MARKETINGASSIGNMENT PHASE-1SUBMITTED TO - Prof. Bidyanand Jha SUBMITTED BY - BHARAT SHARMA ROLL NO. – 11 SECTION -A
TheProduct chosen by me is Wagon-RCompany is Maruti Suzuki India Limited. Company ProfileMaruti Suzuki India Limited commonly referred to as Maruti, is a subsidiary company ofJapanese automakerSuzuki Motor CorporationIt was the first company in India to mass - produce and sell more than a million cars. It has a market share of 44.9% of the Indian passengercar market as of March 2011. Maruti Suzuki offers a complete range of cars from entry levelMaruti 800 and Alto, to hatchback Ritz, A-Star, Swift, Wagon-R, Estillo and sedans DZire,SX4, in the C segment Maruti Eeco, Multi-Purpose vehicle Ertiga and Sports Utility vehicleGrand Vitara.It was the first company in India to mass-produce and sell more than a million cars. It is largelycredited 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 as Maruti Suzuki IndiaLimited. The companys headquarters are on Nelson Mandella Rd, New Delhi.In February 2012,the company sold its 10th million vehicle in India.The company exports more than 50,000 cars annually and has an extremely large domesticmarket in India selling over 730,000 cars annually. Maruti 800, till 2004, was the Indias largestselling compact car ever since it was launched in 1983. More than a million units of this car havebeen sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts but MarutiSuzukis Swift has taken over this titles by 19000 models in April 2012.The company importsdiesel engines for all maruti Suzuki cars from the fiat motors the great Italian company.TheGerman car company Volkswagen has a 19.9% non-controlling shareholding in Suzuki MotorCorporation
Product profile Wagon-RThe Maruti Suzuki Wagon R is a made-for-India version of Suzuki Wagon R. The Wagon Rwas launched in December 1999, and has since undergone three upgrades (one in 2003, anotherin 2006 and another in 2010). When the second-generation Wagon R was launched in 2010, thecar was built on a newer platform, and claimed more interior space, and new features such as anunder-seat tray below the front passenger seat (top-end only). Its looks were also revamped,shedding the boxy look at the back. It was now less van-like, becoming simply anotheraffordable hatchback, albeit with somewhat taller styling. It is one of the best selling models ofMaruti Suzuki in India and continues to be the second best seller of the company after Alto everymonth.Originally all Indian Wagon Rs received Suzukis 1.1 L F10D petrol engine producing 64 bhp(48 kW) at 6,200 rpm and 84 Nm (62 lb·ft) of torque at 3,500 rpm. The newly launched WagonRs are powered by the companys well known K series engine. This K10B petrol engine benefitsfrom a 5 speed manual transmission gearbox. The aluminum K10B engine of Maruti is very lightand produces a power of 68 PS (50 kW; 67 hp) at 6,200 rpm and a torque of 90 N·m (66 lb·ft) at3,200 rpm. Also, a new LPG version called DUO has been introduced lately for the F10Dengined variants, which runs either on petrol and LPG.A 3-cylinder diesel version is expected in late 2012 according to numerous strong rumors on theinternet. This will make the Wagon R the cheapest diesel car in India -Product SegmentationSegmentation can be done by the following methods 1) Price based Segmentation Segment A - Under Rs. 3 Lakhs Segment B - Rs. 3-5 Lakhs Segment C - Rs. 5-10 Lakhs Segment D - Rs. 10-15 Lakhs My product falls in SEGMENT B
2) Capacity of the car 4-seater 5-seater 8-seater My Product Falls in 5 seater3) Design of cars Hatchback Sedan Suv My Product falls in HATCHBACK SEGMENT4) Depending Upon Fuel Consumption PETROL LPG CNG Product Lifecycle
My Product – Wagon-R is in the Maturity Stage Competition is most intense as companies fight to maintain their market share. Any significant moves are likely to be copied by competitors. Any expenditure on research and development is likely to improve production efficiency and quality . Here maturity stage is made up of 2 stages a) Growth Maturity – 1) sales growth starts declining. 2) laggard buyers enter into market 3) no new channels are left to fill. b) Decaying Maturity – 1) absolute sales volume decrease. 2) Customer start switching to other substitutes. BCG MatrixSTAR QUESTION MARK ? DOGSCASH COWSWAGON-R
MARKETINGASSIGNMENT PHASE-1SUBMITTED TO - Prof. Bidyanand Jha SUBMITTED BY - BHARAT SHARMA ROLL NO. – 11 SECTION -A
Pricing Strategies, Channel Strategies, and Communication Strategies with the nearest competitorCurrent Strategy OfMaruti Suzuki India Limited Pricing Strategy – catering to all segments. Offering one stop shop to customers. Repositioning of Maruti products Customer centric approach. Committed to motorizing India. Realization of importance of vehicles maintenance services market. Playing on cost leadershipPricing Strategy Pricing objective :-Market Share & Cost Leadership. Pricing method :- Markup Pricing (Cost plus pricing) Pricing Strategy :- Economical Pricing Current price of Maruti Wagon R VXI BSIV WITH ABS :- Rs. 4,40,900The price of the Maruti car is between Rs2,10,000 to Rs15,00,000 . Maruti -800 is the lowestprice car of the company. Alto ,Omni Wagon-r , are also the low price cars of the company. Zenand esteem are the mid price cars of the company , but the Grand Vitara is the high price car ofthe company. The price of the ccare is decided according to the product variety, quality, design,etc.Maruti caters to all segment and has product offering to all price points. It has a ccare priced atRs 1,87,000 which the lowest offer on road.Maruti gets 70% of the business from the repeatbuyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option toevery customer looking for upgradation in his car.
What all features are included in this price ? ? ? ?They are providing the following features in this pricing range :-FeaturesCup holder StandardTachometer StandardFuel indicator yesRear parcel tray yesclock yesFront fog lights StandardsExternal featuresRear defogger StandardBody coloured bumper YesBody coloured side door handle YesDriver air bags StandardChild safety locks StandardSeat belt rear and front yesCentral locking StandardComfort and convenienceFeatureAir conditioner StandardPower window front and rear yesPower door locks StandardPower steering Standard
Remote boot/ fuel lid standardRoof antenna/ power antenna yesEntertainmentFeatureCar stereo YesRadio YesCd player StandardMajor competitors are :- Chevrolet - Spark 1.0 Hyundai - i10 Magna 1.2 Kappa2 Tata - Indica eV2 L BS-III
Comparing with the competitors Wagon –R Chevrolet- spark Hyundai i-10 Tata indica Alloy wheels Steel rims Air-con Fog lights Fog lights Air-con Child safety lock Child safety lock Power windows Child safety lock Tachometer Steel rims Electric mirror Tachometer Power windows Remote boot release Remote boot release Remote boot release ABS Cup holders Power Steering Ex showroom price – Ex showroom price Ex showroom price Ex showroom price Rs 4,40,900 3,26,365 Rs. 4,32,709 Rs. 4,22,452 Channel strategyMaruti dealer’s/ showroom in IndiaAndaman Nicobar ,Andhra Pradesh , Assam, Bihar , Chandigarh, Chhattisgarh ,Delhi ,Goa,Gujarat ,Manipur , Meghalaya , Mizoram, Nagaland ,Orissa ,Pondicherry ,Punjab ,Rajasthan ,Sikkim, Tamil- Nadu ,Tripura, Uttar Pradesh , Uttaranchal ,Haryana ,HimachalPradesh ,Jammu & Kashmir, Jharkhand, Karnataka, Kerala ,Madhya Pradesh ,MaharashtraMaruti Suzuki sells cars through 444 dealerships in 241 cities across India.Sai service is one of the major dealer of the Maruti Suzuki .
Sai ServiceSai Service Station Limited, is considered as among the premiere automobile dealerships in India.The dealership operations is spread over the states of Maharashtra, Goa, Kerala and Andhra Pradesh,run by Professional Managers ably assisted by over 3,250 qualified and committed personnel.A Financially Sound, Process & Systems driven company, committed to quality with leadershippositions in markets of operation, operating State of the Art Workshops & Body and Repair Shops.The organization has been appointed as an authorised dealer for Maruti Suzuki India Limited inMumbai, Pune, Kolhapur, Goa, Cochin and Hyderabad & Bajaj Auto limited in Mumbai, Pune &Kolhapur.Our endeavor is to achieve Customer Satisfaction through adherence to systems and procedures,continuous up gradation of skills through training and constructive interaction.Chevrolet Channel StrategyAndaman Nicobar ,Andhra Pradesh , Assam, Bihar , Chandigarh, Chhattisgarh ,Delhi ,Goa,Gujarat ,Manipur , Meghalaya , Mizoram, Nagaland ,Orissa ,Pondicherry ,Punjab , Rajasthan,Sikkim, Tamil- Nadu ,Tripura, Uttar Pradesh , Uttaranchal ,Haryana ,Himachal Pradesh,Jammu & Kashmir, Jharkhand, Karnataka, Kerala ,Madhya Pradesh ,MaharashtraChevrolet sells cars through 247 dealerships in 181 cities across India.An initiative taken by Chevrolet is Chevrolet CertifiedChevrolet CertifiedChevrolet Certified Pre-Owned Vehicles is an initiative of Chevrolet in India to take care of all yourworries, problems and requirements of used cars under one roof. Under this program, you can Buy,Sell, Exchange used cars with confidence, trust and peace of mind in customer friendly environment.We have designed our used cars program keeping in mind the customer’s expectations and concernson Quality, Safety, Reliability, Transparency, value for money , peace of mind and experience at parwith new car buyers.When you are willing to Sell/Exchange your used car, we offer free evaluations of your used car. Wehave a fair and transparent evaluation process to ensure that you get right price of your used car. Youcan choose to take payment of your car in cash or buy a brand new Chevy car or “Chevrolet CertifiedPre-Owned car” in exchange.Cars meeting vehicle history checks and stringent certification norms of “Chevrolet Certified” aretaken into our state of the art Chevrolet workshop where they go through extensive inspection and
refurbishment process. These are refurbished by Chevrolet approved highly skilled technicians withGenuine Spare Parts.To further add to your confidence and peace of mind, every car is inspected and certified by companyappointed “Chevrolet Certified“ engineer. Certified cars are offered with 1 Year/15000km (whicheveris earlier) warranty and 3 labor free services backed by Chevrolet and available at authorized dealernetwork of Chevrolet all across India.So do not take chances and allow us to provide you the best used car solutions under one roof.Hyundai Channel strategyAndaman Nicobar ,Andhra Pradesh , Assam, Bihar , Chandigarh, Chhattisgarh ,Delhi ,Goa,Gujarat ,Manipur , Meghalaya , Mizoram, Nagaland ,Orissa ,Pondicherry ,Punjab , Rajasthan,Sikkim, Tamil- Nadu ,Tripura, Uttar Pradesh , Uttaranchal ,Haryana ,Himachal Pradesh,Jammu & Kashmir, Jharkhand, Karnataka, Kerala ,Madhya Pradesh ,MaharashtraHyundai sells cars through 382 dealerships in 239 cities across India.Hyundai started Hyundai Advantage.Hyundai AdvantageHyundai Motor India Ltd. has started its certified used car program under the brand name“Advantage” to give good quality used cars to Indian Customers. Vehicle are certified by HyundaiEngineer using 147 check points and comes with Hyundai Warranty upto 1 year/20,000Km(whichever earlier from the date of delivery) & two free services Through this program customer isassured of Trust, Transparency, Convenience and Peace of Mind. Communication strategyMaruti SuzukiThrough these dealers eg the major dealer Sai Service communication/ promotional strategies arebeing formed these dealers provide the end user/ customers with special offers in order to attractthem.Example – by giving huge discounts to customers, giving gifts to them on every purchaseMaruti Wagon R has a new brand ambassador – South Indian actor Madhavan who is also quitepopular in Hindi cinema. “R Madhavan is a true personification of the WagonR brand. BrandWagonR stands for being Contemporary, Pragmatic, Intelligent, Leader-like, Balanced and Caring.All will agree that the same attributes stand true for Madhavan as well. He will refresh WagonR’s
values, strengthen the Brand further, and at the same time add youthfulness to the Brand. Madhavanwill be the Brand Face for WagonR. We welcome him to the Maruti Suzuki family,” says MarutiSuzuki.Wagon R is the market leader in its segment and clocks average monthly sales of 12000 units.Maruti conducted a comprehensive market study before signing the actor to evaluate hisappointment as a brand ambassador. Maruti specifically intends to rope in more sales from SouthIndia where Madhavan is quite a hot-selling proposition.Maruti is adopting a new regional approach for marketing and advertising its cars in various parts ofthe country. It will focus more on regional communication strategy by having local languagedialogues to reach out to the masses. It had earlier adopted specific marketing strategy for ruralmarkets to clock sales for its model M800.Current promotion Strategy- Advertising Tv adds Print adds Radio adds Advertising Strategy Persuasion advertising “GharAa Gaya Hindustan” “India comes Home in Maruti Suzuki” Information Advertising
Alternative advertising options Tv shows Sales promotionsWagon R is one of the largest selling brands in the Indian car market. The brand is currently in itsmaturity stage and Maruti is all set to put Wagon R again into the growth path. The brand has roped inMadhavan as the brand ambassador . The brand hopes that the endorsement from the star will create anew growth path for it.Wagon R is a highly relevant product for Indian consumers. I have spoken to many Wagon R usersand all of them have high regards for this vehicle. Even though the product is a globally " Outdated"vehicle, for Indian consumers the brand has remained very useful. One of the major factors that drivethis brands sales is its usability. The car is easy to drive and extremely comfortable and is virtuallytrouble-free thanks to the Maruti Reliability.When the product reaches the maturity stage, marketers change its marketing mix elements to rev upthe sales. In the case of Wagon R, Maruti chose to change its promotions. The choice of Madhavan asthe brand ambassador will give an added thrust to the brand equity of Wagon R. The brand is feelingthat it is not realizing its potential fully in the southern market. Madhavan is expected to boost thebrand sales in the southern markets.It is also interesting to see how the brand has used Madhavan in its communication. Madhavan isbeing used as a model in the TVC rather than as an endorser. Here Madhavan is being used as acharacter in the TVC plot. He is being cast as an entrepreneur in the ad.One of the reasons cane be thatif Madhavan acts as an endorser, no one will believe that he uses a Wagon R. So it makes sense to casthim as a character rather than as an endorser.Wagon R retains its core positioning as a smart choice car and has a new slogan " Smart Ideaslead the world " . The brand retains its tagline " For a Smarter Race ".The new campaign is pushing the idea that Wagon R is a smart choice for the consumers.Indianconsumers seems to like that idea.HyundaiHyundai succeed in India because their official carried a complete market research, they talked todealers vendors and customers. Detailed survey was carried outThey had : - Innovative and attractive features and designs. Attractive and intelligent advertising strategy. Customer satisfaction campaign was startedFollowing were the promotional Strategies : -
The Indian economy liberealized and Indian Government De-licensed the automobile industry. In order to promote their brand more they tied up with PNB for financing of their cars They used celebrity like shahruk khan for the promotions In order to develop a better image it launched innovative marketing strategies positioning at better safety ,better features and better products. The dealer selection was done with great care they regularly interacted with the dealers They positioned itself in stages as company having as accompany having cars for the entire market segment.