gift with every new car launch, and a house for
every worker who wants one or cheaper home loans for those who want to
build their own houses. Initial reports claimed wage dispute and a union
spokesman alleged the incident may be caste-related. According to the
Maruti Suzuki Workers Union a supervisor had abused and made
discriminatory comments to a low-caste worker. These claims were denied
by the company and the police. The supervisor alleged was found to
belong to a tribal heritage and outside of Hindu caste system; further, the
numerous workers involved in violence were not affiliated with caste
13

either. Maruti said the unrest began, not over wage discussions, but
after the workers' union demanded the reinstatement of a worker who
had been suspended for beating a supervisor. The workers claim harsh
working conditions and extensive hiring of low-paid contract workers
which are paid about $126 a month, about half the minimum wage of
permanent employees. Maruti employees currently earn allowances in
addition to their base wage. Company executives denied harsh conditions
and claim they hired entry-level workers on contracts and made them
permanent as they gained experience. It was also claimed that bouncers were
deployed by the company.

India Today claimed that its interviews of witnesses present at the plant
confirm the dispute was over the suspended worker. The management
insisted that they must wait for completion of inquiry underway before they
can take any action on the employee suspended for beating up his supervisor.
The management was then told, "you will be beaten up after we get a
signal." Thereafter, the workers broke up into groups, went on to set the shop
floor as well as all offices afire. They searched for management officials
and proceeded with a beating of the officials at the site with iron rods.

The police, in its First Information Report (FIR), claimed on 21 July that
Manesar violence may be the result of a planned violence by a section of
workers and union leaders. The report claimed the worker's action was
recorded on close circuit cameras installed within the company premises.
The workers took several managers and high ranked management officials
hostage. The responsible Special Investigative Team official claimed,
"Some union leaders may be aware of the facts, so they burnt down the main
servers and more than 700 computers." The recorded CCTV footage has
been used to determine the sequence of events and people involved. Per the
FIR, police have arrested 91 people and are searching for 55 additional
14

accused.

Maruti Suzuki in its statement on the unrest announced that all work at the
Manesar plant has been suspended indefinitely. A Suzuki spokesman said
Manesar violence won't affect the auto maker's business plans for India. The
shutdown of Manesar plant is leading to a loss of about Rs 75 crore per
day. On 21 July 2012, citing safety concerns, the company announced a
lockout under The Industrial Disputes Act, 1947 pending results of an
inquiry the company has requested of the Haryana government into the
causes of the disorder. Under the provisions of The Industrial Disputes Act
for wages, the report claimed, employees are expected to be paid for the
duration of the lockout. On 26 July 2012, Maruti announced employees
would not be paid for the period of lock-out in accordance with Indian labour
laws. The company further announced that it will stop using contract
workers by March 2013. The report claimed the salary difference between
contract workers and permanent workers has been much smaller than initial
media reports - the contract worker at Maruti received about 11,500 per
month, while a permanent worker received about 12,500 a month at start,
which increased in three years to 21,000-22,000 per month. In a separate
report, a contractor who was providing contract employees to Maruti claimed
the company gave its contract employees the best wage, allowances and
benefits package in the region.

Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki
India, said this kind of violence has never happened in Suzuki Motor Corp's
entire global operations spread across Hungary, Indonesia, Spain, Pakistan,
Thailand, Malaysia, China and the Philippines. Mr. Nakanishi went to each
victim apologizing for the miseries inflicted on them by fellow workers, and
in press interview requested the central and Haryana state governments to
help stop such ghastly violence by legislating decisive rules to restore
corporate confidence amid emergence of this new 'militant workforce' in
15

Indian factories. He announced, "We are going to de-recognize Maruti
Suzuki Workers Union and dismiss all workers named in connection with
the incident. We will not compromise at all in such instances of barbaric,
unprovoked violence." He also announced Maruti plans to continue
manufacturing in Manesar, that Gujarat was an expansion opportunity and
not an alternative to Manesar.

Labour disputes are endemic in the auto industry of India and have affected
other manufacturers. India has strict labour laws, but their application is
widely sidestepped by hiring low-wage contract workers. Manesar violence
adds to India's recent incidents of labour disputes turning to violence.
Analysts claim recent incidents like Manesar violence suggest a need for
urgent reform of archaic Indian labour laws, the rigid rules on hiring and
layoffs, which harm the formal sector and discourage investment in India.
Government mandated procedures for labour dispute resolution are currently
very slow, with tens of thousands of cases pending for years. The
government of India is being asked to recognize that incidents such as
Manesar violence indicate a structural sickness which must be solved
nationally.

The company dismissed 500 workers accused of causing the violence and
re-opened the plant on 21 August, saying it would produce 150 vehicles on
the first day, less than 10% of its capacity. Analysts said that the shutdown
was costing the company 1 billion rupees ($18 million) a day and costing the
company market share.

The previous week company officials had announced that Maruti would
scrap the practice of hiring contract workers and that the workers currently
on temporary contracts would be made permanent. It would begin the
process of hiring new workers on a permanent basis from 2 September 2012.
16

In July 2013, the workers went on hunger strike to protest the continuing
jailing of their colleagues and launched an online campaign to support their
demands.






17

1.6 Sales and service network

As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns
and cities in all states and union territories of India. It has 3,013 service
stations (inclusive of dealer workshops and Maruti Authorized Service
Stations) in 1,436 towns and cities throughout India. It has 30 Express
Service Stations on 30 National Highways across 1,436 cities in India.
Service is a major revenue generator of the company. Most of the service
stations are managed on franchise basis, where Maruti Suzuki trains the local
staff. Other automobile companies have not been able to match this
benchmark set by Maruti Suzuki. The Express Service stations help many
stranded vehicles on the highways by sending across their repair man to the
vehicle.

1.6.1 Maruti Insurance

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers
with the help of the National Insurance Company, Bajaj Allianz, New India
Assurance and Royal Sundaram. The service was set up the company with
the inception of two subsidiaries Maruti Insurance Distributors Services
Pvt. Ltd and Maruti Insurance Brokers Pvt.ltd.

This service started as a benefit or value addition to customers and was able
to ramp up easily. By December 2005 they were able to sell more than two
million insurance policies since its inception.



1.6.2 Maruti Finance

To promote its bottom line growth, Maruti Suzuki launched Maruti
Finance in January 2002. Prior to the start of this service Maruti Suzuki had
18

started two joint ventures Citicorp Maruti and Maruti Countrywide with
Citi Group and GE Countrywide respectively to assist its client in securing
loan. Maruti Suzuki tied up with ABN Amro Bank,HDFC Bank, ICICI
Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to
start this venture including its strategic partners in car finance. Again the
company entered into a strategic partnership with SBI in March 2003 Since
March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti
Finance. SBI-MarutiFinance is currently available in 166 cities across India.

Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance
India and Maruti Udyog Limited its primary business stated by the company
is "hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India
Limited is a wholly owned subsidiary of Citibank Overseas Investment
Corporation, Delaware, which in turn is a
100% wholly owned subsidiary of Citibank N.A. Citi Finance India
Limited holds 74% of the stake and Maruti Suzuki holds the remaining
26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form
Maruti Countrywide. Maruti claims that its finance program offers most
competitive interest rates to its customers, which are lower by 0.25% to
0.5% from the market rates.

1.6.3 Maruti True Value

Maruti True service offered by Maruti Suzuki to its customers. It is a market
place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used
Maruti Suzuki vehicles with the help of this service in India. As of 31
March 2010 there are 341 outlets.

1.6.4 N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides
lease and fleet management solution to corporate. Clients who have
19

signed up of this service include Gas Authority of India Ltd, DuPont,
Reckitt Benckiser, Doordarshan, Singer India, [[National Stock Exchange]
of India] and Trans world. This fleet management service includes end-to-
end solutions across the vehicle's life, which includes Leasing,
Maintenance, Convenience services and Remarketing.

1.6.5 Accessories

Many of the auto component companies other than Maruti Suzuki started to
offer components and accessories that were compatible. This caused a
serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a
new initiative under the brand name Maruti Genuine Accessories to offer
accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products
are sold through dealer outlets and authorized service stations throughout
India.




1.6.6 Maruti Driving School

As part of its corporate social responsibility Maruti Suzuki launched the Maruti
Driving School in Delhi. Later the services were extended to other cities of India
as well. These schools are modeled on international standards, where learners go
through classroom and practical sessions. Many international practices like road
behavior and attitudes are also taught in these schools. Before driving actual
vehicles participants are trained on simulators.
20


Fig 7: A Maruti Driving School in Bangalore

A launch ceremony for the school Jag dish Khattar stated "We are very
concerned about mounting deaths on Indian roads. These can be brought down if
government, industry and the voluntary sector work together in an integrated
manner. But we felt that Maruti should first do something in this regard and
hence this initiative of Maruti Driving Schools."

1.7 Exports


Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on
exports and it does not operate in the domestic Indian market. The first commercial
consignments of 480 cars were sent to Hungary. By sending a consignment of
571 cars to the same country Maruti Suzuki crossed the benchmark of 300,000 cars.
Since its inception export was one of the aspects government was keen to encourage.

Every political party expected Maruti Suzuki to earn foreign currency. Angola, Benin,
Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile,
Guatemala, Costa Rica and El Salvador are some of the markets served by maruti
Suzuki.


21

1.8 Awards and recognition

The Brand Trust Report published by Trust Research Advisory has ranked
Maruti Suzuki in the seventh position in 2011 and the sixth position in 2012
among the brands researched in India.

Blue bytes News, a news research agency, rated Maruti Suzuki as India's
Most Reputed Car Company in their Reputation Benchmark Study conducted
for the Auto (Cars) Sector which launched in April 2012.
22

CHAPTER II
Marketing Mix



2.1 Introduction

Marketing Mix is a major concept in modern marketing and involves
practically everything that a marketing company can use to influence consumer
perception favorably towards its product or services so that consumer and
organizational objectives are attained, i.e. marketing mix is a model of crafting and
implementing marketing strategy.

All the marketing strategies are based on right mix of 4Ps, only those can be
ahead which has the right marketing strategies because it increases the chances of
better market penetration with proper utilization of resources. Maruti Suzuki
India limited is presently considered as the leading automobile giant. This
research paper is purely based on secondary data and tries to study the different
strategies of Maruti Suzuki, its vast network of dealers and service centers which
provides proper after sale service and is able to maintain good relationship with
customer which is their strongest point.

The major marketing mix variables (4Ps) are:
i. Product
ii. Price
iii. Place (Distribution)
iv. Promotion.

2.2. MARKETING STRATEGY OF MARUTI SUZUKI

Maruti Suzuki India Ltd. is a leading manufacturer of four-wheelers in India.
Born in 1983 with the mission to motorize India, Maruti was a joint venture
23

between Government of India and Suzuki Motor Corporation, Japan. It quickly
grew into the largest compact car making company of India and remained so
till 2004. The company started with Suzuki holding the minor stakes of the
company while Government of India holding the major stakes. As of present,
Government of India has disinvested its stakes in the company completely, and
handed over the management of company to Suzuki Motor Corporation. Today,
Maruti and its partners employ more than 75,000 employees. Its manufacturing
facilities are located at two locations, Gurgaon and Manesar, both south of New
Delhi.

2.3 PRODUCT STRATEGY

Product is anything that can satisfy human needs and wants. The product is a
combination of tangible and intangible aspects of the products offered by the
manufacturer to the customers. It can be defined as a bundle of satisfactions and
dissatisfactions offered by company to the customers at a point of time. The
product strategy of Maruti is that its focus is on catering the needs of almost all
the segments. Maruti Suzuki offers 16 brands consisting of Maruti 800,
Maruti Omni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A Star,
Maruti Wagon R, Maruti Zen Estilo, Maruti Swift, Maruti SX4, Maruti
Kizashi, Maruti Eeco, Maruti Ertiga, Maruti Grand Vitara and 150
variants spanning across all segments. Thus company creates products that are
unique and valued and it is attaining advantage either through differentiation
via new features, improved performance, after sales service or through cost
leadership.






24

2.3.1 Products

Table 1: Current automobiles:
Model Launched Category Image
Omni 1984 Minivan

Gypsy 1985 SUV

WagonR 1999 Hatchback

Swift 2005 Hatchback


25

SX4 2007 Sedan

Grand Vitara 2007 Mini SUV

Swift DZire 2008 Sedan

Ritz 2009 Hatchback

26

Eeco 2010 Minivan

Alto K10 2010 Hatchback

Kizashi 2011 Sedan

Ertiga 2012 Mini MPV

27

Alto 800 2012 Hatchback

Stingray 2013 Hatchback

Celerio 2014 Hatchback



1. 800 (1983) (still distributed to some cities like Guwahati) Competes with Tata Nano,
Maruti Alto and Maruti Omni.
2. Omni (launched 1984) Competes with Tata Nano, Tata Venture, Maruti 800 and Maruti
Eeco.
3. Gypsy King (launched 1985) India's first indigenous vehicle and first compact SAV,
competes with Mahindra Thar CRDe, TataSumo 4x4 and Force Gurkha
4. WagonR (launched 1999) competes with Nissan Micra Active, Maruti A- star and
Hyundai i10.

28


5. Swift (launched 2005) Created a Maruti 800 rivaling benchmark, competes with Tata
Vista, Hyundai i20, Skoda Fabia, Volkswagen Polo and Toyota Etios Liva.
6. Sx4 (launched 2007) Soon to be replaced by the upcoming sedan codenamed YL1,
competes with Ford Fiesta, Hyundai Verna, Honda City, Skoda Rapid, Volkswagen
Vento, Renault Scala and Nissan Sunny
7. Swift DZire (launched 2008) Competes with Mahindra Verito, Toyota Etios, Ford
Classic, Mahindra VeritoVibe, Honda Amaze, Chevrolet Sail, Skoda Fabia and Tata
Manza.
8. A- star (launched 2008) Competes with Chevrolet Beat, Nissan Micra Active, Ford
Figo and MarutiWagon- R Stingray
9. Ritz (launched 2009) Competes with Maruti Swift, Tata Vista, Hyundai Grand i10,
Honda Brio, NissanMicra, Renault Pulse and Toyota Etios Liva
10. Eeco (launched 2010) Stripped down Versa with a lowered roof, in competition with
Tata Venture, TataWinger Platinum, and in- house Omni
11. Alto K10 (launched 2010), competes in the economy class with the Tata Indica,
Hindustan Motors Ambassador and Chevrolet Spark
12. Maruti Ertiga (launched 2012), seven seater MPV R3 designed and developed in
India, in competition with Toyota In nova, Mahindra Xylo, Nissan Evalia, Ashok Leyland
Stile and TataSumo Grande. In early 2012, Suzuki Ertiga will be exported
First to Indonesia in Completely Knock Down car.
13. Maruti XA Alpha based compact SUV to compete with the Ford EcoSport, Mahindra
Xylo Quanto; Nissan Terrano & Renault Duster will be launched in the year 2014
14. Maruti Alto 800, launched in 2012, Competes with Tata Nano
15. Maruti Stingray, launched in 2013, competes with Maruti A- star, Chevrolet Beat and
Chevrolet Sail
16. Maruti Suzuki Celerio, launched in 2014, competes with HyundaiI1o, Chevrolet Beat
and Honda Brio




29

Imported automobiles
1. Grand Vitara (launched 2002)



2. Kizashi (launched 2011).



Table 2: Discontinued automobiles
Model Launched Disconti
nued
Category Image
Gypsy E 1985 2000 SUV

30



1. Gypsy E (19852000)
2. 1000 (19902000)
3. Zen (19932006) Replaced by the Zen Estilo
4. Esteem (19942008) Replaced by the Swift DZire
1000 1990 2000 Sedan

Zen 1993 2006 Hatchback

Esteem 1994 2008 Sedan
Baleno 1999 2007 Sedan

Versa 2001 2010 Minivan

31

5. Baleno (19992007) Replaced by the SX4 sedan
6. Baleno Alturas (19992003)
7. Versa (20012010) Replaced by the Eeco
8. Grand Vitara XL7 (20032007) Replaced by the compact
Escudo/Vitara
9. 800 (1983- 2012) Replaced by the Alto 800
10. Alto (2000- 2012) Replaced by the Alto 800
11. Zen Estilo (20062013)

2.4 PRICING STRATEGY

The price is the amount a customer pays for the product. It is fixed after
considering various factors such as market share, competition, material costs,
product identity and the customer's perceived value of the product. The business
may increase or decrease the price of product if other stores have the same
product. The price decision is very sensitive and for that special care is to be
taken to get the competitive edge. There are various factors to determine a price
of a car, such as market condition, cost incurred to build a car, profit by
company, dealer profit. The companys pricing strategies are such that every
customer can own a car or upgrade to another one of h i s or her choice. The
company offered a different model at a price difference of around 10,000. It
follows a price-point-strategy wherein they have products available in almost
all possible price points.

Table 3: Models with Price Range


Car Models (Maruti) Price Range (Rs.)
Maruti 800 2,10,027 - 2,32,610
Maruti A-Star 3,81,171 - 4,66,219
Maruti Alto 800 2,42,775 3,56,775
Maruti Alto K10 3,21,358 - 3,34,598
32

Maruti Eeco 3,05,675 - 4,10,893
Maruti Ertiga 5,98,970 - 8,70,970
Maruti Grand Vitara 22,68,064 - 24,60,529
Maruti Gypsy 5,51,409 - 6,01,057
Maruti Kizashi 16,52,875 - 17,52,875
Maruti Omni 2,17,655 - 2,82,013
Maruti Ritz 4,32,237 - 6,33,612
Maruti Swift 4,48,893 - 6,87,768
Maruti Swift Dzire 4,92,354 - 7,50,483
Maruti SX4 7,38,114 - 9,79,786
Maruti Wagon R 3,57,880 - 4,44,674
Maruti Zen Estilo 3,45,829 - 4,36,136



Maruti 800 is the lowest price model of this company. Grand Vitara is the high
price model of the company.



2.4 DISTRIBUTION STRATEGY

Distribution strategy of a firm is a plan created by the management of a
manufacturing business that specifies how the firm wishes to transfer its
products to intermediaries, retailers and end consumers. Maruti Suzuki has
two manufacturing facilities in India. Both manufacturing facilities have a
combined production capacity of 14, 50,000 vehicles annually. Maruti has a
strong dealer network. In fact it was one of the very first companies in the
country to understand the importance of after sales service in high involvement
products like cars. It has the largest distribution & Service network comprising of
over 400 sales showrooms, over 600 dealer workshops, and 1900 Authorized
Service Stations spanning across over 1190 cities unparalleled in the country. It
33

has 30 Express Service Stations on 30 National Highways across 1,314 cities in
India. Most of the service stations are managed on franchise basis where Maruti
trains the local staff. To increase their reach to rural India, where setting up a
complete dealership was very difficult, they opened extension counters which
are operated by some dealer in the city thereby ensuring increased customer
touch points without risking the viability of the dealers.

Table 2: Network Details


Years Sales
Outlet
Cities
Covered
By Sales
Network
Dealer
Service
Maruti
Authoriz
ed
Service
Cities
Covered
By
Service
True
Value
Outlet
servic
e
Cities
Covered
By True
Value
2007-2008 600 343 683 2628 1220 266 166
2008-2009 681 454 779 2767 1314 315 181
2009-2010 802 555 906 2740 1335 341 198
2010-2011 933 668 1101 1845 1395 358 208
2011-2012 1100 801 1305 1653 1408 409 233
2012-2013 1204 874 1415 1514 1423 456 256
34

2.5 PROMOTION STRATEGY

The promotion includes all communications a marketer used in the
market for his products and services to create awareness, to persuade the
customers, to buy and retain in future also. For improvement in the position
of sales or progress of business this method is used. The message is given to
target group regarding the features and benefits of the products or services.
Without communication, the features, benefits and schemes would not be
known to the customers and objectives of launching of products or services and
increasing sales would not be completed. When communication creates
awareness then only the interest would be created and customers would take
the decision for buying. For promotion different methods of communication
can be used. The promotional strategy of Maruti Suzuki is very effective.
The companies emphasize on road safety and environment friendly products.
The company has launched road safety mission under which 5, 00,000 people
will be trained in the next three years. This will be done through two
channels - Institute of Driving Training and Research (IDTR) and the
Maruti Driving Schools spread across the country. Of the 5, 00,000 people to
be trained; at least 1, 00,000 will be people from underprivileged section of
society, who are keen to take driving as a profession. The company has
always promoted the concept of "Reduce, Reuse, and Recycle" (3R's). The
company has taken help of all the promotional tools like radio, television,
road shows, print media, workshops and seminars to promote their cars.

2.6.1 ROAD SHOWS:

The Company organizes road shows to display vehicles in the pavilions during
various college festivals and exhibition.



35

2.6.2 RADIO:

Radio is one of the biggest medium to communicate. The company goes for
radio announcements to convey about the product features, price, qualities, etc.

2.6.3 PRINT MEDIA:

The company also promotes with the help of print media .Advertisement is given
in leading newspapers as well as they distribute brochures and leaflets at public
places to reach the customers. At times they organize workshops and seminars to
display their models and they also offer test drive. The company also advertises
through banners and posters.

2.7 CONCLUSION

The Maruti Suzuki has a huge market and has left no stone unturned to satisfy
the customers. It has models in every segment o f the automobile market.
Maruti Suzuki stands for value as much as it stands for performance. In spite
of rising input costs, the company tries their best to keep prices down. Their
running costs and resale values are unbeatable too. Competitive strategy of
this company facilitated healthy profit and customer satisfaction and its
recognition as a company which stands for environmental concerns. Nothing
matches the delight their cars deliver. In fact, customer they dont buy a Maruti
Suzuki, they invest in it.





36


CHAPTER III
Human Resources


3.1 INTRODUCTION


Maruti Suzuki India Limited, commonly referred to as Maruti and
formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It is a
subsidiary of Japanese automobile and motorcycle manufacturer Suzuki .Maruti was
incorporated in 1981 as a government company. They started production in December 1983
with collaboration of Suzuki of Japan. Initially Suzuki had 26% equity which has since
increased to 40%. As of November 2012, it had a market share of 37% of the Indian passenger
car market. Maruti Suzuki manufactures and sells a complete range of cars from the entry level
Alto, to the hatchback Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4,
in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle
Grand Vitara.

3.2 LIFE AT MSIL
The company that leads the Indian auto industry and defines the way India drives rides on the
quality and competence of its people. Its a great place to discover all that you can be and
maximize your potential.
From a genuinely equal opportunity work culture, a sense of team spirit that goes right down
to a common lunchroom, to a feeling of oneness as senior managers and their teams sit
together in an open, wall-free environment, this is an uncommon place to work and excel.
37

MARUTI is fast and flexible, resilient and responsive, as theyll as decisive and responsible.
It is a place where your voice will be heard & valued.
Their people make them a company ready to meet the challenges of the dynamic auto market.
They value discipline and punctuality, and obsess over maintaining a safe & healthy work
environment .They like people who have an obsession to delight customers, and they leave
them free to take decisions in complex situations.
Sources of Recruitment in MSIL:
Campus Recruitment
Selected empanelled campuses






38

Lateral Recruitment
Consultants
Job sites
Employee referrals




3.3 MARUTIANS
Innovation
Dedication
Responsibility
Ownership.

These are the virtues that connect a Marutian to the organization. Maruti Suzuki offers a
39

unique opportunity for professional and personal growth as part of a multi-faceted
organization where all work as one. To most Marutians, their colleagues have been part of an
extended family.

With mix of generations and nationalities working together as one team, they provide the
perfect balance of energy, experience and exposure. At Maruti Suzuki, while excellence is an
integral part of our work culture, they are steadfast in an ethical approach in all its dimensions.

Martians across the country are all united by a common bond. Its not a workforce, but people
potheyr at work, an empotheyred team that is quite unlike any other.



3.4 OCCUPATIONAL AND HEALTH POLICY:

Maruti Suzuki India Limited (MSIL) is committed to ensure a safe and healthy working
environment for all employees, visitors, contractors, vendors and persons present at MSIL sites
by prevention of work related injuries and illness.
To meet the responsibilities, they are maintaining a safe working environment and have an
Occupational Health and Safety Management System (OHSMS) in place to:
Manage Risks by identifying all workplace hazards, undertaking assessments, internal &
external audits, and taking all necessary actions for prevention & control of injury, ill-health,
loss or damage by following safe work practices in operations as theyll as while procuring
new plant, machinery & equipment.

40

Comply with legal and other obligations by ensuring that our business is managed in
accordance with relevant occupational health and safety legislations, standards and MSIL
occupational health and safety policies & procedures.

Establish targets and review mechanism - They shall manage our obligations using
coordinated occupational health and safety plans for each area and site, with challenging
targets to measure progress


3.5 HUMAN RESOURCE PRACTICES IN MARUTI SUZUKI



3.5.1 HR VISION

Lead and Facilitate continuous change towards organizational excellence; create a learning and vibrant
organization with high sense of pride amongst its members.

3.5.2 HR INITIATIVES

Prepare MUL Strategic Business Plan to achieve the Vision & Goal
Improve the performance Appraisal system -its process, skill & usage
Improvements in internal & external Training & its effective utilization.
Systematic career planning; Job Rotation; Empotheyrment; Job enrichment
Periodic communication meeting at various levels; Roll out of Vision
Retention of Talent




41

3.6 WHISTLE BLOTHEYR POLICY
As a conscious and vigilant organization, Maruti Suzuki India Limited believes in the conduct
of the affairs of its constituents in a fair and transparent manner by adopting the highest
standards of professionalism, honesty, integrity and ethical behaviour.
In its endeavour to provide its employee a secure and a fearless working environment,
Maruti Suzuki India Limited has established the "Whistle Blotheyr Policy".
The purpose of the policy is to create a fearless environment for the employees to report any
instance of unethical behaviour, actual or suspected fraud or violation of the Company's code of
conduct or ethics policy to the Ombudsman. The framework of the policy strives to foster
responsible and secure whistle blowing.
This policy should be read in conjunction with applicable regulations & existing policies &
procedures of the Company. You can also contact the Secretarial & Legal Department if
you have any questions or need any clarifications.








42

3.7 Recruitment and Selection





3.7.1 RECRUITMENT FOR FRESHERS

They recruit fresh Graduates from premier T-Schools and B-Schools across the country in order
to build our future leadership talent pipeline.
At MSIL, they give ample opportunities for learning & growth through hands-on experience &
rigorous training sessions. The young talent undergoes a structured induction, buddy &
umbrella mentoring sessions, periodic management inputs and cross functional exposure.
With their exciting career paths coupled with hard work & dedication from your end, they
believe that you will keep on creating success stories in MSIL.
43


Recruitment Process:




3.7.2 RECRUITMENT PROCESS FOR EXPERIENCED PRO

For the last three decades, they have established themselves as the Market Leader in
Automobile sector in India. They appreciate the Knowledge & expertise that the experienced
professionals bring with them, and they come from diverse backgrounds to strengthen the
business pillars and explore new horizons with us.
They invite applicants, who
Are excellent performers with enthusiasm for constant improvement
Have intense desire to be a member of the organization and its success with a constant yearn to
learn
Are star performers, put in extra effort & are committed to engage in work that contributes to
business success.




44

Recruitment Process:




3.7.3 FRAUDULENT RECRUITMENT POLICY AT MARUTI

The companys attention has been drawn by certain members of the public that they have
received communication through e-mails for job interviews in our Company wherein they are
amongst other things, demanding cash deposit(s) in certain specified bank(s) before the actual
interviews. These individuals/recruitment companies are also wrongfully using the company's
registered trademark as theyll as using the names of certain officials of the company to lure
innocent members of the public to fall into this trap.
They like to categorically state that these communications are purely made with intend to
defraud the public and the company has not authorized any person to require any payment /cash
deposit to be made by any candidate to our company and/or to any individuals in the
recruitment process.
They urge the public not to be misled by such communications purportedly made by our
company including through e-mails. Should you require any further information about
genuinity or otherwise of such communications which you may receive, you are requested to
please get in touch with our official e-mail address: recruitment@maruti.co.in or our aforesaid
address.

45



3.7.4 SELECTION
It is the process of searching the potential candidate. It is negative in nature in the Indian
context. But it is positive in the US context.
Steps in Selection Process of Maruti Udyog ltd
Selection process consists of a series of steps, at each stage, facts may come light which may
lead to the rejection of the applicant. It is a series of successive hurdles or barriers which an
applicant must cross. These hurdles or screens are designed to eliminate an unqualified
candidate at any point in the selection process There is no standards selection procedure to be
used in all organizations or for all jobs. The complexity of selection procedures increases with
the level and responsibility of the position to be filled.

1} Preliminary Interview (screening applications)
2} Application Form
3} Selection Test
4} Employment Interview
5} Medical Examination
6} Reference Checks
7} Final Approval
8} Employment
9} Induction
10} Follow up (Evaluation)







46

3.8 TRAINING AND DEVELOPEMENT
Maruti have invested about Rs 12 crore in their training program .recently they took a decision
to establish a world class Maruti training centre which might come up on a 6-8 acre plot.
This kind of infrastructure will operate in decentralized manner. It will have a residential
facility, an e learning facility and will look at the perspective of developing our own technician
level guys for which campus recruitment take s place.
Maruti arranges training at several intervals. The training is mandatory for all the employees.
The training schedule is maintained by the Hr manager.
TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that
randomness is reduced and learning or behavioral change takes place in structured format.


3.8.1 TRAINING PROCESS FOR SALES EXECUTIVES:-

1. INDUCTION: - aims to provide an understanding of the industry, MUL, Its policies and
products (2days).

2. PRODUCT PROGRAMS:-imparts complete knowledge on MU and its competitors.
Various programs are Segment A1, Segment A3. (2 days)


3. SELLING SKILLS/CONSULTIVE SELLING PROCESS: - enables understand
customers need sales processes etc and enables apply learning in actual selling. (2 days)

4. CUSTOMER CARE: - appositive attitude and the ability to move is a pre requisite for
excellent performance in any world. Program aims at helping one to build a positive attitude
and interpersonal skills and to enable better customer handling.

5. ADVISOR FOR LIFE PROGRAM:-in this changed competitive environment, role of
dealer sales executive is seen more than a person who is selling cars to the customers. He is
47

expected to be the customers for life .he has to be single window interface with his
customers on all matters related to cars, that is, finance , insurance , Extended warranty ,
service etc.( 2days ).
The training program on Delivery Process has been developed as delivery now has the
maximum the right age in the new factor structure. Delivery is not the end of a sale but a
beginning of a relationship.

3.8.2 TRAINING PROCESS FOR SALES MANAGERS / GENERAL
MANAGERS/ BRANCH HEADS

1. Dealership Management Program: -For second generation dealers, and GMs and Ro
executives on how to manage entire Dealership Operations. Financial Management, staff
management, motivation, tie management planning are covered.

2.Sales Managers/Team Leaders Program:- The Training covers issues like Sales
management( target setting and achievement, enquiry management, resource and time
management etc), Supervisory skills ,Practical Coaching skills, knowledge of Maruti Finance,
Maruti Insurance Extended warranty, MGA, True value etc and car advisor for life concept.(2
days )


3. Branch managers Program: - many of the dealers have multiple outlets. While the owners
sit any one outlet and control the others from there, different branch heads that managers the
day to day operations of the outlet manages the other outlets

4. The training covers topics like: - making the business plan, Fundamentals of DBP, Hr
management, Team building and supervision skills, ability to motivate the team and get a buy
in on the business plan , time management/ prioritizing etc.


48




3.9 M AT T E R U S UALLY DISCUSSED IN THE MARUTI INDUCTION

Overview of Maruti Suzuki.
Building understanding of the car market in India and various segments.
Understand MUL.
Product range and positioning in each segment.
Understanding the basics in the automobile industry.
Role of financing as a sales tool and the various financing options available.
Ensuring personal effectiveness.



3.10 PERFORMANCE APPRAISAL

MUL to change gear on performance appraisal -- 100% link between pay, productivity
RENEWING its efforts at cutting costs and improving productivity, Maruti Udyog Ltd (MUL)
has drawn up a new human resources policy, which for the first time, entirely links
performance to pay packets for all its executives and managers. MUL has traditionally had a
performance-based component of about 30 percent in its compensation package for its
executives. But now it has gone the whole hog and decided that in addition to the hike in
individual perquisites, increments to even the basic salary will now depend on the employees
performance during the year. The new performance appraisal and compensation system is
likely to affect over 1,000 employees -- executives and senior and middle level managers.
Company officials said the changeover to a completely performance-based compensation
system has been under discussion amongst MUL's senior management and directors for quite
some time now. So, the new appraisal process has not come as a surprise for most of the
employees and has been accepted by them, the official said. Over the past, the principle
underlying the new system has been communicated at length throughout the company and
feedback has been obtained.
49

In the run-up to the new remuneration system, the company has also developed a new
performance measurement and development method along with the noted consultant, Mr. M.B.
Athreya. The performance measurement process will complement the new remuneration s
ystem.MUL sources said rather than appraise employees through confidential reports; the new
performance measurement system involves an interactive process of goal setting, review and
counseling by managers throughout the year. It incorporates qualitative aspects, along with
quantitative targets. The employees are being put through workshops to train them on the
various aspects of the system developed with Mr. Athreya.
The new system will take effect from this year. The new system is expected to help enhance
managerial performance and skills, while making the organization more capable of assessing its
costs and returns.MUL, which has been beleaguered by low margins and a falling bottom line,
has also been forced to take a hard look at its costs this year. For the first time, MUL has
slipped into the red and recorded a loss during the year 2000-01.

MUL has also drawn up a voluntary retirement scheme (VRS) for its employees. The VRS
program me received in-principle approval from the board last month. While the VRS proposal
is yet to be formally notified and offered to the company's employees, it is expected to apply
equally to all the staff members, including the shop floor workers, company sources said.
















50


3.11 MARUTI ADOPTS 360 DEGREE APPRAISAL SYSTEM


Maruti has introduced a unique 360-degree feedback system, starting with its senior
leadership. The new system has been co-developed with Ernst & Young and has been put in
place recently. Under the 360-degree feedback system, the employee is rated not just by his
superiors, but also by his peers and subordinates Employee to be evaluated not just by the superiors
but also by the peers and subordinates.

It would seem that there is no corporate human resource policy that has not had its share of controversies for
being biased. With an increase in the number is qualitative factors that affect employee at the workplace, the
performance appraisal process to make it as fair as possible has been the dream of every manager.


Its initiative is to empower young people in terms of free and frank feedback to their seniors, to the people
who manage them. Each senior gets a sample feedback from a group of 12-14 people, out of which 5-6
would be juniors , 5-6 colleagues and 2-3 their superiors.

This is done through an online process to maintain confidentiality. The person also evaluates himself. After
that, profiles would emerge. Based on this, there would be aggregate profile versus self profiles.


The 360-degree feedback system will also include a self-appraisal by the general manager.
At the end of the process, he can compare his self-appraisal with the assessment of his
subordinates and peers. One of the benefits that Maruti is hoping to get out of the 360-
degreefeedback process is the sense of employment and importance felt by subordinates,
when they are asked to offer their feedback about their superiors. Maruti currently has over
4,000 employees on its rolls.

51



3.12 PROMOTIONAL POLICIES


Exit interviews, when employees quit, are common practice in many companies. But
automobile major Maruti Suzuki (MSIL) is using 'stay interviews' to cement a long-term tie
with its employees.

For the past three years, MSIL has regularly reached out to its employees to understand
their aspirations, problems and expectations. It has subsequently come up with several
changes in the performance ratings scale, career progression policy and employee referrals.


It makes sense to probe employee minds while they are still working in the company and
take their feedback for changes rather than asking for it after losing them to competition.

For the first time this year, for instance, it altered its performance ratings scale. The
previous four-grade rating scale, which was: excellent (top 10%), very good (next 30%),
good (next 50%) and fair (last 10%), was revised to a five-grade scale: exceptional (top
10%), star performer (next 25%), high performer (next 25%), performer (next 15%) and
average (5%).


Employees perceived a 'good' rating as 'not-so-good', meaning, the rating's connotation was
not representative of performance. Also, adhering to the bell curve was becoming difficult
with ratings primarily being distributed only in the first three categories.

"Wording makes a lot of difference about how people feel. For instance, someone who gets
the grade 'exceptional' will think he has contributed a lot towards the firm's performance and
52

will continue to perform well," says Prateek Duhan, 28, manager, steering and suspension,
supply chain division.


"They made our employees happy by making an emotional connect and removing grades
such as 'good'," adds Mr. Siddiqui. Based on the feedback, the company has also changed its
career progression policy last year. The company shortened career tracks by offering
promotions at the junior management level if employees notched up the topmost grade for
two, instead of three consecutive years.



3.13 FINDINGS


They treat all employees equally
They tries their best to increase the efficiency of the employee by providing them with
different motivational programs
They make new recruits aware about the company and working conditions
Maruti focus on each and every department of the organization
Having different recruitment process for different departments of the organization
They provide different types of training to the different department according to the need
of the people
They talk feedback from there employee on regular basis
Maruti have adopted 360 degree method of performance appraisal for their employees



53

CHAPTER IV
FINANCE ANALYSIS


Table 1: Financial Ratios
SL
NO

RATIOS
YEARS
2013 2012 2011 2010 2009
1
Current ratio = Current assets
Current liabilities
1.04 1.13 1.57 0.91 1.51
2
Quick ratio = Total quick
assets Current liabilities
0.90 1.03 1.26 0.68 1.26
3
Debt Equity Ratio= Debt %
Equity
0.07 0.07 0.01 0.07 0.07
4
Inventory Turnover Ratio =
Net sales % Inventories

23.68 19.81 25.88 30.47 30.46
5
Total asset turnover ratio =
Sales and operating revenue
Total assets
2.21 2.22 2.62 2.32 2.06
6
Fixed asset turnover ratio =
cost of sales Net fixed assets
2.25 2.46 3.14 2.82 2.38
54

7
Asset turnover ratio = Sales or
revenues Total assets
2.21 2.22 2.62 2.32 2.06
8
Operating profit margin (%)
= (operating profit net sales)
*100
9.70 7.06 9.93 12.74 9.18
9
Net profit margin (%) =
(operating profit net sales)
*100
5.38 4.49 6.16 8.34 5.72


















55

1. Current ratio = Current assets Current liabilities

TABLE 1: Current Ratio

Years 2013 2012 2011 2010 2009
Current Ratio. 1.04 1.13 1.57 0.91 1.51





Interpretation
The above graph represents the current ratios of Maruti Suzuki Company
The above data is of five years i.e., 2008-09 to 2012-2013
From the above graph we observe that the current ratios are increasing as well as decreasing.


0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2013 2012 2011 2010 2009
1.04
1.13
1.57
0.91
1.51
Current Ratio.
56

2. Quick ratio = Total quick assets Current liabilities

TABLE 2: Quick ratio

Years 2013 2012 2011 2010 2009
Quick Ratio 0.90 1.03 1.26 0.68 1.26




Interpretation
The above graph represents the Quick ratios of Maruti Suzuki Company
The above data is of five years i.e., 2008-09 to 2012-2013
From the above graph we observe that the quick ratios are increasing as well as
decreasing.


0
0.2
0.4
0.6
0.8
1
1.2
1.4
2013 2012 2011 2010 2009
0.9
1.03
1.26
0.68
1.26
Quick Ratio
57

3. Debt Equity Ratio= Debt % Equity

Table 3: Debt Equity Ratio

Years 2013 2012 2011 2010 2009
Debt Equity
Ratio
0.07 0.07 0.01 0.07 0.07







Interpretation
The above graph represents the Debt Equity ratios of Maruti Suzuki Company
The above data is of five years i.e., 2008-09 to 2012-2013
From the above graph we observe that the Debt Equity ratios are stable up to 2012 in 2011
decreased and then increased and stable again.

0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
2013 2012 2011 2010 2009
0.07 0.07
0.01
0.07 0.07
Debt Equity Ratio
58

4. Inventory Turnover Ratio = Net sales % Inventories

Table 4: Inventory Turnover Ratio

Years 2013 2012 2011 2010 2009
Inventory
Turnover Ratio
23.68 19.81 25.88 30.47 30.46






Interpretation
The above graph represents the Inventory Turnover ratios of maruti Suzuki Company
The above data is of five years i.e., 2008-09 to 2012-2013
From the above graph we observe that the Inventory Turnover ratios are increasing as well as
decreasing.
0
5
10
15
20
25
30
35
2013 2012 2011 2010 2009
23.68
19.81
25.88
30.47
30.46
Inventory Turnover Ratio
59

5. Total asset turnover ratio = Sales and operating revenue Total assets

TABLE 5: Total asset turnover ratio
Years 2013 2012 2011 2010 2009
Total Asset
Turnover ratio
2.21 2.22 2.62 2.32 2.06




Interpretation
The above graph represents the Total Assets Turnover ratios of maruti Suzuki Company
The above data is of five years i.e., 2008-09 to 2012-2013
From the above graph we observe that the Total Assets Turnover ratios are increasing as well
as decreasing.


0
0.5
1
1.5
2
2.5
3
2013 2012 2011 2010 2009
2.21
2.22
2.62
2.32 2.06
Total assets Turnover Ratio
60

6. Fixed asset turnover ratio = cost of sales Net fixed assets

TABLE 6: Fixed asset turnover
Years 2013 2012 2011 2010 2009
Fixed Asset
Turnover ratio
2.25 2.46 3.14 2.82 2.38





Interpretation
The above graph represents the Fixed Assets Turnover ratios of Maruti Suzuki Company.
The above data is of five years i.e., 2008-09 to 2012-2013.
From the above graph we observe that the Fixed Assets Turnover ratios are increasing as
well as decreasing.


0
0.5
1
1.5
2
2.5
3
3.5
2013 2012 2011 2010 2009
2.25
2.46
3.14
2.82
2.38
fixed assets turnover ratio
61

7. Asset turnover ratio = Sales or revenues Total assets

TABLE 7: Asset turnover ratio
Years 2013 2012 2011 2010 2009
Asset Turnover
ratio
2.21 2.22 2.62 2.32 2.06




Interpretation
The above graph represents the Assets Turnover ratios of Maruti Suzuki Company.
The above data is of five years i.e., 2008-09 to 2012-2013.
From the above graph we observe that the Assets Turnover ratios are increasing as well as
decreasing.



0
0.5
1
1.5
2
2.5
3
2013 2012 2011 2010 2009
2.41
2.35
2.74
2.58
2.14
asset turnover ratio
62

8. Operating profit margin (%) = (operating profit net sales) *100

TABLE 8: Operating profit margin (%)
Years 2013 2012 2011 2010 2009
Operating profit
margin (%)
9.70 7.06 9.93 12.74 9.18




Interpretation
The above graph represents the Operating profit Margin of Maruti Suzuki Company.
The above data is of five years i.e., 2008-09 to 2012-2013.
From the above graph we observe that the Operating profit margins are increasing as well as
decreasing.



0
2
4
6
8
10
12
14
2013 2012 2011 2010 2009
9.7
7.06
9.93
12.74
9.18
operating profit margin(%)
63

9. Net profit margin (%) = (operating profit net sales) *100

TABLE 9: Net profit margin (%)
Years 2013 2012 2011 2010 2009
Net profit
margin (%)
5.38 4.49 6.16 8.34 5.72



Interpretation
The above graph represents the Net profit Margin of Maruti Suzuki Company.
The above data is of five years i.e., 2008-09 to 2012-2013.
From the above graph we observe that the Net profit margins are increasing as well as
decreasing.

0
1
2
3
4
5
6
7
8
9
2013 2012 2011 2010 2009
5.38
4.49
6.16
8.34
5.72
net profit margin(%)
64


CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 FINDINGS:

This company analysis done by me brought out many findings. I would like to state some from
them: Maruti Suzuki can be termed as a greater example for merging industries (Govt. &
foreign investments).
HRM:
Maruti Suzuki has finite recruiting and training procedures.
There are quality circles which can motivate employee and employer relationship.

MARKETING MANAGEMENT:
This segment is the initial cause for the sustainability of maruti as a leader in the market of
passenger cars.
Maruthi Suzuki conducts R&D, in developing marketing strategies and products, which are
near to customer preferences and tastes.

FINANCIAL MANAGEMENT:
As Maruti Suzuki is an company which consists of Indian governments capital, it follows
lawful and ethical practices impractically in accounting its finance.
This company at most reaches the standard ratio in every ratio every year.




65

5.2 SUGGESTIONS:

Maruti should improve its after sale service because its hits badly car market share.

Show room demonstration should be given at frequent time interval and feedback should be
considered positively.

The marketing managers should make better relations with dealers and reputation of the
company.

Customer considers quality as their first preference, so the company should give more stress on
this.









66


5.3 CONCLUSION:
I have analyzed the attached Balance Sheet of Maruti Suzuki India Limited(Formerly Maruti
Udyog Limited), as of Five years comparison and the related Profit and Loss Account and Cash
Flow Statement for the year ended on that dates Annexed thereto !
These financial statements are the Responsibility of the company's management.

My pleasure is to express an opinion on these financial statements based on analysis Those
Standards an analysis includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.

An analysis also includes assessing the accounting principles used and significant estimates,
marketing Techniques, HRM strategies, financial position of the Maruti Udyog Limited.

The company analysis done by me on Maruti Udyog Limited, sorted out that the automobile
industry in India is prosperous and growing with innovating technology Cars in the market
through different marketing strategies such as pricing strategy, products development etc.
Finally Maruti Udyog Limited has it financial trend in ascending order from previous four
years.

Thus, Maruti Udyog Limited, is counting its profits, and fulfilling the Social responsibility, by
making its tag line to be implemented.




67




BIBLIOGRAPHY

http://en.wikipedia.org/wiki/Maruti_Suzuki
http://www.moneycontrol.com/financials/marutisuzukiindia/balance-sheet/MS24
http://www.slideshare.net/nitishbaweja/hrm-maruti-suzuki#
http://www.slideshare.net/ashu4u06/recruitment-and-selection-5818906
http://www.slideshare.net/syedmushtaq/maruti-udyog
http://www.slideshare.net/navneetjingar/maruti-suzuki-a-brief-ppt-assignment
http://ijaiem.org/Volume2Issue5/IJAIEM-2013-05-17-036.pdf
http://www.businessdictionary.com/definition/distribution-strategy.html#ixzz2T3s4MWsu
http://www.scribd.com/doc/52392026/Maruti-Suzuki-Advertising-Strategies
http://www.businessdictionary.com/definition/distribution-strategy.html
http://www.slideshare.net/saurabhkumarlohal/marketing-strategy-of-maruti-suzuki
http://rajeshaithal.blogspot.in/2007/10/price-point-strategy_31.html
http://en.wikipedia.org/wiki/Marketing_strategy
http://www.marutisuzuki.com/Latest-Maruti-Company-Update.aspx
http://shodhganga.inflibnet.ac.in/bitstream/10603/3704/13/13_chapter%203.pdf
http://www.cardekho.com/Maruti/carmodels/pricerange
http://www.marutisuzuki.com/our-network.aspx