PRESENTED BY – Section C - Group 5

• Aseem Shandilya (1301-

036)

• Sankalp Saxena (1301-

192)

• M Nikhil Teja (1301-

360)

• Prateek Chaturvedi (1301-

550)

• Mahashweta Chaudhri (1301-

111)

• Venkatesh L (1301-433)

Company – Maruti Suzuki India Ltd.Brand – Alto

Product – Alto 800Variants – LX, LXi, VXi

Brand - Alto

Alto 800

StdLX

LxiVxi

Alto K10

Lxi VXi

*Positioning Project

Demographic   Psycho-graphic   Benefits Sought   Behavioral

Age(years)  

Annual Individual Income('000 INR)

 Annual FamilyIncome('000 INR)

  Location   Family Life Cycle  No. of Family Members

  Occupation Lifestyle   Needs/ Motivation  

Occasion/ Event   Buying 

Stage   Usage    Loyalty Status   Product 

Knowledge  Involvement 

Level

18-24   Nil   0-200 Metro/Non-Metro Unmarried 2 Student 

(UG/PG) Family   Price   Marriage Gathering Information Occasional Loyal None Low

24-30   0-100   200-300 Urban/ Semi-Urban/ Rural

Recently Married 3 Service Class Social  

Running Cost/ Mileage   Anniversary Ready to buy Regular Occasional 

Switcher Little Medium

30-35   100-200   300-500 Hilly/ Plains Married + Young Kids 4 Farmers Sporty   Brand   Festival Heavy Regular 

Switcher Strong High

35-40   200-300   500-750 5 Artisans/ Craftsmen Travel  

Features/ Style   Achievement

40-50   300-400   750-1,000 6Self-

employed (start-ups)

Education  Exteriors/ Interiors  

Year end discounts

50-58   400-500   1,000-1,500 More than 6 Shopkeepers  Performance/ 

Speed   Harvest time

over 58   500-750   over 1,500   Technology  

  750-1,000     Spaciousness  

  over 1,000    Availability of Service/ Spares

 

About the Product – Alto 800

• People’s Car• Launched in October 2012• 137,406 units sold (till Aug

2013)• Manufactured in 60 variants• Best in class mileage• Low cost of ownership

*Market Segmentation

*Target SegmentsParameter Description Target Segment Characteristics of Segment

Demographic

Age

18-24 Learning to driveFirst time buyers

Upgrading from 2-wheelers to 4-wheelers Working individuals 

Need is governed by impulseView car as social symbol24-30

Annual Individual Income (INR) 500,000 - 750,000

2-4 years work experienceBuy on loan/ credit (3-5 years)Don't change frequently

First timers or driving 2nd Hand vehicleAnnual Family Income (INR) 750,000 -1,000,000

Family Lifecycle

Unmarried Staying with parents/ or on rent with friends

Recently Married Both husband & wife earningNo or at most one child

Occupation

Students Use for socializing activitiesDependent on parents for finances

Artisans/ Craftsmen Have ready cashNo immediate need for ownership of car

Niche  BuyersShopkeepers

Parameter Description Target Segment Charateristics of Segment

Psychographic LifestyleSportySocialFamily

Changing over from 2-wheelersUse for shopping and traveling

Benefits Sought

Price Low PriceRising inflation leading to a demand 

for lower pricesCustomers want more features at lesser price

Running Cost/ Mileage High Mileage Rising price of petrol has led to a demand for 

better mileage/ efficiency

Service & Spares

Low Cost and Easily available

Need for nearby & easily accessible service stations

Cheap spares and low cost of repairsCan be repaired by local mechanics

Features Better in-car experienceNeed for AC, Power Windows, Power Steering

Music System & NavigationBody accessories

Behavioral

OccasionMarriage

Festivals (Navratras,Diwali)Year End discounts

Car as a gift in marriageAuspicious occasion & perception of society

Heavy discounts at year end 

Usage OccasionalRegular

Need for less ownership & monthly running costNeed for ownership governed by comfort & ease 

of travelSwitch over from use of Public transport

*Competitor Analysis

Maruti Hyundai Tata Motors

M&M Toyota GM Ford Honda VW

 11-12

1006316

388779 370834 245765 160203 110048 92665 54427 78281

 12-13

1051046

383611 308711 309911 165504 88150 77225 73484 65467

% Change

0.0444492584834186

-0.0132928990506175

-0.167522395465357

0.261005432018392

0.033089267991236

-0.1989858970631

-0.16662170182917

0.35013871791574

-0.163692339137211

100,000

300,000

500,000

700,000

900,000

1,100,000

Un

its

sold

Passenger vehicle segment : 2,657,853 units sold, 2% over last yearCompetition grows 0.5% Maruti Suzuki grows 4.4%

Maruti Suzuki Alto 800

Hyundai Eon Chevrolet Spark Tata Nano

Student 3601.78863844559 3881.73808712099 4550.2596465696 3224.59345032491

Govt. Job 3703.79443989976 3991.67230157917 4679.12697574003 3315.91675446144

Self-Em-ployed (S-tarter)

4544.37299370285 4897.58492307122 5741.05788204459 4068.46621562215

Private Job 3805.73418327605 4101.53532358756 4807.91085153874 3407.18091841328

500

1500

2500

3500

4500

5500

Monthly Running Cost(All figures in INR)

Mon

thly

Run

ning

Cos

t

Sales Comparison

• Alto sales are 30% of Total sales by Maruti Suzuki which almost equals the total sales by closest rival Hyundai

• Out of 308,000 Alto sold, 30% were sold in Rural Areas

Source – MSIL Annual Report 2012

Budget

Generic

Nano, Santro,

Eon, Spark,

Alto K10

Product Form

Product Category

Jazz

Wagon REstillo

Brio

Fabia

i10, i20

Figo

Liva

A-star

Swift, Ritz

Beat

City, Accord

Verna, Accent

Dzire, SX4

Ertiga

Vento

Optra

Xylo, XUV,

DusterScooters

Bikes

Pre-owned Cars

Non-geared

Scooters

Public Tpt

Taxis

Furniture

Foreign Trip

House Renovati

on

Higher Educatio

n

Consumer

Durables

GoldJewelry

Branded Apparel

Investment

*Levels of Competitio

n

Product Manufactured in 60 variants

Petrol and CNG versionsFresh and Spacious interiors

Wave front designEasy drive and handling

PriceOffers good value for money

Best in-class mileageEasy EMI optionsFestival discounts

Exchange Offers (TrueValue)Loyalty bonus

PlaceRegional marketing – Niche segments (7% of

sales)2971 service stations across 1425 cities

Standardized spares – MGP

Promotion“Kitna Deti Hai” campaign to emphasize

mileageTagline “Let’s go-Khisko” & TVCs to highlight

the youthful design

Marketing Mix

*Positioning: Company & Brand

* The aim of the “Kitna Deti Hai” series of advertisements –

The customer should always associate the word “good mileage” with Maruti Suzuki

* The advertisement which says “Let’s go”, effectively communicates the youthful and contemporary positioning

* The advertisement again highlights the mileage provided by the Alto. 22.7 Kmpl

* This is another attempt to position the brand as a mileage car

* Launching of the car’s CNG variant affirms low running cost & environment friendliness

*Positioning: Product Variant

* This advertisement highlights exteriors/ interiors

* Appeals more to youth who are more interested in this

aspect of the product

* Also “popularity” and “sales no.s” are mentioned

generate confidence in product

Alto 800

Hyundai Santro

Chevrelot Spark

Tata Nano

Hyundai Eon

Second Hand Cars

Perceptual Map of the Entry-level Hatchback Car Market in India

Func

tion

al

Low Value for Money

High Value for Money

Styl

ish

* This perceptual map has been generated using the responses of potential customers that visited the Dealers (Regent Automobiles & DD Motors)

* The customers perceive Alto 800 as –

* High Value for Money product

* Almost mid-way between Style & Functionality

* This perception resonates with the marketing strategy of the company of portraying the product as a high mileage & efficient car with stylish features

* The nearest competitor Eon (by sales) scores more on style but is lower on the value for money mainly due to its higher price (24% more) and lower mileage (7% less)

* Tata Nano the cheapest car scores slightly lower on value for money owing to inferior quality, lesser features and smaller engine capacity.

* However, it scores more than Alto in terms of functionality due to higher mileage (12% more) but is significantly lower in terms of Style

*Potential for Future Growth* Only 27% of Alto Car buyers are less than 29 years of age Huge potential for marketing

* Target distribution network to cover 100,000 Villages by 2014 (55% increase over 2012) Total no. of villages in India is 650,000 Current Alto Sales are just tip of the Iceberg ! (Source - http://www.business-standard.com/article/markets/maruti-suzuki-demand-revival-hinges-on-festival-sales-rural-volumes-113092600065_1.html)

* New strategy to target cash rich niche buyer from diverse vocations (e.g. Orchard owners in Nagpur, turmeric cultivators and granite stone traders in Tamil Nadu, blue pottery makers from Jaipur and fisheries’ owners in West Bengal)

* Increased R&D budget on Diesel and Electric Variants considering the soaring Petrol Prices

*Thank you !