Final Maruthi Team1
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Transcript of Final Maruthi Team1
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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.