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Group-11
Shubham Sachdeva (170103226)
Yakshi Gupta (170103284)
Shubhendu Mahajan (170102139)
Vaibhav Padale (170103267)
Tejaswi Atluri (170102149)
Srikanth Akella (170103283)
Maruti Suzuki India Limited
• Formerly known as Maruti Udyog Limited
• Subsidiary of Suzuki Motor Corp(SMC) which holds about 56.21% stake in the company
• Market Leader in the Passenger Vehicle Segment with a market share of 47.4%
• Strong Network - 2020 sale outlets and 3,305 service centres across 1,652 cities
• Maruti Suzuki has been known as the Common Man’s Car in India due to its cost-effectiveness
along with fuel efficiency and quality
• Maruti Suzuki has focussed on the true value that is offered to the customers in the form of
performance, efficiency , environment friendliness and low cost of ownership.
3Source : Maruti Suzuki India Limited Annual Report 2016-17
Financial Health
3
0.0% 10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%
Material Cost
Employee Cost
Mfg, Admin&Other Exp
Selling & Distribution Exp
Other Income
EBDITA
Interest
Depreciation
PBT
Effective Tax Rate(Tax/PBT)
PAT
Profit & Loss Ratio % to Net Sales (2015-16)
Source : Maruti Suzuki India Limited Annual Report 2015-16 & 2016-17
Market Summary
• The Passenger Vehicle segment in India is growing at a CAGR of 10.09%.
• The Indian Passenger Car Market is expected to reach up to 4 million units in 2020 up from 2.6
million units in 2014-15
• Maruti Suzuki Baleno accounted for about 11% of the total sales of MSIL for the year 2016-17
4
2629839
2665015
2503509
2601236
2789208
3046727
3372727
3733609
4133105
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17
2017-
18
2018-
19
2019-
20
PASSENGER VEHICLE
TRENDS IN INDIA
Source:http://www.siamindia.com/
PESTLE Analysis
POLITICAL 1.Government’s Automotive Mission Plan which aims to make India as the 3rd Largest
market
2. Government of India has allowed 100% FDI in Automobile sector in India
ECONOMICAL 1.Rise in per capita income GDP from USD1430.19 to USD 2128.78 in 2018
2.Easy loan Availability from different financial institutions at low rate of interest
3.Rising Disposable incomes of the Indian Middle Class
SOCIAL 1. Higher aspirations from the younger population for an improved lifestyle
2. Changing customer tastes and preferences in terms of looking for more than just fuel-
efficient and low-cost cars.
TECHNOLOGICAL 1.Increase in the use of embedded technologies to improve safety while driving
2.Implementation of green technologies to improve Fuel-efficiency and to switch to Electric
Vehicles and also LPG/CNG and Hybrid engines.
LEGAL 1.More Legal compliance measures initiated to improve passenger safety
2. Implementation of GST will help improve profitability and margins
ENVIRONMENTAL 1.Ban of BS-III vehicles by the Supreme court to shift the companies to use BS-IV engines.
2.MSIL introduced environment friendly options for a number of its products.
SWOT PUZZLE
STRENGTHS (+)
• Strong brand image
• Great Market Position with more
than 47% Market Share
• Efficient and Extensive
Distribution Network
• Promotional Strategies
• Strong Parent Backing
WEAKNESSES (–)
• Dip in product Quality may
impact brand image and sales
performance
• Frequent Labor Clashes hits
the production capacity and
thus the financial health
OPPORTUNITIES (+)
• Expansion of automotive
manufacturing industry due to
different Social Factors.
• Green cars and Electric cars
• Strategic Manufacturing
Agreement with Suzuki Motor
Corp will help MSIL increase
production capacity to 2 million
by 2020
THREATS (–)
• 100% FDI will bring in new
competition into the industry
• Environmental Regulations
such as BS-III ban in the past
can effect the profitability of the
company
S
O
W
T
Competitor Analysis
1. The Major competitors for MSIL in Passenger
Vehicle segment are :
• Hyundai Motor India with a market share of
16.72%
• Mahindra and Mahindra with a market share of
7.75%
• Tata Motors with a market share of 5.66%
2. 100% FDI allowed in the Manufacturing vehicles
and automotive parts in the country
3. The major competition for Baleno in PV segment
lies from Hyundai i20 and Volkswagen P Jazz
7Source: http://auto.economictimes.indiatimes.com
Porter’s Five Forces
8
 Low – Bargaining power of suppliers
is low as most of the auto component
manufacturers are specialised in
some segments related to only one
client.
Bargaining Power of Suppliers
Threat of Substitutes
 Low – The threat from substitute
products continues to be low, with
public transportation being under
developed even in cities.
 High – The competition has turned
more intense after the entry of foreign
players like Volkswagen and Ford with
their changed designs to cater to
Indian market.
Competitive Rivalry
 Moderate – The threat of new entrants
is generally medium because of the
brand equity and capital intensive
nature of the business.
Threat of New Entrants
 High – In a market, like India there is
lot of bargaining power available to the
customers as there are variety of
products available in the same range,
by different manufacturers.
Bargaining Power of Buyers
Positive Impact
Neutral Impact
Negative Impact
Segmentation
9
Demographic 1. Age – The Market is segmented into Young, Middle-Aged and Seniors.
All the three different segments have different tastes and preferences
while looking for a car.
2. Income- This can be categorised into High , Medium and Low Income
groups.
Psychographic 1. Can be categorized into Thinkers, Achievers and Experiencers based on
the inspiration level. Those motivated by Achievement look for products
that demonstrate success to others. Also Experiencers are the ones who
have high resources and the need for variety and risk.
Behavioural 1. Can be categorized into Enthusiasts and Traditionalists based on the
needs and benefits that a consumer feels are valuable. Enthusiasts are
ready to try new things while Traditionalists have high brand loyalty and
feel satisfied with their current products.
Targeting
10
Demographics The Target Market for Baleno would be Younger Population in the High
Income Group. This group has high disposable incomes and looks for a
car in the premium segment with better
Psychographic Based on the Psychographic Segmentation , Achievers and Experiencers would
be the Target Market .Baleno is formed to grab attention and thus these
segments are the perfect Target Markets for Baleno
Behavioural Baleno is based on new Experiences that it has to offer thus Enthusiasts are the
segment which is the Target for Baleno.
11
Brand Mantra:
Made of Mettle
Points-of-Parity
Points-of-
Difference
Substantiators
Values/Character
Visual Identity
Customer Takeaway:
1.Improved Fuel Efficiency
2.New Premium Vehicle
3.Engine Efficiency
Performance Finance
Availability
Proximity
Projector
Head Lamps
Crash
Resilience
TECT
Technology
DDiS
190
Engine Brand ImageStrong
Distribution
Network
Customer Target
and Insight
A person who is
looking for a vehicle
that has elegance as
well as speed and is
ready for new
experiences
Consumer Need
State
Desire for buying a
premium car with
latest technology and
features
Bull’s Eye Positioning
Competitive
Product Set
Hyundai i20
Volakwagen P Jazz
Strength
Elegance
Energy
Liquid Flow
Design
Chrome
Outshine
Four Actions Framework- Blue Ocean Strategy
12Source : https://www.linkedin.com/pulse/nexa-blue-ocean-strategy-maruti-suzuki-answer-challenges-singh
Marketing Mix Diagram
The Pricing of the
Product offering at Nexa
are in-line with the
competition and
sstrategically decided
Product offering
includes premium
keeping in mind the
tastes & preferences of
the Target Group
The promotions are
focused around the
experience that NEXA
has to offer
Nexa showrooms are
strategically placed in
Metros and Tier-2
cities
Target
Market
Product Price
Place Promotion
13
252 Outlets in
152 Cities till
July,2017
Unique ,
Differentiated
and Value
offering Cars
Dependent upon
Competitors, Market
Dynamics and
Segment
Use of Traditional
and Online
Marketing with
focus on changing
Lifestyle
Sales Forecast
14
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Maruti Suzuki India Limited Sales Projection 1. The sales for the passenger
grew by 14.68% in April
2. The Domestic sales of passenger
vehicles are expected to increase at a
CAGR of 12.87% between 2016-2026.
15

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Marketing strategy of Maruti Nexa

  • 1. Group-11 Shubham Sachdeva (170103226) Yakshi Gupta (170103284) Shubhendu Mahajan (170102139) Vaibhav Padale (170103267) Tejaswi Atluri (170102149) Srikanth Akella (170103283)
  • 2. Maruti Suzuki India Limited • Formerly known as Maruti Udyog Limited • Subsidiary of Suzuki Motor Corp(SMC) which holds about 56.21% stake in the company • Market Leader in the Passenger Vehicle Segment with a market share of 47.4% • Strong Network - 2020 sale outlets and 3,305 service centres across 1,652 cities • Maruti Suzuki has been known as the Common Man’s Car in India due to its cost-effectiveness along with fuel efficiency and quality • Maruti Suzuki has focussed on the true value that is offered to the customers in the form of performance, efficiency , environment friendliness and low cost of ownership. 3Source : Maruti Suzuki India Limited Annual Report 2016-17
  • 3. Financial Health 3 0.0% 10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0% Material Cost Employee Cost Mfg, Admin&Other Exp Selling & Distribution Exp Other Income EBDITA Interest Depreciation PBT Effective Tax Rate(Tax/PBT) PAT Profit & Loss Ratio % to Net Sales (2015-16) Source : Maruti Suzuki India Limited Annual Report 2015-16 & 2016-17
  • 4. Market Summary • The Passenger Vehicle segment in India is growing at a CAGR of 10.09%. • The Indian Passenger Car Market is expected to reach up to 4 million units in 2020 up from 2.6 million units in 2014-15 • Maruti Suzuki Baleno accounted for about 11% of the total sales of MSIL for the year 2016-17 4 2629839 2665015 2503509 2601236 2789208 3046727 3372727 3733609 4133105 2011- 12 2012- 13 2013- 14 2014- 15 2015- 16 2016- 17 2017- 18 2018- 19 2019- 20 PASSENGER VEHICLE TRENDS IN INDIA Source:http://www.siamindia.com/
  • 5. PESTLE Analysis POLITICAL 1.Government’s Automotive Mission Plan which aims to make India as the 3rd Largest market 2. Government of India has allowed 100% FDI in Automobile sector in India ECONOMICAL 1.Rise in per capita income GDP from USD1430.19 to USD 2128.78 in 2018 2.Easy loan Availability from different financial institutions at low rate of interest 3.Rising Disposable incomes of the Indian Middle Class SOCIAL 1. Higher aspirations from the younger population for an improved lifestyle 2. Changing customer tastes and preferences in terms of looking for more than just fuel- efficient and low-cost cars. TECHNOLOGICAL 1.Increase in the use of embedded technologies to improve safety while driving 2.Implementation of green technologies to improve Fuel-efficiency and to switch to Electric Vehicles and also LPG/CNG and Hybrid engines. LEGAL 1.More Legal compliance measures initiated to improve passenger safety 2. Implementation of GST will help improve profitability and margins ENVIRONMENTAL 1.Ban of BS-III vehicles by the Supreme court to shift the companies to use BS-IV engines. 2.MSIL introduced environment friendly options for a number of its products.
  • 6. SWOT PUZZLE STRENGTHS (+) • Strong brand image • Great Market Position with more than 47% Market Share • Efficient and Extensive Distribution Network • Promotional Strategies • Strong Parent Backing WEAKNESSES (–) • Dip in product Quality may impact brand image and sales performance • Frequent Labor Clashes hits the production capacity and thus the financial health OPPORTUNITIES (+) • Expansion of automotive manufacturing industry due to different Social Factors. • Green cars and Electric cars • Strategic Manufacturing Agreement with Suzuki Motor Corp will help MSIL increase production capacity to 2 million by 2020 THREATS (–) • 100% FDI will bring in new competition into the industry • Environmental Regulations such as BS-III ban in the past can effect the profitability of the company S O W T
  • 7. Competitor Analysis 1. The Major competitors for MSIL in Passenger Vehicle segment are : • Hyundai Motor India with a market share of 16.72% • Mahindra and Mahindra with a market share of 7.75% • Tata Motors with a market share of 5.66% 2. 100% FDI allowed in the Manufacturing vehicles and automotive parts in the country 3. The major competition for Baleno in PV segment lies from Hyundai i20 and Volkswagen P Jazz 7Source: http://auto.economictimes.indiatimes.com
  • 8. Porter’s Five Forces 8  Low – Bargaining power of suppliers is low as most of the auto component manufacturers are specialised in some segments related to only one client. Bargaining Power of Suppliers Threat of Substitutes  Low – The threat from substitute products continues to be low, with public transportation being under developed even in cities.  High – The competition has turned more intense after the entry of foreign players like Volkswagen and Ford with their changed designs to cater to Indian market. Competitive Rivalry  Moderate – The threat of new entrants is generally medium because of the brand equity and capital intensive nature of the business. Threat of New Entrants  High – In a market, like India there is lot of bargaining power available to the customers as there are variety of products available in the same range, by different manufacturers. Bargaining Power of Buyers Positive Impact Neutral Impact Negative Impact
  • 9. Segmentation 9 Demographic 1. Age – The Market is segmented into Young, Middle-Aged and Seniors. All the three different segments have different tastes and preferences while looking for a car. 2. Income- This can be categorised into High , Medium and Low Income groups. Psychographic 1. Can be categorized into Thinkers, Achievers and Experiencers based on the inspiration level. Those motivated by Achievement look for products that demonstrate success to others. Also Experiencers are the ones who have high resources and the need for variety and risk. Behavioural 1. Can be categorized into Enthusiasts and Traditionalists based on the needs and benefits that a consumer feels are valuable. Enthusiasts are ready to try new things while Traditionalists have high brand loyalty and feel satisfied with their current products.
  • 10. Targeting 10 Demographics The Target Market for Baleno would be Younger Population in the High Income Group. This group has high disposable incomes and looks for a car in the premium segment with better Psychographic Based on the Psychographic Segmentation , Achievers and Experiencers would be the Target Market .Baleno is formed to grab attention and thus these segments are the perfect Target Markets for Baleno Behavioural Baleno is based on new Experiences that it has to offer thus Enthusiasts are the segment which is the Target for Baleno.
  • 11. 11 Brand Mantra: Made of Mettle Points-of-Parity Points-of- Difference Substantiators Values/Character Visual Identity Customer Takeaway: 1.Improved Fuel Efficiency 2.New Premium Vehicle 3.Engine Efficiency Performance Finance Availability Proximity Projector Head Lamps Crash Resilience TECT Technology DDiS 190 Engine Brand ImageStrong Distribution Network Customer Target and Insight A person who is looking for a vehicle that has elegance as well as speed and is ready for new experiences Consumer Need State Desire for buying a premium car with latest technology and features Bull’s Eye Positioning Competitive Product Set Hyundai i20 Volakwagen P Jazz Strength Elegance Energy Liquid Flow Design Chrome Outshine
  • 12. Four Actions Framework- Blue Ocean Strategy 12Source : https://www.linkedin.com/pulse/nexa-blue-ocean-strategy-maruti-suzuki-answer-challenges-singh
  • 13. Marketing Mix Diagram The Pricing of the Product offering at Nexa are in-line with the competition and sstrategically decided Product offering includes premium keeping in mind the tastes & preferences of the Target Group The promotions are focused around the experience that NEXA has to offer Nexa showrooms are strategically placed in Metros and Tier-2 cities Target Market Product Price Place Promotion 13 252 Outlets in 152 Cities till July,2017 Unique , Differentiated and Value offering Cars Dependent upon Competitors, Market Dynamics and Segment Use of Traditional and Online Marketing with focus on changing Lifestyle
  • 14. Sales Forecast 14 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Maruti Suzuki India Limited Sales Projection 1. The sales for the passenger grew by 14.68% in April 2. The Domestic sales of passenger vehicles are expected to increase at a CAGR of 12.87% between 2016-2026.
  • 15. 15