Maruti suzuki Marketing Analysis Project
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The marketing mix of Maruti suzuki discussion along with Suzuki journey in the market. How research team of the company makes an analysis of the current market.
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Maruti suzuki Marketing Analysis Project
- 1. MARKETING STRATEGY OF MARUTI SUZUKI GROUP C02- ANISH KAMAT-2017132 ARKA MITRA-2017136 DEBANJAN DAS-2017143 JAIMIN S PATEL-2017150 KUSHAL D-2017156 ROHIT MONDAL-2017172
- 2. 5 C’S OF MARKETING AND PERCEPTUAL MAP FOR MARUTI SUZUKI CONTEXT CUSTOMER COMPANY COMPETITO R COLLAORATIO N
- 3. PRODUCT MIX WIDTH ALONG WITH NEW LAUNCH PLANS HATCHBACK SEDAN SUV/MUV VAN ALTO K10 DZIRE ERTIGA OMNI WAGON R CIAZ GYPSY EECO CELERIO VITARA BREZZA SWIFT S-CROSS ALTO 800 BALENO IGNIS
- 4. Service elements of Maruti Suzuki India Ltd 1. Authorized service stations 2. Maruti insurance 3. Maruti Driving School 4. Maruti True Value Out let 5. Maruti Call Center 6. Maruti on Road Services 7. A Buying Experience Like No Other 8. One Stop Shop 9. The Low-Cost Maintenance Advantage Service Blueprint of Maruti Suzuki car service Centre across India
- 5. Gap analysis Visual merchandising strategies being adopted 1. Free Test Drive 2. Point of Purchase Display 3. Auto Expo
- 6. Communication Channels 1. Personal Communication Channels TV commercials, Radio, Print Ads (Newspapers, Magazines, Banners) Digitas – Ads on top websites of Yahoo, Rediff, google, Facebook 2. Non-Personal/Mass Communication Channels Sponsorship activities – Raid De Himalaya (motorsports for amateur drivers), Roadshows Campaigns 3. Integrated Marketing Communication (IMC) Channel Step 1: Product awareness Step 2: Mass Media and less-media connected people
- 7. Distribution Channels & Flows For Maruti Suzuki Manufacturer Dealers Consumers • 1-Level of Consumer Marketing Channel: • Five Marketing Flows in marketing channel for Marathi Suzuki:
- 8. Modern Retail Practices Adopted • Maruti Suzuki use two main distinct retail channels: Maruti Suzuki ARENA, NEXA. Maruti Suzuki ARENA: • “Maruti Suzuki ARENA” is at the core of their strategy to transform their network and meet customer expectations. • This concept is different itself from rest of the marketing platform through Digital innovation integration. • Customers can now book their cars and even personalize models according to their preference on the new highly interactive website. • Modern state of art showrooms Maruti Suzuki Arena, facilitates their customers those who register on the Web site can start their journey in the showroom by entering their mobile number on the navigation web portal console and can explore the entire product range portfolio through highly responsive and interactive touchscreens. • A dedicated ‘Personalization Zone mapping’ with car configurators will enable customers to electronically personalize cars and mix-and- match accessories. • It will also provide enhanced transparency, Creation of interest and delight customers with an exciting purchase expectation, seamlessly from the digital cloud space to physical showrooms experience. Nexa: • Maruti Suzuki launched a new branded retail network sales channel called “Nexa” to an attempt to enter the high- end car segment with launch of first of its kind premium retail network. • It is network from MSIL that caters the high-end consumer who wants to go for beyond their first cars and looking for a new experience. • The main responsibility of creating Nexa managed to successfully change customer perception about Maruti Suzuki and through Nexa they successfully entered the premium car segment with some very good product offering.
- 9. Campaigns by Maruti Suzuki Shake Innovation Social Media Program – Live the moment (Targeting Young Customers)
- 10. Mobile and Social Media Strategy In 2013 Social Media strategy on IPL was launched Campaign was named “Maruti Suzuki Premier League” Game consisted of two parts- a cricket game and an online quiz Leader board showing highest individual and team scores Received 24 million+ impressions Around 3.2 lakhs clicks generated More than 2.7 lakh games played
- 11. Price across brands and major segments
- 12. Factors affecting pricing • Brand value • Styling • Fuel economy and performance • Space • Ground clearance • Comfort and safety features • After sales and service costs • Resale value
- 13. Optimizing Pricing Rural Marketing as a part of stratifying pricing Promotional Offers to optimize pricing Core competition in pricing Distribution Strategy
- 14. References KOTLER, P. & KELLER, K. 2016. Marketing Management 15th Edition, Prentice Hall Maruti Suzuki official website, retrieved from https://www.marutisuzuki.com/ on Dec 1, 2017 Somani, Shraddha (August 4, 2015), Maruti Suzuki India League Generated 24 M+ Impressions Through Social Media, retrieved from http://www.digitalvidya.com/blog/maruti-suzuki-india- league-generated-24-m-impressions-through-social-media/ on Dec 1, 2017 Integrated Marketing Communications – An Art Mastered by Maruti Suzuki (March 27, 2008), retrieved from http://rajeshaithal.blogspot.in/2008/03/integrated-marketing-communications- art.html on Dec 2,2017 Sen, Satrajit (July 31,2013), Maruti Suzuki names Digitas as its digital agency, retrieved from http://www.afaqs.com/news/story/38257_Maruti-Suzuki-names-Digitas-as-its-digital-agency on Dec 2,2017 Kumar, Dr. R. Satish; Singh, Atul Sen (May 2013), SOCIAL MEDIA AS AN EFFECTIVE TOOL OF MARKETING COMMUNICATION: A CASE STUDY OF MARUTI SUZUKI, Asia Pacific Journal of Marketing & Management Review, Vol.2 (5), retrieved from http://indianresearchjournals.com/pdf/APJMMR/2013/May/9.pdf on Dec 2,2017 Maruti Innovates on Digital to promote New Baleno , retrieved from https://www.nexaexperience.com/nexaworld-maruti-innovates-on-digital.html on Dec 1, 2017
- 15. References (continued…) Annual report of Maruti Suzuki retrived from https://www.marutisuzuki.com/corporate/investors/company-reports on Dec 2,2017 Biswas, Pradeb (Oct 24,2016), Key factors that influence car buying decisions in India, retrieved from http://overdrive.in/news-cars-auto/features/key-factors-that-influence-car-buying-decisions-in-india/ on Dec 1,2017 Bhasin, Hitesh (November 28,2017), Marketing mix of Maruti Suzuki, retrieved from https://www.marketing91.com/marketing-mix-of-maruti-suzuki/ on Dec 4,2017 Singh, S Sorendra (August 30,2017), Maruti to revamp showrooms, Business Line, retrieved from http://www.thehindubusinessline.com/companies/maruti-takes-up-rebranding-to-woo-techsavvy- customers/article9836215.ece on Dec 3,2017 Maruti Suzuki to transform retail network through “Maruti Suzuki ARENA” (August 30,2017), ET Auto, retrieved from https://auto.economictimes.indiatimes.com/news/industry/maruti-suzuki-to-transforms-retail-network-through- maruti-suzuki-arena/60290097 on Dec 3,2017 Khan, Javeid (October 7,2011), Maruti Suzuki’s Market Share Hits Ten Year Low, Motor Beam, retrieved from https://www.motorbeam.com/maruti-suzuki%E2%80%99s-market-share-hits-ten-year-low/ on Dec 4,2017 Khattar, Jagdish (February 6,2013), How Maruti Innovated Work Practices To Advantage, Business standard, retrieved from http://www.business-standard.com/article/management/how-maruti-innovated-work-practices-to- advantage-104061101116_1.html on Dec 2,2017 Julka, Dr. Tapasya; Lamba, Ajaybir Singh (March 2014), Supply Chain and Logistics Management Innovations at Maruti Suzuki India Limited, International Journal of Management and Social Sciences Research (IJMSSR), Volume 3, No. 3, retrieved from http://www.irjcjournals.org/ijmssr/Mar2014/8.pdf on Dec 1,2017 Economic Times: How Maruti Suzuki is breaking new ground in India beyond its traditional small car stronghold (July 17,2016), JD Power India, retrieved from http://india.jdpower.com/resource/economic-times-how-maruti-suzuki- breaking-new-ground-india-beyond-its-traditional-small-car on Dec 2,2017
Editor's Notes
- CUSTOMER Creating value to each and every customer by managing authorized service station service which is the major revenue generator of the company on franchise basics Launched in 2002 Maruti provides vehicle insurance to its customers with the help of National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. Two major joint ventures have been formed by the company with Citicorp Maruti and Maruti Countrywide with Citigroup and GE countrywide respectively to assist its clients in securing various loan The customers can buy, sell or exchange used Maruti vehicles with the help of these services in India. COMPANY Under this the company focuses on the product line and the goal of the company. Goals of Maruti Suzuki is to modernization of the Indian automobile industry. Fuel efficient vehicles production to manufacture huge number of vehicles, gain from foreign technology and the production of people’s car was suitable for Indian consumers and climatic conditions which will create possibility of earning foreign exchange by exporting various Maruti products and improving employment opportunities by starting various new industries in the market. By improving on research and development the company will focus on making better cars and to take help from Japanese company and try to emulate their working model and working culture. Japanese culture imbibed in the employees and unique identity to the employees and decision making. Manufacture global cars those are fuel efficient and emit lesser quantity of CO2 COMPETITORS Maruti Suzuki faces tough competition from its competitors. It has competition from Hyundai, Tata Motors, Mahindra and Mahindra, Hyundai Motors, etc. In this competing market each and every company should be aware of their competitors and their strength because consumers need changes very fast and your competitor can take advantage of this. The target customers of Maruti Suzuki are mainly middle-class family. Maruti generates mostly revenue from middle class families CONTEXT(CLIMATE) In political factors auto policy aimed at promoting an integrated, phased and conducive growth of Indian automotive industry. Allowing automatic approval of foreign equity investment of 100 percent with no minimum investment criteria. In economic sector the manufacturing sector has grown around 7.25 percent per annum in the last few years. More than 90 percent of the CV is purchased on credit. In social factors Increase in PPP will lead to increase in market share of compact cars. The entry of global companies into Indian market, advanced technologies both in product and production process have been developed. Alternate fuels, hybrid cars have made entry into market. In ecological factors physical infrastructure such as roads and bridges affect the use of automobiles. COLLABORATIONS To gain competitive advantage Maruti Suzuki took an initiative to gain competitive advantage. It developed unique distribution network. Presently the company has a sales network of 933 centers in 668 towns and cities and provide support to customers at 3053 workshops in over 1395 towns and cities. The basic objectives behind establishing this vast distribution network is to reach customers even in remote areas and deliver the product of the company. The company has created dealer territories and the concept of competitors among dealers have been brought about. PERCEPTUAL MAP According to various surveys it has been found out that price of a car and fuel efficiency has been the two most important factors that Indian consumers think of before buying a car. According to various surveys it has also been found out that 58 percent of Indian respondents feel that Maruti cars are more fuel efficient and 53 percent consumers feel that Maruti cars are more competitively priced with wide variety of color options and has a good resale value. Consumers also consider that Hyundai is the biggest competitor of Maruti Suzuki. One an average Maruti Suzuki car have an average fuel consumption of 24.5 km/litre whereas nearest competitor Hyundai cars have an average fuel consumption of 23.2km/litre. Whereas in Tata cars except for Tata Nano all other cars have 20-22 km/litre mileage with Indica having only 17 km/litre mileage. Honda and Nissan cars have a higher price compared to other cars offered by other companies, but Nissan cars have best mileage of near 30km/litre out of all the cars even ford cars are costly, but it has low fuel consumption. But in case of Honda the fuel efficiency is not that good. Mahindra cars also score poorly when it comes to fuel efficiency. On an average Mahindra car have a fuel efficiency of 18 km/ litre. Even Mahindra cars have a higher price compared to other competitors.
- If we analyze the product mix of Maruti Suzuki we will find out that the company has a product mix of 4 which are hatchback, sedan, SUV/MUV, and van. The length of the product mix refers to the total number of items in the mix. In case of Maruti Suzuki the length is 16 with a total of 16 cars to offer. The depth of product mix refers to how many variants are offered in each product lines and we see that many cars are offered with both diesel and petrol variant like Ciaz, Dzire, Ignis, Baleno. Vitara Brezza and S-Cross was offered with a diesel variant. But now the petrol variant of Vitara Brezza will be launched in 2018. Maruti Suzuki gypsy and Maruti Suzuki omni are offered in only petrol version. Where EECO is offered with petrol, petrol and CNG, Petrol and LPG. The cars which are offered with petrol and Petrol and CNG are Celerio, swift, Alto K10, Alto 800, Wagon R
- Service elements of Maruti Suzuki India Ltd Authorized service stations Maruti is one of the organization in India which has vast service network. To make sure the vehicles sold by them are serviced properly, Maruti has 2628 listed Authorized service stations and 30 Express Service Stations on 30 highways across India. Maruti insurance Maruti provides vehicle insurance to its customers by National Insurance Company like Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up with the formation of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited. This service proved as a benefit or value addition to customers and could ramp up easily. Maruti Driving School These schools are designed as per international standards, where learners go through classroom and practical training. Many international practices like road behavior and attitudes are also taught in these schools. Before driving actual vehicles, participants are trained on the Realtime simulators. Maruti True Value Out let Maruti has always served customers by providing them the facility to bring their cars to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference of the amount. They are offered loyalty discounts also. This helps them retain the customer. Maruti Call Center Maruti has proper customer complain handling cell under the Customer Relationship Management department. The CIC help Maruti rapidly build an information pool of over three million Maruti owners as well as that of its prospective customers. Maruti on Road Services It provides road round-the-clock services in various cities. A computerized call-monitoring system dispatches a mobile MOS Vento to serve the customer at the earliest. A Buying Experience Like No Other Maruti Suzuki have a sales network of 307 show rooms across 189 cities and with a workforce of around 6000 trained sales personnel to guide MUL customers in finding the right car. One Stop Shop At Maruti Suzuki, customers find all car related needs which are met under one roof. Whether it is easy finance, insurance, car exchange - Maruti Suzuki is set to provide a single-stop solution for all car related needs. The Low-Cost Maintenance Advantage Acquisition cost is not the only cost customers face when buying a car. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.
- GAP ANALYSIS Gap1:The gap arises because of the difference in the service expected by the customer and understanding of the same by the organization. This gap can exist because of the insufficient communication between the service provider and the service receiver. In Maruti the company relies on the annual customer satisfaction study which is carried out by JD powers. JD power designs the customer satisfaction survey by studying the various processes in the workshop. The various processes are clubbed under several factors which serve as the common denominator for a group of processes. Then factors are broken down into sub processes which a customer expects or observes or experiences during the course of service. After this sample customer study is carried out in the market to understand the importance customer have for each of the attribute. The feedback of the sample of the customers is then collated to arrive at the average importance weight for each of the attributes which are further clubbed to derive the weightage for each of the factors. The summation of factors further gives the customer satisfaction index. In order to close the gap, this study to assess the importance of various service factors to customer is done once in 5 years. Gap2: This is the gap between the service provider’s perception of user’s expectation and the service standards laid down by the company. Maruti has developed a system of service quality standards over the years in order to convert the understanding of customers’ expectations to processes which are implementable practically. It is difficult to measure this gap as it is difficult to directly quantify the defined processes. However, it is possible to gauge the effectiveness of the processes and standards defined. Gap3: This is the gap between the service standard and the actual Service Delivery. The gap is all about the implementation. The best of the system may have been developed but because of human factor it leads to heterogeneity and hence this gap may arise. In order to close this gap a workshop focuses on providing necessary resources like manpower, technology etc. and softer aspects of, retaining, developing and motivating manpower to get the best adherence to the system. Gap4: This gap exists because of the difference between actual Service delivery and the external communications and promises made by the service provider. This gap can be closed by: Training and familiarizing manpower on the delivery capability of the service system. Under promising to customer to lower the expectations. Educating customers to reduce the gap due to erroneous interpretation. Gap5: This is the gap which is the function of the above mentioned four gaps. From a customer’s point of view this is the most important gap which leads to the dissatisfaction. It can be taken care of by taking care of rest of the gaps. This is the gap between customers perception and expectation. Visual merchandising strategies being adopted 1.Free Test Drive Maruti offers test drive for free of cost and is the best way of demonstrating a new product where the potential buyer self-drives the vehicle and decide whether or not to buy the car. The company also provide a test drive on telephone request at the buyer’s home, so the buyers don't even have to go to the sales outlet for the drive but the company guys come to buyers’ place. 2.Point of Purchase Display Display and demonstration are of the most importance for the any of the company when competition in the market is very high. The company is bothered about this particular parameter to such an extent that dealerships are given only after the minimum space requirements and the location requirements are fulfilled by the applicants. 3.Auto Expo Maruti is consistent participant in the world-famous auto shows like Auto Expo and Geneva Motor Show. Most of its products and new launches are mainly conducted in these mega events in and out of India.
- IMC is a two-phase communication, wherein first, the product is made aware of the people who are connected to the media and then, less-media involved people are targeted. We can infer that the first phase is carried out through Personal Communication Channels and the second phase is done through Non-Personal (Mass) Communication Channels. Maruti Suzuki has constantly evolved with the latest trends in digital marketing. It has a separate department to take care of this. An article from afaqs! [1] said that Maruti had given its digital duties to Digitas India
- • 1-Level of Consumer Marketing Channel A one-level channel contains one selling intermediary, such as Dealers. The basic functions of a distribution channels are to provide a link between production (manufacturer) and consumption (Customer/End user) and to create time, place and possession utilities which constitute the added value of distribution. The intermediaries in Maruti Suzuki (Dealers) are needed because manufacturers lack the necessary financial and human resources to carry out on direct marketing. Maruti Suzuki India (MSI) sells its cars through more than 1024 dealer outlets across 467 in India. It will not be feasible for Maruti Suzuki India to buyout its dealer network and sell car throughout the country. Five Marketing Flows in marketing channel for Marathi Suzuki: Marketing Flows in the distribution channel for Maruti Suzuki is to develop a unique distribution system. The distribution system gives strength to the company by helping them to increase the reach out their product to various parts of the region, country in the markets. Flow consist of how the goods or products move across network to reach end user consumer. Maruti Suzuki have taken steps and this modern and innovative channel system will provide the vehicle in time to the customers, this unique distribution network gave a company a distinctive competitive advantage over their key competitor like Hyundai, Tata motors etc. the company established a wide network of dealers, transporters, Maruti services zones etc. across the whole country. The strategy and the main idea behind using marketing flows in distributed channel was to establish the vast distribution network to reach out the customers in urban and rural remote areas and also to cater the increasing demand from the market and to deliver the vehicle on time. The company’s major thrust has been to ensure easy availability of vehicles and delivery of it to the customer on time across the whole country.
- Maruti Suzuki use two distinct retail channels: Maruti Suzuki ARENA, NEXA. Company through these retail channel chains promises to serve and delight customers in several ways. The company claims to believes that customer can have great and good satisfactory experience to be a place where people can come and experience exciting things. Two new retails channels are added by modernizing and adopting new retail practices are Maruti Suzuki Arena and NEXA. Maruti Suzuki ARENA: This concept is different itself from rest of the marketing platform through Digital innovation integration. Customers can now book their cars and even personalize models according to their preference on the new highly interactive website. The Maruti Suzuki’s R&D team said 80 per cent car buyers in India do their primary research online before deciding on a final purchase. So, at modern state of art showrooms Maruti Suzuki Arena, facilitates their customers those who register on the Web site can start their journey in the showroom by entering their mobile number on the navigation web portal console and can explore the entire product range portfolio through highly responsive and interactive touchscreens, A dedicated ‘Personalization Zone mapping’ with car configurators will enable customers to electronically personalize cars and mix-and- match accessories. Also, relationship managers will be equipped with tablets and an app to showcase the range of products for ease of comparison “Maruti Suzuki ARENA” is at the core of their strategy to transform their network and meet customer expectations. It will have enhanced transparency, Creation of interest and delight customers with an exciting purchase expectation, seamlessly from the digital cloud space to physical showrooms experience. Team is constantly striving to make sure it will create a lasting relationship with our customers. With Maruti Suzuki ARENA, Organization has taken a critical and important step forwarding their journey of transformation in today’s modern era of digital innovation in retail marketing management” NEXA: Maruti Suzuki launched a new branded retail network sales channel called “Nexa” to an attempt to enter the high-end car segment with launch of first of its kind premium retail network. It is network from MSIL that caters the high-end consumer who wants to go for beyond their first cars and looking for a new experience. The main responsibility of creating Nexa managed to successfully change customer perception about Maruti Suzuki and through Nexa they successfully entered the premium car segment with some very good product offering.
- 1. Shake Innovation: Nexa by Maruti Suzuki, welcomed Baleno, a newly launched premium hatchback with an extremely innovative digital campaign. Baleno had a world-class innovative features and hence, it was the next big thing in the automobile industry. Through this campaign, it targeted the tech-savvy customers through ads on smartphones. Maruti used the shake feature of the mobile to let the smartphone users remove the ad but it overrode this thing by reappearing on the screen. This represented the core concept of Baleno, which is unique and innovative. This gained a lot of traction and was showcased on various big channels like ET, NDTV, gaana.com, etc. Also, people appreciated this uniqueness on twitter. Source: http://indiatoday.intoday.in/story/baleno-aces-the-digital-media-space-with-its-innovative-digital-banners/1/559423.html 2. Social Media Program and Live the moment: Ritz was one of the success stories of Maruti Suzuki. Maruti launched social media program right after it got a great response from the customers for Ritz model. Its main focus was to help connect the Ritz owners through various social media platforms like Facebook and Twitter. This was in compliment to the mass media campaign ‘Live the Moment’. This created a great buzz and it targeted the prospective customers like the friend, family members, and colleagues of Ritz owners. This played as a feeling of pride for the Ritz owners thereby increasing the sense of attachment of the customers’ feelings with their brand. This further helped in creating a deep relationship with the customers and also gained long-term loyalty. Source: https://www.socialsamosa.com/2012/06/the-anatomy-of-the-maruti-ritz-social-media-marketing-initiative/
- In 2013, Maruti Suzuki planned a social media strategy associated with IPL 6 targeting its several million fan base. The strategy was based on Digital Media Platform in order to reach out to as many people as possible. The campaign was named “Maruti Suzuki Premier League”. During the Indian Premier League (IPL) the cricket fans are too engrossed in it. Maruti pounced on this opportunity which led to a whopping 24 million+ impressions. Their strategy was not only to create banners and videos but also to create their own event which would not only attract more participants on social media for them but also to achieve maximum engagement rate. They create banners in YouTube channels and made announcements for the event. The visibility of the banners was massive which got a huge response in return.
- Price is vital for both the seller as well as the buyer as it is exchange value for goods or services with respect to money. Prices are fixed considering many factors like demand, existing competition, prices of products from competitors, manufacturing costs, legal restrictions and many more. The company provides various models in the price range of Rs. 3.25 Lakhs to Rs. 4.50 Lakhs at just a price difference of Rs. 10,000. Maruti offers five different models in this range with different versions of each car (Lx, Lxi, Vx, Vxi). Due to their pricing strategy customers have a lot of options to choose from, within their budget. Such a strategy allows businesses to specialize in a specific domain and hence exploit economies of scale.
- Brand value Along with the price, the brand of the vehicle is equally important. In our competitive market, very few automobile brands have managed to taste success. Understandably, every brand is perceived differently by buyers. Before choosing a brand, one evaluates the brand in terms of its market reputation, reliability, build quality, technological innovations, ownership issues and so on. Styling Styling is subjective and what appeals to one be might be repulsive for another. Fact is nowadays cars are used to flaunt success, make a style statement and are considered to be an extension of our personality. So prospective buyers want their car to stand out in a crowd. Fuel economy and performance It is true that every human being is unique and has different expectations from their vehicle. However, the one common bit that strings all Indian car buyers together is their obsession for good fuel economy. Yes, times are tough, money doesn't grow on trees and every penny saved is every penny earned. But then why not avoid buying a car in the first place and save a bagful of cash? Guess, we Indians love to have our own cake and eat it too. Space For existing car owners looking to upgrade, this is one of the key deciding factors. For first-time buyers as well, their buying decision is governed by how much room or interior space the car offers. If the boot is spacious and can accommodate large bags and suitcases, then it is an added advantage Ground clearance Buyers prefer to go for a crossover or compact SUV over premium hatchbacks and sedans primarily because their high ground clearance makes it easy to tackle our roads without worrying about breaking something. Comfort and safety features Irrespective of whether one is buying a smartphone, a washing machine or a car, they are keen to find out what features it offers. A longer list of features not only enhances the value for money appeal of the car. Buyers prefer features like a touchscreen infotainment system with good quality speakers and tweeters, steering-mounted audio controls, electrically adjustable wing mirrors and reverse camera. These features make one's life behind the wheel a lot easier. After sales and service costs Buying a car is only the first step. The actual ownership process begins when you start using it. That's when the wear and tear starts happening and eventually some parts will need to be replaced. Just because you can afford to buy a particular make and model doesn't necessarily mean that you can afford to run it. So after sales and service costs are extremely important in determining the price. Resale value A car is a depreciating asset and one cannot get away from that fact. However, there is still some money to be saved if one chooses wisely. In our country some makes and models depreciate much less than others. Some of the not-so-popular makes and models tend to lose as much as 25 per cent of their value in the first year of ownership. For example, Hyundai and Maruti models typically lose only 15 per cent of their value in the first year. So if your existing car hasn't depreciated much, you can give it to the dealership as a down payment for a new car.
- Rural Marketing as a part of stratifying pricing Today the village’s i.e rural peoples have not only accepted the modern way of agriculture as businesses but have also accepted modern living. Farmer is choosy in his buying. Apart from food and consumable items, he is interested in buying radios, T.V sets, Refrigerators, bicycles, wrist watches and car. The per capita income of the farmers is on the increase and the manner in which they spend their disposable income has also changed. Today the rural market is not passive. It is vibrant and growing at a faster pace. The expanding rural market is important to the growth of economic development of India. With the change in scenario, the marketing focus is also changing towards villages: “Go rural” is the slogan of marketing professionals, gurus. Promotional Offers to optimize pricing As a part of promotion strategy and to increase the sales, Maruti Suzuki launched various offers for its customers through its authorized dealers. In this offer, before declaring the budgets, Maruti Suzuki dealers launched “Khulja Sim-Sim offer” in which, dealers highlighted that, the customer who will buy the Maruti car before declaring the budget will get assured gifts under this offer. The company dealers offered assured gifts to its customers like Refrigerator, Washing machine, LCD screen 22”, Micro Wave, Digital Camera, Titan watch (Pair), Suitcase, DVD player, Mobile, Video Game, Dinner Set, Maruti Genuine Accessories worth Rs.1500 and Maruti Genuine Accessories worth Rs.10 Core competition in pricing Price is the exchange value of goods or services in terms of money. The price is a matter of vital importance to the buyer and the seller. Prices are important economic regulators. When a firm sets a price for its goods, it has to consider many factors- demands, existing competition, legal restrictions. Maruti caters to all segments and has a product offering at all price points. Maruti gets 70 % business from repeat buyers who earlier had owned a Maruti car. Maruti Suzuki’s pricing strategy is to provide an option to every customer looking for up gradation in his car. Distribution Strategy Distribution of goods and services plays an important role in the sales system. Distribution system varies from company to company and region to region. The distribution system gives strength to the company by helping to increase the reach of the product to various parts of the region, country or even in foreign markets. An effective distribution system helps in making available goods in the right quantity at the right time when they are required.