Product Life Cycle of Maruti 800

1. PRODUCT LIFE CYCLE OF
MARUTI 800
PRASENTED BY-
Bhavana Verma
Chandresh Upadhyay
Shreya Wadhwa
Sourabh Parihar

2. PRODUCT LIFE CYCLE
The concept of product life cycle (PLC) concerns the life of a product in
the market with respect to business/commercial costs and sales
measures.
The product life cycle proceeds through multiple phases, involves
many professional disciplines, and requires many skills, tools and
processes. PLC management makes the following three assumptions
A. Products have a limited life and thus every product has a life cycle.
B. Product sales pass through distinct stages, each posing different
challenges, opportunities, and problems to the seller.
C. Products require different marketing, financing, manufacturing,
purchasing, and human resource strategies in each life cycle stage.

3. MARUTI 800
 MARUTI UDYOG LIMITED was established in 1981
 Largest automobile company in India located at Gurgaon, Manesar.
 Portfolio of 13 brands and 150 variants like,MARUTI800, ALTO, WAGANOR,
SWIFT,SX4 AND SWIFT DZIRE etc.,
 Listed in BOMBAY STOCK EXCHANGE &NATIONAL STOCK EXCHANGE.
 Honored with “METI” award from Govt. of Japan for promotion of
Japanese brand in India.

4. PLC - INTRODUCTION STAGE (1983-
1986)
• MARUTI UDYOG LIMITED Launched first “MARUTI 800”, in Indian market on
December 1983.
• Its a collaboration between INDIAN STATE owned MARUTI and SUZUKI MOTOR
JAPAN.
• Cheapest car in the Indian market.
• Also exported to countries like South Asia and South American market.
•First car was sold to Harpal Singh for Rs.48,000/- as a lucky owner and received keys
from Prime Minister of India INDIRA GANDHI.

5.  MARUTI 800 comes up with new features like , AC version and Music System in the car.
 Sales increased by 852 units to 20,269 units and reached up to 31,314 units.
 First export began in 1987.
 Sales soared from about 63,763 units to about 1,89,061 units in 1996.
Strategies adopted:-
 Customer care has became a key element for Maruti,
 Increased Maruti service stations every 25 kms on a highway,
 For increasing its market share it launched new car models,
PLC- GROWTH PHASE (1986-1996)

6. PLC- MATURITY PHASE (1997-2002)
 In 1997, MARUTI introduced a new car with Jelly Bean shape. However it was not
so successful in the market.
 Launched revamped version of MARUTI 800 EX, with new engine, shock absorber,
coil spring suspension, but this model lost their sales gradually .
 Entry of competitors like General Motors, Ford, Tata.
 In 2002, MARUTI launched “ALTO”, with bigger stylish version of the Maruti 800.
 Introduced LPG & CNG variables, called Maruti 800 Duo with new face lifts like
newer grille and clear lens head lamps

7. STRATEGIES ADOPTED AT THIS
STAGE :
1. Pricing strategy:– category to all segments ,car priced at Rs.1,87,000/- is the lowest
offer on the road.
2. Developed different revenue streams in the form of Maruti insurance, Maruti
finance.
3. Repositioning of Maruti products.
4. Introduced new facelifts model based on market responses or consumer feedbacks
or the competitors moves.
5. Customer centric approach: call centers bring Maruti to closer to its customer.
6. Committed to motorizing India Partnership with STATE BANK OF INDIA organized
finance to small towns enable people to buy cars in Rs.2599/- scheme

8. PLC- DECLINING STAGE (2002-2004)
1. Due to heavy competition from competitors like Hyundai i10,
Maruti Suzuki Swift, Chevrolet Spark, sales of Maruti 800 was
drastically decreased.
2. The sales are went down from 1,51,976 units in the year
2000 to about 69,553 in 2007.
3. Buyers are attracted by high end luxuries small cars like
NANO .
4. In 2008-2009 experienced sales of only 1,288 units.
5. Major competitor Tata Motors launched Tata Nano dmaller
car yet offer more space than the Maruti 800
6. Sales are continued in semi urban and rural areas till today.

11. REPOSITIONING THE
PRODUCT
After a drastically decline in the sales of
Maruti 800 , MUL had repositioned its
product Maruti 800 with ALTO 800 .
ALTO 800 is designed with latest features
of more space, speed acceleration, power
steering etc.,
Now ALTO 800 is available in Indian
market for the price of 2.5 lakhs(approx).
Alto 800 was introduced into the market
on October 16,2012