INTRODUCTON OF PLC STAGES OF PLC COMPANY HISTORY PLC - STAGE OF COMPANY REPOSITIONING OF PRODUCT BIBILOGRAPHY
PRODUCT LIFE CYCLE (PLC) Like human beings, products also have an arc. From birthto death, human beings pass through various stages e.g. birth,growth, maturity, decline and death. A similar life-cycle is seen in the case of products. Theproduct life cycle goes through multiple phases, involves manyprofessional disciplines, and requires many skills, tools andprocesses.
PRODUT DEVELOPMENT:- It is the stage where a company finds and develop a new productidea. Sales are zero at this stage. INTRODUCTION STAGE:- Company builds product awareness and develop market for theproduct and launches the product into the market. GROWTH STAGE:- Company build brand preference and increase market share. MATURITY STAGE:- Competitors starts. Products come up with new features andface new competitions. DECLINE STAGE:- Sales decline. Firms either reduce cost to continue or quite fromthe market.
MARUTI UDYOG LIMITED was established in 1981 Largest automobile company in India located at Gurgaon, Manesar. Portfolio of 13 brands and 150 variants like,MARUTI 800,ALTO,WAGANOR,SWIFT,GRAND VITARA,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.
MARUTI UDYOG LIMITED Launched first „MARUTI 800‟ ,in Indian market on December 1983. It‟s 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 presented to Lord Venkateswara of Tirumala Venkateswara temple. 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.
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,
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
Strategies adopted at this stage : Pricing strategy:– categering to all segments ,car priced at Rs. 1,87,000/- is the lowest offer on the road Developed different revenue streams in the form of Maruti insurance, Maruti finance. Repositioning of Maruti products Introduced new facelifts model based on market responses or consumer feedbacks or the competitors moves Customer centric approach: call centers bring Maruti to closer to its customer. Committed to motorizing India Partnership with STATE BANK OF INDIAorganized finance to small towns enablepeople to buy cars in Rs.2599/- scheme
Due to heavy competition from competitors like Hyundai i10 , Maruti Suzuki Swift, Chevrolet Spark, sales of Maruti 800 was drastically decreased. The sales are went down from 1,51,976 units in the year 2000 to about 69,553 in 2007. Buyers are attracted by high end luxuries small cars like NANO . In 2008-2009 experienced sales of only 1,288 units. Major competitor Tata Motors launched Tata Nano dmaller car yet offer more space than the Maruti 800 Sales are continued in semi urban and rural areas till today . Now in 2012 Maruti introduces ALTO 800 in the place of Maruti 800 .
Competition is rising like never before in the automobile industry especially in India. Still Maruti is in the lion position having a market share of more than 40% in Indian automobile market. Maruti is still the brand name at least in India in the Top of Mind position. There are some serious problems regarding productivity issue which can be solvable . Once these issues get corrected, I hope Maruti will regain its market share. Now a days car has become more of a hedonistic product rather than an utilitarian product. So Maruti has to change its positioning and brand perception in long run to have a sustainable market share.
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