STRATEGIC ALLIANCE OF MARUTI SUZUKI

CHAPTER IINTRODUCTION TO STRATEGIC ALLIANCEAstrategic allianceis an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. This form of cooperation lies betweenmergers and acquisitionsand organic growth.Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is aco-operationorcollaborationwhich aims for asynergywhere each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involvestechnology transfer(access to knowledge and expertise),economic specialization, shared expenses and shared risk.

Definition of Strategic Alliance A strategic alliance is an agreement between two or more players to share resources or knowledge, to be beneficial to all parties involved. It is a way to supplement internal assets, capabilities and activities, with access to needed resources or processes from outside players such as suppliers, customers, competitors, companies in different industries, brand owners, universities, institutes or divisions of government.[2] A strategic alliance is an organizational and legal construct wherein partners are willing-in fact, motivated-to act in concert and share core competencies. To a greater or lesser degree, most alliances result in the virtual integration of the parties through partial equity ownership, through contracts that define rights, roles and responsibilities over a span of time or through the purchase of non-controlling equity interests. Many result eventually in integration through acquisition.

AdvantagesFor companies there are many reasons to enter a Strategic Alliance: Shared risk: The partnerships allow the involved companies to offset their market exposure. Strategic Alliances probably work best if the companies portfolio complement each other, but do not directly compete. Shared knowledge: Sharing skills (distribution, marketing, management), brands, market knowledge, technical know-how and assets leads to synergistic effects, which result in pool of resources which is more valuable than the separated single resources in the particular company. Opportunities for growth: Using the partners distribution networks in combination with taking advantage of a good brand image can help a company to grow faster than it would on its own. The organic growth of a company might often not be sufficient enough to satisfy the strategic requirements of a company, that means that a firm often cannot grow and extend itself fast enough without expertise and support from partners Speed to market: Speed to market is an essential success factor In nowadays competitive markets and the right partner can help to distinctly improve this. Complexity: As complexity increases, it is more and more difficult to manage all requirements and challenges a company has to face, so pooling of expertise and knowledge can help to best serve customers. Costs: Partnerships can help to lower costs, especially in non-profit areas like Research&Development. Access to resources: Partners in a Strategic Alliance can help each other by giving access to resources, (personnel, finances, technology) which enable the partner to produce its products in a higher quality or more cost efficient way. Access to target markets: Sometimes, collaboration with a local partner is the only way to enter a specific market. Especially developing countries want to avoid that their resources are exploited, which makes it hard for foreign companies to enter these markets alone. Economies of Scale: When companies pool their resources and enable each other to access manufacturing capabilities, economies of scale can be achieved. Cooperating with appropriate strategies also allows smaller enterprises to work together and to compete against large competitors.

Disadvantages Disadvantages of strategic alliances include: Sharing: In a Strategic Alliance the partners must share resources and profits and often skills and know-how. This can be critical if business secrets are included in this knowledge. Agreements can protect these secrets but the partner might not be willing to stick to such an agreement. Creating a Competitor: The partner in a Strategic Alliance might become a competitor one day, if it profited enough from the alliance and grew enough to end the partnership and then is able to operate on its own in the same market segment. Opportunity Costs: Focusing and committing is necessary to run a Strategic Alliance successfully but might discourage from taking other opportunities, which might be benefitial as well. Uneven Alliances: When the decision powers are distributed very uneven, the weaker partner might be forced to act according to the will of the more powerful partners even if it is actually not willing to do so. Foreign confiscation: If a company is engaged in a foreign country, there is the risk that the government of this country might try to seize this local business so that the domestic company can have all the market on its own. Risk of losing control over proprietary information, especially regarding complex transactions requiring extensive coordination and intensive information sharing. Coordination difficulties due to informal cooperation settings and highly costly dispute resolution.

Importance of Strategic Alliances Strategic Alliances have developed from an option to a necessity in many markets and industries. Variation in markets and requirements leads to an increasing use of Strategic Alliances. It is of essential importance to integrate Strategic Alliance management into the overall corporate strategy to advance products and services, enter new markets and leverage technology and Research&Development. Nowadays, global companies have many alliances on inland markets as well as global partnerships, sometimes even with competitors, which leads to challenges such as keeping up competition or protecting own interests while managing the Alliance. So nowadays managing an alliance focuses on leveraging the differences to create value for the customer, dealing with internal challenges, managing daily competition of the alliance with competitors and Risk Management which has become a company-wide concern. Statistics show that the percentage of revenues for the top 1000 U.S. public corporations generated by Strategic Alliances increased from 3-6% in the 1990s up to 40% in the year 2010, which shows the fast changing necessity to align in partnerships. The number of equity-based alliances has dramatically increased in the last couple of years, whereas the number of acquisitions has decreased by 65% since the year 2000. For a statistically examination over 3000 announced alliances in the USA have been reviewed in the years 1997 to 1997 and results showed that only 25% of these alliances were equity based. In the years 2000 until 2002 this percentage increased up to 62% equity-based alliances among 2500 newly formed alliance.

CHAPTER IICOMPANY PROFILE

Maruti Suzuki India Limited, commonly referred to asMarutiand formerly known asMaruti Udyog Limited, is an automobile manufacturer inIndia.It is a subsidiary of Japanese automobile and motorcycle manufacturerSuzuki. As of November 2012, it had a market share of 37% of the Indian passenger car markets. Maruti Suzuki manufactures and sells a complete range of cars from the entry levelMaruti 800,Alto, to the hatchbackRitz,Celerio,, A-Star,Swift,Wagon R,Zenand sedansDZire,Ciaz,KizashiandSX4, in the 'C' segmentEeco,Omni, Multi Purpose vehicle SuzukiErtigaand Sports Utility vehicleGrand Vitara. The company's headquarters are at No 1,Nelson Mandela Road,New Delhi.In February 2012, the company sold its ten millionth vehicle in India.Maruti Suzuki India Limited engages in manufacturing, marketing, sale and export of motor vehicles, components, and spare parts in India and internationally. The company produces passenger cars, light duty utility vehicles, and multi-purpose vans primarily. Maruti Suzuki is also involved in the facilitation of pre-owned car sales, fleet management, and car financing business. The company has its Head Office Located in New Delhi.

VISSION STATEMENT The Leader in the Indian Automobile Industry, Creating Customer Delight1 and ShareholdersWealth2; eventually become a pride of India MISSION STATEMENT.:- Modernization of the Indian Automobile Industry.- Developing cars faster and selling them for less.- Production of fuel-efficient vehicles to conserve scarce resources.- Production of large number of motor vehicles which was necessary for economic growth.- Market Penetration, Market Development Similarly Product Development and Diversification.- Partner relationship management, Value chain, Value delivery network

HISTORYMaruti Udyog Limited was established in February 1981, though the actual production commenced only in 1983. It started with Maruti 800, based on theSuzuki Altokei carwhich at the time was the only modern car available in India. Its only competitors wereHindustan AmbassadorandPremier Padmini. Originally, 74% of the company was owned by theIndian 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. Maruti Suzuki India Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs110694.22Cr.) operating in Auto sector.Maruti Suzuki India Ltd. key Products/Revenue Segments include Passenger Cars & Light Duty Utility Vehicles which contributed Rs 43612.00 Cr to Sales Value (89.22% of Total Sales), Spare Parts & Components which contributed Rs 4208.80 Cr to Sales Value (8.61% of Total Sales), Other Operating Revenue which contributed Rs 698.30 Cr to Sales Value (1.42% of Total Sales), Scrap which contributed Rs 357.50 Cr to Sales Value (0.73% of Total Sales), Mould & Dies which contributed Rs 2.00 Cr to Sales Value (0.00% of Total Sales), for the year ending 31-Mar-2014.For the quarter ended 31-Dec-2014, the company has reported a Standalone sales of Rs. 12263.14 Cr., up 2.22% from last quarter Sales of Rs. 11996.33 Cr. and up15.48% from last year same quarter Sales of Rs. 10619.68 Cr. Company has reported net profit after tax of Rs. 802.16 Cr. in latest quarter.The companys management includes Mr.S Ravi Aiyar, Mr.A Ganguli, Mr.A K Tomer, Mr.A Seth, Mr.Ajay Seth, Mr.C V Raman, Mr.D K Sethi, Mr.D S Brar, Mr.K Ayabe, Mr.K Ayabe, Mr.K Ayukawa, Mr.K Saito, Mr.K Suzuki, Mr.M M Singh, Mr.M Nishio, Mr.M Pareek, Mr.M Suzuki, Mr.O Suzuki, Mr.P Narula, Mr.R C Bhargava, Mr.R Gandhi, Mr.R P Singh, Mr.R S Kalsi, Mr.R Uppal, Mr.S Ravi Aiyar, Mr.S Srivastava, Mr.S Y Siddiqui, Mr.Shigetoshi Torii, Mr.T Hashimoto, Mr.T Hasuike, Mr.T Suzuki, Mr.Y Kojima, Mr.Y Ozawa, Mr.Y Suzuki, Ms.P Shroff.

BeginningsMaruti'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 andSanjay Gandhibecame its first managing director. "Maruti Limited" goes into liquidation in 1977. 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 ofIndira Gandhi, the Indian Central government salvages Maruti Limited and starts looking for an active collaborator for a new company. Maruti Udyog Ltd is incorporated in the same year.

SUZUKI ENTERSIn 1982, a license & Joint Venture Agreement (JVA) is signed between Maruti Udyog Ltd. andSuzukiof 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, theMaruti 800is released. This 796 cc hatchback is based on theSS80 Suzuki Altoand is Indias first affordable car. Initial product plan is 40% saloons, and 60% Maruti Van.Local production commences in December 1983.In 1984 theMaruti Van, with the same three-cylinder engine as the 800, is released. Installed capacity of the plant inGurgaon, reaches 40,000 units.In 1985 theSuzuki SJ410-basedGypsy, a 970cc 4WD off-road vehicle, is launched. In 1986 the original 800 is replaced by an all-new model of the 796cc hatchbackSuzuki 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.

Market liberalisationIn 1989 theMaruti 1000is presented after having been shown earlier. This 970cc,three-boxis Indias first contemporarysedan. By 1991 65 percent of the components, for all vehicles produced, are indigenised. Meanwhile, the liberalisation of theIndian economyopens new opportunities but also brings more competition to the segments in which Maruti operates. In 1992Suzukiincreases 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 theZen, a modern 993cc, hatchback which is later exported globally as theSuzuki Alto. In 1994 the 1298ccEsteemappears, 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 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 theUnited Frontgovernment is formed, withMurasoli Marannew 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 directorR.C. Bhargava, was completing his tenure. This creates a conflict withSuzuki, discussed closer in theJoint 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 theZen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle. TheOmnivan and microbus is also redesigned. The next year the Omni bus arrives in a high roof version, the Omni XL. The 1.6litreMaruti Balenothree-boxsaloon, advertised as the 'Maruti Suzuki Baleno', also appears. This is Maruti's biggest car yet. Finally, in what is a very busy year, theWagon Ris launched.In 2000 Maruti becomes the first car company in India to launch aCall Centerfor internal and customer services. The newAltomodel is also released, somewhat larger and more modern than the 800. The estateBaleno Alturais also shown, while IDTR (Institute of Driving Training and Research) is launched jointly with the Delhi government to promote safe driving habits. In 2001Maruti 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 theMaruti Versasees 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, stripped-down version called Eeco. Customer information centers are also launched in Hyderabad, Bangalore and Chennai. In 2002 theEsteemDiesel 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.In 2003 the newSuzuki Grand VitaraXL-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 theState Bank of India. Maruti Udyog Ltd is Listed on BSE and NSE after a public issue, which is oversubscribed tenfold. In 2004 theAltobecomes India's new best selling car, overtaking theMaruti 800which had been number one for nearly two decades. The five-seaterVersa5-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 1.3L 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 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.

OBJECTIVE OF THE STUDY: The present study of the marketing strategy of the Maruti Suzuki (Pvt.) Limitedrevolves around the following broad objectives: (i) To study the evolution and growth of the Maruti Suzuki (Pvt.) Limited in the context of the automobile revolution in India; (ii) To study the growth strategy of the Maruti Suzuki (Pvt.) Limited and the marketing methods followed by it in this regard. (iii) To study the small car revolution in India and the contribution of the Maruti Suzuki (Pvt.) Limited to it.

Strategy Formulation

SWOT ANALYSIS: Consists of analysis of internal environment (Strength and weakness) and external environments. STERNGHTHS: Contemporary technology. Japanese Management practices (that had captured Japan over USA to the status of top Auto manufacturing country in the world)Early mover advantages. Recruitment is done in very tedious manner ensuring talent and best professionals, Working culture, after sale services , distribution, diversification, R&D.

WEAKNESS: Still depends upon SUZUKI COPORATION, Japan For tech. support, 10% components are manufactured outside India. Though MUL has launched luxury cars as well its still considered as poor mans brand. Diversification is not supported with all India presence of Manufacturing Units. Bureaucracy, Technological disadvantages, Decades of isolation, inertia and subservience to the whims of government bureaucrats have made MUL unaccustomed to international standards or keen competition.

OPPURTUNITY: first company to roll out suitably designed cars before 2008 as per Govt.s Proposal of new ethanol (renewable)mixed fuel. Other companies lacks economy of scale, so market is still open. Importing new technology is controlled by Govt. so there is plenty of untapped market and with increase in Income scale, Demand is rising.

THREAT: Numbers of new Technology driven players and manufactures are in market. Government .reducing support and cutting down the Gas supply quota

WHY MARUTI SUZUKI

The Quality Advantage

A car is an engineering product, only as good as the technology used to make it. Actual users of our technology are saying something very clearly Maruti Suzuki is No.1 in quality:

Maruti Suzuki owners experience fewer problems with their vehicles than any other can manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid-size car segment across 9 parameters.

The J.D. Power APEAL Study 2004 proclaimed the Wagon R. No. 1 in the premium compact car segment and the Esteem No.1 in the entry level mid- size car segment. This study measures owner delight in terms of design, content, layout and performance of vehicles across 8 parameters.

Maruti Suzuki has a sales network of 307 state-of-the-art showrooms across

189 cities*, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI study2004. The SSI study measures sales satisfaction across 6 parameters: deal received, paperwork, dealer facility, salesperson, delivery timing and delivery process. Maruti Suzuki has not only got the No.1 nameplate in the J.D. Power SSI study 2004, but also ranked way above the industry average (Maruti Suzuki was at 784 while industry average was at 760). What is significant is that it was ranked above Skoda, Ford, Chevrolet, Mitsubishi and Hyundai.

To be really happy with the car you own, it should have a reliable service network at hand and within easy reach. Their 1036 city strong service network is equipped to service 20,000 vehicles a day. No wonder Maruti Suzuki has been awarded the No.1 nameplate in customer satisfaction in India for the fifth year in a row, a feat unprecedented for any automobile market leader in the world.

In the J.D. Power CSI study , Maruti Suzuki scored the highest across all7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best in- service experience, most user-friendly service and best service initiation experience.

In fact, 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probable recommend the same make of vehicle, while 90% owners would probable repurchase the same make of vehicle.

A Buying Experience Like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004.

Quality Service Across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

One Stop Shop

At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all your car related needs.

The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost you face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines. The recent Auto car Survey conducted in August 2004 bears testimony to this fact. In the Maruti Suzuki stable, the Omni has the lowest aggregate cost of spares followed by the Maruti-800. The Maruti- 800 has the cheapest spares of any Indian car with a basket of just Rs. 23,422. In the Lower Mid-size segment as well, price-consciousness is very high, where the cars have to be not only affordable on purchase price but also need to combine quality, drivability and have comfortable interiors. In this segment, the Maruti Suzuki Versa has scored particularly well with the lowest cost of spares in the segment. In the Upper Mid-size segment, the Maruti Suzuki Baleno has the segment's lowest prices on a majority of the spares.Lowest Cost of Ownership

To be really happy with the car one owns, it should be easy on the pocket to buy and to run-which is why the cost of ownership is so important. And here again, a Maruti Suzuki is a clear winner, as shown by the recent J.D.Power CSI study 2004. It is clear that a Maruti Suzuki delights you even when you run it for years. The 6 highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. They are proud to have the lowest cost of operation / km (among petrol vehicles) - the top 5 models are all Maruti Suzuki models: Maruti 800, Alto, Zen, Omni and Wagon R.

Employee Quality Measures

Kaizen is based on the concept of making incremental improvements in our products. It incorporates a series of continuous small and simple improvements, which aim at involving employees at all levels. The Suggestion Scheme is based on the same principle. Under this scheme, employees are encouraged to make suggestions for improvement in any area of our operation. Over 50,000 suggestions are received from employees every year.

Maruti has won the First place in "Excellence in Suggestion Scheme Contest

2003", which is the 6th consecutive award won in as many years. This contest is organized by Indian National Suggestion Schemes Association (INSSAN). Since1998 Maruti has won this award 10 times.

"Quality Circles" are groups of five to eight members from a particular work area who work as a team to identify priorities and solve work related problems in the area.

We believe that it is this unwavering commitment to quality that will lead to the further growth of the organization as competition increases.

GROWTH OF MARUTI SUZUKI The companys network of sales and services outlets continues to be its strength. Network is set to expand in the future and it will help to tap opportunities in the country. Manesar Plant reopens under full security of employees MSIL to fast track its New alto launch which is priced about 2 lakhs, Suzuki making MSIL a small car manufacturing hub, Volume growth of 10.8% for FY2012 Company facing slowdown as the demand environment is impacted Share in diesel vehicle is 38% during 1st quarter FY13 Net sales grew by 27.5% yoy to Rs.10,778cr in 1st quarter FY13, EPS Estimates to be INR 66.87 and ROE of 12.1% for FY2013, Expected significant volume growth of 15% for FY13 Coming up with new plant and Skill development center in Gujarat and R&D center in Haryana

CHAPTER IIIBUSINESS STRATEGY

Maruti Suzuki co Ltd intend to continue to focus on the small car segment, while offering products in most segments of the Indian passenger car market. They aim to achieve their principal objectives by pursuing the following business strategies:

Maintain and enhance their product range: They intend to utilize Suzukis expertise in small car technology to produce new variants of their existing models and to upgrade their products with contemporary technology and features.

Increase reach and penetration: They plan to continue to utilize their extensive sales and service network to increase the reach, in terms of geographical spread, and penetration, in terms of sales volumes, of their products across India.

Increased availability of automobile finance: They continue to seek opportunities to expand the size of the Indian passenger car market, especially in the small car segment, through facilitating easy availability of automobile finance. To that end, they have recently entered into an agreement with the State Bank of India.

Secure repeat purchases by offering a 360 degree customer experience: On the basis of their belief that securing repeat purchases from an existing customer requires less expenditure than acquiring a new customer, they aim to provide customers with a one-stop shop for automobiles and automobile- related products and services.

Continue to benchmark their manufacturing capabilities: They plan to continue to benchmark our manufacturing capabilities with the most efficient car manufacturing facilities of Suzuki and its subsidiaries.

Continue to reduce costs to offer more competitive products:

Cost competitiveness has been, and continues to be, central to their strategy as the leading manufacturer in the small car segment to expand the size of the market by offering competitively priced, high quality products. The components of this strategy are:

Higher levels of localization Vendor participation in cost reduction Cost reduction on warranties Reduction in initial investment cost Reduction in number of vehicle platforms Achieve further cost reduction through higher productivity

Lower cost of ownership:Through their business strategies, they seek to reduce the consumer s cost of ownership of their cars, which comprises the cost of purchase, the cost of fuel and maintenance, including spare parts and repairs, during the life of the vehicle, insurance, and resale value.

CURRENT STRATEGIES OF MSILA. Focus on small market segment to beat the stiff competition.B. Develop capabilities & internal resources to finance its expansion and growth. C. To stay away from ultra-low cost segment.D. To make India an exclusive small car manufacturing base to leverage frugal engineering.E. To establish R&D facility in India to produce cars in India, starting from design till production. CORE COMPETENCIES OF MSIL: Core competencies of an organization can be simply defined as a set of qualities, which are unique to that particular organization that cannot be easily imitated by its competitors. Core competencies are factors which give competitive advantage to the organization in its chosen market. Core competencies may be of various types- technical know-how, relationship with customers, employee-dedication, manufacturing process etc. An analysis of the Maruti Suzuki India Ltd. shows three core competencies:1. Strong Customer Base & Brand image The MSIL has a market share of about 55% in the Indian passenger car segment and is the largest manufacturer of small cars in India. The company has been voted as first by Indian customers for level of customer service and customer satisfaction. The company manufactures affordable small cars which serve the needs of an average Indian customer faithfully and hence have a strong brand image as the common mans car in India, which an average Indian customer identifies with. Such a strong brand image and huge customer base can sustain the position of the company as the market leader in the Indian small carsegment.2. Well-developed sales and service network throughout India The Maruti Suzuki India has a strong dealership network comprising more than 450 cities across India and a huge service network of more 2750 franchises of service outlets spreading about 1300 cities throughout India. Such a widely distributed sales and service network can help the company to relate with its customers across India and also facilitates bargaining power with suppliers and increase profitability.3. Very Strong knowledge of Indian market The Maruti Suzuki India has a strong knowledge of the Indian market which has helped them to grow their sales and market share in India.a) Threat of New Entrants: Increasing although most of the major global players are present in the Indian market; few more are expected to enter due to the welcoming government policies and expected retaliation.b) Threat of Substitutes: Low to Medium Maruti Suzuki faces serious threat from consumer shifting to hybrid or electric cars. Currently, the electric car market in India is dominated by sole player Reva Electric Car Company. However brands like Tata Motors, Chevrolet and Nissan are also planning to launch their electric car this year.c) Bargaining power of Supplier: Low Automakers are the key to the supply chain of the automotive industry. Maruti Suzuki has manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. There are a large number of automobile component suppliers whose switching costs are very high. Thus reducing the bargaining power of the suppliers.d) Bargaining power of buyers: Increasing Today, consumers are considered kings in the automobile market. There is an increasing awareness among them and they are given a humongous number of choices. Buyers get incentives in the form of cost discounts and better after sales services. This further increases the bargaining power of the buyers.e) Competitive Rivalry: High Competition in certain segments is very high e.g., small and mid-car segment. Brands like Hyundai, Chevrolet, Tata and Skoda have given huge competition to Maruti Suzuki. In the recent past Volkswagen, Honda, Ford has also given competition to the premium car segment.MAJOR CHALLENGES

KEY INDUSTRY PAIN POINTS

Decreasing sales and market share - The long-term battle for market share continues to intensify. In the mature automotive industry, where business cycles drive sales fluctuations, market share is critical to survival. Consumers are less brand-loyal than in the past, and every market segment has an increasing number of vehicle choices. To increase sales and gain ground in the market share battle, companies must improve their ability both to acquire first-time customers and to develop customer loyalty to their current brands. To achieve these related objectives, companies must set an aggressive goal -deliver the best customer experience in the automotive industry.

Difficult dealer relationships and a lack of dealer collaboration - As the consumer 's primary touch point ,the dealer network is a critical component of customer-facing operations. Therefore, the integration of the dealer network is absolutely essential to improving the quality of the customer experience. Only with an infrastructure that enables the buying cycle.34

Lack of multichannel capabilities - With the advent of the Internet as a research tool, the majority of customers are accessing the automotive enterprises through several different channels. Many times, the switch between channels happens very rapidly as a prospect or customer can view a Web site, make a phone inquiry, and visit a retail store within days or even hours of an initial contact. To improve customer satisfaction and secure customer lifetime value, companies must be able to capture these multiple interactions, provide seamless management between channels, and leverage shared customer information to create rewarding experiences and to develop and execute highly targeted marketing campaigns.Inefficient demand chain planning and high associated IT cost - Cost reduction is an ongoing competitive requirement. Just as supply chain management must be supported by a sophisticated information infrastructure, effective demand chain management also requires the right supporting infrastructure, enabling car companies to fully leverage each customer relationship through exceptional customer service, efficient lead generation and management, and effective promotions and campaigns. In addition, global automotive enterprises operate a wide variety of IT systems in their various business units and functional groups. Rationalizing these systems offers significant cost savings.Lack of effective information sharing - Car companies must integrate global operations in order to achieve the benefits of consolidation -cost reduction, effective communication, and true integration of core competencies. In addition, internal alignment between business units functional group, and brand operates through independent systems, programs, and touch points. As a result, there is limited synergy across the ecosystem, leading to significant inefficiencies, lack of coordination, and most important, an inability to maximize "share of wallet "from every customer through well-targeted marketing and cross-selling. Synergy between traditionally independent business units such as captive finance companies and between functional groups such as sales, service, and marketing is more critical now than ever before. Only by sharing customer information can customer lifetime value be maximized among different groups.

Complex data governance requirements - Global automotive enterprises have large, complex information technology ecosystems. While customer information must be shared within this ecosystem in order to fully maximize global operations, it must also be protected. Proper management of customer information requires a sophisticated capability to manage a variety of access rules and to accommodate legal restrictions that can change very quickly. The trust required for successful collaboration between groups in the automotive enterprise must be built by demonstrating that customer information can be shared while observing these complex requirements.

Difficulty managing employee relationships - In today 's fast-paced business environment, automotive companies need to ensure that their most valuable asset -their employees -have immediate access to the critical information, services, and applications required to be productive. Organizations must enable employees to make better decisions, work collaboratively, enhance customer relationships, and maximize productive time. Global automotive enterprises must be able to enact and enforce consistent policies across business units, instill a common corporate culture across a geographically dispersed and diverse workforce, equip employees with effective search tools to training necessary to service customers in a volatile and demanding market.

FUTURE CHALLENGES: To meet Future challenges of growing car market, Indias biggest carmaker Maruti Suzuki India Ltd. (MSIL) is focusing on two key areas capacity expansion and research and design (R&D)capabilities. With more global auto majors like Honda, Toyota, Volkswagen, Ford, Skoda, and General Motors besides Hyundai and Tata Motors eyeing a major pie of the small car segment, MSIL is gearing up to maintain its leadership position. Maruti Suzuki Sets the Pace for Future Green Cars Maruti Suzuki develops products for the new generation and changeable lifestyles, constantly creating new technologies and applying them to products with affluent imagination. The team covers a wide range of latest advances in energy, environment, electronics, communication, information and control applications.STRATEGY FOR FUTURE: The companys annual report also emphasized its growing focus on the export market. Maruti Suzuki is looking to make India an exclusive base to manufacture small cars for Europe. "We want to export 2 lakh units annually by 2012- 2013. Maruti Suzuki which controls slightly over half of the domestic car market in the country has said that it would design small cars suitable for the Indian conditions as a strategy to beat the stiff competition with the entry of global auto makers. It would be launching compact cars with more features to meet the needs of the customers locally.CHAPTER IVRESEARCH METHODOLOGYThe nature of the project work has been exploratory as no h ypothesis, is taken to be tested. Though the conclusions drawn could be taken as the hypothesis and further tested b y the research work undertaken in the relevant field. The reason for choosing the exploratory research design is the fact the project report has been primarily based upon the secondary sources of data and whose authenticity could be assured of.The reluctance of the company's personnel in parting with much of information led the project report to be based substantially on the secondary source of data. Marketing research is a systematic design, collection, analysis & reporting of Data which is relevant to specific market situation . The objective of the research conducted was to study of consumers preference for online share trading. Secondary objective of the survey was to know the customers satisfaction level. My other objectives were to find out the overall perception about the system and what motivates the people to think about going for online share trading.

Developing research plan: The second stage of marketing research calls for developing a most efficient plan forgathering needed information. Designing a research plan calls for taking decision on data sources research, approach, research instrument, sampling plan and contact methods.

Data Source: There are two types of methods used in data collection i.e. primary data & secondary data.

A) Primary Data: Those data which are collected at first hand by the researcher especially for the purpose of the study ,are known as primary Data .The data is collected directly from the person in sample population. In this project research the collection of data is directly interviewing customer. In the collection of the primary data, I have used survey method and used the questionnaire methods.

B) Secondary Data: Any data which had been gathered earlier for other purposes are secondary data in hand of marketing research. These data has been collected from company dealer like Dealer profile, industrial profile, company profile are collected from the internet. In my survey, I have used the personal interview to know customer awareness towards online share trading. I have visited respondents personally. The secondary data are collected from the internet and Web -sites. Different web sites like www.sharekhan.com and GOOGLE Search engine help in collecting the detailed information.

QUESTIONAIRESSalaryRs.5,000-10,000Rs.10,000-15,000Rs.15,000-20,000Rs.20,000 and Above

Totals2657

Interpretation:More number of Consumers are earning more than Rs.20,000/- per month earn a vehicle

Age20-3030-40Above 40

Totals3611

Interpretation:Most of the people of age above 40years are having vehicles. Which company vehicle do you have?VehicleTataMarutiOthers

Percentage25%30%45%

Totals569

Interpretation:Most of the customers use Vehicles of other than TATA and Maruti brand. But, number of consumers of Maruti are more than TATA. Which means Maruti has a good Market share. From how many years do have this vehicle? Years1 to 5 yrs5 to 10 yrs10 to 15 yrs

Totals1172

Interpretation:More number of Consumers are using their vehicles from 1 to 5yrs. Only 1% consumer contribute to use vehicle for 10-15yrs. What version of vehicle do you have? VersionPetrolDieselPetrol with LPG kit

Totals8102

Interpretation:Customers are using Diesel Version more than Petrol and LPG Kit.

If given a chance to buy a vehicle of your choice, which you would prefer?

VehicleTata MotorsMarutiOthers

Totals587

Interpretation:More number of consumers are interested in buying Maruti Suzuki due to its Low maintenance quality. Thus, there is customer satisfaction and brand loyalty. How often you get your vehicle serviced? Service3months6 months1 year

Totals974

Interpretation:Most of the consumers service their Vehicle for every 3months. Can you rate the satisfaction level with respect to features?

Satisfaction LevelExcellentGood FairFuel EfficiencyStyleOther

Totals353342

Interpretation:Consumers rate their vehicle Good enough for its features. Also people are interested in stylish appearance of their vehicle.

Who influenced you to buy this vehicle? InfluencesMotiveFriendsAdvertisementsThe person who is already using this vehicle

Total6473

Interpretation:Highly percent of the consumers has been influenced by advertisements. Thus, advertisement plays an important role for consumer retention. Only 15% people are influenced by the person recommended who is already using the vehicle. How you feel about the after sales services offered?

After Sale ServiceHighly satisfiedSatisfiedNot satisfied

Totals4115

Interpretation:Consumers are satisfied with their After Sale Service. This leads to customer retention for the company.

CHAPTER VFINDINGS & CONCLUSIONFINDINGSMARKETING MANAGEMENT: This segment is the initial cause for the sustainability of maruthi as an leader in themarket of passenger cars.

Maruthisuzukiconductsr&d,indevelopingmarketingstrategiesandproducts,which are near to customer preferences andtastes.FINANCIAL MANAGEMENT: As Maruthi Suzuki is an company which consists of Indian governmentscapital , itfollows lawful and ethical practicesimpractically in accounting its finance. This company at most reaches the standard ratioin every ratio every year.

Currently Suzuki holds 54.2% stake of Marti, the balance being held by variousQIBs, PCBs Public. On BSE, Marti has the highest market capitalization in the auto sector. We are the largest car company in the country. So far, we have produced more than6.6 million cars. We are Suzuki's largest manufacturing facility, outside Japan offering 11 modelsin over 150 variants. The turnover last year was USD 3.37 Bn employing more than 6700 employees. The high localization of parts within India is oneof our distinct strengths. Where the company has 3 plants in Gurgaon facility, 4th plant was added withthe capacity of 100000 Cars.CUSTOMER SATISFACTION:Maruti Suzuki, the country's largest car maker has ranked highest in customer satisfaction with dealer service for a 14th consecutive year- rated by a market researcher JD PowerAsiaPacific. The study measures overall satisfaction in five factors- service quality, vehicle pick-up, service advisor, service facility and service initiation.

CONCLUSION A detail analysis on the business of Maruti Suzuki is done based on the various theories laid down under business strategy. The analysis included applying various concepts and theories to understand portfolio analysis, value chain of the company, cost component, willingness to pay and growth prospects of the company in near future. It can be concluded that Maruti Suzuki is expanding its product basket by offering value(swift, sx4) at different income level. Maruti Suzuki stands for value as much as it stands for performance. In spite of rising input costs, Maruti Suzuki always tries to provide cars a treasonable cost. Their running costs and resale values are unbeatable too. This enabled Maruti to become Market leader. Suzuki gaining globally on back of small car portfolio. Economies of Scale make India attractive destination for Maruti Suzuki. With the passenger car sales over spiraling fuel prices and high interest rates, Indias largest car manufacturer, Maruti Suzuki India, is working on customer specific marketing strategy to increase its sales among the first time buyers. The company have maximum 47 per cent market share among the first time buyers. Maruti Suzuki is far behind in luxury and SUV car, the other player like GM, TATA, Mahindra, Honda and Toyota are already established in the market, so replacing them would not be easy Learning can be put as understanding of various theories of business strategy and practically using them to comprehend on economic, industry and financial details.The study also calculated the satisfaction level among the vehicle buyers who visited the authorised service centre for maintenance/repair work within the first 2 years of vehicle ownership. It is also stated that the overall quality of service showed a consistent strong performance across the auto industry year over year.

Bibliography:

www.google.com

www.marutisuzuki.com

www.autodrive.com