Prof. A.V. Shukla
14IB308 : Akshay Kr. Ghosh
14IB367: Vikash Kumar
14IB340: Mohit Gehani
14IB335: Lavi Varshney
14IB302: Aadyant Vashishth
14IB322: Dipti Soni
MARKETING ASSIGNMENT ON MARUTI SUZUKI 1
TABLE OF CONTENT:
2. A brief History
3. 4 P‟s of Marketing
4. MSIL Strategy to differentiate itself from its competitors
5. 5 C‟s of Marketing
6. Executive Summary
MARKETING ASSIGNMENT ON MARUTI SUZUKI 2
Maruti Suzuki India Limited is a partial subsidiary of Suzuki Motor Corporation of Japan. It has
been the leader of the Indian car market in the passenger car segment for over two decades
accounting for over 50% of the market share. (Source: TOI)
The company offers a wide range of cars across different segments. It offers 14 brands and over
150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10,
A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift
DZire and Kizashi. MSIL had also introduced vehicles with CNG fitted engines under
environmental friendly approach. These include Eeco, Alto, Estilo, Wagon R and Sx4.
It was the first company in India to produce car and sell more than a million cars. It is largely
credited for having brought in an automobile revolution to India. It is the market leader in India
and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited.
The company's headquarters is located in New Delhi.
A BRIEF HISTORY:
In February 1981 Maruti Udyog Limited (MUL) was incorporated under the provisions of the
Indian Companies Act, 1956.
A license and Joint Venture Agreement was signed between Government of India and Suzuki
Motor Company (now Suzuki Motor Corporation of Japan) in October 1982. It manufactured
India's first affordable cars though the actual production commenced in 1983. On 14th
December, 1983, first Maruti 800which was produced in gurgaon plant.. Late Mrs. Indira
Gandhi, the then Prime Minister of India, handed over keys for this car to the first Maruti
customer. By 1992 SMC had acquired a majority stake in MUL (increases to 54.2%). In 1990's
when the economy was liberalized and foreign investment allowed into India, the auto
component companies, set up and nurtured by Maruti Suzuki, became the foundation for global
car companies as well. These new players in the Indian automobile segment found an
accomplished and experienced auto component industry, which encouraged further foreign direct
MARKETING ASSIGNMENT ON MARUTI SUZUKI 3
investment into India. With the entry of foreign players into the automobile sector MUL was
forced to become more competitive and aggressive in its marketing strategy in order to maintain
its market share. By 2003 it got listed on the BSE and NSE. In 2007 the Board of Directors of the
company gave approval to change the name MUL to Maruti Suzuki India Limited. In 2008 M-
800 crossed the 25 lakh mark and MSIL celebrated its Silver Jubilee. By 2009 MSIL‟s Capacity
to manufacture expanded from 800,000 to a million units (Gurgaon plus Manesar plants)
4 P’S OF MARKETING:
The 4 Ps of Marketing helps in determining the various marketing strategies adopted by the
company. The 4 P‟s are :
MARKETING ASSIGNMENT ON MARUTI SUZUKI 4
Maruti Suzuki has divided its Product line into five segments as per the following table.
• Alto, Zen ,Wagon –R, Swift, A-star
A3(mid size) • Esteem , Baleno, Dzire
• Vitara, Gypsy , Kizashi
Multi purpose Vehicles • Omni, Versa
Maruti Suzuki under different production line tries to target different segment of the market
producing different varieties of cars. Under product line A1, A2, A3, Maruti Suzuki‟s main
focus is on producing quality car having high mileage. These Cars have also been divided
into its various variants depending on the type of fuel used. Some cars have been rolled out
for use with both Petrol and Diesel. With rising prices of petrol, there is a sharp demand for
Diesel-run vehicles. So it also focus on making LPC cars for which MSIL has introduced
two of its cars with LPG fitting too. The MSIL while making the product also keeps in mind
the Designing of the car
Maruti Suzuki according to different segment of the focuses on the designing of the car
MARKETING ASSIGNMENT ON MARUTI SUZUKI 5
• For the higher income
group of people it
makes luxurious cars
with good looking
design and more
• For middle income group
of people it makes car
that is good looking but
with minimum basic
features so that the cost
of the car is reduced and
would give maximum
mileage.ex: Swift Dezire
• For Family cars it focus
on designing big car
with big space and
travelling of a Indian
• ex: Omni
Along with just selling car it also provides various services and features to the
customer in order to differentiate its product from its competitors which includes
MSIL tries to focus on providing better services to their customer for which they provide
services through various service centre across the country ; so that , In case of, any wear
and tear consequent replacements and repairs could happen. Maruti Genuine Parts ensure
that customers‟ car remains like the original, down to the smallest part for which it makes
sure that over Maruti Suzuki, 20,000 parts which come together and work in perfect
harmony is made available to their customers under MSIL genuine parts. The customer
can get their problem sorted out relating to the functioning of the car easily for that it also
makes all the parts available throughout every corner of the country. A new Vehicle
Tracking System improved efficiency on the shop floor and enhanced quality control to
serve their customers more effectively. It also provides online support to their customers
Stuck in the city. Where one is stuck in the back of beyond, without help for miles. All
they need to do is remember a number. 1800 102 1800. Call and Maruti On Road Service
will swing into action.
MARKETING ASSIGNMENT ON MARUTI SUZUKI 6
For making its product competitive in the market and their customers satisfied It
provides Warranty for a period of 24 months or 40,000 kms whichever comes first from
the date the first owner takes delivery
The support it provides under warranty is in the form of replacement of parts or repairs
which is done for qualified failures associated with manufacturing defects in material and
Extended Warranty Cover
Extended Warranty covers is also provided under which mechanical and electrical
breakdown of parts like the engine, gear box, steering, brakes, electrical items etc is
To make their customer avail this benefit easily The Extended Warranty is also
available through their dealer network. Under extended Warranty two plans are being
•3rd year or 60,000 kms
(whichever comes first)
from the date the first
owner takes delivery
•3rd and 4th year or 80,000 kms
(whichever comes first) from
the date the first owner takes
MARKETING ASSIGNMENT ON MARUTI SUZUKI 7
The MSIL generally sets its price to target the Lower middle-class and middle class families
in India. So they set the prices of their car low to make it people‟s car so that person driving
2-wheelers would shift towards driving of 4-wheeler car. For two different engine car
produced by MSIL one Diesel car and another Petrol car it prices their petrol engine car
lower than the diesel engine car in order to scale the sales of petrol engine car as more and
more car buyers are opting for diesel engine car.
The following chart shows the various Products and their Price ranges of the Cars of MSIL in
(image source : http://www.carwale.com/marutisuzuki-cars/)
MARKETING ASSIGNMENT ON MARUTI SUZUKI 8
Maruti achieves its low car pricing strategy through continuous improvements in operational
efficiency and productivity. For this company focuses on two things
A. Improving the productivity
B. Reducing the costs
MSIL in order to provide credit facilities to its customers In a market where more than 80% of cars
are financed, has strategically entered into partnership with financial institutions to provide credit
facilities to their customer in order to make their customer purchase car easily. For this Maruti has
tied up with many public and private finance companies and banks. Some of This Companies are:
a. HDFC Bank
b. ICICI Bank
c. Axis Bank
d. State Bank of India
e. Sundaram Finance Ltd.
f. Cholamandalam Investment and Finance Company Ltd.
Which enables their customers to make payment for their purchased car over long period of
This is one of the 4P‟s where MSIL has an advantage over all of its competitors due to their
presence in the country for long time as compared to its rivals. They enjoy a well-distributed
and an extensive network of Car-sale outlets, Exclusive Showrooms, authorised service
stations, True-value Outlets.
MSIL has two Manufacturing facilities setup in Gurgaon and Manesar to the south of Delhi.
The combined capacity for the two plants is 1.5 million vehicles on an annual basis.
Some details of the extensive network for MSIL are:-
Showrooms & Car Sale Outlets – 933 covering 668 cities
Authorized service stations – 3053 nationwide service outlets covering 1395 cities
MARKETING ASSIGNMENT ON MARUTI SUZUKI 9
True-Value Outlets – 668 covering 393 cities (Source: MSIL website)
MSIL makes available all the genuine parts of the car throughout the country so that the car
remains 100% Maruti Suzuki throughout its useful life.
The True-Value Outlets were started with a view to retain the customers under exchange
programs enabling the customers to upgrade their existing car models. Later these outlets
were converted to be a different vertical business unit of MSIL to capture the market for Pre-owned
cars in India based on the high resale value of MSIL cars giving up to 70% returns on
The company has for most of its years of operation targeted the Indian middle class families
as their main consumers. That‟s why their Promotional strategy has always been to create an
emotional Connect with the audience. MSIL has used various media of promotion
TV – There have been a lot of advertisements through this media as most of the target
audience connects to MSIL through its emotional TV commercials where the company
touches everyone irrespective of their Demographics, Age, Occupations, etc.
Print Media – The Company has also used Newspaper, Magazines to promote its
products to the consumers.
Radio – The Company also uses radio as an important media for advertising its product
line. It sponsors certain shows on air, events for all radio users, etc.
MARKETING ASSIGNMENT ON MARUTI SUZUKI 10
Apart from this, MSIL has also partnered with certain TV shows like “India‟s Got Talent”
and also it provides Sponsorships to certain famous events to make its presence felt. The
company is also involved in certain CSR activities mostly around its manufacturing units to
make the people grow with the company. This all helps in creating a visibility & goodwill for
the company for the non-existing customers and hence, increasing the sales.
MSIL also provides its customers with an “AUTO-Card”. Under which customer earns poin
on every purchase of MSIL product which can be later used as a substitute for money.
MSIL also has a unique program called “DIL SE” for its NRI customers to facilitate them to
gift a MSIL car to their relatives back home in India.
The Company also conducts Mega-Camps where they provide AC & pollution checks,
complimentary Car-wash to its customers to improve customer relations.
MSIL also has an extensive CRM program to manage its relationships with customers. Apart
from all this, the company also has various seasonal Campaigns to target the audience like
festival times to capture the celebrations‟ mood of people and convert it into sales. Festivals
like Navratras, Diwali, etc. are times when you would see such Discounts of 30-40K per car
MSIL to differentiate from its’ competitors undertake
1. It Caters to the need of all segment and has a product offering at all price.
MARKETING ASSIGNMENT ON MARUTI SUZUKI 11
2. Their pricing strategy is to provide an option to every customer looking for up gradation
in his car. Above are few cars in different range:
Vitara etc.. • 15-30 lakhs
Baleno,SX4 • 5-10 lakhs
Zen, wagon R, Versa, Swift • 3-7 lakhs
Maruti800, Alto, Omni • Below 3.5 lakhs
3. Offering of one stop services to customers
a) Maruti Finance
b) Maruti Insurance
c) Maruti Driving School (MDS)
d) Maruti True Value
4. The customer-friendly approach in its organization culture.
5. Maruti employees & dealers are answerable to even a single complain of customer which
develops customer relationship and encompasses customers to visit MSIL showroom
6. They change their showroom layouts from time to time accordingly to make customer
feel good while visiting to their showrooms.
7. They have Trained Sales Executives who negotiates with customer in finalizing the deal
and creates friendly environment for the customer so that they can clear any doubts
regarding the deal.
MARKETING ASSIGNMENT ON MARUTI SUZUKI 12
8. They also have Customer complain handling cell under CRM department who looks care
towards customers‟ problem. Which inculcates a feeling in the mind of customer that
their complaints will not be overlooked hear.
9. It also provides online support to their customers Stuck in the city. Where one is stuck in
the back of without help for miles. All they need to do is remember a number. 1800 102
1800. Call and Maruti on Road Service will swing into action.
10. Partnership with SBI & its associate banks took organized finance to small town people
11. Free maintenance with little extra EMI
12. Conducting free service workshops to encourage consumers to come to their Service
13. The low cost maintenance advantage.
14. Lowest cost of ownership.
MARKETING ASSIGNMENT ON MARUTI SUZUKI 13
5 C’s of Marketing:
Customer Company Competitor Collaboration Context
Customer will find all car related needs met under one roof. It provides a single window
solution for all car related needs.
Maruti has started a number of plans in purpose of well customer service(like vehicle insurance
for rupee one). They have even changed their interior of showroom allowing customers to walk
in the showroom and there are schedules for customer service times and delivery of vehicles. The
Dealer Sales Executive, who is trained on greeting notes, is the first person to interact with the
customer of Maruti when he walks into the Maruti showroom. Under CRM department Maruti
has a cell to handle customer complaints. Another effort by Maruti is the call center where
Maruti can closely interact with its customer. The Market Research department of Maruti studies
varying consumer behavior and needs of market. Maruti‟s claim of being customer friendly
further strengthens because of seventy percent of repeat buyers. There is a lot of investment and
effort involved in developing customer loyalty cum Rewards schemes(joining bonanza,3% value
back, exclusive Benefits).
a). Creating Value to each of the Customers:
MARKETING ASSIGNMENT ON MARUTI SUZUKI 14
Authorized Service Stations
Service is a major revenue generator of the company. Most of the service stations are managed
on franchise basis, where Maruti trains its staff.
Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram.
Maruti has started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group
and GE Countrywide respectively to assist its client in securing loan.
Maruti True Value:
One can buy, sell or exchange used Maruti vehicles with the help of this service in India.
a) Product Line:
A product line is a group of products that are closely related to each other by function, customer
group or price range.
MARKETING ASSIGNMENT ON MARUTI SUZUKI 15
Goals with Maruti 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 people and the climatic conditions which
creates possibility of earning foreign exchange by exporting Maruti products and improving
employment by starting new industries in the market. By improving the research in the market is
determined by manufacturing of better cars would be in demand in Indian market. The main aim
of the Maruti Suzuki production is to take help from Japanese company in its working model,
working culture and in Indian industry they mainly focus on hierarchical discrimination,
inadequate labor, low labor involved, and labor conflict and low recognition with the company.
Japanese culture imbibed in the employees like same uniform, common canteen, etc
Unique identity to its employees, equal rights for decision making.
Recently, the company has introduced a peppy k series engine for its new car, Maruti
Suzuki A- star.
It is planning to develop hybrid, electrical, and multi fuel engines.
Manufacturing Global Cars that is fuel – efficient and lower on CO2 emissions.
Any person or entity who are rival against another is competitor.
Although most of the major global players are present in the Indian market; few more are
expected to enter due to the welcoming the new government. So there will be tough
competition for Maruti.
Maruti Suzuki faces healthy competition from its competitors. It has direct competition
from Tata Motors limited Mahindra and Mahindra, Hyundai Motor Company, Toyota
Motor Corporation, Honda Motor Corporation and others. In this competing market every
MARKETING ASSIGNMENT ON MARUTI SUZUKI 16
company should be aware of their competitors because Consumers need changes very
fast and your competitor can take the advantage of this. The target customers of Maruti
are basically from middle class family. Maruti generate mostly revenue from middle class
families. Their competitors are also trying to attract this market.
There are some cars which will be launch in future and will give the direct
competition to Maruti.
Mahindra Scorpio Facelift
For Figo Concept Sedan
Mahindra Quanto AT
Hyundai Grand i10
Hyundai Elite I20
The cost of all these cars are approximate 3-10lac which will attract to middle class family and it
will direct impact on Maruti.
Targeting Competition in certain segments is very high e.g., small and mid car segment.
Brands like Hyundai, Chevrolet, Tata and Skoda have given huge competition to Maruti
Suzuki. In the recent past Volkswagen, Honda, Ford has also given competition to the
premium car segment.
Superior knowledge of rivals offers a legitimate source of competitive advantage. So it is
required to all marketers to have all knowledge of their competitors.
MARKETING ASSIGNMENT ON MARUTI SUZUKI 17
4. CONTEXT (OR CLIMATE) :
a) Political Environment:
Indian government auto policy aimed at promoting an integrated, phased and conducive
growth of the Indian automotive industry.
Allowing automatic approval for foreign equity investment up to 100 per cent, with no
minimum investment criteria.(Source: http://business.mapsofindia.com)
Establish an international hub for manufacturing small, affordable passenger cars as well
as tractors and two wheelers.
Ensure a balanced transition to open trade at minimal risk to the Indian economy and
Laying emphasis on R&D activities carried out by companies in India by giving a
weighted tax deduction of up to 150 per cent for in-house research and R&D activities.
(Source: Economic Times)
b) Economic Environment:
The manufacturing sector has grown at around 7.25 per cent per annum in the last few
years. (Source: http://indianexpress.com)
More than 90 per cent of the CV purchase is on credit.
Finance availability to CV buyers has grown in scope during the last few years.
The increased enforcement of overloading restrictions has also contributed to an increase
in the number of CVs plying on Indian roads.
Several Indian firms have partnered with global players. While some have formed joint
ventures with equity participation, others have entered into technology tie-ups.
Establishment of India as a Manufacturing hub, for mini, compact cars, OEMs, and for
c) Social Environment:
Growth in urbanization
Upward migration of household income levels.
Increase in PPP, led to the increase in market share of compact cars.
Cars priced below USD 12000 accounts for nearly 80% of the market.
Vehicles priced between USD 7000 –12000 form the largest segment in the passenger
MARKETING ASSIGNMENT ON MARUTI SUZUKI 18
Indian customers are highly discerning, educated and well informed. They are price
sensitive and put a lot of emphasis on value for money.
Preference for small and compact cars. They are socially acceptable, even amongst the
Preference for fuel efficient cars with low running costs. The Tata Indica has the lowest
running cost at US 8.5 cents per mile.
d) Technological Environment:
With the entry of global companies into the Indian market, advanced technologies, both
in product and production processes have developed.
With the development or evolution of alternate fuels, hybrid cars have made entry into
Few global companies have setup their R&D centres in India.
Major global players like Audi, BMW, Hyundai etc. have setup their manufacturing units
Government initiatives regarding tax rebates have led to global players setting up their
R&D centres in India.
Govt. initiatives in establishing NATRIP network across the country will further lead to
enhancing R&D and technological advancements.
e) Ecological Environment:
Physical infra structure such as roads and bridges affect the use of automobiles. If there is
good availability of roads or the roads are smooth then it will affect the use of
Physical conditions like environmental situation affect the use of automobiles. If the
environment is pleasant then it will lead to more use of vehicles.
Technological solutions helps in integrating the supply chain, hence reduce losses and
Distribution is an important marketing mix. In earlier days the consumers used to book for a car
and wait for more than a year to actually buy it. Also the concept of Show rooms was non-existent.
Even worse thing was the state of the after sales service. With an objective to change
this scenario & to offer better service to customers, Maruti took initiative. To gain competitive
advantage, Maruti Suzuki developed a unique distribution network. Presently the company has a
sales network of 933 centres in 668 towns and cities, and provides service support to customers
MARKETING ASSIGNMENT ON MARUTI SUZUKI 19
at 3053 workshops in over 1395 towns and cities. The basic objective behind establishing the
vast distribution network was to reach the customers even in remote areas and deliver the
products of the company. The company has formed the Dealer territories and the concept of
competition amongst these dealers has been brought about. Periodically corporate image
campaigns in all dealership are carried out. In 2003, to increase the competition the company
implemented a strategy for its dealers to increase their profitability levels. Special awards were
sometimes given by company for sales of special categories. Maruti Suzuki had given an
opportunity to dealers to make more profits from various avenues like used car finance and
insurance services. In 2001, Maruti started an initiative known as ‗Non Stop Maruti Express
Highway„. As a part of this initiative Maruti developed 255 customer service outlets along with
21 highway routes by 2001-02. Also with an intention to provide fast service in less time Maruti
had offered Express Service Facility. In the year 2008, Maruti had near about 2,500 rural dealer
sales executives, among the total 15,000 dealer sales executives.
Maruti Suzuki is the leading four-wheeler automobile manufacture in South Asia. Which
captures a biggest market share of around 50% for which it implies various marketing strategy
from various product features to different advertising channels to Diffrent pricing policy in order
to capture a bigger market share and not to let its customer run away i had even implied a new
marketing strategy in the terms of true value shop so that in no way customer get switched over
to other brand.
A 4-P analysis done on the company shows:
The company offers a wide product range.
MARKETING ASSIGNMENT ON MARUTI SUZUKI 20
It has a range of cars from 2 to 26 lakhs. The price is decided by the quality and design
of the product.
It decides its distribution channel on its own, which is sometimes one level or a two level
For promotion, it uses both print as well as the electronic media. It tries to create an
emotional connect with the customers (which are mainly the Indian middle class
The 5 C’s of marketing of Maruti Suzuki shows:
Maruti has a number of plans to provide well customer service to its customers which
includes providing all accessories under one roof, easy finance facility, showrooms, etc.
The company focuses on improving its technology and provide maximum customer
The main competitors are: Honda, Chevrolet, Tata, Mahindra, Hyundai and Ford.
The main context of the company are various political, economic, social, technological,
and ecological environments.
It has a unique distribution channel. It has sales network of 933 centers in 668 towns and
cities, and provides service support to customers at 3053 workshops in over 1395 towns
1. MSIL Website:
MARKETING ASSIGNMENT ON MARUTI SUZUKI 21
2. Times of India: http://timesofindia.indiatimes.com/business/india-business/Marutis-rural-market-
3. Indian express : http://indianexpress.com
4. Carwale.com http://www.carwale.com/marutisuzuki-cars/
5. Mapsofindia.com http://business.mapsofindia.com/
MARKETING ASSIGNMENT ON MARUTI SUZUKI 22