Synopsis on Customer Relationship Management

G. PULLAIAH COLLEGE OF ENGINEERING & TECHNOLOGY, KURNOOL MASTER OF BUSINESS ADMINISTRATION 2012-2013 SYNOPSIS REPORT On A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT WITH REFERENCE TO M. S. A. MOTORS, KURNOOL Submitted by C. VENKATA NAGA SINDOOR Roll no: 11AT1E0052 Under the guidance of K. NAGAIAH, MBA Assistant Professor. INDEX| 1. | Introduction| | 2. | Objectives of the Study| | 3. | Need for the Study| | 4. | Scope of the Study| | 5. | Research * Source of data * Procedure of sample size| | 6. | Limitation of the Study| | 7. Company details| | Synopsis Approval Letter This is to certify that Mr. C. Venkata Naga Sindoor, Reg. No 11AT1E0052 submitted the synopsis report entitled “A Study on Customer Relationship Management with reference to M. S. A. Motors, Kurnool in fulfillment for the award of Master of Business Administration to G. Pullaiah College of Engineering and Technology is a record of bonafide work carried out by him under my guidance and supervision. Signature of the Guide Signature of the HOD Introduction

Relationship building with customers is now accepted as over-riding goal of marketing and of the business as a whole. In service industries, the goal is especially emphasized since a repeat customer is believed to cost merely a fraction of what needs to be spent in servicing a new customer is service transaction. It is believed that relationships flourish when marketers play the book, meet customers. core expectations and exceed in respect of other features of their total offering. Service firms have been the pioneers in adopting the practice of Customer Relationship Management practices.

Indian banking industry has witnessed rapid development in recent past with the initiation of financial sector reforms. The thrust of financial sector reforms was to improve efficiency, competitiveness and productivity of the financial system. The entry of new generation private sector banks which provided technology aided services like Internet banking, Mobile banking, Inter Branch network, etc. , has electrified the banking environment in India and has added a new dimensions to automation in Indian banking. Customer Relationship Management is a vital factor to improve the performance of the banks.

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Most of the banks in India are now turning to CRM as they are increasingly realizing that the cost of acquiring new customers is for higher than the cost of retaining existing customers. This quest has led to the implementation of CRM in banks. The concept of CRM is in the initial stage of implementation in banks, as getting the CRM philosophy work in a bank is quite complex as well as a challenging task for, its implementation is based on certain key principles, namely, ?The banks must realize that all customers are not equal; Customer profitability varies from person to person; ?Not all customers are evenly desirable for the banks; ?The banks must differentiate their customers based on the „Value Criteria; ?Value is the profit that the customer adds to the bank account; and ?A more profitable customer is a „High Value customer and a less profitable customer is a „Low Value customer. Changing perception of customer The perception of a customer has drastically changed. Peter Drucker said twenty-five years ago, that the purpose of a business wads to attract and retain a customer.

There has been a phenomenal change and paradigm shift towards customer focus during the past five decades in the Indian context, ?1961-1970 Servicing the Customer, ?1971-1980 Satisfying the Customer, ?1981-1990 Pleasing the Customer, ?1991-2000 Delighting the Customer, ?2001 and beyond Relating the Customer. Today, the customer relationship between the banker and customer has come under the sharp focus both the customers? ends. 2. OBJECTIVES OF THE STUDY * To identify various services offered by MSA motors to consolidate their CRM strategies. To study the customer perception on factors influencing Customer Relationship Management in MSA motors * To classify the customers opinion on initial strategies, maintenance strategies, technology, service satisfaction and impact of CRM. * To ascertain the perception of show room executives on various aspects of CRM. 3. Need for the study As lifestyles change people begin to have more experiences in banking. There are two consequences of this 1) Customers have different feelings about services provided for them by Show rooms 2)Customers develop higher expectations for their Buying experience. . Scope of the study Scope of this study is it will assist MSA motors to get its own customer relationship management system mirror well and it will get all the important things before eyes to apply all the possible ways to provide a superb service to the customers and accordingly make them loyal and retain them long lasting and also to get new customers to be served. Scopes can be stated in few points as follows * Maintain current/ existing customers. * Achieve new potential customers. * Retain all the customers * Profitability increment Reputation and credibility increment, etc. , 5. Research Methodology Source of the Data: Primary Data 1. Primary data are always original as it is collected by the investigator. 2. Suitability of the primary data will be positive because it has been systematically collected. 3. Primary data are expensive and time consuming. 4. Extra precautions are not required. 5. Primary data are in the shape of raw material. 6. Possibility of personal prejudice. Primary data is collected from interview and questionnaire in this study. Secondary data

Secondary data, is data collected by someone other than the user. Common sources of secondary data for social science include censuses, organizational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any individual researcher to collect on their own.

In addition, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and or developments. Secondary data is collected from company, newspapers, journals, websites, and from library books. 6. Limitations of the Study * The response from the customer may be biased * Since the sample size is limited, it may lead to the partial true factor about the research. * The information obtained or the collection of data is limited. Due to time constraint the study is restrict to Kurnool only

COMPANY DETAILS Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been producing cars in India since 1983. Maruti’s revenues totaled approximately 73. 3 billion rupees in 2009-2010. It’s operating profit as of 2009-2010 is 75 billion rupees while its net profit comes to 6. 8 billion rupees. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India, which have an annual combined capability to produce over a 12 lakh (12, 00,000) passenger car units.

The company is planning to invest 17 billion rupees in the Manesar plant. Maruti is known for its hatchback cars, especially the Maruti 800. Other popular hatchback models include the Maruti Zen and the Alto. It offers fourteen brands and over one hundred and fifty variants - Maruti 800, Omni, Eeco, Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, Gypsy, SUV Grand Vitara, sedans SX4 and Swift DZire. Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4.

Maruti Suzuki has an employee strength over 7,600 (as at end March 2010). In 2009-10, the company sold a record 10,18,365 units including 1,47,575 units which we exported primarily to Europe, the remaining 870,790 sold in India. In the third quarter of 2009-2010, the company sold 258, 026 units. Thus, in March 2010, Maruti Suzuki had a India market share of 53. 3 per cent of the Indian passenger car market of 16,33,752 passenger car units. Maruti Suzuki will be investing around Rs. 1,250 crore (Rs 12. 5 billion) on capacity expansion of the K-series engines between 2010 and 2012.

The expanded annual capacity will be over 7 lakh units from the present 5 lakh units of K-series engine cars. This will be a progressive investment to be completed by 2012. It has a sales network is 802 centers in 555 towns and cities across India. The customer service support network comprises of 2,740 workshops in over 1,335 towns and cities. In 2008, Maruti Suzuki India Limited, unveiled a National Road Safety Mission under which it would train 500,000 people in safe driving in 3 years at 61 Maruti Driving Schools and 4 Institutes of Driving Training and Research (IDTR) in Delhi, Dehradun and Vadodara. HISTORY

In 1981, Maruti was launched. The company was started by the Government of India and was initially called Maruti Technical Services Private Limited. The first Managing Director of the company was Sanjay Gandhi, late-Indian Prime Minister Indira Gandhi’s son. During the period of 1985 to 1996, a few other significant developments took place including Suzuki taking up 50% stake in Maruti, leading to a 50-50 joint venture between Maruti and the Government of India and over 60 per cent of its parts being produced in India leading to lower costs of production as the parts didn’t have to be imported from abroad.

When asked why Suzuki was chosen as the partner of this established corporation, the chairman of Maruti, Mr. R. C Bhargava said that the company went to Japan and none of the companies out of Nissan, Mitsubishi and Daihatsu were ready to bring 40 per cent equity in India. Suzuki was the only company which agreed to bring 26 per cent equity in India and raise it to 40 per cent thereafter. The first car that the company produced was a four-door Maruti 800 and the second car that the company produced was a Multi-Utility Vehicle called the Omni. Between 1994 and 1996 Maruti released the Esteem, the Gypsy, the Omni, the Gypsy King, Zen and Esteem.

It also opened a second plant in Manesar whose capacity at the time of opening was 2,00,000 units. In 2000 Maruti launched a call center. This was the first time a car company had ever launched a call center in India. In this year, Maruti setup a website for its Wagon-R car, introduced a new model of the Zen, got the IRTE National Award for its safety initiative, traffic management and environment protection, launched the Baleno and the Wagon R with electric power steering, joined hands with Sumitomo for providing after-sales service and introduced the Suzuki Alto. The Gurgaon plant had stopped production due to a strike by the employees.

Maruti introduced its first CNG car in 2001. In the same year Maruti invested 550 crore rupees in manufacturing cars. In 2002, Maruti launched Maruti Finance to offer financial services like extended warranty and finance for car insurance. It also hiked its car prices and launched the Versa. This was a good year for Maruti in exports as it produced 16,000 cars for an order to Europe. In the next few years Maruti got into collaboration with various companies to launch car-selling schemes. They partnered with State Bank of India to launch a scheme where each branch of the bank would sell a Maruti car.

The company also tied-up with Reliance Industries Limited for lease and fleet management. This was the same year Kumar Mangalam Birla joined Maruti as an independent director. From 2005 - 2007 Maruti became the market leader of Indian cars and in 2006 unveiled the new Wagon-R in Punjab. In 2007, Maruti launched the SX4 sedan. TECHNOLOGY Maruti Suzuki uses an innovative Compressed Natural Gas technology – the Intelligent Gas Port Injection (iGPI) on five of its models – the SX4, Eeco, WagonR, Estilo and Alto. The iGPI technology delivers more power and runs like a petrol-filled engine while achieving fuel-efficiency.

The iGPI technology uses injectors for each cylinder and a particular amount of CNG is injection in the engine through gas ports. The Engine Control Unit controls the amount of CNG needed for each ride. Two components used by Maruti in cars such as the Maruti Omni to help increase fuel economy are the crankshaft sensor and knock sensor. They control the ignition timing and fuel injection. The crank shaft is a part of the car’s engine that translates its linear motion into rotation. The sensor is part of the internal combustion engine which monitors the position and rotational speed of the crankshaft.

The knock sensor is a part that’s linked to the car’s engine-when the car’s engine is not working it knocks on it and usually you hear the knocking sound. The knock sensor will send a signal to the Powercontrol Car Module (PCM). The Maruti Swift has a Direct Diesel Injection System engine. This engine has efficient combustion, higher torque and cleaner emissions. It is an extremely light engine and has a 75 bhp, 190 Nm of torque capacity. It has a five-step multi-injection technology that makes the car run more smoothly than other cars.

It also has a Double Over Head Camshaft that gives the engine a quick run. It also has a Chain Drive Timing System. This engine is way better than the Maruti 800 engine which has a Single Over Head Camshaft and only two valves per cylinder while the Swift has sixteen-valve cylinder. The Maruti Suzuki SX4 has a Variable Valve Timing engine. According to the company, they will use K-Series engines in all car models. India’s largest car manufacturer Maruti Suzuki decided to implement the K-series petrol engine in all the models for at least five years according to a company report.

The K-Series engine is a straight four cylinder engine that comes in Single Overhead Camshaft and Double Overhead Camshaft variants. This engine will be made in the Maruti Manesar plant in Haryana for the A-Star car which is produced in India and sold in Europe. The K-Series engine is Euro 4 and Euro 5 compliant and is the most advanced of engines. The engine has a CO2 emission of 109 gm/km and plans to reduce it further. The engine is extremely fuel efficient. ------------------------------------------------- Awards & Recognition

As one of the top Indian brands of cars, Maruti Suzuki has won many national and international awards since it began production. Some of the major accomplishments of Maruti are listed below: 1. Maruti Suzuki Alto received the TNS Voice of Customer Award in 2008. TNS Global is a market research firm. In the same year Maruti received the CNBC-Autocar India Award in the category Best Value for Money Car for the SX4. It also received the CNBC-Autocar India Best Mid Size Car Award and the CNBC-Autocar India Car of the Viewers’ Choice Award for the SX4.

Maruti Suzuki India Limited received The Car Manufacturer of the Year Award in 2008. 2. In 2009, Maruti won the JD Power Asia Pacific Customer Satisfaction Index (CSI) Survey award, the JD Power Asia Pacific Sales Satisfaction Index (SSI) Survey award, the Most Preferred Car Brand Award at CNBC AWAAZ Consumer Award, the Golden Peacock Eco-Innovation Award, and the Gold-Award by India Manufacturing Excellence Awards (IMEA). 3. In 2010, Maruti won the CNBC-TV18 Overdrive Manufacturer of the Year Award and the Autocar Manufacturer of the Year Award. 4.

Alto’s “Boondon Mein” campaign won the Silver medal of the prestigious “Effie Award” in 2006 and 2007. 5. Alto won the “Car of the Year” and “Most Exciting New Car of the Year” by India’s automobile magazine in 2000. Some of the international awards that Maruti has won include the following: 1. Japan – It won the Car of the Year award by the Automotive Researchers' ; Journalists' Conference, the 2005-2006 Car of the Year, the Goof Design Award by Japan Industrial Design Promotion Organization and the 2005-2006 Carview of the Year Award. 2.

Iceland & Ireland – Maruti Suzuki won the Car of the Year 2006 given out by the BIBD Association of Automotive Journalists, the Samperit Irish Car of the Year 2006 given out by the Irish Motoring Writer’s Association. 3. New Zealand and Australia – Maruti won the Fairfax AMI Small Car of the Year Award by Autocar, the National Business Review Small Car of the Year Award by The National Business Review and the 2005 Carsguide Car of the Year. 4. Malaysia – Maruti Swift was the winner in the NST Mastercard Car of the Year 2005 “Small Car” category. 5.

China – Maruti Swift won the 2005 CTV COTY “Economical Car” by CCTV. ------------------------------------------------- International Operations Maruti Suzuki is a global company with over 8,500 employees engaged in sales, customer service, manufacturing, and distribution in many countries across the world. It is partly owned by the government of India and partly owned by the Japanese company, Suzuki Motor Corporation. Suzuki Motor Corporation, the parent company owns 54% of Maruti’s shares. Maruti’s cars are of European style but custom-made to cater to the local markets.

Maruti Suzuki has launched the Grand Vitara, SX4 and the Swift as part of the worldwide strategy. Maruti Suzuki not only provides hatchbacks, mid and small level cars but also luxury cars. Maruti Suzuki has also launched another concept car called Kizashi which was showcased in the Frankfurt Motor Show and is now available in India. The Grand Vitara, which is an SUV and Kizashi, which is a sports sedan are imported from Japan as completely built units(CBU). Maruti Suzuki is sold in China by Jiangnan Auto. The company has launched the car at Rs. 1. 24 lakhs.

Four companies that produced the Maruti 800 in China are: Chang’an Auto, Jiang Nan, Xi’an Tai and Sichuan Auto Maruti Suzuki also has office in Japan. Indian engineers sometimes travel to Japan to work on Maruti cars and Japanese engineers sometimes travel to India to provide their expertise for Maruti Suzuki. ------------------------------------------------- Exports Maruti Suzuki exports entry-level models across the globe to over 100 countries and the focus has been on identifying new markets. The company exports to the United Kingdom, Italy, Hungary, Netherlands, Germany, Latin America, Africa, Philippines and Indonesia.

Along with these countries, Maruti also sells its cars to Algeria, Chile, Sri Lanka and Nepal. The company exported 38,000 passenger cars in 2006-2007, around 6. 4 per cent of its total sales. The car that contributes most to Maruti’s export income is the A-Star model. In 2007, Maruti got an export order of 11,000 units of the Zen Estilo to Indonesia and 1,500 units of the Maruti Alto to the Philippines, become the initial car manufacturer to export to South East Asia. Maruti crossed the cumulative half-a-million export mark in February 2008, becoming the first Indian car company to export half-a-million units.

Maruti has tied up with the Mundra post for development of port facilities for export shipments through Pune Car Carriers. Maruti started exporting cars from this post in January 2009. Moving to international markets, Maruti has large export volumes to Latin America and the lesser-developed region of Africa. Maruti’s exports have increased by 60% over the years at these two locations. In 2008, in a joint venture between Maruti Suzuki, Mundra Port and the Special Economic Zone, the company exported 1,00,000 units of the A-Star from the Mundra Port.

Even though the company exports to all five continents, Europe makes up 56 per cent of Maruti’s cumulative exports as of February 2011, making it the single largest source of export income for the company. The sales figures for the continent of Europe as of February 2011, by country are given below: - Netherlands - 67,700 units - Italy - 41,000 units - United Kingdom - 34,000 units - Germany - 20,000 units - Hungary - 20,000 units ------------------------------------------------- Future Plans On May 11, 2011, Maruti announced its plans to design new car models at its Rohtak Plant in India.

The new car models will be crafted for the next four years for the Indian and International Market. Maruti is experimenting with new car models in an effort to stay ahead of its competition and will be responsible for 25 per cent of Suzuki, its parent company’s, revenues. In the financial year 2010-2011 Maruti Suzuki reported a net sales figure of 37,522 crore rupees. Maruti will invest in a new plant in Gujarat which will produce 6 million units a year which is being done in an effort to make the company the leader in the car market. The company is having a look at different plants as shown by the Government of India.

In another effort, Maruti will introduce four new cars in the Indian market: The mass-market hatchback, a utility vehicle, a new and improved Swift, and a unique SX4. The company plans to release the design of the YE3, the hatchback by June-July 2011 while the car will actually be shown in the Auto Expo 2012. The company plans to design the YE3 without any involvement of Suzuki which is a major feat since most of its cars have been designed in collaboration with Suzuki in the past. The YE3 will be a four-door, four seat hatchback and will be available in a 600-800cc engine and a five speed manual transmission.

The company also plans to launch the Maruti R3 under a different name. The Maruti R3 is a Multi-Utility Vehicle that will come in a Rs. 7 lakhs – Rs. 9 lakhs ex-showroom price and is a six-seater compact van strapped with three rows of seats and rear-hinged rear doors. The car will come in both 1. 2 litre K-Series engines and a 1. 6 litre Variable Valve Timing engine, each of which have been present in the popular models of Swift and SX4. The R3 will compare to an Innova. The company plans to sell it in emerging markets. It will be showcased in the Auto Expo 2012.

The company plans to get a diesel engine for the car from Volkswagen. The third new model of Maruti, the new Swift will be launched by July 2011 will a 1. 3 litre multi-jet diesel engine and a 1. 2 litre K-Series engine. The new Swift fall in the Rs. 3. 5 - 5. 5 lakhs bracket depending on the model and approximately 17,000 units will be produced each year. Along with coming up with new cars and new plants, Maruti is also expanding its transportation capacity. The company has forged partnerships for this with the Adani group to set up a mega car terminal at the Mundra port.

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