BCG matrix from public domain information and recommendation for improving business

1. Study on Maruti Suzuki SBUs and Recommendations
By:
Paritosh Dhondiyal

2. Maruti Suzuki Study
Following are the key considerations to select MSIL for Study
• Market leader since decades in Passenger vehicle (PV) segment in India . Founded in
1982
• Current Market share in PV segment=50% despite of stiff completion from home grown
and foreign players.
• It is said in passenger cars others compete for position 2, 3, 4 and other positions in
the market.
• High returns to shareholders is consistent.

3. Approach Followed
Identification of
MSIL SBUs
Understanding
each SBUs and
Product
Portfolio
Analysing SBU
and Market
trends
BCG Matrix SBU
level
Understanding
core Product
(MSIL Models)
and market
trends
BCG Matrix
Product level
Recommendations
For further
marketing growth
Open the thinking Hat!!!!

4. S
U
B
S
I
D
A
R
I
E
S
Maruti Suzuki
S
A
L
E
S
C
H
A
N
N
E
L
S
Nexa
(Premium)
Arena
(entry to mid )
Commercial
True value
(used car)
P
R
O
F
I
T
C
E
N
T
R
E
S
Maruti Finance
Maruti Insurance
Maruti Suzuki
Genuine
Accessories
Maruti Suzuki
leasing
Maruti Suzuki
Genuine Parts
Institutional
customers
JJ Impex Delhi
Pvt. Ltd.
**Auto ancillaries like Jay Bharat Maruti are also part of profit centres of MSIL and are a part of balance sheet , however only key
Final customer facing business are identified for study.
MSIL SBUs identified ( 3 Sales Channels , 6 Profit centres , 2 Subsidiaries)

5. S-cross Ciaz Ignis Baleno
Sales channel NEXA: premium ( primary focus sales and service experience, secondry products)
Celebrity endorsement
• Started in July 2015
• Class , beauty , balance , aesthetics
• Premium events , promotion
• Premium showrooms
• Dedicated relationship manager
• Priority service
• Safety ,convenience ,comfort
features like dual airbags ,ABS
Nexa Blue :A signature shade created exclusively for
Nexa
Its
Premium
Not
middleclass

6. Premium Arena showrooms

7. Alto range Swift Wagon
R
Celerio
Sales Channel Arena : Value for money , economy products Primary focus : Products
Celebrity endorsement
Dzire Ertiga Brezza Gypsy
Omni Eeco
Hatch
Sedan
MUV
SUV
VAN

8. Basic Lounge and café in Arena

9. Sales Channel Commercial: Business and Basics needs addressed in Cargo Business
Pragati Loyalty Program
• New Business in Commercial vechicle space
started 2017 because of growing Last mile CV
market in India,
• Last mile cargo transport business dominated by
Tata and Mahindra
• Super Carry is only product sold through Non
car dealer network that is still under rampup
• Silent promotion (no electronic media , no
Celebrity promoter)
• Stage wise regional launch done for the product
• Capitalisation of Brand Maruti

10. Maruti Finance
Maruti Insurance Maruti Suzuki
Genuine Accessories
Maruti Suzuki
Genuine Parts
Integration
Of business
opportunities
for vehciles sold
through sales
channels
Convinence
Convinence
Trust
Convenience
Trust
Convenience
-All under one roof i,e. sales channels
- With Single frontend facing customer ,
multiple backend serving customer
-No specific sales promotion
Profit centres : Maruti Finance , Maruti Insurance , Genuine accessories , Genuine parts

11. Profit Centre Maruti Suzuki leasing :
Convenience at doorstep
Hastle free acquisition and mainainence
• car leasing and fleet management service from Maruti Suzuki,
• specially designed for entrepreneurs and corporate entities.
• offer all-inclusive services like vehicle acquisition, insurance, maintenance and value
added services giving customers an end- to-end experience.
• For Corporate and Retail customers
Retail customers: small and medium enterprises
and self employed professionals

12. Subsidiary True value : its trust (used /refurbished vehicles )
• Verified car History
• 376 Quality checks
• Hassle free
Documentation
• Find out at web ,Buy at
store
• 1 yr warrenty
Celebrity
endorsement
Used Car business :
• Market growing at 50% growth rate ( source : Times of India
8,Nov,2018)
• Maruti Biggest Organised player in the business

13. Subsidiary J Impex Delhi Pvt. Ltd: Service
: Business of repair and service of Maruti automobiles,
:Sale of spare parts and accessories of motor vehicles and sale and purchase of automobiles.
Maruti Udyog is setting up a chain of model workshops across the country to be a one-stop shop
for maintenance, service, spares, accessories and insurance-related services and attention to
warranty claims, under the brand name of Maruti Service Masters (MSM).
*At present, there are three MSM outlets in the country, with two in Delhi and one in Chennai.
* The decision to set up a network of MSM outlets across the country was taken after the good
response to the first MSM outlet in Delhi.

14. SBU MSIL Market presence Overall Market trend Remarks BCG Matrix conclusion
Arena Leader Growing
Almost all products are leader.
Segments is growing
Star
Nexa Trailing Growing Only Baleno is leader Question Marks
True value Leader High Growth Maruti Suzuki is leader Star
Commercial Trailing Growing MSIL has just started in this business Question Marks
Maruti Finance Leader Growing
Finance Arm , linked with car
sales.Although volume is increasing but
market share of maruti cars is going down
from 60% to 50%.
Cash cow
Maruti Insurance Leader Growing
Insurance Arm , linked with car
sales.Although volume is increasing but
market share of maruti cars is going down
from 60% to 50%
Cash cow
Maruti Suzuki Genuine Accessories Leader Growing
MSIL has focussed on this business, no
data awailabile from authentic sources
about share.But is contributing to bottom
line
Cash cow
Maruti Suzuki Genuine Parts Leader Growing This business is linked with car sales Cash cow
JJ Impex Solutions Leader Growing This business is linked with car sales Star
Maruti Suzuki leasing
No concrete information
In public domain
Growing
No authentic data for comparing the
market position, but this is growing
business
Question Marks
Maruti Suzuki institutional Sales
No concrete information
In public domain
Steady
No authentic data for comparing the
market position.Business growth is
stagnant
Dog
Maruti Suzuki SBUs Market presence , market trend and BCG matrix placement

15. M
A
R
K
E
T
G
R
O
T
H
M A R K E T S H A R E
LOW
HIGH
HIGH
MARUTI SUZUKI SBU LEVEL BCG MATRIX
Nexa
commercial
Maruti Suzuki leasing
Arena True value
JJ Impex Financial
Accounts
Question Marks Stars
Institutional sales
Dogs
Maruti Finance
Maruti Insurance
Maruti Suzuki
Genuine Accessories
Maruti Suzuki
Genuine Parts
Cash Cows

16. Segment wise position of Maruti models
*Data Source = Team BHP January 2019 Sales trends

17. Segment wise position of Maruti models
*Data Source = Team BHP January 2019 Sales trends

18. Segment wise trends for last 3 yrs
0
5000
10000
15000
20000
25000
30000
35000
40000
B1 segment trend
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
B2 segment trend
0
10000
20000
30000
40000
50000
60000
C1 segment trend
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
A Segment trend
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
UV segment trend
Trend conclusions from graphs
• A-mild reducing
• B1-increasing
• B2-increasing
• C1-mild reducing
• C2 -increasing
• UV-reducing
0
10000
20000
30000
40000
50000
60000
70000
80000
C2 Segment trend
*Data Source = Team BHP sales no.s last three years

19. Conclusion: Maruti Suzuki Models Market presence , market trend and BCG matrix placement
Above conclusion done based on data for segment wise position of MSIL model and segment trends
Model Sales no.s Segment MSIL Market presence Overall Market trendBCG Matrix conclusion
Alto 23360 A Leader mild reducing Cash cow
Celerio 9217 B1 Leader (2nd Rank) increasing Star
Wagon-R 10048 B1 Leader increasing Star
Baleno 13172 B2 Leader (2nd Rank) increasing Star
Ignis 1721 B2 Trailer increasing Question mark
Swift 18795 B2 Leader increasing Star
Dzire 19073 C1 Leader mild reducing Cash cow
Brezza 11749 C2 Leader increasing Star
Ciaz 2934 C2 Trailer increasing Question mark
S-Cross 2420 C2 Trailer increasing Question mark
Eeco 9063 Utility Leader reducing Cash cow
Ertiga 6352 Utility Leader (2nd Rank) reducing Cash cow
*Gypsy 486 Utility Leader reducing Dog
Omni 6082 Utility Leader (4nd Rank) reducing Cash cow
*Gypsy placed as Dog as this particular vehicle demand is almost negligible and is historic model which was
earlier produced in bulk and has achieved Payback long ago in 1990s

20. M
A
R
K
E
T
G
R
O
T
H
M A R K E T S H A R E
LOW
HIGH
MARUTI SUZUKI SBU LEVEL BCG MATRIX
Question Marks Stars
Dogs Cash Cows
S-cross
Ciaz
Ignis
Swift
Wagon RCelerio
Brezza
Baleno
Gypsy
Alto range
Dzire
Ertiga
Omni
Eeco
HIGH

21. Recommendations:
*From BCG matrix we can see that Ciaz , Ignis and Scross (products sold through Nexa) are
coming in the category of Question mark despite of focus on buying and service experience ,
hence it looks that customer need identification in terms of product is missing and hence , a
customer need oriented product refreshes to be done for these products or else these products to
be replaced by new customer need centric product launches (i.e. new models)
* Products Sold through Arena and one product Breza from Nexa are under the category of stars
and cash cows, hence current efforts to be sustained with added reinforcement of market
feedback and product modification(refresh) response loop.
*True Value is a SBU in Star category hence , efforts to be sustained along with an eye on the
market.
*Commercial Vehcile is a new SBU for market hence more focus will be needed for value delivery
processes which means more focus on dealerships and quick response for market feedback
coming from product.
* Other profit centres like maruti insurance , finance, accessories , spare parts , service are linked
with car sales , hence MSIL to continue the existing practices , however innovations and
improvements in these services may help the car sales
* Leasing is Question Mark , with other organised players emerging , hence this area can also be
focussed if management want to invest in this non core business
*Institutional sales SBU and Gypsy product are under Dogs category , hence can continue without
specific effort.

22. Backup Year On Year Segment wise data :