Maruti sales and distribution narayanan palani 009
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  • Incentives : Setting up supplier park with excellent onsite infrastructure, offering subsidized well located and industrially developed land, sales tax concession,Reliable power supply generated by Maruti Suzuki.76% of 246 suppliers are located within 100 km of radius.Pushing local component suppliers to adopt JIT Maruti Suzuki Formed a JV with ‘Futuba Industrial Co. Ltd’ .Futuba is the largest manufacturer of Exhaust System Components in Japan.(FMI Automotive Components Ltd. with equity participation from Futuba and Company
  • Company reached a capacity of one million cars annual production in 2008.Operations : 4 car plants across 2 locations,2 engine plants,12 models with more than 200 variantsPMS : Production Management Systems (People driven and ensures involvement of all levels, a system which ensures ownership,a system which brings in stdardization of systems and processes, A system which ensures sustainability)
  • 360 degree experience : Anticipate and address customer’s needs and preferences in all aspects and stages of car ownership.The sales of spares,accessories and Automobile related services such as insurance nd finance serve as additional sources of revenue for dealers and attract customers to outlets and promotes sales of cars.
  • Extended warranty program : Maintain dealers contact with the customer and increase revenue thru sales of spates,accessories ad automobile related services.

Transcript

  • 1. Narayanan Palani(009)1
  • 2. Background of Maruti Maruti Suzuki India Limited ("Maruti") is the countrys largest passenger carmanufacturing company with a market share of 46%. The company has two manufacturing facilities located at Gurgaon andManesar, south of New Delhi, India It offers 15 brands and over 150 variants It reported consolidated revenues of $4.8 billion in 2010 and manufactures carsin all segments - passenger cars, hatch backs and sedans The company is currently making 1.2 million vehicles annually and it hastarget of expanding to 1.75million by the year 20132
  • 3. What all goes into maintaining the numerouno position? Maruti always creating favorable conditions for customers to beable to come and buy our products. It have a specialized focus on different markets and are always thefirst company to tap every single source for incremental sales. It develop portfolio catering to various segments. Like Maruti haveseen that one-third of the customers are fresh buyers. It is a tough task to get them to our showrooms and persuade themto buy. they offer compelling reasons for them to buy now.-R.C.Bhargava3
  • 4. 4
  • 5. Distribution Channel ExpansionPlan(Next 5 years) Networkexpansion isstrategic toMaruti’s businessand it wouldcontinue to focuson it. Market target todouble it’s salesnetwork in nextfive years, in linewith the5
  • 6. Dual-fuel strategy to increasesales WagonR Duo (the LPG variant) is a successstory! Reason: Opted for LPG in place of the much common andcheaper fuel CNG as a long-term strategy to havea all India presence. While CNG is available in few number of cities,LPG has a wider availability and is a moreacceptable fuel option, while retaining theadvantages of petrol.Source:http://economictimes.indiatimes.com/features/auto/the-man-behind-marutis-sales/articleshow/3122060.cms6
  • 7. Ongoing activities to increasesales: Maruti Suzuki continues to enhance thecustomer experience through its sales outletsand targets to take it to the next level. In this endeavour, the company hasundertaken a unique initiative of upgrading itsthree year old showrooms under project NavNirman. The objective of Nav Nirman is to providecustomers uniform buying experience acrossthe country.7
  • 8. Positioning cars to increasesales:8
  • 9. March 2012 Latest SalesFigures:Source: http://www.marutisuzuki.com/Maruti-Suzuki-Sales-in-March-2012.aspx9
  • 10. Latest Report(2nd April 2012) The company sold a total of 125,952 units inMarch 2012 reflecting a growth of 3.3 % overMarch 2011. This includes 13,228 units forexports, a growth of 14.7%. The total sales in March 2012 are the highest evermonthly sales in the Companys history. Theprevious high in total sales was in March 2011 at121,952 units. The domestic sales in March 2012 are also thehighest ever monthly domestic sales inCompany’s history!Source: http://www.marutisuzuki.com/Maruti-Suzuki-Sales-in-March-2012.aspx10
  • 11. SALES11
  • 12. DISTRIBUTION12
  • 13. Stages of the Life Cycle for Maruti Esteem13
  • 14. Sales Strategy(Learnings from Maruti’s previous years successstory) Maruti offer a combination of schemes to maintain aconsistent growth in sales. One of the most interesting one is the pan India campaign -Mera Sapna Meri Maruti - targeting rural markets andpanchayat functionaries. We have a strong brand value there and vast chunk ofprospective car buyers prefer Maruti products. While the employee referral scheme called Lalkaar, Wheelsof India scheme for state government employees, First ClassOffer for railway employees, vendors scheme Hum Sath-Sath Hai and Power Deal for NTPC employees have alsobeen successful in generating incremental sales in the past.Source:http://economictimes.indiatimes.com/features/auto/the-man-behind-marutis-sales/articleshow/3122060.cms14
  • 15. • Inputs : Raw materials and purchased components.• Raw material : Rubber, glass, steel, plastic, aluminium,• Components : Tyres, windshields, and airbags.• Just In Time supply logistics.• Comprehensive supplier development program.• Incentives for far away suppliers to move near itsplants.• Supplier JV’s with local suppliersInboundLogisticsOperationsOutboundLogisticsMarketing andsales ServicesVALUECHAIN15
  • 16. Inbound Logistics Operations Outbound LogisticsMarketing andsales Services16
  • 17.  Jointly developed special Auto Wagons to support highcapacity, high speed and safer transportation. To support exports ,Roll-On-Roll-Off car terminal atMundra sea port in partnership with MPSEZL(MundraPort and Special Economic Zone Ltd.)InboundLogisticsOperationsOutboundLogisticsMarketing andsales ServicesVALUECHAIN17
  • 18.  Offer Customer new products and services that Reduce customer’s cost of ownership 360 degree customer experience Aggressively cutting prices to provide cars atlow prices. Largest network of dealers amongst carmanufacturersInboundLogisticsOperationsOutboundLogisticsServicesMarketing andSalesVALUECHAIN18
  • 19.  2 year warranty at the time of purchase Extended paid warranty program under the brand“Forever Yours” for the third and fourth years 24 hour mobile service under the name “MarutiOnroad Service” Service stations on highways in India under thebrand “Express Service Stations”InboundLogisticsOperationsOutboundLogistics ServicesMarketing andsalesVALUECHAIN19
  • 20. 20
  • 21. Attractive Exchange Offers Why exchange with Maruti Suzuki? Best Price for your car, transparent evaluation Best deals on new cars Exchangebonus of Rs.5000 Zero down payment Low EMI Clean Documentation21
  • 22. Sales Forecasting Method atMaruti Suzuki:22
  • 23. Educating Customers: The company has made an educational AudioVisual film for customers. The film communicates those factors that helpin increasing fuel efficiency. The film also explains the test proceduresadopted to arrive at the fuel efficiency of a car.23
  • 24. Target SettingMission 255 inMarch 201224
  • 25. Territory Allocations Rural India Outlets Target in the next twoyears:45025
  • 26. Dealers & Distributors-Mumbai Spectra Motors Pvt. Ltd Sai Service Vittesse Fort Point26
  • 27. 27
  • 28.  Sales People Target Setting TerritoryAllocations28
  • 29. 29
  • 30. Unique features in Distribution Connectingdistributors thoughtransportationchannels forequipments like Bodycolored bumper,Green tinted glass etc. Eg Alloy Wheels30
  • 31. Customer Service31
  • 32. Advertising & CommunicationStrategy As part of the restructuring exercise, Maruti also laidemphasis on its advertising strategy to help maintain itsposition as a market leader. The advertising campaigns of Maruti included TVCs, print andradio ads, outdoor promotions, point of sale and mobilepromotions. The company also organized different promotional events toattract prospective consumers. Maruti also offered special schemes for specific professionaland income groups. The ad campaigns of Maruti emphasized on various aspectsof its cars, including fuel efficiency, space, looks etc, tostrengthen its brand image, and to promote its widespreadnetwork and services.32
  • 33. ThankYou!33