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 A STUDY OF MARKETING STRATEGIES OF  BY PRATHAM JUNEJA BBA-B 4 TH SEMESTER ROLL NO.113 1

A Study of Marketing Strategies of Maruti Swift

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A STUDY OF MARKETING STRATEGIES OF 

BY PRATHAM JUNEJA

BBA-B

4TH

SEMESTER

ROLL NO.113

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ACKNOWLEDGEMENT

We wish to express our sincere thanks toProf. Mr. SANJAY MANOCHA, FACULTY- BHARATIVIDYAPEETH UNIVERSITY’S INSTITUTE OFMANAGEMENT AND RESEARCH for giving us theopportunity to work on the marketing plan of a company.This has given us the insight of how the various theoreticalconcepts are applied in an organization.  I got theopportunity to do a challenging project in MARUTI UDYOGLIMITED. The project is the important part of our study andgives us a real practical exposure to the corporate world.I also thank to Dr. Sachin S. Vernekar, Director,BHARATI VIDYAPEETH UNIVERSITY INSTITUTE OFMANAGEMENT & RESEARCH for giving me chance toget such an experience and giving me chance to get anindustrial experience.

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  INDEX

S.No. Topics Page No.1. Introduction 5

1.1 Indian Automobile Industry 51.2 History 51.3 Overview 62. An Introduction to Maruti Udyog Ltd. 142.1 Products of Maruti Suzuki 162.2 Competitors of Maruti Udyog Ltd. 183. Competitors of Maruti Suzuki Swift 204. Marketing Mix 21

5. Swot Analysis 256. Research Methodology 376.1. Objectives of the Study 406.2. Data Collection Tools 416.3. Limitations 427. Analysis 438. Conclusions & Recommendations 479. Annexure 489.1. Bibliology 489.2. Questionnaire 49

INTRODUCTION

INDIAN AUTOMOBILE INDUSTRY

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One of the major global automotive industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth. Following the economic reforms of 1991 the Indian automotive industry has demonstrated sustainedgrowth as a result of increased competitiveness and relaxed restrictions. The monthly

sales of passenger cars in India exceed 100,000 units

History

In 1953, the government of India and the Indian private sector initiated manufacturing processes to help develop the automobile industry, which had emerged by the 1940s ina nascent form. Between 1970 to the economic liberalization of 1991, the automobileindustry continued to grow at a slow pace due to the many government restrictions. Anumber of Indian manufactures appeared between 1970-1980. Japanese manufacturersentered the Indian market ultimately leading to the establishment of Maruti Udyog. A

number of foreign firms initiated joint ventures with Indian companies.Timeline of Indian automobile industry:

• 1897 First Person to own a car in India - Mr. Foster of M/s Crompton GreavesCompany, Mumbai

• 1901 First Indian to own a car in India - Jamshedji Tata • 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata • 1905 Fiat Motors• 1911 First Taxi in India• 1924 Formation of traffic police • 1928 Chevrolet Motors• 1942 Hindustan Motors • 1944 Premier Auto Limited• 1945 Tata Motors• 1947 Mahindra Motors• 1948 Ashok Motors• 1948 Standard Motors • 1974 Sipani Motors • 1981 Maruti Udyog • 1994 Rover Motors• 1994 Mercedes Benz• 1994 Opel• 1995 Ford Motors• 1995 Honda SIEL• 1995 Reva Electric Car Company• 1995 Daewoo Motors• 1996 Hyundai Motors • 1997 Toyota Kirloskar Motors• 1997 Fiat Motors (Re-Entry)• 1998 San Motors• 1998 Mitsubishi Motors • 2001 Skoda Auto • 2003 Chevrolet Motors (Re-Entry)

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Following the economic reforms of 1991, the automobile section underwentdelicensing and opened up for 100 percent Foreign Direct Investment. A surge ineconomic growth rate and purchasing power led to growth in the Indian automobileindustry, which grew at a rate of 17% on an average since the economic reforms of 1991. The industry provided employment to a total of 13.1 million people as of 2006-

07, which includes direct and indirect employment. 

The export sector grew at a rate of 30% per year during early 21st century. However, the overall contribution of automobile industry in India to the world remains low as of 2007. Increased presenceof multiple automobile manufacturers has led to market competitiveness andavailability of options at competitive costs. India was one of the largest manufacturersof  tractors in the world in 2005-06, when it produced 2,93,000/- units. India is alsolargely self-sufficient in tyre production, which it also exports to over 60 other countries. India produced 65 million tyres in 2005-06.

Overview

Pran Tiku (2008)—on the subject of automobile industry in India—holds:

India’s car market has emerged as one of the fastest growing in the world. The number of cars sold domestically is projected to double by 2010, and domestic production isskyrocketing as foreign makers are setting up their own production plants in India. The

government’s 10-year plan aims to create a $145 billion auto industry by 2016.

According to McKinsey, the auto sector’s drive to lower costs will push outsourcing.The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002.McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indiansuppliers, 80 percent have the ISO 9000 certificate—the international standard for quality management.

The production of automobiles in India is largelyaimed at local consumers. Several Indian

manufacturers also export a diverse variety of 

auto components. Tiku (2008) predicts a sale of 4.2

million four wheeler automobiles in India by 2015.

Indian passenger vehicle exports are also expected

to rise from 170,000 in 2006 to 500,000 in 2010.

Indian automobile companies

The following are some of the notable Indian automobile manufacturers:

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Company Description Product

Ashok Leyland

Ashok Leyland is a commercial

vehicle manufacturing company based in Chennai, India. In 1948,Ashok Motors was set up in whatwas then Madras, for the assemblyof Austin Cars. The Company'sname changed soon with equity

 participation by British Leyland andAshok Leyland commencedmanufacture of commercialvehicles in 1955. Ashok Leylandhas six manufacturing plants: a

 plant at Ennore near Chennai, two plants at Hosur (called Hosur I andHosur II, along with a press shop),and the assembly plants at Alwar  and Bhandara.

18 seater to 82 seater double-decker buses, 7.5 tonne to 49 tonnein haulage vehicles, specialapplication vehicles, and dieselengines for industrial, marine andgenset applications.

Force MotorsLtd

Force Motors, formerly BajajTempo, is a Pune-basedmanufacturer of a number of commercial vehicles

Gas-cylinder carrier, copied from3-wheel Vidal & Sohn Tempo-Werke (German) Hanseat;

Matador, a version of Hanomag van and light-truck (1.5 tonne payload); Tempo-traveller, Indianversion of Daimler-Benz T-1transporters; Man-Force Trucks,licensed version of MAN AG trucks; and UV's copied fromDaimler-Benz.

HindustanMotors

Hindustan Motors is one of the

oldest Indian car manufacturers inIndia. It is perhaps best known for the Ambassador which hasremained virtually unchanged for about 30 years. It is still very

 popular as a taxi and is widely used by Indian politicians.

Trekker (discontinued), Landmaster (discontinued), Contessa (discontinued)—5th generationVauxhall Victor, and theAmbassador  —a version of the1950s Morris Oxford.

Mahindra &MahindraLimited

The automotive section of Mahindra started off when a first

 batch of seventy five UtilityVehicles (UVs) was imported in

Armada (discontinued), Voyager (discontinued), Bolero.Commander , CL, MaXX, Scorpio, and Mahindra and Mahindra

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world's leading electric car manufacturing company.

Tata Motors

Tata Motors, formerly known asTELCO, is the largest automobilemanufacturer in India andcommands more than 70% of thecommercial vehicle market in Indiaand has also increased its share of 

 passenger vehicle market. It wasresponsible for developing India'sfirst indigenous vehicle, the Indica.It has proved to be a success in themarket after initial quality

 problems. The company alsoexports the car to many countries.Tata owns major stake in Jaguar and Range Rover.

Indica, Indigo, Indigo Marina, Safari, Sumo, TL, and Tata Nano.

In addition to Bangalore-based Reva, which currently is the only company actuallyselling EVs today, electric cars made in India includes:

• Mahindra & Mahindra: Four-seat model by 2010.•

Tata: 2008-2009 (Also possibly an air car ).• Ajanta Group: clockmaker with plans for low-cost EV.• Tara: Low-cost EV less than a Tata Nano.• Hero Electric: 2013 Electric car.

 

Multi-national companies in India

Company Description Product

Audi

In January 2008, Audi started production with the Audi A4 andA6 at its factory in Aurangabad inthe state of Maharashtra.

A4, A6, A8, R8, Q7, and TT.

BMW BMW is a manufacturer of sportsedans. BMW enjoys good brandrecognition in India. It has set up a

 plant in Chennai, Tamil Nadu, tomanufacture cars locally

3 Series, 5 Series, 6 Series, 7 Series,X3, and X5.

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exclusively for the local marketwith no plans for export. It set upthe plant to circumvent high importduties.

Fiat

The Fiat Uno was one of the first products to be introduced. The FiatPalio was later introduced and wasinitially a success with its style andride comfort coupled with solid

 build but has slowly lost its sheendue to low fuel efficiency. Other models were introduced such as thePalio Weekend and Siena. Fiat triedre-branding of the Fiat Siena to FiatPetra without much success. Itroped in Sachin Tendulkar as one of  its brand ambassadors. EvenMichael Schumacher appeared in an ad for the Palio. It has entered nowinto an alliance with Tata Motors to

 jointly manufacture cars at its plantin Ranjangaon, near Pune. Thefacility will enable the two

companies to make about 200,000cars per annum, and also house anengine manufacturing unit with acapacity of 250,000 units per annum. The alliance will also seeTata Motors use Fiat's diesel technology—the 1.3 litre multijetdiesel engine—for its own vehicles.The two companies also have adistribution and service partnership.

Uno (discontinued), Palio, Palio Stile,Siena (discontinued), Siena Weekend (discontinued), Petra (discontinued),Adventure, Fiat Bravo —sold incollaboration with Tata Motors, Fiat500 —sold in collaboration with TataMotors, and Fiat Linea —sold incollaboration with Tata Motors.

FordMotors

Ford entered India in collaborationwith Mahindra & Mahindra in 1995with a plant in Tamil Nadu. Thefirst model was the Escort.

Escort (discontinued), Ikon, Mondeo(discontinued), Endeavour , Fusion,and Fiesta.

GeneralMotors

Chevrolet has been a recognized brand in India for several decades.The model line-up consists of vehicles from cheaper sister brands

like Daewoo. General Motors initially entered India with the Opel

Tavera —rebadged Isuzu Panther,Forester (discontinued)—rebadgedFirst Generation Subaru Forester,Aveo —second Generation Daewoo

Kalos sedan, Aveo UV-A —firstGeneration Daewoo Kalos hatchback,

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 brand, but the Opel brand wasdropped in March 2006 becausesales were at an all time low due tohigh prices and General Motors

wanted to focus more on their Chevrolet brand. Since theChevrolet brand was introduced inIndia, there have been no new Opel 

 products. GM's Indian operationswere originally a JV betweenHindustan Motors and GM, withmost of GM's vehicles assembled atHindustan's plant in Halol, Gujarat. Since then, GM India is now whollyowned by GM.

Optra —rebadged Daewoo Lacetti,SRV —rebadged Daewoo Lacetti,Spark  —formerly Daewoo Matiz inIndia, and Captiva —recent launch inIndia.

Honda

Honda Siel Cars entered India in1995. It sells 4 cars in India—theCity, Civic, Accord, and CR-V. Themanufacturing plant of Honda Sielis located in Greater Noida. Themodel of Accord sold in India is the2003 model. The most inexpensivecar from Honda—The City. The

most expensive—The HondaAccord V6.

Accord, City, Civic, and CR-V.

Hyundai

When Hyundai entered India, the brand was virtually unknown in theIndian market. But now Hyundaihas good market because of its

models like SANTRO, Accent etc.

Santo —second generation HyundaiAtos, Accent —second generationHyundai Accent sedan, Sonata —soldas the Sonata Embera, Verna —thirdgeneration Hyundai Accent sedan,Getz —sold as the Getz Prime, Elantra

 —3rd generation Hyundai Elantra

sedan, Terracan (discontinued),Tucson, i10 —brand new small car,global launch in India in 2007, andi20.

Renault- Nissan

-Logan (in partnership with Mahindraand Mahindra).

Mercedes-Benz

Mercedes-Benz has had to cater tothe ever gowning luxury segment inIndia, especially after the arrival of 

C-Class, E-Class, S-Class, ML-Class,SL-Class, CL-Class, SLK-Class,CLK-Class, GL-Class, and CLS-

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the other luxury Germanmanufacturers. Now, Mercedes-Benz cars are launched in Indiasoon after the worldwide launch

and homologation as opposed toearlier, when Mercedes-Benz hadmonopolized the niche Indianmarket. In 2007 they launched theSLK-Class and CLS-Class.

Class.

MitsubishiMotors

-

Lancer - Sixth Generation MitsubishiLancer, Cedia —seventh generationMitsubishi Lancer, Pajero —secondgeneration Mitsubishi Pajero,Montero —third generation MitsubishiPajero, and Outlander .

Škoda

Škoda Auto is an important car manufacturer of India. It recentlylaunched the Laura; the Octavia still continues to exist. Škoda also offersthe Superb in India but it's not too

 popular.

Octavia, Superb, Laura, and Fabia.

Toyota

Toyota Kirloskar sells 4 car modelsin India. It stopped producing theToyota Qualis to make way for theToyota Innova, which was launchedin India in 2005. The mostexpensive car from Toyota is theLand Cruiser Prado.

Qualis (discontinued)—3rd generationToyota Kijang, Camry —7thgeneration Toyota Camry (the latestgeneration Camry), Corolla —9thgeneration Toyota Corolla, Innova,and Land Cruiser Prado VX—latestgeneration Toyota Land Cruiser (PRADO).

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INTRODUCTION OF MARUTI

UDYOG LIMITED

Maruti Udyog Limited

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of  Japan, has been the leader of the Indian car market for about twodecades. Its manufacturing plant, located some 25 km south of NewDelhi in Gurgaon, has an installed capacity of 3,50,000 units perannum, with a capability to produce about half a million vehicles.

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 The company has a portfolio of 11 brands, including Maruti 800,Omni, premium small car Zen, international brands Alto andWagonR, off-roader Gypsy, mid size Esteem, luxury car Baleno, theMPV, Versa, Swift and Luxury SUV Grand Vitara XL7.

In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor Corporation's R and D hub for Asia. It hasintroduced upgraded versions of WagonR, Zen and Esteem,completely designed and styled in-house.Maruti's contribution as the engine of growth of the Indian autoindustry, indeed its impact on the lifestyle and psyche of an entiregeneration of Indian middle class, is widely acknowledged. Itsemotional connect with the customer continues

Maruti tops customer satisfaction again for sixth year in a rowaccording to the J.D. Power Asia Pacific 2005 India CustomerSatisfaction Index (CSI) Study. The company has also ranked highest in India Sales SatisfactionStudy.

 The company's quality systems and practices have been rated as a"benchmark for the automotive industry world-wide" by A V Belgium,global auditors for International Organisation for Standardisation. Inkeeping with its leadership position, Maruti supports safe driving andtraffic management through mass media messages and a state-of-the art driving training and research institute that it manages for the

Delhi Government.

 The company's service businesses including sale and purchase of pre owned cars (TrueValue), lease and fleet management service forcorporates (N2N), Maruti Insurance and Maruti Finance are now fullyoperational. These initiatives, besides providing total mobilitysolutions to customers in a convenient and transparent manner,have helped improve economic viability of The company'sdealerships.

  The company is listed on Bombay Stock Exchange and National

Stock Exchange.

 The objectives of MUL then were:• Modernization of the Indian Automobile Industry.• Production of fuel-efficient vehicles to conserve scarce resources.• Production of large number of motor vehicles which was necessaryfor economic growth.

Production / R & D

Spread over a sprawling 297 acres with 3 fully-integrated productionfacilities, the Maruti Udyog Plant has already rolled out over 4.3million vehicles. In fact, on an average, two vehicles roll out of the

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factory every minute. And it takes on an average, just 14 hours tomake a car. More importantly, with an incredible range of 11 modelsavailable in 50 variants, there's a Maruti Suzuki made here to fitevery car-buyer's budget. And dream.

OTHER PRODUCTS OF

MARUTI SUZUKI

MODEL TYPE

Maruti 800

• Maruti 800 STD BS III 

• Maruti 800 AC BS III 

Small

Omni

• 5 seater Maruti Omni • 8 seater Maruti Omni 

• LPG Maruti Omni 

Small

Maruti Alto Small

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• Alto• Alto Lx

• Alto Lxi 

Maruti Zen

• Maruti Zen Lx• Maruti Zen Lxi 

• Maruti Zen Vxi 

Mid-Size

Wagon R

• WagonR Lx• WagonR Lxi • WagonR Vxi • WagonR Ax

Mid-Size

Versa

• 5 seater

• 8 seater ( DX & DX2)

Mid-Size

Maruti Esteem

• Maruti Esteem Lx• Maruti Esteem Lxi 

• Maruti Esteem Vxi

Mid-Size

Baleno

• Baleno Sedan VXi 

• Baleno Sedan LXi 

Mid-Size

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BIT ABOUT MARUTI UDYOG LTD.

COMPETITORS OF MARUTI UDYOG LTD.

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COMPETITORS OF MARUTI SUZUKI SWIFT

1. HYUNDAI SANTRO 1.1 CRDI:

When Hyundai launch the Santro’s

replacement in 2007, it will come with the

surprise addition of a 1.1 litre common rail diesel. Likely to be the

cheapest car on sale powered by a CRDi engine, this motor is the

new Accent’s CRDi unit less one cylinder. Incredibly powerful for its

size, this 1,120cc engine produces a whopping 75bhp. Unconfirmed

reports talk of overall figures, city and highway combined, in excess

of 20 kilometres a litre.

2. HYUNDAI GETZ 1.5 CRDI:

Not as attractive as the Swift, but more practical, with greater rear

seat comfort and more useable space, Hyundai’s diesel assault

continues up the range with its large hatch. The Getz will share its

motors with the new Accent/ Verna. Hyundai sell the Getz powered

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by a detuned version of the new Accent motor in the European

continent, and it’s likely to be the case here as well. Producing

87bhp as against 108bhp, using two versions of the same engine will

help Hyundai get a handle on costs. The diesel Getz also qualifies for

excise sops, meeting both length and engine capacity criteria.

3. TATA INDICA 1.3 MULTIJET:

By the time the larger new Indica is out, the Tata-Fiat tie-up will be

going full throttle. Tata will borrow engines from Fiat with, you

guessed it, the 1.3 litre Multijet being the engine of choice.

 Thoroughly localised, cheaply assembled and very capable, it will

give the new Indica/ Indigo family a huge leap forward as far as

overall ability is concerned.

MARKETING MIX

4P’s OF MARUTI SUZUKI SWIFT

PRODUCT

PRICE

PROMOTION

PLACE

PRODUCT

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Features:

The all-new Maruti Suzuki Swift is fully loaded with a range of 

exciting new features. It's a perfect complement to your

evolved tastes and lifestyle. And the best way to take your

driving pleasure to a brand-new high.

European Styling. Japanese Engineering. Dream-Like Handling.

 The new Swift is a generation different from Suzuki design. Styled with

a clear sense of muscularity, its one-and-a-half box, aggressive form

makes for a look of stability, a sense that it is packed with energy and

ready to deliver a dynamic drive.

Its solid look is complemented by an equally rooted road presence

and class-defining ride quality. New chassis systems allow for the front

suspension lower arms, steering, and gearbox and rear engine

mounting to be attached to a suspension frame. You get lower roadnoise and a greater feeling of stability as you sail over our roads with

feather-touch ease.There are three variants of Maruti Suzuki Swift:

Swift LXi

Swift VXi

Swift ZXi

SWIFT LXI:

3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light(3 position), console box (lower), cup holders (front 2, rear1), frontdoor trim pockets, green tinted glass window, halogen headlamps,headlamp levelling device, heater and manual Air conditioning,OVRM (internally adjusted), rear fog lamps, wind screen wiper 2speed plus 1 speed intermittent, tailgate opener key type, trip meter(digital display), sun visors (both sides), brake assist , child lock (reardoor), high mounted stop lamp, power steering, rear seat belts etc.are the features available in this model.

Swift VXi

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Apart from the features found in other model, striking features of this model are black coloured A & B pillars, 12v accessory socket incentre console, day and night rear view mirror, door ajar warminglamp, driver's seatbelt warning lamp, tachometer, driver's seat beltwarning lamp, vanity mirrors (sun visor co-driver side), rear seat

head restraints, fabric accented door trims, central door locking (4door), front and rear electronic windows, front fog lamps, light off/key reminder, manual air-conditioning, key not removed warningbuzzer, etc.

Swift ZXiSpecial features that have made this model more market friendly arerear window demister, rear parcel shelf, rear window wiper, roomlamp and luggage room, keyless entry, dual front airbags, colouredoutside door mirror cowls, coloured outside door handles, 12vaccessory socket in luggage room, driver seat height adjuster,central door locking (5 doors), seat belts 3-point ELR with shoulderadjusters, seat belts front 3-point ELR with pretensioning, tailgateopener electromagnetic type etc.

PRICE

Maruti is expected to take Hyundai heads on with the pricing of theirupcoming Maruti Suzuki Swift car. After launching cars for themasses since so many years, India’s largest automobilemanufacturer is now targeting the premium segment with theirlatest model from the Suzuki’s stable. The analysts predict the

pricing of this premium hatchback to start from Rs. 4 lakh.

 This price range would practically rip apart Hyundai’s offering inGetz, which is priced at a much higher tag of Rs. 4.5 lakh. Both thecompanies are known for their value based offerings and Maruti withtheir extensive service network and brand reputation for makingreliable cars should get the customer’s nod over their competition.

 The official pricing however is still not out. However, the company issaid to be studying the prospects of launching the base model at the4-lakh price tag. There is another advantage in doing so consideringin the capital city of Delhi NCR road tax on the sub 4 lakh priced carsis comparatively lower at 2%. Cars at a price higher than 4 lakh haveto pay a 4% road tax.

Delhi NCR is one of the major targeted markets and it might get thebenefit of this policy. And if they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai Getz,they would quite likely force the competition to rethink theirstrategy.

Variant NonMetal MetallicPrice 

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licPrice

Swift LXi416485

416485

Swift VXi44392

4443924

Swift VXi(ABS)

464962

464962

PROMOTION

When Maruti Udyog launched the Swift in May last year, theautomotive industry was agog with expectation that the car had themakings of a real winner. Three versions were launched with thebase variant carrying a retail tag of Rs 3.85 lakh, ex-showroom, New

Delhi, and this aggressive pricing only reinforced this feeling.

A year later, the company says the Swift is now the most-sold car inthe first year of any car in the history of the Indian automobileindustry, having totted up sales of 61,200 units.  This is higher than what Maruti had initially planned to sell. The carrecorded an estimated 4,000 bookings at the time of its launch, andthe initial output of 200 units a day on a two-shift basis, wasn’tenough to cope with demand.

In October, the company increased capacity for the Swift whichhelped cut down on the waiting time from an estimated threemonths. The company currently makes over 300 units every day.

 The Swift has made a real impact in the small hatchback segmentleaving its closet rival, the Getz far behind. Between April 2005 andApril 2006, Hyundai sold 16,872 units of the Getz. Maruti is nowgearing up for the diesel version of the Swift which is expected todebut by October. The diesel version will benefit from the excisesops in this year’s buget, and it remains to be seen how the models

fares in the marketplace.

PLACE

 The car manufacturing company, called Maruti Suzuki AutomobilesIndia Limited, is a joint venture between Maruti Udyog and SuzukiMotor Corporation holding a 70 per cent and 30 per cent stakerespectively.

 The Rs.1,524.2 Crore plant has a capacity to roll out 1 lakh cars peryear with a capacity to scale up to 2.5 lakh units per annum. The carmanufacturing plant will begin commercial production by the end of 2006.

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 The engine and the transmission plant has owned by Suzuki Powertrain India Limited in which Suzuki Motor Corporation would hold 51per cent stake and Maruti Udyog holding the balance.

  The ultimate total plant capacity is three lakh diesel engines.

However, the initial production is 1 lakh diesel engines, 20,000petrol engines and 1.4 lakh transmission assemblies.

SWOT ANALYSIS OF MARUTI UDYOG LTD.

STRENGTHS

WEAKNESSES

OPPURTUNITIES

THREATS

STRENGTHS

The Quality Advantage 

Maruti Suzuki owners experience fewer problems with theirvehicles than any other car manufacturer in India (J.D. Power

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IQS Study 2004). The Alto was chosen No.1 in the premiumcompact car segment and the Esteem in the entry level mid -size car segment across 9 parameters.

 The J.D. Power APEAL Study 2004 proclaimed the Wagon R no.

1 in the premium compact car segment and the Esteem No.1in the entry level mid - size car segment. This study measuresowner in terms of design, content, layout and performance of vehicles across 8 parameters.

A Buying Experience like No Other

Maruti Suzuki has a sales network of 307 state-of -the-artshowrooms across 189 cities, with a workforce of over 6000trained sales personnel to guide our customers in finding theright car. Our high sales and customer care standards led usto achieve the No.1 nameplate in the J.D. Power SSI Study2004.

Quality Service across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored thehighest across all 7 parameters: least problems experiencedwith vehicle serviced, highest service quality, best in-serviceexperience, best service delivery, best service advisorexperience, most user-friendly service and best serviceinitiation experience.

92% of Maruti Suzuki owners feel that work gets done rightthe first time during service. The J.D. Power CSI study 2004also reveals that 97% of Maruti Suzuki owners would probablyrecommend the same make of vehicle, while 90% ownerswould probably repurchase the same make of vehicle.

WEAKNESSES

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OPPURTUNITIES

Leading Growth

As the market leader, MUL led the growth in the passengercar sector last year. Maruti's sales went up 30% to 4,72,000/-units. This is the highest annual sale since the company

began operations 20 years ago. Maruti also gained marketshare, mainly on account of its performance in thecompetitive A2 segment where it increased its share from40.3% in 2002-03 to 47.7% in 2003-04.

 The record sales performance was reflected in the financials.Net Sales (excluding excise) grew by 31% to Rs 93,456million. Operating Profit Margin increased from 0.8 % in 2002-03 to 4.7 % in 2003-04. Profit After Tax jumped 2700 millionto Rs 5421 million.

MUL is committed to motorising India. Towards this end,company's partnership with State Bank of India and its

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Associate Banks took organised finance to small towns toenable people to buy Maruti cars.

THREATS

THREATS FROM COMPETITORS

Tata Motors Limited

In the 2004 fiscal year, Tata Motors generated revenues of $3,542.2million (INR154,935.2 million). The company made a net profit of $185 million (INR8,103.4 million) in the 2004 fiscal year.

General Motors CorporationFor the fiscal year ended December 2004, GM generated revenues of $193,517 million, an increase of 4.3% from the previous year. Thecompany reported a net income of $2,805 million for fiscal 2004,down 26.6% from the previous year.

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PRODUCT LIFE CYCLE

Introduction:

As a new product much time will be spent by the organisation tocreate awareness of it presence amongst its target market. Profitsare negative or low because of this reason.

Growth:

If consumers clearly feel that this product will benefit them in someways and they accept it, the organisation will see a period of rapidsales growth.

Maruti Suzuki Swift stands on Growth Stage. As the sales of MarutiSuzuki Swift is high as compare to Hyundai Getz then the consumerwill buy Maruti Suzuki Swift by providing them with great benefits infuture and they will accept it.

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Cash Cows:

High Market Share / Low Market Growth

Here, you’re well-established, so it’s easy to get attention andexploit new opportunities. However it’s only worth expending acertain amount of effort, because the market isn’t growing and youropportunities are limited.

Maruti Suzuki Swift stands on Cash Cows where they haveestablished their brand in the market. Of which they can exploit newopportunities. They have opportunities to expand their product morein the market. As they have expanded globally in the global market.

NEW MODEL OF SWIFT

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Swift Dzire - is that the name of the Maruti Swift

sedan which will replace the Esteem?

Maruti Suzuki Dzire, the replacement for old warhorse Maruti Esteem is oncards. Maruti is expected to unveil the Suzuki Dzire at the Auto Expo in NewDelhi.

Basically, the Suzuki Dzire will be the sedan version of the hugely successfulSuzuki Swift. Maruti has been planning for a while to bring in a 3-box versionof the Swift, and the Dzire may be the answer.

Though the Dzire will be essentially the Maruti Suzuki Swift in a sedan avatar,the company is planning modifications in the headlamps, front grille andbumper design to make the car not look like a Swift with a tail. Unlike theSuzuki Swift which is made in several countries, Maruti Suzuki plans to buildthe Suzuki Dzire only in India. The Dzire may be exported to several countries.

Maruti Suzuki has been phasing out older 3-box models and bringing in newglobal products to replace them. The Maruti Suzuki Baleno was the first to goout, to be replaced by the Maruti Suzuki SX4. The next in line seems to be the

Maruti Esteem, one of the longest selling cars from the Maruti stable. The car,which initially made a feeble appearance as the Maruti 1000, went in for acomplete overhaul and reappeared as the Maruti Esteem. With minor cosmeticchanges, Maruti has been successfully selling the sedan for 14 years now.

The Suzuki Dzire is likely to offer both petrol and diesel options, in 1.3 litreengines. The car is likely to come with ABS, power steering, fog lamps andautomatic climate control systems.

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Maruti Suzuki has launched the Swift Dzire, its seventh model in three years.Priced in the introductory range of Rs.4.49 lakh to Rs.6.7 lakh (ex-showroom,Delhi), the Maruti Suzuki Swift Dzire has both diesel and petrol variants,powered by 1.3-litre engines. While the petrol variant will cost betweenRs.4.49 lakh and Rs.5.9 lakh, the diesel version will carry a price tag of Rs.5.39-6.7 lakh.

Complete with an integrated stereo, steering-mounted audio controls,automatic climate control, power windows and dual airbags, The Swift Dzirelooks like a terrific buy - for now. This is because the Maruti Suzuki Swift Dziremay prove to be costly for buyers who opt to wait for a bit before buying theSwift Dzire. Rising input costs, especially that of steel and petroleum products,are putting pressure on the margins and it is expected that Maruti Suzukimight hike the price of the Swift Dzire.

The Dzire is an India-only model as far as we know. It appeals to the Indianpreference for seans over hatchbacks. At the current price, the Dzire will take

on the various Tata Indigos, the Mahindra Logan, Ford Fiesta - appropriatelyenough. After all, it is a car that would replace the ageing Maruti Esteem.

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There are many who have expressed reservations about the looks of the SwiftDzire though. It looks a bit odd, definitely, from certain angles. Not that it isgoing to matter to an Indian buyer.

Maruti Suzuki expects that with growing incomes and better lifestyles, many

households would want to upgrade to a sedan. Maruti maintains that the SwiftDZire is an entry-level sedan offering style, features and performance at anattractive price.

Meanwhile, Maruti Suzuki plans to launch its Maruti A-Star in October 2008.The Maruti A-Star is expected to join Maruti Suzuki’s existing productsWagonR and Zen Estilo. Maruti also plans to export the A-Star model to theEuropean market as well.

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Showrooms of Maruti in Delhi;

• Allianz Automobiles:

Kamal Cinema Building, Safdarjung Enclave,

New Delhi

Telephone: 91-11-26104693, 26183785

E-Mail: [email protected]

• Apra Auto India Private Limited:

K-804/2 Mahipalpur, Vasant Kunj Road, New Delhi.

Telephones: 91-11-42390000, 41009900

Fax: 91-11-52390088

E-Mail: [email protected]

• Bagga Link Motors Private Limited:

395, Patparganj Industrial Area, New Delhi.

Telephones: 91-11-22169111, 22169555, and 22169222

Fax: 91-11-22141133

E-Mail: [email protected]

• Competent Automobiles Company Limited:

48, Ring Road, Lajpat Nagar IV, New Delhi.

Telephone: 91-11-26917814 Fax: 91-11-26830306

E-Mail: [email protected]

• Competent Automobiles Company Limited:

14, Competent House, Middle Circle, Connaught Place, New Delhi.

Telephones: 91-11-23355285/86/87, 23354572/73/74, 23328009

E-Mail: [email protected]

• Competent Automobiles Company Limited:

19, Shivaji Marg, New Delhi.

Telephones: 91-11-25925261, 25925329, and 25930611

E-Mail: [email protected]

• Competent Automobiles Company Limited:

3, Gazipur, Delhi( East), Delhi.

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Telephones: 91-11-22446551, 22217774, and 22446552

Fax: 91-11-22446553

E-Mail: [email protected]

• D D Motors:100, Mayapuri Phase II, New Delhi.

Telephone: 91-11-41845000, 28116502, and 28115403

Fax: 91-11-28113505

E-Mail: [email protected]

• DDMotors:

5, Wazirpur Industrial Area,

Near Wazirpur Bus Depot, New Delhi.

Telephone: 91-11-27153999, 41843000

Fax: 91-11-27151466

E-Mail: [email protected]

• D D Motors Private Limited:

F 1/9, Okhla Industrial Area, Phase 1, New Delhi.

Telephone; 91-11-40523000

E-Mail: [email protected]

• Fair Deal Cars Private Limited:

485-A, Jhilmil, Main G.T.Road, Shahdara, New Delhi

Telephone: 91-11-22119626/27

Mobile: 9910894050

E-Mail: [email protected]

• Gautam Motors Private Limited:

E-46/14, Okhla Industrial Area, Phase-II, Main Kalkaji Road, New Delhi

Telephone: 91-11-41613879, 28613880, 28613879

Fax: 91-11-26921189

E-Mail: [email protected]

• Krish Automotors Private Limited:

Mam Ram Majesty Mall, Plot Number 2, Road Number 43, Guru

Harkishan Marg, Pitampura, New Delhi

Telephone: 91-11-32435050

E-Mail: [email protected]

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Fax: 91-11-27216900

E-Mail: [email protected]

• Sikand & Company:

50, Janpath, New Delhi.Telephones: 91-11-23320450, 23310364, 23326508

Fax: 91-11-23313765

E-Mail: [email protected]

• T R Sawhney Motors Private Limited:

33 & 34, Harichand Melaram Complex, East Gokulpur, Wazirabad

Road, New Delhi.

Telephones: 91-11-22816777, 22816533, and 22816733

E-Mail: [email protected]

• T R Sawhney Motors Private Limited:

B-5, Industrial Area Phase-1, Badli Opposite Sector-18,

Telephone: 91-11-27853094

E-Mail: [email protected]

Research Methodology:

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Research methodology is considered as the nerve of the project. Without a

  proper well-organized research plan, it is impossible to complete the

 project and reach to any conclusion. The project was based on the survey

 plan. The main objective of survey was to collect appropriate data, whichwork as a base for drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the

research problem. Research methodology not only talks of the methods

 but also logic behind the methods used in the context of a research study

and it explains why a particular method has been used in the preference of 

the other methodsResearch design:

Research design is important primarily because of the increased

complexity in the market as well as marketing approaches available to the

researchers. In fact, it is the key to the evolution of successful marketing

strategies and programmers. It is an important tool to study buyer’s

 behaviour, consumption pattern, brand loyalty, and focus market changes.A research design specifies the methods and procedures for conducting a

 particular study. According to Kerlinger, “Research Design is a plan,

conceptual structure, and strategy of investigation conceived as to obtain

answers to research questions and to control variance.

Type of Research is:

Descriptive ResearchThe type of research adopted for study is descriptive. Descriptive studies

are undertaken in many circumstances when the researches is interested to

know the characteristic of certain group such as age, sex, education level,

occupation or income. A descriptive study may be necessary in cases

when a researcher is interested in knowing the proportion of people in a

given population who have in particular manner, making projections of a

certain thing, or determining the relationship between two or more

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variables. The objective of such study is to answer the “who, what, when,

where and how” of the subject under investigation. There is a general

feeling that descriptive studies are factual and very simple. This is not

necessarily true. Descriptive study can be complex, demanding a highdegree of scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be

flexible in its approach, but a descriptive study in contrast tends to be

rigid and its approach cannot be changed every now and then. It is

therefore necessary, the researcher give sufficient thought to framing

research.Questions and deciding the types of data to be collected and the

 procedure to be used in this purpose. Descriptive studies can be divided

into two broad categories: Cross Sectional and Longitudinal Sectional. A

cross sectional study is concerned with a sample of elements from a given

 population. Thus, it may deal with household, dealers, retail stores, or 

other entities. Data on a number of characteristics from sample elementsare collected and analyzed. Cross sectional studies are of two types: Field

study and Survey. Although the distinction between them is not clear- cut,

there are some practical differences, which need different techniques and

skills. Field studies are ex-post-factor scientific inquiries that aim at

finding the relations and interrelations among variables in a real setting.

Such studies are done in live situations like communities, schools,

factories, and organizations.

Another type of cross sectional study is survey result, which has been

taken by me. A major strength of survey research is its wide scope. Detail

information can be obtained from a sample of large population .Besides; it

is economical as more information can be collected per unit of cost. In

addition, it is obvious that a sample survey needs less time than a census

inquiry. Descriptive research includes survey and fact finding enquiries of 

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different kinds of the major purpose. Descriptive research is description of 

the state of affairs, as it exists at present. The main characteristic of this

method is that the researcher has no control over the variables; he can

only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds

including comparative and co relational methods. The reason for using

such needs to be flexile in its approach, but a descriptive study in contrast

tends to be rigid and its approach cannot be changed ever now and then.

OBJECTIVES OF THE STUDY

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1. To find out the market share of Maruti Suzuki swift

2. To study competitors of Maruti Suzuki swift

3. To study the marketing strategies of Maruti Suzuki swift

4. To study the strength, weakness, opportunity, and threats (swot -- analysis) of swift.

5. To study the customer satisfaction regarding Maruti Suzuki cars

6. To study the comparison of swift and swift dzire.

Data collection tools :

After the research problem, we have to identify and select which

type of data is to research. At this stage; we have to organize a

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field survey to collect the data. One of the important tools for conducting market

research is the availability of necessary and useful data.

Primary data: For primary data collection, we have to plan the following four 

important aspects.

Sampling

Research Instrument

Secondary Data - The Company’s profile, journals and various literature

studies are important sources of secondary data.

Data analysis and interpretation

1. Questionnaires

2. Pie chart and Bar chart

Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains question

that the researcher wishes to ask his respondents which is always guided by the

objective of the survey.

Pie chart:

This is very useful diagram to represent data, which are divided into a number of 

categories. This diagram consists of a circle of divided into a number of sectors, which

are proportional to the values they represent. The total value is represented by the full

create. The diagram bar chart can make comparison among the various components or 

 between a part and a whole of data.

Bar chart:

This is another way of representing data graphically. As the name implies, it consist of 

a number of whispered bar, which originate from a common base line and are equal

widths. The lengths of the bards are proportional to the value they represent.

LIMITATIONS:-

Every study has certain limitations. In my study, also there were certain limitations,

which I could not able to solve.

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1. The research was conducted in a very small area.

2. My research work period witness the biggest ups and downs in product sale of 

only one brand, which affected the perception of the customer. This was

 biggest drawback of my study.

3. Time factor was also important for me.

4. I had only found the upper-middle class family to fill up the questionnaire, but

generally, an average middle class family was required for the study.

5. The sample size is also very small which represent my research on consumer 

 behaviour.

ANALYSIS:-

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Q1. Have you ever purchased any car of Maruti Suzuki?

Yes

 No

0

10

20

30

40

50

60

 Yes

No

Q.2 While purchasing car which feature influence you?

Price

Product feature

Brand

Service

Durability

43

25%

20 %30%

10%

15% Price

Product Featu

Brand

Service

Durability

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55%

10%

5%

30% Attractive Pric

Service

Demonstration

Offers

Q3. From where you prefer buying a second hand car?

Through advertisement

Dealers

Showroom

0

5

10

15

20

25

30

35

40

THROUGH ADVERTISEMENT

DEALERS

SHOWROOMS

Q.4.You prefer to buy from the same as you have mentioned in Q.3

 because of following reasons

Attractive Price

Service

Demonstrations Offers

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15%

35%45%

5%

1-3 years

3-5 years

5-10 years

More than 10

years

Q.5.Which Car of Maruti of do you have?

SWIFT

SWIFT DZIRE

ESTEEM

MARUTI800

ALTO

0

10

20

30

40

50

SWIFT

DZIRE

ESTEEM

MARUTI800

ALTO

Q.6. How frequently you change your cars?

1-3 years

3-5 years

5-10 years

More than 10 years

Q.7. Which bank do u prefer for financing the car?

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HDFC

ICICI

AXIS BANK 

PUNJAB NATIONAL BANK 

0

10

20

30

40

50

HDFC

ICICI

AXIS

PNB

Conclusion and recommendations

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a) Maruti should improve it’s after sale service because its hits

 badly car market share.

 b) More detailed customaries service is to be provided.

c) Show room demonstration should be given at frequent time

interval and feed back should be considered positively.

d) The company should look into the matter of person hiring for 

in showroom demonstration. A big showroom should have at

least 5 such kind of person.

e) As there is a bottle neck competition between Hyundai and

Maruti, it is necessary to take measure steps to overcome the

area of downfall in Maruti with respect to Hyundai.

f) The marketing managers should make better relations with

dealers and reputation of the company.

g) Customer considers quality as their first preference, so the

company should give more stress on this.

h) The product is well aware and it is on top of mind of 

customer. So company should always improve services and

update their technology.

ANNEXURE

BIBLIOLOGY

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www.marutisuzuki.com

www.managementparadise.com

www.carwale.com

Autocar Magazine

QUESTIONNAIRE

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Q1. Have you ever purchased any car of Maruti Suzuki?

Yes

 No

Q.2 While purchasing car which feature influence you?

Price

Product feature

Brand

Service

Durability

Q3. From where you prefer buying a second hand car?

Through advertisement

Dealers

Showroom

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Q.4.You prefer to buy from the same as you have mentioned in Q.3

 because of following reasons Attractive Price

Service

Demonstrations

Offers

Q.5.Which Car of Maruti of do you have?

SWIFT

SWIFT DZIRE

ESTEEM

MARUTI800

ALTO

Q.6. How frequently you change your cars?

1-3 years

3-5 years

5-10 years

More than 10 years

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Q.7. Which bank do u prefer for financing the car? 

HDFC

ICICI AXIS BANK 

PUNJAB NATIONAL BANK