Maruti Udhyog Limited

8/14/2019 Maruti Udhyog Limited

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INDIAN FOUR WHEELERINDUSTRY

De-licensing in 1991 has put the Indian automobile

industry on a new growth track, attracting foreign

auto giants to set up their production facilities in the

country to take advantage of various benefits itoffers.

This took the Indian automobile production from 5.3

Million Units in 2001-02 to 10.8 Million Units in 2007-

08.

In 2006-07, the Indian automotive industry provided

direct employment to more than 300,000 people,

exported auto component worth around US$ 2.87


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INDIAN FOUR WHEELERINDUSTRY


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MARUTI UDYOGLIMITED Maruti Udyog Limited (MUL) was established in Feb 1981

through an Act of Parliament.

A license and a Joint Venture agreement were signed with theSuzuki Motor Company of Japan in Oct 1983, by which

Suzuki acquired 26% of the equity and agreed to providethe latest technology as well as Japanese managementpractices.

Phase wise historyTwo phases pre liberalization.

1983-86 & 1986-92Two phasesTwo phases post liberalizationliberalization

1992-97 & 1992-20021992-97 & 1992-2002

Full privatization in 2003Full privatization in 2003


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KEY STRATEGIC INITIATIVESBY MARUTI

Turnaround Strategies Maruti Followedv 84% of the market share till 1998

v Maruti complete a Rs. 4000 mn expansion project whichincreased the total production capacity to over 3,70,000vehicles per annum.

v launch new models for different segments of the market. In itsredesign plan, Maruti, launches a new model every year,reduce production costs by achieving 85-90% indigenizationfor new models.

v revamp marketing by increasing the dealer network from 150

to 300 and focus on bulk institutional sales, bring downnumber of vendors and introduce competitive bidding.

v Shift in focus from sell what we produce to "marketing andcustomer focus".


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Current StrategiesFollowed By MUL

PRODUCT STRATEGY


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Current Strategies FollowedBy MUL

Historious car is Maruti 800 Change ur life

Omni 1984, Fits all

Gypsy 1985 King Wagon-R 1999,For the smarter race

Alto 2000, Currently the largest selling car in India.Lets go

Versa(2003) The joy for travelling together

Zen Estilo(2005) Shape ur world

Swift (2005)

BRANDS OF MARUTI SUZUKI


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Maruti Suzuki SX4 (May 2007) Men are back

Suzuki Grand Vitara Sports Utility Vehicle - July 2007.

Imported Play it your way Maruti DZiRE Sedan Version of swift - March 2008

The heart car

Suzuki Alto (Sold in India as the Maruti A-Star)

Launched in 2008 December. Stop @ nothing Suzuki Splash (2009)

Ritz Live the Moment (2009)

Eeco Happiness Family Size (2010)

BRANDS OF MARUTI SUZUKI


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PRODUCT POSITIONING & TARGETING:-

v

v

v

v

v

v

The Gypsy targeted the paramilitary forces and the police.

This resulted in complete control of Maruti over themarket .

A special cell was made to make direct dealing of Gypsy withthe government & the army.

v

Product Line Products

A1 800

A2 Alto, Zen ,Wagon R, Swift, A-star

A3 DZiRE, Sx4

SUV Vitara, Gypsy

C - Class Omni, Versa, Eeco


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Targeting: - Selective Specialization

MARKET

PRODUCT

URBAN SEMI-URBAN RURAL

A1 Yes Yes

A2 Yes Yes Yes

A3 Yes Yes

SUV Yes

C-Class Yes Yes Yes

INCOME GROUP

PRODUCT

Rs. 2-3

Lacs./Annum

Rs. 3-5

Lacs./Annum

Rs.5>

Lacs./Annum

A1 Yes

A2 Yes Yes

A3 Yes

SUV Yes

C-Class Yes Yes Yes

Targeting: - n the basis of income Group


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Positioning

PRODUCT Target Customers Benefits Value Proposition

A1 A consumer who wantscar.

Durability andPerformance

A car which givesDurability in low cost.

A2 A consumer who wantsSmall & spacious car.

Spaciousness . A spacious small carwithout extra cost.

A3 A consumer who wantsmore comfort car

Design, Style andLuxury.

A car design with styleand luxury.

SUV Lifestyle Orientedconsumers. Rigidness, Luxury andComfort . A Vehicle that providesthe luxury and Comfortof a car.

C-Class A consumer who wantscar for commercial use

More spacious car. A big car withreasonable price

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PRICING STRATEGY

Maruti caters to all segment and has a product offering at all

price points.

Their pricing strategy is to provide an option to every

customer looking for up gradation in his car. Their sole

motive of having so many product offering is to be in the

consideration set of every passenger car customer in India.

Here is how every price point is covered.

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PRICING STRATEGY

SR.No BRAND VARIANTS PRICE IN SURAT (Rs.)

1 GRAND VITARA XL7 16,97,000.00

2 MARUTI ZEN ESTILO LXi 3,54,636.35

VXi 4,11,748.87

LX 3,24,754.73

VX 5,39,000.00

3 MARUTI SWIFT LXi 4,17,337.61

VXi 4,68,035.99

ZXi 5,30,409.82

4 MARUTI WAGON-R LX 3,26,844.49

LXi 3,71,522.83 AX 4,45,825.29

VXi 3,75,063.09

VXi ABS 4,03,907.22

5 MARUTI GYPSY ST 5,14,871.55

HT 5,33,808.07

VXi 5,37,226.73


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PRICING STRATEGY

10 MARUTI RITZ LXi 3,01,285.36

ZXi 4,95,822.20

VXi 4,57,751.05

11 MARUTI SX4 ZXi+ AT 8,55,034.07

ZXi+ MT 7,55,766.12

VXi 6,85,251.94

12 MARUTI SWIFT Dzire LXi 4,86,214.04

ZXi 6,25,215.72

VXi 5,30,821.3013 MARUTI OMNI STD 2,27,473.32

AMBULANCE 2,58 ,270 .94

CARGO 2,02,402.89

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PLACE STRATEGY

v600 New car sales outlets covering 393 cities.

v265 Maruti True Value outlets spread across 166 cities.

v2628 Maruti Authorized Service Stations, covering 1220

cities.

v Tie up with Adani group for exporting 200,000 units through

Mnudra port Gujarat

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PLACE STRATEGY

v400 new car sales outlets in next three years.

v150 new true value shops in next three years.

v1200 new Maruti Authorized Service Stations in next three

years.

vTie up with other distributors for Exports.

v2,628 The number of workshops that provide customers with

maintenance support in 1220 cities.

vMaruti Call Center.

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PROMOTION STRATEGY

vAdvertising

TV Ads

Print Ads

Radio Ads

v Information Advertising

BTL - SponsorshipsTV shows - Indias Got talent

Place Advertising Bill boards

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PROMOTION STRATEGY

vSales Promotions Product warranties

Premiums (gifts)Trade shows

vMaruti and CRM

by launching a website for the customers in the year 1998& Maruti Auto Card

vMaruti True Value Out letvMaruti Call Center

vMaruti insurance


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COMPETETIVE STRATEGIES

To gain back its lost share Maruti launched Zen ,Alto andWagonR.

During 2003 and 2004, MUL visualized and implemented astrategy for its dealers to increase their profitability levels inview of increased competition.

'2599' offer-In 2004, MUL introduced the '2599' offer underwhich a consumer could buy an M-800 by paying an EMI of Rs2,599 only, for a period of seven years.

Alto was launched keeping in mind that it will take over Maruti800 market in future.

Maruti is interested to take on Nano, with a stripped-downversion of Alto, instead of the 800 model.

This is mainly because Alto is compatible with the BharatStage-IV norms for CO2 emissions and other criteria.


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COMPETETIVE STRATEGIES

The launch of Swift and phasing out Zen was a strategic move.

The major reason behind this decision was cannibalization ofWagon R and Swift due to overlapping of price band.

Maruti positioned swift to knock out Getz, it does! Because of

swifts competitive pricing and good quality. Maruti is offering Rs. 3000.00 more margins to dealer on the

sale of Wagon-R as compared to Zen. This is to let dealerpush Wagon R instead of Zen.

After rolling out refreshed version of Estilo, Versa, SX4, Maruti

is now gearing up to upgraded versions of Alto, WagonR andSwift that may be cheaper than the existing models, to gearup against global players like Toyota, Honda and Volkswagenthat are planning small car launches in India.


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CONCLUSION

In segment A1 price always plays a vital role MSL was thesole manufacture till 2000, Maruti 800 was the hot seller till2005.

In segment A2 growth of automobile was 57.6% where Maruti

captures a share of 69%. Its products like alto and Zen aretwo role models with these segments.

In A3, SUV and C Class segment Maruti has number ofcompetitors and has a less growth. In this segment alsoMSL lack of more models than other company.

Taking the sale trend in to account MSL sold a record numberof vehicle 7, 14,842 in 2007-08 including 53,024 units ofexport. In 2007-08 it record a turnover of INR 145,922million which rose to 178,603 million in 2007-08 showing agrowth of 20%.


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BIBLIOGRAPHY1. www.marutisuzuki.com

2. http://www.marutisuzuki.com/prices.aspx

3. http://www.marutisuzuki.com/showroom.aspx

4. http://www.icmrindia.org/casestudies/catalogue/Marketing/Market%20Expansion

%20Strategies%20of%20Maruti%20Udyog.htm

5. http://www.wheelsunplugged.com/ViewNews.aspx?newsid=5340

6. http://economictimes.indiatimes.com/archive.cms?year=2010&month=2

7. http://business.mapsofindia.com/automobile/car-manufacturers/

8. Kiran Motors Limited

New Opera House, Nr. Centre Point,

Near Jain Gurudev Petrol Pump,

Ring Road, Surat.


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Thank YouThank You


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Maruti Udhyog Limited

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