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Maruti

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CASE : MARKET EXPANSION STRATEGIES OF MARUTI UDYOG

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Maruti

  1. 1. MARUTI SUZUKI CASE : MARKET EXPANSION STRATEGIES OF MARUTI UDYOG PRESENTED BY : AAKASH SAINI PARITOSH SACHDEVA SAURAV GARG TRIPT TANEJA
  2. 2. INDUSTRY PROFILE <ul><li>The Indian Automotive Sector </li></ul><ul><li>It design, develop, manufacture, markets sell the world’s motor vehicles. </li></ul><ul><li>Most Important economic sector by revenue. </li></ul><ul><li>Automotive Industry in India is seventh largest in the world. </li></ul><ul><li>India has emerged as one of the world largest manufacture in small </li></ul><ul><li>cars </li></ul><ul><li>Annual production of over 2.6 million units in 2009 </li></ul><ul><li>Industry has four major segments:- CVs, Passenger vehicle, 3 wheelers and 2 wheelers. </li></ul>
  3. 3. INTRODUCTION <ul><li>Largest automobile manufacture in South Asia. </li></ul><ul><li>Market leader in India </li></ul><ul><li>Headquarters are in Delhi, India </li></ul><ul><li>Consumer Perceived the M-800 as a ‘VALUE FOR MONEY CAR’ </li></ul><ul><li>Maruti-800 model is called “Butter and Bread model’ </li></ul><ul><li>It has been rated first in customer satisfaction among all car markers </li></ul><ul><li>in India from 1999 to 2009 </li></ul><ul><li>Half the cars sold in India are Maruti Suzuki cars. </li></ul>
  4. 4. VISION STATEMENT <ul><li>The leader in “The Indian Automobile Industry”, Creating Customer Delight and Shareholder's Wealth, A pride of India. </li></ul>
  5. 5. <ul><li>Historious car is Maruti 800 “Change ur life” </li></ul><ul><li>Omni – 1984, “Fits all” </li></ul><ul><li>Gypsy – 1985 “King” </li></ul><ul><li>Wagon-R – 1999,”For the smarter race” </li></ul><ul><li>Alto – 2000, Currently the largest selling car in India. “Lets go” </li></ul><ul><li>Versa(2003) “The joy for travelling together” </li></ul><ul><li>Zen Estilo(2005) “ Shape ur world” </li></ul><ul><li>Swift (2005 Maruti Suzuki SX4 (May 2007) “Men are back” </li></ul><ul><li>Suzuki Grand Vitara Sports Utility Vehicle - July 2007. Imported “Play it your way” </li></ul><ul><li>Suzuki Alto (Sold in India as the Maruti A-Star) Launched in 2008 December. “Stop @ nothing” </li></ul>BRANDS OF MARUTI SUZUKI
  6. 6. <ul><li>The Gypsy targeted the paramilitary forces and the police. This resulted in complete control of Maruti over the market . </li></ul><ul><li>A special cell was made to make direct dealing of Gypsy with the government & the army. </li></ul>PRODUCT POSITIONING AND TARGET Product Line Products A1 800 A2 Alto, Zen ,Wagon –R, Swift, A-star A3 Esteem , Baleno UTILITY VEHICLE Vitara, Gypsy MULTI PURPOSE VEHICLE Omni, Versa
  7. 7. TARGETING : - SELECTIVE SPECIALIZATION TARGETING : - ON THE BASIS OF INCOME GROUP MARKET PRODUCT URBAN SEMI-URBAN RURAL A1 Yes Yes A2 Yes Yes Yes A3 Yes Yes Utility Vehicle Yes Multi Purpose Vehicle Yes Yes Yes INCOME GROUP PRODUCT Rs. 2-3 Lacs./Annum Rs. 3-5 Lacs./Annum Rs.5> Lacs./Annum A1 Yes A2 Yes Yes A3 Yes Utility Vehicle Yes Multi Purpose Vehicle Yes Yes Yes
  8. 8. POSITIONING PRODUCT Target Customers Benefits Value Proposition A1 A consumer who wants car. Durability and Performance A car which gives Durability in low cost. A2 A consumer who wants Small & spacious car. Spaciousness . A spacious small car without extra cost. A3 A consumer who wants more comfort car Design, Style and Luxury. A car design with style and luxury. Utility Vehicle Lifestyle Oriented consumers. Rigidness, Luxury and Comfort . A Vehicle that provides the luxury and Comfort of a car. Multi Purpose Vehicle A consumer who wants car for commercial use More spacious car. A big car with reasonable price
  9. 9. SWOT OF “MUL” <ul><li>Strength:- </li></ul><ul><li>MUL is in a leadership position in the market </li></ul><ul><li>Major strength of MUL is </li></ul><ul><li>having largest network of </li></ul><ul><li>dealers and after sales service </li></ul><ul><li>caters in the country. </li></ul><ul><li>Good promotional strategy is </li></ul><ul><li>adopted by MUL to transform </li></ul><ul><li>its thoughts to the people </li></ul><ul><li>about its products </li></ul><ul><li>Strong Brand Value </li></ul><ul><li>Availability of raw material </li></ul><ul><li>Loyal Customer Base is another big strength of MUL </li></ul><ul><li>Weaknesses </li></ul><ul><li>Low interior quality in side the </li></ul><ul><li>cars </li></ul><ul><li>Government intervention due </li></ul><ul><li>to having share in MUL. </li></ul><ul><li>Labour Laws and Labour </li></ul><ul><li>Unions are not in a good form </li></ul><ul><li>in India . </li></ul>
  10. 10. CONT… <ul><li>Opportunities </li></ul><ul><li>Big Market: Domestic and </li></ul><ul><li>Abroad </li></ul><ul><li>MUL has launched its LPG </li></ul><ul><li>version of Wagon R and it was </li></ul><ul><li>a good move simultaneously </li></ul><ul><li>MUL can start R&D on  electric </li></ul><ul><li>cars for a much better substitute of the fuel. </li></ul><ul><li>Economic growth of the </li></ul><ul><li>country is sound an promising in future </li></ul><ul><li>Threats </li></ul><ul><li>Tata Motors launched a car </li></ul><ul><li>with a price tag of Rs. 1 Lac </li></ul><ul><li>and that could give a big </li></ul><ul><li>impact on sales of MUL </li></ul><ul><li>China may give a good </li></ul><ul><li>competition as they are also </li></ul><ul><li>planning to enter into car </li></ul><ul><li>segment </li></ul>
  11. 11. MUL’S SALES PROMOTION CAMPAIGN WAS EFFECTIVE? <ul><li>Yes, It was effective:- </li></ul><ul><li>These campaign increase the sales of the company </li></ul><ul><li>These campaign will convert the 2 wheeler vehicle customer to 4 </li></ul><ul><li>wheeler. </li></ul><ul><li>Attract more and more customer. </li></ul><ul><li>It targets the lower and middle class people. </li></ul><ul><li>Increase the trust of the customer. </li></ul><ul><li>These campaign increase the customer satisfaction </li></ul><ul><li>Creating and maintaining the Brand Identity and Brand Image </li></ul>
  12. 12. DISCUSS THE STEPS MUL MUST TAKE TO PREVENT THE CANNIBALIZATION OF ITS SALES ? <ul><li>Price Differentiation </li></ul><ul><li>Extra Features </li></ul><ul><li>Positioning </li></ul><ul><li>Target Market </li></ul>
  13. 13. HOW CAN MUL DIFFERENTIATE ITS PROMOTIONAL CAMPAIGN BETWEEN ITS NEW AND PRE-OWNED / USED CAR MARKETS? <ul><li>Teacher Plus Scheme </li></ul><ul><li>“ Change Your Life” Campaign </li></ul><ul><li>Television Campaigns </li></ul><ul><li>“ 2599” offer </li></ul><ul><li>“ Do se Chaar” offer </li></ul><ul><li>Maruti “True Value” offer </li></ul>
  14. 14. IS NANO AFFECT THE SALES OF M-800? <ul><li>Maruti-800 </li></ul><ul><li>Price ~ 200000 </li></ul><ul><li>Old Design </li></ul><ul><li>Fuel Efficiency :- 17 kmpl </li></ul><ul><li>Trustworthy Car after sales service </li></ul><ul><li>Easy availability of spare parts </li></ul><ul><li>Service centre easily available </li></ul><ul><li>Provide fully customer </li></ul><ul><li>satisfaction </li></ul><ul><li>Tata Motors-Nano </li></ul><ul><li>Price ~ 100000 </li></ul><ul><li>Unique and trendy design </li></ul><ul><li>Fuel Efficiency:- 26 kmpl </li></ul><ul><li>Consumer in doubt whether </li></ul><ul><li>to buy it or not </li></ul><ul><li>Not easy availability of spare </li></ul><ul><li>parts </li></ul><ul><li>Comparatively less service </li></ul><ul><li>centre </li></ul><ul><li>Provide satisfaction but not as </li></ul><ul><li>Maruti </li></ul>
  15. 15. CONCLUSION <ul><li>Company change in strategy and emphasis on developing effective marketing communications. </li></ul><ul><li>Provide ranked highest in terms of its unique features. </li></ul><ul><li>MUL consistency performance over the past several years has </li></ul><ul><li>resulted in steady increase. </li></ul><ul><li>MUL topped the J.D. Power Asia Pacific 2005 Indian Customer </li></ul><ul><li>Satisfaction. </li></ul><ul><li>Esteem was picked as the best entry level car in the mid size </li></ul><ul><li>category </li></ul>

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