1
By
Rohit Kumar
Indian Institute of Technology Bombay, Mumbai
Agenda
2
Indian Car Market before 1980
Maruti Udyog limited - 1980 with a mission of motorizing India
In 1982 Maruti Udyog limited entered into a joint venture agreement with
Suzuki Motors, Japan.
PREMIER PADMINI AMBASSADOR
3
1990
1987
Maruti went global by exporting 500 Cars to Hungry
Luxury hit Indian roads in the form of Maruti 1000
1985
1983
Launches Maruti 800
Journey so far..
1986
India learnt to go OFFRoad in Maruti Gypsy1984
India's first MUV Omni rolls out
Cumulative sales touched the mark of
100,000
4
2005
2002
Suzuki acquired majority stakes in
Maruti
Luxury + hatch back wasn’t a
distant dream with launch of swift
2000
1993
Hatch backs espoused comfort
in Maruti ZEN
Journey so far..
2001
Maruti became 1st Indian car
manufacturer to start customer care
centre
1994
Luxury reincarnated as Maruti Esteem
Maruti Opened True value stores for
pre-owned cars
2012
Ertiga – India's first Life Utility Vehicle
5
2007Maruti Rechristened as
Maruti-Suzuki
CURRENT SCENARIO
• Market share – 50 % in the Passenger Car Market
• Produces 1.5 million cars annually - a car every 12 seconds
• Product line- 7 hatchbacks, 2 sedans, 2 vans & 3 SUVs/MUVs
• 933 dealerships across 666 towns and cities
• 3013 service stations across 1449 towns and cities
• Ranks 91 in Forbes list of worlds 200 most reputed companies
• Bluebytes News, rated Maruti Suzuki as India's Most Reputed
Car Company in their Reputation Benchmark Study, April 2012.
Source : marutisuzuki.com
6
PERCEPTION MAPPING
A diagrammatic technique attempted at
visually displaying the perceptions of
customers / potential customers.
Typically the position of a product, product
line, brand, or company is displayed relative
to their competition.
7
8
SURVEY RESULTS
PERCEPTION
9
comfort
Value for money
O 15 30 50 70 80 95O153050708095
WAGONR
HYUNDAI i10
Based on marketing survey
PERCEPTION
10
comfort
Value for money
O 15 30 50 70 80 95O153050708095
DZIRE
AMAZE
Based on marketing survey
PERCEPTION
11
comfort
Value for money
O 15 30 50 70 80 95O153050708095
ERTIGA
DUSTER
Based on marketing survey
PERCEPTION
12
comfort
Value for money
O 15 30 50 70 80 95O153050708095
KIZASHI
ACCORD
Based on marketing survey
AD CAMPAIGNS
13
Maruti cars segmentation based on Price
Cost ( in Rs lakhs)
0 3 5 10 15 20
Economy Midrange Luxury Premium Super premium
14
Targeting
• Cars in economy segment are targeted for people having an annual
income of 3 lakhs.
• Cars in mid range segment are targeted for people having an
annual income of 3 – 5 lakhs.
• Cars in luxury and super premium segment are targeted for people
having an annual income greater than 5 lakhs.
15
Positioning
• Alto –Let’s Go- positioned as a India's most fuel efficient car
which can be afforded by lower income groups.
• WagonR – Inspired Engineering- positioned for people who lead
interesting lives. It gels with their lifestyle, reflecting confidence
& multifaceted personality.
• Swift – You’re the fuel- positioned as a car with style, modern
looks and young attitude
• Ritz – Live the moment - positioned for people who are
technologically inclined ( with K series engines)
• Swift Dzire – The heart car- positioned for the aspirational class
as an entry level sedan
• SX4 – Men are back – positioned as a powerful car for men who
want to be in control of the road
16
CUSTOMER PERCEPTION , COMPANIES POSITIONING
17
PRICE
VALUE FOR MONEY
-8
-6
-4
-2
0
2
4
6
8
-8 -6 -4 -2 0 2 4 6 8 10
Alto K10
Omni
Eeco
Stingray
A-star
Celerio
Grand vitara
Kizashi
Ertiga
Dzire
Swift
Ritz
Alto 800
Estilo
WagonR
SX4
Gypsy
SWOT Analysis
Strength
1. Brand name
2. Large distribution network
3. Wide product offerings
4. Better value for money
5. Technology driven
6. Almost all the vehicles follow ELV
Weakness
1. Lack of reach in SUV segment
2. Models failing in crash tests
3. Absence in higher end segment
Opportunity
1. Rise of economy.
2. Better export and import opportunity by
government.
3. Infrastructure (Roads and highways)
development plans by government.
Threats
1. Multiple player in the same sector.
2. Non-existence in high end section
3. Cannibalization
18
CHALLENGES
• Increasing market share of SUVs and Multi-purpose vehicles
• Poor sales, weak demand, big discounts, high inventory and
plant shutdowns have the industry making headlines for all the
wrong reasons
• Upholding the interest of minority stakeholders
• The issues and challenges confronting the organization facing
with labor unrest
• Current economic slowdown
• Second hand car market
19
FUTURE PLANS
20
THANK YOU
21

Maruti Suzuki

  • 1.
    1 By Rohit Kumar Indian Instituteof Technology Bombay, Mumbai
  • 2.
  • 3.
    Indian Car Marketbefore 1980 Maruti Udyog limited - 1980 with a mission of motorizing India In 1982 Maruti Udyog limited entered into a joint venture agreement with Suzuki Motors, Japan. PREMIER PADMINI AMBASSADOR 3
  • 4.
    1990 1987 Maruti went globalby exporting 500 Cars to Hungry Luxury hit Indian roads in the form of Maruti 1000 1985 1983 Launches Maruti 800 Journey so far.. 1986 India learnt to go OFFRoad in Maruti Gypsy1984 India's first MUV Omni rolls out Cumulative sales touched the mark of 100,000 4
  • 5.
    2005 2002 Suzuki acquired majoritystakes in Maruti Luxury + hatch back wasn’t a distant dream with launch of swift 2000 1993 Hatch backs espoused comfort in Maruti ZEN Journey so far.. 2001 Maruti became 1st Indian car manufacturer to start customer care centre 1994 Luxury reincarnated as Maruti Esteem Maruti Opened True value stores for pre-owned cars 2012 Ertiga – India's first Life Utility Vehicle 5 2007Maruti Rechristened as Maruti-Suzuki
  • 6.
    CURRENT SCENARIO • Marketshare – 50 % in the Passenger Car Market • Produces 1.5 million cars annually - a car every 12 seconds • Product line- 7 hatchbacks, 2 sedans, 2 vans & 3 SUVs/MUVs • 933 dealerships across 666 towns and cities • 3013 service stations across 1449 towns and cities • Ranks 91 in Forbes list of worlds 200 most reputed companies • Bluebytes News, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Study, April 2012. Source : marutisuzuki.com 6
  • 7.
    PERCEPTION MAPPING A diagrammatictechnique attempted at visually displaying the perceptions of customers / potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition. 7
  • 8.
  • 9.
    PERCEPTION 9 comfort Value for money O15 30 50 70 80 95O153050708095 WAGONR HYUNDAI i10 Based on marketing survey
  • 10.
    PERCEPTION 10 comfort Value for money O15 30 50 70 80 95O153050708095 DZIRE AMAZE Based on marketing survey
  • 11.
    PERCEPTION 11 comfort Value for money O15 30 50 70 80 95O153050708095 ERTIGA DUSTER Based on marketing survey
  • 12.
    PERCEPTION 12 comfort Value for money O15 30 50 70 80 95O153050708095 KIZASHI ACCORD Based on marketing survey
  • 13.
  • 14.
    Maruti cars segmentationbased on Price Cost ( in Rs lakhs) 0 3 5 10 15 20 Economy Midrange Luxury Premium Super premium 14
  • 15.
    Targeting • Cars ineconomy segment are targeted for people having an annual income of 3 lakhs. • Cars in mid range segment are targeted for people having an annual income of 3 – 5 lakhs. • Cars in luxury and super premium segment are targeted for people having an annual income greater than 5 lakhs. 15
  • 16.
    Positioning • Alto –Let’sGo- positioned as a India's most fuel efficient car which can be afforded by lower income groups. • WagonR – Inspired Engineering- positioned for people who lead interesting lives. It gels with their lifestyle, reflecting confidence & multifaceted personality. • Swift – You’re the fuel- positioned as a car with style, modern looks and young attitude • Ritz – Live the moment - positioned for people who are technologically inclined ( with K series engines) • Swift Dzire – The heart car- positioned for the aspirational class as an entry level sedan • SX4 – Men are back – positioned as a powerful car for men who want to be in control of the road 16
  • 17.
    CUSTOMER PERCEPTION ,COMPANIES POSITIONING 17 PRICE VALUE FOR MONEY -8 -6 -4 -2 0 2 4 6 8 -8 -6 -4 -2 0 2 4 6 8 10 Alto K10 Omni Eeco Stingray A-star Celerio Grand vitara Kizashi Ertiga Dzire Swift Ritz Alto 800 Estilo WagonR SX4 Gypsy
  • 18.
    SWOT Analysis Strength 1. Brandname 2. Large distribution network 3. Wide product offerings 4. Better value for money 5. Technology driven 6. Almost all the vehicles follow ELV Weakness 1. Lack of reach in SUV segment 2. Models failing in crash tests 3. Absence in higher end segment Opportunity 1. Rise of economy. 2. Better export and import opportunity by government. 3. Infrastructure (Roads and highways) development plans by government. Threats 1. Multiple player in the same sector. 2. Non-existence in high end section 3. Cannibalization 18
  • 19.
    CHALLENGES • Increasing marketshare of SUVs and Multi-purpose vehicles • Poor sales, weak demand, big discounts, high inventory and plant shutdowns have the industry making headlines for all the wrong reasons • Upholding the interest of minority stakeholders • The issues and challenges confronting the organization facing with labor unrest • Current economic slowdown • Second hand car market 19
  • 20.
  • 21.