A Case Study on Maruti’s Key To Success

1. An Analysis of a Case Study on
Maruti’s Key To Success

2. Unique Selling Point
• Fuel Efficient
• Compact in size
• Economical & Affordable
• High comfort
• Low maintenance cost
• Well spread Dealership and Service Centre
• Buyable from the car dealerships, used car dealers, car
websites and car owners
• Resell Value due to low maintenance cost

3. Strengths & Weaknesses

4. Strength
• Well segmented
• Continuous technical changes/ up-gradation
• Economical in Price with luxury
• Accessible services
• Affordable parts
• Strong foot-hold in Europe
• Japanese – Technology Standard worldwide
• Good promotional strategies

5. Continues……
• Customer Trust - loyalty
• Customized for Indian market
• Good Dealer Networking

6. Weakness
• Too heavily loaded towards low-end cars
• Perceived as Low priced small car
• Purchasing power of people is increasing due to
– urbanization
– nuclear family
– easy availability of finance etc.
Maruti is unable to position it perfectly in accordance
with these changes

7. Continues….
• Stretching old models for too long period
• Unable to match the standard with the strong
competitors like Hyundai
• 75% sales export in Europe, only 25% in other regions.
It means not properly marketing in these areas.
• For Business Class, Young rich, Maruti has not any
offering from its basket as they need Fashionable Cars
with X-factor

8. Critical Analysis

9. New Product Development Strategy
+Ve:
– Continuously upgrading the technology specifications
– Introducing new variants
– Segmentation
-Ve:
– Working in the same platform for too long time (face lift)
– Could have re-christened the cars with new prominent
developments
– Upper Middle class, Business class and Young rich need
‘Larger than Life’ cars

10. Low- Pricing Strategy
+Ve:
• Launched the product at almost the half of the price of
the competitors
• Low price encourage rapid product acceptance
-Ve:
• Middle class is growing at a faster pace, becoming
Tech-savvy. Price is secondary now, where as
High – Tech cars are in more demand.

11. Product Positioning Strategy
+Ve
• Targeted the customers, did Segmentisation
• Used communication tools properly
-Ve
• Targeted wrongly in case of few variants like Gypsy, Omni
etc.
– While Gypsy came as the ideal vehicle for the pursuit of adventure,
it was targeted to the Hospitals too
– Omni – Target customers are traders, hospitals etc., at the same
time it targeted the Upper & Middle class families

12. Challenges Ahead
• Consumers’ Expectation and Brand Promise should
always match
• Indian car market is flooded by Japanese, European &
US car makers whether entry-level, mid, premium or
luxury segments
• As lifestyle changes, need to keep pace with the
consumers’ lifestyle by bringing models - high on style,
with design quotient

13. Continuous focus on the followings will surely help
Maruti to continue to hold its Leadership position!
• Ensuring Customer Delight
• Increasing shareholders value
• Speeding up the production time
• Keeping the low-cost
• Its innovative promotional strategies

14. Questions….
By – Madhumita Phukan
phuhaz@gmail.com