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MARUTI SUZUKI INDIA LIMITED Srikanth Ashok Prabhavathi Pavani Rani Garg Sriman Reddy Vishwa Prasad -Competitive Strategi es of the Market Leader Presented By

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MARUTI SUZUKI INDIALIMITED

Srikanth  Ashok Prabhavathi  Pavani 

Rani Garg  Sriman Reddy  Vishwa Prasad 

-Competitive Strategies of the Market Leader 

Presented By

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Vision

The Leader in the Indian AutomobileIndustry, Creating Customer Delightand Shareholder’s Wealth; A pride of 

India

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INTRODUCTON

Maruti was founded in 1971, and carmanufacturing took place in 1981

After the decline of market share Marutistarted its restructuring exercise

New products launched by the companywere well accepted

Their strategic moves were new Kb engineand CNG versions of all its products

Exports of small cars would be one of themajor elements in company future growthstrategy

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BACKGROUND

In 1970,s: Indian government decided to have small car 1971: Maruti limited was set up

1978: company was liquidated

1981: Maruti Udyog limited was incorporated to take over the assetsof Maruti limited

1982:Indian government and Suzuki signed the jointventure (Suzuki was offered 26% stake in Maruti)

1983:On december 14 th 1983 the first vehicle from Maruti 800was launched.

1984: Company launched Omni

1985: Company launched Gypsy( first off road viechle in India)

1987: Company started exporting cars

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1990: Maruti launched its first sedan

1992: Suzuki increased its stake to 50%

1993: Zen was launched

1994:Maruti Esteem was launched

1997: Maruti came up with model workshop servicing centre

2000: Maruti reported a loss of 2.69 billion

2003: Floated initial public offering with a price per share ofRs.125 and listed in NSE and BSE

2006: Joint venture with Japan based BellsonicaCoororation( 70% stake of Bellsonica)

2007: Name changed from Maruti Udyod Ltd to Maruti

Suzuki India 2008: MoU with Mundra Port

and on 14 th December 2008 completed its 25 years of operation 

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Competitive strategies

Maruti upgraded its manufacturingfacilities to meet the challenge withhigh-end technology

Broadened its product portfolio andexpanded its sales and servicenetwork

Promotional strategies like price cuts,

promotional offers, launchingcampaigns, offering value addedservices

It has a product offering at all price

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Promotional strategies

In 2000, price-cut for Maruti 800,Omni, WagonR

‘carnivals’ at IDTR to promote efficient

driving and road safety ‘change your life’ – 2003

‘rupee one only’

‘zoom card’, ‘Do ka Chaar’, ‘Teacher 

Plus’, ‘Wheels of India’ 

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Upgrading manufacturingFacilities Target of Challenge 50 i.e; improving

productivity by 50% and reducing costper vehicle by 30% by 2004-05

In 2008 manufacturing capacity from 8to 10 lakh units

It increased its diesel engine

manufacturing capacity by 1 lakh unitsannually

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Large product portfolio

2000 –

Alto2001 – Versa

2003 – Zen

2004 – Esteem

2005 – wagon R, Baleno,

Swift

2006 – Zen Estilo

2007 – Sedan, Vitara

2008 – Swift Dzire

2011 –

new SwiftIt offers 14 brands andover 150 variants

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Expanding business portfolio

Maruti Driving School - 2000,

Maruti True value - 2001

Maruti Finance – 2002

Maruti Insurance

Green Cabs with GPRS

Website for True Value customers

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Distribution NetworkDistribution network of maruti kept it ahead

from its competitors

Introduced non-stop maruti expresshighways

First automobile company to start Call

centre

Express service Facility and Maruti Versa

Service support

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Concentrating on Tier – 1,2,3 cities

Maruti is the only company which also

concentrated on rural India

In 1987 itself it started exporting its cars

received awards from the All India

Engineering Export Promotion Council

(EEPC)

Planning to open more number of outlets in

major cities, due to increase in the

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SWOT

Strengths•Established distribution &after sales network•Brand image•product offering at all pricepoints•Japanese Technology

Weaknesses• Changing CustomerPreferences• Not concentrating allsegments

Opportunities•Rural Markets•Increasing purchasing power•Scope of increasing Exports

• Eco friendly cars• Diversify

Threats• Competition from foreignCompanies• Increase in fuel prices

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 New Swift

A-starSX-4

KizashiRitz

Dzire

Wagon RAlto

Zen(Estilo)

M-800Versa

Omni

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Exports

The Company clocked its highestever exports at 147,575 units, agrowth of 111% in the Fiscal Year

2009-10. MSIL Receives Gold Trophy for "Top

Exporter for the Year 2008-09" for theNorthern region.

The world loves Alto - more than 2million units sold

A star crosses the 2 million mark in

 just three years

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Future

The present market share of MSIL is44.9%

But until 2009 its about 52%, because

it lose its share to Ford India andVolkswagen mainly.

Designing small cars suitable for the

Indian conditions It should launch compact cars with

more features to meet the needs

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Contd… 

It should concentrate on more fuel efficientcars as in future the oil prices increase

It should emphasize on the growing export

market. It has already planned to introduce 15 to 20

new products in next 5 years

It should introduce its electric car before its

competitors does

It has already introduced its CNG versionwhich is eco friendly.

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OUTLOOK

• Car market leader Maruti Suzuki India Limited sold a total of10,18,365 vehicles in 2009-10.

• First time in Indian automobile history that a car company hassold over a million units in a financial year. This included8,70,790 units sold in the domestic market, the highest ever bythe company in a fiscal.

• The total sales numbers in 2009-10 mark a growth of 29 per

cent over last financial year. Maruti Suzuki's total sale in 2008-09 was 792,167 units

• The export numbers in the year were led by A-star.

• During March 2010, Maruti Suzuki sold total of 95,123 units,

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• Ritz launched in May 2009, Grand Vitara launched July 2009 and Eecolaunched in January 2010

• A spate of new launches and product refreshments during 2009-10helped the company to clock sterling performance in the fiscal. Theseincluded – 

Maruti Suzuki Ritz (May 2009),

all-new Grand Vitara (July'09),

new Estilo with K-series engine (Aug'09),

new SX4 with VVT engine and SX4 with automatic transmission(Oct'09)

Eeco (January 2010).

• On March 23, 2010, Maruti Suzuki rolled out the one millionth car of theyear 2009-10. This feat takes the company into a very select group ofglobal automakers with such volumes.

• Maruti Suzuki is now expanding its production capacity to reach12,50,000 units (1.25 million) by 2012. In March 2010, the companyannounced an investment of Rs 1,700 Crore for expansion of theproduction facilities by 2.5 lakh units at its Manesar plant.

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 Thank You