Maruti market expantion startegies of maruti


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Maruti market expantion startegies of maruti

  1. 1. CASE STUDY ON MARKET EXPANTION STARTEGIES OF MARUTI UDYOG<br />Presented by:<br />Ajay Kumar<br />Munish Kumar<br />
  2. 2. <ul><li>In 1982, Government of India entered into a joint venture with Suzuki motor corporation of Japan
  3. 3. Plant was established at Gurgaon in Haryana</li></li></ul><li><ul><li>Launched its first model M-800 on December14, 1983
  4. 4. Maruti Gypsy in 1985
  5. 5. SMC’c share increased from 26% to 40% in 1987
  6. 6. Maruti 1000 launched in 1990
  7. 7. Liberalization of Indian economy in 1991
  8. 8. Maruti Zen launched in 1993
  9. 9. Delicencing of passenger car industry in 1993</li></li></ul><li>Maruti 800<br />
  10. 10. <ul><li>Paved way for global players like….</li></li></ul><li><ul><li>Maruti esteem launched in 1994, production reached one million cars
  11. 11. Difference of opinion between GOI and SMC regarding appointment of MD in 1997
  12. 12. Production reached 2 million cars in 1997
  13. 13. Maruti baleno and wagonR launched in 1999
  14. 14. Alto Lx and Alto Vx1 launched in 2000, production reached 3million</li></li></ul><li><ul><li>Suzuki takes over control in Maruti Udyog by hiking its stake in the company from 50% to 54.2%, Maruti Udyog becomes the subsidiary of Suzuki in 2002
  15. 15. Alto declared Best selling car in India in 2004
  16. 16. Unveils Versa Variant At Rs 3.27 Lakh in same year
  17. 17. Launched “2599’, &“Teacher plus” schemes to increase sales of M-800</li></li></ul><li>COMPETITIVE FORCES IN INDIAN PASSENGER CAR MARKET<br />
  18. 18. SWOT Analysis of Maruti Udyog<br />
  19. 19. TOWS MATRIX<br />
  20. 20. GENERIC COMPETITIVE STRATEGIES<br />Lower cost Differentiation<br />Broad target<br />Narrow <br />target<br />
  21. 21. TURN AROUND STRATEGIES<br /><ul><li>In wake of diminishing profits and market share Maruti initiated strategic responses with India’s liberalization process: </li></ul>This can be observed from mission statement of Maruti<br />1984: “Fuel efficient vehicle with latest technology”<br />1997: “Creating customer delight and shareholders wealth” <br />TO<br />
  22. 22. BCG Matrix with respect to Maruti models<br />
  23. 23. Q1:What was the rationale for MUL to adopt promotions like “2599”, “Teacher plus”, and “Do se char” offers? Do you think MUL’s sales promotion campaign was effective?<br />Rationale:<br /><ul><li> Because of focus strategy Maruti want to convert two</li></ul> wheelers owners to four wheeler owners<br /><ul><li> Want to penetrate at the bottom of the pyramid</li></ul>Campaign effectiveness: Not effective<br /><ul><li> M-800 was mini segment and people getting Alto compact</li></ul> segment car by just paying little extra<br /><ul><li> M-800 on the declining stage of product life cycle
  24. 24. Unattractiveness among people due to old design where as </li></ul> Alto was present with contemporary design<br />
  25. 25. Sales of M-800<br />Sales of Alto<br />
  26. 26. Q2:Discuss the implications of MUL’s premium compact car ‘swift’ priced at Rs. 3,87,000 for its competitors. Also, given that its compact car, wagon R, is available in the same price range, discuss the steps MUL must take to prevent the cannibalization of its sales.<br />A:<br /><ul><li>Swift was launched with price competitive strategy
  27. 27. Direct competition with Hyundai Getz (Rs. 4,50,000)
  28. 28. As both brands are known for their value price offering Swift</li></ul> definitely has an edge over its direct competitor Getz due to:<br /> - Brand image & strong service centre <br />Steps to prevent cannibalization:<br /><ul><li>Focus on advertising based on benefits to differentiate themselves in the market.
  29. 29. Swift was a hatchback model so MUL should position swift as an next value product in between compact and mid size car</li></li></ul><li>Q3: MUL prides itself in providing the lowest priced car(M-800) to its customer, Tata motors intends to launch the Rs. 1,00,000 car by 2008. What, in, your opinion, would be the implementation of this launch for MUL?<br />
  30. 30. A: Implications for MUL:<br /><ul><li>It will cannibalize the sales of M-800
  31. 31. If the car has contemporary design and Euro 4 norms it will the only car available in mini car segment as Maruti has euro 3 norms
  32. 32. With this Tata will penetrate towards the lower segment of value pyramid which is providing maximum market share to Maruti</li></ul>Steps to counter Nano effect:<br />New contemporary design should be launched<br />Reduce the engine capacity to make it price effective and milegeable<br />
  33. 33. Q4: Refering to the availability of pre-owned cars, an industry analyst said, “If the customer get a santro or wagon R for the prices of an 800, why would he prefer the small car?” In light of this statement, how can MUL differentiate its promotional campaigns between its new and pre-owned/used car market?<br />A:<br /><ul><li>Maruti should launch advertising campaign to arouse feeling in you or reminding your dreams of a new car
  34. 34. It should give a customized car
  35. 35. Should introduce peace of mind concept in advertisement campaign
  36. 36. It may use promotional campaign to reduce perceived risk in the mind of customer regarding pre-owned cars
  37. 37. promotional campaign which enlighten warranty given in pre-owned cars</li></li></ul><li>THANK YOU….<br />Any Suggestions?<br />KIZASHI<br />