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Marketing plan for maruti suzuki kizashi by rakesh shah ss


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A Marketing plan good to be used as template and reference.

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Marketing plan for maruti suzuki kizashi by rakesh shah ss

  1. 1. 2011 Marketing Plan for Sporty Sedan “Kizashi” By Rakesh Shah19-May-2011 1
  2. 2. 1. Executive Summary Maruti Suzuki to launch luxury and sporty sedan “Kizashi” in India. Maruti Suzuki is a leader in Sedan Car segment with 36% Market Share – double in last three years, will delight customer with Kizashi. A high performance, stylish and luxurious feels, Kizashi will fit the changing style of Indian consumer. Kizashi is available in two versions: 1. 6 Speed Manual Transmission (MT) with Price Tag of INR 16.50 Lakh. 2. Continuous Variable Transmission (CVT) with Price Tag of INR 17.50 Lakh. Kizashi is a Japanese word meaning “a sign of great things to come”. Kizashi is truly a contemporary masterpiece. With looks that enrapture your senses, Kizashi revs up your spirit with every drive. Maruti Suzuki crossed 1 Million vehicles for the 1st time in Financial Year 2009 - 2010 and net sales of INR 289.50 Billion increased by 42.2% compare to Financial Year 2008 - 2009. Addition to this, net profit zoomed by 105% compare to 2008-09. This financial data reflects sound Indian economy and company’s market dominance. Maruti Suzuki is ranked No. 1 in Customer Satisfaction for 10th time in row and loyal customer in car industry is highest for Maruti – 78%. Passenger vehicles market segment in 2009-10 has grown 26% equivalent to Two Wheeler market after flat sale in financial year 2008-09.19-May-2011 2
  3. 3. 2. Current Market Situation a. Market Description Indian economy in 2010 has been recovered from slowdown. With Government calibrating economy by reducing fuel cost, bringing liquidity in market, reducing Central VAT, has fuelled economy and passenger vehicle segment has seen unexpected growth. With Growth, more and more Indian customer is moving towards sporty life style and looking for world class experience. Maruti Suzuki dominates Sedan segment in Passenger car vehicle market in 2009- 2010 with 36% share: Fig. 1 Sedan segment in 2009-2010 In Year 2011-12, passenger car vehicle segment is expected to grow 12 % compare to 2009-2010. Currently, India enjoys 7th position in Global Automobile Industry. Expected to beat Japan in Sales Volume by 2014 and will be No. 3 in 2020. b. Product Review Kizashi is a rich sporty sedan (A3) with value for money. Fully imported car with silent features to stand apart in Sedan segment and rightly priced.19-May-2011 3
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  7. 7. c. Competitive review Maruti Suzuki has launched two versions of Kizashi to cater global people who prefer automatic transmission and affluent Indian who are accustomed to Gear. However other than automatic transmission which leads to price difference, all other technical specifications and feature are same. With Sedan (A3) segment increasing in Passenger car vehicle industry, all major auto players sells A3 Segment models. Hyundai Sonata Transform Skoda Laura 1.8 TSI Parameters Maruti Kizashi MT 2.4 VTVT(M/T) Ambiente Fuel Economy Mileage (Highway) 13.45 km/liter 12 km/liter 12 km/liter Mileage (City) 11.45 km/liter 8 km/liter 8 km/liter Mileage (Overall) 12.45 km/liter 8.8 km/liter 8.8 km/liter Capacities Seating Capacity 5 Person 5 Person 5 Person Fuel Tank Capacity 63 Liters 70 Liters 55 Liters No of Doors 4 Doors 4 Doors 5 Doors Performance Engine Turbocharged petrol 2.4 litre DOHC J–Series engine engine, in-line, liquid Engine Type 2.4 VTVT cooling system, direct injection, 16V DOHC, transverse i Displacement 2393 2359 1798 Power 178PS @6500rpm 175PS @6000rpm 160PS @4500rpm Torque 230Nm @4000rpm 234Nm @4000rpm 250Nm @1500rpm Valve Mechanism DOHC DOHC Bore 82.5 Stroke 84.2 No of Cylinders 4 4-Cylinder 4 Cylinder VVT In-line Configuration Valves per Cylinder 4 4 Fuel Type Petrol Petrol Petrol Fuel System Multipoint Injection MPFI Direct injection Transmission Transmission Type Manual Manual Manual Gears/Speeds 6 5 619-May-2011 7
  8. 8. Summary: i. Kizashi leads in Fuel economy. Fuel consumption is going to be a key factor with soaring price of Petrol/Diesel. ii. Kizashi compete directly with Skoda in Transmission specification. iii. Kizashi leads in Engine performance with advance fuel system and leader in fuel economy. d. Distribution review Maruti Suzuki will have Pre-booking through strong dealers’ network. Company has presence in 555 cities with dealership outlet touching 802. Additionally, Maruti in later stage will explore Center Store Canteen (CSD) to get access to Defence personal which accounts to 5% of total population. 3. SWOT Analysis Maruti Suzuki being a leader in Passenger Car industry has good strength and few weaknesses. Strength: 1. Strong Dealer network - Connecting 500+ cities and towns in India with 802 Sales networks. 2. No. 1 in Customer Satisfaction since last 10 years. 3. Highest loyal customer in Industry - 78% loyal customers as per J D Power Asia Pacific. 4. Largest Service network - Maruti Suzuki has presence in 1300 + Cities and Town across India with 2700 + Service Outlets. Mission is to have service facility available at every 25 KM on major highways across India.19-May-2011 8
  9. 9. Weakness 1. Technology - Maruti Suzuki relies heavily on Technology from Parent Suzuki. 2. Exports – Maruti Suzuki exports to Europe which accounts for 10% of net sales. This export has declined from 14.5 % (Year 2008-09). 3. Uncertainty of Forex - By importing Sport Sedan car Kizashi as Complete Build Unit (CBU) will have direct impact on Import cost. With Forex currency Yen and Euro uncertainty will directly impact export and imports. Opportunity With growing higher middle class Indian consumer, market for Sedan (A3) is increasing Year On Year (YOY) and have touched 36% with Maruti dominating this segment. Also with growing economy, young Indian travelling and globe totting world over look for State of the Art technology and luxury Car and Kizashi meets expectation. With Kizashi imported as Completely Build Unit (CBU), preference will be high towards fully imported car compare to indigenous or mixed mode passenger car. Threat 1. Fuel Price Hike - Oil price has always been a threat to Indian consumer and fuel economy plays a vital role in deciding and riding passenger car vehicle. With Oil Barrel price $80.00 – $108.00 is causing huge loss to Oil Companies approximately INR 8,000 Crores. With Petrol Price touching INR 70.00 per liter will be a cost which customer will have to pay while buying Cars. However this will have less impact on Sedan (A3) Segment which falls towards luxury segment and buyers is less impacted with oil prices. 2. Auto loan interest rate – Inflation continue to increase in Indian economy and food inflation reached double digits, car loan interest falls between 8.50% and 12.00% across various Banks. With Bank ready to provide 90% loan for Sedan (A3) segment and young Indian customer (majority) is willing to go by Car vehicle loan for new car will be a challenge.19-May-2011 9
  10. 10. 3. Increased competition in Sedan (A3) Segment - Sedan being a fastest growing segment in Passenger car industry, market is flooded with 10+ models with price ranges between INR 9.00 Lac and INR 20.00 Lac. Additionally, Maruti has launched most successful A3 Segment model SX4 in diesel version. In India, Diesel is priced less than Petrol will be a internal threat to Kizashi. 4. Objectives and issues i. Objectives for year 2011 India is No 7 in Global Auto market and aggressive target set for 2011 is sales of 300 Unites in Sedan Segment (A3). ii. Objectives for year 2012 To sell 20000 Kizashi out of expected 40,000 + A3 Segment with market expected to grow 12% compare to 2009-2010. iii. Any major issues Forex uncertainty with high dependency on Yen as Kizashi will be imported as Completely Build Unit. 5. Marketing strategy 1. Positioning Kizashi will be classically positioned in Sedan (S3) segment. Kizashi is a differentiator in segment and keeping pace with “sportiness” feature expected from Indian youth /urban customer. By importing Completely Build Unit, Maruti Suzuki is delighting Indian customer and giving more value for money.19-May-2011 10
  11. 11. 2. Product Strategy Kizashi the name itself classify this product as specialty Product and associated with Brand. To make this car a special car, headlamps has connected rings with a silver finish were inspired by jewellery. Luxury is redefined with rich and specious interiors. Kizashi differentiate with his competitors in Sedan (A3) segment by: 1. Design - Dynamic contours mirrors an athlete in motion and makes a bold and powerful impression. Also is distinctive stainless-steel exhaust covers were inspired by Suzuki’s world-beating sport bike designs. 2. Performance – a Suzuki rich racing heritage reflected. 3. Reliability – Peace of mind while driving (recipients of highest safety awards in 2010 ) 4. Service – Recipients of J D Power Asia specific award since last 10 years and enjoy 78% loyalty. At present 1335 cities and town are covered by 2740 Service outlets. 3. Pricing Strategy Kizashi is target towards up market which largely constitutes of youth and affluent people. Hence price will be high in segment. Kizashi is priced above INR 16.00 lac with value for money. 4. Distribution Strategy Kizashi will be sold across Maruti Suzuki 800+ Sales Outlet across 500+ cities and town in India. Also Kizashi will be available to Indian Defence personnel via Canteen Store Department (CSD) across major Defence establishments. This gives access to 5% of Indian Population.19-May-2011 11
  12. 12. 5. Communication Strategy Message will be communicated through Print and digital media. In print media, leading auto and business magazine will communicate message to Up market customer. In Digital media, Satellite Television will be targeted youth crowd watching night business and talk shows along with major sport event World Cup being played in India. In Digital media, Internet will be used for global Indian customer and there will be separate website dedicated for Kizashi to understand style and performance of luxury Sporty Sedan. 6. Research Based on Automobile industry research, Sedan (A3) segment will grow approximately 50% with Indian Economy growing with fast pace. Also in Sedan (A3) segment, Indian Consumer looks “Value for Money”. Kizashi delivered as imported car and priced at Indian car; definitely will give more value than expected. 7. Organization Mr. Mayank Pareek, Executive Officer (Marketing and Sales) along with Mr. S. Oishi, Director (Marketing and Sales) will hold overall responsibility for marketing strategy and direction. Maruti Suzuki has hired advertisement company “Dentsu” for all media. Dentsu is a Japanese Advertising company and have Indian Headquarter in Bangalore.19-May-2011 12
  13. 13. 6. Action Programs i. Quarterly Description Feb 2011 Advertisement campaign will start on TV and Print media with clear differentiation from other Maruti Product. Launch pre-booking of Kizashi with Initial payment of INR 50,000.00 only. March – April 2011 Launch massive advertisement during world cup period for Kizashi promotion along with SX4 to get more market share in Sedan (A3) segment. May 2011 Close booking for Kizashi for a short period to create demand in market and start Kizashi delivery. Also continue advertisement in Prime slot and through Sales Outlet. 7. Budgets With World Cup round the corner and ideal slot to market product, Maruti Suzuki has set Advertisement budget of INR 8.00 Crores for Kizashi. The TV commercials for Kizashi will be on air on March 8 during the world cup cricket match telecast. It will be a completely product-focused one and it doesn’t have a storyline.19-May-2011 13