INTRODUCTION

Industry Profile

The first motor car on the streets of India was seen in 1898. Mumbai had its first

taxicabs in the early 1900. Then for the next fifty years, cars were imported to

satisfy domestic demand. Between 1910 and 20's the automobile industry made a

humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai.

The import/assembly of vehicles grew consistently after the 1920's, crossing the

30,000 mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the

distinction of manufacturing the first car in the country by assembling 'Dodge

DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which

started as a manufacturer of auto components graduated to manufacture cars in

1949.

In 1952, the Government of India (GOI) set up a tariff commission to devise

regulations to develop an indigenous automobile industry in the country. After the

commission submitted its recommendations, the GOI asked assembly plants, which

did not have plans to set up manufacturing facilities, to shut operations. As a result

General Motors, Ford and other assemblers closed operations in the country. The

year was 1954 and this decision of the government marked a turning point in the

history of the Indian car industry. The GOI also had a say in what type of vehicle

each manufacturer should make. Therefore, each product was safely cocooned in

its own segment with no fears of any impending competition. Also, no new entrant

was allowed even though they had plans of a full-fledged manufacturing program.

The restrictive set of policies was chiefly aimed at building an indigenous auto

industry. However, the restrictions on foreign collaborations led to limitations on

import of technology through technical agreements.

The other control imposed on carmakers related to production capacity and

distribution. The GOI control even extended to fixation of prices for cars and

dealer commissions. This triggered the start of a protracted legal battle in 1969

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between some carmakers and GOI. Simply put, the three decades following the

establishment of the passenger car industry in India and leading upto the early

1980s, proved to be the 'dark ages' for the consumer, as his choice throughout this

period was limited to two models viz Ambassador and Padmini. It was only in

1985, after the entry of Maruti Udyog, that the car makers were given a free hand

to fix the prices of cars, thus, effectively abolishing all controls relating to the

pricing of the end product.

In the early 80's, a series of liberal policy changes were announced marking

another turning point for the automobile industry. The GOI entered the car

business, with a 74% stake in Maruti Udyog Ltd (MUL), the joint venture with

Suzuki Motors Ltd of Japan.

In 1985, the GOI announced its famous broadbanding policy which gave new

licenses to broad groups of automotive products like two and four-wheeled

vehicles. Though a liberal move, the licensing system was still very much intact.

MUL introduced 'Maruti 800' in 1983 providing a complete facelift to the Indian

car industry. The car was launched as a "peoples car" with a price tag of Rs40,000.

This changed the industry's profile dramatically. Maruti 800 was well accepted by

middle income families in the country and its sales increased from 1,200 units in

FY84 to more than 200,000 units in FY99. However in FY2000, this figure came

down to 189,184 units, due to rising competition from Hyundai's 'Santro', Telco's

Indica and Daewoo's 'Matiz'.

Many companies have entered the car manufacturing sector, to tap the middle and

premium end of car industry. The new entrants are Daewoo (Matiz), Telco (Indica)

and Hyundai (Santro) in upper end of economy car market. GM, Ford, Peugeot,

Mitsubishi, Honda and Fiat have entered the mid-sized car segment and Mercedes-

Benz is in the premium end of market. Car manufacturers like Malyasia based Proton

are also in line to hit the Indian ramp.

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RESEARCH METHODOLOGY

Sampling Design

Survey: A survey is a fact finding study of analysis in scientific and orderly form

for defined purpose of a given situation or a problem when a study is undertaken

due to consideration of time and cost almost invariably lead to a selection of

respondent i.e. selection of only a few items. The selected respondents constitute

what is technically called a ‘sample’ and the selection process is called ‘sampling

technique’ the survey so conducted is known as ‘sample survey’.

Steps in Sampling Design

1. Universe

The MUL, Gurgaon is selected for the study because it is a well established

organization with a total number of employees.

2. Source List

A list which contains the name of all the employees at this level in true

department’s are prepared.

3. Sample Size

The number of managers at this level are : 30 in production, 10 in finance, 30 in

marketing, 16 in HR, due to shortage of time instead of contacting each and every

worker a representative sample of 20 from production and 20 from marketing at

random.

4. Sampling Procedure

Probability Sampling: It is also known as random sampling. A list of all the

managers working in these two department is prepared. All the names are written

on chits and at random 50 chits are being selected. The names of the workers,

which have been shown on the chits, have been selected as units of sample. In this

way sample of 40 workers has been drawn. This random sampling technique

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ensures the law of statistical regularity, which states that if on an average the

sample will have the same compositions, characteristics as the universe.

Methods of Data Collection

The data required for the survey is made available from various sources such as:

Primary Source is the data which is collected first hand. This has been

collected through direct communication with consumers.

Secondary Source is the data which is already available. This is collected

through printed material files and annual reports of the company.

Processing Analysis of Data

After data collection, next stage is analysis of data, it is used to transform the mass

data into some significant understandable form. The following steps are taken for

the processing of data.

Editing: It is a process of examining the collected raw data to detect errors and

commissions and to correct these when possible. Careful scrutinizing of the

complete quest is movies.

Classification: The data arranged in groups or classes on the basis by common

character is this are place in one class and in this way the entire data get.

Tabulation: The data after classification is tabulated for easy reference and

study.

Graphical representation: Pictorial and graphical representation where ever

necessary was also undertaken. Bar graphs, line graphs, pi-charts are extensively

used in this thesis to make it more reader friendly.

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SWOT ANALYSIS OF

MARUTI UDYOG LIMITED.

Strengths :

Strong brand equity.

Efficient low cost vehicles which are reliable and of high quality.

A strong vendor base.

Extensive network of showrooms, dealer workshops and authorised service

stations.

Collaboration with Suzuki, know for their technological superiority bringing

together performance, economy, durability and comfort.

Strong financial positions

Highly motivated and satisfied team of employees

Smoothly functioning communication network between labour and

management

Flat organisational structure to facilitate quicker decision making

A range of cars to suit different needs, adapted to Indian conditions and Indian

car uses

Govt. support

Strong international presence with sales in over 100 countries worldwide

Economies of scale due to optimum capacity utilization

High indigenisation content giving MUL cost leadership

Weakness :

Lack of in house R&D to develop new models of cars, with new models being

restricted to cosmetic changes and price cuts.

Not many models to compete the new entrants

Dominance mainly in the entry level cars segment (Maruti 800)

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Delivery system

Opportunities :

A burgeoning work force and growing middle class population

Growing demand for fuel efficient low cost vehicles which were reliable and of

high quality.

High growth potential for its exports as demand for Maruti cars in Europe

increasing.

Indian customers are mainly value buyers demanding a better overall package.

MUL is poised in a better position than other players in the market to capitalise

on this opportunity

Threats :

Over reliance on Suzuki for technology

Entry of new players (especially Tata Indica) with newer and better

technologies in the small car segment

Complacency due to market leadership and high market share

Lack of newer models, product range and technology to compete with new

entrants

Thus, building on its performance record and ties of trust it has forged over

the years, Maruti remains committed to its vision of being an internationally

competitive company in terms of products and services and provides value

and satisfaction to its customers worldwide. It is no wonder then, that millions

of people, while making one of the most important decisions of their lives go

for MARUTI. It is precisely these strengths that Maruti has to capitalise upon

to gear up to face competition and retain its position of strength in India

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OBJECTIVE OF STUDY

The main objective of this project is to find, what are the steps Maruti Suzuki India Ltd. is adapting to be market leader and to differentiate itself from its competitors.

What is the steps company is utilizing to find current trend in the market.

To study selling concept of MSIL.

To find the market share of MSIL and its competitors.

To determine the key areas of strength and weakness for MSIL to develop a promotion plan for brand communication of the MSIL

To study various marketing strategies of MSIL

To study the buying behavior of consumers

To find online buying behavior

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LIMITATIONS :

Limitations in this Thesis on Maruti Udyog Ltd. Are as follows :

Most of the information gathered was from secondary sources and any

limitations related to such sources will persist.

Moreover the secondary data was not up-to-date.

Random Sampling techniques are used for arriving at inferences for the

whole Delhi region. And any sample is insufficient and doesn’t give the true

picture.

Although efforts were made to explore magazines and newspapers for

unbiased view on MLU still most of the material used for making this report

was collected from company journals, website, sales guides, etc.. and hence

could be biased to some degree.

The company's executives were not able to provide complete information, as

some of the aspects relating to future trends & plans were kept secret.

Limitations relating to Maruti Udyog Ltd. project that came forth during my

association with the company :

Lack of in house R&D to develop new models of cars, with new models being

restricted to cosmetic changes and price cuts.

Not many models to compete the new market entrants

Dominance mainly in the entry level cars segment (Maruti 800)

Delivery System

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COMPANY PROFILE

Maruti is India's foremost automobile company has over the years created history

with its collaborator, Suzuki of Japan.

Maruti is the market leader in all segments of the passenger car market. Maruti

over the years has been able to build the following strengths: large production

volumes, a well developed vendor base, large sales and after sales network and a

large population of cars on the roads (over half the total cars in India belong to

maruti) are tangible strengths for all to see. Maruti is the leader in terms of

providing the customer a low cost fuel-efficient vehicles. As a corollary we are the

lowest cost manufacturers in India. In a price sensitive market like India specially

for big-ticker items for the aspiring middle class, very few companies can think of

matching us without sustaining substantial losses. What is not very visible our high

standards of productivity, Japanese work culture, a well – trained and motivated

work force and technical support from Suzuki the leader of small cars.

The Dawn

On late Sanjay Gandhi’s date of birth Dec 14 in the year 1983, then Prime

Minister Smt. Indira Gandhi handed over the keys of the first Maruti car to

Harpal Singh of Delhi. It was beginning of a saga and since then Maruti has

grown to become India’s largest automobile company.

The idea for a peoples car & quest for a suitable technological partner was

initiated in the seventies by Sanjay Gandhi. Though he did not live long to see

the driven car roll out of the factory, the project became a huge success story.

The company search for a technological partner ended in early 80s when Suzuki

Motor Company of Japan agreed to a 26% stake in a joint venture with a newly

formed Maruti Udyog Limited (MUL), the rest 74% being need by Govt. Of

India.

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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 (which had catapulted Japan over USA to the status of the

top auto manufacturing country in the world).

A licence and a Joint Venture agreement was signed between Govt of India and

Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The first Board of Directors consisted of eight members.

Mr. Krishnamurthy became the first CMD of the company Suzuki had two

representatives in the Board. Mr. O. Suzuki, the President of Suzuki Motor

Corporation had for the first time gone to the Board of an overseas affiliate

company Suzuki had also nominated another senior director as a full-member of

the Board. He had worked in India to look after production and engineering. Mr.

R.C. Bhargava was in the Board as Director (Marketing & Sales).

When Maruti catered the Indian car market it sought to fill the following

needs:

Modernization of the Indian Automobile Industry.

Production of fuel-efficient vehicles to conserve scarce resources.

Provide fuel efficient, low cost vehicles which were reliable and of high

quality.

Offer customers a friendly sales and after sales service.

Thus total automobile value and customer satisfaction shaped company’s

policies and approach to quality. The following factors also provided the

healthy factor for company growth.

The absence of an efficient public transportation system led to growth in

demand of passenger cars.

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A burgeoning workforce and growing middle class population necessitated

personal transports.

Corporate world had started offering facilities or incentives of cars to even

its junior executives

As Maruti mainly manufactured entry level cars it was successfully able to

fulfill this demand in the market.

Transfer of Technology

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative

that the transfer of contemporary technology from our partner Suzuki is a smooth

process.

Great stress is laid on training and motivating the people who man and maintain

the equipment, since the best equipment alone cannot guarantee high quality and

productivity.

From the beginning it was a conscious decision to send people to Suzuki Motor

Corporation for on-the-job training for line technicians, supervisors and engineers.

This helps them to imbibe the culture in a way that merely transferring technology

through documents can never replicate. At present 20% of our workforce have

been trained under this programme.

Maruti's Ethos

Maruti's employees are our greatest strength and asset. It is this underlying

philosophy that has moulded our workforce into a team with common goals and

objectives. Employee-Management relationship is therefore characterised by:

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Participative Management.

Team work & Kaizen.

Communication and information sharing.

Open office culture for easy accessibility

To implement this philosophy, we have taken several measures like a flat

organisational structure. There are only three levels of responsibilities ranging

from the Board Of Directors, Division Heads to Department Heads. Other visible

features of this philosophy are an open office, common uniforms (at all levels), and

a common canteen for all.

This structure ensures better communication and speedy decision making

processes. It also creates an environment that builds trust, transparency and a sense

of belonging amongst employees.

Maruti’s Vision

The Leader in the Indian Automobile Industry, Creating Customer Delight and

Shareholder’s Wealth; A Pride of India.

Maruti’s Core values:

Customer Obsession

Fast, Flexible & First Mover

Innovation & Creativity

Networking & Partnership

Openness & Learning

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The people behind Maruti Suzuki

Total manpower: 4629 (out of which 93 are female employees)

The average age of all employees put together is 36.63 years

Number of workers: 3029

Number of supervisors/Executives: 1358

Managers and above: 242

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PRODUCTION AND SALES

Maruti has introduced the following models on last 16 years.

Maruti 800Dec 83

Omni Nov 84

Gypsy Dec 85

Maruti 800 (new) June 86

Maruti 1000 Oct 90

Zen Oct 93

Esteem Nov 94

Zen (automatic) Oct 96

Gypsy King Nov 96

Omni (E) Dec 96

Gypsy (E) Dec 96

New Maruti 800 Sep 97

1998 Esteem Oct 97

Zen (D) Aug 98

Maruti 800 (EX) Jan 99

Zen (LX) Jan 99

Zen Classic Aug 99

Zen VXI Oct 99

Omni XL Oct 99

Baleno Nov 99

Wagon R Jan 2000

Alto Jan 2000

Versa Nov 2001

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Maruti Alto Economic Model Versa Variant

2004

Maruti Swift 2005

SX4 Aprill 2007

Grand Vitara May 2007

Swift Dzire March 2008

A Star Nov 2008

Ritz May 2009

Kizashi Feb 2011

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MARKETING MIX

The 4P’s of Marketing Mix are :

Product

Price

Place

Promotion

Products :

Maruti Offers A Range Of Different Products

1. MARUTI 800, Std (metallic & non-metallic) and (with ac & without ac) euro-II.

2. ALTO, Lx, Lxi, (spin version for Lxi), Vx, Vxi, (metallic & non-metallic) euro-II.

3. BALENO, Sedan, altura (metallic & non-metallic) fully loaded euro-II.

4. ESTEEM, Lx, Lxi, Ax, Vx, Vxi, D, Di, Velocity (metallic & non-metallic) euro-II.

5. MARUTI GYPSY, Gypsy Soft Top & Hard Top 1.3 (metallic & non-metallic) euro-II.

6. OMNI. Omni Cargo, Omni Amb. high roof, Omni Flat Roof 8 str, Omni Flat Roof 5 str (metallic & non-metallic) euro-II.

7. VERSA, Dx, Dx 5s, Dx-2, Dx-2 5s. All euro-II models.

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8. WAGON-R, Lx, Lxi, Ax, Vx, Vxi, (metallic & non-metallic) euro-II.

9. ZEN, Lx, Lxi, Vx, Vxi, D, Di, 2 Door, 2 Door-i, AT,

AT Easy drive -with various accessories to help handicapped take the

pleasure of driving a car. (metallic & non-metallic) euro-II.

10. SWIFT, Lxi, Vxi, Lds, Ldi, Vds, VdiBest car of the year.

11. Baleno, Lxi, Vxi

12. SX4, Vxi, Zxi, Zxi(Leather)

13. GRAND VITARA , Mt, At

14. A Star Lxi, Vxi, Zxi

15. SWIFT DZIRE Lxi, Vxi, Ldi, Vdi, Zxi, Zdi

16. RITZ, Lxi, Vxi, Ldi, Zxi, Vdi, Vdi ABS

17. KIZASHI, MT CVT

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RECENT PRODUCT DEVELOPMENTS

Maruti launched Suzuki Swift in India

Maruti plans the launch of its first ever modern, radical car in India. The Swift

looks shocking, will be affordable, and put Maruti back in the race. 

THE Swift, billed the biggest launch of Maruti since it launched M800 over two

decades ago, will have no brand ambassador , but could see an aggressive price

range of Rs 4.5 lakh-6.5 lakh for its three variants.

The car, expected to be launched around May 19, could in fact see its sales eating

into that of the 1-lt Zen. "Customers who wanted to buy a Zen have deferred their

decision till Swift is launched," a Maruti dealer told Business Line. Such has been

the hype surrounding the launch that customers have already started booking the

Swift for a down payment of around Rs 50,000. "We have merely given the

customers a broad price range, which could change. But the bookings are open,"

the dealer said.

All the variants of the 1.3 lt Swift will be equipped with an air bag, while the high-

end variant will have an anti-braking system. The lowest priced variant, Lxi, will

be air-conditioned but without power steering.

However, the second variant, the Vxi, will have air-conditioning and power

steering. The third variant, Zxi, will have the above features as well as power

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windows, a remote locking system and fog lamps. Under test conditions, Swift is

expected to give about 18 km per litre.

A Maruti official said that the car maker has also roped in about 1,000 salespersons

who will exclusively sell Swift, apart from featuring the car in a Hindi movie.

These salespersons will visit either the offices of the prospective customers or their

homes. Maruti expects to sell several thousands of the model in a segment, which

has seen tepid sales of similar cars like Corsa Sail, Fiat Palio and Hyundai Getz. "It

will be a huge challenge for Maruti to get the sales going as it tries to rewrite the

equations of the segment," an auto analyst said.

The parent Suzuki has also involved Indian engineers to work on the development

of the car, which is considered as the only occasion when the parent has roped in

Indian employees to develop an international car.

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FUTURE PROSPECTS

MARUTI Udyog Ltd (MUL), on it will invest Rs 2,718 crore at its plant by 2008

and launch five new models, including a diesel car, in the next five years.

"The new investments would be made for introducing new models, research and

development as well as upgradation of our facility," the MUL Managing Director,

Mr Jagdish Khattar, said here while inaugurating the company's pavilion at the 8th

Auto Expo.

The Rs 2,718 crore capex is an extension of the Rs 3,200-crore investment

announced earlier by Suzuki for setting up a passenger car and diesel engine plant.

"The diesel engine plant will be ready by the end of this year and along with it will

come a new diesel car model in the Indian market.

"The diesel compact car would be ready for launch by end of 2006," Mr Khattar

said.

Meanwhile, Mr Khattar declined to divulge information on the other car models

the company plans to launch.

In April, Maruti said its directors approved the investment of Rs 3,270 crore to set

up a car factory and an engine plant.

Maruti and its parent will together invest as much as Rs 1,520 crore in the car

factory, and Rs 1,750 crore in the diesel engine plant.

Asked about the funding of the new investment plan, Mr Khattar said it would be

mainly through internal accruals but the company may look at the option of raising

loans, if required.

"Funds would not be a constraint," he said.

The company's pavilion here at the Auto Expo displays the SUV `Escudo', `Solio',

a vehicle specifically designed for the physically challenged, and the 1.6 litre Swift

Sport

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FIVE P’S OF MARKETING

The record sales performance was ably supported by Maruti’s dealerships. During

the year, the company ended its relationship with several non-performing

dealerships and enhanced it with the good performers. The new car sales network

grew from 243 outlets to 280, with coverage expanding from 160 cities to 182.

The dealerships also participated in the expansion of Maruti’s new businesses,

including Maruti Insurance, Maruti Finance, Maruti TrueValue (Pre Owned cars)

and N2N (Corporate Lease and Fleet Management Services). These services made

Maruti vehicles even more attractive for customers.

Maruti’s service network, known for its size and quality, expanded to a landmark

1000 cities and towns during the year. The Maruti-managed Institute of Driving

Training and Research in Delhi made major contribution to safe driving which was

widely recognised, notably by the Hon’ble Delhi High Court.

Product

Maruti has strategically decided where their product will be positioned in the

market. They consider ‘position’ held by their cars in the market will be how they

want the products to be perceived in terms of factors such as brand image, value

for money, price availability etc. This is done in relationship to the competitors.

Maruti 800 & Omni have no competition in the market the are the only players

in the market in Segment A

Zen, Alto & Wagon R are positioned against Daewoo’ s Matiz; Hyundai -

Santro ; and Tata Indica. This is the segment where Maruti is facing stiff

competition.

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In segment C Esteem has competition with Ford ikon , Opel corsa, Hyundai’s

Accent. Baleno is facing competition with Honda city, Mitsubishi Lancer, Opel

Astra.

Price is the value (usually measured in monetary terms) that a seller agrees to

sell a product or service for and the value at which the buyer agrees to purchase.

The exchange transaction can either be :

Fixed: the price is given and the buyer either agrees or disagrees;

Negotiable: buyer and seller bargains until a mutual price is agreed;

A Variation: one element may be fixed and the other elements negotiable.

The method used will vary from product to product and from market to market.

With some products the prices may be fixed and no negotiation will take place like

in case of cars

Price the company will charge will greatly affect the eventual level of sales. The

price is an integral part of the product and will perform many tasks in bringing

about eventual purchase. The most important of these tasks is to match the value

and the benefits expectation of the consumer. Too high a price in relation to

perceived product benefits, the customer might think he is not getting value for

money and will buy products from competitors. Too low a price and the customer

will think the product inferior and again, reject it.

Price :

Pricing Objective Of Maruti

Achieve a specific target return on investment or on the net sales

Maintain and enhance market share

Meeting competition

Maximize profits

Stabilize prices

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Methods Used In Pricing Maruti’s Products

Maruti uses two methods while pricing its products. These are as follows:

Cost–plus pricing : This method of pricing has an immediate attraction

because of its apparent simplicity. The cost of the product is worked out by

allocating a portion of the fixed cost to each product and then adding it to the

variable costs. This gives the total cost of each product and the percentage

profit desired can be added to give the selling price.

In using cost-plus pricing there is an assumption made that having established the

total cost price the product manager need only add the desired mark-up. But this

does not take into account the fact that the competition may be offering a similar

product at a lower price, because of greater productivity or willingness to work on

a lower mark-up.

Similarly the customer may be unwilling to pay this price either because they can

purchase the similar product from the competition.

So Maruti keeps in mind the total cost of the product they have incurred along with

that they follow the market pricing.

Market Pricing : Maruti cannot set its own prices in isolation from that what is

happening in the rest of the industry. The competitors in the market will have

cost and price structure which is investigated and analyzed thoroughly.

As perfect competition prevails in Indian Automobile Sector, any price movement

instigated by any of the competitors or any change in government policy will cause

corresponding movements by the competition and this the most important point

which Maruti considers while playing around with product prices.

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Procedure For Setting The Prices Of Maruti Products :

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SET PRICING OBJECTIVES

Estimate the costs

Identify target market

Estimate levels of demand

Position the product

Analyze competitors’ price offers

Consider the effect on vendors & dealers

Select the final price

Make certain it is consistent with overall company policy

Prices Of Different Models Of Maruti :

1. MARUTI-800 :

Variant Colour TypeEx-showroom Price

(Rs.)     

Maruti 800 Std with AC Bh-II

Non-Metallic 226000

Maruti 800 Std with AC Bh-II

Metallic 228700

Maruti 800 Std - Bharat II

Non-Metallic 203300

Maruti 800 Std - Bharat II

Metallic 205900

2. ALTO :

Variant Colour TypeEx-showroom Price

(Rs.)     

AltoLX - Bharat II Non-Metallic 265000

AltoLX - Bharat II Metallic 268600

Alto Spin VXi- Bharat II

Non-Metallic 365900

Alto Spin VXi- Bharat II

Metallic 369500

Alto Spin LXi--Bharat II

Non-Metallic 284800

Alto Spin LXi--Bharat II

Metallic 288400

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3. BALENO :

VariantColour Type

Ex-showroom Price (Rs.)     

Baleno Sedan - Bharat II

Non-Metallic

655700

Baleno Sedan - Bharat II

Metallic 655700

Baleno Altura - Bharat II

Non-Metallic

703800

Baleno Altura - Bharat II

Metallic 703800

4. ESTEEM :

Variant Colour TypeEx-showroom Price

(Rs.)     

EsteemAX -- Bharat II

Non-Metallic 604000

EsteemAX -- Bharat II

Metallic 604000

Esteem VXi -- Bharat II

Non-Metallic 539600

Esteem VXi -- Bharat II

Metallic 539600

Esteem LXi -- Bharat II

Non-Metallic 499800

Esteem LXi -- Bharat II

Metallic 499800

Esteem Di -- Bharat II

Non-Metallic 548100

Esteem Di -- Bharat Metallic 548100

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II

Esteem Velocity Bh II

Non-Metallic 514800

Esteem Velocity Bh II

Metallic 514800

Esteem LX -- Bharat II

Non-Metallic 466600

Esteem LX -- Bharat II

Metallic 466600

Esteem D -- Bharat II Non-Metallic 522500

5. MARUTI GYPSY :

VariantColour Type

Ex-showroom Price (Rs.)     

Gypsy Hard Top 1.3 Bharat II

Non-Metallic

472800

Gypsy Hard Top 1.3 Bharat II

Metallic 475700

Gypsy Soft Top 1.3 Bharat II

Non-Metallic

453300

Gypsy Soft Top 1.3 Bharat II

Metallic 456200

6. MARUTI OMNI :

VariantColour Type

Ex-showroom Price (Rs.)     

OMNI CARGO BHARAT II

Non-Metallic

220100

OMNI CARGO BHARAT II

Metallic 222800

Omni Amb. high roof Non- 257800

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Bharat II Metallic

Omni Amb. high roof Bharat II

Metallic 257800

Omni Flat Roof 8 str Bharat II

Non-Metallic

222000

Omni Flat Roof 8 str Bharat II

Metallic 224800

Omni Flat Roof 5 str Bharat II

Non-Metallic

220100

Omni Flat Roof 5 str Bharat II

Metallic 222800

7. MARUTI VERSA :

VariantColour Type

Ex-showroom Price (Rs.)     

Versa DX - 5s Bharat II

Non-Metallic

400700

Versa DX - 5s Bharat II

Metallic 404300

Versa - DX Bharat IINon-

Metallic400700

Versa - DX Bharat II Metallic 404300

Versa DX2 - 5s Bharat II

Non-Metallic

438500

Versa DX2 - 5s Bharat II

Metallic 442100

Versa - DX2 Bharat IINon-

Metallic438500

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Versa - DX2 Bharat II Metallic 442100

Versa - SDX Bharat IINon-

Metallic490700

Versa - SDX Bharat II Metallic 494300

10.WAGNOR :

Variant Colour TypeEx-showroom Price

(Rs.)     

WagonR AX--Bharat II

Non-Metallic 452900

WagonR AX--Bharat II

Metallic 456500

WagonR LX--Bharat II

Non-Metallic 325400

WagonR LX--Bharat II

Metallic 329000

WagonR VXi--Bharat II

Non-Metallic 376800

WagonR VXi--Bharat II

Metallic 380400

Wagon R VXi Bharat II

Non-Metallic 376800

Wagon R VXi Bharat II

Metallic 380400

Wagon R LXi Bharat II

Non-Metallic 352500

Wagon R LXi Bharat II

Metallic 356100

Zen Estilo

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VARIANT Color Type Ex Showroom price

Estilo Lx 326,172Estilo Lx (M) 329,338Estilo Lxi 356,963Estilo Lxi (M) 360,129

Estilo Lxi CNG 408,963Estilo Lxi CNG (M) 412,129

Estilo Vxi 383,421Estilo Vxi (M) 386,587

Estilo Vxi Abs 412,966

Estilo Vxi Abs (M) 416,132

Swift

Model / Vehicle Type

Ex - Showroom

Price

Swift Lxi 407,341

Swift Vxi 460,984

Swift Vxi Abs 475,831Million Edition 485,189

Swift Zxi 536,227Swift Diesel Ldi 492,163Swift Diesel Vdi 528,662

Swift Diesel Vdi (Abs) 547,277

Swift Dzire

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Model / Vehicle TypeEx - Showroom Price

Swift Dzire Lxi 491,558

Swift Dzire Vxi 543,227

Swift Dzire Zxi 635,770

Swift Dzire Ldi 578,722

Swift Dzire Vdi 627,630 

Swift Dzire Zdi 710,874

SX4

Model / Vehicle Type

Ex - Showroom Price

SX4 Vxi 697,007SX4 Vxi CNG 754,006 SX4 Zxi 772,174 SX4 Zxi (Leather) 806,263 SX4 At 838,271SX4 At (Leather) 872,360 SX4 Vdi 774,000 SX4 Zdi 862,000SX4 Zdi (Leather) 896,089 

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Above are the ex-showroom prices as applicable in New Delhi

Place :

Place is another key marketing mix tool, it includes various activities the company

undertakes to make the product accessible and available to the target customer.

This element of marketing mix, can be broken down into two clear categories:

Distribution channel option;

Physical distribution.

Distribution channels are the alternative method that might be chosen in making

the product / service available to the customer for purchase. In simple terms the

channel of distribution is where the customer will expect to see, and be able to

purchase, the product or service. It is worthwhile breaking channels of distribution

down further into two major areas:

1. Direct distribution: Many companies choose to distribute their product

directly to their customers without the use of an intervening organization,

known alternatively as an intermediary or middlemen. Companies opt for this

distribution channel because of many reasons, few of them are –

Maintaining control over all the elements of marketing mix. This will include

the way the product is presented, its selling price, where the product is offered

for sale and how the product is promoted and sold.

Cost : whether there are cost savings in marketing directly rather than indirectly

will depends on the product and the market circumstances. Superficially there

appears to be a saving as selling direct eliminates the need to pay a percentage

amount, in terms of a reduction on expected selling price, to the intermediary

for undertaking some of the marketing tasks.

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Guaranteed outlet: selling directly should ensure a guaranteed outlet for the

company’s product as there are no intervening bodies between the organization

and its customers, refusing to take stock or taking from elsewhere, and

restricting supply. This can be important because of growing competition and

increased intermediary strength.

Building customer relations: Dealing direct with the end-consumer enables the

producer to communicate and build a very close relationship with the customer.

Focused, specialized attention: A company selling direct can present its

products or services in concentrated and focused way to the customer

unhindered by immediate competitors’ products.

DIRECT DISTRIBUTION

2. Indirect distribution: Many companies choose to use middlemen or

intermediaries to bring their products to the market. An intermediary is an

organization or an individual, which acts as a conduit for product or service

delivery, between the producer and the end-customer.

There can be one, or more, intermediaries in the distribution chain from the

producer to the end-customer and each may purchase the goods either for resale to

end-customer or act as some form of agent, passing on the product to another

intermediary.

INDIRECT DISTRIBUTION

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Producer Customer

ProducerProducer DealerDealer

ProducerProducer

CustomerCustomer

WholesalerWholesaler CustomerCustomerRetailerRetailer

MARUTI makes its cars available to its customer through indirect distribution

network with one-level of intermediary involved in the chain. The intermediaries

are known as Dealers. Maruti’s dealer network is the largest for any car

manufacture in India. Maruti believes that its relationship with the customer does

not end with the purchase of a car. From its inception, Maruti was committed to

providing an excellent network, that would facilitate customers in purchasing

vehicles, accessing spare parts, and getting their vehicles serviced. As on date

Maruti has 182 Dealers, 280 Dealer workshops, 1333 Maruti Authorized service

station, 26 Spare part (stockists) outlets and 11 MGP Shoppe boutiques spread over

665 cities across India.

Physical distribution is how the product / service actually gets to the customer

once the choice of channel has been made. It involves planning, implementing and

controlling the physical flow of goods and services from the organization to the

customer efficiently, effectively and at the lowest possible cost. Physical

distribution can be a very costly process, in some cases it can be as much as 25

percent of the total costs, and it is an area where many companies have managed to

make huge savings and gain competitive advantage by lowering costs and making

savings in the methods used.

Maruti take physical distribution not as cost but as a way in which company can gain

competitive advantage by offering the customer added benefits, better services or

lowering prices through continuous improvements in the methods used.

Physical distribution is making sure that the requisite goods are available when

and where the customer demands. Maruti has set its distribution objective in terms

of the task that needs to be performed and relate to the overall sales objectives for

the product and the channel outlet chosen. Maruti has clearly identified and broken

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down the amount that will needs to be delivered to each outlet or delivery point to

meet the agreed sales objective. Maruti has made its objectives

Specific

Measurable

Achieveable

Realistic

Time Based

Order Processing: Maruti has a computerized order processing. All the dealers of

Maruti are connected through Intranet. The orders are placed online. The dealer

has to sent an indent to the Sales & Dispatch Department of Marketing Division, in

which the dealer specifies the demand for a particular model, colour etc. The

orders are placed every day. & The next morning the cars are dispatched to the

dealer. Funds are deducted from the working capital account of the dealer. Dealers

also help the company to know what is actually demanded in the market. It acts as

a link between the customers and MUL.

Maruti makes it a point that there is no delay in processing the orders and

invoicing of the products. The speed of delivery is a major way of gaining

competitive advantage, which MUL has capitalized on.

Promotion :

Promotion is the communicative element in the marketing mix and it comes into

use only when the other three P’s, product, price and place, have been developed

and coordinated and are ready to meet the needs of the identified target market.

Because products, customers and markets are complex and different the

promotional tasks that need to be undertaken will also be complex and different

35

necessitating the use of many different types of communication techniques. These

include activities such as TV and press advertising, sales promotion, maintaining

good relations with the press to obtain free publicity, and employing sales to talk,

discuss product benefits with the customer and hopefully form long-term mutually

beneficial relationships. These different techniques are called Promotion mix.

Role That Product, Price & Place Play In Promotion

If the product, service or brand promises more customer benefits than actually exist

or are perceived to exist, then the customer will be disappointed after trial and no

matter how aggressive and intensive the advertising, the customer will feel

aggrieved and even cheated and so will not purchase again.

Similarly if the price is too high or too low in relation to the product value, or if the

chosen channel of distribution is not at the level expected, then advertising or sales

promotion, while initially creating interest or even purchase, will find that the

customer disappointed will militate against repeat purchase and might also cause

long-term corporate damage

The product, price, and place will also communicate a good or bad message to the

customer.

Maruti’s Promotional Campaign

MUL takes care of certain factors while planning a promotional campaign. These

are as follows:

Promotion Objective: MUL decides the promotion objective i.e. what does the

company want to achieve through the use of communication techniques; like, to

create awareness of the new car models launched and existing models, to

reinforce existing beliefs, to get customer to buy the car, etc.

Promotion Strategies: What major methods will be used and why, to achieve

these objectives. This stage will consist of choosing one or more of the

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promotional mix techniques. MUL selects the best promotional tools –

advertising, sales promotion, publicity etc to promote its product.

Target audience: MUL defines the target audience at which it is going to aim

its messages. This also involves constructive detailed customer profile for the

target segment.

Message: The message content and the method of presentation is kept in line

with the product positioning statement.

Promotional Tactics: The promotional strategy is broken down into its

constituent parts. For example: If above the line advertising strategy is used

then the elements of the media mix are also selected in detail. If below the line

sales promotion strategy is in place then various methods like free holiday,

incentives, etc are studied in detail.

Budget: Amount of money is allotted and Maruti sets promotional budget

every year. In the year 2001-2002, Rs. 900 million were spent on

advertisement, publicity, sales promotion & business development.

Feedback, Monitoring and Control Mechanisms: Feedback, monitoring and

control mechanisms are implemented to make certain that agreed promotional

objectives and performance indicators are achieved. This process is operated

through the use of some form of market research.

Integration: Finally all the methods used are integrated in a cohesive,

consistent, logical manner to meet the needs of the target audience.

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Promotional Mix Of Maruti Udyog Ltd. :

Advertising

Sales Promotion

Publicity

Advertising :

Any paid form of non personal selling of the company’s product by an identified

sponsorer is called as advertisement. Reliance has engaged in many types of

advertising campaigns which have successfully helped Reliance India Mobile to

get itself established in the Indian Telecommunication Society.

Advertising is used by Maruti to

Inform: about the new products(Alto, Baleno, WagonR) launched in the market

by MUL

Educate: about the need for road safety training or the use of seat belts

Reinforce: give reason (largest service network) why the customer should

remain with the brand.

Persuade: customer to buy Maruti products.

Maruti’s Media Mix

The media mix known as “above the line” promotion, consists of the major

methods of advertising MUL products under the following headings:

Television: It is probably the most recognizable form of advertising. Marketing

opportunities have increased as TV and computers have been combined in Internet

38

and multimedia offerings. Television advertisements have mass reach; the products

are advertised across the whole country with the potential to reach 95% of the

population. No other medium used by Maruti has the same capability. MUL has

been using emotional appeal in their advertisements also the effect of the ad

doubles as the product can be seen and demonstrated in the best possible manner.

Print Media: MUL gives print advertisement in newspapers, magazines &

journals. Maruti uses this medium of advertising less aggressively though it saves a

lot of money, targets accurately.

Cinema: Research has shown that there is a clear customer segment that regularly

goes to cinema and it is good medium to advertise the products. Also the impact of

advertisements shown in cinema is greater then that of TV though the coverage is

very low. Maruti advertisements are also shown in premier cinema halls.

Outdoor: Outdoor posters are used as reinforcement to the primary medium such

as TV or print. Maruti has been extensively using this medium of advertisement.

Sales Promotion :

The second major promotional mix method used by MUL is the use of sales

promotion also known as “below the line” promotion. Sales Promotions are short

term incentives used to boost sales. It takes the form of some kind of extra value

that is added to the product for the period of the promotional campaign. The MUL

sales promotion strategy is to increase sales, either overall or on specific models.

Most of the schemes of sale promotion are at national level. Local level schemes

are formulated and implemented by regional offices. MUL does its sale

promotion in three basic ways:

Consumer sales promotion: MUL promotion is usually a short term incentive

that urgently trumpets the message to the consumer ‘buy now rather than later

39

otherwise it will be too late and the opportunity will be lost’. MUL has been

gifting Gold coins to its customers on purchase of Maruti Esteem, which is

relatively slow moving model. Also customers are offered free holiday

packages to various destination within & outside India, discount coupons, free

magazine subscription, etc.

Dealer sale promotion: Most of the sales promotion schemes are for dealers.

Generally incentives are given to dealers based on the target achievement. The

incentives can also be a free holiday package abroad. In order to clear old

stocks of relatively slow moving models, MUL announces some special

incentive scheme, which are paid on lifting those specific old vehicles in stock.

Finance company sales promotion: MUL gives incentives to finance

companies & financial institutions as subvention on certain models, which they

use to incentives customers.

Publicity :

The next major promotional mix technique used by MUL is the use of publicity.

Publicity is any form of planned, unpaid for media exposure that promotes the

company or its products in favourable light. This consists of items of news or

stories that appear in newspaper, magazines and on the television about the

organization, their products, their directors, their employees, etc. MUL understands

the value of good publicity. Marketing Department of MUL is concerned in using

Public Relations and Publicity as a planned element of the promotion mix

specifically to communicate favourable message to its customer about the

organization’s existing & new products.

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The Tool Of Publicity :

The press or news release: The press is probably most widely used by Maruti

for gaining free coverage in the national press. Information is sent to the

newspaper to be printed.

Press and news conference: The news conference is another method of

building relationships and publicity, by MUL. Journalist from both TV and the

press are invited to hear some new development in the organization. After the

conference there is time allowed for question and answer session.

Events: MUL plans staging of activity knowing that it will be reported in the

media.

Public service activity: Maruti has been actively involved in providing

medical support and welfare, education and training, taking steps towards

conserving energy resources and a host of other activities in the development of

a healthier community life and providing welfare relief. Maruti has been

constructing & maintaining roads in Gurgaon.

Exhibitions: An exhibition takes many forms and is seen as a marketplace for

both displaying products & services and as a way of getting producers and

customers together. The mounting of an exhibition includes all the elements of

the promotional mix. MUL takes part in various trade as well as consumer

exhibitions. The Maruti’s objective in taking part in exhibition is:

To build goodwill, inform and educate; and pave the way for future sales

To communicate corporate image

To meet competitors

To make appointments and take sale leads.

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Sponsorships: Sponsorship is giving of some form of support, usually money,

in return for an advertisement, sales promotion, publicity or sales opportunity.

There has been enormous growth in this media form over the last decade and

this looks to continue into the future. Maruti has also increased sponsorship in

various events.

Maruti is a serious sponsor of golf & polo tournaments. The auto flagship

has sponsored the hole-in-one concept in Pro-Am Golf Tournament. Maruti

will also be the official sponsor of the Scindia Gold Cup Polo Tournament

on behalf of its Baleno brand.

Maruti is extensively sponsoring various programmes in both TV as well as

Radio.

Maruti has been sponsoring various charity shows. Recently they had a

show for Gujrat Relief Fund.

An Institute for driving training and research, a professional school, is

managed and sponsored by MUL.

New campaigns :

Maruti Alto

Celebrate changing seasons...

The Alto Celebration limited edition. Just a few of these great performers will be

made. Fully loaded, this beauty has it all - style, speed and the best fuel efficiency

in its class. All for a little extra. Hurry! They go really fast.

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Headline: Enjoy the curves.

Subhead: The best just became unbeatable. The new Alto VXi. Now with True

Response Speed Sensitive Electronic Power Steering.

Baseline: The hottest little car in town.

Agency: Lowe Lintas

Client: Maruti Alto

Headline: It's known to be the strongest form of temptation.

Subhead: One look and you'll crave to possess it. After a short drive, you'll never

want to let go. The new Maruti Suzuki Alto. If for some strange reason you can't

have one, cry baby cry. Or just walk into your nearest Maruti dealer for instant

gratification. Check out the new Alto.

Bodycopy: Sizzling Performance

The Alto's 4 valve per cylinder MPFI engine, controlled by a 16-bit computer, has

the best Throttle Response to give you the ride of your life.

Macho Looks :

Say 'bye bye' to cutie small cars. The Alto looks sporty and muscular. No one

Messes with it on the road.

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Solid Build

What a body!! The Alto is tough in every way. Built to the latest international

safety standards. Protects you like a bodyguard.

Baseline: The hottest little car in town.

Maruti hikes Alto export target to 24,000 units

Udyog, India’s largest car manufacturer, has increased its export target for the Alto

to 24,000 units for this fiscal.

Sold as Alto 1.1 in India, the Maruti Suzuki Alto was launched in Europe at the

Geneva Motor Show held in March 2002. A company spokesman says the Alto is

receiving good reviews in Western Europe since then. Due to its fuel economy, the

Alto entitles its customers to a refund of Euro 1000 from the Netherlands

government.

Initially the target for Alto exports was fixed at 14,000 units. After its launch in

Germany, the Netherlands, Finland, Greece, Australia, Ireland and the UK, the

Indian company decided to increase the target by another 10,000 units. The

company will be adding new European markets to its portfolio.

On the whole, Maruti hopes to increase its car exports to 31,000 units this fiscal,

compared to 12,232 vehicles it shipped out last year. Cumulatively, the company

has exported 2.5 lakh cars — 70 per cent of that to Europe. Out of this export, the

Maruti Zen accounts for 1 lakh units. The company is the largest Indian car

exporter both in terms of value and volume.

44

Maruti Udyog focuses on Alto and WagonR to drive sales

From the recent promotional and pricing support being extended to the Alto and

the WagonR, it's clear that Maruti Udyog ltd (MUL) is banking on these two cars

to fight its way to the top again.

Last month MUL in association with other companies, notably JK Tyre and auto

magazine Overdrive, conducted a highly-publicised performance-stress test on the

Alto Lx, subjecting the car to a 24-hour full-throttle on a test track.

Subsequently, early this month, in a move aimed at targeting entry level buyers,

MUL slashed prices of the Alto LX and the Alto LXi, both 800cc cars, by Rs

23,167, in effect creating another category between the A1 segment M800 and the

A2 segment Alto Vx. After the cut, the ex-showroon Delhi price of the Alto LX

and the LXi stands at Rs 265,013 and Rs 284,756, respectively.

Says a company spokesperson: "Our strategy is that the new prices, together with

cheap and convenient car finance, will make the Alto a very attractive option for

the large number of first-time car buyers as well as customers who wish to upgrade

from a Maruti 800."

The idea is to position the Alto Lx 800 as an entry-level car in metros and mini-

metros, while the M800 is to be targeted at small towns and semi-urban areas.

Alto's price cut is expected to generate the same kind of interest in the B segment

that the July 2002 price reduction of the M800 brought in.

MUL's other object of focus is the WagonR. The car is being positioned in the B

segment and MUL recently announced a ramped-up variant of the WagonR. The

new variant will have clear lens headlights, a spruced-up interior and some styling

changes at the rear. The variant will be launched before Diwali this year.

WagonR's and Alto's sales have been on the upward path since the past one year.

In the first quarter of the year (April-June 2003) the sales of WagonR increased by

64 per cent to 10,512 units, while the Alto clocked a 46-per cent growth at 8,143

units.

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Taken together the two notched up a sales figure of 18, 655 units. Adding the sales

of the Zen, MUL's third compact car, the numbers come out even better. As a

consequence, MUL's domestic sales in the first quarter of this year touched 90,698

units, 37 per cent higher than sales in the last year's corresponding period.

In the first quarter of the present fiscal, MUL's compact cars taken together were

able to average sales of about 6,000 units per month. On the other hand the

Hyundai Santro, the leader in the B segment, on an average sells 7,000-7,500 units

per month while the Tata Indica clocks a little less in the domestic market.

MUL's focus on the B segment stems from the fact that growth in this segment has

been uncertain this year, registering a flat 0.8 per cent in March to 17.26 per cent in

April to 25.19 per cent in May, 6 per cent in June and 25.7 per cent in July.

Cumulative April-July figures indicate that at 94,787 units, growth is up just 4.5

per cent over last year's 90,674 units. Moreover, month-on-month sales have

remained flat, from 22,371 units in April to 27935 units in May, 27,901 units in

June and 27,454 units in July. B-segment players are thus looking at ways of

reviving interest in the segment.

Hyundai has done this by introducing the new upgraded Santro Zing, while there

has been fresh action in the premium B segment with the launch of the Corsa Sail

and the upgraded Palio NV.

Earlier this year, MUL launched a special limited edition of its Alto LX in two

variants priced at Rs 3.02 lakh (ex-showroom Delhi) and Rs 3.22 lakh with

electronic power steering. This was about Rs 15,000 more than the Alto LX and

the LXi (with electronic power steering) cars priced at Rs 2.87 lakh and Rs 3.07

lakh, respectively.

(non A/C) variant of Alto for Rs 2.3 lakh

Car market leader Maruti Udyog Limited today announced the launch of a brand

new variant of its exciting small car, Alto.

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This new variant offers the contemporary styling, superior performance and the

outstanding fuel efficiency that the Alto is known for.

It will be priced at Rs 2.3 lakh (ex showroom, Delhi), making it Rs 35,000 less

expensive than the existing base model, the Alto LX.

The new variant comes with the provision for retro-fitment of an air-conditioner.

Customers are thus free to decide if and when they want to retro-fit an Air

Conditioner in their car from a Maruti dealership.

Record Growth

The Alto has grown at a scorching pace in the domestic market in the past two

years. It was the country’s fastest growing model in the A2 Segment in 2003-04,

growing by a whopping 135 per cent. In all, 60,629 Alto vehicles were sold in the

domestic market during the year.

Exports of the Alto raced to a level of 36,436 units during the year 2003-04, up

from 23,869 units in 2002-03, a growth of 53%.

The Alto has been a consistent favourite with young, trendy couples, like the one

featured in the popular television commercial for the Alto brand.

Research shows that the Alto customer is younger, often with a small family. The

values of fun, youth and energy have become closely identified with the Alto.

Target Customers

The latest variant of Alto is in keeping with Maruti’s overall strategy of winning

customers by offering a wide choice of products.

Brand Alto already comes in three variants. These include Alto Lx (Rs 2.65 lakh),

Alto LXi (Rs 2.85 lakh) and Alto VXi (Rs 3.66 lakh) (All prices, ex showroom,

Delhi)

This variant is targeted at people who are keen to own an A2 Segment car and plan

to buy one over the next year or so. It will enable them to end their wait and make

the purchase now. In other words, the message for these waiting families is : 'Let’s

Go'.

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Alto with Power Steering for just Rs 3.19 lakh

Maruti Udyog Limited, car market leader, today announced the launch of its latest

variant, Alto LXi. It comes equipped with Maruti’s superior Electronic Power

Steering while offering all the features of the Alto LX.

Priced aggressively at Rs 3.19 lakh (ex showroom, Delhi), the Alto LXi will appeal

to a wide range of customers, including first time car buyers and existing owners of

Maruti 800. Currently, the minimum price for a car with power steering in the

domestic market is Rs 3.4 lakh (ex showroom, Delhi).

'Our research shows that customers want power steering in their cars because it

makes the car easy to drive, easy to turn, easy to park and easy to manoeuvre in

city traffic. But many customers are deterred by the high price they have to pay for

cars with a power steering', said a Maruti spokesperson.

'The Alto LXi now brings power steering within the reach of first time car buyers

and existing owners of Maruti 800', the spokesperson said. Power steering has

emerged as the most popular feature after air conditioner among owners of small

cars. An estimated 30 per cent of cars currently sold in the B and C segments have

a power steering.

More fun, youth and energy

The power steering in the Alto LXi will enhance the brand personality of the Alto

which stands for fun, youth and energy. A popular brand in Western Europe, the

most competitive market for small cars, the Alto has enabled Maruti to consolidate

its leadership in the domestic compact car segment.

The company recently introduced two new colours, Solid Bright Red and Laguna

Blue, across the Alto brand range. This has added on to the Alto’s brand

personality. The Alto also comes in Cool Silver, Miami Gold, Coral Biege and

Superior White.

Superior Power Steering

The Alto LXi draws its strength from Maruti’s superior Electronic Power Steering

(EPS) compared to the ordinary power steering offered by competing products.

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The EPS is safer and provides for better car control compared to ordinary power

steering. At low speeds, the computer-controlled sensors in the EPS provide more

power and facilitate parking. At higher speeds, where an ordinary power steering

can throw the vehicle off track, Maruti’s EPS reduces assist to an adequate level

and improves control.

The EPS has an in-built computer, which contributes to higher responsiveness. It

has an advanced self-diagnostic feature. Besides, it entails lower maintenance cost

and is more compact than the ordinary power steering.

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Marketing & Sales In Maruti :

The M&S Division is headed by Mr. J. Sugimori, Director (Marketing). It

comprises of the following departments.

50

MARKETING & SALESDivision

MARKETING & SALESDivision

Sales Planning DepartmentSales Planning Department

Marketing Planning Department

Marketing Planning Department

Export – 1 & 2 DepartmentExport – 1 & 2 Department

Sales & Dispatch DepartmentSales & Dispatch Department

Regional OfficeRegional Office

Dealer DevelopmentDealer Development

Marketing DepartmentMarketing Department

Marketing Department

The Marketing Department is responsible for creating a “customer pull” for

Maruti’s products. The main functions of this department are:

Advertising research

Product Advertising and Promotion

Corporate Advertising

Formulating Corporate Identify Guidelines

Organizing sales training for dealers

Organizing exhibitions and rallies

Developing Socially Relevant Campaigns

Providing Support to dealers on advertising, promotion and showroom up-

gradation.

Regional Offices

In order to manage the sales and service network, Maruti has divided the country

into five regions, which are further into territories. Maruti has five Regional

Offices located in Delhi, Bombay Calcutta, Chennai and Chandigarh and Area

Offices located at Lucknow, Hyderabad & Mumbai.

Each dealership operated in one territory, but does not have exclusive selling rights

in the territory. The dealer is expected to service the entire territory through his

dealership.

The Regional Office (RO) has the primary responsibility of managing, monitoring

and supporting the network in a region. The RO has field staff for Sales and

Services. A Regional Manager (RM) heads each RO. The sales staff has primary

responsibility for all sales related issues, and report to the RM. The services

engineering’s look after the workshops and MASSs in the region, and report to the

Regional Service Representative (RSR).

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Sales & Dispatch Department

The Sales & Dispatch department (S&D) is responsible for the logistics of the sales

function. The main areas of work in the department, relevant to domestic dealers

are described below. Each group of functions is assigned to a cell.

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MARKETING STRATEGIES OF MARUTI SUZUKI :

Marketing strategy is the complete and unbeatable plan designed specifically for

attaining the marketing objectives of the firm.

The marketing objectives indicate what the firm wants to achieve; the marketing

strategy provides the design for achieving them.

It is the marketing strategy that decides the success at the business unit level which

in turn decides the total corporation’s success. The link between marketing strategy

and overall success is indeed direct and vital. And in this linkage lies the

significance of marketing strategy.

Maruti Udyog Ltd. has an aggressive marketing strategy which is very well

understood when one goes through the in-depth study of 4-P’s of marketing and

price strategies with respect to its products as explained in the previous section.

One comes to the conclusion that maruti has a well defined roadmap to success i.e

to reach its ultimate objective of realizing Customer Satisfaction through value for

price products.

Formulating the Marketing Strategy

Marketing strategy is not a nebulous idea. It is a well oriented game plan. And

there are definite ways of formulating it. Basically, formulation of marketing

strategy consists of two main steps.

Selecting the target market

Assembling the marketing mix

Selecting the target market

Maruti has successfully selected the car market which its going to cater to these are

Mid Size Cars

Segment-A Cars (catering to Middle Income group)

Segment-B Cars (catering to Upper-Middle Income group)

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Segment-C Cars (catering to High Income group)

The details of these are prvided in previous sections.

Assembling the marketing mix

Assembling the marketing mix means assembling the 4-P’s of marketing in the

right combination as explained in the previous section. Involved in this process are

the choice of the appropriate marketing activities and the allocation of the

appropriate marketing effort to each one of them. The firm has to find out how it

can generate the best sales and make profit. It plans different marketing mixes with

varying levels of expenditure in terms of the possible sales and profit. It then

chooses the combination that is the best according to its judgment.

It is not though that the firm can take rest, once it has assembled and put through

its marketing mix. The marketing mix is a dynamic entity. The mix has to be

modified and manipulated depending on requirements.

Markerting Strategies Fall Under Two Generic Categories :

Price Based Marketing Strategy

Differentiation based Marketing Strategy

Price Based Marketing Strategy

Maruti Basically plays the pricing game to cut down the competition in market.

This the real trump card which has worked for past many years in India. But now

this strategy has failed for automobile sector. Now it can work only a new trump

card which is technology and Maruti has started using this along with price to win

even in international markets.

Maruti is continuously winning the price game for the past many years and to this

habit to win Maruti is planning to launch many cars in near future as the price

difference of just Rs. 25,000 for each sub category. This product differentiation

will provide Maruti a niche in the market to cater to different market segments of

54

customers effectively. This product launch will be so fast that within an year we

will be familiar with at least five new models of Maruti.

But another card to win this competition is technology. Maruti is trying very hard

to get this card along with its global technology partner Suzuki. Recently launched

Baleno is a technological milestone for Maruti. Other forthcoming cars also will be

technologically way high. In light of growing sluggishness in the automoble

market as a result of uncertainty over the sales tax issue, Maruti Udyog Limited as

the leader of automobiel market announced strong initive to kick start the market.

Differentiation based Marketing Strategy

Market Strategy based on Differentiation works on the principle that any aspect of

the offer and any activity of the firm can be made a distinctive compared with the

competing offer.

Maruti time and again have been successful in using this strategy in gaining a

competitive edge over its own previously launched models (discussed in the Price

section of the Marketing Mix) & in the market over its competitors.

The host of products that Maruti encases within itself is unmatched till date by any

Indian or Foreign car manufacturer. All this have been discussed in the Product

section of the Marketing Mix.

COMPARISON WITH OTHER MARKET PLAYERS

55

Maruti 800 :

FeatureMaruti

800 Deawoo Matiz

Hyundai Santro

Fiat UnoTata

IndicaMaruti Advantage

No of Valves

4-valves 2-valves 3-valves 2-valves 2-valvesLower emissions, superior performance

Electronic Control Module

16-bit computer

8-bit computer

8-bit computer

Not Known

16-bit computer

Precise running of engine in all

conditions- i.e., faster response

Design Tried & Trusted Design

New Design

Copy from

Suzuki Shape

Old ShapeNew

Design

Economically priced spares Easy

repairable through Maruti network

across India.

Price Economic

al entry level price

Expensive

Expensive

Expensive Expensive Affordability for all

Esteem :

Feature Esteem Ford IkonHyundai Accent

IndigoMaruti

Advantage

Power-to-weight

Ratio(bhpx1000/kg)

99(85bhp, 860kg)

70(69 bhp, 978kg)

92(94bhp, 1023kg)

79(85bhp, 1065 kg)

Faster pick-up. Better

acceleration

No. of valves/cylind

er4 2 3 2

Extra power and superior

fuel efficiency

Electronic Control Module

16 bit Not known 8 bit Not knownFaster engine

response

Total Cost of Ownership(R

s./km)*3.53 4.24 4.14 Not Known

Easy on your purse. Best value for Money

Fuel Efficiency**(

kmpl)

12.6 11 11 NA Best fuel economy

among Petrol

56

sedans

Source: Published literature & brochures.*Autocar India December 2002(Owner reported cost of ownership) **Autocar India November 2002. (Owner reported fuel mileage)

Maruti Zen :

Features Maruti

Zen Deawoo Matiz

Hyundai Santro

Fiat Uno

Tata Indica

Maruti Advantage

Performance

993 cc 796 cc 999 cc 1242 cc 1405 cc

Best engine design means greater

efficiency from optimum size. Smaller

engine means more wear and tear, larger means greater fuel

consumption

No of valves

16-valve 6-valve 12-valve 8-valve 8-valve

4-valve per cylinder configuration allows

for more efficient burning of fuel, better engine response and

lower emissions.

Power to weight ratio

60 bhp for 755

kgs.

52 bhp for 800

kgs.

55 bhp for 776

kgs.

60 bhp for 840

kgs.

75 bhp for 980

kgs.

Best power in relation to weight means

nimble movement and fantastic power

delivery combined to excellent fuel consumption

Electronic Control Module

16-bit compute

r

8-bit computer

8-bit computer

Not known

16-bit Precise running of

engine in all conditions - i.e. faster response

57

Steering

Electric Power

Steering on Vxi

Ordinary Power

Steering on SP

Ordinary Power

steering

Ordinary Power steering

Ordinary Power steering

Latest in technology, unmatched road feel

and feedback and fewer moving parts =

more reliability

Stereo

Kenwood Stereo in Vxi,

D

Daewoo Stereo in SE, SP

Not available

Not availabl

e

Not availabl

e

Factory fitted stereo for miles of musical

pleasure

Electric Window

Electric Window

One-Touch

for driver

Not available

Not available

Not availabl

e

Not availabl

e

Convenience feature for toll booths, fast

food joints etc.

58

Baleno Sedan :

FeatureBalenoSedan

HyundaiAccentGLS

City1.3 DX

Ford Ikon

1.6 NXT

HyundaiAccent Viva

Corsa 1.6GSi

The Baleno Advantage

Engine Capacity

1590 cc 1495 cc 1343 cc 1597 cc 1599 cc 1598 cc Power at your

command .

Number of valves

16 12 16 8 16 8

Better breathing characteristics, less stress on engine and

hence better engine life.

Maximum

Torque (Nm/rp

m)

132@3000

125@3500

111@4700

130@2500

144@4499

126@3200

Highest torque in its class;

Quick acceleration;

Minimum gear changesdue to

flat torque curve; Reserve

power and better

driveability.

Maximum Power Output (bhp/rp

m)

94@6000

94@5500

90@6400

91@5500

102.6@5799

92@5600

Excellent Power to

Weight Ratio for maximum fuel efficiency

Suspension -

Front

McPherson

strut

McPherson

strut

McPherson

strut

McPherson

strut

McPherson

strut

McPherson

strut

Better handling and silk-

smooth ride on all surfaces.

Minimised road noise and

vibration in passenger cabin

Suspension -

McPherson

Dual link Trapezoidal

Heavy duty

Dual link Crank Compou

Better handling and silk-

59

Rear struttwist beam

system

nd Suspensi

on

smooth ride on all surfaces.

Minimised road noise and

vibration in passenger cabin

Stereo System

PresentNot

presentNot

presentPresent Present Present

Kenwood System with

Remote Control

Elect. controlle

d rear view

mirror

PresentNot

presentNot

presentPresent

Not present

PresentBetter Driving

Comfort

Front Seat

Height Adjuster

Present PresentNot

presentNot

presentPresent

Not present

Comfortable Driving Position

Power Antenna

Present PresentNot

presentNot

presentPresent

Top tiltantenna

Convinience of Operation

Keyless entry with

security Alarm

PresentNot

presentNot

presentNot

presentPresent

Not present

Unparalled security for

your car

Rear Spoiler

PresentNot

presentNot

presentNot

presentNot

presentNot

present

Alloy wheels

PresentNot

presentNot

presentNot

presentPresent

Not present

Alto :

ENGINE PERFORMANCE

Feature Point

Alto Vxi (Spin)

Santro Zip Plus

Indica LSi

Palio 1.2The Alto

Advantage

Ignition Dual distributor-

Distributor-less ignition

Not availabl

Distributor based

Two ignition coils result in faster start

60

less digital ignition (DDLI) (Two

Ignition Coils)

(Single Ignition Coil)

e ignitionand efficient ignition as compared to single coil.

Onboard Engine Check

Available Not available

Not available

Not available

Greater convenience, faster repair and low maintenance cost.

Electronic Control

16 bit computer

8 bit computer16 bit computer

32 bit computer

Faster, precise and accurate engine response adding to overall performance.

Power Steering

Electronic Power Steering

Hydraulic Power Steering

Hydraulic Power Steering

Hydraulic Power Steering

Speed Sensitive for greater control on fast drives and low maintanence cost.

Flat torque curve

Flat torque curve

Irregular torque curve

Irregular torque curve

Irregular torque curve

Comfortable city driving eliminating need to change gears frequently.

Faster pick up - Exhilarating performance.

1C4V Technology

Available Not availableNot available

Not available

Better breathing characteristics with more number of valves. This reduces load on the engine and increases their life.

Total no. of valves

16 12 8 8 Better fuel management, lower emission, better engine performance and more available power. Better breathing

61

characteristics.

Max. speed*(km/hr) 156

148 153 154 Thrilling drive.

Power to weight ratio (bhp/tonne)

84 81 74.6 71

More available power per tonne of load. Better pickup, faster acceleration.

Engine displacement 1061 cc

1086cc 1045cc 1242 ccOptimum engine displacement leading to longer life.

Turning Radius(m)

4.6 4.4 4.9 5.1Better manoeuvrability and ease of parking.

INNOVATIVE FEATURES

Feature Point

Alto Vxi (Spin)

Santro Zip Plus

Indica LSi

Palio 1.2 The Alto Advantage

'Key not removed' reminder chime

Available

Not available

Not available

Not available

Reminder if key is left in the ignition switch.

'Lights on' reminder

AvailableNot available

Not available

Not available

More user-friendly. Is very useful during foggy and rainy conditions when we switch lights on during daytime and tend to forget switching them off.

Electronic Tachometer

AvailableNot available

Not available

Not available

Improves driving efficiency by changing gears at the right RPM. Also, one can check the rpm during idling and find out whether the engine is properly tuned or not.

62

Electronic Odometer and Multi-trip meter

AvailableNot available

Not available

Not available

Allows two people to log in distances covered simultaneously. Since, it is digital, it is tamper-free.

*Autocar India issue 2002

Wagon R :

Unmatched Performance

Wagon R Santro WagonR Advantage

64 bhp low friction engine 63 ps engine Superior engine, better fuel efficiency, more power lower emission

16 valves (4 valves per cylinder)

12 valves (3 valves per cylinder)

Superior engine, better fuel efficiency, more power lower emission

Power to weight ratio = 77.6 bhp/tonne

Power to weight ratio = 73.8 bhp per tonne

Faster acceleration, better pick up

16 bit computer 8 bit computer More intelligent & faster engine response

On board engine check No on board engine check

Low maintenance costs, faster repairs

Electronic Power Steering Ordinary Power Steering Lesser load on engine, more steering control at higher speeds

Fuel Efficiency = 13.7 km/l(Owner reported mileage in

NFO survey)

Fuel efficiency = 13.3 km/l

Better fuel economy

Unmatched Space and Comfort

Wagon R Santro WagonR Advantage

Fully flat reclining front seat and reclining rear seat

Not present Airline seating comfort

Electronic power steering (EPS)

Not present Flexible seating and more space for luggage

63

Total boot space: 312 litres Total boot space: NA Maximum boot space

Maruti Gypsy King MPFI :

Feature

Maruti Gypsy King MPFI

Mahindra

550 DP

Commander

Marshal Tata Sumo

The gypsy King Advantage

Power80 bhp @6000

rpm

62 bhp @4500

rpm

62 bhp @4500

rpm

55 bhp @ 3000

68 bhp @ 4500

Most powerful four wheel drive in the country.

Kerb Weight 985 kg1355 kg

1370 kg Soft top

1670 kg (Soft top)

1700 kg

Easier drivability on muddy ground and in sandy

areas

Power to weight

ratio(bhp/tonne)

Soft top 81.22

45.75 45.25 32.93 40

Faster acceleration. Engine can survive in

extreme climatic conditions

Ground Clearance

210 mm200 mm

200 mm 200 mm 160 mm Better off-road handling

Turning Radius

6 m 6.34 m 6.6 m 6.6 m 5 m

Quick response in emergency or heavy traffic situation Better maneuverability.

64

COMPETITIVE STRATEGIES IN

LAST FIVE YEARS :

Five years back many new entrants were getting into market and giving competition

to Maruti, because of which MUL had to under go many changes. The changes that

took place have been listed below:

Market Trend Changing strategies in Business (MUL)

With the enhanced competition in the market due to globalization and many new players. The focus had started getting to customer. Because now, customer was getting better or so to say more variety interms of cars.

a. Maruti, in orders cope this competition came up new models and also changes in the old ones.

b. The cars are now enhanced with more accessories and variety of colours.

c. Maruti started its customer oriented approach.

d. To sustain one market share made some changes in one market strategy as well such as making advertisement which would show one deep association of Maruti with Indians and at the same time reflect the technological changes.

Customer was getting aware with the availability of choice to him thus he now asked value for every Penny is spent.

a. MUL in this course of time launched new models well within one reach of common man. Maruti makes the cars to suit the Indian pockets.

b. Maruti came up with easy financing schemes. They made the tie-ups with big financing companies such as GE financing and countrywide financing.

c. Maruti started giving the Insurance coverage for its cars.

d. But the best thing that MUL got into was buying & selling of cars

Technological Improvements – The competitors were convincing with better technology which made them cut cost and sell cheap, thus assuring higher technology. Dawoo one such competitor for one

Changes at MUL – Maruti Udyog Ltd., could not just sit back and see its competitors rising andacquiring the market share. Hence they also improved upon technology with one changing times. Infact they are always on the move for new and

65

first time in India came up with Multi point fuel injection (MPFI) which would be more fuel-efficient and saver too.

better technology.

a. Inception of new technology & very soon MUL too adopted MPFI for one new launches.

b. For the betterment of the society and environment they started complying with EURO-II norms.

c. For increasing the efficiency they changed the assembly line to U-Shaped from straight line.

d. Cars came with central locking Sonu Models with power steering & Power windows there were much such advancement.

e. The Design for Maruti-800, the best selling car for MUL was changed to look better and increase efficiency.

f. Another change was done interms of Recruitment and selection policy i.e. MUL now started recruiting more technical staff who would be specialist in their fields with higher work experience.

Quality Assurance- There was a need for quality order to sustain the market share and provide better service to the customer.

Changes incorporated by MUL – Following the customer-oriented approach.

a. MUL now focused itself by providing after sales service.

b. There was an increase in the number of work stations (service centres).

c. First few services required after specific KMs was provided free.

d. The service was assured when the mobile service of Maruti cars came into picture.

66

SURVEY CONDUCTED AT MARUTI SUZUKI INDIA LTD

SURVEY NO. 1

PRODUCT PARAMETERS AFFECTING CONSUMERS PURCHASE DECISION

SURVEY NO. 2

ONLINE BUYING CAPACITY OF CONSUMER

67

PRODUCT PARAMETERS AFFECTING CONSUMERS PURCHASE DECISION :

Business Today's and Mudra's combined teams conducted a survey in 4 cities of

Delhi, Hyderabad, Mumbai and Pune. Both studied 200 respondents consisting

of potential first time buyers, upgrade’s and replacement buyers. It provide that

price is the primary driver of choice for only 36.20% of sample as compared to

38.40% of sample considering fuel efficiency a more important. Other important

revelations were:

1. Most important purchase driver for India's potential car buyer: Ranking done in order consumer

Mileage 38.4%

Price 36.0%

Brand 20.7%

Safety 19.3%

Service 10.5%

Design 8.4%

Resale value 40%

Figures add up more than 100% because of the multiple responses.

68

2. Most important purchase drives for India's first time buyer:

Mileage 36.2%

Price 36.2%

Brand 20.2%

Safety 19.1%

Service 7.6%

Resale value 5.3%

Design 4.3%

Resale value 40%

3. Importance of price in determining the brand of car to be bought

69

Nearly two-thirds of the respondents do not rate the price as over-whelmingly important. So, the price-warriors may be chasing the wrong USP even in the small cars market

4. Importance of price to customers in different income-groups

5. Importance of price to different categories of buyer

IMPORTANT CONCLUSIONS OF SURVEY WERE:

The variety of potential car buyers don't consider the price of small car to be

most important factor.

The cost of ownership of the small car is more important than the acquisition

price

Upgrade’s and replacement buyers value the other features not in low prices.

70

The price matters the more to user car buyer while upgrade’s are far less price conscious. This doesn't help the price-competitors either.

Competing on basis of prices in small car market is a dangerous,

unsustainable strategy

71

ONLINE BUYING CAPACITY OF CONSUMER

This survey was conducted by me during my internship period for MARUTI

SUZUKI INDIA LTD, which shows the buying capacity of the consumers, can a

consumer can buy a car online with the help of his/her credit card provided by any

bank.

The main purpose of this survey was to know that people can buy a car without

approaching or going to any MARUTI showroom.

Today people use internet for any query or help no matter what it is related with, people can ask questions or can get reviews of any car new or old.

72

QUESTIONNAIREName …………………………………………….Age……………. Occupation………………………..

Q1. Do you use internet? Yes: No: Q2. From where do you use internet? ….......................................

Q3.(Applicable if ans to Q1 is Yes) For what purpose you use internet?Email: Information:Net banking Transaction:

Q4. Do you own a credit card? Yes: No:

Q5. What is your credit card limit?Less than 50000: more than 50000:

Q6. Do you purchase products online? Yes: No:

Q7. (Applicable if ans to Q6 is Yes)What was your last online purchase? ……………………………………………….

Q8.What is your maximum online purchase amount? ………………………….…………………………………………..

Q9. Which vehicle do you own?........................................................

Q10. If given an option, would you like to buy a car online?Yes: No:

Q11. (Applicable if ans to Q10 is Yes) What features would you expect?Insurance: Finance:Accessories: Any other:

Q12. (Applicable if ans to Q10 is No) Under which condition, would you be willing to use it for online car purchase?………………………………………………………………………………………………………………………………………............

73

RESULTS OF THE ABOVE QUESTIONNAIRE

Ans of Q1. Only 78% people use internet.

Ans of Q2. 67% people use internet from their home and rest from their offices

or

74

Ans of Q3. Email: 53% Information: 30%Net banking: 14% Transaction: 03%

Ans of Q4. Yes: 78% No: 22%

Ans of Q5. Less than 50000: 67% more than 50000: 33%

75

Ans of Q6. Yes: 23% No: 77%

Ans of Q7. Discount coupons: 07% Services: 35%

Books:11% Gadgets: 47%

Ans of Q8. Below 50,000:100% Above 50,000: 00%

76

Ans of Q9. Maruti: 58% Hyundai: 24%

Honda: 05 Others: 13%

Ans of Q10. Yes: 19% No: 81%

Ans of Q11. Insurance:47% Finance:32%Accessories: 01% Any other: 20%

77

EXPECTED CHANGING STRATEGIES IN MARKET TREND &

CHANGES IN MSIL

Market Trend Changes in Business (MSIL)

a. Foreseeing the changes in the market five years down the line was a tough job in term of increasing competition.

b. We are gradually moving towards the customer oriented market, where customer very soon would be termed as “King of the Market”.

c. Customer will drive the market strategy.

d. Market would be fregmented on the basis of different segments for car buyers.

a. Maruti would keep customer as the prime focus.

b. There is a possibility that Maruti starts with the customization of cars i.e. make.

c. Redesigning of cars suit the market trend would be done ask when required.

Customer would like to have the cars with higher cost effectiveness. Money being a major consideration in current scenario and which is expected to rise furthermore cars need to higher in terms of full efficiency and lower interms of maintenance.

MUL would solve this problem by taking following steps:

a. Warranty for cars.

b. Buying back facilities.

c. Encourage and scale and purchase of old cars.

d. Easy financing and financing 0% interest or very low interest rates.

e. More tie-up with financial institutional & insurance agencies in the near futures.

Higher Technology and innovation in terms of style, looks and utility too would induce the customer to buy. The cars which have all these attributes.

MUL plans technology infusion in terms of quality and standards.

a. Plans to use 100% Indian parts to be used for production.

b. Diversification in production and adoption of new methods for

78

cutting costs.

Quality & better service – There would be higher quality standards and norms to be followed and comply with customer would then demand better service. The immense competition would not leave much distinction in terms of product attributes but only thing which would create distinction would be service.

a. International competitors would induce Maruti to insure more rigid standards of quality. The norms would demand more eco-friendly vehicles and customer would ask for more benefits. Therefore to keep themselves going in the market MUL would have to take up all these challenges in high spirit.

b. Increases in the number of service stations.

c. Produce cars with low maintenance cost would be the motto of the company.

Company who could build the brand in one market would sell more

MUL- Thus would adopt both rational as well as emotional appeal to sell their vehicle i.e. would produce better quality of car with assurance and also do one advertising on the emotional grounds to appeal the customers.

Competition – Players in the market. Not everybody would be the leader. Thus the leader would be the one who caters the customer needs at most competitive prices and satisfying one rules and norms laid by the systems.

Understood the definition of the leader and wants to be the leader in the automobile sector.

79

CONCLUSION :

Indian automobile is of Rs. 30,500 crore and its 86% share is captured by small

size car which are offered by Maruti Udyog Limited, Hyundai Motors, Telco and

till recently Daweoo.

Company should not comprise on technology of cars in make cheaper if a

company does so, it will find itself out of the game. Referee 'the car customer

will announce you not fit for the game.' Zen, Indica has to recently upgrade

engine in less than a year after the launch and Hyundai and start offering a new

variant with power stearing option barely a year after it hit the Indian roads.

Very few companies or better to say there is only one company in the Indian

market Fiat, Siena 'secure in Siena' using the safety or security as its USP. This

concern is hardly exploited in India and should be looked into.

Price of the product in not only factor which can make a company winner in

Indian passenger car market. A judicious mix of comfort, luxury, space, design,

looks and technology at a reasonable price. Should e made so as to offer value

for money concept to customers.

Maruti lost 82.2-52.3% market share from 1997 to 2000 owing to not upgrading

technology and features where as Hyundai, Matiz, Indica benefited heavily on it

to gain the lost of Maruti.

Proper segmentation has to be done according to the Indian/International

Markets. Eg. in Europe, Opel Astra and Mitsubishi Lancer would be classified

as 'small family cars' in India they have been clubbed along with Honda city as

80

top and premium cars in segment C, because they all fall in 8-10 lacs price

range.

Today, the Indian market and industry are confronting a change never

experience before. The market in getting re-segmented not only on price,

physical, technological and psychographic description but also on behavioral,

sociological and economic patterns influencing consumer thinking and attitude.

The buying behavior is changing dramatically and today's new evolving

customer is free from past experience and prejudices and is a lot more exposed

to free market philosophy, international products and global media. All these

customer changes must be kept in mind for achieving success.

Today, in India there are only 4 cars among 1000 people so there is a huge

market to exploit.

81

RECOMMENDATIONS FOR MARUTI :

From 1997 in 2000 one and half years every assumption MUL has made has

proved wrong. Every strategy have back fired on it and despite the fact it has

biggest range of products, the cheapest car in the market, in the largest marketing

and service network and better cost structures then anyone lese in India, it lost

market share from 82.2-52.3% market share from 1997 to 2000.

Maruti should show concistency in its pricing policy otherwise customers feel

cheated who purchased the car just before the price fall.

Upgrade the existing models time to time with innovative technology, interiors,

design and value added features and accessories.

It should expand its dealership and service network especially in eastern Indian

region.

According to Recent Sales Satisfaction survey MUL lies at the bottom of the

chart

Thus Maruti should train their technical staff to deal with customer who is in

the workshop to get their cars serviced/repaired No doubt it is hard to manage

and handle such a big network but the company has to handle it properly to

82

satisfy its customers. We should always remember that loyal and satisfied

customer give a chain of new customers.

Maruti is providing just 33% of the total industry and having the 50% of market

share but this is a quite impossible to job retain 50% of market share with just

33% production capacities so any how Maruti should try to increase its

production capacities to retain its market share in near future.

Maruti should launch the CNG variant of its models used for public transport.

It should improve the interiors of the cars. A survey should that 67% of the

people favoured this decision.

83

BIBLIOGRAPHY :

REFRENCE BOOKS:

- Principles of Marketing, by Philips Kotler

- International Business, by V.K. Bhalla.

AUTO JOURNALS:

- Economic Times

- Times of India

- Over Drive

- Auto India

- Business World

INTERNET:

- www.marutiudyog.com

- www.domain-com

- www.agencyfaqs.com

- www.google.com

84