Sub – Marketing Strategy.

Submitted to – Prof. Vikram

Parekh.
Date – 21/ 09/ 2009
• Mohd. Asad Khan.
• Bhaskar Shukla.
• Tushar Kamble.
• Kanchan Sahare.
• Sachin Surve.
VISION
1984 :- Fuel efficient Vehicle with latest
technology.

1987 :- Leader in Domestic Market and Be

among
Global Players in Overseas Market.

1997 – Till Date :- The leader in Automobile

industry,
Creating Customers delight
and
Shareholders wealth, ‘a
 ABOUT MARUTI SUZUKI

Subsidiary of Suzuki Motor Corporation of Japan

India's largest passenger car company

 25 Years of trust

Over 7720 employees in 4 plants

INDIAN AUTOMOBILE INDUSTRY
(2007-08)
CURRENT STRATEGIES BY MARUTI

 Pricing strategy - catering to all segments

 Offering one stop shop to customers

 Repositioning of Maruti products

 Customer Centric Approach

 Committed to motorizing India

 Realisation of importance of vehicle

maintenance services market

 Playing on cost leadership

COMPETITOR ANALYSIS

 HYUNDAI
2. Positioning of Hyundai Santro
- Family Car to Smart Car for young People
- Complete Family Car to Sunshine car.

2. Hyundai’s Pricing Strategy

- Markdown of Prices on Santro Xing
- Non AC Santro at 2.79 Lacs
 TATA MOTORS

3. Positioning Of Tata Indica

- Indica is positioned as ‘more car per car’

6. Tata’s Pricing Strategy

- Indica is priced between Rs 2.56 Lacs to 3.88 Lacs
CURRENT THREATS

 Perception Change

 Growing Competition In Compact Cars

 Few Maruti models may face extinction

RULE OF 3
 Maruti Suzuki is Specialist. As it plays only in
Passenger and Commercial cars and related
Subsidiaries.

 Maruti Insurance (2002)

 Maruti Finance (2002, 166 cities)

 Authorized Service Stations.

 Maruti True Value

 Maruti Driving Schools (Delhi and Panjab)

COMPETITIVE POSITIONS
 Market leader (54%. 2008-09)

Expanding the total market.

Defending the market share.

Expanding market share.

PORTER’S FIVE FORCES
BASIS OF SEGMENTATION

Geographic

Region, City or Metro

Size, Density, Climate
Demographic

Age, Gender, Family size

and Fife cycle, Race,
Occupation, or Income ...

Psychographic

Lifestyle or Personality
TARGETING :- SELECTIVE
SPECIALIZATION
Market
Urban Semi – Rural
Product Urban

A1 Yes Yes

A2 Yes Yes Yes

A3 Yes Yes

SUV Yes

C- Class Yes Yes Yes

TARGETING :- ON THE BASIS OF
INCOME GROUP
Income Group
RS. 2- 3 lacs. RS. 3-5 lacs. RS. 5 - > 5
Product /annum /annum lacs. /annum

A1 Yes

A2 Yes Yes

A3 Yes

SUV Yes

C- Class Yes Yes Yes

 POSITIONING
Product Target Benefits Value Proposition
Customers
A1 A consumer who Durability and A car which gives
wants car. Performance Durability in low
cost.
A2 A consumer who Spaciousness . A spacious small car
wants Small & without extra cost.
spacious car.
A3 A consumer who Design, Style and A car design with
wants more Luxury. style and luxury.
comfort car
SUV Lifestyle Oriented Rigidness, A Vehicle that
consumers. Luxury and provides the luxury
Comfort . and Comfort of a
C-Class A consumer who More spacious car.
A big car with
wants car for car. reasonable price
commercial use
BCG MATRIX
Relative market share
= Business unit sales this year

Leading rival's sales this

year

Market growth rate

= Individual sales - Individual sales
current year pervious year
Individual sales pervious year
GENERIC STRATEGIES

• Overall cost leadership

• Low-cost-position relative to a firm’s peers
• Manage relationships throughout the entire value chain

• Differentiation
• Create products and/or services that are unique and valued
• Non-price attributes for which customers will pay a premium

• Focus strategy
• Narrow product lines, buyer segments, or targeted geographic markets
• Attain advantages either through differentiation or cost leadership
GENERIC STRATEGIES

Lower Cost Differentiation

S Industry wide Cost Leadership Differentiation

c
o
p Cost Focus Differentiation
Particular Focus
e Segment

Competitive Advantage
AN OFF'S MATRIX
Existing Product New Product
Market Penetration
• Distribution Product Development
•Expansion of •New product –
Existing
manufacturing Splash
Market facilities

Market Development Diversification

New •Exports
Marke
t
4PS

 Product
 Price

 Place

 Promotion
EXISTING PRODUCT STRATEGY
 Portfolio of 12 products
 Five product lines

Product Line Products

A1 800

A2 Alto, Zen ,Wagon –R, Swift, A-star

A3 D ZiRE, Sx4

SUV Vitara, Gypsy

C - Class Omani, Versa

 Core Product, Formal Product, Augmented Product &

Future Product
 PRODUCT STRATEGY

Guarantees & After sales

warranties services
Delivery
points &
Replaceme Attributes
Core nt or
Styling systems
Formal
Product returns Colour
Product
policy
Instructions Core Installation
Manual Product (for bulky
products)
Payment Brand
options Name
(for high Quality
Packaging C
priced ed ust
prod- a uc om Augmented
Tr nd ati er
Customer ai on
cts)
complaint
ni
ng Product
management

Future Product
SUGGESTED PRODUCT STRATEGY
 More fuel efficient cars.
 AlterNet fuel cars.

 Eco friendly cars.

 More focus on A1, A2 & A3.

MORE FOCUS ON A1, A2 & A3.
EXISTING PRICE STRATEGY

 Pricing Objective :- Market share &

Cost Leadership

 Pricing Method :- Markup Pricing (cost plus pricing )

 Pricing strategy :- Economical Pricing

SUGGESTED PRICE STRATEGY

 Continue Economic pricing strategy as it will

help to achieve goal of become cost leader.

 Expansion of manufacturing facility to

achieve economies of scale.
EXISTING PLACE STRATEGY
 600 New car sales outlets covering 393
cities.

 265 ‘Maruti True Value’ outlets spread across

166 cities.

 2628 Maruti Authorized Service Stations,

covering 1220 cities.

 Tie up with Adani group for exporting

200,000 units through Mnudra port Gujarat
SUGGESTED PLACE STRATEGY
 400 new car sales outlets in next three years.

 150 new true value shops in next three years.

 1200 new Maruti Authorized Service Stations in

next three years.

 Tie up with other distributors for Exports.

EXISTING PROMOTION STRATEGY
o Advertising
o TV Ads
o Print Ads
o Radio Ads

o Advertising Strategy
 Persuasion Advertising
“Ghar Aa Gaya Hindustan”
“India Comes Home in Maruti Suzuki.”

 Information Advertising
CONT………….
 Alternative Advertising Options
 BTL - Sponsorships
 TV shows - India’s Got talent

 Place Advertising – Bill boards

 Sales Promotions
 Product warranties
 Premiums (gifts)
 Trade shows
 2,628The number of workshops that provide

customers with maintenance support in 1220

cities.
SUGGESTED PROMOTION STRATEGY
 Continue with existing Advertising strategy.

 Look for Alternative Advertising Options.

 BTL