CUSTOMER RETENTION WITH REFERENCE

TO POPULAR AUTOMOBILES

Submitted By,

ANANDHAKUMAR.A

(9909115195)

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

Mr. K.SARAVANAN MBA

KALASALINGAM UNIVERSITY

ANAND NAGAR,

KRISHNANKOVIL – 626 190

APRIL 2011

1
 KALASALINGAM UNIVERSITY
(Kalasalingam Academy of Research and Education)
Krishnankoil – 626190

DEPARTMENT OF BUSINESS ADMINISTRATION

BONAFIDE CERTIFICATE

This is to certify that the project report titled “CUSTOMER RETENTION WITH
REFERENCE TO POPULAR AUTOMOBILES” is A bonafide work done by
Mr. A.ANANDHAKUMAR, Reg. No.: 9909115195 in partial Fulfillment of the award of the
degree of Master of business administration in Kalasalingam University under the guidance of
Mr. K.SARAVANAN Assistant Professor

Signature of Guide Head of the Department

(Mr .K.SARAVANAN) (Dr. P.VENKUMAR)

2
 ACKNOWLEDGEMENT

I express my thanks to GOD, the guiding light of our life, for granting me potential

and courage to complete this project report successfully. I wish to express my gratefulness to

Mr.K.Saravanan who had provided me all the facilities and guidance with all his heart to

complete my training. I am much obliged to express my deep sense of gratitude to

Mr.Chandrasekar, Manager, Popular vehicles and service Ltd, Chennai, for providing the

project, suggesting the problem and his support and guidance rendered for the study

My deepest sense of gratitude to all my lovable friends for their constant moral

support and understanding. I am in dearth of words to express my gratitude to my dear parents,

brothers and grandparents without whose affection and support this would not have been

successfully materialized. Last, but not the least, I honestly extend my thanks to all the

Customers who rendered immense co-operation to complete this study successfully. I place at

the feet of the almighty my humble heart filled with gratitude for all the blessings showered upon

me.

(A.Anandhakumar)

3
 ABSTRACT

The research was done on the topic “CUSTOMER RETENTION WITH REFERENCE
TO POPULAR AUTOMOBILES”. The study aims at identifying the Awareness& overall
satisfaction towards promotional activities carried out by POPULAR VEHICLES. The data was
collected with the help of a questionnaire. The sample size considered for the study was 200
wherein all the samples were customers in POPULAR VEHICLES.

The tools used for the analysis include Percentage Analysis. The study revealed
that the customers have awareness towards the promotional activities in POPULAR VEHICLES.

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 DECLARATION

We hereby declare that the project titled “CUSTOMER RETENTION WITH REFERENCE
TO POPULAR AUTOMOBILES ” is an original piece of research work carried out by us
under the guidance and supervision of Mr. K.SARAVANAN. The information has been
collected from genuine & authentic sources. The work has been submitted in partial fulfillment
of the requirement of PGDM (MRKT).

Place: Signature:

Date: Name of the student

5
S.NO TABLE OF CONTENTS PAGE NO
1 Chapter 1
Executive Summary 9
Introduction to topic 10
Objectives of the study
2 Chapter 2
Industry Profile 17
Boom in Indian Automobile Industry 19
E-Business of Automotive Industry
3 Chapter 3
Company Profile
History of Maruti Suzuki Ltd 25
About Popular Automobiles 29
History of Popular Automobiles 31
4 Chapter 4
Research Methodology 34

5 Chapter 5 46
Review of Literature
6 Chapter 6 48
Data Analysis and Interpretation
7 Chapter 7 73
Limitations of the Project
8 Chapter 8 75
Suggestion of the Project
9 Chapter 9 78
Conclusion of the Project
10 Chapter 10 82
Bibliography
11 Chapter 11 84
Annexure

LIST OF TABLES

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SL.NO. TITLE OF THE TABLE PAGE NO.
1 What type of car do you prefer from Maruti 48
Suzuki
2 What is your perception about Maruti Suzuki 50
automobile product
3 From where do you come to know about 52
Popular Automobiles
4 54
Why do you choose this Maruti Suzuki brand
5 If you are going to be a customer of Maruti 56
Suzuki cars in future what will be your
expectation
6 What do you feel about the behavior of sales 58
executives about popular automobiles
7 What do you think about Maruti Suzuki 60
automobile
8 What do you think about the space availability 62
in Maruti cars
9 64
What do you think about the style and design
of Maruti Suzuki cars
10 New technologies such as Bluetooth 66
device,DIS,Reverse parking sensor, are
provided by popular automobiles of Maruti
carsis it good and makes you feel comfort
while driving.
11 What do you think about the different 68
variations of price level provided by popular
automobiles
12 Please rate the professionalism of our staff 70
members

LIST OF CHARTS

SL.NO. TITLE OF THE CHART PAGE NO.

1 What type of car do you prefer from Maruti 49

7
 Suzuki
2 What is your perception about Maruti Suzuki 51
automobile product
3 From where do you come to know about 53
Popular Automobiles
4 55
Why do you choose this Maruti Suzuki brand
5 If you are going to be a customer of Maruti 57
Suzuki cars in future what will be your
expectation
6 What do you feel about the behavior of sales 59
executives about popular automobiles
7 What do you think about Maruti Suzuki 61
automobile
8 What do you think about the space availability 63
in Maruti cars
9 65
What do you think about the style and design
of Maruti Suzuki cars
10 New technologies such as Bluetooth 67
device,DIS,Reverse parking sensor, are
provided by popular automobiles of Maruti
carsis it good and makes you feel comfort
while driving.
11 What do you think about the different 69
variations of price level provided by popular
automobiles
12 Please rate the professionalism of our staff 71
members

Executive summary
 Introduction of customer retention

Customer retention is the maintenance of continuous trading relationships with customers

over the long term. Customer retention is the mirror image of customer defection or
churn. High retention is equivalent to low defection. Customer retention is about keeping
the customers organization has spent that money to acquire. And if you’re in an industry
8
 where they make multiple purchases over the years, organization entire team should be
very focused on retaining those customers.

A customer retention strategy aims to keep a high proportion of valuable customers by reducing
customer defections (churn), and a customer development strategy aims to increase the value of
those retained customers to the company. Just as customer acquisition is focused on particular
prospects, retention and development also focus on particular customers. Focus is necessary
because not all customers are worth retaining and not all customers have potential for
development. We will deal with the issue of retention first, before turning to development.

 Which customers will be targeted for retention?

 What customer retention strategies will be used?
 How will the customer retention performance be measured?

 Objectives of the study

1. To Know whether the different variations of price level provided by popular vehicles
satisfies consumers

2. The main objective is to access strategies surge or sustain existing customers and generate new
customers.

3. To Analyze Competitors Strength and to make elevate than others.

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4. To analyze customer desires towards Maruti products and take efforts to fulfill.

5. To analyze present status about maruti products compare with the same level.

10
 INDUSTRY PROFILE

Industry profile

Automobile Industry History: 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

11
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 traveling comfortable and as a result, the
short ranged, electric battery driven automobiles were no more the best option for traveling 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 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 79.9 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.[2] 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, China, Russia, Brazil and India saw the most rapid growth.

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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. In the
opinion of some, urban transport systems based 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 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 re-evaluate their private vehicle usage. Roughly half of the
US's fifty-one 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.[8] China
became both the largest automobile producer and market in the world after experiencing massive
growth in 2009.

An embryonic automotive industry emerged in India in the 1940s. Following the independence,
in 1953, the Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the growth
was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which
13
hampered the Indian private sector. After 1970, the automotive industry started to grow, but the
growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major
luxury Japanese manufacturers entered the Indian market ultimately leading to the establishment
of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In
the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles
and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its
joint-venture to manufacture small cars. Following the economic liberalization in 1991 and the
gradual weakening of the license raj, a number of Indian and multi-national car companies
launched operations. Since then, automotive component and automobile manufacturing growth
has accelerated to meet domestic and export demands.
Indian automobile industry has grown leaps and bounds since 1898, a time when a car had
touched the Indian streets for the first time. At present it holds a promising tenth position in the
entire world with being # 2 in two wheelers and # 4 in commercial vehicles. Withstanding a
growth rate of 18% per annum and an annual production of more than 2 million units, it may not
be an exaggeration to say that this industry in the coming years will soon touch a figure of 10
million units per year. The Automobile industry has strong backward and forward linkages and
hence provides employment to a large section of the population. Thus the role of Automobile
Industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by the
Automobile Industry.

The major Car manufacturer are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd.,
Ford India Ltd ., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd.,Hyundai Motors
India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd., to name a few.

The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle &
Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc.

The heavy motors like buses, trucks, defense vehicles, auto rickshaws and other multi-utility
vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj, Mahindra and
Mahindra, etc.

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The Indian Automobile Market growth is expected to grow at a CAGR of 9.5 percent amounting
to Rs. 13,008 million by 2010 which is a big in number.

The Commercial Vehicle Segment has been contributing to the automobile market to a great
extent. So as in passenger luxury cars now/ Many foreign companies
LikeMercedes,Suzuki,chevorlet,Honda,mitsubushi,Toyota,Hyundai etc. have been
investing in the Indian Automobile Market in various ways such as
technology transfers, joint ventures, strategic alliances, exports, and
financial collaborations.like maruti joined hands with Suzuki in passenger
cars,same as Mahindra with Renault,hero joint ventures Honda in two
wheeler segment,ashkoa with Leyland in commercial vehicle segment.The
auto market in India can boast of attractive finance schemes, increasing
purchasing power, and launch of the latest products.investments in the
automobile industry by the foreign companies in india help in strengthening
the india`s economy.
Turnover of Automobile Manufacturer
Year In USD Million
2002-2003 14,880
2003-2004 16,554
2004-2005 20,896
2005-2006 27,011
2006-2007 34,285

Driving the most luxurious car has been made possible by the stiff competition in the automobile
industry in India, with overseas players gathering the same momentum as the domestic
participants.

15
 Every other day, we have been hearing about some new launches, some low cost cars – all
customized in a manner such that the common man is not left behind. In 2009, the automobile
industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry
in India has been hit badly by the ongoing global financial crisis. The automobile industry in
India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand,
in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile
manufacturers have spread their operations globally as well, asking for more investments in the
Indian automobile sector by the MNCs.

Boom in Indian automobile industry

Today, vehicles are in great demand between all segments of society. With too huge demand of
vehicles, automobile industry is the fastest growing industry all over the world. Automobile
industries play a vital role in economic development of any country.
Every week a new model of car or bike has been launching to accomplish the requirement of
buyers. Various automobile manufacturing companies are in the market, which provide a lot of
vehicle according to the requirements of different segment of peoples. Automobile companies
are offering various products according to users budget. Gone are the days, when one had to wait
for their dream vehicles. Today, it is not difficult to buy a dream vehicle because of various
financial institutions. Many banks are providing loan and converting your dream into reality.

16
Buyer needs to pay some extra money as interest rate for that finance amount. This amount
depends on various factors such as buyer’s credit past, finance amount, loan period and the term
and conditions of financial institution.

If we consider the Indian automobile industry, there are various companies, which are offering
all type of vehicles in the market. Automobile manufacturing companies are offering different
cars, two wheelers, three wheelers, commercial vehicles, sport vehicles and other utility vehicles
according to the user’s requirement. As we all know, cars have become a need for today’s world.
Automobile companies are offering various premium cars to entry-level cars for the customers.
There are various car-manufacturing companies in Indian market. Some giants in manufacturing
of cars are Audi, Ford, Fiat, Honda, Hyundai, Skoda, Maruti, BMW, Mercedes, Mahindra &
Mahindra, Hindustan Motors and General Motors. Some awaited car models, which are about to
launch in the year 2008 are Fiesta 1.4 SXi Duratorq, Opel GT, Aveo U-VA, Getz Next
Generation, Logan, Rhino Rover, Audi Q7, Montero, Outlander, Grandis, Santa Fe and
Roomster. Tata motors also working to produce their low budget car till the July 2008. All the
companies are offering various attractive models in different color and designs. In two-wheeler
industries, Hero Honda, Bajaj Auto, TVS Motors, Yamaha, Honda, Suzuki and kinetic motors
are offering various motorcycles, scooters and scooterettes to the market. One can choose among
the various models according to his need and budget.

In the initial years after independence Indian automobile industry was plagued by unfavourable
government policies. All it had to offer in the passenger car segment was a 1940s Morris model
called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile
sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the
1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of
tariffs on imports, and refining the banking policies played a vital role in turning around the
Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a
handful of local companies. However, after the sector opened to foreign direct investment in
1996, global majors moved in. Automobile industry in India also received an unintended boost
from stringent government auto emission regulations over the past few years. This ensured that
vehicles produced in India conformed to the standards of the developed world.

17
Indian automobile industry has matured in last few years and offers differentiated products for
different segments of the society. It is currently making inroads into the rural middle class
market after its inroads into the urban markets and rural rich. In the recent years Indian
automobile sector has witnessed a slew of investments. India is on every major global
automobile player's radar. Indian automobile industry is also fast becoming an outsourcing hub
for automobile companies worldwide, as indicated by the zooming automobile exports from the
country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their
manufacturing bases in India. Due to rapid economic growth and higher disposable income it is
believed that the success story of the Indian automobile industry is not going to end soon.

Some of the major characteristics of Indian automobile sector are:

 Second largest two-wheeler market in the world.
 Fourth largest commercial vehicle market in the world.
 11th largest passenger car market in the world
 Expected to become the world's third largest automobile market by 2030, behind only
China and the US.

E-BUSINESS OF AUTOMOTIVE INDUSTRY

The online vehicle market in India has been providing excellent services to online vehicle sellers
as well online vehicle buyers. The advantage of online vehicle buying is that one can get an
exhaustive list of cars and bikes and even make a purchase without having to leave the comforts
of one's house. Many websites like autoindia.com, ebay.ca.in are their too promote online
business of auto industry. Sellers can make their vehicles available instantly through the Internet
to millions of buyers at the domestic level. Online vehicle selling sites advertise in daily
newspapers and magazines ensuring buyer as well as seller attention benefitting both. Online
Vehicle Marketing India provides valuable information on vehicle overviews, dealers, financing
institutions, insurance companies, and also product comparisons. All information is with regard

18
to the region of the online vehicle purchaser. Many customer services are offered online. The
online Indian automobile market is part of the growing automobile industry in India.
The Online Vehicles market in India provides full security to its buyers and sellers. Some of the
security measures have been mentioned below:

 Good online companies do not keep a record of the transactions made

Nor are they involved in the transacting process.
 No trustee or financial department services offered by the websites.
 Discouraging the practice of advance payment. Thus, avoiding the
Possibility of fraud.
 Reliable websites like Cartradeindia.com, ebay.ca.in make sure that that their customers
are not victims of manipulated electronic paper work.

COMPETITIEVE FACTORS OF AUTOMOBILE INDUSTRY OF INDIA

The automotive sector is one of India’s largest and fastest growing manufacturing sectors. It is
ranked the 11th largest passenger car producer in the world. In the category of motorcycles and
scooters, India is ranked 1st and 2nd respectively. With India increasingly liberalizing its market
place, many new joint ventures evolved, resulting in close to 24 global auto manufacturers
setting up their shop in India.

Competition in India

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As a result, competition in India’s automobile had been heating up in the recent years. Many
global players in the automobile have already set up presence in India. Most of them are through
tie-ups with dominant local players, while some are done entirely on their own.
In the absence of strong competition in the past, the local car manufacturer Maruti Udyog Ltd
(MUL) has virtually dominated the Indian automotive market in the passenger segments since
the 1980s. As the automotive manufacturing sector rapidly evolved through the dynamics of
open market and deregulation, many new joint ventures (both technical and financial) were
formed between local players with leading global manufacturers. In 1982, MUL, then a wholly
government-owned company, signed up a collaboration agreement with Suzuki of Japan to
establish the volume production of contemporary models. Subsequently, the licensing regime
was scrapped in 1993 paving way for 17 new ventures, of which 16 are now manufacturing cars .
since then; there has also been an emergence of new competition for higher value segments of
the passenger car market. Hence, local players like MUL also began to face competition from
new foreign car makers. Ford entered the mid-range market with the Icon model in April 1998, a
move which was followed by Honda, Mitsubishi, Hyundai, and Daewoo. Other players, Hyundai
and Daewoo, have since improved their share of the passenger car market with new models For
the 4-wheelers segment, MUL/Suzuki dominates the automotive landscape holding a 33% share
of the passenger car market in 2004/05. In the second place is Tata Motors, a local company,
commanding 26% share, while Hyundai Motor ranked third with 15% share and the rest split
amongst close to 2 dozen other manufacturers.
For the 2-wheelers segment, it remains quite a local dominant game but global players also have
obvious presence in the market. Major players in this segment include Bajaj Auto, TVS Suzuki,
LML Limited, Hero-Honda Motors, Yamaha Motor India, Kinetic Engineering, Maharashtra
Scooters Majestic Auto, Kinetic-Honda Motors, Royal Enfield (India), Scooters (India), Greaves
Ltd. Foreign manufacturers also have presence in India through their 100% owned subsidiaries,
e.g. Honda Motorcycle, Scooter India Pvt. Ltd. M/s Honda Motor Co., Japan, Yamaha Motor,
Japan. The largest player is Hero Honda Motors, accounting for 40% of market share, followed
by Bajaj Auto and TVS Motor, which account for 27% and 18% respectively.

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 Competition in the International Market

Besides on the competition observed amongst all global players in the domestic Indian market,
India as an automotive manufacturing country is also pitting against other competitors in the
international market. In terms of exports of automobile, India is ranked 29th, while China, the
other huge automotive factory ranked 17th. For exports of auto parts, India was 26th, while
China came in 11th. The top country for exports of automobile and auto parts was Germany.

Market segment

Despite increased competition, Maruti Suzuki, which is now majority owned by Suzuki Motor
Corp, remains the market leader in India with a share of nearly 44%. Its strength lies in its wide

21
range of small car models, which form the bulk of the Indian car market. Maruti Suzuki also has
the largest dealer network and its annual manufacturing capacity is close to 1 million vehicles.

Tata Motors has a wider product range, from SUV’s to the world’s cheapest car, the Nano.

22
COMPANY PROFILE

Company profile

Maruti Suzuki India Ltd

23
 Type Public (BSE MARUTI, NSE MARUTI)
Founded 1981
Headquarters Gurgaon
(Delhi metropolitan area), Haryana, India
Key people Jagdish Khattar, CEO
Shinzo Nakanishi, Managing Director
Industry Automotive
Products Cars
Revenue ▲~$3.1 billion (2007)
Employees 3,334
Slogan Count on us.
Website http://www.marutisuzuki.com

History of Maruti Suzuki India LTD

Maruti Suzuki India Limited, formerly Maruti Udyog Limited, is engaged in the business of
manufacturing, purchase and sale of motor vehicles and spare parts (automobiles). The other
activities of the Company include facilitation of pre-owned car sales, fleet management and car
financing. The Company has four plants, three located in Palam Gurgaon Road, Gurgaon,
Haryana and one located at Manesar Industrial Town, Gurgaon, Haryana. During the fiscal year
ended March 31, 2009, the Company produced and sold over seven million cars, and exported
more than 500,000 cars. The Company's subsidiaries include Maruti Insurance Business Agency
Limited, Maruti Insurance Distribution Services Limited, Maruti Insurance Agency Solutions
Limited, Maruti Insurance Agency Network Limited, Maruti Insurance Agency Services Limited
and Maruti Insurance Agency Logistics Limited. The Company’s subsidiaries are engaged in the
business of selling motor insurance policies to owners of Maruti Suzuki vehicles.

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-wheeler
automobile manufacturer in South Asia. Suzuki Motor

24
Corporation of Japan holds a majority stake in the company. 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. On 17 September, 2007, Maruti
Udyog was renamed to Maruti Suzuki India Limited. The company's headquarters remain in
Gurgaon, near Delhi.

Maruti Udhyog Limited is India's largest automobile company. Its main factory is situated in
Gurgaon district, Haryana. The company, a joint venture with of Government of India with
Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile
industry. The first cars rolled out for sale on 14th December 1983, (the Company went into
production in a record 13 months), marking the beginning of a revolution in the Indian
automobile industry.
We were born as a government company, with Suzuki as a minor partner, to make a people's car for
middle class India. Over the years, our product range has widened, ownership has changed hands and
the customer has evolved. What remains unchanged, then and now, is our mission to motorise India. Our
parent company, Suzuki Motor Corporation, has been a global leader in mini and compact cars for three
decades. Suzuki's technical superiority lies in its ability to pack power and performance into a compact,
lightweight engine that is clean and fuel efficient.   The same characteristics make our cars extremely
relevant to Indian customers and Indian conditions. Product quality, safety and cost consciousness are
embedded into our manufacturing process, which we have inherited from our parent company.Right
from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy 'smaller, fewer,
lighter, shorter and neater'
From the Japanese work culture we imbibed simple practices like an open office, a common uniform
and common canteen for everyone from the Managing Director to the workman, daily morning exercise,
and quality circle teams.  

On 14th December, 1983, first Maruti 800, India's iconic car rolled-off the assembly line at company's
Gurgaon plant. Late Mrs. Indira Gandhi, the then Prime Minister of India, handed over keys for this car
to the first Maruti customer. Since then, Maruti Suzuki has produced and sold around 75 lakh (7.5
million) cars to address the needs of customers across segments.Maruti's current efforts mirror the

25
government's vision to put India in the international map for producing compact small cars. All over the
world, Suzuki is acknowledged for its know-how in producing small cars. The government's renewed
focus on promoting small cars, offers a major opportunity for Maruti Suzuki.

The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the decade
ending 1983. In 1993, this figure reached a number of 1, 96,820. Maruti's figures are a different
story altogether. Maruti reached a total production of one million motorcars in March 1994,
becoming the first Indian company to cross this milestone and crossed the two million mark in
1997.For the year ended 1997-98, Maruti posted a turnover of US$ 2.1 billion and a Profit before
Tax of US$ 244 million. During the year, Maruti produced over 350,000 vehicles, out of which
26,000 were exported. Through the years Maruti has provided world-class Japanese technology,
suitably adapted to Indian conditions and Indian car users.

The Maruti models on road now are

1. Maruti 1000: Launched 1990
2. Maruti Zen: Launched 1993 with a facelift in 2003.Production ended in 2006.
3. Maruti Esteem:Launched 1994 Maruti Wagon-R:Launched 1999 Modified
2006
4. Maruti Baleno:Launched 1999. Production ended late 2006/early 2007.
5. Maruti Alto:Launched 2000. Currently the largest selling car in India
6. Maruti Grand Vitara:Launched 2003
7. Maruti Grand Vitara XL-7
8. Maruti Versa: Launched 2003

9. Maruti Swift: Launched 2005

10. Maruti Zen Estilo Launched in 2006
11. Maruti Swift Diesel Launched in 2007
12. Maruti Suzuki SX4 Launched in May 2007

26
13. Maruti Grand Vitara Sports Utility Vehicle Launched in July 2007
14. Maruti Ritz launched in 2009
15. Maruti Ecco launched in 2009
16. Maruti Wagon r revised model launched in 2010

Authorized Service Stations of Maruti

Maruti is one of the companies in India which has unparalleled service network. To ensure the
vehicles sold by them are serviced properly Maruti had 1545 listed Authorized service stations
and 30 Express Service Stations on 30 highways across India.Service is a major revenue
generator of the company. Most of the service stations are managed on franchise basis, where
Maruti trains the local staff. Other automobile companies have not been able to match this
benchmark set by Maruti. The Express Service stations help many stranded vehicles on the
highways by sending across their repair man to the vehicle.

27
Maruti’s Vision:

"The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder's
Wealth; A pride of India."

By this period of time, few other car manufacturers had also hit the Indian market which
eventually made Maruti more competitive in its car models and more aggressive in its
operations. The introduction of Zen was then followed by the launch of Maruti Suzuki Esteem in
1994, Maruti Suzuki Baleno and Maruti Suzuki WagonR in 1999, and Maruti Suzuki Alto in
2000. The company also launched another SUV in the Indian market known as Maruti Suzuki
Grand Vitara in 2003. This car was not successful during that year and was phased out. Later in
28
2007, the company re-introduced the new car with better features and engine technology. Maruti
Suzuki Versa and Maruti Suzuki Zen Estilo are an addition to Maruti cars but unfortunately were
not as successful as other in the list.

After these successful launches by Maruti Suzuki, a world strategic car model, popularly known
as Maruti Suzuki Swift, was introduced in 2005. This car is available in both petrol and diesel
version and is a big hit in the Indian car market. Swift is as swift as its name and is winning
hearts and applauds across the country.

Maruti Suzuki was happy with the praises and appreciation received by all its customers but was
not happy with the lack of one successful sedan. This made the company the company
introduced a hot, elegant and one of the most comfortable sedan, christened as Maruti Suzuki
SX4, in 2007.

This is the entire journey of Maruti Suzuki India since the time of its inception in 1981. Even
further Maruti aims to make compact, fuel efficient, low-maintenance, and light-weight cars
better suited to Indian weather and road conditions.

About Popular Automobiles

We believe that our impressive strides in the marketplace stem in equal parts from our proactive
approach and our customers' unstinting support, earned the only way we know: by giving our
customers the most appropriate car luxury solutions for each of their needs, and by backing them
up with consultancy, finance, after sales services and a responsive after-market network. We are
conscious of the fact that vehicles are more than just a means of transporting people and goods;
we understand that they have a deep and far-reaching impact on society, the national economy
and the environment.
As we start our second century of business, we are in a position to appeal to the widest network
of showrooms and service stations. Each of our Maruti automotive brands has a unique
29
personality and holds a distinct value in itself. We carefully select those opportunities that enable
us to deliver better ideas into the marketplace in new and exciting ways. At Popular, we create
network to better connect with our customers. We strengthen our relationships with our
customers through our services like MGP, MOS, MF We collaborate with others to revolutionize
our core business processes and to stay ahead of our rapidly changing industry. We choose new
view to help system that maximizes efficiency and operational services.
Popular Group has its sights set firmly on the economic & premium sector of the national
automobile market. To achieve its aims, the company knows how to deploy its strengths with an
efficiency that is unmatched in the automotive industry. From research and development to sales
and marketing, Popular Group is committed to the very highest in quality for all its products and
services. The company's phenomenal success is proof of this strategy's correctness.

Financial services
.
We see financial services as a key factor for success in today's car world. We have established an
extensive product portfolio which supplies expert information and advice for situations and
questions relating to the finance sector.
We are also proud to honor the hard work of our business and marketing partners.

30
 History of Popular Automobiles Ltd

The POPULAR GROUP was founded by Mr. K.P.Paul Popular in the year 1983 and has grown
to become one of the biggest Transport Operators in Tamilnadu and Kerala, having 12 branches.
The Popular group has since expanded its wings, by way of expansion and diversificationin
various sectors, the first being in 1984 with dealerships of LML – 2 wheelers. It further expanded
its wings to becomes one of the Most Trusted Brand for Maruti Car Dealership in 1996. Not
stopping at its unflinched Automobile Growth, it further acquired the dealership of TVS Two
Wheelers in 2003
Today Popular Automobiles, is one of the “most trusted brands” in the “Automobile Dealership
of Maruti Suzuki”with Showrooms in Annanagar, Pallikaranai. Today the Popular Group is
proud to have a family of 2000 dedicated, satisfied and committed work force. The Group further
has a “satisfied” customer base of more than 2,00,000 happy families.

Management of Popular Automobiles Ltd.

The Board of Directors and the Management of Popular Group are committed to the
enhancement of its products and services, through sound business decisions, prudent financial
management and high standards of ethics throughout the organization, by ensuring transparency
and professionalism in all decisions and transactions and achieving excellence in Corporate
Governance by conforming to, and exceeding wherever possible, the prevalent mandatory
guidelines on Corporate Governance and by regularly reviewing the Board processes and the
Management systems for further improvement.

31
32
RESEARCH METHODOLOGY

33
 Research Methodology

What is Research?

Research can be defined as the search for knowledge or any systematic investigation to establish
facts. The primary purpose for Descriptive Research, Exploratory Research, Causal Research
interpreting, and the development of methods and systems for the advancement of human
knowledge on a wide variety of scientific matters of our world and the universe. Research can
use the scientific method, but need not do so.

Scientific research relies on the application of the scientific method, a harnessing of curiosity.
This research provides scientific information and theories for the explanation of the nature and
the properties of the world around us. It makes practical applications possible. Scientific research
is funded by public authorities, by charitable organizations and by private groups, including
many companies. Scientific research can be subdivided into different classifications according to
their academic and application disciplines.

Historical research is embodied in the scientific method.The term research is also used to
describe an entire collection of information about a particular subject

Types of Research

Research can be classified by purpose or by method. If we categorise it by purpose, it would fall

into three major categories: Descriptive Research, Exploratory Research and Causal Research.
In this we have to use Descriptive Research.

34
What is Methodology?

Methodology can be:

1. "the analysis of the principles of methods, rules, and postulates employed by a

discipline".
2. "the systematic study of methods that are, can be, or have been applied within a
discipline".

Concept

Methodology may be a description of process, or may be expanded to include a philosophically

coherent collection of theories, concepts or ideas as they relate to a particular discipline or field
of inquiry

Methodology may refer to nothing more than a simple set of methods or procedures, or it may
refer to the rationale and the philosophical assumptions that underlie a particular study relative to
the scientific method. For example, scholarly literature often includes a section on the
methodology of the researchers.

Types of Market Research

Market research is the process of finding information about your competitors, current market
trends or your customers. Most companies invest in market research when they release a new
product, improve on an existing product or if they plan on introducing a particular product in a
new market.

Market research can also prove helpful if you want to explore business opportunities in new
markets. Market research can be conducted by two methods, primary research or secondary
research.

35
-Primary Research

Primary research refers to information that is directly collected from the source. Another simple
method of primary research would be to directly talk to your customers and get their feedback.
Primary research can be both qualitative and quantitative.

Qualitative Primary Research

Qualitative primary research involves gathering information from interviews or focus groups.

 Open-ended interviews include questions that cannot be answered with a yes or no. You
can get a lot of information from such interviews and also find out about the dislikes,
likes, requirements, trends and emotional motivators of your primary market
 A focus group should ideally be led by experienced professionals who can lead a group
of 6 or more people and ask them both general and specific questions. Since trained
professionals are required to handle focus groups, they are very expensive.

-Quantitative Primary Research

Quantitative primary research involves the collection of numerical information from surveys.
This information is then analyzed.

 Surveys can provide you with the information you require if the survey has meaningful
questions. More people would be willing to take a survey as it takes less time. The
cheapest and easiest way of conducting a survey is through the telephone and on the
place where your product is being sold.

JUSTIFICATION:

In this POPULAR AUTOMOBILES Quantitative Primary Research is followed up as it

provides the information at less time and the consumers are also interested to fill up the
questionnairies.

36
-Secondary Market Research

Secondary research is more economical and easier to do when compared to primary research.
Here you will have to analyze the information that has been collected for some other reason. You
can find the data that you require through a set of articles, demographic/ statistical data, studies
etc.

By investing in secondary market research you can analyze your target markets, evaluate your
competitors and assess political, social and economic factors. The internet has a large number of
secondary data sources and most resources, magazines and press releases are now available
online.

Secondary Research Resources

There are a large number of resources from which secondary research information can be
obtained. Some of these sources are:

1. Trade associations

From the reports available with trade associations you can get information on the industries
served, the standards that they observe and the leaders in their field. You can also get
information on the latest trends, issues and competitors.

2. The marketing departments of local colleges

The marketing department of any college can give you access to special research projects and
reports prepared by students.

3. Chamber of commerce

The local chamber of commerce in your area can give you information on your local community
and local businesses. You can also get access to the maps of the area.

37
4. Insurance companies, banks and real estate companies

You can information on the statistics of the communities to whom they provide services.

5. Wholesalers and manufacturers

From manufactures and wholesalers you can get information on customers, problems if any,
costs, industry standards etc.

JUSTIFICATION:

In this POPULAR AUTOMOBILES mainly the information which is collected is based on

Secondary Research which help the dealer to retrive the information whenever is needed and
with the help of this information the dealer plans out its future Marketing Strategies which
influences the Purchasing Factors of The Consumers. The information can be collected from any
reports like The Crisill Report which also shows the current status of its major competitors.

Marketing Research Process

Marketing research process is a set of six steps which defines the tasks to be accomplished in
conducting a marketing research study. These include problem definition, developing an
approach to problem, research design formulation, field work, data preparation and analysis, and
report generation and presentation.

38
Stages of marketing research process

Step 1: Problem Definition:-

The first step in any marketing research project is to define the problem. In defining the problem,
the researcher should take into account the purpose of the study, the relevant background
information, what information is needed, and how it will be used in decision making. Problem
definition involves discussion with the decision makers, interviews with industry experts,
analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once
the problem has been precisely defined, the research can be designed and conducted properly.

Step 2: Development of an Approach to the Problem:-

Development of an approach to the problem includes formulating an objective or theoretical

framework, analytical models, research questions, hypotheses, and identifying characteristics or
factors that can influence the research design. This process is guided by discussions with
management and industry experts, case studies and simulations, analysis of secondary data,
qualitative research and pragmatic considerations.

Step 3: Research Design Formulation:-

A research design is a framework or blueprint for conducting the marketing research project. It
details the procedures necessary for obtaining the required information, and its purpose is to
design a study that will test the hypotheses of interest, determine possible answers to the research
questions, and provide the information needed for decision making. Conducting exploratory
research, precisely defining the variables, and designing appropriate scales to measure them are
also a part of the research design. The issue of how the data should be obtained from the
respondents (for example, by conducting a survey or an experiment) must be addressed. It is also
necessary to design a questionnaire and a sampling plan to select respondents for the study.

39
More formally, formulating the research design involves the following steps:

1. Secondary data analysis

2. Qualitative research
3. Methods of collecting quantitative data (survey, observation, and experimentation)
4. Definition of the information needed
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis

Step 4: Field Work or Data Collection:-

Data collection involves a field force or staff that operates either in the field, as in the case of
personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing),
from an office by telephone (telephone or computer-assisted telephone interviewing), or through
mail (traditional mail and mail panel surveys with prerecruited households). Proper selection,
training, supervision, and evaluation of the field force help minimize data-collection errors.

Step 5: Data Preparation and Analysis:-

Data preparation includes the editing, coding, transcription, and verification of data. Each
questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or
letter codes are assigned to represent each response to each question in the questionnaire. The
data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or
input directly into the computer. Verification ensures that the data from the original
questionnaires have been accurately transcribed, while data analysis, guided by the plan of data
analysis, gives meaning to the data that have been collected. Univariate techniques are used for
analyzing data when there is a single measurement of each element or unit in the sample, or, if
there are several measurements of each element, each RCH variable is analyzed in isolation. On
the other hand, multivariate techniques are used for analyzing data when there are two or more
measurements on each element and the variables are analyzed simultaneously.

40
Step 6: Report Preparation and Presentation:-

The entire project should be documented in a written report which addresses the specific research
questions identified, describes the approach, the research design, data collection, and data
analysis procedures adopted, and presents the results and the major findings. The findings should
be presented in a comprehensible format so that they can be readily used in the decision making
process. In addition, an oral presentation should be made to management using tables, figures,
and graphs to enhance clarity and impact. For these reasons, interviews with experts are more
useful in conducting marketing research for industrial firms and for products of a technical
nature, where it is relatively easy to identify and approach the experts.

Explanation on Customer Retention

In today's challenging economy and competitive business world, retaining their customer base is
critical to organization success. If they don't give their customers some good reasons to stay,
organization’s competitors will give them a reason to leave. Customer retention and satisfaction
drive profits. It's far less expensive to cultivate organization existing customer base and sell more
services to them than it is to seek new, single-transaction customers. Most surveys across
industries show that keeping one existing customer is five to seven times more profitable than
attracting one new one.

A customer-focused approach among its employees is still not present. In this era of intense
competition, it is very important for any service company to understand that merely acquiring
customers is not sufficient because there is a direct link between customer retention over time
and profitability & growth. Customer retention to a great extent depends on service quality and
customer satisfaction. It also depends on the ability of the organization to encourage customers
to complain and then recover when things go wrong. Complaints are natural part of any service
activity as mistakes are an unavoidable feature of all human endeavor and thus also of service
recovery. Service recovery is the process of putting things right after something goes wrong in
the service delivery.

41
Customer retention is the maintenance of continuous trading relationships with customers over
the long term. Customer retention is the mirror image of customer defection or churn. High
retention is equivalent to low defection. Customer retention is about keeping the customers
organization has spent that money to acquire. And if you’re in an industry where they make
multiple purchases over the years, organization entire team should be very focused on retaining
those customers:

 Delivering service that’s consistent with your value proposition and brand
 Cross-selling, up-selling and asking for referrals from existing customers
 Developing programs to increase customer loyalty and decrease turnover
 Knowing the lifetime value for different segments and using that data to improve your
marketing.
 Prioritizing retention as a major focus in your annual marketing plan.

Customer retention has always been an important topic for the marketing. For sure, the
advantages of loyal clients are obvious. In the last years the concept had a renaissance because of
the new term CRM (Customer Relationship Management). However, CRM comprises nearly
every customer oriented activity from a complaint hotline to client cards and client clubs. Often
CRM is only implementing new systems for data mining and client segmentation or operational
systems like a complaint management. But the thing is: data mining systems or client clubs are
not the basis. They are the cherry of the cake called client retention. A company like Porsche
needs no client club to tie up the customer to the brand. According to Buchanan and Gilles the
increased profitability associated with customer retention efforts occurs because of several
factors that occur once a relationship has been established with a customer.

 The cost of acquisition occurs only at the beginning of a relationship, so the

longer the relationship, the lower the amortized cost.
 Account maintenance costs decline as a percentage of total costs (or as a
percentage of revenue).
 Long-term customers tend to be less inclined to switch, and also tend to be fewer prices
sensitive. This can result in stable unit sales volume and increases in dollar-sales volume.
 Long-term customers may initiate free word of mouth promotions and referrals.

42
  Long-term customers are more likely to purchase ancillary products and high margin
supplemental products.
 Customers that stay with you tend to be satisfied with the relationship and are less likely
to switch to competitors, making it difficult for competitors to enter the market or gain
market share.

Importance of Customer Retention

Why are customers more profitable for service firms over a period of time? There are a number
of reasons for this. To begin with, to acquire a customer a company incurs promotional costs like
advertising, sales promotion etc. It is said that it costs five times more to attract a new customer
than retaining one. The operating cost decreases when a customer stays. Services being rich in
experience and credence qualities, it takes some time for customers to get accustomed to it and
once they are used to the service and are satisfied with the service provider ,they tend to purchase
more over a period of time. As they remain satisfied with a service provider, they spread a
positive word of mouth, which is very effective in case of services for attracting new customers.
Longer the customer stays with an organization, more the organization knows about him, which
enables it to offer customized services which make it difficult for the customer to defect. This
may even provide opportunities to the organization to charge price premium by offering
individualized services which may be difficult for the competitors to offer.

Considering the importance of retaining customers in service business, Reichheld & Sasser
coined a term ‘Zero Defection’. They highlighted that companies can boost profits by almost
100% by retaining just 5% more of their customers. Further, it is also very important to
understand the life time value of a customer. Further, if by a positive word of mouth, he brings
just one more customer to the organization, his value to the organization doubles. Therefore, it is
important for all the employees in the organization to understand the life time value of their
customers. Once they understand it, they will treat the customer accordingly and will focus on
building relationship with the very people who keep them in business.

43
 Objectives of the Study

1) To know about company’s responsibilities for their Customers.

2) To know the consumer relationship with POPULAR AUTOMOBILES.

3) To know the thinking of the customer for purchasing the car of Maruti Suzuki.

4) To know about code of conduct and which rules and procedures are followed by employees.

5) To know about employees burden level for stick the customer in company.

6) To study about the perception of maruti Suzuki automobiles product.

7) To know whether the different variations of price level provided by POPULAR

AUTOMOBILES satisfies consumers.

8) To know about employees burden level for stick the customer in company.

9) To know that why the customer choose the Maruti Suzuki brand in purchasing their dream
car.

44
Review of Literature

45
REVIEW OF LITERATURE ON CUSTOMER RETENTION
Improving Customer Retention Rates Through Direct Intervention 

The significance of customer retention was first quantified by Reichheld and Sasser (1990). They
found that profits in service industries, including credit card companies, increased in direct
proportion to the length of a customer's relationship. They noted the experience of MBNA
America, citing its "customer defection 'swat' team staffed by some of the company's best
telemarketers," which achieved a 50% success rate in persuading customers to retain their credit
cards. At MBNA, a 5% improvement in customer retention increased average customer value by
125%. Reichheld and Sasser (1990) concluded that cutting defections in half could more than
double the growth rate of the average company.  

The Link Between Customer Satisfaction and Customer Retention 

Many authors (Reichheld and Kenny, 1990; Zeithaml, et.al., 1990; Bowen and Lawler, 1990;
Schlesinger and Heskett, 1991) have cited the relationship between customer retention and the
quality of service experienced by the customer. 

Reichheld and Kenny (1990) specified six factors as imperative to improving retention: senior
management commitment; a customer-focused culture in which all employees and managers
focused their full attention on customer satisfaction; retention information systems that tracked
and analyzed the root causes of defections; empowerment of front line employees to take actions
that provided immediate customer satisfaction; continuous training and development; and
incentive systems based on customer retention.  

Behaviors and Skills Linked to Service Quality and Customer Retention 

Zeithaml, et. al. (1990), Bowen and Lawler (1990), Reichheld and Kenny (1990) and Schlesinger
and Heskett (1991) cited the need for customer-contact personnel to "take responsibility, think
for themselves and respond well to pressure from customers" (Schlesinger and Heskett, 1991).  

Zeithaml, et. al. (1990) defined role ambiguity as a situation in which employees were: (1)
uncertain about what their managers or supervisors expected from them and how to satisfy those
expectations; (2) lacked the training or skills to provide the service needed for customer
satisfaction; and (3) did not know how their performance would be evaluated and rewarded.  

Many authors (Reichheld and Sasser, 1990; Rackham, 1988; Farber and Wycoff, 1992; Masser
and Leeds, 1984; Bitran and Hoech, 1990; Boyan and Enright, 1992) have linked the ability to
ask probing questions with success in sales. Reichheld and Sasser (1990) stressed the value of
"defection analysis" to determine and correct the root cause of defections, mentioning the value
of skillful probing (questioning) in identifying the reasons why customers cancel, and using that
information as an "early warning signal" for improvement.  

46
ANALYSIS AND INTERPRETATION

47
 Data Analysis and Interpretation

1) What type of car do you prefer from Maruti Suzuki (popular automobiles)?
Small car
Sedan
Luxury

Small car 57%

sedan 29%
luxury 14%

48
 Sales

luxury
14%

sedar small car

29% 57%

Interpretation:- In the above graph we can come to know that there are 14% people who prefers
luxury cars ,29% of the people using sedar cars and 57% of the people using the small cars.
Dark orange is the percentage growth of the people satisfied with the small cars compare to sedar
and luxury cars.

Suggestion:-Best services should be provided to the high-end customers and loans should be
given to the customers at cheaper rates who prefer luxury and sedar cars so it can increase the
sales of luxury and sedar cars.

49
2) What is your perception about Maruti Suzuki automobiles product?
3) Very good
4) Good
5) Average
6) Above average
7) Bad

what is your perceptin about maruti suzuki automobiles product

Cumulative
Frequency Percent Valid Percent Percent

Valid very good 34 16.8 17.0 17.0

good 57 28.2 28.5 45.5

average 34 16.8 17.0 62.5

above average 40 19.8 20.0 82.5

bad 35 17.3 17.5 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:- In the below graph we can come to know that there are 17.5 people who says
bad ,20% of the people saying above average 17% of the people saying average,28.5% of the
people saying good,17% of the people saying very good.

50
51
 3) From where do you come to know about popular automobiles?
Sales personnel
Existing customer
Media
Hoardings
Newspapers

from where do you come to know about popular automobiles

Cumulative
Frequency Percent Valid Percent Percent

Valid sales personnel 30 14.9 15.0 15.0

existing customer 58 28.7 29.0 44.0

media 27 13.4 13.5 57.5

hoardings 42 20.8 21.0 78.5

newspapers 43 21.3 21.5 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-From the above graph we can see that 21.5% of the people come to know from
newspapers about popular automobiles,21% of the people come to know from the
hoardings,13.5% of the people come to know from the media,29% of the people come to know
from existing customers and 15% of the people come to know from sales personnel.

52
53
4) Why do you choose this Maruti Suzuki brand?
Product quality
Low maintenance
Cheaper rates
High mileage
Comfort

why do you choose this maruti suzuki brand

Cumulative
Frequency Percent Valid Percent Percent

Valid product quality 35 17.3 17.5 17.5

low maintenance 49 24.3 24.5 42.0

cheap rate 34 16.8 17.0 59.0

high mileage 39 19.3 19.5 78.5

comfort 43 21.3 21.5 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-From the above graph we can come to know that about 17.5% of the people
select this brand coz of product quality,24.5% of the people select this brand coz they think
maintenance is low,17% of the people think that the rates of this brand is cheaper,19.5% of the
people think that the rates of this brand is high mileage and 21.5% of the people think that the
rates of this brand is comfort.

54
55
5) If you are going to be a customer of maruti Suzuki (popular automobiles) cars in future what will
b your expectation?
More varieties of cars
Improve quality of car
Better after sales services
Maruti Finance
Extended warranty

if you are going to be a customer of maruti suzuki(popular automobiles) cars in future what
will be your expectation

Cumulative
Frequency Percent Valid Percent Percent

Valid more variety of cars 31 15.3 15.5 15.5

improve quality of cars 53 26.2 26.5 42.0

better after sales service 35 17.3 17.5 59.5

maruti finance 40 19.8 20.0 79.5

extended warranty 41 20.3 20.5 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-From the above clustered cone we can see that 15.5% of the people expecting
more varities of cars from this brand,26.5% of the people want to change them the quality of
cars,17.5% of the people likes the after sales services of popular automobiles,20% of the people
likes maruti finance and 20.5% of the people likes extended warranty.

56
57
 6) What do you feel about the behavior of sales executives at popular automobiles?
Bad
Average
Above average
Very good
Good

what do you feel about the behaviour of sales executives at popular automobiles

Cumulative
Frequency Percent Valid Percent Percent

Valid bad 30 14.9 15.0 15.0

average 47 23.3 23.5 38.5

above average 38 18.8 19.0 57.5

very good 44 21.8 22.0 79.5

good 41 20.3 20.5 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-From the above conical graph we can say 15% of the people thinks that the
behavior of sales executives is good, 23.5% thinks that the behavior is average,19% of the people
thinks its above average,22% thinks that the behavior is very good and other 20.5% thinks that
its good.

58
59
 7) What do you think about Maruti Suzuki vehicle?
Accountability
Slightly changes
Customers are not waiting
Old terms and conditions
Need attractive scemes

what do you think about maruti suzuki vehicle

Cumulative
Frequency Percent Valid Percent Percent

Valid accountability 28 13.9 14.0 14.0

slightly changes 54 26.7 27.0 41.0

customers are not waiting 29 14.4 14.5 55.5

old terms and conditions 45 22.3 22.5 78.0

need attractive schemes 44 21.8 22.0 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-In the above diagram we can see that around 14% of the people thinks
accountability,27% of the people thinks slightly changes,14.5% of the people thinks customers
are not waiting,22.5% of the people thinks old terms and conditions and rest 22% of the people
thinks need attractive schemes.

60
61
8) What do you think about the space avaibality in maruti cars?
Extremely spacious
Average
Less space

what do you think about the space availability in maruti cars

Cumulative
Frequency Percent Valid Percent Percent

Valid extremely spacious 64 31.7 32.0 32.0

average 76 37.6 38.0 70.0

less space 60 29.7 30.0 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-From the above circles we can say that 32% of the people say that space
availability in maruti cars is average,38% of the people think that this cars are extremely
spacious and rest of the 30% think that availability of space is less according to them.

62
63
 9) What do you think about the style and design of maruti Suzuki cars?
Very good
Good
Average
Above average
Bad

what do you think about tha style and design of maruti suzuki cars

Cumulative
Frequency Percent Valid Percent Percent

Valid very good 30 14.9 15.0 15.0

good 52 25.7 26.0 41.0

average 27 13.4 13.5 54.5

above average 44 21.8 22.0 76.5

bad 47 23.3 23.5 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-In the above diagram we can see that around 15% of the people thinks very
good,26% of the people thinks good,13.5% of the people thinks average,22% of the people
thinks above average and rest 23.5% of the people thinks bad.

64
65
 10) New technologies such as Bluetooth device,DIS,reverse parkin sensor are provided by
popular automobiles of maruti suzuki cars is it good and makes you feel comfort while
drivin?
Excellent
Very good
Good
Average
Above average

new technology such as bluetooth device,dis,reverse parking sensor are provided by

popular automobiles of maruti suzuki cars is it goog and makes you feel comfort
while driving

Cumulative
Frequency Percent Valid Percent Percent

Valid excellent 29 14.4 14.5 14.5

very good 57 28.2 28.5 43.0

good 34 16.8 17.0 60.0

average 41 20.3 20.5 80.5

above average 39 19.3 19.5 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-From the above graph we can say that 14.5% of the people are saying
excellent,28.5% people are saying very good, 17% of people saying good,20.5% of the people
are saying average and 19.5% of the people are saying above average.

66
67
11)What do you think about the different variations’ of price level provided by popular
automobiles?
Highly price
Moderate/average price
Low price
Fixed price
Convenient price

what do you think about the different variationsof price level provided by popular
automobiles

Cumulative
Frequency Percent Valid Percent Percent

Valid highly price 27 13.4 13.5 13.5

moderate/average price 52 25.7 26.0 39.5

low price 29 14.4 14.5 54.0

fixed price 48 23.8 24.0 78.0

convenient price 44 21.8 22.0 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-From the above graph we can say that 13.5% of the people are saying highly
price,26% people are saying moderate/average price,14.5% of people saying low price,24% of
the people are saying fixed price and 22% of the people are saying convenient price.

68
69
12)Please rate the professionalism of our staff members?
Excellent
Very good
Good
Average
Bad

please rate the professionalism of our staff members

Cumulative
Frequency Percent Valid Percent Percent

Valid excellent 31 15.3 15.5 15.5

very good 53 26.2 26.5 42.0

good 30 14.9 15.0 57.0

average 44 21.8 22.0 79.0

bad 42 20.8 21.0 100.0

Total 200 99.0 100.0

Missing System 2 1.0

Total 202 100.0

Interpretation:-From the above graph we can say that 15.5% of the people are saying
excellent,26.5% people are saying very good,15% of people saying good,22% of the people are
saying average and 21% of the people are saying bad.

70
71
LIMITATIONS

72
 Limitations of the Project

Any research or study always has some limitations under which this has to be undertaken. This
one too was not an exception. These limitations are poised by the environment … some external
and some inherent. This study has been conducted with utmost consideration to the adequacy of
data and quality of information, though as mention earlier the reliance on the sources can not be
minimized to zero in context of precision. The limitation can be enlisted as hereunder:-

1. The perception level of the respondents.

2. Availability of documents as sources of secondary information.

3. Reliability of information collected from various public information sources such as

magazines and website.

4. Respondents are not willing to fill the questionnaire.

5. Sometimes the respondents are not available at their place.

6. Very often the respondent do not express their true feelings, in such case their
habit, preference, practice, cannot be assessed correctly.

7. Some of the respondents refuse to give the important information best known to them.

8. There is a chance of mistake in the answer because of the limited knowledge of the
respondent.

9. Probability sampling was not used due to time and cost constraints and therefore the results
cannot be generalized to the population.

73
FINDINGS & SUGGESTIONS

74
 Findings

# Out of the total respondents of 100 customers, 20 of the total customers come to know about
the popular automobile ltd Popular from Auto fair medium, 25 from Media, 15 from
Newspapers, 40 from friends. Most of the customers know about popular automobile ltd from
friends and media.

# All the customers surveyed at popular automobile ltd are using the after sales service provided
by the dealer.

# Popular automobile ltd can achieve 100% success in customer’s satisfaction,if they will
motivate their employees with handsome incentives & reward for creating customer delight.
Many global automotives giant are practicing this marketing strategy these days.

75
 Suggestions of the Project

Following are the few suggestions to POPULAR AUTOMOBILES for improving the market
share and image of the products concerned.

1) Company must undertake extensive promotional activities like advertisements must be

released in different Medias to create brand awareness.

2) Free samples should be distributed among the prospects. Sales promotion tools like gifts,
contests and coupons must be given to customers.

3) The company should focus more on Auto fair medium, Magazines, Demo, should be the
main weapon for the company.

4) Looking to the result of the factor analysis Popular Automobiles Ltd. has to make the future
strategy by considering the 3 important representative factors like as
RELIABILITY,ATTRACTIVENESS,CUSTOMER HANDLING

5) More test drives should be offered.Should be more particular about Post Sales Follow Up as
it shows the concern of the company with the customer.

6) Should put in more efforts to promote maruti finance, autocards,accessorories.

7) They must keep in their mind that the “customer is king in the market” and his full
satisfaction in respect of all the parameters are very essential other wise goal cannot be
achieved.

76
CONCLUSION

77
 Conclusion of the Project

Here, below are some points which conclude the whole project:

 During the training I knew that which way employees are follow their employer rules
with customer relationship management.

 One is the biggest benefit is to make me punctual and profession person for the good
relationship with customers..

 Motivate me to perform in work with the customer & increase the good relationship with
customers.

 To knowing that what is business and how we increase our business in competitive
market.

 How to save the time & how to do the work in just short time.

 This Popular also handles the Customer in a very politely way after the sale of the
vehicle and is ready to give any time service.

 It had Company Authorized Service Shop where there are well trained mechanics who
quickly solves the problem of the vehicle.

78
GLOSSARY

79
 Glossary

1) Reliability:- reliability (systemic def.) is the ability of a person or system to perform and
maintain its functions in routine circumstances, as well as hostile or unexpected
circumstances.

2) Stretch:- "Stretch" is a speed reading program that offers exercises designed to improve
reading speed and comprehension. These exercises are an extension of the flash-card method
used in school, but with much greater scope for vocabulary and the capability of flashing
more than one word at a time.

3) Liberalization:- The process of making policies less constraining of economic activity. 2.

Reduction of tariffs and/or removal of nontariff barriers.

4) Segment:- A segment is a defined portion or section of something larger such as a database,

geometric object, or network. The term is used in database management, graphics, and
communications.

5) Deregulation:- Every industry has certain rules and regulations that it must abide by. These
rules are created by industry associations and watchdogs, as well as the government.
Deregulation occurs when the government pulls back from the industry a bit, therefore
loosening its grip on particular rules and regulations.

6) Fleet management:- Fleet Management is a function which allows companies which rely on
transportation in their business to remove or minimize the risks associated with vehicle
investment, improving efficiency, productivity and reducing their overall transportation
costs, providing 100% compliance with government legislation (duty of care) and many
more. These functions can be dealt with by either an in-house fleet-management department
or an outsourced fleet-management provider.

80
BIBLIOGRAPHY

81
 Bibliography

Books

 KOTHARI (2008): “Research Methodology”

2nd Revised Edition, New Age International Publisher, New Delhi
 LAL RAJIV, QUELCH JOHN (2009): “Marketing Management”
3rd Edition, Tata McGraw – Hill Publishing Co. Ltd, NewDelhi

Sites

1. www.wikepedia.com

2. www.scribd.com

3. www.google.com

82
ANNEXURE

83
 Annexure

Respected Sir/Madam
 Name :
 Gender :
 Age :
 Contact no :
 Occupation :

1) What type of car do you prefer from Maruti Suzuki (popular automobiles)?
Small car
Sedan
Luxury

2) What is your perception about Maruti Suzuki automobiles product?

Very good
Good
Average
Above average
Bad

3) From where do you come to know about popular automobiles?

Sales personnel
Existing customer
Media
Hoardings
Newspapers

84
 4) Why do you choose this Maruti Suzuki brand?
Product quality
Low maintenance
Cheaper rate
High mileage
Comfort

5) If you are going to be a customer of maruti Suzuki (popular automobiles) cars in future what will
b your expectation?
More varieties of cars
Improve quality of car
Better after sales services
Maruti Finance
Extended warranty

6) What do you feel about the behavior of sales executives at popular automobiles?
Bad
Average
Above average
Very good
Good
7) What do you think about Maruti Suzuki vehicle?
Accountability
Slightly changes
Customers are not waiting
Old terms and conditions
Need attractive scemes
8) What do you think about the space avaibality in maruti cars?
Extremely spacious
Average

85
 Less space
9) What do you think about the style and design of maruti Suzuki cars?
Very good
Good
Average
Above average
Bad
10) New technologies such as Bluetooth device,DIS,reverse parkin sensor are provided by popular
automobiles of maruti suzuki cars is it good and makes you feel comfort while drivin?
Excellent
Very good
Good
Average
Above average
11)What do you think about the different variations’ of price level provided by popular
automobiles?
Highly price
Moderate/average price
Low price
Fixed price
Convenient price
12)Please rate the professionalism of our staff members?
Excellent
Very good
Good
Average
Bad

86