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„ Car Segments
„ Maruti Suzuki Portfolio
„ Strategies (Marketing and Promotion)
„ Competition
„ MarutiUdyog Limited (MUL) was established in
Feb 1981 through an Act of Parliament, to meet
the growing demand of a personal mode of
transport caused by the lack of an efficient public
transport system

„ MUL launched its first car Maruti Maruti800


800 on
december 14
14,,1983 at initial price of Rs
Rs.. 47,
47,500.
500.

Source: World Bank, Provided by GAIL India Ltd. (2001-02)


„ Suzuki Motor Company was chosen from seven prospective
partners worldwide. This was due not only to their undisputed
leadership in small cars but also to their commitment to
actively bring to MUL contemporary technology and Japanese
management practices . A license and a Joint Venture
agreement was signed between Govt of India and Suzuki
Motor Company (now Suzuki Motor Corporation of Japan) in
Oct 1982

„ Suzuki brought efficient management practices,better


technology and administration.

„ Initially Suzuki held the 26% stake in Maruti Suzuki .

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„ Maruti was the first company in India which studied the consumer
demand and responded to it well.
„ Market segmentation policy was adopted that targeted different type
of consumers with different type of models.
„ Maruti800 targeted medium income group,while the deluxe model
targeted rich income group.
„ Maruti van targeted businessmen and doctors(ambulance)
„ The Gypsy targeted the paramilitary forces and the police.
This resulted in complete control of maruti over the market .
„ The company advertised its different products according to costumers
e.g- maruti van was rechristened as Omni .
„ A special cell was made to make direct dealing of Gypsy with the
government & the army.
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„ The MUL depended more on its M800
model, so when in late 1990¶s the new
players like when Matiz, Santro and Indica
came into the market with more space and
better comfort ,at same price, then Maruti
lost a major share of market.

ß
„ After year 2000,(and 2003 to be more
precise)there was a change in automobile
market which where due to-
1. The government has reduced regulation on
the industry and more foreign players were
invited.
2. Banks and other financing companies
started providing car loans at reasonable
interest rate

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„ The Indian consumer now started buying
the mid-size cars rather than small cars
,the luxury cars also gained
popularity,SUV¶s also started coming in the
market.
„ The increasing level of income of urban
people ,the small cars were not considered
to be luxury item any more.


„ To gain back its lost share Maruti launched Zen ,Alto and
WagonR.These small segment car gained huge response for
consumers.
„ Maruti also launched aggressive promotional policy to promote them
like announcing Zen as the ³world¶s car´.
„ Maruti also made a slogan ³count on us´.To emphasize its reliability
„ In 2003 maruti came up with ³change your life campaign´ ,it provided
vehicle insurance at just Rs 1 to attract the customers.
„ advertisment such as of Alto in which a small boy says to his father
´papa ki karan petrol khatam hi nahi honda´ was make customer feel
that Alto was best fuel efficient.
„ During 2003 and 2004, MUL visualized and implemented a strategy
for its dealers to increase their profitability levels in view of increased
competition. According to the strategy, the 300-odd dealers of the
company were asked to strengthen their manpower, increase the
salaries of their sales agents, and offer them better incentives.

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„ During 2003 and 2004, MUL visualized and implemented a strategy
for its dealers to increase their profitability levels in view of increased
competition. According to the strategy, the 300-odd dealers of the
company were asked to strengthen their manpower, increase the
salaries of their sales agents, and offer them better incentives.
6 d d-In 2004, MUL introduced the '2599' offer under which a
consumer could buy an M-800 by paying an EMI of Rs 2,599 only,
for a period of seven years. The down payment was fixed at Rs
40,000. MUL entered into an agreement with the State Bank of India
(SBI), the largest bank in India, to promote this scheme
6 d
 d
To further penetrate into the market, MUL
continued to focus its efforts on the rural markets and specific target
groups. In 2004, it introduced the 'Teacher plus' scheme, in a tie-up
with SBI, aimed at teachers who were interested in buying a new car.

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„ The Maruti 800, has gone beyond just a car, it
has actually changed the lives and lifestyles of
countless people, by bringing the joy of motoring
to millions across the length and breadth of the
country
The alto is a great combination of economy ,
practicality and styling. A runaway success on
the roads of Europe, it exemplifies the
benchmark in build, quality and reliability in a
compact car. This is testified by the 24-hour
endurance record set on Aug 03, 2003 of
covering 3082 kms in 24 hours at an average
speed of 128kmph.
„ The Omni is truly India¶s original Multipurpose
vehicle. Today it is available in 6 Avtars ± 5
Seater, 8 Seater, Cargo, Ambulance, CNG and
LPG. It meets diverse needs across different
user segments and can double up both as a
people carrier and a goods carrier. This faithful
workhorse is easy on the pocket, yet tough on
the job.
„A Spanish expression for Style, the new Zen
Estillo stands true to its name. Its aerodynamic
body, unique bean shape, sparkling colors and
snazzy lights will rev up your style quotient. An
amazing blend of style and substance, its agile
nature will leave you enthralled.
„ Drivewith complete peace of mind. The word-
class safety features of the wagonR keep you
safe and secure, always. Wearing new vibrant
colors, the new wagonR is full of freshness
and energy to keep you charged up and
always to go.
„ 76% of Maruti cars are financed

„ 44% through ²  


, 12 % through SBI
and associate banks

„ In
year 2006-07, it added Mahindra Finance,
Magma Leasing , Cholamandalam and Axis
Bank.
FY FY
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„ Maruti 800
„ Omni
„ Alto
„ WagonR
„ Swift
„ Zen
„ Gypsy
„ Esteem
„ Versa
„ SX4
„ Grand Vitara
„ {YUNDAI SANTRO

‡
‡ TATA INDICA

„ C{EVY SPARK
 Santro rated ³Best Small Car´ in JD Power Asia Pacific Initial Quality and APPEAL
studies.
 European styling , power-assisted brakes, advanced suspension system and uniquely
responsive engine.
 Celebrity endorsed (Shahrukh Khan and Preity Zinta).
 {yundai had a national network of 300 sales and service outlets.
- The spares are expensive than that of Maruti

- TATA INDICA
 Car built for Indians by Indians
 Ambassador¶s internal dimension and Maruti 800¶s price with option of diesel engine
 {as a sleek fascia with chrome lined grill, clear lens illumination, muscled flares, flexible
seating and electronic instrumentation with tachometer.
 Cheaper and home grown spares.
 {as lowest running cost (around Rs. 2.06 /km)

Chevrolet Spark
General Motors rolled out its small car Chevrolet Spark in India as it takes on market leader
Maruti Suzuki.

 Rs 3.09 lakh (Ex-showroom Delhi) slightly lower than Maruti¶s Zen Estillo base model.
Improved cabin space
––
„ Dealer network across the country
A wide dealership network allows the company to service customers over a wider
geographical area than competitors. Currently, MUL has 500 sales outlets that cover
312 cities, as compared to 162 outlets of {yundai Motors and 140 outlets of Tata
Motors

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MUL providing its customers an opportunity to resale their car to MUL or exchange with a
new Maruti car under its ³True Value´ network has proven really beneficial. In FY07
True Value network touched 10000 units a month and more than 90% of that resulted
in the exchange of a new car

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In a car manufacturing plant, the press shop, paint shop, engine and transmission
assembly, and machine shop are used for manufacturing different modelsA presence
across various segments ensures that the company retains its existing customers by
offering them upgrades from its portfolio of models.

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„ {  
 
„ it has rationalised vendors from 370 in 1999-00 to 225 in 2005-06
has resulted in MUL enjoying the highest operating margins amongst
its peers

„ Commonality of platforms-
Commonality between the platforms of various models lead
to lower product development efforts and higher benefits
of economies of scale.uses only two platforms
Strong support in R & D and Product from parent - MUL¶s
strength lies in the strong parentage of SMC, Japan. The
Japanese SMC helps MUL in R&D and new model launches,
as the Indian subsidiary contributes more than 25% of the
parent net income. The company also has access to its
parent's product portfolio, , which allows it to launch the
latest products in domestic markets. Zen Estillo was
launched in a very short period of nine months with support
from the parent company.

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„ Maruti Suzuki is far behind in luxury and
SUV car ,the other player like
GM,TATA,Mahindra ,Mitsubhisi and Toyota
are already established in the market ,so
replacing them would not be easy.
„ MUL has been now emphasizing
consistently on it¶s ³Best customer
satisfaction´ car to keep an psychological
impact on costumers.
„ Advertisements targeting different
segments
„ Promotional offers through out the years
„ Psychographics is used :
‡ Wagon-R : Smarter people (executives)
‡ Omni : People who need to transport goods
‡ Alto : Small car : small family
‡ Zen Estillo : Young trendy people

–¤
„ The joint initiatives taken by Maruti and its
team of suppliers have generated over
29% cost reduction over three years for
Maruti
„ Less than 20 per cent of a car is
manufactured in-house. The rest is
accounted for by 215 suppliers and
hundreds of second and third tier of
vendors who, in turn, supply to them.
„ Maruti has launched two luxury models
SX4 in 2006 and A STAR in Nov 2008
,these two models are facing intense
competition from already established
companies.

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Thank You