1) Maruti Suzuki launched its new SUV model S-Cross in the Indian market 2 months ago and has sold around 4,000 units so far.
2) The document provides an analysis of Maruti Suzuki including its financial performance, products, marketing strategies, and human resource practices for its new S-Cross model.
3) Key details covered include the pricing and features of S-Cross variants, segmentation of target customers, analysis of direct and indirect costs, and the selection and training processes for new employees.
2. SECTOR INFORMATION
-Industry Size and Their Contribution to GDP
Automobile, 7.1Other Industry,
17.7
Agriculture, 17.4
Service, 56.9
Contribution to GDP from all
sector
Automobile Other Industry Agriculture Service
2 Wheeler
81%
Passenger
Vehicle
13%
Three Wheeler
3%
Commercial
vehicle
3%
Share percentage of all type
vehicle
2 Wheeler Passenger Vehicle Three Wheeler Commercial vehicle
3. SECTOR INFORMATION CONTD…
-Historical Growth & De-growth
68
55
59
64
69
0
20
40
60
80
2013 2014 2015 2016 2017
GROWTH/DEGROWTH
Growth/Degrowth
Reason For Growth and De-growth
-Problem in their cars airbag.
-Recalling around 800000 cars across
India
-Fault in Ignition Switch.
4. SECTOR INFORMATION CONTD…
-Porter’s Five Forces Model
Threat of new
entrants– High
• High Barriers
• Competition
level is high
Threat of
substitute-
High
• High Barriers.
• Presence of
multiple brands.
Bargaining
power of
supplier – Low
• Number of
supplier is high,
company can
switch easily to
another supplier
Bargaining
power of buyers
– High
• Varity of products
and same product
at low cost
available in the
market
Competitive
rivalry – High
• The MNC
companies are
giving very high
competition to
Indian
automobile
market
5. COMPANY INFORMATION
-Company Snapshot & news
• Maruti Suzuki Limited also known as Maruti Udyog Limited.
• Maruti Suzuki established by Sanjay Gandhi in 1981.
• In 1993 Maruti Suzuki launched their first car called Maruti 800.
• Maruti Suzuki has 47.2% of market share in automobile industry India.
• Japanees company Suzuki owned 56.21% of share of Maruti.
• In 2015 Maruti Suzuki launched NEXA for premium segment car.
1. Maruti Suzuki has planning to setting up a fresh new manufacturing branch for electric
vehicles.
2. Maruti Suzuki to start 15 Automobile Skill Enhancement Centre’s across India (25th May 2017).
3. Maruti Suzuki to launch three new models in the year 2017-2018.
4. Maruti Suzuki India plans engine upgrades, more model with automatic variants (24th May
2017).
5. Suzuki Motorcycle mulls 2nd plant in India (7th November 2017).
6. Maruti Suzuki Introduces Extended Warranty on All Cars up To 5 Years.
7. Top 6 carmakers clocked only 4% growth in October as GST jitters hit Diwali sales.
8. Maruti rides on its distribution clout, but capacity constraints may hit growth (21th Aug 2017).
9. Maruti Suzuki Q1 profit miss’s estimates hit by dealers' compensation, revenue up 16%.
6. COMPANY INFORMATION CONTD…
SWOT Analysis of the company
Weakness –
1)Inability to penetrate the to international
market
2)Maruti has not proved themselves in
SUV segment.
Strength –
1)Market Leader
2)Largest distribution
3)Strong brand value
Opportunity -
1)Developing electric cars
2)Target international markets
3)MUL can expand their swift into
premium segment.
Threat – 1)Government policy.
2)Increasing price of fuel.
3)Threat of MNC companies.
7. COMPANY INFORMATION CONTD…
Product & Services
Services:
• Maruti Insurance
• Maruti Finance
• Maruti True Value
• Maruti Genuine Accessories
• Maruti Driving School
S Cross
Baleno
Vetara Breeza
Ciaz
S-Cross
Swift
8. MARKETING
-SWOT Analysis
Strength:
• Very high Premium
look in very affordable
price.
• Inside space is very
big.
• Comes with Maruti
Suzuki smart Hybrid
technology which
reduce the fuel
efficiency.
• Strong distribution and
service network.
• Strong backing by the
Maruti Suzuki brand.
Weakness:
• No automatic variant
segment.
• Interior quality is very
low.
Opportunities:
Maruti Suzuki can
introduce automatic
version option for the car.
The look is very premium
but maruti can think about
the quality.
Leveraging the wide
distribution to acquire
newer customer.
Leveraging the presence in
SUV segment to extend
brand.
Threats:
• Other international
company’s product
like Hyundai Creta,
Renault Capture.
• Product innovations
and frugal engineering
by competitors.
• Increasing fuel cost.
9. MARKETING CONTD…
-Marketing Mix
Product – Maruti Suzuki S-Cross
Price: Maruti Suzuki S-Cross Comes with 4 variants as follows-
S-Cross Sigma DDiS 200 SH (Rs. 8.49 lakh)
Delta DDiS 200 SH (Rs. 9.39 lakh)
Zeta DDiS 200 SH (Rs. 9.98 lakh)
Alpha DDiS 200 SH (11.29 lakh)
Place: Company website/ Company Showroom/ Car Dekho.com/ Zigwheels/ Paytm booking
Promotion:
Advertising: Maruti Suzuki using NEXA brand to advertise their product into premium market.
The company is also using commercial ad for advertise the product, although there are also
other advertising campaign as follows:
Diwali Offer/ Festive offer/ Advertising Partners/ Sponsors.
10. -STP
STP Marketing is 3 step approach to build a targeted marketing plan. The “S” stands for
Segmentation, “T” stands for targeting & “P” stands for positioning.
Segmentation:
The segmentation step is the brainstorming activity. You list out all the potential market
segment you could target in marketing campaign.
Demographic:
AGE – Anybody of age above 18 years.
INCOME – Anybody with income of 7 lakhs per annum.
OCCUPATION – Employed as professional, Businessman.
SOCIAL CLASS – Upper middle, Middle class & Upper class.
Psychographic:
ATTITUDE – Ambitious, Price conscious
INTEREST – Premium look, SUV vehicle
Behavioral:
BENEFITS – Quality, Style
USER STATUS – Potential User & First time user.
READINESS STAGE – Those who are aware, informed, interest.
11. Targeting:
Targeted the middle class segment families, Price conscious people who wants more facilities
with an affordable price, adults who want to buy their first car.
Positioning:
Positioning as an affordable premium SUV car in Maruti Suzuki company.
As a fuel efficient car providing a comfortable drive.
As a more technological & user friendly car.
PLC:
A new product progresses through a sequence of
stages from development to introduction,
growth, maturity, and decline. This sequence is
known as the Product Life Cycle. In this graph
we can see that the Maruti Suzuki S-Cross is in
Introduction position in PLC graph, because
Maruti Suzuki S-Cross just launched 2 months
ago and introduced to the market. it sold around
4000 unit India.
Introduction
Research&
Development
Growth
Decline
STP CONTD…
Maturity
12. BUSINESS FINANCE
5.61360312
5
6.52600694
7
7.63534519
6
8.09940256
4
10.9666205
3
2013 2014 2015 2016 2017
NET PROFIT MARGIN
Observation:
From this graph we can see that the gross profit
margin increasing in 2016 then it slightly
decreasing in 2017, because the total expenses in
2017 increases as compare to 2016 that is why
the gross profit margin increasing in 2017.
21.0829623
9
23.2803514
4
24.5278263
6
27.6787169
7
26.6730833
2013 2014 2015 2016 2017
GROSS PROFIT MARGIN
Observation:
In this graph we can see that the Net profit margin
is increases because the company sales is increases
and the production of the company also increases
that is why the company’s net profit margin is
increasing.
- Gross Profit & Net Profit Margin
13. BUSINESS FINANCE CONTD…
-Direct Cost & Indirect Cost
33584.47 32682.61
36614.54
40676.2
49062.7
0
10000
20000
30000
40000
50000
60000
2013 2014 2015 2016 2017
Total Direct Expenses Total Indirect Expenses
Observation:
From the graph we can see that the direct expense is
higher than the indirect expense. The most important
thing is that the indirect expense and direct expense
both are increasing from last 5 years. In the direct
expense the raw material consumption, purchase of
trade goods, Employee cost is increased from
previous years that is why the direct expenses of the
company is increasing.
In the Indirect expense it is not increasing in very
high amount somehow it is constant. The tax and
other expense is also increasing but the interest
amount and depreciation is decreasing.
14. BUSINESS FINANCE CONTD…
11740.1
13411.8 14142.1 13774.7 14541.5
2013 2014 2015 2016 2017
TOTAL FIXED ASSETS The graph shows us that the company is
buying more land, machine or they are
investing their money into tangible asset and
intangible asset, that is why fixed asset is
increasing in 2017.
4218.5
6097.6
-625.1
-4140.5 -4621.4
2013 2014 2015 2016 2017
WORKING CAPITAL Observation: In this graph we can see that
the company has the negative working capital
that means the company is unable to meet its
short term liabilities with its current assets. The
current liabilities is more than the current asset
- Total Fixed & Working Capital
0.029221321
0.021946801
0.006108622
0 0
1 2 3 4 5
DEBT EQUITY RATIO Observation:
In 2016 and 2017 the DEBT Equity Ratio
is O, that means the company does not
have any long term borrowing loan.
- DEBT Equity Ratio
15. HUMAN RESOURCE CONTD…
-Skills Requirement & Sources of Recruitment
• Interpersonal Skill
• Analytical Skill
• Leadership Skill
• Problem Solving Skill
• Critical Thinking
• Decision Making Skill
• Team work
• Machinery knowledge
• Time management
• Conflict Management
• Perfect attendance
• Listening and following instruction
• Problem solving skills
• Man power management
• Technical knowledge
• Product knowledge
• ITI knowledge
Skills
Requirement
• College campus selection
• Job fair
• Walk in Interview
• Advertisement
• Employee Exchange
• Social media
• Online source
• Conference & Seminars
• Consulting
• Head Hunting
• Company Website
• Employment exchange
• Competitive examination
Internal Sources
• Personal Preference
• Examination
• Extension of service
• Internal trainees
• Pipeline candidates
• Recalls
• PPO
• I.J.P(Internal Job Posting)
• Transfer:
• The employees are transferred
from one department to
another according to their
efficiency and experience.
• Trade union
External Sources
16. HUMAN RESOURCE MANAGEMENT CONTD…
-Selection Process & Induction Process
Preliminary
Interview
Application
Form
Selection Test
Employment
Interview
Medical
Examination
Reference
Checks
Final Approval
Induction
Evaluation
Selection Process
• Overview of maruti suzuki company.
• Product range and positioning of each
segments.
• Providing the basic knowledge of
automobile industry.
• Providing all details about the job.
• Train the candidate in the job related
skill.
Induction Process
17. HUMAN RESOURCE MANAGEMENT CONTD…
-Types of Training, Performance Appraisal Method & Employee
Benefits
TYPESOFTRAINING
Product Program
Customer Care
Dealership
Management
Program
Branch Manager
Program
Role Playing
Management Games
The case study
method.
360 Degree Performance Appraisal Method
Self
Other
Boss
Superior
Boss
Internal
Customer
Supplier
Subordin
ates
Co-
workers
Employee Discount
Sick Pay
Health Insurance
Employee Benefits