INTRODUCTION

Perhaps the most distinctive skill of professional marketers is their

ability to create, maintain, protect and enhance brands. Branding is the art

and cornerstone of marketing. The American Marketing Association defines

a brand as a name, term, sign, symbol or design, or a combination of them,

intended to identify the goods or services of one seller or group of sellers

and to differentiate them from those of competitors. Thus a brand identifies

the seller or maker.

“What distinguishes a brand from its unbranded commodity

counterparts is the consumer’s perceptions and feelings about the product’s

attributes and how they perform. Ultimately, a brand resides in the minds of

consumers. A brand can be better positioned by associating its name with

desirable benefits.

A brand is much more than a name, logo, colours, a tagline, or

symbol. These are marketing tools tactics. A brand is essentially a

marketer’s promise to deliver a specific set of feature, benefits and services

consistently to the buyers. The marketer must establish a mission for the

brand and a vision of what the brand must be and do.

Brand bonding occurs when customers experience the company as

delivering on its benefit promise. The fact is that brands are not built by

advertising but by the brand experience. Brands vary in the amount of power

and value they have in the market place. At one extreme are brands that are

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not known by must buyers. Then there are brands for which buyers have a

fairly high degree of brand awareness. Beyond this are brands with a high

degree of brand acceptability.

We define brand equity as the positive differential effect that knowing

the brand name has on customer response to the product or service. Brand

equity results in customers showing a preference for one product over

another when they are basically identical. The extent to which customers

are willing to pay more for the particular brand is a measure of brand equity.

A brand needs to be carefully managed so that its equity does not

depreciate. This requires maintaining or improving brand awareness,

perceived quality and functionality and positive associations. These tasks

require continuous R & D investment, skilful advertising and excellent trade

and consumer service.

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NEED FOR THE STUDY

The motive of any company is to generally acquire larger market

share high percentage of sales the Industry; this could be only achieved by

building a higher percentage of brand loyal customers.

Any company can survive through there is a stiff computational the

market if it has brand loyal customers. Today many major companies in the

market try to maintain and improve their branded equity. With out creating

proper brand awareness they can not build brand image.

Strong brands help build the corporate image and also by making it

easier for the companies launch new brands. Today brands are treated as

major enduring assets of a company – more over brand equity are major

contributor to customer equity. This all can happen only there is proper

brand awareness.

The lights four wheeler industries have been expanding rapidly are

gone the day when possessing a small and mix-size cars were seen as a

luxury. Now days it is viewed as a mere necessity.

Customer relationship management and data mining are critical

differentials that enable competitive edge for firms focused on increasing

customer market share.

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Though investment in marketing, sales and service innovation can be

constrained due to economic and cultural considerations, the initial analysis

of the study indicates common European consumer apparel sites enable

higher content depth, navigational context and help, consumer

communication, and commerce efficiency.

However, the study concurrently indicates lower customer

customization and mining, lifestyle connection and marketing, and consumer

Community interaction, on the sites:

The analysis, conducted as an assignment by adult students at a

leading European university, contributes insight into the limitation of

customer relationship management and data mining investment on the Web.

This study will benefit practitioners and researchers who continue to

evaluate innovation in technology on the European Web.

Keywords:

Apparel industry, business-to-consumer (b2c), e-commerce in Europe,

customer relationship management (CRM), data mining on the Web,

European Union.

Background The World Wide Web is an important consideration in

the growth of business firms in America.

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From its inception, the Web has initiated unprecedented change in

enabling improved channels of business with customers.

OBJECTIVES

The study has been conducted with the following objectives:

1. To know how consumer welfare made customer to purchase product

Maruti.

2. What factors and variables of brand influence them to purchase.

3. To know what position does the brand has in the minds of customers.

4. To know how they became aware of the brand Maruti four wheelers.

5. To know level of satisfaction about the consumer welfare offered by

Maruti.

6. To find out the market potential for Maruti four wheelers.

7. To know how maintain and improve brand awareness build brand

loyalty

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METHODOLOGY OF STUDY

RESEARCH METHODOLOGY

SOURCES OF DATA:

The data has been collected from both primary and secondary sources,

to get information regarding the organization and products

PRIMARY DATA:

Primary data has been collected through questionnaires. The

questionnaire was mostly related to the brand awareness towards Maruti

Products ZEN of the customers on different features such as the model,

price, effectiveness of the brand etc. provided by Varun Motors Ltd.

SECONDARY DATA:

Secondary data has been taken from below sources:

1. Reports

2. Pamphlets

3. Advertisement

4. Customer database

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5. News papers

6. Internet

SAMPLING:

Out of few lakes of Maruti customers spread all over India, the

customers of Varun Motors Ltd., Visakhapatnam city only are taken as

target population for the study.

SAMPLE SIZE:

The sample size of 100 is selected from the database of the company.

The study requires on in depth survey and keen observation in a collecting

data regarding the brand awareness levels of Maruti customers.

SAMPLING TECHNIQUE:

Only simple random sampling technique is adopted in selection the

sample. In this technique, each and every unit of the population has on

equal opportunity of being selected in the sample.

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DATA COLLECTION PROCESS:

Inside the

Based on needs and objectives, types of data required for study and

other of data are identified.

Data was collected with the help of questionnaires.

Data

Questionnaire

Secondary Data

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Primary DataObservation

News lettersOrganisations

Outside theOrganisation

Documents

LibrariesMagazines

LIMITATIONS OF STUDY

Even though the project has been done with outmost care, it suffers

from the following limitations.

1. Due to lack of time, customers could not be contacted.

2. The study has been restricted to Srikakulam city only.

3. As the project is a simple sample study and is confined to 100

customers only, if May or may not pictures the entire customer

feelings.

The awareness levels of the customers may change from time to time

and so there is a possibility of changes in the research results.

Few customers refused to respond or could not respond appropriately due to:

Lack of time

Ignorance etc.,

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PROFILE OF INDIAN FOUR WHEELER INDUSTRY

ICRA Sect oral Review 2006:

The 4W industry in India has not quite matched up to the performance

of its counterparts in other parts of the world. The primary reason for this

has been the all-pervasive regulatory atmosphere prevailing till the opening

up of the industry in the mid-1990s. The various layers of legislative Acts

sheltered the industry from external competition for a long time. Moreover,

the industry was considered low-priority as cars were thought of as

"unaffordable luxury".

Initially in the post-liberalization period, the automotive sector,

especially the passenger car segment, saw a boom. The buoyancy in the

sector was derived primarily from economic vibrancy, changes in

Government policies, increase in purchasing power (especially of the upper

middle class), improvement in life styles, and availability of car finance. The

passenger car industry was finally deregulated in 1993, and many

companies, both Indian and foreign (like Daewoo, Ford, General Motors,

and DaimlerChrysler), entered the market. However, the smooth sailing was

suddenly disrupted in the last quarter of FY1996. The automobile industry,

which contributed substantially to industrial growth in FY1996, failed to

maintain the same momentum between FY1997 and FY1999.

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The overall slowdown in the economy and the resultant slowdown in

industrial production, political uncertainty and inadequate infrastructure

development were some of the factors responsible for the slowdown

experienced by the automobile industry. In FY2000, the sector experienced a

turnaround, posted positive growth rates and witnessed the launch of many

new models. But the spectacular growth in FY2000 was followed by a

decline in FY2001 and only a marginal growth of 0.5% in FY2002.

However, since FY2003, industry sales have increased at a 3-year

CAGR of 17.4% to 1.14 million in FY2006. Although there was a slowdown

in FY2006, after the high growth in FY2004-05, the recent high growth has

been on the strength of an increase in the disposable income of middle-

income salaried people, release of pent-up demand, and easy availability of

credit.

Low Penetration, but Rising Share of World Production:

Although the Indian automobile industry has come a long way since

the deregulation in 1993, India does not rank well among its global peers in

many respects, viz., the contribution of the sector to industrial output,

number of cars per person, employment by the sector as a percentage of

industrial employment, number of months' income required to purchase a

car, and penetration of cars.

However, the major car manufacturers worldwide consider India a good

potential market and they foresee a large future demand here. As can be seen

from the table below, India is now a major global producer of cars, with

India's share in world production increasing from 1.6% in 2000 to 2.7% in

2005.

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Two things that stunted growth of the Indian automobile industry in the past

have been low demand and lack of vision on the part of the original

equipment manufacturers (OEMs). However, the demand has picked up after

the liberalization of the regulatory environment, and global OEMs who

enjoy scale economies both in terms of manufacturing and research and

development (R&D) entered the Indian market. This has resulted in a

significant shift in the way business is conducted by suppliers, assemblers

and marketers.

Spending on Vehicles and Transport

India's private final consumption expenditure (PFCE) on transport

was estimated at around Rs.3, 124 billion in FY2005, accounting for around

16.5% of total PFCE. This comprises three categories: personal transport

equipment, operation of personal transport equipment, and purchase of

transport services.

In terms of PFCE, the share of transport in total PFCE has witnessed

rapid growth since the mid-1980s. By comparison, the share remained at

around 3-5% till the mid-1980s.

The motor vehicles sector is also an important source of central excise

duties. Central excise duty collections from motor vehicles were Rs.54.70

billion during FY2005, accounting for 6% of central excise duty collections.

Taxes on vehicles, passengers and goods also form an important component

of states' tax collections, and formed 8.7% of states' own tax collections

during FY2005.

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Demand Characteristics:

Passenger Car:

In developed markets, engine capacity and wheel-base are the bases of

segmentation of passenger cars: price does playa role but only up to a point.

Since affordability is the most important demand driver in India, the

domestic car market has until now been segmented on the basis of vehicle

price. Price-based competition takes place in a continuum rather than in

segments since nearly all the models are launched in multiple versions at

different price points. As a result, a higher-end variant may compete with a

lower-end variant of a car in a segment above it.

MUVs:

The MUV segment consists of vehicles that are suited to both rural and

urban areas. In rural areas where the roads are usually bad, these vehicles are

used as goods carriers and also for public transportation. Northern and

Western India account for nearly two-thirds of the demand for MUV.

Specifically, in States like Rajasthan, Madhya Pradesh, Uttar Pradesh and

Maharashtra, the demand for MUVs is the largest. There are three segments

of buyers for MUVs: the private market, Government, and the Defence.

Until the 1990s, the Government and Defence segments accounted for the

largest share of the market. The reduction in Government and defence

spending since the 1990s has substantially reduced sales to these two

segments. This has pushed private sector purchases into greater prominence.

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There are three sub-segments of the UV / MUV segment: the hard-

top, soft-top and pick-up. The hard-top version consists of the higher-end

Sports Utility Vehicles (SUVs) that have been present in the Indian markets

since FY1999. Following the success of the higher-end SUVs, the share of

the hard top segment in total MUV sales has registered an increase. Soft-top

MUVs, which are largely dependent on sales in the rural and semi-urban

markets where the vehicles serve as modes of mass transportation (maxi

taxi), have witnessed a contraction in volumes in recent years. The declining

share of the soft-top sub-segment is attributable largely to the increasing

acceptance of SUVs as an alternative to soft-tops (and even higher end-cars).

Those apart, soft-top sales have also been affected by a decline in rural

income, increase in sales tax in some states, increase in diesel prices,

enforcement of strict emission control norms, and restraints on the issue of

licences to use soft-top vehicles as rural taxis

.Demand Structure:

When the industry was deregulated in 1993, the global carmakers

chose to operate in the high price-high value segment. However, the strategy

did not work as the market for premium and luxury vehicles in India was not

large enough. MUL was entrenched in the low price-low value segment, and

given its scale economies, it could not be dislodged. In the latter half of the

1990s, foreign car manufacturers changed their strategy. It was still difficult

to remove MUL from its market leadership in the dominant low price-low

value segment as scale economies formed the basis of competition in this

segment. Thus, the global players changed the price-value equation by

offering superior value at a price that was still higher than that of the

Maruti 800 and Omni, but significantly lower than of the cars in the high

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price-high value segment. The process gained momentum in FY2000 when

the growth in the car market was led by the Compact segment.

Although the compact segment now accounts for 65% of domestic

sales of passenger cars, in recent years, the mid-size segment has captured a

rising share of the market, and since 2004, sales in the mid-size segment

have exceeded sales in the mini-segment. The growth in this segment has

been led by new launches, lower prices, and the significant success of four

models - MUL's Esteem, Honda's City, HMIL's Accent, and TML's Indigo.

Introduction of stripped down versions of the vehicles in the Mid-size

segment, attractive pricing by manufacturers (who also offer sales

incentives) coupled with lower rate of interests and easy availability of

finance have facilitated the growth of this segment.

Low Penetration Levels:

Although India's 4W sales have increased in recent years, penetration

levels are low at around 0.9%. Till the last decode, the industry was

considered low priority as cars were thought of as 'unaffordable luxury', and

treated as such through Government policies.

Although reduction in excise duties, favourable Government policies,

and lower prices have resulted in significant increase in penetration, India's

passenger car penetration is low by global standards-1.3% in Chino, 59% in

EU, and 81% in the US. Estimates from Notional Sample Survey 58th

Round (2002) indicates that ownership of four-wheelers (car or jeep) is

restricted to about 4.4% of urban households, and 0.6% of rural households.

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During 2002-03, ownership of cars/jeeps was restricted to around 0.9

million households in rural areas, and 2.57 million households in urban

areas. Car penetration is high in Chandigarh, Delhi, Goa, and Kerala.

However, penetration is extremely low in the eastern states of Bihar, West

Bengal, Orissa; and central states such as Madhya Pradesh and Chattisgarh.

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Company over View of Maruti Udyog Limited

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of

Japan, has been the leader of the Indian car market for about two decades.

Its manufacturing plant, located some 25 KM south of New Delhi in

Gurgaon, has an installed capacity of 3, 50,000 units per annum, with a

capability to produce about half a million vehicles.

The company has a portfolio o f10 brands, including Maruti 800,

Omni, premium small car Zen, international brands Alto and Wagon, off-

roader Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa and

Luxury SUV Grand Vitara XL7.

At the end of 2003-04, Maruti had a market share of over 55 per cent

of the Indian passenger car market. The company sold over 4, 20,000

passenger cars in the domestic market in 2003-04. It also exported over

51,000 vehicles (highest ever since it started exported in 1986) during the

year, raising the cumulative tally of exported vehicles to over 3, 30,000.

In recent years, Maruti has made major strides towards its goal of

becoming Suzuki Motor Corporation’s R and D hub for Asia. It has

introduced upgraded versions of WagonR Zen and Esteem, completely

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designed and styled in-house. Maruti’s contribution as the engine of growth

of the Indian auto industry, in deed its impact on the life style and psyche of

an entire generation of Indian middle class, is widely acknowledged. Its

emotional connect with the customer continues.

Customers have rated the company number one in customer

satisfaction yet again in the J D Power Survey 2004. Maruti is the only

market leader in the world to be ranked number one in customer satisfaction,

and the only company to top customer satisfaction rankings for five years in

a row.

The company has also been ranked number one in J D Power Sales

Satisfaction Survey 2004.Maruti products including Maruti 800, the Zen and

the Esteem have been rated best cars in their category in Total Customer

Satisfaction Survey 2004 conducted by TNS – Automotive.

The company’s quality systems and practices have been rated as a

“benchmark for the automotive industry world-wide” by A.V. Belgium,

global auditors for International Organisation for Standardisation. In

keeping with its leadership position, Maruti supports safe driving and traffic

management through mass media messages and a state-of-the art driving

training and research institute that it manages for the Delhi Government.

Maruti’s channel partners own and manage 303 sales outlets across 189

Indian cities. The service network covers over 1000 towns and cities,

bolstered by 1923 authorised service outlets.

The company’s service businesses including sale and purchase of pre-

owned cars (True Value), lease and fleet management service for corporate

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(N2N), Maruti Insurance and Maruti Finance are now fully operational.

These initiatives, besides providing total mobility solutions to customers in a

convenient and transparent manner, have helped improve economic viability

of The Company’s dealerships.

Maruti had a successful fiscal in 2003-04. Maruti’s Total Income

(net of excise) during the year was Rs.97, 510.2 million (* US $ 2.17

billion), a growth of 31 per cent over the previous year. The company’s Net

profit during this period was Rs.5421.8 million (* US $ 120.5 million), up

270 per cent over 2002-03.

The company is listed on Bombay Stock Exchange and National

Stock Exchange.

HISTORY:

Maruti Udyog Limited (MUL) was established as a private limited

company in India on February 1981, through an Act of Parliament to meet

the growing demand of a personal mode of transport caused by the lack of

an efficient public transport system, MUL is wholly owned by the Govt. of

India at the time of its birth.

Suzuki Motor Company was chosen from seven prospective partners

worldwide. This was due not only to their undisputed leadership in small

cars but also to their commitment to actively bring to MUL contemporary

technology and Japanese management practices (which had catapulted Japan

over USA to the status of the top auto manufacturing country in the world).

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MUL was classified in the Public Sector as long as the equity of

Government of India remained over 51%. A licence and a Joint Venture

agreement were signed between Govt. of India and Suzuki Motor Company

(now Suzuki Motor Corporation of Japan) in Oct-1982, with Suzuki Motor

Corporation (SMC) acquiring 26% of the equity.

This newly formed organization was signed the primary objectives of:

1. Modernizing the Indian Automobile Industry by bringing in the latest

technology

2. Production of fuel-efficient Vehicles to conserve scare resources

3. Production of a larger number of motor vehicles which is necessary

for economic growth.

Maruti created history by giving into production in a record 13 months.

On 14thDecember 1983, the Prime Minister of India, Mrs. Indira

Gandhi, released the first vehicle for sale by handing over the keys of a

Maruti 800 to Mr. Harpal Singh of Delhi.

Maruti exceeded the volume targets, and in March 1994, it became the

first Indian Company to produce over one million vehicles, a landmark yet

to be achieved by any other car company in India. Maruti is the highest

volume car manufacturer in Asia, outside Japan and Korea, having produced

over 4 million vehicles by April 2003. Maruti revolutionized way Indians

looked at cars.

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VISION, VALUES & ETHOS OF MUL:

MUL Vision is to be a Leader of the Indian Automobile Industry,

Creating Customer Delight and Share holder’s Wealth, Transforming Maruti

to be pride of India.

The core values of MUL are Customer Obsession, Fast, Flexible and

Fast Mover, Innovation and Creativity, Networking and Partnership,

Openness and Learning, Quality systems and Customer Satisfaction through

continuous improvement of our products and services by following PDCA

(PAN-DO-CHECK-ACT) in all functions of our organization.

At Maruti, the approaches to quality are in keeping with the Japanese

Practice “build it into the product” Technicians themselves inspect the

quality of work. Supervisors educate and instruct technicians to continually

improve productivity and quality. The movement of quality indicators is

reviewed in weekly meetings by the Top Management.

MUL believes that its employees are its greatest strength and asset. It

is this underlying philosophy that has molded the work force at Maruti into a

team with common goals and objectives. The Employee Management

relationship is therefore characterized by:

Participative Management

Team work and Kaizen

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Communication and information sharing

Open office culture for easy accessibility

To implement this philosophy, several measures have been adopted

like, a flat organizational structure. There are only three levels of

responsibilities ranging from the Board of Directors, Division heads to

Department Heads. Other visible features of this philosophy are an open

office, common uniforms (at all levels), and a common canteen for all.

This structure ensures better communication and speedy decision

making processes. It also creates an environment that builds trust,

transparency and a sense of belonging amongst employees.

AWARDS AND ACHIEVEMENTS:

In 2005, Maruti closed the finance year 2004-05 with an annual sale of

472122 units, the highest ever since the company began operations 20

years ago.

In 2004, Maruti Udyog Ranks Highest in Customer Satisfaction with Dealer

Service in India for the Fourth Consecutive year in the J.D. Power

Asia Pacific 2004 India Customer Satisfaction Index (CSI) Study

SM A copy of the satisfaction Index can be viewed in Appendix – B.

In 2003, Maruti has won the First place in “Excellence in Suggestion

Scheme2 Contest 2003”, which is the 6th consecutive award won in as

many years, Indian National Suggestion Schemes Association

(INSSAN) organizes this contest. Since 1998 Maruti has won this

award 10 times.

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In 2002, Maruti’s Quality Management System of its Press Shop and

associated functions (collectively termed as Press Function) got

certification for conformance to the requirements of TS 16949:2002 1

standard. A copy of the ISO TS 16949:2002 Certificate received by

Maruti can be viewed in Appendix–C.

In 2001-2002: Maruti launched its new businesses. Maruti True value

(buying, selling or exchange of pre-owned cars), Maruti Finance) car

financing), Maruti Insurance and N2N (Corporate Lease and Fleet

Management)

In 2001, Maruti Udyog Ltd. Became one of the first automobile companies

anywhere in the world to get an ISO 9000:2000 certification.

AV Belgium, Global auditors for International Organization for

Standardization (ISO), certified Maruti after a four day long audit,

covering varied parameters like Customers Focused organization,

Leadership, Involvement of people, Process approaches, System

approaches to Management, Continual improvement etc., a copy of

the ISO 9000:2000 Certificate received by Maruti can be viewed in

Appendix – C.

In 1999, Central Board of Excise & Customs awarded Maruti with “Samman

Patra” for contribution to exchequer and being an ideal tax assesses.

In May 1995, Maruti got ISO 9002 certification. The audit for this covered

quality assurance in production, installation, marketing and sales as

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well as after sales services. We were also one of the first companies

in the world to pioneer ISO 9000 certification for our dealers.

DIRECTORS BOARD

MUL is a Board-managed company. Currently the Directors on the Board

are:

Mr. Shinzo Nakanishi, Chairman

Mr. Jagdish Khattar, Managing Director

Mr. Junzo Suginori, Joint Managing Director

Mr. Shinichi Takeuchi, Joint Managing Director

Mr. Kinji Saito, Director (Marketing and Sales)

Mr. Osamu Suzuki, Director

Mr. R.C. Bhargava, Director

Mr. S.V. Bhave, Director

The Independent Directors on the Board of Maruti are:

Mr. Kumaramangalam Birla’s, Chairman, A V Birla Group

Mr. Amal Ganguli, Former Chairman, Price Waterhouse

Coopers, India

Mr. Pallavi Shroff, Senior Partner, Amarchand and Mangaldas

and Suresh A Shroff and Co.

Mr. Manvendra Singh Banga, Chairman, Hindustan Lever Ltd.

(HCL)

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PROFILE OF VARUN MOTORS

Varun group commenced its srikakulam operations in act 1992 with

bajaj auto franchise. which is now popularly known as “varun motors” this

spectacular growth is only due to aggressive and clear headed management

of Mr. v. prem kumar who has over two decades rich experience in auto

mobile business couple with sheer hard work of every staff members and

above all out standing customer support.

Varun motors captured 60% of srikakulam two and four wheeler

marketing successfully with standing the challenges from the competition.

As of now, varun motor has work force of 140 members with a annul turn

over of 22 cores for better customer care, an ideal service customer is going

to operation from now in the city.

Introduction of cars division:

The maruti showroom of varun motors private limited is the one of the

India’s largest and most modern auto mobile measuring 17000’ sq.ft its

capital turn over 400 to 500 cores , it is the second largest company in India .

The varun group has expanding their business to vizianagaram, rajamundry,

and vijayavada

In recognition of varun motors bajaj auto ltd awarded the dealership it

was awarded and laurels from bajaj auto for its out standing performs

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Varun motors ltd recently secured the dealer ship for a reliable maruti

vehicles being manufactured by maruti udyog limited.

Product availability in varun motors:-

Esteem.

Versa.

Zen Estilo.

Maruti-800.

Omni.

Swift.

Swift Dzire.

Maruti SX4.

Grand vitara.

A – Star.

Wagon R.

Alto.

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MODELS AND PRICE LIST ON MARUTHI CARS

Maruthi 800Description On Road PriceSTD BS-III 218464STD BS-III (M) 220997AC BS-III 240030AC BS-III (M) 242563STD LPG BS-III 234789STD LPG BS-III (M) 237326AC LPG BS_III 256371AC LPG BS-III (M) 258918BS=-II Limited (Uniq) 245565BS-III Limited (Uniq) (M) 248108

ALTODescription On Road PriceSTD BS-III 260973STD BS-III (M) 2644444LX BS-III 295388LX BS-III (M) 298851LXi BS-III 314349LXi BS-III (M) 317820

OMINIDescription On Road Price5 SEATER-BS-III 2595695 SEATER-BS-III (M) 2621128 SEATER –BS-III 2615578 SEATER-BS-III (M) 2642895 SEATER-LPG BS-III 2721455 SEATER LPG-BS-III (M) 274691

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WAGON RDescription On Road PriceLX BS-III 368266LX BS-III (M) 371741LXi BS-III 388053LXi BS-III (M) 391528VXI BS III 412109VXI BS III (M) 415584LX Petrol/LPG 387559LX Petrol/LPG (M) 391038LXI Petrol/LPG 410459LXI Petrol/LPG (M) 413938VXI ABS BS III 443661VXI ABS BS III (M) 447136AX BS III 497533AX BS III (M) 501008

A STARDescription On Road PriceA Star LXI 398701A Star LXI (M) 402172A Star VXI 428230A Star VXI (M) 431700A Star ZXI 468189A Star ZXI (M) 471659

ZEN ESTILODescription On Road PriceESTILO – LX 357986ESTILO-LX (M) 361461ESTILO-LXI 381826ESTILO-LXI (M) 385301ESTILO-VXI 407249

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ESTILO-VXI (M) 410724ESTILO-VXI (ABS) 436859ESTILO-VXI (ABS) (M) 440334ESTILO-Sports 408504ESTILO Sports (M) 411979

SWIFTDescription On Road PriceLXI BS III 468460VXI BS III 502265VXI with ABS 523554ZXI BS III ABS 591780LDI BS III (Diesel) 537059VDI BS III (Diesel) 574690VDI ABS BS III (Diesel) 595145

swift DZIREDescription On Road Priceswift Dzire LXI 518500swift Dzire VXI 569959swift Dzire ZXI 669617swift Dzire LDI 614888swift Dzire VDI 664207swift Dzire ZDI 755298

SX 4Description On Road PriceSX4 VXI 755543SX4 ZXI 831672SX4 ZXI with LS 869203

VERSADescription On Road PriceVERSA-STD 5S (M) 421925VERSA DX1 5/8/S (M) 499921VERSA DX2 5/8/S (M) 540128

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Service offered

Three free services and paid service after sale of the car.

Free check up complaints.

Demonstration for new product.

Acceptance of warranty claims.

Finance through banks.

Working time

Working hours in varun motors are 10 hours per day commencing from

8AM to 6PM with two hours for launch.

Maruti tie-up companies:

Citicorp maruti.

Maruti country wide.

ICICI.

HDFC bank.

Standard charted.

ABN amro bank.

Kotak Mahindra.

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Sundaram finance

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ORGANIZATION STRUCTURE

Organization involves the determination of the work to be done in the

concern. To assignment of the different functions to different people employed in

the concern and the co-ordination, the activities to be performed by all of them, the

efficiency of the concern depends upon the way in which it is organized and spirit

of loyalty i.e., Devolution to duty with which the different people perform this

work.

The determination of work to be done in an organization and the assignment

of the different items of works of different people employed in the concern

naturally constitute. Some of the most crucial steps in organizing the concern the

assignment imply that there must be persons who have the authority to assign duty

to others.

It follows that in the organization there should be some employees who

should be able to execute the orders which are assigned to them by the higher

groups.

The authority and subordinate i.e., the position and designation of each

person in hierarchy of the organization are the structure of the organization. A

diagrammatic representation of the flow of the authority and the subordinate

position of each employee in the organisation is called “organization chart”.

The organization structure presents a summarized view of the whole

organization. It shows not only the position which every employee occupies in

the organization.

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According to sec (26)2 of the Companies Act, M.D. is defined as a director

who is instructed with substantial power of management which would not

otherwise be exercisable by him. The M.D. of VARUN Motor Ltd., Mr. Jagadish

Khattar looks after the general administration and functioning of various

departments.

BRIEF DESCRIPTION OF DIFFERENT DEPARTMENTS AT (V)

Varun Motors is a well developed organization which is flourishing in a

rapid way consisting of different departments performing all the important

functions for the success of the organization in every step.

ADMINISTRATION DEPARTMENT:

The Administration Department is one of the important departments, which

looks after various aspects and maintenance of telephone exchanges. It also

includes Accounts and CRM Departments under it.

SALES ADMINISTRATION DEPARTMENT:

This department comes under marketing department which mostly looks

after the administration and sales activities of the vehicles of the organization. It

continuously coordinates the dealers and area officers and aids in distributing the

vehicles to the dealer according to the demands. It collects information regarding

market demands of different models of the vehicles.

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SERVICE DEPARTMENT:-

This department comes under the marketing department. It provides services to

customers. The various functions of this department.

Provides service training to field officers

Feed back to various departments about the product

Warranty processing

Makes service trials

Sale of manuals and operators instruction books

Under this department we have works department, stores department, spares

department.

BRAND POSITION IN THE MARKET:

“Production Marks” were used in olden days to distinguish a product this is

produced from different production units. These are now known as brand names.

Brand name is strongly associated with the product quality in the minds of the

customer.

In order to be successful you need to be effectively communicating your

product to the prospects. This process of communication of a message of the

brand / product so that it could be seen, heard and Accepted by the human mind of

your prospect, is defined as the positioning of your brand.

Brand is a major issue in product strategy. On the one hand, developing a

branded product requires a great deal of long term investment, especially for

advertising, promotion and packaging.

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The Brand name can convey up to six levels of meanings. They area:

* Attributes: A brand brings to mind certain attributes. Maruti suggests

durable, low priced, well-built, well-engineered, high prestige

automobiles.

* Benefits: Attributes must be translated into functional and

emotional benefits. The attribute “durable” could translate into “I

won’t have to buy another car for several years”

* Values: The brand also says something about the producer’s

value Maruti stand for high performance safety and prestige. It’s a

social status symbol

* Culture: The brand may represent a certain culture. Maruti

represent world class culture, organized effort, efficiency and high

quality.

* Personality:The brand can also project a certain personality

* User : The brand suggests the kind of consumer who buys or

uses the product.

One of the first steps in building the brand is to find out what promises to

keep. Then figure out what promises you realistically can keep. Finally take a

long careful look at your competition and decide which promise would give you

the best competitive advantage. This process of arriving at a focussed, credible

value proposition is the kernel of brand building activities.

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Such are the activities being done by Maruti. This systematic approach

resulted in the fact that a common man too knows about Maruti Cars. Every hook

and corner of the Maruti’s Market domain has a Maruti servicing centre with 24 th

service facility.

Maruti ranked No.1 in customer satisfaction by J.D. Power CSI (2001) for

4th time in a row and also J D Power ranked 3 models (2003 Oct) of Maruti op

Top: Wagon R, Zen and Esteem, Given the scale of 50 Laky cars on road, the

sheer diversity of Maruti customer and the fact the Maruti sells more than all

competitors is simply incredible.

Imagine market 70000 precisely engineered components and assembling

them perfectly in to a car. Imagine doing this for more than 50, 00,000 cars in a

row, with 10 different models and over 100 variants that tells why India Trusts

Maruti more than any one else to build the cars of the future.

Let’s see the Brand Position of the Maruti’s products in the local markets in terms

of the different attributes as indicated below.

Technologically, Maruti is having a preference percentage of 80% Maruti

uses the advanced high-end engineering design equipment in the manufacture of

its cars.

The highly structured, well organized and disciplined servicing terms and

the technicians at Maruti service stations attend to and repair the faults in no time.

Thus the survey resulted in a customer rating of 95%.

In terms of the features of the car, Maruti enjoys comparative 65%

availability. This could be due to the particular target group being focused by

Maruti, which require a good cost-benefits analysis.37

Nearly 80% feel the Maruti’s cars are quite economical and nearly 85% feel

it to be a social status symbol to own a car of this brand name.

The customer survey even showed that 75% do agree with the fact that the

comfort derived is very much satisfactory and also that the mileage is good. “At

times above expectations”.

“If you talk about change but don’t change the reward and recognition

system, nothing charges”. Says Paul Allaire, CEO. Xerox Crop. In a similar

sense it’s

very essential that, only when you have a clear understanding of what your present

status is in the market, will make you design effective strategies for success.

So for the clear understanding of the brand position in the market, let’s

visualize the above data in the form of a bar chart. I hope a picture speaks more

than a thousand words.

The above chart clearly shows the amount of competitive pressure that

exists for Maruti’s products in the Market.

Using this data we can design strategies for expanding the markets. For a

well-trained eye, the above chart speaks of the cost of mistakes with special

emphasis on the growing customer expectations.

Finally the chart presents the current status of the brand position in the

market in terms of all the parameters represented in the x-axis of the chart.

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FINANCE FUNCTION

The financial decisions play a vital role in any firm. So that it is essential to

set up an efficient and effective organization for maintaining finance functions.

Varun has a finance department which is directly linked with the top management.

The finance department is work under the Manager finance. This department

looks after allocation of funds, auditing, costing and accounting of financial

resources of the organization. Apart from these functions, the financial

department looks after the provident fund trust as the treasurer, capital purchase,

taxation and final accounts.

FINANCIAL PLANNING & CONTROL:

For establishing co-ordination and administration as a part of management,

a good plan for financial control is essential. This plan includes profit planning

program for capital investment. Financing sales forecast and also budgeting.

To know present financial position and profit measurement Varun Motors

Limited is having enough financial resources for investment. It is procure funds

from sale of product and loans.

For comparing actual performance with operating plans & standards and to

interpret the results of operations to the top managements of the Business.

For the protection of Business through internal control internal auditing and

assuring proper insurance coverage along with other protection coverage programs

are used.

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This department looks after allocation of funds, auditing, costing and

accounting of financial resources of the organization. Apart from these functions

the financial department looks after the provident fund trust as the treasurer,

capital purchase, taxation and final accounts.

HUMAN RESOURCES FUNCTION

Personal department plays an important role in every organization. Under

the personal department man power will be acquired. Developed trained so as to

accomplish maximum efficiency and economy in the functions and the objectives

of the organization.

The main functionaries of the personnel department is

Planning

Recruiting

Selecting

Appointing

Developing

Controlling

Compensating

Grievance handling and many more

MAN POWER PLANNING:

The company recruits the man power from both internal and external sources.

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INTERNAL SOURCES:

Internal source include the present working force of the organization it is good

because the employer is in a better position to evaluate his staff than outside

candidates. Employee of a company is full aware of his organization and its

policies and he requires a little training.

TRAINING:

Generally the company gives training in the following aspects to its employees

About the organization the selected employees should be trained for

acquiring the knowledge of their company and its policies and culture.

About the machinery and equipment the selected employees should

be trained about equipment and machinery and sophistication in it so that

they can easily perform their job

About the customer: under this the employees will acquire knowledge

about the types of customers who buy their company products. This sort of

training is very important for employees like sales people.

Selling techniques: the selling techniques are mainly meant for sales

people. Generally for this, the specialized field trainers providing training

to the trainee. In his training, the trainees will learn how to sale the product

in more, profitable way when compared to competitors.

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EXTERNAL SOURCES:

Every organization has to go for external sources for recruitment because all

the vacancies can not be filled through internal recruitment.

Recruitment can be done through

1. Employment exchange and agencies

2. Recruitment from colleges

3. Recommendations etc.

SELECTION:-

The next phase of man power planning is selection main steps in selection

process are:

Screening of applications

Review of application blank and references if necessary

Physical and psychological examination

Final scrutiny and placement

After the selection appointing the right person in the right job, their

performance evaluation will be done through the techniques of performance

appraisal, and giving them the feed back where there lacking and giving them

training if necessary and designing the development programs in order to improve

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the employee morale towards the organization, by which the over all productivity

will increase and the cost factor will be reduced.

To look after the entire aspects of personnel and HRD

Hold meetings

To conduct HRD programs from time to time

To maintain peace and harmony in the organization

To investigate the working of the employees in case of misconduct

To take active part in the aspect of procurement etc.

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MARKETING FUNCTION

Advertising a newspaper

Free campaigns

Test rides

Mileage contests

Loan meals

Gift schemes

Hoarding & wall paintings

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Sponsoring youth events

Promotional expenses have been some by both varun motars & maruti

services in advertisement cost.

SERVICES OFFERED BY THE COMPANY

Services offered by the company, which are non-tangible, do play a major

role in the buying decision of the customer. The attributes of the services add

upon the value and would make a lot of difference between buy and not to buy.

Usually the cost-benefit analysis made by the customer do account for the after

purchase services offered by the company.

Services thus play a major role in the formation of positive image of the

company in the mindset of the customer. Having considered the importance of

the services on the buying process of the customer, let’s view it with special

reference to the company under consideration, i.e., MUL services.

Maruti Udyog Limited offers a number of services to its customers. Some

of the major ones include:

S1. N2N Fleet Management

S2. Maruti True Value

S3. Maruti Finance

S4. Maruti Insurance

S5. Maruti On-road Services

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S6. Forever Yours Extended Warranty

S7. Maruti Genuine Accessories

S8. Anytime Maruti-Call Centre

Let’s discuss about each of these services in detail to understand the kind of

attributes Maruti has considered to fill up the service package. This gives us birds

ye view of kind of Marketing-Mix it has designed and also the effective strategies

it uses to capture a large market share.

S1. N2N Fleet Management: Kick the worries. Enjoy the car.

Car maintenance is a time-consuming process, especially if you own a fleet.

Marti’s new N2N Fleet Management Solutions for companies, takes care of the A-

Z of your automobile problems. This service includes end-to-end

back-ups/solutions across the vehicle’s fire.

There are three stages in the life cycle of corporate fleet ownership. They are

1. Acquisition: Where Corporate formulate fleet policy, Identify

& evaluate options for various levels of employees, negotiate with dealers/OEMs

and Acquire corporate fleet.

2. Operations : Now maintenance budget is prepared. Maintenance

contracts with work shops are negotiated to operate and maintain fleet. Track

expenses are also taken care off.

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3. Re-marketing: Market value of existing fleet is assessed and Cars are

auctioned to employees or quotations invited from external brokers and finally a

new fleet are acquired.

Similarly there are three types of risks in the life cycle of fleet ownership;

* Residual value risk: A fleet acquired by cash purchase, hire purchase

or loan is in the name of the corporate and the assets are reflected in its balance

sheet. AT the end of the corporate usage tenure (typically 3-5 years), the

corporate faces the risks of not realizing a fair value, delay in the disposal of the

assets and administrative over-heads. The risk is high if the vehicle is not

maintained as per OEM prescribed standards.

* Maintenance risk : During the fleet ownership stage, if the corporate

decides to maintain the fleet on its won or contracts with work shops for

maintenance on “actual expense” basis, the corporate faces the risk of unplanned

maintenance expenditure. Most corporate budget for maintenance expenditure on

the basis of historical data, which result in sub-optimal forecasting. The corporate

also faces the risk of poor maintenance quality because of absence of monitoring

of the jobs performed by maintenance work shops.

* Obsolescence risk : The increase in the rate of innovation in

technology and design in automobiles makes newer and better technology models

available to consumers, which considerably increases the risk of obsolescence.

Maruti’s suite of N2N services covering acquisition, maintenance and sales are

enlisted below:

S2.Maruti True Value: Get the best value for your car

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Maruti True value helps you to buy, sell or exchange a pre-owned car. You

get the full value for your dealings, in terms of quality, Reliability, Transparency

and Convenience with your eyes closed. Buying or selling a used car is a gamble.

With Maruti True Value, it’s like holding the winning hand. All services are

aimed at making your transactions with Maruti as hassle free and enjoyable as

possible. Maruti’s dedicated and honest team will ensure that you have a

rewarding experience at Maruti True Value.

At Maruti True Value, a pre-owned car is Re-Conditioned to Maruti

standards in state-of-the-art work shops by trained mechanics using only genuine

parts. Cars are put through a stringent 120-point check that covers all major

systems, like the engine, brakes, transmission etc. This transparent free

evaluation system, which looks in to the merits of your car, would take 15-20

minutes to give you the best possible price of your Maruti Suzuki. After which,

engineers certify their trustworthiness. The payment in full to the seler is made

immediately, once verified at the RTO as genuine. Only then the car is put to

sale.

The three free services will be available at the following intervals or

mileage, as the case may be:

First free inspection service :

With in 45 to 60 days or running 1000 – 1500 KM (over and above

the mileage at the time of delivery) whichever occurs earlier?

Second free inspection services :

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With in 90 to 120 days or running 5000 – 5500 KM (over and above

the mileage at the time of delivery) which ever occurs earlier?

Third free inspection services :

With in 210 to 240 days or running 10,000 – 10,500 KM (over and

above the mileage at the time of delivery) which ever occurs earlier?

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S3. Maruti Finance:

This new initiative is a long-term proposition besides acting as an enabler to

the core business of Maruti. This special purpose scheme is cantered on the

customer through transparent deals and availability of other bundled services.

Maruti finance is now banking on Maruti Udyog’s extensive dealership

network that reaches every corner of the country. Using this service, customers

can get car finance at competitive prices. After the establishment of this new

wing, the sales volume increased appreciable

The company’s largest bank (SBI) and the largest Car marker (MUL) have

joined hands to make affordable car finance available to the large customer pool

across the country. This Mega-alliance makes car loans available at lower interest

rates to a wider section of people, with transparent terms and conditions. The

unmatched combined network of SBI branches and Maruti outlets support it and

make it realty.

Hence is the list of Unbeatable Advantage of SBI-Maruti Car Loans:

Two market leaders in their respective industries with trusted brand

names.

Lowest interest rates of 9.50% (Note: Interest rates at the time of

purchase of the car will be applicable interest rates are subject to change

and are at the sole discretion of SBI. Interest rate of 9.50% applicable

on repayment periods up to 36 months. An interest rate of 10.00% is

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applicable for a repayment period of 7 years Credit is at the sole

discretion of SBI).

No processing fees or hidden costs to ensure transparency.

No extra charge for repaying loans ahead of schedule.

Standardized loans that offer fixed interest rates across models and

locations

Car loans available for diverse categories of customers including

government employees and agriculturists.

More loan amount available as it is extended on the basis of the car’s on-

road price, not ex show room price.

Prospective customers. But Maruti isn’t contented with that. It thought

that it’s the right time to join hands with some of the big bosses like the HBFC,

GE Capital etc.,

Maruti Country wide was set up when GE Capital, HDFC and Maruti

Udyog Limited formed a captive finance company in 1995, a professionally

managed company. Which would share the ideas and work culture of the parent

companies? The prima objective being to cater to the needs of Maruti car buyers

by offering innovative finance schemes for the purchase of Maruti cars.

Later, Citicorp Maruti Finance Limited was formed when Maruti joined

hands with Citibank in May 1998 located in 23 cities; this is the first company that

provides services to finance the purchase of second hand cars nationally. Citicorp

Maruti Finance Limited also offer a wide range of flexible and customized

financing options at affordable rates to individuals buying a Maruti car.

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Apart from all these above mentioned standardized alliance, the organisation

also gave the dealers the flexible to choose form this wide range of options or

organize a genuine & more beneficial one himself. Thus with such a systematic

procedure being followed, it’s the Maruti’s customers who are always at a winning

edge.

S4. Maruti Insurance:

Maruti had tied with Bajaj Alliance and National Insurance Corporation, two of

the foremost insurance companies to bring this service for all its customers.

Maruti Insurance allows customers to send enquiry and get a free renewal

remainder and claim. Post accident repairs saving valuable time and efforts

through appointment contract persons.

S5. Maruti On-road Services:

Even with the most stringent quality measures, complex machines like cars can

sometimes malfunction, just call the 24 Hour Maruti On-road Service (MOS)

centre during an emergency and help will be on its way to you.

The MOS ensures:

* Round-in-clock services in almost every city

* A common contract number across the country 9622-9622-00

* A computerized call-monitoring system dispatches a mobile MOS van to

you at the earliest.

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S6. Maruti's Forever yours Extended Warranty:

As everyone known, no Maruti really needs a warranty. But just to go that

extra bit to show how much Maruti cares. They have enhancing the 2-year

primary warranty on your car with the Forever Yours Extended Warranty *

program Now you can buy Extended Warranty with your Maruti, if your Maruti

is purchased on or after 14th May 2001, and the vehicle is still covered under the

primary warranty.

S7. Maruti Genuine Accessories:

Maruti Genuine Accessories (MGA) is a new initiative to offer you high quality

accessories at competitive prices. Maruti follow world Class engineering and

design processes to develop each and every item of MGA. Many of these items

are imported from Suzuki, Japan. Every MGA item has perfect mechanical and

electrical compatibility with the vehicle and offers you unmatched performance.

The below table shows a sample list of the accessories and the advantage one can

derive using them.

ITEM THE MGA ADVANTAGE

Alloy

Wheels

Perfect Match with vehicle. Safe and reliable. Virgin

Alumium from ISO certified sources. 100% x-ray tested.

Endurance tested. Excellent finish. Better cooling. Better

Braking efficiency.

Body

Cover

High Quality imported Fabric. Water-resistant. 1-Year

Warranty. U V Ray protection (UV rays cause paint fading).

Very light and easily handled. Matches body profile

perfectly. Clamp mechanism. Comes in convenient carry

bag.

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Carpets Imported materials used. Perfectly fits the contour of

vehicle floor. Attractive designs, matching the interior.

Odours free. Fire resistant. Fully Washable. Anti Slip

mechanism to prevent slipping on floor. Special thread

interlocking. Dust absorbing. Reinforced cushioning at

driver's area to prevent balding.

Door

Visors

Perfect lit with vehicle profile. Unique attachment provided

for strong tit. Suzuki (Japan) product. Weatherproof.

Offers protection from sun-rain. Long lasting and unlike

other visors, do not become brittle or crack.

Fog Lamps Comes with complete electric wiring, protection relay,

switch and lamps. Electrically compatible with the vehicle

electrical systems, therefore perfectly safe for the vehicle.

No need to cut / splice original vehicle wires, clip-on

mechanism. Perfect fit mechanically. Tested for 10n1Z

distance visibility. Beam adjustment screws.

Stereo

System

Electrically compatible with vehicle electrical system,

therefore perfectly safe for the vehicle. No cutting / splicing

of original wiring on vehicle needed (clamp-on system).

High Quality sound and wide features. Easy installation.

Tested over 50,000 KMs. Durable. Approved by Suzuki,

Japan. High Quality speakers and antenna.

Security

System

Many Advanced Features from complete vehicle protection.

Electrically compatible with vehicle electrical system,

therefore perfectly safe for the vehicle. No cutting / splicing

of original wiring on vehicle needed (clamp-on system). 3-

Years Warranty

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Spoilers Designed by experts to perfectly match the vehicle profile.

Gives the best aerodynamic and sporty look. Best tit.

Special high strength and low weight materials used. If light

provided, the electrical are perfectly compatible with the

vehicle electrical systems. Excellent surface finish.

Seat

Covers

Leather Seat Covers are made from genuine Italian seat

covers. In Fabric Seat covers, the best quality fabric used.

High levels of craftsmanship. Perfect tit and finish.

Matches interiors. Abrasion tested. Same quality as those

fitted from factory.

Car Care

Products

Body Polish, Glass Cleaner, Shampoo. Tire Polish.

Upholstery cleaner, Dash board Shiner, etc. Besides these

there are a host of other accessories like Warning Buzzer

Assembly warns a driver when the door is open and, reminds

him to fix the seat belt. There I are high quality rear parcel

tray made of reinforced PP, FUCOT anti Rust Treatment

(from Futon), Bardahl Fuel Additive (from Bardahl), etc.

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S8. Anytime Maruti - call centre:

In addition to the existing channels of communication, Maruti always explore new

avenues of one-to-one interaction with our customers. As a major step in

this direction, it started a Pilot Call Centre for the people residing in Delhi

and Gurgaon. This service, named Anytime Maruti, has now been

extended to Chennai, Bangalore, Hyderabad and Mumbai. Customers in

these cities can contact at any time using a Toll-free number 1600-11-1515

from their MTNL/BNSNL phones.

Now there is one more channel for you to contact MARUTI. Anytime Maruti is

now accessible to the customs using mobile phones also. The number is (0)

98118-01515. This Mobile number will not only connect a mobile phone

user but also allow subscribers of Touchtel, WLL, and Tata etc., to connect

Anytime Maruti. Please note that the calls to this mobile number will not

be toll-free.

The objective of this Call Centre is to ensure you have quick and easy access to all

information on Maruti's models, prices, finance options, dealers and the

locations of the numerous service stations. There exist future plans to

launch this service nationally.

There is also a web site designed by Maruti Udyog Ltd. to provide latest online

information regarding various facilities and other related stuff to all the

Internet savvy. Web is also playing a major role in influencing the

customer.

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CONCEPT OF CUSTOMER RELATIONSHIP MANAGEMENT

1) Customer Need :

Customer need is the first one which determines company's Product, its continuity,

its availability. Understanding the customer need and we have to move in the market

on the basis of updating needs. It's a main source which has no limit & never ends.

One customer may have one need or may have 1000 s of needs.

It leads the customer to buy the product in the market. When he buy the product in the

market, he. Will go for product's availability, quality and its quantity, price.

Customer will choose the right product which match with his taste.

The relationship starts now. If a customer buys the product 1s time at our

company, we should attract him as not to shift to the other company. That will be

based on our "interact with him, understanding his needs, response to him". If he

satisfied with our product & with us, he can't go for other companies. If he really

satisfied, he will conduct repeat purchases at our company.

When coming to our concept CRM, CRM means simply managing Customers &

monitoring their behaviours. CRM has to potential to mould A customer's relationship

with a company and increase revenues in the Bargain.

Relationships are as old as mankind. For that, even the traders and Businessmen

are also basing on relationship for their success. It building Close relationship with the

customers that makes us to gain the fruitful •Returns-to the companies.

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With my experience, I have designed some means for how to get Better returns & how

to attract the customer. They are:

Providing special benefice’s to the customers.

Creating trust on us in their minds.

Maintaining interdependency.

Sharing ideas & views, values.

Giving respect to him.

Commitment with him.

Go for deep’ relation with him by day by day.

By following above, we can maintain good relation forever.

CRM means building long term relationship with customers and “understanding

their needs and responding through offering different products through different

channels.

PROCESS OF CRM:

CRM is a step by step process, which deals with the customers.

Customer Need:

In the process of CRM, it begins with the "understanding the Customer Need".

If it carefully studies the mind of customer we can easily understand.

It's the main step to start the best relation with a customer.

Customer Response:

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After understanding the customer need, it should carefully observe the customer

response. It is the feed back. From, the customer when we receives him/her. It will. be

useful to us to provide the best products to him and. to change the dealing with the

customer.

Customer Satisfaction:

The very important step is "customer satisfaction". Satisfying the customer is very

difficult task in the present marketing environment. Because every company mostly

depends on this step only. To satisfy a customer, different types of methods have been

come into existence. So It should adopt the best method.

It should satisfy a customer by providing the best products & by maintaining close

relationship with him.

Customer Loyalty:

Loyalty of the customer is participating the main role in the mkt It means a

customer will purchase our products forever & again & again it has to make him as to not

to shift to other brands or other company products.

Customer Complaint:

After selling the product to the customer it should ready for get the complaints from

the customer. Like, damaging of the product, price of-the. Product, exchange of the product.

90% of the relationship with the customer will depends on this complaint handling only.

If it gives the immediate response he/she will satisfy. If not he/she may go for other

brands. In this step we have to be very careful with him. We should handle & solve the

complaints.

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IMPORTANCE OF CRM

1) IDENTIFYING THE CUSTOMER NEEDS:

To identify the customer needs, it participating a vital role. Through the close

relationship with them, they can easily explain their problems and needs. So it can easily

identify their needs. So now we can easily take the next step to satisfy them.

2) HELP IN REDISCOVERING & UNDERSTAND:

CRM helps in reclaiming the potential customers & understanding their needs and

requirements. If the CRM identify the needs, based on the needs it can respond to them.

3) IDENTIFYING UNTAPPED BUSINESS POTENTIAL

If the CRM is very perfect, it leads to improve the potentiality of the company. Best

relation with them, it allows us to identify untapped business potential which makes our'

company no. 1 in the market.

4) IDENTIFY FIELDS REQUIRED TECH:

Different fields requires different tech. Maintain a good relation with the

customers CRM can easily identify the fields required tech. For example, software tech.,

industrial.

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5) TO IDENTIFY STRONG AND WEAK POINTS OF CUSTOMER:

Relation, with the suppliers, also helps in identifying his strong And

week points of a supplier, His supply system strong or week. If the supplier is strong

we maintain the same, if not we rectify them.

USE OF TECH. IN CRM:

To improve the relationship with the customers, different comp. Will be

followed different. Technological systems,

a) Electronic points of sale

b) Sales force automation

c) Customer service helpdesk

d) Call centres

e) Systems integration

f) Contact with the customers

g) Personalizing customer interaction

These are the some tech. to go for deep relation with our customers.

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TRADITIONAL & MODERN APPROACHES OF CRM

1) Contact with the customers by 1) Customer information system

Telephone, mail & in personal

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2) Personal selling 2) Customer database

3) After sales service 3) Electronic points of sales

4) Complaint handling 4) Automation of customer support

5) Systems integration

5) Customer care

6) Customer satisfaction

6) Value to the customers

THE 3 KEY STAGES OF CRM

1) SATISFACTION:

It is the first stage in CRM program. The next all steps in CRM Will based on

this stage. This stage acts as the foundation of a building. NATURE of Satisfaction:

1) Meet the customer needs & fulfil them

2) Giving clear cut explanation for the customer doubts & complaints

3) Minimizing customer faults & increase of production

2) PERFORMANCE:

And the second stage in CRM is performance based. It is the stage To know

what's present position of our company. The continuity of the Business is based on

this stage.

a) Evaluating perception of our company

b) Identifying customer retention

3) COMMITEMENT:

It's the last stage to where the CRM reaches. Commitment with The

customers helps to identify the next coming sales.

EVALUATE MULTIPLE NEEDS AND CONTINUOUS INBOND/

OUTBOND FLOWS:

THE VALUE OF CUSTOMER RETENTION:

A business without a customer retention plan will lose revenue and Mkt.

share. Customer Retention Strategies:

Even though customer relationships are one of a company's most valuable

assets, they are often one of the most undervalued assets too, in the constant battle to

gain new customers; it is easy to overlook the value existing customer relationships

hold.

All corporate are ultimately earned from conducting successful relationships

with customers. As the source of all your profits, customer relationships should be

valued and protected,

Every customer .relationship is an asset and has a economic value Or lifetime

market value (.lmv). A customer's LMV is determined by taking your average

customer transaction amount and multiplying it by the no. of transactions he/she will

conduct with your org.

Customer retention, keeping customer can be improved by explain ing to

your employees especially those on the front line who deal direct with your

customers. Just how much each customer is worth to your org.

SEGMENTING CUSTOMERS

Understanding each customer becomes particularly important. Besides

for the same product or a service not all the customers can be treated as alike.

C.RM needs to divide & segmenting the customers. CRM needs to divide the

customer by

1) Tastes & Preferences•

2) Age groups

3) Lifestyles

4) Physical & psychological characteristics.

Increase Loyalty

^ It is an endeavor of any org. to that its customers are advocate for

the company and the products. Any company will like the mindshare status to

improve from being a suspect to being an advocate.

Any company, it has to invest in terms of its products and

services to its customers. It has to innovate and meet the needs of its customers

so that they remain as advocates on the loyalty curve. Repeat sales invariably are

low cost high margin sales. It has also the implication of being not "one time sale".

Besides, repeat sale are to induce satisfaction.

Q1. Occupation?

Sample Business Professional Employee Student

100 31 21 27 21

Business

Professional

Employee

Student

0

5

10

15

20

25

30

35

1

Business

Professional

Employee

Student

INTERPRETATION:-

From the above table and graphs observe that100 respondents reveals

that 31% of them are employees, 21% are businessman, 27% are

professional and 21% are students. So many employees are using these cars

Q2. What is the model purchased by you?

Sample Alto lxi Wagoner Swift Maruti 800 Omni

100 35 23 24 16 12

Alto lxi

Wagoner

Swift

Maruti 800

Omni

0

5

10

15

20

25

30

35

40

1

alto lxi

ragonr

swift

maruti-800

omni

INTERPRETATION:-

From the above table and graphs observe that100

respondents reveals all the five cars are same usage alto lxi is 35%, wagonR

is 23%, swift is 24% maruti-800 is 16% and omni is12%. All are same

importance in cars.

Q3. How long do you using the car?

Sample Before 1 year Before 2 year Before 3 year Till now

100 33 27 10 30

Before 1 year

Before 2 year

Before 3 year

Till now

Omni

INTERPRETATION:-

From the above graphical representation among 100respondents

reveals that 30% of the customer till now using, 33% of them are before 1

yrs usage, 27% are before 2 yrs, 10% are before 3yrs. Usage of the products.

Q4. Who influenced you to purchase a car?

Sample Adds Sales persons Friends Some other

100 11 38 30 21

Adds

Sales persons

Friends

Some other

INTERPRETATION:-

From the above table and graphs representing that 100

respondents reveals that 30%,of them are friends , 38% of them are sales

persons , 21% are some other ‘s and finally 11% are adds . Influenced the.

Purchased on car in their friends are the main motivators.

Q5. How is their complaints handling?

Sample Excellent Good Average Poor

100 35 30 20 15

Excellent

Good

Average

Poor

INTERPRETATIONS:-

In the above table and graph representation among 100 responds

reveals 35% of Excellent 30% good in handling the complaints, 20% are the

average and remaining 15% are poor in complaint handling.

Q6. How is VARUN MOTOR delivery system?

Sample Excellent Good Average Poor

100 27 27 33 13

Excellent

Good

Average

Poor

INTERPRETATION:-

From the above table and graphs observe that among 100 responding

reveals 27% are excellent 27% are good, 33% are average, and finally 13%

are Poor, opinion of them varun motors services are good.

Q7 what is overall satisfaction level with VARUN MOTOR people?

Sample Excellent Good Average Poor

100 32 38 17 13

Excellent

Good

Average

Poor

INTERPRETATION:-

From the above table and graphs observe that among 100 responding

reveals 32% are excellent 38% are good , 17% are average , 13% are poor

opinion of them varun motors services .

0

5

10

15

20

25

30

35

40

45

50

1 2

Excellent

Good

Average

8. How is their response towards you entering in to the office?

Overall satisfied No of customers Percentage

Excellent 24 24

Good 48 48

Satisfied 28 28

Poor --- ---

INTERPRETATION:-

From the above table and graphs observe that among 100 responding

reveals 24% are excellent 48% are good , 28% are average , opinion of

them varun motors services are good.

9. What is overall satisfaction level with VARUN MOTOR people?

Longue facility No of customers Percentage

Excellent 12 12

Good 24 24

Average 64 64

Poor --- ---

No of customers

Excellent

Good

Average

0

10

20

30

40

50

60

70

1 2

Excellent

Good

Average

Poor

INTERPRETATION:-

From the above table and graphs observe that among 100 responding

Reveals 12% are excellent 24% are good, 64% are average totally the

Longue facility is average

Q10. How is their lounge facility?

Sample Excellent Good Average Poor

100 15 23 30 32

Excellent

Good

Average

Poor

INTERPRETATION:-

From the above table and graphs observe that among 100 responding

reveals 15% are excellent 23% are good, 30% are average and 32%totally

the longue facility is poor.

Q11. What do you rate the following features:

Features Sample Poor Moderate Satisfactory Excellent

Transaction 100 17 38 30 15

Repair

ability

100 27 20 30 23

Spare parts 100 26 27 30 17

Time

bounding

100 17 30 17 36

INTERPRETATION:-

Transaction

From the above table and graphs observe that among 100 responding

reveals 15% are excellent 30% are good , 38% are average , and finally 17%

are poor , opinion of them varun motors services are good.

Reparability facility

From the above table and graphs observe that among 100 responding

reveals 23% are excellent 30% are good, 20% are average and 27% are poor

in reparability facility is to be good.

Spare parts facility

From the above table and graphs observe that among 100 responding

reveals 17% are excellent 30% are good , 27% are average and 26% are poor

in this spare parts facility may be satisfied.

Time bounding facility

From the above table and graphs observe that among 100 responding

reveals 36% are excellent 17% are good, 30% are average, and finally 17%

are poor overall time bounding facility may be good

Q12. Was time loaner car provided to you?

Sample Yes No

100 78 22

Yes

No

INTERPRETATION: -

In the above graph reveals that time loaner car provided by the varun

motors are 78% are YES and 22% are NO probably time loaner is good.

Q13. Explanation of work done & changers at the time delivery?

Sample Excellent Good Average Poor

100 23 30 25 22

Excellent

Good

Average

Poor

INTERPRETATION:

-From the above table and graphs observe that among 100 responding

reveals 23% are excellent 30% are good, 25% are average and 22% are poor

work done & changers at the time delivery is to be good.

SUMMARY

The Project Entitled “CUSTOMER RELATIONSHIP

MANAGEMENT” in Varun Motors Pvt. Ltd., divided into 4 Chapters.

The first chapter deals with Introduction of the industry, Scope of the

Study, Objectives, Methodology, Limitations.

In the Introduction of the Automobile Industry. The situation

Prevailing during the Last decade, and the opportunities are discussed.

After the Liberalization concept was introduced, there was huge growth

in the Automobile market, and at the same time there is cut-throat

competition prevailing.

At present there are many companies in India, it gives a detailed

history of automobiles different car segments and what are the new cars

there are going to launch. Not only has that it given the full details of

the brand Zen such as its features and facilities. By 2010 the Varun

Motors will becomes one of the top most five car makers in the world.

The Objectives are to

To Measure the Impact of brand awareness, to measure the potential

customers

To measure the sales potential of Maruti Zen cars in cities like Vizag

To measure the attributes and benefits which influences the

customer’s decision?

Limitation for the study is:

Duration of two months which is not sufficient.

Confidential information is not available for an in depth study

In the Second Chapter, it gives Industry Profile and Company Profile.

In this Company Profile it gives the details of all the directors and also

awards achieved. In Second Chapter it also gives the details of the Varun

Motors Pvt. Ltd. Passenger can have wide range for marketing Varun

Motors is having comprehensive efficient range or marketing.

This is one of the best show rooms in India Varun Motors offer the Full

range of cars of Maruti from small cars like Zen, ALTO and Swift etc.

Varun Motors is a leading player in cars distribution. It has its own

brand image. Width and depth of distribution through their branches in

many parts of Andhra Pradesh

FINANCIAL PERFORMANCE:

The Company is getting good sales and turnover. The sales are

gradually increasing. Its turn over in is 32 cores. We discussed about the

promotional strategies the company follows. It is an essential marketing

tool. A firm practices promotional strategies to face the competition and at

least the consumer. Firm’s promotional strategy depends on the situation

and has to change according to the market situation. The objectives of

promotional strategy are to promote sales, profits and create awareness.

The purpose of promotional strategies is achieving growth sales

increases in profits, meeting competition, creating awareness in customers.

PROMOTION TOOLS

ADVERTISING

PUBLICITY

SALES PROMOTION

SALES FORCE

And evaluating various promotional tools.

The Third Chapter deals with the concepts of “Brand Awareness”.

And it also deals with brand image, strengths and preferences of awareness.

It covers the various existing Maruti brands namely 800, Zen, Alto, and

Swift. And only this third chapter also gives what are the advantages to the

seller and buyer by this Brand Awareness. And Nine Strengthens for Brand

Awareness and Preferences.

In this chapter interpretation and analysis part. Containing all the data

is analyzed and also represented in graphical method.

The Fourth Chapter deals with the summary of the topic. It gives

brief conclusion of the above three chapters. It also includes summary,

findings and suggestions, which give the entire idea of the topic studied at a

glance.

FINDINGS & CONCLUSION

The following details can be inferred after analysis with a simple size

of 100, which included customers, by questionnaire method to find out the

brand awareness towards Zen with reference to MARUTI.

1. Most of the customers relating to Maruti belong to the category of

employees as they occupy 30% of the entire customers. The next to

them industrialists will come as they occupy 24% of the customers.

2. Most of the customers have bought the car 2 years back.

3. The promotional strategy of Maruti is advertisements of which

electronic media and by press is playing a vital role.

4. Out of the models of Maruti the most popular brand is Zen because it

is possessed by 45% of the customers.

5. Most of the customers are aware of educational programs that are

being conducted by Maruti to the maintenance of the car.

6. Though the customers are having good awareness levels regarding the

programs being conducted by Maruti they are not attending the

programs because of various reasons.

7. The customers find some problems regarding the mileage of Zen

while comparing with the remaining models.

SUGGESTIONS

Sri Varun Motors Pvt. Ltd. may maintain the stock of spares of all

brands of Maruti Four Wheelers so that it does not cause any

inconvenience to the Customers.

The charges for servicing the Four Wheelers may be slightly

reduced

Some of the people are facing problems with mileage which should

be rectified

As a promotional measure of Sri Varun Motors Pvt. Ltd. may

increase free services camps. This will increase Customer’s

loyalty.

A few more service stations smaller in size may be set up in areas

where there is more demand which will satisfy more customers of

all areas.

As per the study after sales service, cleaning and servicing vehicles

should be given importance and improved.

Care should be taken to see that delivery of new cars as well as

serviced car should be in time.

Customers are expecting some complaints during the delivery of

car. Hence, such items may be given to improve to Customers

Satisfaction.

QUESTIONNAIRE

GAYATRI COLLEGE FOR P.G COURCES

A PROJECT SURVEY ON CUSTOMER RELATIONSHIP MANAGEMENT IN

VARUN MOTORS PVT LTD

01. Occupation?

A) Business B) Profession C) Employee D) student

02. What is the model purchased by you?

A) Alto lxi B) WagonR C) Swift D) Maruti 800

03. How long do you using the car?

A) Before 1year B) Before 2year C) before 3 year D) Till now

04. Who influenced you to purchase a car?

A) Adds B) Sales person C) Friends D) some others

05. How is their complaints handling?

A) Excellent B) Good C) Average D) Poor

06. How is VARUN MOTORS delivery system?

A) Excellent B) Good C) Average D) Poor

07. Your overall opinion on the VARUN MOTORS service people?

A) Excellent B) Good C) Average D) Poor

08. How is their response towards you entering in to the office?

A) Excellent B) Good C) Average D) Poor

09. What is overall satisfaction level with VARUN MOTORS people?

A) Excellent B) Good C) Average D) Poor

10. How is their lounge facility?

A) Excellent B) Good C) Average D) Poor

11. What do you rate the below features?

DELIVERY

SYSTEM

POOR MODERATE SATISFACTORY EXCELLENT

TRANSACTION

REPAIRABILITY

SPARE PARTS

TIME

BOUNDING

12. Was time loaner car provided to you?

A) Yes B) No

13. Explanation of work done & changers at the time delivery?

A) Excellent B) Good C) Average D) Poor

Suggestions if any,

NAME :

ADDRESS :

BIBLOGRAPHY

Text Books:

Marketing Management - Philip Kotler

Web Links:

http://www.marutiudyog.com

http://www.bsmotoring.com

http://www.owntheroad.com

Magzines

Business World (Magazine)

Information form Brochures

Leading newspapers