8/10/2019 Marketing Framework of Maruti Suzuki

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Introduction

Maruti Udyog Ltd was established in 1981. Maruti Suzuki India Limited is a publicly listed

automaker in India. It is a leading four-wheeler automobile manufacture in South Asia. Joint

venture agreement with Suzuki Motor in 1983. Suzuki Motor corporation of Japan holds a

majority stake in the company. It was the first company in India to mass-produce and sell morethan a million cars.

Its manufacturing plant, is located some 25 km south of New Delhi in Gurgaon, It has an

installed capacity of 3,50,000 units per annum, with a capability to produce about half a million

vehicles.

Marketing Framework of Maruti Suzuki:

4 Ps of Marketing

The 4 Ps of Marketing are:

Product

Price

Place

Promotion

Product

There are number of products models of Maruti in the market.

They define different factors:

4Ps

Product

Price

Place

Promotion

5Cs

Customer

Company

Context

Collaborators

Competitors

STP

Segmentation

Targeting

Positioning

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The quality of product.

The product variety from different categories.

The size of the car according to current or future market conditions.

The car features to the customer like, car looking very good

Maruti Suzuki has divided its product line into five segments as per following table:

Product Line Products

A1 (Mini) Alto 800

A2 (Compact/Hatch Back) Alto, Celerio, Wagon-R, Swift, A-star, Ritz

A3 (Mid-Size) Dzire, SX4, Ciaz

Utility Vehicle Vitara, Gypsy, Ertiga

Multi-Purpose Vehicle Omni, Versa, Eeco

Price

The price of the Maruti car is between Rs. 2.6 lakh to Rs. 3 lakh. Alto800 is the

lowest price car of this company.

Alto, Omni, Wagonr, are also the low price car of the company, Swift and Celerio are

the mid-price car of the company. But Grand Vitara, SX4 and Ciaz are the high price

model of the company.

The price of car are decided according to its product Varity, quality, design etc.

Alto: Ex-Showroom Price- Rs. 3.38 lakh to Rs. 3.55 lakh

Celerio: Ex-Showroom Price- Rs. 3.93 lakh to Rs. 5.06 lakh

Dzire: Ex-Showroom Price- Rs. 5.12 lakh to Rs. 7.61 lakh

Ertiga: Ex-Showroom Price- Rs. 6.24 lakh to Rs. 8.99 lakh

Place

They enjoy a well-distributed and an extensive network of Car-sale outlets, Exclusive

Showrooms, authorized service stations, True-value Outlets.

Some details of the extensive network for MSIL are:-

a. Showrooms & Car Sale Outlets1358 covering 1034 cities

b. Authorized service stations3053 nationwide service outlets covering 1449 cities

c. True-Value Outlets668 covering 393 cities

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Promotion

The company has for most of its years of operation targeted the Indian middle class

families as their main consumers.

Their Promotional strategy has always been to create an emotional Connect with the

audience.

Maruti Suzuki has used various media of promotion

Print Media The Company has also used Newspaper, Magazines to promote its

products to the consumers.

TVThere have been a lot of advertisements through this media as most of the target

audience connects to Maruti Suzuki through its emotional TV commercials where the

company touches everyone irrespective of their Demographics, Age, Occupations, etc.

There is always an added advantage when you connect to the audience through audio-

visual media as it is supposed to leave an ever-lasting impact on the consumers

The 5Cs Of Marketing

The study the 5 Cs of marketing arises is called Situation Analysis

Situation Analysis is study of current market or industry in which a company wants to

launch a new product.

In order to launch a new product, a company first needs to study

the market conditions.

The conditions are about the number of competitors and their market share, the cost of

producing the product, the profit ratio, etc.

5Cs Of Marketing are:

Customer

Company

Competitor

Context/Climate

Collaboration

Customer

Maruti has started a number of plans in purpose of well customer service.

They have even changed their interior of showroom allowing customers to walk

minimum in the showroom and there are schedules for customer service times and

delivery of vehicles.

Customer will find all car related needs met under one roof. Whether it is easy

finance, insurance, fleet management services, exchange.

It provides a single window solution for all car related needs.

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Company

Goals with Maruti is to modernization of the Indian automobile industry.

Offer products technology and services that improve quality of life.

Expand reach and customer touch points to provide assurance and comfort tocustomers

Focus on improving quality across the value chain.

Competitors

Although most of the major global players are present in the Indian market; few more

are expected to enter due to the welcoming of the new government.

So there will be tough competition for Maruti.

Maruti Suzuki faces healthy competition from its competitors. It has direct competitionfrom Tata Motors limited Mahindra and Mahindra, Hyundai Motor Company, Toyota

Motor Corporation, Honda Motor Corporation and others.

MAJOR COMPETITORS

Context (or climate):

Political Environment :

Indian government auto policy aimed at promoting an integrated, phased and

conducive growth of the indian auto motive industry.

Allowing automotive approval for foreign equity investment up to 100 percent,

with no minimum investment criteria.

Established an international hub for manufacturing small, affordable

passengerscars as well as tractors and two wheelers.

Economic Environment :

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The Indian economy has grown at 4.7 percent per annum last year.

Manufacturing sector has grown to 8-10 percent per annum in last five years.

Several Indian firms have partnered with global players. While some have

formed joint venture with equity participation, other have entered into

technology tie ups.

Establishment of India as a manufacturing hub, for mini, compact cars, OEMs,

and for auto components.

Social Environment :

Growth in urbanization.

Upward migration of house hold income levels.

Led to increase in market share of compact cars.

85% cars are financed in India.

Indian customers are price sensitive and put lot of emphasis on value for

money while buying the car.

Technological Environment :

With the entry of global companies into the Indian market, advanced

technologies, both in product and production process have developed.

With development or evolution of alternate fuels, hybrid cars made entry into

the India.

Few global companies have setup their R&D centres in India.

Major global player like Audi, BMW, Hyundai etc. have setup their

manufacturing units in India.

Collaboration:

Distribution is an important marketing mix. In earlier days the consumers used to

book for a car and wait for more than a year to actually buy it.

Maruti Suzuki developed a unique distribution network.

Presently the company has a sales network of 1358 centers in 1034 towns and cities,

and provides service support to customers at 2740 workshops in over 1335 towns and

cities

The basic objective behind establishing the vast distribution network was to reach the

customers even in remote areas and deliver the products of the company

In the year 2008, Maruti had near about 2,500 rural dealer sales executives, among the

total 15,000 dealer sales executives.

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Segmenting, Targeting & Positioning

Segmenting:

Based on the economic strata the Indian automobile consumer segment is divided in 5

categories:

Economy (priced less than 3 lakhs)

Mid-Range (priced between 3-5 lakhs)

Luxury(priced between 5-10 lakhs)

Premium (price ranges from 10-20 lakhs)

Super Premium (priced above 20 lakhs)

The economic segment caters to the need of the rural and semi urban population, whereas the

mid-range segment takes care to the need of all the 3 i.e. rural, semi urban and urban population.

The luxury segment takes care of the semi urban and the urban population and as there are no

car of maruti in the super premium segment so the needs of the affluent class is not fulfilled.

Targeting:

Maruti is segmented also on the basis of income groups present in the country i.e. the people

having an income of 3 lakhs per annum consider cars of economy range which are Alto 800

and the maruti omni. People having failing in the income range of 3-5 lakhs per annum consider

the mid-range segment of the maruti car A star, Swift and Celerio. The people with an income

more than 5 lakhs per annum mainly considers car in the luxury and the premium segment of

maruti cars such as SX4, Dzire and Ciaz.

Maruti faces stiff competition from Chevrolet beat, Tata indica, Fiats Punto, and Hyundai I10

in the automobile sector. As the number of yes against the maruti cars is highest as compared

to rest of the cars it undoubtedly becomes the market leader.

Positioning:

There are various taglines associated with different maruti cars which signifies the uniqueness

of each cars on its own, like the tagline for altoLets go in an Alto, for swift you are the fuel

and Men are back for SX4. These taglines completely associates all these cars. By reading the

tagline one gets inspired and becomes eager to drive the car which the whole country is driving.