SUSTANABLITY OF MANUFACTRING PRACTICESAND INITITAVIES BY MARUTI SUZUKI INDIA LTD Presented by : Akash Tyagi Sneha Bajaj
INTRODUCTION TO THE CASEAutomobile sector-Maruti Suzuki India Limited• Competitive pressures to reduce cost.• Automakers are driven towards resource productivity.• Minimisation of wastage to achive economies of scale.• Importance of being sustainable in present.• Established in 1981• Promotes energy conservation- reduce, reuse and recycle.
STATERGIC PARTNERS MARUTI DRIVING SCHOOL MARUTI FINANCE MARUTI TRUE VALUE MARUTI GENUINE ACCESORIES MGA
SUSTAINIBILITYo Important as the raw materials are finite and demand is increasing.o Deals with continuous advancement in all areas.o Needs transformations in manufacturing system.o Depends upon the will of an organization
RESOURCE ALLOCATIONo MSIL has reduced electricity consumption by 20%.o Concept of end-of-life-vehicles(ELVs).o MSIL also run program to reduce part by 1 gm.o MSIL has also reduced water consumption by 46% landfill wastage by 67%.o It is following a policy of zero discharge.
Brand name Brand positioningDistribution networkLoyal customer base Poor man’s brandGovernment support Low interior quality Lack of experience with foreign market Big market Increasing prices Untapped SUV New entrants segment Shift in preferenceCan launch electric cars Changing emission normsEconomic growth
COMPETITORS STRATEGY Unique concessions from the government Indigenous sourcing of components Fully depreciated plant High labor productivity Introducing new models
STARS QUESTIONSwift MARKS ErtigaSwift CervoDzire DOGS CASH COWS OmniAlto GrandWagon R Vitara
How can MUL Differentiate its promotional campaignbetween its new and pre-owned / used car markets? Teacher Plus, Defense, PSU, etc. Schemes “Change Your Life” Campaign Introductory prices “Corporate Offers & Exchange Bonus “Do se Chaar” offer Maruti “True Value” offer
Q: Refering to the availability of pre-owned cars, an industryanalyst said, “If the customer get a santro or wagon R for theprices of an 800, why would he prefer the small car?” In light ofthis statement, how can MUL differentiate its promotionalcampaigns between its new and pre-owned/used car market?A: Maruti should launch advertising campaign to arouse feeling in you orreminding your dreams of a new car It should give a customized car Should introduce peace of mind concept in advertisement campaigno It may use promotional campaign to reduce perceived risk in the mind ofcustomer regarding pre-owned carso promotional campaign which enlighten warranty given in pre-owned cars
CONCLUSIONThe smarter will certainly will be next leader, but till then...MarutiSuzuki will going to the brand .Things are now changing with LPG polices and disinvestment; thereal competitions has already began.MSIL had a prime objective to meet the growing demand of apersonal mode of transport