Maruthi Suzuki Brand Loyalty

INTRODUCTION
The word ‘Brand’ has its Origin in the Norwegian word “Brand”, which means to
burn. In ancient times, farmers used to put burn marks as identification on lively
stock to distinguish their possessions.
A brand is defined as “a name, term, sign, symbol (or) special design of these
elements that is intended to identify the good (or) service of one seller (or) a group
of seller.
Additionally, it also means an inherent assurance to the customers of quality. Many

Consumer Products, besides their basic features, need attractive packaging and a
‘brand name’. A brand is a symbol or a mark that helps a customer in instant recall,
differentiating it there by from the competing products of a similar nature.
According to the American Marketing Association (AMA), “A brand name

is a part of a brand consisting of a word, letter, group of words, or
letters to identify the goods or services of a seller or group of sellers
and to differentiate them from those of the competitors.”David Ogilvy
defined a brand as “The Consumer’s idea of a product.”
Brand
A brand is the identity of a specific product, service, or business. A brand can take
many forms, including a name, sign, symbol, color or slogan. The word brand
began simply as a way to tell one person's cattle from another by means of a hot
iron stamp. A legally protected brand name is called a trademark. The word brand
has continued to evolve to encompass identity - it affects the personality of a
product, company or service.
SV DEGREE & PG COLLEGE - ANANTAPUR Page 1

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

otherwise continue using the brand and can be demonstrated by repeated buying of a
product or service, or other positive behaviors such as word of mouth advocacy.
The extent of the faithfulness of consumers to a particular brand, expressed through

their repeat purchases, irrespective of the marketing pressure generated by the
competing brands. Brand loyalty is more than simple repurchasing, however.
Customers may repurchase a brand due to situational constraints (such as vendor
lock-in), a lack of viable alternatives, or out of convenience. Such loyalty is referred
to as "spurious loyalty". True brand loyalty exists when customers have a high
relative attitude toward the brand which is then exhibited through repurchase
behavior. This type of loyalty can be a great asset to the firm: customers are willing
to pay higher prices, they may cost less to serve, and can bring new customers to the
firm.

Historical & Technical Background of Brands
Brands identify the source of market of a product and allow consumers-either
individuals or organizations-to assign responsibility to a particular manufacturer or
distributor. Consumers may evaluate the identical product differently depending on
how it is branded. Consumers learn about brands through past experiences with the
product and its marketing program. They find out which brands satisfy their needs
and which ones do not. As consumers’ lives become more complicated, rushed, and
time-starved, the ability of a brand to simplify decisions making and reduce risk is
invaluable.
Brands also perform valuable functions for firms. First, they simplify product
handling or tracing. Brands help to organize inventory and accounting records. A
brand also offers the firm legal protection for unique features or aspects of the
product. The brand name can be protected through registered trademarks;
manufacturing processes can be protected through patents; and packaging can be
protected through copyrights and designs. These intellectual property rights ensure
that the firm can safely invest in the brand and reap the benefits of a valuable asset.
Brands can signal a certain level of quality so that satisfied buyers can easily choose
the product again. Brand loyalty provides predictability and security of demand for
the firm and creates barriers to entry that make it difficult for other firms to enter the
market. Loyalty also can translate into a willingness to pay a higher price often 20
to 25 percent more. Although competitors may easily duplicate manufacturing
processes and product designs, they cannot easily match lasting impressions in the
minds of individuals and organizations from years of marketing activity and product
experience. In this sense, branding can be seen as a powerful means to secure a
competitive advantage.
To firms, brands thus represent enormously valuable pieces of legal property that
can influence consumer behavior, be sought and sold, provide the security of
sustained future revenues to their owner. Large earning multiple have been paid for
brands in mergers or acquisitions, starting with the boom years of the mid-1980s.
The price premium is often justified on the basis of assumptions of the extra profits

that could be extracted and sustained from the brands, as well as the tremendous
difficulty and expense of creating similar brands from scratch. Wall Street believes
that strong brands result in better earnings and profit performance for firms, which,
in turn, creates greater value for shareholders. Much of the recent interest in brands
by senior management has been result of these bottom-line financial considerations.
“Marketing Memo: The brand Report card” lists 10 key characteristics based on a
review of the world’s strongest brands.
Maruti Suzuki Limited was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei
car which at the time was the only modern car available in India, its' only
competitors- the Hindustan Ambassador and Premier Padmini were both around 25
years out of date at that point. Through 2004, Maruti has produced over 5 Million
vehicles. Marutis are sold in India and various several other countries, depending
upon export orders. Models similar to Marutis (but not manufactured by Maruti
Suzuki) are sold by Suzuki and manufactured in Pakistan and other South Asian
countries.
Global Brand
A global brand is one which is perceived to reflect the same set of values
around the world. Global brands transcend their origins and create strong, enduring
relationships with consumers across countries and cultures.
Global brands are brands sold to international markets. Examples of global

brands include Coca-Cola, McDonald's, Marlboro, Levi's etc.. These brands are
used to sell the same product across multiple markets, and could be considered
successful to the extent that the associated products are easily recognizable by the
diverse set of consumers.

Benefits of Global Branding
BENEFITS OF GLOBAL BRAND
In addition to taking advantage of the outstanding growth opportunities, the
following drives the increasing interest in taking brands global:
 Economies of scale (production and distribution)
 Lower marketing costs
 Laying the groundwork for future extensions worldwide
 Maintaining consistent brand imagery
 Quicker identification and integration of innovations (discovered worldwide)
 Preempting international competitors from entering domestic markets or
locking you out of other geographic markets
 Increasing international media reach (especially with the explosion of the
Internet) is an enabler
 Increases in international business and tourism are also enablers
Global Brand Variables
The following elements may differ from country to country:
 Corporate slogan
 Products and services
 Product names
 Product features
 Positioning
 Marketing mixes (including pricing, distribution, media and advertising
execution)
These differences will depend upon:
 Language differences
 Different styles of communication
 Other cultural differences
 Differences in category and brand development
 Different consumption patterns
 Different competitive sets and marketplace conditions
 Different legal and regulatory environments

 Different national approaches to marketing (media, pricing, distribution,
etc.)
Local Brand
A brand that is sold and marketed (distributed and promoted) in a relatively
small and restricted geographical area. A local brand is a brand that can be found in
only one country or region. It may be called a regional brand if the area
encompasses more than one metropolitan market. It may also be a brand that is
developed for a specific national market; however an interesting thing about local
brand is that the local branding is mostly done by consumers then by the producers.
TYPES OF BRAND
Product
The most common brand is that associated with a tangible product, such as a car
or drink. This can be very specific or may indicate a range of products. In any
case, there is always a unifying element that is the 'brand' being referred to in the
given case.
Individual product
Product brands can be very specific, indicating a single product, such as classic
Coca-Cola. It can also include particular physical forms, such as Coca-cola in a
traditional bottle or a can.
Product range
Product brands can also be associated with a range, such as the Mercedes S-class
cars or all varieties of Colgate toothpaste.
Service
As companies move from manufacturing products to delivering complete

solutions and intangible services, the brand is about the 'service'.

Service brands are about what is done, when it is done, who does it, etc. It is much
more variable than products brands, where variation can be eliminated on the
production line. Even in companies such as McDonald's where the service has
been standardized down to the eye contact and smile, variation still occurs.
Consistency can be a problem in service: we expect some variation, and the same
smile every time can turn into an annoyance as we feel we are being manipulated.
Service brands need a lot more understanding than product brands.
Organization
Organizations are brands, whether it is a company that delivers products and

services or some other group. Thus Greenpeace, Mercedes and the US Senate are
all defined organizations and each has qualities associated with them that
constitute the brand.
In once sense, the brand of the organization is created as the sum of its products
and services. After all, this is all we can see and experience of the organization.
Looking at it another way, the flow also goes the other way: the intent of the
managers of the organization permeates downwards into the products and the
services which project a common element of that intent.
Person
The person brand is focused on one or a few individuals, where the branding is
associated with personality.
INDIVIDUAL
A pure individual brand is based on one person, such as celebrity actor or singer.
The brand can be their natural person or a carefully crafted projection.
Politicians work had to project a brand that is attractive to their electorate (and
also work hard to keep their skeletons firmly in the cupboard). In a similar way,
rock stars who want to appear cool also are playing to a stereotype.
Group
Not much higher in detail than an individual is the brand of a group. In particular
when this is a small group and the individuals are known, the group brand and the
individual brand overlap, for example in the way that the brand of a pop group and
the brand of its known members are strongly connected.
Organizations can also be linked closely with the brand of an individual, for
example Virgin is closely linked with Richard Branson.
Event
Events have brands too, whether they are rock concerts, the Olympics, a space-
rocket launch or a town-hall dance.
Event brands are strongly connected with the experience of the people attending,
for example with musical pleasure or amazement at human feats.
Product, service and other brands realize the power of event brands and seek to
have their brands associated with the event brands. Thus sponsorship of events is
now big business as one brand tries to get leverage from the essence of the event,
such as excitement and danger of car racing.
Geography
Areas of the world also have essential qualities that are seen as characterizations,
and hence also have brand. These areas can range from countries to state to cities
to streets and buildings. Those who govern or represent these geographies will
work hard to develop the brand. Cities, for example, may have de-facto brands of
being dangerous or safe, cultural or bland, which will be used by potential tourists
in their decisions to visit and by companies in their decisions on where to set up
places of employment

MARUTI SUZUKI holds a good name and fame in the market in its long run.
With lots of changes and adoptions the company has established a brand image in
the market.
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 very heavy and large, and required ample
starting time. Oliver Evans was the first to design a steam engine driven automobile
in the U.S.A Scotsman, Robert Anderson, was the first to invent an electric carriage
between 1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman
Robert Davidson were amongst the first to invent more applicable automobiles,
making use of non-rechargeable electric batteries in 1842. Development of roads
made travelling comfortable and as a result, the short ranged, electric battery driven
automobiles were no more the best option for travelling over longer distances.
The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk
production of cars. This lead to the development of the industry and it first begun in
the assembly lines of his car factory. The several methods adopted by Ford, made
the new invention (that is, the car) popular amongst the rich as well as the masses.
According the History of Automobile Industry US, dominated the automobile
markets around the globe with no notable competitors. However, after the end of the
Second World War in 1945, the Automobile Industry of other technologically

advanced nations such as Japan and certain European nations gained momentum
and within a very short period, beginning in the early 1980s, the U.S Automobile
Industry was flooded with foreign automobile companies, especially those of Japan
and Germany.
The current trends of the Global Automobile Industry reveal that in the
developed countries the Automobile Industries are stagnating as a result of the
drooping car markets, whereas the Automobile Industry in the developing nations,
such as, India and Brazil, have been consistently registering higher growth rates
every passing year for their flourishing domestic automobile markets.
The automotive industry designs, develops, manufactures, markets, and sells the
world's motor vehicles. In 2008, more than 70 million motor vehicles, including
cars and commercial vehicles were produced worldwide.
In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million
in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4
million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.
The markets in North America and Japan were stagnant, while those in South
America and other parts of Asia grew strongly. Of the major markets, Russia,
Brazil, India and China saw the most rapid growth.
About 250 million vehicles are in use in the United States. Around the
world, there were about 806 million cars and light trucks on the road in 2007; they
burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are
increasing rapidly, especially in China and India. 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. Combined with robust growth
in China, in 2009, this resulted in China becoming the largest automobile market in
the world.
Indian Automobile History
The origin of automobile is not certain. In this section of automobile

history, we will only discuss about the phases of automobile in the development and
modernization process since the first car was shipped to India. We will start
automotive history from this point of time.
The automobile industry has changed the way people live and work. The
earliest of modern cars was manufactured in the year 1895. Shortly the first
appearance of the car followed in India. As the century truned, three cars were
imported in Mumbai (India). Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first
wheel was used for transportation in India. In the beginning of 15th century
Portuguese arrived in China and the interaction of the two cultures led to a variety
of new technologies, including the creation of a wheel that turned under its own
power. By 1600s small steam-powered engine models was developed, but it took
another century before a full-sized engine-powered vehicle was created.
The actual horseless carriage was introduced in the year 1893 by brothers
Charles and Frank Duryea. It was the first internal-combustion motor car of
America, and it was followed by Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce
Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding
windscreens and hood, and an aluminum body. It was usually driven by chauffeurs
and emphasis was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires,
pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929
featured an 8-cylinder engine and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door
that suited more to the needs of families. In 1930s, vehicles were less boxy and
more streamlined than their predecessors. The 1940s saw features like automatic
transmission, sealed-beam headlights, and tubeless tires. The year 1957 brought
powerful high-performance cars such as Mercedes-Benz 300SL. It was built on
compact and stylized lines, and was capable of 230 kmh (144 mph).
This was the Indian automobile history, and today modern cars are
generally light, aerodynamically shaped, and compact.
Emerging India Auto market
India auto market is a promising industrial sector that is growing immensely every
passing year. Passenger cars are referred to, through use of word "automobile."
Whooping growth experienced by Indian auto market in last financial year itself that
is financial year end in February, 2007 was very close to a 18 percent over previous
fiscal. This statistical fact is a glittering example of potential of growing auto
industry in India.
As per survey conducted by Society of Indian Auto Manufacturers, total number of
automobiles manufactured by auto industry in India, throughout financial year
2006-07, was very close to 15.5 lakh (1.5 million) margin. Huge of number of
automobiles manufactured by auto industry in India was an enormous growth upon
number of autos manufactured during previous fiscal, that ended in 2006.
Total number of cars that were exported from India were very close to 2.0 lakh (2.0
hundred thousand) margin, an encouraging sign for auto industry in India. Export of
cars manufactured in India comprised nearly 13 percent of total number of cars
manufactured domestically by auto industry in India.
India auto market looks set to prosper, largely due to growing market for
automobiles that is developing in India. In financial year that ended in February,
2004, Indian auto markets were fastest growing in world, with registered growth
rate touching nearly 20 percent.
Auto industry in India mainly comprises of small car section, which enjoys nearly a
2/3rd market share of entire market for autos in India. In this respect, Indian markets
are largest in world for small cars, behind Japan.

The 4 – wheelers industry is passing through is passing through a critical but
interesting phase. For many years, it was growing continuously but the turning point
came in 1996 Feb., when it started slowing down. The impact was rally felt in the
next year when the overall growth was hardly 10%. This was also possible only
because, the cars segment showed a healthy growth of 50%. The net result is that is
that Maruti cars now account for 62% of the 4 – wheelers market in April, May &
June 2015.The Varun Motors Ltd. mainly is the only dealers of the mature Branded
cars.
NEW SEGMENTS
A step through segment like Maruti alto, ZEN, VERSA and WAGONR,A-star and
SX-4 .
DRAMATIC CHANGES
The new products have contributed to 35% of the growth and helped the producers
improve their bottom line. The coming years will see increasing competition due to
the priority in products in products and prices. The only differentiate will be
technology, quality, product range and service.
Imaginative market will emphasize relationship building and customer

satisfaction. New techniques such as direct marketing and institutional sales are
being explorer by all. Some of them are taking the vehicle actually to the customers
door step. Now the customer is king. Luxury cars, Passenger cars &
Multipurpose/Commercial cars. Product range from MUL had offers different cars
of all these classifications, i.e., Bale no & Esteem Cares in luxury days, M-800,
ALTO, ZEN, WAGON-R falls in passenger cars, while OMNI, VERSA & GYPSY
for multipurpose / commercial cars. According to MUL managing director Jagdish
Khattar, Swift has been positioned on the“aspirational”plank for young Indians.

COMPANY PROFILE HISTORY:
Maruti Udyog Limited (MUL) was established as a private limited company in

India on February 1981, through an Act of Parliament to meet the growing demand
of a personal mode of transport caused by the lack of an efficient public transport
system. MUL is wholly owned by the Govt. of India at the time of its birth.
Suzuki Motor Company was chosen from seven prospective partner’s world wide.
This was due not only to their undisputed leadership in small cars but also to their
commitment to actively bring to MUL contemporary technology and Japanese
management practices (which had catapulted Japan over USA to the status of the
top auto manufacturing country in the world)
MUL was classified in the Public Sector as long as the equity of Government of
India remained over 51% . A license and a Joint Venture agreement were signed
between Govt. of India and Suzuki Motor Company (now Suzuki Motor
Corporation of Japan) in Oct 1982, with Suzuki Motor Corporation (SMC)
acquiring 26% of the equity. This newly formed organisation was given the primary
objectives of:
Modernizing the Indian Automobile Industry by bringing in the latest technology

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


VISION, VALUES & ETHOS OF MUL:
MUL Vision is to be a leader in the Indian Automobile Industry, Creating Customer

Delight and Shareholder’s Wealth, transforming Maruti to be a pride of India.
The Core values of MUL are customer Obsession, Fast, Flexible and First
Mover, Innovation and Creativity, Networking and Partnership Openness and
Learning, Quality Systems and Consumer Satisfaction through Continuous
Improvement of our Products and Services by following PDCA (PLAN-DO-
CHECK-ACT) in all functions of our organization.
At Maruti, the approach to quality is in keeping wit the Japanese practice – “build it
into the product”. Technicians themselves inspect the quality of work. Supervisors
educate and instruct technicians to continually improve productivity and quality.
The movement of quality indicators is reviewed in weekly meetings by the top
management
MUL believes that its employees are its greatest strength and asset. It is this
underlying philosophy that has molded the workforce at Maruti into a team with
common goals and objectives. The Employee- Management relationship is therefore
characterized by Participative Management, Team work & Kaizen communication
and information sharing.
Open office culture for easy accessibility
To implement this philosophy, several measures have been adopted like, a flat
organizational structure. There are only three levels of responsibilities ranging from
the Board of Directors, Division Heads to Department Heads. Other visible features
of this philosophy are an open office, common uniforms (at all levels), and a
common canteen.

MARUTI SUZUKI
Industry Automotive
Founded 1981 (as Maruti Udyog Limited)
Headquarters New Delhi, India
Mr. Shinzo Nakanishi, Managing
Key people
Director and CEO
Products Automobiles
Revenue US$4.8 billion (2015)
Parent Suzuki Motor Corporation
Maruti Suzuki India Limited (NSE: MARUTI, BSE: 532500) a partial subsidiary

of Suzuki Motor Corporation of Japan, is India's largest passenger car company,
accounting for over 45% of the domestic car market. The company offers a
complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A
star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle
Grand Vitara.
It was the first company in India to mass-produce and sell more than a million cars.
It is largely credited for having brought in an automobile revolution to India. It is
the market leader in India and on 17 September 2007, Maruti Udyog Limited was
renamed Maruti Suzuki India Limited. The company's headquarters are located in
New Delhi.
Maruti Suzuki is India and Nepal's number one leading automobile manufacturer
and the market leader in the car segment, both in terms of volume of vehicles sold
and revenue earned. Until recently, 18.28% of the company was owned by the
Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held
an initial public offering of 25% of the company in June 2003. As of 10 May 2007,

Govt. of India sold its complete share to Indian financial institutions. With this,
Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the
actual production commenced in 1983 with the Maruti 800, based on the Suzuki
Alto key car which at the time was the only modern car available in India, its only
competitors- the Hindustan Ambassador and Premier Padmini were both around 25
years out of date at that point. Through 2004, Maruti Suzuki has produced over 5
Million vehicles. Maruti Suzukis are sold in India and various several other
countries, depending upon export orders. Models similar to Maruti Suzukis (but not
manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and
manufactured in Pakistan and other South Asian countries. The company annually
exports more than 50,000 cars and has an extremely large domestic market in India
selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest
selling compact car ever since it was launched in 1983. More than a million units of
this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the
sales charts and Maruti Suzuki Swift is the largest selling in A2 segment.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti"
is commonly used to refer to this compact car model ("Maruti" is another name of
the Hindu god, Hanuman).
Maruti Suzuki has been the leader of the Indian car market for over two decades. Its
manufacturing facilities are located at two facilities Gurgaon and Manesar south of
Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of 350,000 units
per annum. The Manesar facilities, launched in February 2007 comprise a vehicle
assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant
with an annual capacity of 100,000 engines and transmissions. Manesar and
Gurgaon facilities have a combined capability to produce over 700,000 units
annually.
More than half the cars sold in India are Maruti Suzuki cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti

Suzuki. The rest is owned by public and financial institutions. It is listed on the
Bombay Stock Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported.
In all, over six million Maruti Suzuki cars are on Indian roads since the first car was
rolled out on 14 December 1983.
Maruti Suzuki offers 14 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz,
Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashi. Swift, Swift
Drier, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are
imported from Japan as completely built units(CBU), remaining all models are
manufactured in Maruti Suzuki's Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and
compact cars for three decades. Suzuki’s technical superiority lies in its ability to
pack power and performance into a compact, lightweight engine that is clean and
fuel efficient.
Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It
has been rated first in customer satisfaction among all car makers in India from
1999 to 2009 by J D Power Asia Pacific.
While the major companies were personally represented in the initial rounds of
discussion, Osamu Suzuki, Chairman and CEO of the company ensured that he was
present in all the rounds of discussion. Osamu in an article writes that it subtly
massaged their (Indian delegation's) egos and also convinced them about the
sincerity of Suzuki's bid. Suzuki in return received a lot of help from the
government in such matters as import clearances for manufacturing equipment
(against the wishes of the Indian machine tool industry then and its own socialistic
ideology), land purchase at government prices for setting up the factory Gurgaon
and reduced or removal of excise tariffs. This ensured that Suzuki conscientiously
nursed Maruti Suzuki through its infancy to become one of its flagship ventures.

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-
Star, Suzuki's fifth global car model, was designed and is made only in India. [6]
Besides being Suzuki's largest subsidiary in terms of car sales, Maruti Suzuki is also
Suzuki's leading research and development arm outside Japan
Relationship between the Government of India, under the United Front (India)
coalition and Suzuki Motor Corporation over the joint venture was a point of heated
debate in the Indian media till Suzuki Motor Corporation gained the controlling
stake. This highly profitable joint venture that had a near monopolistic trade in the
Indian automobile market and the nature of the partnership built up till then was the
underlying reason for most issues. The success of the joint venture led Suzuki to
increase its equity from 26% to 40% in 1987 and further to 50% in 1992. In 1982
both the venture partners had entered into an agreement to nominate their candidate
for the post of Managing Director and every Managing Director will have tenure of
five years
Initially R.C.Bhargava was the managing director of the company since the
inception of the joint venture. Till today he is regarded as instrumental for the
success of Maruti Suzuki. Joining in 1982 he held several key positions in the
company before heading the company as Managing Director. Currently he is on the
Board of Directors.[8] After completing his five year tenure, Mr. Bhargava later
assumed the office of Part-Time Chairman. The Government nominated Mr.
S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu
had joined Maruti Suzuki in 1983 after spending 21 years in the Public sector
undertaking Bharat Heavy Electricals Limited as General Manager. Later in 1987 he
was promoted as Chief General Manager, 1988 as Director, Productions and
Projects, 1989 Director, Materials and in 1993 as Joint Managing Director.
Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board
with the reason of it being called on a short notice. Later Suzuki Motor Corporation
went on record to state that Mr. Bhaskarudu was "incompetent" and wanted
someone else. However, the Ministry of Industries, Government of India refuted the
charges. Media stated from the Maruti Suzuki sources that Bhaskarudu was

interested to indigenise most of components for the models including gear boxes
especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for the
Government and would not let it increase its stake in the venture. [10] If Maruti
Suzuki would have been able to indigenise gear boxes then Maruti Suzuki would
have been able to manufacture all the models without the technical assistance from
Suzuki. Till today the issue of localization of gear boxes is highlighted in the press.
The relation strained when Suzuki Motor Corporation moved to Delhi High Court to
bring a stay order against the appointment of Mr. Bhaskarudu. The issue was
resolved in an out-of-court settlement and both the parties agreed that R S S L N
Bhaskarudu would serve up to 31 December 1999, and from 1 January 2000,
Jagdish Khattar, Executive Director of Maruti Udyog Limited would assume
charges as the Managing Director.[12] Many politicians believed, and had stated in
parliament that the Suzuki Motor Corporation is unwilling to localize manufacturing
and reduce imports. This remains true, even today the gear boxes are still imported
from Japan and are assembled at the
For most of its history, Maruti Udyog Limited had relatively few problems with its
labour force. Its emphasis of a Japanese work culture and the modern manufacturing
process, first instituted in Japan in the 1970s, was accepted by the workforce of the
company without any difficulty. But with the change in management in 1997, when
it became predominantly government controlled for a while, and the conflict
between the United Front Government and Suzuki may have been the cause of
unrest among employees. A major row broke out in September 2000 when
employees of Maruti Udyog Ltd (MUL) went on an indefinite strike, demanding
among other things, revision of the incentive scheme offered and implementation of
a pension scheme. Employees struck work for six hours in October 2000, irked over
the suspension of nine employees, going on a six-hour tools-down strike at its
Gurgaon plant, demanding revision of the incentive-linked pay and threatened to
fast to death if the suspended employees were not reinstated. About this time, the
NDA government, following a disinvestments policy, proposed to sell part of its
stake in Maruti Suzuki in a public offering. The Staff union opposed this sell-off

plan on the grounds that the company will lose a major business advantage of being
subsidized by the Government.
The standoff with the management continued to December with a proposal by the
management to end the two-month long agitation rejected with a demand for
reinstatement of 92 dismissed workers, with four MUL employees going on a fast-
unto-death. In December the company's shareholders met in New Delhi in an AGM
that lasted 30 minutes. At the same time around 1500 plant workers from the MUL's
Gurgaon facility were agitating outside the company's corporate office demanding
commencement of production linked incentives, a better pension scheme and other
benefits. The management has refused to pass on the benefits citing increased
competition and lower margins.
ORGANISATIONAL STRUCTURE
Chairman- _ Mr. R. C. Bhargava

Managing Director and CEO – Mr. Shinzo Nakanishi
Director _ Mr. Manvinder Singh Banga
Director _ Mr. Amal Ganguli
Director _ Mr. D. S. Brar
Director _ Mr. Keiichi Asai
Director _ Ms. Pallavi Shroff
Director _ Mr. Osamu Suzuki
Director _ Mr. Shuji Oishi
Director _ Mr. Kenichi Ayukawa
Director and Managing Executive
Officer (Production) - Mr. Tsuneo Ohash
CAR MODEL MODEL-SHOW ROOM PRICE

Maruti Suzuki 800
RS. 2,99,000
Maruti Suzuki Omni

Rs. 3,13,000
Maruti Suzuki Alto

Rs. 2,94,000
Maruti Suzuki Eeco

Rs. 3,91,000
Maruti Suzuki Zen Estilo

Rs. 3,86,000
Maruti Suzuki Wagon R 1.0

Rs. 5,32,000
Maruti Suzuki A-Star

Rs. 5,00,000
Maruti Suzuki Ritz

Rs. 6,14,000

Maruti Suzuki Swift
Rs. 5,99,000
Maruti Suzuki Swift Dzire

Rs. 6,91,000
Maruti Suzuki Gypsy

Rs. 6,41,000
Maruti Suzuki SX4

Rs. 8,16,000
Maruti Suzuki Kizashi

Rs. 16,53,000
Maruti Suzuki Grand Vitara

Rs. 22,68,000
Maruthi Suzuki Baleno

Rs. 5,63,000
Rs. 8,31,0000
Maruthi Suzuki Scross

Rs. 8,80,000
Rs. 11,43,000
Maruthi Suzuki Ciaz

Rs. 8,31,000
Rs.11,09,000
Manufactured locally
1. 800 (Launched 1983)
2. Omni (Launched 1984)
3. Gypsy (Launched 1985)
4. WagonR (Launched 2002)
5. Alto (Launched 2000)
6. Swift (Launched 2005)
7. Estilo (Launched 2009)

8. SX4 (Launched 2007)
9. Swift DZire (Launched 2008)
10. A-star (Launched 2008)
11. Ritz (Launched 2009)
12. Eeco (Launched 2010)
13. Alto K10(Launched 2010)
14. Suzuki Grand Vitara (Launched 2007)
15. Kizashi (Launched 2015)
16. Baleno (Launched 2019)
17. Ciaz (Launched 2014)
18. Scorss (Launched 2015)
19. Ignis (Launched 2020)
Discontinued car models

1. 1000 (1990–1994)
2. Zen (1993–2006)
3. Esteem (1994–2008)
4. Baleno (1999–2007)
5. Zen Estilo (2006–2009)
6. Versa (2001–2010)
7. Grand Vitara XL7 (2003–2007)
Manufacturing facilities
Maruti Suzuki has two state-of-the-art manufacturing facilities in India.[14] Both

manufacturing facilities have a combined production capacity of 1,250,000 vehicles
annually.
Gurgaon Manufacturing Facility
The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants
and is spread over 300 acres (1.2 km2). All three plants have an installed capacity of
350,000 vehicles annually but productivity improvements have enabled it to

manufacture 700,000 vehicles annually. The Gurgaon facilities also manufacture
240,000 K-Series engines annually. The entire facility is equipped with more than
150 robots, out of which 71 have been developed in-house. The Gurgaon Facilities
manufactures, the 800, Alto, WagonR, Estilo, Omni Gypsy and Enesco.
Manesar Manufacturing Facility
The Manresa Manufacturing Plant was inaugurated in February 2007 and is spread
over 600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles
annually but this was increased to 300,000 vehicles annually in October 2008. The
production capacity was further increased by 250,000 vehicles taking total
production capacity to 550,000 vehicles annually. The Manesar Plant produces the
A-star, Swift, Swift DZire and SX4.
Sales and service network
As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities
in all states and union territories of India. It has 2,946 service stations (inclusive of
dealer workshops and Maruti Authorized Service Stations) in 1,395 towns and cities
throughout India. It has 30 Express Service Stations on 30 National Highways
across 1,314 cities in India.
Service is a major revenue generator of the company. Most of the service stations
are managed on franchise basis, where Maruti Suzuki trains the local staff. Other
automobile companies have not been able to match this benchmark set by Maruti
Suzuki. The Express Service stations help many stranded vehicles on the highways
by sending across their repair man to the vehicle.
Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with
the help of the National Insurance Company, Bajaj Allianz, New India Assurance
and Royal Sundaram. The service was set up the company with the inception of two

subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance
Brokers Pvt. Limited.
This service started as a benefit or value addition to customers and was able to ramp
up easily. By December 2005 they were able to sell more than two million insurance
policies since its inception.
Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in
January 2002. Prior to the start of this service Maruti Suzuki had started two joint
ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE
Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied up
with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard
Chartered Bank, and Sundaram to start this venture including its strategic partners in
car finance. Again the company entered into a strategic partnership with SBI in
March 2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-
Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India.
"Maruti Finance marks the coming together of the biggest players in the car finance
business. They are the benchmarks in quality and efficiency. Combined with Maruti
volumes and networked dealerships, this will enable Maruti Finance to offer
superior service and competitive rates in the marketplace".Jagdish Khattar,
Managing director of Maruti Udyog Limited in a press conference announcing the
launch of Marot Finance on 7 January 2002 Citicorp Maruti Finance Limited is a
joint venture between Citicorp Finance India and Maruti Udyog Limited its primary
business stated by the company is "hire-purchase financing of Maruti Suzuki
vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank
Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned
subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and
Maruti Suzuki holds the remaining 26%. GE Capital, HDFC and Maruti Suzuki
came together in 1995 to form Maruti Countrywide. Maruti claims that its finance

program offers most competitive interest rates to its customers, which are lower by
0.25% to 0.5% from the market rates.
Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on
exports and it does not operate in the domestic Indian market. The first commercial
consignment of 480 cars was sent to Hungary. By sending a consignment of 571
cars to the same country Maruti Suzuki crossed the benchmark of 300,000 cars.
Since its inception export was one of the aspects government was keen to
encourage. Every political party expected Maruti Suzuki to earn foreign currency.
Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka,
Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets
served by Maruti Exports.
MITHRA AGENCIES
The Mithras Agencies is one of the best car showrooms in Hyderabad located at
Himayat Nagar.The Mithra Agencies provide a wide variety of services for your
car. People here speak very good English and they are very kind at receiving
customers. The Mithra Agencies provide services at reasonable prices. Also one
can see a wide variety of cars kept for display in the showroom.All company cars
are available here. Also the showroom charge for cars you buy is very less when
compared with other car show room. The Mithra Agencies is a very good place to
have a luxurious car. You will get full satisfaction for the money you pay. It invites
Sales experts for Himayath Nagar, Mehdipatnam, L.B. Nagar, Ghatakeshar,
Bhuvanagiri, Kampala, Ibrahim Putnam, Chevella, Paige, Tan door, Vikarabad
locations.
THE MITHRA AGENCIES HIMAYATHNAGAR, HYD.
ESTABLISHED: The Mithra Agencies is an authorized dealer of all Maruti cars,

which was established in the year 1988 in Hyderabad, Andhra Pradesh.

SELLING CAPACITY: The Company has sold, since its inception more than 1,
00,000 cars. Its turnover is more than 100 crores per annum. It is the senior most
dealer-ship in Andhra Pradesh.
STANDARDNESS: The Company boasts of being the first ISO-9001 certified

automobile dealer in A.P. The company has also to its credit a number of honors
and accolades from its principal Maruti Udyog Limited.
ACHIEVEMENTS&STRENGTHS
1. It has been awarded the All India Dealer Award for excellence in 1995 for
highest growth and lifting of Maruti Esteem and 1000cc cars.
2. Another award in 1997 was given to The Mithra Agencies “All India Dealer
Award” in category A for the highest counter sale of Maruti Spares in 1997.
3. This company has been awarded with a special citation for maximum growth
in Maruti Finance Penetration at the All India Dealers’ Conference at Bangkok in
2003.
4. It has been ranked All India 16th in the Balanced Score Card for 2004-
05among 230 odd dealers in the entire country by registering growth in ancillary
businesses like Maruti Insurance, MGA, Maruti Finance.
5. It has the privilege of having more than 50000 loyal customers who are repeat
buyers the obvious reason for being the most tried, tested and trusted since
yester years.
6. The Mithra Agencies has counter business with HDFC,ICICI ,SFL CMFL,and
KMPL disbursing 4 crores of car loans every month .
WORKSHOPS
The Mithra agencies have four state- of- the- art workshops situated in the prime
localities of the city. The following below are the workshops offered by Mithra
agencies.
1. Madhapur

2. RTC X roads
3. Moosapet
4. LB-Nagar.
BRANCHES
The Mithra agencies have three branches situated in the prime localities of the city.
The following below are the branches of Mithra agencies
1. Mithra Agencies Himayathnagar
2. Mithra Agencies Mehadipatnam.
3. Mithra Agencies L.B.nagar.
TRUE VALUE:
 Mithra agencies offering a true value service for a pre owned
Cars.
 Here cars are sold by the customers after evaluations.
 It brings a huge profit for the organization in second sales also.
SECTIONS
RTA
DELIVERYSECTION
EDP
A/C DEPT
CCM
MEETING HALL ETC
SELLING UNITS
Mithra agencies usually sell 300 cars in all 3 branches per month.
The total turnover yields approximately 15 crores.
Organizational Structure

MD
CEO & GM
DGM
Accounts Manager
HR Manager
Sales Manager Customer Care

Manager
TeamLeader &
Sales Executive
MD : M.BHASKAR MURTHY & M.RAMALINGAM

COO : V.BALAJI
DGM : T.R.K.REDDY
HR MANAGER : P.CHALAMA REDDY
ASST HR & PROJECT INCHARGE: MEHER PRAVEEN .T
SALES MANAGER : P.BHIKSHAPATHI GOUD
G.V.N.REDDY
T.NAVEEN
This is one of the Authorized Dealer Showroom of MARUTI SUZUKI
ORGANISATION, assisting the different customers in providing the vehicles
especially for TWIN CITIES (HYDERABAD & SECUNDERABAD)
Customers at good economical prices, at good after sales service, at customer
friendly interest rates, at zero tension Insurance policy and at cheap Genuine
Accessories.
In this target MITHRA AGENCIES has won many Customer’s hearts,

credits, compliments, confidence, loyalty, image, trustness, and accolades and
finally it became the MOST REPUTED DEALERS among its competitors. It
stands NO.1 among its competitors. Its Competitors names are VARUN
MOTORS PVT.LTD. R.K.S MOTORS, and ACER MOTORS etc.
POLICY OF MITHRA AGENCIES
The MITHRA AGENCIES is involved in both inbound sales and out

bound Sales (marketing) providing both permanent and non permanent jobs. Good
in retaining the experienced and talented employees by providing Promotions, good
incentives, good salaries, provident funds, bonus and other allowances.
It provides good quality of work life to feel interest in doing the job. The employers
and employees are very friendly and their motto is “25 YEARS DEDICATED
CUSTOMER SERVICE’’. The team members (employees) will play games and
also celebrates parties that are they are very sportive in nature.
Recruiting employees directly by walk in interviews and through references also as

they are not tied up with any recruitment consultancy. The various job positions are
H.R. Executives, Managers, Assistant Managers, Marketing Executives, Team
leaders, drivers, servicing employees, software employees, customer care
executives, and other posts. They are kindly helping MBA Final year students in
giving the opportunity for doing the project work successfully and also providing
the jobs for efficient project work students. They sell more cars on festival
occasions and on year endings. Customer satisfaction activities is there important
objective, they take the feedback of the customers after selling the cars and
customer retaining measures are taken by satisfying the customers. They are
having their own servicing centers. They are providing all the models of Maruti
Suzuki.

The period of free service is up to one year
1st service is up to 1000 kilometers or one month whichever is earlier.
2nd service is up to 5000 kilometers or six months whichever is earlier.
3rd service is up to 10,000 kilometers or 12 months whichever is earlier.
The period of free warranty is up to 2 years and extended warranty offer is also
available for next two years.
1. EXPERIENCED AND EFFICIENT CUSTOMER CARE STAFF IN
SHOW ROOMS.
This organization is having very good customer care and experienced Staff in
handling the customers very carefully; if the customer is treated very rashly the
customer goes to other competitors. The customer is provided with full fledged
information about the products about all facilities and services very peacefully so
that the customer feels confident and happy.
2. GOOD SERVICING
There is a good word of mouth for this organization in doing service, very
effectively among his competitors. Among its competitors like Varun Motors Pvt.
Ltd R.K.S Motors, Acer, The Mithra is having very good name for servicing of the
vehicles and this is also one of the reason for customer visits to this show room.
3. AVAILABILITY OF SERVICING CENTRES ALL OVER THE

COUNTRY
The MARUTI SUZUKI is having the servicing centers all over the Country i.e.
From KASHMIR TO KANYAKUMARI. This is indirectly motivating the
customers to buy. Why because most of the Competitors cars are of foreign

companies and the customers have to face lot of problems if repair comes and there
are no servicing centers for Competitors as Maruti is having.
4. AVAILABILITY OF SPARE PARTS ALL OVER THE COUNTRY

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

BRAND LOYALTY
The American Marketing Association defines brand loyalty as:

"The situation in which a consumer generally buys the same manufacturer-
originated product or service repeatedly over time rather than buying from multiple
suppliers within the category" (sales promotion definition).

"The degree to which a consumer consistently purchases the same brand within a
product class" (consumer behavior definition). In a survey of nearly 200 senior
marketing managers, 69 percent responded that they found the "loyalty" metric very
useful.
Brand loyalty is more than simple repurchasing, however. Customers may

repurchase a brand due to situational constraints (such as vendor lock-in), a lack of
viable alternatives, or out of convenience. Such loyalty is referred to as "spurious
loyalty". True brand loyalty exists when customers have a high relative attitude
toward the brand which is then exhibited through repurchase behavior. This type of
loyalty can be a great asset to the firm: customers are willing to pay higher prices,
they may cost less to serve, and can bring new customers to the firm. For example,
if Joe has brand loyalty to Company A he will purchase Company A's products even
if Company B's are cheaper and/or of a higher quality.
From the point of view of many marketers, loyalty to the brand — in terms of
consumer usage — is a key factor.
Usage rate
Most important of all, in this context, is usually the 'rate' of usage, to which
the Pareto 80-20 Rule applies. Kotler's 'heavy users' are likely to be
disproportionately important to the brand (typically, 20 percent of users accounting
for 80 percent of usage — and of suppliers' profit). As a result, suppliers often
segment their customers into 'heavy', 'medium' and 'light' users; as far as they can,
they target 'heavy users'.
Loyalty
A second dimension, however, is whether the customer is committed to the brand.

Philip Kotler, again, defines four patterns of behaviour:
1. Hard-core Loyals - who buy the brand all the time?

2. Split Loyals - loyal to two or three brands.
3. Shifting Loyals - moving from one brand to another.
4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking
for bargains or 'vanity prone', looking for something different).
Factors influencing brand loyalty
It has been suggested that loyalty includes some degree of pre-dispositional

commitment toward a brand. Brand loyalty is viewed as multidimensional construct.
It is determined by several distinct psychological processes and it entails
multivariate measurements. Customers' perceived value, brand trust,
customers' satisfaction, repeat purchase behavior, and commitment are found to be
the key influencing factors of brand loyalty. Commitment and repeated purchase
behavior are considered as necessary conditions for brand loyalty followed by
perceived value, satisfaction, and brand trust. Fred Reichheld, One of the most
influential writers on brand loyalty, claimed that enhancing customer loyalty could
have dramatic effects on profitability. Among the benefits from brand loyalty —
specifically, longer tenure or staying as a customer for longer — was said to be
lower sensitivity to price. This claim had not been empirically tested until recently.
Recent research found evidence that longer-term customers were indeed less
sensitive to price increases.
Industrial markets
In industrial markets, organizations regard the 'heavy users' as 'major accounts' to be

handled by senior sales personnel and even managers; whereas the 'light users' may
be handled by the general sales force or by a dealer.
Portfolios of brands
Andrew Ehrenberg, then of the London Business School said that consumers buy

'portfolios of brands'. They switch regularly between brands, often because they
simply want a change. Thus, 'brand penetration' or 'brand share' reflects only a
statistical chance that the majority of customers will buy that brand next time as part
of a portfolio of brands they favour. It does not guarantee that they will stay loyal.
Influencing the statistical probabilities facing a consumer choosing from

a portfolio of preferred brands, which is required in this context, is a very different
role for a brand manager; compared with the — much simpler — one traditionally
described of recruiting and holding dedicated customers. The concept also
emphasizes the need for managing continuity.
REVIEW OF LITERATURE
Marcel Gommans, Krish S. Krishnan & kartrin B.Scheffold (2001)in her study
“from brand loyalty to E-Loyalty conceptual frame work “,disused about brand
loyalty they felt that with rapid growth of E commerce and online consumers
shopping trends the importance of building and maintaining customer loyalty in
electronic market place has come in to shaper focus in marketing theory and
practice .this paper integrates previous research in the field of the brand loyalty to
present a conceptual frame work “E-Loyalty” and its understanding drives
implications for e marketing practice and future research directions also presented.

The concept of brand loyalty has sparked renewed interest in resent years this seams
to echo the emergency of relationship marketing (Morais, Dorsch and
Backman2005) ,which emphasizes the importance of establishing relationship
between customers and 6 businconsistently criticized for lacking theoretical
grounding and conceptual depth it is particularly disquieting that no consensus has
been reached on what loyalty is? that is what component should be include when
conceptualized measuring customers “brand loyalty and where to drawn the line
between loyalty and its outcomes. more ever the vast majority of previous loyalty
have focused on goods while the advent of the service
economy(gummerssom,2002)or “experience economy”(pine&Gilmore,1999)has
called for the more and services and therefore this study seeks to systematically
examine the conceptual domino structure of brand loyalty in eService context
What is Brand Loyalty?
Brand loyalty is a consumer’s preference to buy a particular brand in a product

category. It occurs because consumers perceive that the brand offers the right
product features, images. or level of quality at the right price.
There Are Three Main Reasons why Brand Loyalty is important
1) Higher Sales Volume:
The average United States Company loses half of its customers every five years,
equating to 13% annual loss of customers. This statistic illustrates the challenges
companies face when trying to grow in competitive environments.

2) Premium Price Ability:
Studies show that as brand loyalty increases consumers are less sensitive to price
changes. Generally they are willing to pay more for their preferred brand because
they perceive some unique value in brand that other alternatives do not provide.
3) Retain Rather Than seek:

Brand Loyalists are willing to search for their favorite brand and are less sensitive to
competitive promotions. The result is lower costs for advertising marketing and
distribution. Specifically it costs four to six times as much to attract a new customer
as it does to retain an old one.
Loyalty programs are structured marketing efforts that reward, and therefore
encourage, loyal buying behavior — behavior which is potentially of benefit to the
firm.
In marketing generally and in retailing more specifically, a loyalty card, rewards

card, point’s card, advantage card, or club card is a plastic or paper card, visually
similar to a credit card or debit card, which identifies the card holder as a member in
a loyalty program. Loyalty cards are a system of the loyalty business model.
Best Buy's loyalty program similarly offers points redeemable for dollar-amount
discounts after accumulating a set number of points along with other discounts from
time to time, though the card is not required to receive their advertised price in most
cases.
Independent hardware stores such as Ace Hardware and True Value added customer
loyalty programs in order to compete more effectively against larger chains as well
as gather customer data. In addition, office supply retailers Staples, Inc. and Office
Depot started issuing club cards in 2005.
The three largest loyalty programs are Link Points:- World Card (aggregate
program of Gentling Resorts, Sundeck City Mall, Star Cruises & Indigos)and
SAFRA Card.
The Link Points Programmer has more than 1 million members and over 600
participating merchant outlets.
Friends card is a loyalty card for Shoppers of Centro Department Stores. The Body
Shop People card is the loyalty card for The Body Shop stores in Indonesia. Other
notable programs in Asia include Kris Flyer, the Singapore Airlines rewards
program, and Asia Miles, which was part of Cathay Pacific.

India-mint is India's largest coalition loyalty program, with approximately 5 million
members.[ BPCL's PetroBonus is a pioneering program and also one of the largest
in the country with about 2 million members for the fuel card program. It also has
variants for fleets and convenience store customers. Likewise IOC's Fleet Card
Program XTRAPOWER has recently crossed 1 million mark. IOC has launched a
loyalty program XTRAREWARDS for Retail Customers.
The Maruti Suzuki Auto CAD, launched in association with Citibank and Indian Oil
had 370,000 cardholders as at October 2008.
Program management
Across the globe loyalty programs are increasingly finding the need to outsource
strategic and operational aspects of their programs, given the size and complexity a
loyalty program entails. Program managers are typically agencies with specialist
skills in loyalty consulting, creative and communication, data analytics, loyalty
software, and back end operations.
To some, participating in a loyalty program (even with a fake or anonymous card)

funds activities that violate privacy. There has also been concern expressed
regarding RFID technology being introduced to loyalty cards.
Loyalty and credit card reward plans might be viewed as modern day examples of a
kickback. An employee who needs to buy something (such as a hotel room or an
airline flight) for a business trip but who has discretion to decide which airline or
hotel chain foots strengthens its brand loyalty program by re launching.
Emphasizing on brand-awareness campaigns, loyalty programs, and assistance with

local end-user events
How do you plan to empower your channel network in India?

Watch Guard has a strong channel network and we are closely working with our
professional and expert partners to strengthen their business, increase the attach rate
of security subscriptions, and grow as they grow.

Understanding and cultivating luxury consumer loyalty is critical now for dealing
with economic downturn. Luxury marketers today face an increasingly resistant
consumer, one who is less likely to splurge and increasingly immune to advertising
focused on image and prestige. 'The fact is today's affluent consumer is less likely to
give a new brand a chance,' says Pam Danziger, author of the new book, Shopping:
Why We Love It and How Retailers Can Create the Ultimate Customer Experience.
'It is in tough times like these where marketers are rewarded for their investment in
brand loyalty programs. A brand loyal customer is one who buys your brand more
frequently and spends more when they do,' Danziger explains.
For luxury brands that haven't yet taken steps to build a brand loyalty program, it
isn't too late. But before you start printing membership cards and issuing points,
take a step back. Only the best constructed and most strategic loyalty programs are
capable of encouraging affluent consumers to come back to your brand time and
again.
'Over three-quarters of all luxury consumers are members of at least one loyalty
program, so these programs have a powerful appeal to affluent. What luxury brands
and retailers need to learn are the key attributes of their brand as viewed by their
customers so that they can design their loyalty program to appeal to their unique
customer base says Danziger.
In this new study on loyalty programs, those who design, market, and sell luxury
goods and services will get the facts to support developing a loyalty program for
their brand, or at the very least to conduct serious due diligence on implementing a
program.
'Deciding to offer a loyalty program is the easy part. However, understanding what
makes these programs attractive to luxury consumers can mean the difference
between cultivating an enthusiastic repeat customer and simply becoming another

plastic key fob or card in the wallet,' says Danziger.
NEED FOR THE STUDY
The motive of any company generally is to acquire larger market share, high % of
sales in the industry; this could be only achieved by building a higher % of brand
loyal customers.
Any company can survive if there is computational activity in the market and brand
loyal customers. Today many major companies in the market try to maintain and
improve their branded equity without creating proper brand awareness they can not
build brand image.

The 4 – Wheeler industry has been expanding rapidly these days have gone to feel
possessing a four wheeler is a luxury and also viewed as necessary. This industry
has customers, ranging from all demographic segments. It has been common signals
that even college going students are using 4 – wheelers.
The motive of the company generally is to acquire longer market system and high %
of sales by industry this could be only achieved by building higher brand loyal
customer
Any company can survive if there is computerize zonal activity in the market and
the brand loyalty customers. Today many major companies in the market try to
maintain and improve the brand equity without creating a proper brand awareness
they cannot build brand image strong brands help build the corporate image and also
buy marketing it eager for the launch a new brand therefore this concept of brand
loyalty requires detailed study.
SCOPE OF THE STUDY
Brand loyalty of beliefs held a specific brand. In short, it is nothing but the
customer’s perception about the product. It is the manner in which a specific brand
is positioned in the market. Brand loyalties emotional value and not just a mental
loyalty is nothing but an organization’s character. It is an accumulation of contact
and observation by people external to an organization. It should highlight an
organization’s mission and vision to all. The main elements of positive brand
loyalty que logo reflecting organization’s image, slogan describing organization’s
business in brief and brand identifier supporting the key value. If the concept of
Brand is ignored in the present days of competitive world, the survival of companies

will be very difficult. As such a study is required to probe into the concepts of
Brand loyalty.
OBJECTIVES OF THE STUDY
The study has been conducted with followings objectives.
1. To study about attitude demographical factors of Maruti customers

2. To analyzing the factor influencing the Purchase of Maruti Brand
3. To assess the Customer Satisfaction with Maruti 4 – Wheelers
4. To study brand loyalty with the service of Mithra Agencies
RESEARCH METHODOLOGY
RESEARCH PROBLEM
Since Maruti is one for the most popular brands in India , there is a high need to
understand whether the customers are loyal to the brand and have any kind of
influence from its awareness. Retaining customers is the main objectives of any
company, so a study to understand the influence of brand awareness seems to be not
going vain.
HYPOTHESIS OF THE STUDY:
Ho: The annual income of the customer and their brand awareness of Maruti Suzuki
are independent
H 1: Annual Income of the customer and their decision of buying Maruti Suzuki
brand car are independent

DATE SOURCE:
The data for the study will be collected both from primary and secondary sources.
A well defined questionnaire will be distributed to the customers, together required
information. Data will be also be collected through books, journals and will be
conducted websites.
SAMPLE SIZE :
A survey among 100 customers who will select based on convenience sampling
PERIOD OF THE STUDY:

The survey was conducted for a period of i.e., from April 2015to May 2015 (45
days)
TOOLS OF ANALYSIS:
Chi-squire test will be used for testing the hypothesis.
x 2   (O  E )2 / E
Where O = observed frequencies
E = expected frequencies
Degree of freedom (V) = n-k

n = number of frequencies classes.

K = number of independents constrains.
For a contingency table with “r“no. of rows and “c” of columns.

The degree of freedom is
r = (r-1) (c-1)
Divide (O-E) 2 with the expected frequency.
Obtain  (O  E )2 / E
OPERATIONAL DEFINITION:
BRAND AWARENESS:
Brand Awareness of the ability of a potential buyer to recognize /recall that a
brand is part of a product category
BRAND VALUE:-
Brand value is functions of the customer perception, his / her attitude towards
it, and the economic value (or) price that that the customer attaches to the brand.
PERCEIVED QUALITY:
Perceived quality is the bench mark by which the customer evaluate different
brand on quality.
BRAND STRATEGY:
Brand strategy is a set of actions deliberately chosen after a careful evaluation

of alternatives, to help the strategist actualize his vision and achieve brand long-
term objectives.

BRAND ASSOCIATIONS:
Invariably are brands come to acquire a meaning in the mind of the customers.
Customer association different dimensions of the product, including its use and use
situations to the brands.
CO- BRANDING:
Co-branding effort in today’s marketing era is that of Intel and computer

manufacturers around the world, which created strong brand awareness and identify
for Intel.
LIMITATIONS OF THE STUDY
 The sample size is restricted under response only.
 Due to certain constrains, the survey is limited to the Twin Cities Hyderabad
and Secunderabad.
 The survey can not be generalized to rural areas as it is limited to twin cities
only.

 As brand loyalty is intangible the measurement was difficult
 The comparison between Mithra Agencies and other dealers has not been
made due to the flack of information.
 New customers who bought the four wheelers recently were not aware of
services offered
 Analysis is based on the information given by the customers.
DATA ANALYSIS & INTERPRETATION
1. Analysis of Gender
Gender No. of respondents Percentage
Male 96 96%
Female 4 4%
Analysis of Gender

Interpretation:
The above table shows that 96%customers are male, and only 4% customers are
female so the company has to increase the level of female users.
2. Analysis of Age groups
Age No. of respondents Percentage

25to 30 16 16%
31 to 35 18 18%
36to 40 26 26%
41to 45 30 30%
46 and above 10 10%

Analysis of Age groups
Interpretation:
The above table shows that 20-25 age group customers are 16%; 26-30 age group
customers are 18%; 31-35 age group customers are 26%; 36-40 age group
customers are 30% and 41 and above age customers are 10%.
3.Analysis of Occupation
Occupation No. of respondents Percentage

Doctors 20 20%
Business 46 46%
employees 34 34%

Interpretation:
The above table shows that 20% of customers are Doctors, 34% customers are
employees and 46% are customers are business. So company has to look in to
increasing using of students
4.Income of Respondents
Income per month No. of respondents Percentage

0 – 10000 4 14%
10001 – 15000 24 30%
15001- 20000 52 34%
> 20001 20 22%

Interpretation:
The above table 4.4 shows that income of 0-10,000 are 4%, income of 10001
-15,000 are 24%, income of 15001-20000 are 52% and income of 20001 above are
20%.
5.Car Model
Car Model No. of respondents Percentage

Maruti 800 40 40%
Swift 24 24%
Wagon R 12 12%
others 24 24%

Interpretation:
The above table 4.5 shows that 40 % of the customers are using Maruti 800
followed by 24 % using Swift and 12 % using Wagon R where the company should
further try to increase the brand usage.
6. Awareness of Maruti Suzuki brand
Awareness No. of respondents Percentage
Yes 100 100%

No 0 0%

Interpretation:
The above table shows that 100% respondents known the brand name of Maruti.
7. Age of Your Car
Number of
age of car Percentage
respondents
0-1year 24 24%
1-2years 20 20%

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

advertisement 44 44%
friends 36 36%
Relations 20 20%
other 0 0%

Interpretation:
The above table shows that 44% customer awareness advertisement, 36% of
customers is awareness with friends, 20% customer’s awareness through papers. So
the company should increase through papers.
9. Purpose of your usage
Purpose of Your Use No of Respondents Percentage

family use 24 24%
business 56 56%
leisure riding 20 20%
other 0 0%

Interpretation:
The above table shows that 24%customers using for family use, 56% customers
using for business use, 20% customers using for riding users. So the company
should increase family users
10. What make you buy the brand
What make you buy the brand No of Respondents Percentage

brand image 32 32%
safety 20 20%
mileage 40 40%
features 8 8%

Interpretation:
The above table shows that 32% customers using for brand image ,20% customers
using for safety ,40% customers using for mileage, 8% customers using for features.
So the company should increase features
11. Satisfaction of the car
Satisfaction of car No of Respondents Percentage

yes 84 84%
no 16 16%

Interpretation
The above table shows that 84% customers are satisfied, 16% customers are not
satisfied.
12. Rating of Maruti brand
Rating of Maruti Brand No of Respondents Percentage

Excellent 44 44%
Good 36 36%
Average 20 20%
Poor 0 0%

Interpretation:
The above table shows that 44% customers are response is excellent, 36%
customers are response is good , 20% customers are response is good o%
customers are response is poor so company increase level of satisfaction
13. Performance of the car
Performance of the car No of Respondents Percentage

excellent 32 32%
good 46 46%
average 22 22%
poor 0 0%

Interpretation:
The above table shows that 32% customers are response are excellent, 46%
customers are response is good , 22% customers are response is good o%
customers are response is poor so company increase level of satisfaction
14. Change of customers brand in future
change of brand No of Respondents Percentage

Yes 76 76%
No 34 34%

Interpretation:
The above table shows that 76% customers are response are change their brand,
34% customers are not change their brand
15. Why are you using Maruti Suzuki brand
Using Maruti Suzuki brand No of Respondents Percentage

Mileage 30 30%
Low price 32 32%
Comfort 28 28%
Style 20 20%

Interpretation
The above table shows that 30% customers response is mileage, 32% customers
response is low price , 28% customers response is comfort and 20% customers
response is style as they are using the Maruti Suzuki company cars.
20. How do compare Maruti Suzuki with others
Comparison No of Respondents Percentage

Excellent 35 35%
Good 45 45%
Average 11 11%
Poor 9 9%

Interpretation:
The above table shows that 35% customers are response are excellent, 45%
customers are response is good , 11% customers are response is good 9%
customers are response is poor for the comparison between Maruti Suzuki and other
brand cars.

FINDINGS
 The study reveals that majority of the Customers age was between 25 – 45
years
 Majorities of the customers of Mithra Agencies were Males
 The target customers were mainly in upper middle class income group and
Upper class.
 Most of the Customers of Maruti were Business men.
 Most of Four wheelers used by the Customers of Mithra are Maruti
 Percentage of Customers using the Four Wheelers of Maruti not less then 1-
2 years.
 Alto, Baleno, Maruti 800CC, Zen and all types of Brands are the specialized
brands for Mithra.
 Majority of the Customers were self- influenced to purchase the Four

Wheelers of Maruti
 The main reason for Customers to choose Mithra for the service orientation
provided
 100 % of the Customers were satisfied with the service of Mithra Agencies.
50% of the Customers were recommended for the modification offered by Mithra to
the loyalty customers

SUGGESTIONS
 Mithra should maintain the stock of spares of all brands of Maruti Four
wheelers so that it does not cause any inconvenience to the Customers.
 The charges for servicing the four wheelers may be slightly reduced. For the
quality of unpaid service should be kept at par with that of paid service.
 As a promotional measure Mithra can increase free services camps which

increases the Customers’ loyalty.
 A few more service stations smaller in size may be set up in various areas
across the city where there is more demand which satisfy more customers of
all areas.
 As per the study after service, cleaning and servicing vehicles should be
given importance and improved upon.
 Care should be taken to see that delivery of new car as well as serviced car
should be on time.
 Customers are expecting some complaints during the delivery of Car. Hence,
such items may be given to improve Customer satisfaction.

CONCLUSION

The Brand Loyalty for Maruti Suzuki at Mithra is very positive; the reasons
contributing here is both the Brand Maruti and the services by Mithra Agencies.
Hence the companies should further try to integrate even more and see that they
give a product as per the customer requirements and services to satisfy the
customers and thereby increase the brand loyalty.
QUESTIONNAIRE
Name:
Age:
Contact No.:
Qualification:
1) Gender
a) Male b) Female
2) Age
a) 20-25 b) 25-30
c) 30-35 d) 40-45
e) 45 and above
3) Occupation
a) Student b) Employee
c) Business
4) Monthly Income (INR)
a) 0 - 10000 b) 10000-15000

c) 15000-20000 d) 20000 and above
5) Which of the following factors impressed you while using MARUTI SUZUKI
product?
a) Brand image b) value for money
c) Availability d) all the above
6) How much monthly income

a) 10-15000 b) 15-20,000
c) 20,000 above
7) Which model of Maruti you use
a) M-800 b) M-swift
c) Belano d) other
8) Do you know about Maruti Suzuki brand?
a) Yes b) No
9) How old is your car ?

a) 0-1year b) 1-2year
c) 2-4years d) 4years-above
10) How did you come to know about product you are using?

a) Friends b) newspaper
c) Advertisement d) other
11) What purpose do you use?

a) family use b) business
c) Leisure riding d) other
12) What make you to buy the brand?

a) brand image b)safety
c) mileage d)features
13) Are you satisfied with your car?

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

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

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

a) mileage b) low price

c) style d) comfort
17) If you get better car than Maruti, will you change your brand?
a) yes b )no
16) Any other Suggestions
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
____________
BIBLIOGRAPHY
Books:
1.PHILIP KOTLER,MARKETING MANAGEMENT” PRIENTICE HALL OF INDIA

NEW DELHI.2001
2.VS RAMASWAMY,MARKETING MANAGEMENT 3rd EDITION, WEST
PUBLISHING NEW YORK,2005
3.C.R KOTHRI RESEARCH METHODOLOGY,7th EDITION SOUTH WESTERN
PUBLISHING ,2005
Journal:
 Indian Journal of brand awareness
 Journal of marketing
 Business World

 Business Line
Web sites:
 www.google.com
 http://www.MarutiSuzuki.com
 www.Marutitruevalue.com

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INTRODUCTION

Additionally, it also means an inherent assurance to the customers of quality. Many

According to the American Marketing Association (AMA), “A brand name

SV DEGREE & PG COLLEGE - ANANTAPUR Page 1

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or

The extent of the faithfulness of consumers to a particular brand, expressed through

SV DEGREE & PG COLLEGE - ANANTAPUR Page 2

SV DEGREE & PG COLLEGE - ANANTAPUR Page 3

Global brands are brands sold to international markets. Examples of global

SV DEGREE & PG COLLEGE - ANANTAPUR Page 4

SV DEGREE & PG COLLEGE - ANANTAPUR Page 5

As companies move from manufacturing products to delivering complete

SV DEGREE & PG COLLEGE - ANANTAPUR Page 6

Organizations are brands, whether it is a company that delivers products and

SV DEGREE & PG COLLEGE - ANANTAPUR Page 8

In the year 1769, a French engineer by the name of Nicolas J. Cugnot

SV DEGREE & PG COLLEGE - ANANTAPUR Page 9

SV DEGREE & PG COLLEGE - ANANTAPUR Page 10

Indian Automobile History

The origin of automobile is not certain. In this section of automobile

SV DEGREE & PG COLLEGE - ANANTAPUR Page 11

SV DEGREE & PG COLLEGE - ANANTAPUR Page 12

Imaginative market will emphasize relationship building and customer

SV DEGREE & PG COLLEGE - ANANTAPUR Page 13

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

Modernizing the Indian Automobile Industry by bringing in the latest technology

SV DEGREE & PG COLLEGE - ANANTAPUR Page 14

MUL Vision is to be a leader in the Indian Automobile Industry, Creating Customer

Open office culture for easy accessibility

SV DEGREE & PG COLLEGE - ANANTAPUR Page 15

Maruti Suzuki India Limited (NSE: MARUTI, BSE: 532500) a partial subsidiary

SV DEGREE & PG COLLEGE - ANANTAPUR Page 16

SV DEGREE & PG COLLEGE - ANANTAPUR Page 17

SV DEGREE & PG COLLEGE - ANANTAPUR Page 18

SV DEGREE & PG COLLEGE - ANANTAPUR Page 19

SV DEGREE & PG COLLEGE - ANANTAPUR Page 20

Chairman- _ Mr. R. C. Bhargava

SV DEGREE & PG COLLEGE - ANANTAPUR Page 21

Director _ Mr. Manvinder Singh Banga

Director _ Mr. Amal Ganguli

Director _ Mr. D. S. Brar

Director _ Mr. Keiichi Asai

Director _ Ms. Pallavi Shroff

Director _ Mr. Osamu Suzuki

Director _ Mr. Shuji Oishi

Director _ Mr. Kenichi Ayukawa

Director and Managing Executive

Officer (Production) - Mr. Tsuneo Ohash

CAR MODEL MODEL-SHOW ROOM PRICE

SV DEGREE & PG COLLEGE - ANANTAPUR Page 22

Maruti Suzuki Omni

Maruti Suzuki Alto

Maruti Suzuki Eeco

Maruti Suzuki Zen Estilo

Maruti Suzuki Wagon R 1.0

Maruti Suzuki A-Star

Maruti Suzuki Ritz

SV DEGREE & PG COLLEGE - ANANTAPUR Page 23

Maruti Suzuki Swift Dzire

Maruti Suzuki Gypsy