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Portfolio planning matrix maruti suzuki 2019
- 1. Study on Maruti Suzuki SBUs and Recommendations By: Paritosh Dhondiyal
- 2. Maruti Suzuki Study Following are the key considerations to select MSIL for Study • Market leader since decades in Passenger vehicle (PV) segment in India . Founded in 1982 • Current Market share in PV segment=50% despite of stiff completion from home grown and foreign players. • It is said in passenger cars others compete for position 2, 3, 4 and other positions in the market. • High returns to shareholders is consistent.
- 3. Approach Followed Identification of MSIL SBUs Understanding each SBUs and Product Portfolio Analysing SBU and Market trends BCG Matrix SBU level Understanding core Product (MSIL Models) and market trends BCG Matrix Product level Recommendations For further marketing growth Open the thinking Hat!!!!
- 4. S U B S I D A R I E S Maruti Suzuki S A L E S C H A N N E L S Nexa (Premium) Arena (entry to mid ) Commercial True value (used car) P R O F I T C E N T R E S Maruti Finance Maruti Insurance Maruti Suzuki Genuine Accessories Maruti Suzuki leasing Maruti Suzuki Genuine Parts Institutional customers JJ Impex Delhi Pvt. Ltd. **Auto ancillaries like Jay Bharat Maruti are also part of profit centres of MSIL and are a part of balance sheet , however only key Final customer facing business are identified for study. MSIL SBUs identified ( 3 Sales Channels , 6 Profit centres , 2 Subsidiaries)
- 5. S-cross Ciaz Ignis Baleno Sales channel NEXA: premium ( primary focus sales and service experience, secondry products) Celebrity endorsement • Started in July 2015 • Class , beauty , balance , aesthetics • Premium events , promotion • Premium showrooms • Dedicated relationship manager • Priority service • Safety ,convenience ,comfort features like dual airbags ,ABS Nexa Blue :A signature shade created exclusively for Nexa Its Premium Not middleclass
- 7. Alto range Swift Wagon R Celerio Sales Channel Arena : Value for money , economy products Primary focus : Products Celebrity endorsement Dzire Ertiga Brezza Gypsy Omni Eeco Hatch Sedan MUV SUV VAN
- 8. Basic Lounge and café in Arena
- 9. Sales Channel Commercial: Business and Basics needs addressed in Cargo Business Pragati Loyalty Program • New Business in Commercial vechicle space started 2017 because of growing Last mile CV market in India, • Last mile cargo transport business dominated by Tata and Mahindra • Super Carry is only product sold through Non car dealer network that is still under rampup • Silent promotion (no electronic media , no Celebrity promoter) • Stage wise regional launch done for the product • Capitalisation of Brand Maruti
- 10. Maruti Finance Maruti Insurance Maruti Suzuki Genuine Accessories Maruti Suzuki Genuine Parts Integration Of business opportunities for vehciles sold through sales channels Convinence Convinence Trust Convenience Trust Convenience -All under one roof i,e. sales channels - With Single frontend facing customer , multiple backend serving customer -No specific sales promotion Profit centres : Maruti Finance , Maruti Insurance , Genuine accessories , Genuine parts
- 11. Profit Centre Maruti Suzuki leasing : Convenience at doorstep Hastle free acquisition and mainainence • car leasing and fleet management service from Maruti Suzuki, • specially designed for entrepreneurs and corporate entities. • offer all-inclusive services like vehicle acquisition, insurance, maintenance and value added services giving customers an end- to-end experience. • For Corporate and Retail customers Retail customers: small and medium enterprises and self employed professionals
- 12. Subsidiary True value : its trust (used /refurbished vehicles ) • Verified car History • 376 Quality checks • Hassle free Documentation • Find out at web ,Buy at store • 1 yr warrenty Celebrity endorsement Used Car business : • Market growing at 50% growth rate ( source : Times of India 8,Nov,2018) • Maruti Biggest Organised player in the business
- 13. Subsidiary J Impex Delhi Pvt. Ltd: Service : Business of repair and service of Maruti automobiles, :Sale of spare parts and accessories of motor vehicles and sale and purchase of automobiles. Maruti Udyog is setting up a chain of model workshops across the country to be a one-stop shop for maintenance, service, spares, accessories and insurance-related services and attention to warranty claims, under the brand name of Maruti Service Masters (MSM). *At present, there are three MSM outlets in the country, with two in Delhi and one in Chennai. * The decision to set up a network of MSM outlets across the country was taken after the good response to the first MSM outlet in Delhi.
- 14. SBU MSIL Market presence Overall Market trend Remarks BCG Matrix conclusion Arena Leader Growing Almost all products are leader. Segments is growing Star Nexa Trailing Growing Only Baleno is leader Question Marks True value Leader High Growth Maruti Suzuki is leader Star Commercial Trailing Growing MSIL has just started in this business Question Marks Maruti Finance Leader Growing Finance Arm , linked with car sales.Although volume is increasing but market share of maruti cars is going down from 60% to 50%. Cash cow Maruti Insurance Leader Growing Insurance Arm , linked with car sales.Although volume is increasing but market share of maruti cars is going down from 60% to 50% Cash cow Maruti Suzuki Genuine Accessories Leader Growing MSIL has focussed on this business, no data awailabile from authentic sources about share.But is contributing to bottom line Cash cow Maruti Suzuki Genuine Parts Leader Growing This business is linked with car sales Cash cow JJ Impex Solutions Leader Growing This business is linked with car sales Star Maruti Suzuki leasing No concrete information In public domain Growing No authentic data for comparing the market position, but this is growing business Question Marks Maruti Suzuki institutional Sales No concrete information In public domain Steady No authentic data for comparing the market position.Business growth is stagnant Dog Maruti Suzuki SBUs Market presence , market trend and BCG matrix placement
- 15. M A R K E T G R O T H M A R K E T S H A R E LOW HIGH HIGH MARUTI SUZUKI SBU LEVEL BCG MATRIX Nexa commercial Maruti Suzuki leasing Arena True value JJ Impex Financial Accounts Question Marks Stars Institutional sales Dogs Maruti Finance Maruti Insurance Maruti Suzuki Genuine Accessories Maruti Suzuki Genuine Parts Cash Cows
- 16. Segment wise position of Maruti models *Data Source = Team BHP January 2019 Sales trends
- 17. Segment wise position of Maruti models *Data Source = Team BHP January 2019 Sales trends
- 18. Segment wise trends for last 3 yrs 0 5000 10000 15000 20000 25000 30000 35000 40000 B1 segment trend 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 B2 segment trend 0 10000 20000 30000 40000 50000 60000 C1 segment trend 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 A Segment trend 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 UV segment trend Trend conclusions from graphs • A-mild reducing • B1-increasing • B2-increasing • C1-mild reducing • C2 -increasing • UV-reducing 0 10000 20000 30000 40000 50000 60000 70000 80000 C2 Segment trend *Data Source = Team BHP sales no.s last three years
- 19. Conclusion: Maruti Suzuki Models Market presence , market trend and BCG matrix placement Above conclusion done based on data for segment wise position of MSIL model and segment trends Model Sales no.s Segment MSIL Market presence Overall Market trendBCG Matrix conclusion Alto 23360 A Leader mild reducing Cash cow Celerio 9217 B1 Leader (2nd Rank) increasing Star Wagon-R 10048 B1 Leader increasing Star Baleno 13172 B2 Leader (2nd Rank) increasing Star Ignis 1721 B2 Trailer increasing Question mark Swift 18795 B2 Leader increasing Star Dzire 19073 C1 Leader mild reducing Cash cow Brezza 11749 C2 Leader increasing Star Ciaz 2934 C2 Trailer increasing Question mark S-Cross 2420 C2 Trailer increasing Question mark Eeco 9063 Utility Leader reducing Cash cow Ertiga 6352 Utility Leader (2nd Rank) reducing Cash cow *Gypsy 486 Utility Leader reducing Dog Omni 6082 Utility Leader (4nd Rank) reducing Cash cow *Gypsy placed as Dog as this particular vehicle demand is almost negligible and is historic model which was earlier produced in bulk and has achieved Payback long ago in 1990s
- 20. M A R K E T G R O T H M A R K E T S H A R E LOW HIGH MARUTI SUZUKI SBU LEVEL BCG MATRIX Question Marks Stars Dogs Cash Cows S-cross Ciaz Ignis Swift Wagon RCelerio Brezza Baleno Gypsy Alto range Dzire Ertiga Omni Eeco HIGH
- 21. Recommendations: *From BCG matrix we can see that Ciaz , Ignis and Scross (products sold through Nexa) are coming in the category of Question mark despite of focus on buying and service experience , hence it looks that customer need identification in terms of product is missing and hence , a customer need oriented product refreshes to be done for these products or else these products to be replaced by new customer need centric product launches (i.e. new models) * Products Sold through Arena and one product Breza from Nexa are under the category of stars and cash cows, hence current efforts to be sustained with added reinforcement of market feedback and product modification(refresh) response loop. *True Value is a SBU in Star category hence , efforts to be sustained along with an eye on the market. *Commercial Vehcile is a new SBU for market hence more focus will be needed for value delivery processes which means more focus on dealerships and quick response for market feedback coming from product. * Other profit centres like maruti insurance , finance, accessories , spare parts , service are linked with car sales , hence MSIL to continue the existing practices , however innovations and improvements in these services may help the car sales * Leasing is Question Mark , with other organised players emerging , hence this area can also be focussed if management want to invest in this non core business *Institutional sales SBU and Gypsy product are under Dogs category , hence can continue without specific effort.
- 22. Backup Year On Year Segment wise data :