Brand Loyalty Maruti

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI
INTRODUCTION
The word Brand has its Origin in the Norwegian word Brand,
which means to burn. In ancient times, farmers used to put burn
marks as identification on lively stock to distinguish their
possessions.
A brand is defined as a name, term, sign, symbol (or)
special
design of these elements that is intended to identify the good (or)

service of one seller (or) a group of seller.
Additionally, it also means an inherent assurance to the customers
of quality. Many Consumer Products, besides their basic features,
need attractive packaging and a brand name. A brand is a symbol
or a mark that helps a customer in instant recall, differentiating it
there by from the competing products of a similar nature.
According to the American Marketing Association (AMA), A brand
name
is a part of a brand consisting of a word, letter,
group of words, or
letters to identify the goods or
services of a seller or group of sellers
and to
differentiate them from those of the competitors.David Ogilvy

defined a brand as The Consumers idea of a product.
Brand
A brand is the identity of a specific product, service, or business. A
brand can take many forms, including a name, sign, symbol, color
or slogan. The word brand began simply as a way to tell one
person's cattle from another by means of a hot iron stamp. A
legally protected brand name is called a trademark. The word

brand has continued to evolve to encompass identity - it affects
the personality of a product, company or service.
Concepts
A brand is the personality of a product, service or company and
how it relates to key constituencies: Customers, Staff, Partners,
and Investors etc. Some people distinguish the psychological
aspect of a brand from the experiential aspect. The experiential
aspect consists of the sum of all points of contact with the brand
and is known as the brand experience. The psychological aspect,
sometimes referred to as the brand image, is a symbolic
construct created within the minds of people and consists of all the
information and expectations associated with a product or service.
People engaged in branding seek to develop or align the
expectations behind the brand experience, creating the impression
that a brand associated with a product or service has certain
qualities or characteristics that make it special or unique. A brand
is therefore one of the most valuable elements in an advertising
theme, as it demonstrates what the brand owner is able to offer in
the marketplace. The art of creating and maintaining a brand is
called brand management. Orientation of the whole organization
towards its brand is called brand orientation.
Brand
loyalty,
commitment
to
in
marketing,
repurchase
or
consists
otherwise
of
a consumer's
continue
using
the brand and can be demonstrated by repeated buying of a

product or service, or other positive behaviors such as word of
mouth advocacy.

The extent of the faithfulness of consumers to a particular brand,
expressed
through
their
repeat purchases,
irrespective
of
the marketing pressure generated by the competing brands. Brand

loyalty is more than simple repurchasing, however. Customers may
repurchase a brand due to situational constraints (such as vendor
lock-in), a lack of viable alternatives, or out of convenience. Such
loyalty is referred to as "spurious loyalty". True brand loyalty exists
when customers have a high relative attitude toward the brand
which is then exhibited through repurchase behavior. This type of
loyalty can be a great asset to the firm: customers are willing to
pay higher prices, they may cost less to serve, and can bring new
customers to the firm.
Historical & Technical Background of Brands
Brands identify the source of market of a product and allow
consumers-either
responsibility
Consumers
to
may
individuals
a
particular
evaluate
the
or
organizations-to
manufacturer
identical
or
product
assign
distributor.
differently
depending on how it is branded. Consumers learn about brands

through past experiences with the product and its marketing
program. They find out which brands satisfy their needs and which
ones do not. As consumers lives become more complicated,
rushed, and time-starved, the ability of a brand to simplify
decisions making and reduce risk is invaluable.
Brands also perform valuable functions for firms. First, they
simplify product handling or tracing. Brands help to organize
inventory and accounting records. A brand also offers the firm
legal protection for unique features or aspects of the product. The
brand name can be protected through registered trademarks;
manufacturing processes can be protected through patents; and
packaging can be protected through copyrights and designs. These
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intellectual property rights ensure that the firm can safely invest in
the brand and reap the benefits of a valuable asset.
Brands can signal a certain level of quality so that satisfied buyers
can easily choose the product again. Brand loyalty provides
predictability and security of demand for the firm and creates
barriers to entry that make it difficult for other firms to enter the
market. Loyalty also can translate into a willingness to pay a
higher price often 20 to 25 percent more. Although competitors
may
easily
duplicate
manufacturing
processes
and
product
designs, they cannot easily match lasting impressions in the minds

of individuals and organizations from years of marketing activity
and product experience. In this sense, branding can be seen as a
powerful means to secure a competitive advantage.
To firms, brands thus represent enormously valuable pieces of
legal property that can influence consumer behavior, be sought
and sold, provide the security of sustained future revenues to their
owner. Large earning multiple have been paid for brands in
mergers or acquisitions, starting with the boom years of the mid1980s. The price premium is often justified on the basis of
assumptions of the extra profits that could be extracted and
sustained from the brands, as well as the tremendous difficulty
and expense of creating similar brands from scratch. Wall Street
believes that strong brands result in better earnings and profit
performance for firms, which, in turn, creates greater value for
shareholders. Much of the recent interest in brands by senior
management has been result of these bottom-line financial
considerations. Marketing Memo: The brand Report card lists 10
key characteristics based on a review of the worlds strongest
brands.

Maruti Suzuki Limited
was established in February 1981,
though the actual production commenced in 1983 with the Maruti

800, based on the Suzuki Alto kei car which at the time was the
only modern car available in India, its' only competitors- the
Hindustan Ambassador and Premier Padmini were both around 25
years out of date at that point. Through 2004, Maruti has produced
over 5 Million vehicles. Marutis are sold in India and various
several other countries, depending upon export orders. Models
similar to Marutis (but not manufactured by Maruti Suzuki) are sold
by Suzuki and manufactured in Pakistan and other South Asian
countries.
Global Brand
A global brand is one which is perceived to reflect the same
set of values around the world. Global brands transcend their
origins and create strong, enduring relationships with consumers
across countries and cultures.
Global brands are brands sold to international markets.
Examples
of
global
brands
include
Coca-Cola,
McDonald's,
Marlboro, Levi's etc.. These brands are used to sell the same
product
across
multiple
markets,
and
could
be considered
successful to the extent that the associated products are easily

recognizable by the diverse set of consumers.
Benefits of Global Branding
In addition to taking advantage of the outstanding growth
opportunities, the following drives the increasing interest in taking
brands global:
Economies of scale (production and distribution)

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Lower marketing costs
Laying the groundwork for future extensions worldwide
Maintaining consistent brand imagery
Quicker
identification
and
integration
of
innovations
(discovered worldwide)
Preempting international competitors from entering domestic

markets or locking you out of other geographic markets
Increasing international media reach (especially with the

explosion of the Internet) is an enabler
Increases in international business and tourism are also

enablers
Global Brand Variables

The following elements may differ from country to country:
Corporate slogan
Products and services
Product names
Product features
Positioning
Marketing mixes (including pricing, distribution, media and

advertising execution)
These differences will depend upon:
Language differences
Different styles of communication
Other cultural differences
Differences in category and brand development
Different consumption patterns
Different competitive sets and marketplace conditions
Different legal and regulatory environments
Different national approaches to marketing (media, pricing,

distribution, etc.)
Local Brand
A brand that is
sold and marketed (distributed and
promoted) in a relatively small and restricted geographical area. A

local brand is a brand that can be found in only one country or
region. It may be called a regional brand if the area encompasses
more than one metropolitan market. It may also be a brand that is
developed for a specific national market; however an interesting
thing about local brand is that the local branding is mostly done by
consumers then by the producers.
TYPES OF BRAND
Product
The most common brand is that associated with a tangible
product, such as a car or drink. This can be very specific or may
indicate a range of products. In any case, there is always a
unifying element that is the 'brand' being referred to in the given
case.
Individual product
Product brands can be very specific, indicating a single product,
such as classic Coca-Cola. It can also include particular physical
forms, such as Coca-cola in a traditional bottle or a can.

Product range
Product brands can also be associated with a range, such as the
Mercedes S-class cars or all varieties of Colgate toothpaste.
Service
As companies move from manufacturing products to delivering
complete solutions and intangible services, the brand is about
the 'service'.
Service brands are about what is done, when it is done, who does
it, etc. It is much more variable than products brands, where
variation can be eliminated on the production line. Even in
companies such as McDonald's where the service has been
standardized down to the eye contact and smile, variation still
occurs.
Consistency can be a problem in service: we expect some
variation, and the same smile every time can turn into an
annoyance as we feel we are being manipulated. Service brands
need a lot more understanding than product brands.
Organization
Organizations are brands, whether it is a company that delivers
products and services or some other group. Thus Greenpeace,
Mercedes and the US Senate are all defined organizations and
each has qualities associated with them that constitute the
brand.
In once sense, the brand of the organization is created as the
sum of its products and services. After all, this is all we can see
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and experience of the organization. Looking at it another way,
the flow also goes the other way: the intent of the managers of
the organization permeates downwards into the products and the
services which project a common element of that intent.
Person
The person brand is focused on one or a few individuals, where
the branding is associated with personality.
INDIVIDUAL
A pure individual brand is based on one person, such as celebrity
actor or singer. The brand can be their natural person or a
carefully crafted projection.
Politicians work had to project a brand that is attractive to their
electorate (and also work hard to keep their skeletons firmly in
the cupboard). In a similar way, rock stars who want to appear
cool also are playing to a stereotype.
Group
Not much higher in detail than an individual is the brand of a
group. In particular when this is a small group and the individuals
are known, the group brand and the individual brand overlap, for
example in the way that the brand of a pop group and the brand
of its known members are strongly connected.
Organizations can also be linked closely with the brand of an
individual, for example Virgin is closely linked with Richard
Branson.

Event
Events have brands too, whether they are rock concerts, the
Olympics, a space-rocket launch or a town-hall dance.
Event brands are strongly connected with the experience of the
people
attending,
for
example
with
musical
pleasure
or
amazement at human feats.

Product, service and other brands realize the power of event
brands and seek to have their brands associated with the event
brands. Thus sponsorship of events is now big business as one
brand tries to get leverage from the essence of the event, such
as excitement and danger of car racing.
Geography
Areas of the world also have essential qualities that are seen as
characterizations, and hence also have brand. These areas can
range from countries to state to cities to streets and buildings.
Those who govern or represent these geographies will work hard
to develop the brand. Cities, for example, may have de-facto
brands of being dangerous or safe, cultural or bland, which will
be used by potential tourists in their decisions to visit and by
companies in their decisions on where to set up places of
employment
MARUTI SUZUKI holds a good name and fame in the market in its
long run. With lots of changes and adoptions the company has
established a brand image in the market.
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NEED FOR THE STUDY

The motive of any company generally is to acquire larger market
share, high % of sales in the industry; this could be only achieved
by building a higher % of brand loyal customers.
Any company can survive if there is computational activity in the
market and brand loyal customers. Today many major companies
in the market try to maintain and improve their branded equity
without creating proper brand awareness they can not build brand
image.
The 4 Wheeler industry has been expanding rapidly these days
have gone to feel possessing a four wheeler is a luxury and also
viewed as necessary. This industry has customers, ranging from all
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demographic segments. It has been common signals that even
college going students are using 4 wheelers.
The motive of the company generally is to acquire longer market
system and high % of sales by industry this could be only achieved
by building higher brand loyal customer
Any company can survive if there is computerize zonal activity in
the market and the brand loyalty customers. Today many major
companies in the market try to maintain and improve the brand
equity without creating a proper brand awareness they cannot
build brand image strong brands help build the corporate image
and also buy marketing it eager for the launch a new brand
therefore this concept of brand loyalty requires detailed study.
REVIEW OF LITERATURE
Marcel Gommans, Krish S. Krishnan & kartrin B.Scheffold (2001)in
her study from brand loyalty to E-Loyalty conceptual frame work
,disused about brand loyalty they felt that with rapid growth of E
commerce and online consumers shopping trends the importance
of building and maintaining customer loyalty in electronic market
place has come in to shaper focus in marketing theory and
practice .this paper integrates previous research in the field of the
brand loyalty to present a conceptual frame work E-Loyalty and
its understanding drives implications for e marketing practice and
future research directions also presented.
The concept of brand loyalty has sparked renewed interest in
resent years this seams to echo the emergency of relationship
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marketing (Morais, Dorsch and Backman2005) ,which emphasizes
the importance of establishing relationship between customers
and 6 businconsistently criticized for lacking theoretical grounding
and conceptual depth it is particularly disquieting that no
consensus has been reached on what loyalty is? that is what
component should be include when conceptualized measuring
customers brand loyalty and where to drawn the line between
loyalty and its outcomes. more ever the vast majority of previous
loyalty have focused on goods while the advent of the service
economy(gummerssom,2002)or
experience
economy(pine&Gilmore,1999)has called for the more and services

and therefore this study seeks to systematically examine the
conceptual domino structure of brand loyalty in eService context
What is Brand Loyalty?

Brand loyalty is a consumers preference to buy a particular brand
in a product category. It occurs because consumers perceive that
the brand offers the right product features, images. or
level of
quality at the right price.

There Are Three Main Reasons why Brand Loyalty is
important
1) Higher Sales Volume:
The average United States Company loses half of its customers
every five years, equating to 13% annual loss of customers. This
statistic illustrates the challenges companies face when trying to
13

grow
in
competitive
environments.
2) Premium Price Ability:

Studies show that as brand loyalty increases consumers are less
sensitive to price changes. Generally they are willing to pay more
for their preferred brand because they perceive some unique value
in brand that other alternatives do not provide.
3) Retain Rather Than seek:
Brand Loyalists are willing to search for their favorite brand and
are less sensitive to competitive promotions. The result is lower
costs for advertising marketing and distribution. Specifically it
costs four to six times as much to attract a new customer as it
does
to
retain
an
old
one.
Loyalty programs are structured marketing efforts that reward, and

therefore encourage, loyal buying behavior behavior which is
potentially of benefit to the firm.
In marketing generally and in retailing more specifically, a loyalty
card, rewards card, points card, advantage card, or club card is a
plastic or paper card, visually similar to a credit card or debit card,
which identifies the card holder as a member in a loyalty program.
Loyalty cards are a system of the
loyalty business model.
Best Buy's loyalty program similarly offers points redeemable for

dollar-amount discounts after accumulating a set number of points
along with other discounts from time to time, though the card is
not required to receive their advertised price in most cases.
Independent hardware stores such as Ace Hardware and True Value
added customer loyalty programs in order to compete more
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effectively against larger chains as well as gather customer data.
In addition, office supply retailers Staples, Inc. and Office Depot
started issuing club cards in 2005.
The three largest loyalty programs are Link Points:- World
Card (aggregate program of Gentling Resorts, Sundeck City Mall,
Star Cruises & Indigos)and SAFRA Card.
The Link Points Programmer has more than 1 million members and
over 600 participating merchant outlets.
Friends card is a loyalty card for Shoppers of Centro Department
Stores. The Body Shop People card is the loyalty card for The Body
Shop stores in Indonesia. Other notable programs in Asia include
Kris Flyer, the Singapore Airlines rewards program, and Asia Miles,
which was part of Cathay Pacific.
India-mint is India's largest coalition loyalty program, with
approximately
5 million
members.[ BPCL's
PetroBonus
is
pioneering program and also one of the largest in the country with
about 2 million members for the fuel card program. It also has
variants for fleets and convenience store customers. Likewise IOC's
Fleet Card Program XTRAPOWER has recently crossed 1 million
mark. IOC has launched a loyalty program XTRAREWARDS for
Retail Customers.
The Maruti Suzuki Auto CAD, launched in association with Citibank
and Indian Oil had 370,000 cardholders as at October 2008.
Program management
Across the globe loyalty programs are increasingly finding the
need to outsource strategic and operational aspects of their
programs, given the size and complexity a loyalty program entails.
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Program managers are typically agencies with specialist skills in
loyalty consulting, creative and communication, data analytics,
loyalty software, and back end operations.
To some, participating in a loyalty program (even with a fake or
anonymous card) funds activities that violate privacy. There has
also been concern expressed regarding RFID technology being
introduced to loyalty cards.
Loyalty and credit card reward plans might be viewed as modern
day examples of a kickback. An employee who needs to buy
something (such as a hotel room or an airline flight) for a business
trip but who has discretion to decide which airline or hotel chain
foots strengthens its brand loyalty program by re launching.
Emphasizing on brand-awareness campaigns, loyalty programs,
and assistance with local end-user events
How do you plan to empower your channel network in India?
Watch Guard has a strong channel network and we are closely
working with our professional and expert partners to strengthen
their business, increase the attach rate of security subscriptions,
and grow as they grow.
Understanding and cultivating luxury consumer loyalty is critical
now for dealing with economic downturn. Luxury marketers today
face an increasingly resistant consumer, one who is less likely to
splurge and increasingly immune to advertising focused on image
and prestige. 'The fact is today's affluent consumer is less likely to
give a new brand a chance,' says Pam Danziger, author of the new
book, Shopping: Why We Love It and How Retailers Can Create the
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Ultimate
Customer
Experience.
'It is in tough times like these where marketers are rewarded for
their investment in brand loyalty programs. A brand loyal customer
is one who buys your brand more frequently and spends more
when
they
do,'
Danziger
explains.
For luxury brands that haven't yet taken steps to build a brand
loyalty program, it isn't too late. But before you start printing
membership cards and issuing points, take a step back. Only the
best constructed and most strategic loyalty programs are capable
of encouraging affluent consumers to come back to your brand
time
and
again.
'Over three-quarters of all luxury consumers are members of at

least one loyalty program, so these programs have a powerful
appeal to affluent. What luxury brands and retailers need to learn
are the key attributes of their brand as viewed by their customers
so that they can design their loyalty program to appeal to their
unique
customer
base,'
says
Danziger.
In this new study on loyalty programs, those who design, market,

and sell luxury goods and services will get the facts to support
developing a loyalty program for their brand, or at the very least to
conduct serious due diligence on implementing a program.
'Deciding to offer a loyalty program is the easy part. However,
understanding what makes these programs attractive to luxury
consumers can mean the difference between cultivating an
enthusiastic repeat customer and simply becoming another plastic
17

key
fob
or
card
18
in
the
wallet,'
says
Danziger.

SCOPE OF THE STUDY
Brand loyalty of beliefs held a specific brand. In short, it is nothing
but the customers perception about the product. It is the manner
in which a specific brand is positioned in the market. Brand
loyalties emotional value and not just a mental loyalty is nothing
but an organizations character. It is an accumulation of contact
and observation by people external to an organization. It should
highlight an organizations mission and vision to all.
The main
elements
reflecting
of
positive
brand
loyalty
que
logo
organizations image, slogan describing organizations business in

brief and brand identifier supporting the key value. If the concept
of Brand is ignored in the present days of competitive world, the
survival of companies will be very difficult.
As such a study is
required to probe into the concepts of Brand loyalty.
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OBJECTIVES OF THE STUDY

The study has been conducted with followings objectives.
1. To study about
attitude demographical factors of Maruti
customers
2. To analyzing the factor influencing the Purchase of Maruti
Brand
3. To assess the Customer Satisfaction with Maruti 4 Wheelers
4. To study brand loyalty with the service of Mithra Agencies
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RESEARCH METHODOLOGY
RESEARCH PROBLEM
Since Maruti is one for the most popular brands in India , there is a
high need to understand whether the customers are loyal to the
brand and have any kind of influence from its awareness.
Retaining customers is the main objectives of any company, so a
study to understand the influence of brand awareness seems to be
not going vain.
HYPOTHESIS OF THE STUDY:
Ho: The annual income of the customer and their brand awareness
of Maruti Suzuki are independent
Ho: Annual Income of the customer and their decision of buying
Maruti Suzuki brand car are independent
DATE SOURCE:
The data for the study will be collected both from primary and
secondary sources. A well defined questionnaire will be distributed
to the customers, together required information. Data will be also
be collected through books, journals and will be conducted
websites.
SAMPLE SIZE:-
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A survey among 100 customers who will be selected based on
convenience sampling.
PERIOD OF THE STUDY:
The survey was conducted for a period of i.e., from April 2015to
May 2015 (45 days)
TOOLS OF ANALYSIS:
Chi-squire test will be used for testing the hypothesis.
x 2 (O E )2 / E
Where O = observed frequencies
E = expected frequencies
Degree of freedom (V) = n-k
n = number of frequencies classes.
K = number of independents constrains.
For a contingency table with rno. of rows and c of
columns.
The degree of freedom is
r = (r-1) (c-1)
Divide (O-E) 2 with the expected frequency.
Obtain
(O E )2 / E
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OPERATIONAL DEFINITION:
BRAND AWARENESS:
Brand Awareness of the ability of a potential buyer to
recognize /recall that a brand is part of a product category
BRAND VALUE:Brand value is functions of the customer perception, his /
her attitude towards it, and the economic value (or) price that that
the customer attaches to the brand.
PERCEIVED QUALITY:
Perceived quality is the bench mark by which the customer
evaluate different brand on quality.
BRAND STRATEGY:
Brand strategy is a set of actions deliberately chosen after a
careful evaluation of alternatives, to help the strategist actualize
his vision and achieve brand long-term objectives.
BRAND ASSOCIATIONS:
Invariably are brands come to acquire a meaning in the mind of
the customers. Customer association different dimensions of the
product, including its use and use situations to the brands.
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CO- BRANDING:
Co-branding effort in todays marketing era is that of Intel and
computer manufacturers around the world, which created strong
brand awareness and identify for Intel.
LIMITATIONS OF THE STUDY
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The sample size is restricted under response only.
Due to certain constrains, the survey is limited to the Twin

Cities Hyderabad and Secunderabad.
The survey can not be generalized to rural areas as it is

limited to twin cities only.
As brand loyalty is intangible the measurement was difficult
The comparison between Mithra Agencies and other dealers

has not been made due to the flack of information.
New customers who bought the four wheelers recently were

not aware of services offered
Analysis is based on the information given by the customers.
INDUSTRY PROFILE
Automobile Industry
History:
25
In the year 1769, a French engineer by the name of Nicolas

J. Cugnot invented the first automobile to run on roads. This
automobile, in fact, was a self-powered, three-wheeled, military
tractor that made the use of a steam engine. The range of the
automobile, however, was very brief and at the most, it could only
run at a stretch for fifteen minutes. In addition, these automobiles
were not fit for the roads as the steam engines made them very
heavy and large, and required ample starting time. Oliver Evans
was the first to design a steam engine driven automobile in the
U.S.A Scotsman, Robert Anderson, was the first to invent an
electric carriage between 1832 and 1839. However, Thomas
Davenport of the U.S.A. and Scotsman Robert Davidson were
amongst the first to invent more applicable automobiles, making
use of non-rechargeable electric batteries in 1842. Development of
roads made travelling comfortable and as a result, the short
ranged, electric battery driven automobiles were no more the best
option for travelling over longer distances.
The Automobile Industry finally came of age with Henry Ford in
1914 for the bulk production of cars. This lead to the development
of the industry and it first begun in the assembly lines of his car
factory. The several methods adopted by Ford, made the new
invention (that is, the car) popular amongst the rich as well as the
masses.
According the History of Automobile Industry US, dominated the
automobile markets around the globe with no notable competitors.
However, after the end of the Second World War in 1945, the
Automobile Industry of other technologically advanced nations
such as Japan and certain European nations gained momentum
and within a very short period, beginning in the early 1980s, the
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U.S Automobile Industry was flooded with foreign automobile
companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry reveal
that in the developed countries the Automobile Industries are
stagnating as a result of the drooping car markets, whereas the
Automobile Industry in the developing nations, such as, India and
Brazil, have been consistently registering higher growth rates
every passing year for their flourishing domestic automobile
markets.
The
automotive
industry
designs,
develops,
manufactures,
markets, and sells the world's motor vehicles. In 2008, more than
70 million motor vehicles, including cars and commercial vehicles
were produced worldwide.
In 2007, a total of 71.9 million new automobiles were sold
worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4
million in USA and Canada, 4.4 million in Latin America, 2.4 million
in the Middle East and 1.4 million in Africa. The markets in North
America and Japan were stagnant, while those in South America
and other parts of Asia grew strongly. Of the major markets,
Russia, Brazil, India and China saw the most rapid growth.
About 250 million vehicles are in use in the United States.
Around the world, there were about 806 million cars and light
trucks on the road in 2007; they burn over 260 billion gallons of
gasoline and diesel fuel yearly. The numbers are increasing rapidly,
especially in China and India.
transport
systems
based
In the opinion of some, urban
around
the
car
have
proved
unsustainable, consuming excessive energy, affecting the health of

populations, and delivering a declining level of service despite
increasing investments. Many of these negative impacts fall
disproportionately on those social groups who are also least likely
27

to own and drive cars.
The sustainable transport movement
focuses on solutions to these problems.

In 2008, with rapidly rising oil prices, industries such as the
automotive industry, are experiencing a combination of pricing
pressures from raw material costs and changes in consumer
buying habits. The industry is also facing increasing external
competition from the public transport sector, as consumers reevaluate their private vehicle usage. Roughly half of the US's fiftyone light vehicle plants are projected to permanently close in the
coming years, with the loss of another 200,000 jobs in the sector,
on top of the 560,000 jobs lost this decade. Combined with robust
growth in China, in 2009, this resulted in China becoming the
largest automobile market in the world.
Indian Automobile History
The origin of automobile is not certain. In this section of
automobile history, we will only discuss about the phases of
automobile in the development and modernization process since
the first car was shipped to India. We will start automotive history
from this point of time.
The automobile industry has changed the way people live
and work. The earliest of modern cars was manufactured in the
year 1895. Shortly the first appearance of the car followed in India.
As the century truned, three cars were imported in Mumbai (India).
Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years
when the first wheel was used for transportation in India. In the
beginning of 15th century Portuguese arrived in China and the
interaction of the two cultures led to a variety of new technologies,
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including the creation of a wheel that turned under its own power.
By 1600s small steam-powered engine models was developed, but
it took another century before a full-sized engine-powered vehicle
was created.
The actual horseless carriage was introduced in the year
1893 by brothers Charles and Frank Duryea. It was the first
internal-combustion motor car of America, and it was followed by
Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the
1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder
engine, leather interior, folding windscreens and hood, and an
aluminum body. It was usually driven by chauffeurs and emphasis
was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements
such as balloon tires, pressed-steel wheels, and four-wheel brakes.
Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine
and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rearhinged back door that suited more to the needs of families. In
1930s, vehicles were less boxy and more streamlined than their
predecessors. The 1940s saw features like automatic transmission,
sealed-beam headlights, and tubeless tires. The year 1957 brought
powerful high-performance cars such as Mercedes-Benz 300SL. It
was built on compact and stylized lines, and was capable of 230
kmh (144 mph).
This was the Indian automobile history, and today modern
cars are generally light, aerodynamically shaped, and compact.
Emerging India Auto market
India auto market is a promising industrial sector that is growing
immensely every passing year. Passenger cars are referred to,
29

through use of word "automobile." Whooping growth experienced
by Indian auto market in last financial year itself that is financial
year end in February, 2007 was very close to a 18 percent over
previous fiscal. This statistical fact is a glittering example of
potential of growing auto industry in India.
As per survey conducted by Society of Indian Auto Manufacturers,
total number of automobiles manufactured by auto industry in
India, throughout financial year 2006-07, was very close to 15.5
lakh (1.5 million) margin. Huge of number of automobiles
manufactured by auto industry in India was an enormous growth
upon number of autos manufactured during previous fiscal, that
ended in 2006.
Total number of cars that were exported from India were very close
to 2.0 lakh (2.0 hundred thousand) margin, an encouraging sign
for auto industry in India. Export of cars manufactured in India
comprised nearly 13 percent of total number of cars manufactured
domestically by auto industry in India.
India auto market looks set to prosper, largely due to growing
market for automobiles that is developing in India. In financial year
that ended in February, 2004, Indian auto markets were fastest
growing in world, with registered growth rate touching nearly 20
percent.
Auto industry in India mainly comprises of small car section, which
enjoys nearly a 2/3rd market share of entire market for autos in
India. In this respect, Indian markets are largest in world for small
cars, behind Japan.
The 4 wheelers industry is passing through is passing through a

critical but interesting phase. For many years, it was growing
continuously but the turning point came in 1996 Feb., when it
30

started slowing down. The impact was rally felt in the next year
when the overall growth was hardly 10%. This was also possible
only because, the cars segment showed a healthy growth of 50%.
The net result is that is that Maruti cars now account for 62% of
the 4 wheelers market in April, May & June 2015.The Varun
Motors Ltd. mainly is the only dealers of the mature Branded cars.
NEW SEGMENTS
A step through segment like Maruti alto, ZEN, VERSA and
WAGONR,A-star and SX-4 .
DRAMATIC CHANGES
The new products have contributed to 35% of the growth and
helped the producers improve their bottom line. The coming years
will see increasing competition due to the priority in products in
products and prices. The only differentiate will be technology,
quality, product range and service.
Imaginative market will emphasize relationship building and
customer satisfaction. New techniques such as direct marketing
and institutional sales are being explorer by all. Some of them are
taking the vehicle actually to the customers door step. Now the
customer
is
king.
Luxury
cars,
Passenger
cars
&
Multipurpose/Commercial cars. Product range from MUL had offers

different cars of all these classifications, i.e., Bale no & Esteem
Cares in luxury days, M-800, ALTO, ZEN, WAGON-R falls in
passenger cars, while OMNI, VERSA & GYPSY for multipurpose /
commercial cars. According to MUL managing director Jagdish
Khattar, Swift has been positioned on theaspirationalplank for
young Indians.
31
COMPANY PROFILE
HISTORY:
Maruti Udyog Limited (MUL) was established as a private limited
company in India on February 1981, through an Act of Parliament
to meet the growing demand of a personal mode of transport
caused by the lack of an efficient public transport system. MUL is
wholly owned by the Govt. of India at the time of its birth.
Suzuki Motor Company was chosen from seven prospective
partners world wide. This was due not only to their undisputed
leadership in small cars but also to their commitment to actively
bring to MUL contemporary technology and Japanese management
practices (which had catapulted Japan over USA to the status of
the top auto manufacturing country in the world)
MUL was classified in the Public Sector as long as the equity of
Government of India remained over 51% . A license and a Joint
Venture agreement were signed between Govt. of India and Suzuki
Motor Company (now Suzuki Motor Corporation of Japan) in Oct
1982, with Suzuki Motor Corporation (SMC) acquiring 26% of the
equity. This newly formed organisation was given the primary
objectives of:
Modernizing the Indian Automobile Industry by bringing in the
latest technology Production of fuel- efficient vehicles to conserve
32

scarce resources. Production of a large number of motor vehicles
which is necessary for economic growth. Maruti created history by
going into production in a record 13 months. On 14 December
1983, the then Prime Minister of India. Mrs. Indira Gandhi released
the first Vehicle for sale by handing over the keys of a Maruti 800
to Mr. Harpal Singh of Delhi.
Maruti exceeded the volume targets, and in March 1994, it became
the first Indian Company to produce over one million vehicles, a
landmark yet to be achieved by any other car company in India.
Maruti is the highest volume cat manufacture in Asia, outside
Japan and Korea, having produced over 4 million vehicles by April
2003.
Maruti revolutionized the way Indians looked at cars.
VISION, VALUES & ETHOS OF MUL:

MUL Vision is to be a leader in the Indian Automobile Industry,
Creating Customer Delight and Shareholders Wealth, transforming
Maruti to be a pride of India.
The Core values of MUL are customer Obsession, Fast, Flexible
and First Mover, Innovation and Creativity, Networking and
Partnership
Openness
and
Learning,
Quality
Systems
and
Consumer Satisfaction through Continuous Improvement of our

Products and Services by following PDCA (PLAN-DO-CHECK-ACT) in
all functions of our organization.
At Maruti, the approach to quality is in keeping wit the Japanese
practice build it into the product. Technicians themselves
inspect the quality of work. Supervisors educate and instruct
technicians to continually improve productivity and quality. The
33

movement of quality indicators is reviewed in weekly meetings by
the top management
MUL believes that its employees are its greatest strength and
asset. It is this underlying philosophy that has molded the
workforce at Maruti into a team with common goals and
objectives. The Employee- Management relationship is therefore
characterized by Participative Management, Team work & Kaizen
communication and information sharing.
Open office culture for easy accessibility
To implement this philosophy, several measures have been
adopted like, a flat organizational structure. There are only three
levels of responsibilities ranging from the Board of Directors,
Division Heads to Department Heads. Other visible features of this
philosophy are an open office, common uniforms (at all levels), and
a common canteen.
MARUTI SUZUKI
Industry
Automotive
1981
(as
Founded
Maruti
Udyog
Limited)
Headquarte
rs
Key people
Products
Revenue
Parent
34
New Delhi, India

Mr.
Shinzo
Nakanishi,
Managing Director and CEO

Automobiles
US$4.8 billion (2015)
Suzuki Motor Corporation
Maruti Suzuki India Limited (NSE: MARUTI, BSE: 532500) a

partial subsidiary of Suzuki Motor Corporation of Japan, is India's
largest passenger car company, accounting for over 45% of the
domestic car market. The company offers a complete range of cars
from entry level Maruti 800 and Alto, to hatchback Ritz, A star,
Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility
vehicle Grand Vitara.
It was the first company in India to mass-produce and sell more
than a million cars. It is largely credited for having brought in an
automobile revolution to India. It is the market leader in India and
on 17 September 2007, Maruti Udyog Limited was renamed
Maruti Suzuki India Limited. The company's headquarters are
located in New Delhi.
Maruti Suzuki is India and Nepal's number one leading automobile
manufacturer and the market leader in the car segment, both in
terms of volume of vehicles sold and revenue earned. Until
recently, 18.28% of the company was owned by the Indian
government,
and
54.2%
by
Suzuki
of
Japan.
The
BJP-led
government held an initial public offering of 25% of the company

in June 2003. As of 10 May 2007, Govt. of India sold its complete
share to Indian financial institutions. With this, Govt. of India no
longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981,
though the actual production commenced in 1983 with the Maruti
800, based on the Suzuki Alto key car which at the time was the
only modern car available in India, its only competitors- the
Hindustan Ambassador and Premier Padmini were both around 25
35

years out of date at that point. Through 2004, Maruti Suzuki has
produced over 5 Million vehicles. Maruti Suzukis are sold in India
and various several other countries, depending upon export
orders. Models similar to Maruti Suzukis (but not manufactured by
Maruti
Udyog)
are
sold
by
Suzuki
Motor
Corporation
and
manufactured in Pakistan and other South Asian countries. The

company annually exports more than 50,000 cars and has an
extremely large domestic market in India selling over 730,000 cars
annually. Maruti 800, till 2004, was the India's largest selling
compact car ever since it was launched in 1983. More than a
million units of this car have been sold worldwide so far. Currently,
Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is
the largest selling in A2 segment.
Due to the large number of Maruti 800s sold in the Indian market,
the term "Maruti" is commonly used to refer to this compact car
model ("Maruti" is another name of the Hindu god, Hanuman).
Maruti Suzuki has been the leader of the Indian car market for over
two decades. Its manufacturing facilities are located at two
facilities Gurgaon and Manesar south of Delhi. Maruti Suzukis
Gurgaon facility has an installed capacity of 350,000 units per
annum. The Manesar facilities, launched in February 2007
comprise a vehicle assembly plant with a capacity of 100,000 units
per year and a Diesel Engine plant with an annual capacity of
100,000
engines
and
transmissions.
Manesar
and
Gurgaon
facilities have a combined capability to produce over 700,000 units

annually.
More than half the cars sold in India are Maruti Suzuki cars. The
company is a subsidiary of Suzuki Motor Corporation, Japan, which
36

owns 54.2 per cent of Maruti Suzuki. The rest is owned by public
and financial institutions. It is listed on the Bombay Stock
Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024
were exported. In all, over six million Maruti Suzuki cars are on
Indian roads since the first car was rolled out on 14 December
1983.
Maruti Suzuki offers 14 models, Maruti 800, Alto, WagonR, Estilo,
A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand
Vitara, Kizashi. Swift, Swift Drier, A-star and SX4 are manufactured
in Manesar, Grand Vitara and Kizashi are imported from Japan as
completely
built
units(CBU),
remaining
all
models
are
manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader
in mini and compact cars for three decades. Suzukis technical
superiority lies in its ability to pack power and performance into a
compact, lightweight engine that is clean and fuel efficient.
Nearly 75,000 people are employed directly by Maruti Suzuki and
its partners. It has been rated first in customer satisfaction among
all car makers in India from 1999 to 2009 by J D Power Asia Pacific.
While the major companies were personally represented in the
initial rounds of discussion, Osamu Suzuki, Chairman and CEO of
the company ensured that he was present in all the rounds of
discussion. Osamu in an article writes that it subtly massaged their
(Indian delegation's) egos and also convinced them about the
sincerity of Suzuki's bid. Suzuki in return received a lot of help
from the government in such matters as import clearances for
37

manufacturing equipment (against the wishes of the Indian
machine tool industry then and its own socialistic ideology), land
purchase at government prices for setting up the factory Gurgaon
and reduced or removal of excise tariffs. This ensured that Suzuki
conscientiously nursed Maruti Suzuki through its infancy to
become one of its flagship ventures.
Maruti Suzuki's A-Star vehicle during its unveiling in Pragati
Maidan, Delhi. A-Star, Suzuki's fifth global car model, was designed
and is made only in India. [6] Besides being Suzuki's largest
subsidiary in terms of car sales, Maruti Suzuki is also Suzuki's
leading research and development arm outside Japan
Relationship between the Government of India, under the United
Front (India) coalition and Suzuki Motor Corporation over the joint
venture was a point of heated debate in the Indian media till
Suzuki Motor Corporation gained the controlling stake. This highly
profitable joint venture that had a near monopolistic trade in the
Indian automobile market and the nature of the partnership built
up till then was the underlying reason for most issues. The success
of the joint venture led Suzuki to increase its equity from 26% to
40% in 1987 and further to 50% in 1992. In 1982 both the venture
partners had entered into an agreement to nominate their
candidate for the post of Managing Director and every Managing
Director will have tenure of five years
Initially R.C.Bhargava was the managing director of the company
since the inception of the joint venture. Till today he is regarded as
instrumental for the success of Maruti Suzuki. Joining in 1982 he
held several key positions in the company before heading the
company as Managing Director. Currently he is on the Board of
38

Directors.[8] After completing his five year tenure, Mr. Bhargava
later assumed the office of Part-Time Chairman. The Government
nominated Mr. S.S.L.N. Bhaskarudu as the Managing Director on 27
August 1997. Mr. Bhaskarudu had joined Maruti Suzuki in 1983
after spending 21 years in the Public sector undertaking Bharat
Heavy Electricals Limited as General Manager. Later in 1987 he
was promoted as Chief General Manager, 1988 as Director,
Productions and Projects, 1989 Director, Materials and in 1993 as
Joint Managing Director.
Suzuki Motor Corporation didn't attend the Annual General Meeting
of the Board with the reason of it being called on a short notice.
Later Suzuki Motor Corporation went on record to state that Mr.
Bhaskarudu
was
"incompetent"
and
wanted
someone
else.
However, the Ministry of Industries, Government of India refuted

the charges. Media stated from the Maruti Suzuki sources that
Bhaskarudu was interested to indigenise most of components for
the models including gear boxes especially for Maruti 800. Suzuki
also felt that Bhaskarudu was a proxy for the Government and
would not let it increase its stake in the venture. [10] If Maruti Suzuki
would have been able to indigenise gear boxes then Maruti Suzuki
would have been able to manufacture all the models without the
technical assistance from Suzuki. Till today the issue of localization
of gear boxes is highlighted in the press.
The relation strained when Suzuki Motor Corporation moved to
Delhi High Court to bring a stay order against the appointment of
Mr. Bhaskarudu. The issue was resolved in an out-of-court
settlement and both the parties agreed that R S S L N Bhaskarudu
would serve up to 31 December 1999, and from 1 January 2000,
Jagdish Khattar, Executive Director of Maruti Udyog Limited would
39

assume charges as the Managing Director. [12] Many politicians
believed, and had stated in parliament that the Suzuki Motor
Corporation is unwilling to localize manufacturing and reduce
imports. This remains true, even today the gear boxes are still
imported from Japan and are assembled at the
For most of its history, Maruti Udyog Limited had relatively few
problems with its labour force. Its emphasis of a Japanese work
culture and the modern manufacturing process, first instituted in
Japan in the 1970s, was accepted by the workforce of the company
without any difficulty. But with the change in management in 1997,
when it became predominantly government controlled for a while,
and the conflict between the United Front Government and Suzuki
may have been the cause of unrest among employees. A major
row broke out in September 2000 when employees of Maruti
Udyog Ltd (MUL) went on an indefinite strike, demanding among
other things, revision of the incentive scheme offered and
implementation of a pension scheme. Employees struck work for
six hours in October 2000, irked over the suspension of nine
employees, going on a six-hour tools-down strike at its Gurgaon
plant,
demanding
revision
of
the
incentive-linked
pay
and
threatened to fast to death if the suspended employees were not

reinstated. About this time, the NDA government, following a
disinvestments policy, proposed to sell part of its stake in Maruti
Suzuki in a public offering. The Staff union opposed this sell-off
plan on the grounds that the company will lose a major business
advantage of being subsidized by the Government.
The standoff with the management continued to December with a
proposal by the management to end the two-month long agitation
rejected with a demand for reinstatement of 92 dismissed workers,
40

with four MUL employees going on a fast-unto-death. In December
the company's shareholders met in New Delhi in an AGM that
lasted 30 minutes. At the same time around 1500 plant workers
from the MUL's Gurgaon facility were agitating outside the
company's
corporate
office
demanding
commencement
of
production linked incentives, a better pension scheme and other

benefits. The management has refused to pass on the benefits
citing increased competition and lower margins.
ORGANISATIONAL
Chairman-
Managing Director and CEO
STRUCTURE
Mr. R. C. Bhargava
Mr. Shinzo Nakanishi
Director
Mr. Manvinder Singh Banga
Director
Mr. Amal Ganguli
Director
Mr. D. S. Brar
Director
Mr. Keiichi Asai
Director
Ms. Pallavi Shroff
Director
Mr. Osamu Suzuki
Director
Mr. Shuji Oishi
41

Director
Mr. Kenichi Ayukawa
Director and Managing Executive Officer (Production) Tsuneo Ohash
CAR MODEL
MODEL-SHOW ROOM PRICE
Maruti Suzuki 800

RS. 1,98,466
Maruti Suzuki Omni

Rs. 2,13,615
Maruti Suzuki Alto

Rs. 2,33,172
42
Mr.

Maruti Suzuki Eeco
Rs. 2,95,194
Maruti Suzuki Zen Estilo

Rs. 3,36,125
Maruti Suzuki Wagon R 1.0

Rs. 3,44,110
Maruti Suzuki A-Star

Rs. 3,67,392
Maruti Suzuki Ritz

Rs. 4,13,130
Maruti Suzuki Swift

Rs. 4,32,891
Maruti Suzuki Swift Dzire

Rs. 5,05,346
43
Maruti Suzuki Gypsy

Rs. 5,63,223
Maruti Suzuki SX4

Rs. 7,18,531
Maruti Suzuki Kizashi

Rs. 16,86,411
Maruti Suzuki Grand Vitara

Rs. 17,33,133
Manufactured locally
1. 800 (Launched 1983)
2. Omni (Launched 1984)
3. Gypsy (Launched 1985)
4. WagonR (Launched 2002)
5. Alto (Launched 2000)
6. Swift (Launched 2005)
7. Estilo (Launched 2009)
44

8. SX4 (Launched 2007)
9. Swift DZire (Launched 2008)
10.
A-star (Launched 2008)
11.
Ritz (Launched 2009)
12.
Eeco (Launched 2010)
13.
Alto K10(Launched 2010)
14.
Suzuki Grand Vitara (Launched 2007
15.
Kizashi (Launched 2015)
Discontinued car models

1. 1000 (19901994)
2. Zen (19932006)
3. Esteem (19942008)
4. Baleno (19992007)
5. Zen Estilo (20062009)
6. Versa (20012010)
7. Grand Vitara XL7 (20032007)
Manufacturing facilities
Maruti Suzuki has two state-of-the-art manufacturing facilities in
India.[14] Both manufacturing facilities have a combined production
capacity of 1,250,000 vehicles annually.
Gurgaon Manufacturing Facility
The Gurgaon Manufacturing Facility has three fully integrated
manufacturing plants and is spread over 300 acres (1.2 km2). All
three plants have an installed capacity of 350,000 vehicles
annually but productivity improvements have enabled it to
manufacture 700,000 vehicles annually. The Gurgaon facilities also
manufacture 240,000 K-Series engines annually. The entire facility
45

is equipped with more than 150 robots, out of which 71 have been
developed in-house. The Gurgaon Facilities manufactures, the 800,
Alto, WagonR, Estilo, Omni Gypsy and Enesco.
Manesar Manufacturing Facility
The Manresa Manufacturing Plant was inaugurated in February
2007 and is spread over 600 acres (2.4 km2). 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 and SX4.
Sales and service network
As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666
towns and cities in all states and union territories of India. It has
2,946 service stations (inclusive of dealer workshops and Maruti
Authorized Service Stations) in 1,395 towns and cities throughout
India. It has 30 Express Service Stations on 30 National Highways
across 1,314 cities in India.
Service is a major revenue generator of the company. Most of the
service stations are managed on franchise basis, where Maruti
Suzuki trains the local staff. Other automobile companies have not
been able to match this benchmark set by Maruti Suzuki. The
Express Service stations help many stranded vehicles on the
highways by sending across their repair man to the vehicle.
46

Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its
customers with the help of the National Insurance Company, Bajaj
Allianz, New India Assurance and Royal Sundaram. The service was
set up the company with the inception of two subsidiaries Maruti
Insurance Distributors Services Pvt. Ltd and Maruti Insurance
Brokers Pvt. Limited.
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.
Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti
Finance in January 2002. Prior to the start of this service Maruti
Suzuki had started two joint ventures Citicorp Maruti and Maruti
Countrywide with Citi Group and GE Countrywide respectively to
assist its client in securing loan. 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-Maruti Finance is currently available in 166 cities across India.
"Maruti Finance marks the coming together of the biggest players
in the car finance business. They are the benchmarks in quality
and efficiency. Combined with Maruti volumes and networked
dealerships, this will enable Maruti Finance to offer superior service
and competitive rates in the marketplace".Jagdish Khattar,
47

Managing director of Maruti Udyog Limited in a press conference
announcing the launch of Marot Finance on 7 January 2002 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.
Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its
major focus on exports and it does not operate in the domestic
Indian market. The first commercial consignment of 480 cars was
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 Exports.
48
MITHRA AGENCIES
The Mithras Agencies is one of the best car showrooms in
Hyderabad located at Himayat Nagar.The Mithra Agencies
provide a wide variety of services for your car. People here speak
very good English and they are very kind at receiving customers.
The Mithra Agencies provide services at reasonable prices. Also
one can see a wide variety of cars kept for display in the
showroom.All company cars are available here. Also the showroom
charge for cars you buy is very less when compared with other car
show room. The Mithra Agencies is a very good place to have a
luxurious car. You will get full satisfaction for the money you pay. It
invites Sales experts for Himayath Nagar, Mehdipatnam, L.B.
Nagar, Ghatakeshar, Bhuvanagiri, Kampala, Ibrahim Putnam,
Chevella, Paige, Tan door, Vikarabad locations.
49

THE MITHRA AGENCIES HIMAYATHNAGAR, HYD.
ESTABLISHED: The Mithra Agencies is an authorized dealer of all
Maruti cars, which was established in the year 1988 in Hyderabad,
Andhra Pradesh.
SELLING CAPACITY: The Company has sold, since its inception
more than 1, 00,000 cars. Its turnover is more than 100 crores per
annum. It is the senior most dealer-ship in Andhra Pradesh.
STANDARDNESS: The Company boasts of being the first ISO-9001
certified automobile dealer in A.P. The company has also to its
credit a number of honors and accolades from its principal Maruti
Udyog Limited.
ACHIEVEMENTS&STRENGTHS
1.
It has been awarded the All India Dealer Award for
excellence in 1995 for highest growth and lifting of Maruti Esteem

and 1000cc cars.
2.
Another award in 1997 was given to The Mithra Agencies All
India Dealer Award in category A for the highest counter sale of

Maruti Spares in 1997.
3.
This company has been awarded with a special citation for
maximum growth in Maruti Finance Penetration at the All India

Dealers Conference at Bangkok in 2003.
4.
It has been ranked All India 16th in the Balanced Score Card
for 2004-05among 230 odd dealers in the entire country by

registering growth in ancillary businesses like Maruti Insurance,
MGA, Maruti Finance.
5.
It has the privilege of having more than 50000 loyal
customers who are repeat buyers the obvious reason for being the
50

most tried, tested and trusted since yester years.
6. The Mithra Agencies has counter business with HDFC,ICICI
,SFL CMFL,and KMPL disbursing 4 crores of car loans every month .
WORKSHOPS
The Mithra agencies have four state- of- the- art workshops
situated in the prime localities of the city. The following below are
the workshops offered by Mithra agencies.
1. Madhapur
2. RTC X roads
3. Moosapet
4. LB-Nagar.
BRANCHES
The Mithra agencies have three branches situated in the prime
localities of the city. The following below are the branches of Mithra
agencies
1.
Mithra Agencies Himayathnagar
2.
Mithra Agencies Mehadipatnam.
3.
Mithra Agencies L.B.nagar.
TRUE VALUE:
Mithra agencies offering a true value service for a pre owned

Cars.
Here cars are sold by the customers after evaluations.
It brings a huge profit for the organization in second sales
also.
SECTIONS
RTA
51

DELIVERYSECTION
EDP
A/C DEPT
CCM
MEETING HALL ETC
SELLING UNITS
Mithra agencies usually sell 300 cars in all 3 branches per month.
The total turnover yields approximately 15 crores.
Organizational Structure
MD
CEO & GM
DGM
HR Manager
52
Accounts Manager
Customer
Sales Manager
Care
Manager
TeamLeader
&
Sales Executive
MD
: M.BHASKAR MURTHY & M.RAMALINGAM
COO
: V.BALAJI
DGM
: T.R.K.REDDY
HR MANAGER
: P.CHALAMA REDDY
ASST HR & PROJECT INCHARGE: MEHER PRAVEEN .T

SALES MANAGER
: P.BHIKSHAPATHI GOUD
G.V.N.REDDY
T.NAVEEN
This is one of the Authorized Dealer Showroom of MARUTI

SUZUKI ORGANISATION, assisting the different customers in
providing the vehicles especially for TWIN CITIES (HYDERABAD
& SECUNDERABAD) Customers at good economical prices, at
good after sales service, at customer friendly interest rates, at
zero
tension
Insurance
policy
and
at
cheap
Genuine
Accessories.
In
this
target
MITHRA
AGENCIES
has
won
many
Customers hearts, credits, compliments, confidence, loyalty,

image, trustness, and accolades and finally it became the MOST
REPUTED DEALERS among its competitors. It stands
NO.1
among its competitors. Its Competitors names are VARUN

MOTORS PVT.LTD. R.K.S MOTORS, and ACER MOTORS etc.
POLICY OF MITHRA AGENCIES
53
The MITHRA AGENCIES
is involved in both inbound sales
and out bound Sales (marketing) providing both permanent and

non permanent jobs. Good in retaining the experienced and
talented employees by providing Promotions, good incentives,
good salaries, provident funds, bonus and other allowances.
It provides good quality of work life to feel interest in doing the job.
The employers and employees are very friendly and their motto is
25 YEARS DEDICATED CUSTOMER SERVICE.
The team
members (employees) will play games and also celebrates parties

that are they are very sportive in nature.
Recruiting employees directly by walk in interviews and through
references also as they are not tied up with any recruitment
consultancy. The various job positions are H.R. Executives,
Managers,
leaders,
Assistant
drivers,
Managers,
servicing
Marketing
employees,
Executives,
software
Team
employees,
customer care executives, and other posts. They are kindly helping
MBA Final year students in giving the opportunity for doing the
project work successfully and also providing the jobs for efficient
project work students. They sell more cars on festival occasions
and on year endings.
Customer satisfaction activities is there
important objective, they take the feedback of the customers after

selling the cars and customer retaining measures are
satisfying the customers.
taken by
They are having their own servicing
centers. They are providing all the models of Maruti Suzuki.

The period of free service is up to one year
54

1st service is up to 1000 kilometers or one month whichever is
earlier.
2nd service is up to 5000 kilometers or six months whichever is
earlier.
3rd service is up to 10,000 kilometers or 12 months whichever is
earlier.
The period of free warranty is up to 2 years and extended warranty
offer is also available for next two years.
1.
EXPERIENCED AND EFFICIENT CUSTOMER CARE STAFF

IN SHOW ROOMS.
This
organization
is having very good customer care and
experienced Staff in handling the customers very carefully; if the

customer is treated very rashly the customer goes to other
competitors. The customer is provided with full fledged information
about the products about all facilities and services very peacefully
so that the customer feels confident and happy.
2.
GOOD SERVICING
There is a good word of mouth for this organization in doing

service, very effectively among his competitors. Among its
competitors like Varun Motors Pvt. Ltd R.K.S Motors, Acer, The
Mithra is having very good name for servicing of the vehicles and
this is also one of the reason for customer visits to this show room.
3.
AVAILABILITY OF SERVICING CENTRES ALL OVER THE
COUNTRY
55

The MARUTI SUZUKI is having the servicing centers all over the
Country i.e. From KASHMIR TO KANYAKUMARI. This is indirectly
motivating the customers to buy. Why because most of the
Competitors cars are of foreign companies and the customers have
to face lot of problems if repair comes and there are no servicing
centers for Competitors as Maruti is having.
4. AVAILABILITY OF SPARE PARTS ALL OVER THE COUNTRY

The MARUTI is having availability of spare parts all over the
country image in the minds of the customers why because this is
the company Which is most trusted by many customers and Maruti
is committed to that.
THEORITICAL BACKGROUND OF THE TOPIC

BRAND LOYALTY
56

The American Marketing Association defines brand loyalty as:
"The situation in which a consumer generally buys the same
manufacturer-originated product or service repeatedly over time
rather than buying from multiple suppliers within the category"
(sales promotion definition).
"The degree to which a consumer consistently purchases the same
brand within a product class" (consumer behavior definition). In a
survey of nearly 200 senior marketing managers, 69 percent
responded that they found the "loyalty" metric very useful.
Brand
loyalty
is
more
than
simple
repurchasing,
however.
Customers may repurchase a brand due to situational constraints

(such as vendor lock-in), a lack of viable alternatives, or out of
convenience. Such loyalty is referred to as "spurious loyalty". True
brand loyalty exists when customers have a high relative attitude
toward the brand which is then exhibited through repurchase
behavior. This type of loyalty can be a great asset to the firm:
customers are willing to pay higher prices, they may cost less to
serve, and can bring new customers to the firm. For example, if Joe
has brand loyalty to Company A he will purchase Company A's
products even if Company B's are cheaper and/or of a higher
quality.
From the point of view of many marketers, loyalty to the brand
in terms of consumer usage is a key factor.
Usage rate
Most important of all, in this context, is usually the 'rate' of usage,
to which the Pareto 80-20 Rule applies. Kotler's 'heavy users' are
57

likely to be disproportionately important to the brand (typically, 20
percent of users accounting for 80 percent of usage and of
suppliers' profit). As a result, suppliers often segment their
customers into 'heavy', 'medium' and 'light' users; as far as they
can, they target 'heavy users'.
Loyalty
A second dimension, however, is whether the customer is
committed to the brand. Philip Kotler, again, defines four patterns
of behaviour:
1. Hard-core Loyals - who buy the brand all the time?
2. Split Loyals - loyal to two or three brands.
3. Shifting Loyals - moving from one brand to another.
4. Switchers - with no loyalty (possibly 'deal-prone', constantly
looking for bargains or 'vanity prone', looking for something
different).
Factors influencing brand loyalty

It has been suggested that loyalty includes some degree of predispositional commitment toward a brand. Brand loyalty is viewed
as multidimensional construct. It is determined by several distinct
psychological processes and it entails multivariate measurements.
Customers' perceived value, brand trust, customers' satisfaction,
repeat purchase behavior, and commitment are found to be the
key influencing factors of brand loyalty. Commitment and repeated
purchase behavior are considered as necessary conditions for
brand loyalty followed by perceived value, satisfaction, and brand
trust. Fred Reichheld, One of the most influential writers on brand
58

loyalty, claimed that enhancing customer loyalty could have
dramatic effects on profitability. Among the benefits from brand
loyalty specifically, longer tenure or staying as a customer for
longer was said to be lower sensitivity to price. This claim had
not been empirically tested until recently. Recent research found
evidence that longer-term customers were indeed less sensitive to
price increases.
Industrial markets
In industrial markets, organizations regard the 'heavy users' as
'major accounts' to be handled by senior sales personnel and even
managers; whereas the 'light users' may be handled by the
general sales force or by a dealer.
Portfolios of brands
Andrew Ehrenberg, then of the London Business School said that
consumers buy 'portfolios of brands'. They switch regularly
between brands, often because they simply want a change. Thus,
'brand penetration' or 'brand share' reflects only a statistical
chance that the majority of customers will buy that brand next
time as part of a portfolio of brands they favour. It does not
guarantee that they will stay loyal.
Influencing the statistical probabilities facing a consumer choosing
from a portfolio of preferred brands, which is required in this
context, is a very different role for a brand manager; compared
with the much simpler one traditionally described of
recruiting and holding dedicated customers. The concept also
emphasizes the need for managing continuity.
59
DATA ANALYSIS & INTERPRETATION

60
1. Analysis of Gender
No. of
Gender
respondents
96
4
Male
Female
Percentage
96%
4%
Analysis of Gender
Interpretation:
The above table shows that 96%customers are male, and only 4%
customers are female so the company has to increase the level of
female users.
2. Analysis of Age groups
61
Age
No. of
Percentage
25to 30
respondents
16
31 to 35
18
18%
36to 40
26
26%
41to 45
30
30%
46 and above
10
10%
16%
Analysis of Age groups
Interpretation:
The above table shows that 20-25 age group customers are 16%;
26-30 age group customers are 18%; 31-35 age group customers
are 26%; 36-40 age group customers are 30% and 41 and above
age customers are 10%.
3. Analysis of Occupation
62

Occupation
Doctors
Business
employees
No. of
respondents
20
46
34
Percentage
20%
46%
34%
Interpretation:
The above table shows that 20% of customers are Doctors, 34%
customers are employees and 46% are customers are business.
So company has to look in to increasing using of students
4. Income of Respondents
Income per
No. of
Percenta
month
0 10000
respondents
4
ge
14%
24
30%
15001- 20000
52
34%
> 20001
20
22%
63
10001 15000
Interpretation:
The above table
4.4 shows that income of 0-10,000 are 4%,
income of 10001 -15,000 are 24%, income of 15001-20000 are

52% and income of 20001 above are 20%.
5. Car Model
No. of
Percenta
Maruti 800
respondents
40
ge
40%
Swift
24
24%
Wagon R
12
12%
others
24
24%
Car Model
64
Interpretation:
The above table 4.5 shows that 40 % of the customers are using
Maruti 800 followed by 24 % using Swift and 12 % using Wagon R
where the company should further try to increase the brand usage.
6. Awareness of Maruti Suzuki brand

65
Awarene
No. of
Percenta
ss
respondents
ge
Yes
100
100%
No
0%
Interpretation:
The above table shows that 100% respondents known the brand
name of Maruti.
7. Age of Your Car

Number of
age of car
respondents
66
Percentage

0-1year
24
24%
1-2years
20
20%
2-4years
44
44%
4years-above
12
12%
Interpretation:
The above table shows that 24% of the customers using below one
year, 20% of the customers cars 1-2 years, 44% customers are
using cars 2-4 years, 12% of customers are using cars 4- years
above where the company should increase usage levels
8. Awareness of the show room
Awareness of Show
No of
room
advertisement
Respondents
44
67
Percentage
44%

friends
Relations
other
36
20
0
36%
20%
0%
Interpretation:
The
above
table
shows
that
44%
customer
awareness
advertisement, 36% of customers is awareness with friends, 20%

customers awareness through papers. So the company should
increase through papers.
9. Purpose of your usage
Purpose of Your Use

family use
business
68
No of
Respondents
24
56
Percentage
24%
56%

leisure riding
other
20
0
20%
0%
Interpretation:
The above table shows that 24%customers using for family use,
56% customers using for
business use, 20% customers using for
riding users. So the company should increase family users
10.
What make you buy the brand
What make you buy the
No of
brand
brand image
safety
mileage
features
Respondents
32
20
40
8
69
Percentage
32%
20%
40%
8%
Interpretation:
The above table shows that 32% customers using for brand
image ,20% customers using for safety ,40% customers using for
mileage, 8% customers using for features. So the company should
increase features
11.
Satisfaction of the car
Satisfaction of car
yes
no
No of Respondents
84
16
70
Percentage
84%
16%
Interpretation
The above table shows that 84% customers are satisfied, 16%
customers are not satisfied.
12.
Rating of Maruti
Brand
Excellent
Good
Average
Poor
Rating of Maruti brand
No of Respondents
Percentage
44
36
20
0
44%
36%
20%
0%
71
Interpretation:
The above table shows that 44% customers are response is
excellent, 36% customers are response is good , 20% customers
are response is good
o% customers are response is poor so
company increase level of satisfaction
13.
Performance of the car
Performance of
the car
excellent
good
average
poor
No of Respondents
Percentage
32
46
22
0
32%
46%
22%
0%
72
Interpretation:
The above table shows that 32% customers are response are
are response is good
o% customers are response is poor so
company increase level of satisfaction
14.
Change of customers
brand in future
change of brand
Yes
No
No of Respondents
76
34
73
Percentage
76%
34%
Interpretation:
change their brand, 34% customers are not change their brand
15. Why are you using Maruti Suzuki brand

Using Maruti Suzuki
No of
brand
Mileage
Low price
Comfort
Style
Respondents
30
32
28
20
74
Percentage
30%
32%
28%
20%
Interpretation
The above table shows that 30% customers response is mileage,
32% customers response is low price , 28% customers response
is comfort and 20% customers response is style as they are using
the Maruti Suzuki company cars.
16.
How do compare
Comparison
Excellent
Good
Average
Poor
Maruti Suzuki with others
No of Respondents
35
45
11
9
75
Percentage
35%
45%
11%
9%
Interpretation:
are response is good 9% customers are response is poor for the
comparison between Maruti Suzuki and other brand cars.
76

FINDINGS
The study reveals that majority of the Customers age was

between 25 45 years
Majorities of the customers of Mithra Agencies were Males
The target customers were mainly in upper middle class

income group and Upper class.
Most of the Customers of Maruti were Business men.
Most of Four wheelers used by the Customers of Mithra are

Maruti
Percentage of Customers using the Four Wheelers of Maruti

not less then 1-2 years.
Alto, Baleno, Maruti 800CC, Zen and all types of Brands are
the specialized brands for Mithra.
Majority of the Customers were self- influenced to purchase

the Four Wheelers of Maruti
The main reason for Customers to choose Mithra for the

service orientation provided
100 % of the Customers were satisfied with the service of

Mithra Agencies.
50% of the Customers were recommended for the modification

offered by Mithra to the loyalty customers
77
SUGGESTIONS
Mithra should maintain the stock of spares of all brands of

Maruti Four wheelers so that it does not cause any
inconvenience to the Customers.
The charges for servicing the four wheelers may be slightly

reduced. For the quality of unpaid service should be kept at
par with that of paid service.
As a promotional measure Mithra can increase free services

camps which increases the Customers loyalty.
A few more service stations smaller in size may be set up in

various areas across the city where there is more demand
which satisfy more customers of all areas.
As per the study after service, cleaning and servicing

vehicles should be given importance and improved upon.
Care should be taken to see that delivery of new car as well

as serviced car should be on time.
Customers are expecting some complaints during the

delivery of Car. Hence, such items may be given to improve
Customer
satisfaction.
78
CONCLUSION
The Brand Loyalty for Maruti Suzuki at Mithra is very positive; the
reasons contributing here is both the Brand Maruti and the
services by Mithra Agencies. Hence the companies should further
try to integrate even more and see that they give a product as per
the customer requirements and services to satisfy the customers
and thereby increase the brand loyalty.
79
QUESTIONNAIRE
Name:
Age:
Contact No.:
Qualification:
1) Gender
a) Male
b) Female
2)
Age
a) 20-25
b) 25-30
c) 30-35
d) 40-45
e) 45 and above
3) Occupation
a) Student
b) Employee
c) Business
4) Monthly Income (INR)

a) 0 - 10000
80
b) 10000-15000

c) 15000-20000
d) 20000 and above
5) Which of the following factors impressed you while using

MARUTI SUZUKI product?
a) Brand image
b) value for money
c) Availability
d) all the above
6) How much monthly income

a) 10-15000
b) 15-20,000
c) 20,000 above
7) Which model of Maruti you use
a) M-800
b) M-swift
c) Belano
d) other
8) Do you know about Maruti Suzuki brand?

a) Yes
9)
b) No
How old is your car ?

a) 0-1year
b) 1-2year
c) 2-4years
d) 4years-above
10) How did you come to know about product you are using?
a) Friends
b) newspaper
c) Advertisement
d) other
81
11) What purpose do you use?

a) family use
b) business
c) Leisure riding
d) other
12) What make you to buy the brand?
13)
a) brand image
b)safety
c) mileage
d)features
Are you satisfied with your car?

a) yes
14)
b)no
The performance of the car?

a) excellent
b)good
c) average
d)poor
15) How do compare Maruti Suzuki with others?

a) excellent
b)good
c) average
d)poor
16) Why are you using Maruti Suzuki brand?

a) mileage
b) low price
c) style
d) comfort
17) If you get better car than Maruti, will you change your brand?
82

a) yes
b )no
16) Any other Suggestions

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
____________
-THANKYOU-
83
BIBLIOGRAPHY
Books:
1.PHILIP KOTLER,MARKETING MANAGEMENT PRIENTICE HALL OF INDIA
NEW DELHI.2001
2.VS
RAMASWAMY,MARKETING
MANAGEMENT
3rd
EDITION,
WEST
PUBLISHING NEW YORK,2005

3.C.R KOTHRI RESEARCH METHODOLOGY,7th EDITION SOUTH WESTERN
PUBLISHING ,2005
Journal:
Indian Journal of brand awareness
Journal of marketing
Business World
Business Line
Web sites:
www.google.com
http://www.MarutiSuzuki.com
www.Marutitruevalue.com
84

Brand Loyalty Maruti

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A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

design of these elements that is intended to identify the good (or)

is a part of a brand consisting of a word, letter,

letters to identify the goods or

services of a seller or group of sellers

differentiate them from those of the competitors.David Ogilvy

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

the brand and can be demonstrated by repeated buying of a

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

the marketing pressure generated by the competing brands. Brand

depending on how it is branded. Consumers learn about brands

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

designs, they cannot easily match lasting impressions in the minds

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

was established in February 1981,

though the actual production commenced in 1983 with the Maruti

successful to the extent that the associated products are easily

Economies of scale (production and distribution)

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

Lower marketing costs

Laying the groundwork for future extensions worldwide

Maintaining consistent brand imagery

Preempting international competitors from entering domestic

Increasing international media reach (especially with the

Increases in international business and tourism are also

Global Brand Variables

Products and services

Marketing mixes (including pricing, distribution, media and

These differences will depend upon:

Different styles of communication

Other cultural differences

Differences in category and brand development

Different consumption patterns

Different competitive sets and marketplace conditions

Different legal and regulatory environments

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

Different national approaches to marketing (media, pricing,

sold and marketed (distributed and

promoted) in a relatively small and restricted geographical area. A

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

amazement at human feats.

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

NEED FOR THE STUDY

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

economy(pine&Gilmore,1999)has called for the more and services

What is Brand Loyalty?

quality at the right price.

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

2) Premium Price Ability:

Loyalty programs are structured marketing efforts that reward, and

loyalty business model.

Best Buy's loyalty program similarly offers points redeemable for

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

'Over three-quarters of all luxury consumers are members of at

In this new study on loyalty programs, those who design, market,

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

A STUDY ON BRAND LOYALTY OF MARUTI SUZUKI

organizations image, slogan describing organizations business in

required to probe into the concepts of Brand loyalty.