Maruti Suzuki's Enduring Success: A Business Research Report

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Business Research Assessment

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Introduction
Business research is known as the process which helps organisations in collecting and
analysing data or information from all the sources for each and every field of the
specified business. The information which is collected by the company is used by them
in increasing their sales and level of profit of the business. The process of business
research helps companies in understand and comparing their company with other
companies and understanding which products or services are more useful for the
customers and profitable for the company. There are two types through which
companies can earn higher profit, whether they sell less priced product in larger quantity
or high priced product in balanced quantity. Business research is really helpful for the
companies because it helps them customer satisfaction and higher market reach.
In this study, there will be discussion on the topic “why Maruti is the leading brand for
cars in India for since 4 decades”. The description on this topic has been given in this
study by the help of literature review, primary and secondary data. Qualitative and
quantitative techniques for the collection of data will also be used in this study to explain
about the reason for the growth of Maruti in India. Research methodologies will be used
in this study which explains how the data has been collected and interpreted. Sampling
and questioner will also be using in this study which will really be helpful for the
companies.

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Literature review
In accordance with Singh (2014), until the 1980s, the automobile sector in India was not
so successful and was in line in the economy with the state intervention's overall policy.
The production of the Vehicles was closely and basically regulated by a system of
industrial licensing, and this system was only allowed to control the prices, models, and
outputs. In the 1980s the only companies that used to build the cars were Hindustan
Motors Ltd and Premier Automobile Ltd. The market of automobile sector was majorly
transformed in 1983 when the relaxation on the licensing policy and also because of the
major entry in the automobile sector (Car market) of the Maruti Udyog Ltd.
According to Nielsen and Wilhite (2015), Maruti Suzuki Ltd formerly known as the Maruti
Udyog Ltd is the largest passenger car manufacturing company in India that has
covered more than 50 per cent of the market of the domestic car in India. Maruti Suzuki
manufactures almost all varieties of cars and offers the customers with a full range of
cars starting from Alto for the customers of a low budget to the stylish and high range
cars like sedan, SX4, etc. for the customers with high affordability. Maruti is engaged in
many of the automobiles related business like manufacturing of cars, sale, and
purchase of the motor vehicles and spare parts of the automobiles (Monga, et. al.,
2012)s. The company is also a good competitor in the business of financing of cars,
management of fleet, and sales of pre-owned cars.
In accordance to Tiwari and Herstatt (2012), Maruti Suzuki has four major plants
situated in India (one is located in the Manesar Industrial town in Gurgram, and three
are located in the Palam Gurugram Road in Gurugram). Maruti Suzuki was established
under the Indian government to manufacture cars for the middle-class people of the
country in which Suzuki was a minor partner. The company was earlier known as the
Maruti Udyog Ltd which was established in the year of 1981, and after years working
under the government of India, the ownership of the company changed the hands and
widened the range of the product and its manufacturing because of the evolvement of
the customers.
As asserted by Shende(2014), Maruti Suzuki has evolved through many years of
experience and slowly started to spread the business in different markets too. As of
now, the company has developed many different subsidiary companies; some of them
are Maruti Insurance Agency Solution Ltd, Maruti Insurance Business Agency Ltd, True
Value Solution Ltd, Maruti Insurance Agency Services Ltd, etc. As the company has
been evolved through years of experience, the leaders of the company now understand
the needs and demands of the customers very well and because of this reason Maruti
has become a major influence for the customers in the market (Shende, 2014).
In accordance with Mathur and Agarwal (2016), Maruti Suzuki has developed its
strategies that are customer favouring from the past two decades. Maruti was the first
company linked with the government of India to manufacture and provide the best
affordable cars to the customers with a lower budget. It is important for the leaders of
any business company to understand that to be on the top of any business market it is
very important to determine and understand the needs, expectations, and demands of
the customers (Monga, et. al., 2012). Maruti Suzuki is paying attention in determining

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the needs and fulfilling the demands of the customers, and this reason has made the
company to grow and also helped in making a strong grip in the Indian market. Also, the
company is providing a high range of varieties of services and products to the
customers of approximately every variety and with every possible range of
products(Mathur and Agarwal, 2016).
As opined by Kumar and Bhatia(2014), Maruti Suzuki uses many different strategies in
different segments to stay ahead of the competition in the Indian market that has made
the company to create a strong grip in the market from decades. The company is
providing affordable cars to customers from 1980s, and now also 50 per cent of the
domestic cars are sold to the customers in the Indian market by Maruti (Bhattacharya,
et. al., 2014). Since the company is doing great in the Indian market, it is obvious that
the company is using strategies which are customer favouring. Maruti Suzuki is having
a wide range of models in the market of almost every segment of the automobile
(Kumar and Bhatia, 2014). Maruti Suzuki offers sixteen different brands and has around
150 spanning variants across every possible segment so that it can serve a diverse
range of the customers from lower to a higher class.
According to Menon and Raj (2012), states that India is a country where the number of
average or middle-class people is very high, so the people are happy with small things.
In the automobile sector of the Indian market small is beautiful. Maruti Suzuki
understands this very well as it was established by the Indian government to provide
automobiles and its services for the middle-class people. The company is continuing the
legacy of providing an average range of cars to the customers that can afford their
products and services (Menon and Raj, 2012). Maruti Suzuki is the largest carmaker in
India as they have used India's affinity to its advantage for the small-sized cars. They
also got advantage from the selling of the small-sized cars in the Indian market as it
consumes low petrol and also by providing low servicing cost. This made the company
to attract the customers from a wide range.
The viewpoint of Rana and Lokhande(2015), Maruti Suzuki after gaining success from
the small-sized cars in the Indian market and become the dominant player in small cars
and started investing in the manufacturing of the premium cars too. Now Maruti Suzuki
has become the leading automobile company in the Indian market in every segment of
the passenger cars. Since Maruti Suzuki is in the market from over four decades, it has
developed many business and marketing networks in the market of automobile sector
and continuously improving their strategies to stay at the top in the competition(Rana
and Lokhande, 2015).
In accordance to Malhotra and Sinharay (2013), Maruti Suzuki is the company that
manufactures the best possible products or services with a wide range for a wide range
of people, and because of this reason, it is leading the Indian market in the automobile
sector from decades. Maruti Suzuki has become the largest car selling company in the
Indian market by selling more than 1.5 billion units of passenger cars and become the
biggest car maker company in India. Maruti has sold this amount of units for the first
time in the three decades (Kumaraswamy, et. al., 2012). The leaders of the company

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Maruti Suzuki made different strategies at different times like when the price of the
diesel was lower than the price of petrol in India, the leaders of the company identified
this opportunity and started investing in diesel technology and also designed new
models and gained the market shares with its powerful networks in the market. Maruti
Suzuki also started to invest in the utility vehicles and captured the first spot in the
market of utility vehicles in the fiscal year of 2018. The eagerness to stay at the top in
the business market helps to improve Maruti Suzuki to lead the Indian market regularly
(Srivastava and Tiwari, 2012). The company Maruti Suzuki topmost priority from the
beginning has remained the same that is to provide the best product or services to the
customers of every possible whether it lower, the middle or upper class of people and
this is the most important reason that Maruti Suzuki is loved by the customers. Maruti
Suzuki's key strength has always been its loyalty towards the brand(Malhotra and
Sinharay, 2013).
As per Sarwade(2015), Maruti Suzuki put efforts in creating a strong corporate culture in
the workplace so as to satisfy the employees working in the company and also to gain
the advantage in the competitive market through the regular improvement of the
performance of the workers in the company. It is very important for any company to be
successful in the business to satisfy their employees and customers in every way
possible and the corporate culture gives a unique identity to the organization. Maruti
Suzuki has been providing a clear vision and goals of the company to the employees
from the establishment of the company in the 1980s and with the clarity in the goals,
and vision employees of any organization can put their efforts in the right direction
effectively and can increase the productivity level within the workforce. The Human
resource management of Maruti Suzuki is very efficient in managing the employees of
the company from decades, and that has helped the company to gain the top position in
the market of the automobile sector(Sarwade, 2015).
According to Ray (2012), the automobile industry of India has joined new line in 1991
with delicensing different type of sectors and has opening subsequesnly done for the
100 percent FDI by the help of self guided route. This article has been focused on the
estimation of the performance of the company and country both economically for the
Indian automobile industry in relation with the utilisation of capacity at average rate or
level (Prasad, 2012). The estimation of the rate econometrically of the utilisation
capacity within the industry at average level and analysis has also been done by the
help of trend in the market after liberalisation period of 1991-92 to 2005-06. The study
conducted in this article is also showing the impact of different types of factors with the
utilisation capacity of the company or industry effectively and efficiently. The output of
the Maruti Company in this industry is very high optimally and as the minimum point of
the increment in the company for small level also shown or represented in the total cost
curve and the rate of utilisation capacity is just a ratio which shows the real or original
output of the company Maruti. The profit of this company has been increased after
merging with the Suzuki Company of Japan which really helped to increase in India and
Suzuki gave technology to Maruti which really supported this company to expand
successfully and rule the market since 4 decades (Ray, 2012).

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As per Jadhav (2012), this article will be covering about the suitability of the leaf
competitively spring on the vehicles and also explained their advantages of the
automobile industry. Efforts have been made to decrease the composite cost for the leaf
spring to that of springs made up of steel. Springs are the very important part of a car
and if anything affects the spring of the car then it will not be able to run smoothly in any
type of road or terrine. The reduction in the weight of car due to the use of steel
suspension is an achievement for the Maruti Company because it is not an easy task to
reduce the weight of a car. The mechanical properties in the car have also been
improved which has been created by the composite replacement of the leaf material in
the car by steel suspension which is conventional in nature (Jadhav et. al., 2012). The
amount of material and manufacturing has been selected and calculated on the cost
and factors which give strength to the factors related to the manufacturing of car. The
mass production is the main source of deciding the design of the car by Maruti
Company. This car manufacturing company is a very big company because it won the
hearts of their customers and it gave strength to them for manufacturing the car so that
they can satisfy their customers in a very effective and efficient manner (Prasad, 2012).
The strategies of marketing used by the company
Every company should take four decisions before launching any product in the market
which is very important for the products' success. These four decision or variables are
also known as the 4Ps of marketing. The four variables are as follows.
Product: The first thing the company should decide is what are the products and of
what quality the product should be made. As per Lokhande and Rana (2013), it is
deciding the product, and its quality is most important as it will allow the company to
identify the competition in the market and making the marketing plans accordingly.
Maruti Suzuki is a company that provides customers with the products and services of
the automobile sector. The quality of products or services the company provides is very
good which make the company stays ahead of the competition. Though Maruti is doing
great in the market, the company does not want to lose the grip that has been made
through years of working and improve its product strategies regularly (Lokhande and
Rana, 2013).
Pricing: Pricing of the product and services depends on many different variables, and it
should be updated constantly to stay in the market. The major components of pricing
are the marketing expenses, cost of the services or products fluctuation of the price of
the product or services, the cost of distribution of the product or service and advertising
of the services or products. This may include many other factors too (Zafar and Khalid,
2012). The pricing of the product or services should be based on the range of the
customers for which the product or service is being introduced. Maruti Suzuki has set
the price range by identifying the affordability of the customers for which the products or
services have been introduced in the market (Lokhande and Rana 2013). The pricing
strategies of Maruti Suzuki are very flexible as it should be because of the factors that
may cause the price of the product or service to increase or decrease.

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Place: The channel of distribution of the service or product is referred by the place in
the 4Ps of marketing. According toMenon and Raj (2012), the place is the 4Ps of
marketing, and if any product or service is a consumer favouring, it should be available
as wide and far as possible so that the consumer that may need the product can have
the product easily. If the product or service of the premium consumer is favouring them,
it may be available in the selected stores only. Since Maruti Suzuki provides all range of
products and services to the customers so the company has made the availability of the
products or services in every possible place and the company also uses a plan that is
full proof logistics and supply for the distribution of the product and services.
Promotion: Promotion in the 4Ps of marketing is a very important part of this marketing
strategy as it helps the customers to know the product or services fully. The promotion
of the product or service includes integrated marketing communication completely
through sales promotion and also advertising (Menon and Raj, 2012). The promotion of
the product or service is directly dependent on the decisions of product or service and
pricing. Maruti Suzuki promotes its product and services through many different ways
like advertising, holdings, events, etc. Maruti Suzuki is using these promotion strategies
from decades and is improving the promotion strategies by identifying the responses of
the consumers after the promotion.
Maruti Suzuki is using the strategy of 4Ps from over decades and making changes
which are required in the strategy for the improvement of the company’s performance.
Through the strategy of 4Ps, the company identifies all the necessary and sufficient
conditions required for fulfilling the demands and needs of the customers. This has
made the company stand out, and the top of the market as other companies are unable
to use the proper strategies to compete with Maruti Suzuki especially in providing low
budget cars with excellent quality.

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Research methodology
It is the systematic research of the strategy or sat it as the plan which is very helpful for
guiding the research. There are many categories of the qualitative and also the
quantitative methods are used for the research that is to be drawn with the help of the
sociologists, the sociologists also include the participant's observation and the
experiments which supports the secondary data. The research methodology also
supports the collecting of different type of data which is very helpful for the many big
decisions of the business. Here the research methodology was built for the Maruti
automobile industry and this company is the leading automobile industry in India from
the last four decades (Reilly, et. al., 2017). The fundamental and the technical analysis
are the two common methodologies that are helping for investing in the market. In this
research, the study goes on the various methodologies chosen by the Maruti
automobile company and their strategy for leading in the market from the last four
decades.
Quantitative Methods
It is the highlight of the research methods their measurement of the statistical data, their
numerical analysis and also the mathematical data that is collected from the various
samples and also from the questionnaires and the reviews. The pre-existing data is also
helpful for the study.
Characteristics of the quantitative analysis study of the research:
 This type of study highly reliable because the study is duplicate for the other
information.
 The sample size is also large and the result is also based on the models.
 Many time the researchers also use some other tools for the research such as a
computer, and also the questionnaire for the collection of the data numerically.
 The data which is collected from the survey is display in the form of charts, tables,
figures, and also with the help of non-textual forms
Qualitative methods
It is the method of research in which the data is collected with the open-ended and also
from the communication that is casual. It is mainly for the market research method for
obtaining the data. This type of method is mainly designed for acknowledging the
behavior and also to observe to the spectators that are targeted (Hammersley, 2017).
There are different types of qualitative research methods are present such as:
 Ethnographic research
 In-depth interview
 Case study
 Content analysis
 Observation process
 Keeping the record
 One on one interview

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Hypothesis
It is the testable statement for the connection between the two and more than two
variables. This hypothesis testing is necessary for the scientific method. The alternative
hypothesis is the prediction that researchers are done for particular data. According to
the people choose the testability is acceptable and if there is enough support for the
hypothesis then consider the different result is not necessary. The unplanned type of
the relationship between the two variables is expecting by the simple hypothesis that
means the relationship in which the effect of one to another (Hammersley, 2017). Like
studying for the exam to get the best result so, here the studying for the exam is the
independent variable and result that is achieved is the dependent variable. The values
that are independent are always manipulated and the dependent variables are always
measured. The complex type of hypothesis is just similar to a normal hypothesis but it
includes more than or equal to two variables (Kelchen, 2018).
Sampling and Sample Size
Sampling is just like selecting the size of the model that is required because of the
model become the demonstrative for studying the population. There is a disadvantage
that to choose the easier option this depends on the suitability of the sampling and there
all the people who are available for the learning of the population unless and until it
reached to the compulsory size of the sample. There is two types of sampling:
Probability Sampling: this is the detailed type of sampling and it is not suitable for the
qualitative methods and this is stratified, systematic, and the multi-stage.
Nonprobability sampling: this type of sampling is the qualitative research method that is
helpful for the study of the population (Künnecke, et. al., 2018).
On the other hand, the sample is like the required size that is supportive of the
exactness of the results and also helps to suggest for the adjustments that are in the
current population. The general factor that is necessary is the required size of the
sample that supports for achieving the goals for the study.
Questionnaire
1. Which is your favorite car in the Maruti Suzuki?
a) Alto
b) WagonR
c) Swift
d) Ritz
2. Why are you giving the first choice to the Maruti Suzuki while buying the small
cars?
a) Good facilities
b) Quality service
c) Price
d) Good designs
e) Mileage

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3. Which type of media is influencing you to buy these cars?
a) Broadcasting
b) Product demonstration
c) Word of mouth
d) Publications
4. The best reason for choosing the Maruti Suzuki.
a) Mileage
b) Price
c) Features
d) Brand name
5. What is your personal opinion for choosing the Maruti Suzuki by comparing it
with others?
a) Excellent
b) Very good
c) Good
d) Average
6. If the small cars of the Maruti Suzuki are upgraded to the sedan or Suv cars so
whether you will choose for the same brand?
a) Yes
b) No
7. Are you satisfied with the price of the Maruti Suzuki with comparing it with the
other brands?
a) Highly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
8. Do you want any type of changes in the Maruti Suzuki cars?
a) Yes
b) No
9. Do you feel that there will be the demand for the model like NANO in Maruti
Suzuki?
a) Yes
b) No
10. Do you suggest to buy the car of Maruti Suzuki to your relatives and friends?
a) Yes
b) No
Data collection
There are different types of techniques by which the data or information has been
collected. The information or data which is collected by these methods are perfect and
systematic in nature and it also helps in conducting the scientific research critically
(Kelchen, 2018). The collected data helps in different types of activities in the business
because it is very important for the company to understand the activities so that they
can achieve their desired goals and objective without facing any kind of problems or

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issues in the action s performed by them. The participants who have taken part in the
process of data collections are mostly students. The technique of data collection is
dependent on the different types of research methods which is included in the overview
of document, measuring, observation, questioning and the venture of the methods by
the help of various types of platforms.
The data collection tools and methods are questionnaire which includes the series or list
of questions that helps in the information collection representation.
The main steps for building questionnaire:
 The first step is to explain and define the objective or study: This questioner is very
helpful in the collection of accurate and reliable data or information in a very logical
and systematic format so that company can come upon the suitable and useful
conclusion of the research and it will gradually help in the increasing the profit of the
company (Künnecke, et. al., 2018).
 The target people who will going to answer the questioner are the customers and
general public who well going to use the product of the company. The researcher
are very clear in defining the aims and objective so the study that has collected data
in bulk which will eventually going to help them in understanding the nature of the
customers be very effectively and efficiently.
 The design of the questioner has been made in such a way that each question will
going to contribute in testing the base of hypothesis because it really helped in
establishing the design of research effectively.
 The car testing of the questioner has been identified and also helps in solving the
problems or confusion developed by the questioner for the customers in some of the
points so that they can be able to give the perfect answers to each and every
question. During the test of cars the participants who are answering the questions of
the questionnaire are selected randomly within the crowd (Kumar and Bhatia, 2014).
 The management of questioner will help the company to understand the points of
the bigger topics which are included in the questioner and those questions are very
important for them to answer so that they can get their outcome of the research or
data collection techniques.
 The results which are gathered by the research or questioner need to be very clear
and easy to understand so that it can be very suitable for them to understand the
main purpose of the research. Quantitative technique of data collection has been
used in this study which is very helpful for the company to collect the information in a
very clear and exact or to the point (Lokhande and Rana, 2013).
The advantage of data collection by the help of questioner:
 The cost which is incurred on this data collection method is very low adn data which
is collect is large in size.
 The words whci are used byt he rspondents to answer thew questions are their own.
 The respondents should reach to the place of submitting the questioner on time so
taht it iwll be easy for the company to sort them (Malhotra and Sinharay, 2013).
 There are very huge and large amount of samples which is used in the questioner so
that it can be trust worthy and consistent in nature (Mathur, and Agarwal, 2016).

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Before utilising the questioner, the test of car driver should be important to take by the
company so taht they can understand that they are taking answers with the reliable
person. In the big surveys conducted by Maruti car company is handled by them very
carefully because that collected data will be used by the m in taking decision for the
betterment of the company in a very effective and efficient manner(Menon and Raj,
2012).
Analysis and interpretation
1. Which is your favourite car in the Maruti Suzuki?
Category 1 Category 2 Category 3 Category 4
0
2
4
6
8
10
12
14
4.7
2.5 2.5
4.5
2.4
4.4
1.8
2.8
2 2
3
5
Swift
WagonR
Alto
2. Why are you giving the first choice to the Maruti Suzuki while buying the
small cars?