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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 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 MercedesBenz is in the premium end of market. Car manufacturers like Malyasia based Proton are also in line to hit the Indian ramp.
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
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.
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 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 functioning communication network between labour and
• Dominance mainly in the entry level cars segment (Maruti 800) • 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
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
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
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.
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.
• A burgeoning workforce and growing middle class population necessitated
• 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:
• • • •
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
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
PRODUCTION AND SALES
Maruti has introduced the following models on last 16 years. Dec 83 Maruti 800 Omni Gypsy Maruti 800 (new) Maruti 1000 Zen Esteem Zen (automatic) Gypsy King Omni (E) Gypsy (E) New Maruti 800 1998 Esteem Zen (D) Maruti 800 (EX) Zen (LX) Zen Classic Zen VXI Omni XL Baleno Wagon R Alto Versa Nov 84 Dec 85 June 86 Oct 90 Oct 93 Nov 94 Oct 96 Nov 96 Dec 96 Dec 96 Sep 97 Oct 97 Aug 98 Jan 99 Jan 99 Aug 99 Oct 99 Oct 99 Nov 99 Jan 2000 Jan 2000 Nov 2001
Maruti Alto Economic Model Versa Variant Maruti Swift SX4 Grand Vitara Swift Dzire A Star Ritz Kizashi
2004 2005 Aprill 2007 May 2007 March 2008 Nov 2008 May 2009 Feb 2011
MARKETING MIX The 4P’s of Marketing Mix are : • Product • Price • Place • Promotion
Products : Maruti Offers A Range Of Different Products
MARUTI 800, Std (metallic & non-metallic) and (with ac & without ac) euroII. ALTO, Lx, Lxi, (spin version for Lxi), Vx, Vxi, (metallic & non-metallic) euro-II. BALENO, Sedan, altura (metallic & non-metallic) fully loaded euro-II. ESTEEM, Lx, Lxi, Ax, Vx, Vxi, D, Di, Velocity (metallic & non-metallic) euro-II. MARUTI GYPSY, Gypsy Soft Top & Hard Top 1.3 (metallic & non-metallic) euro-II. OMNI. Omni Cargo, Omni Amb. high roof, Omni Flat Roof 8 str, Omni Flat Roof 5 str (metallic & non-metallic) euro-II. VERSA, Dx, Dx 5s, Dx-2, Dx-2 5s. All euro-II models.
WAGON-R, Lx, Lxi, Ax, Vx, Vxi, (metallic & non-metallic) euro-II. 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.
SWIFT, Lxi, Vxi, Lds, Ldi, Vds, Vdi Best car of the year. Baleno, Lxi, Vxi SX4, Vxi, Zxi, Zxi(Leather) GRAND VITARA , Mt, At A Star Lxi, Vxi, Zxi SWIFT DZIRE Lxi, Vxi, Ldi, Vdi, Zxi, Zdi RITZ, Lxi, Vxi, Ldi, Zxi, Vdi, Vdi ABS KIZASHI, MT CVT
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 highend 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
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.
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
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.
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
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.
Procedure For Setting The Prices Of Maruti Products : 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 :
Ex-showroom Price (Rs.) 226000 228700 203300 205900
Maruti 800 Std with Non-Metallic AC Bh-II Maruti 800 Std with AC Bh-II Maruti 800 Std Bharat II Maruti 800 Std Bharat II Metallic Non-Metallic Metallic
ALTO : Variant Colour Type Non-Metallic Metallic Non-Metallic Metallic Non-Metallic Metallic Ex-showroom Price (Rs.) 265000 268600 365900 369500 284800 288400
AltoLX - Bharat II AltoLX - Bharat II Alto Spin VXiBharat II Alto Spin VXiBharat II Alto Spin LXi-Bharat II Alto Spin LXi-Bharat II
BALENO : Variant Colour Type Ex-showroom Price (Rs.) 655700 655700 703800 703800
Baleno Sedan - Bharat NonII Metallic Baleno Sedan - Bharat Metallic II Baleno Altura Bharat II Baleno Altura Bharat II NonMetallic Metallic
4. ESTEEM : Variant Colour Type Ex-showroom Price (Rs.) 604000 604000 539600 539600 499800 499800
EsteemAX -- Bharat Non-Metallic II EsteemAX -- Bharat II Esteem VXi -Bharat II Esteem VXi -Bharat II Metallic Non-Metallic Metallic
Esteem LXi -- Bharat Non-Metallic II Esteem LXi -- Bharat II Metallic
Esteem Di -- Bharat II Esteem Di -- Bharat II Esteem Velocity Bh II Esteem Velocity Bh II
Non-Metallic Metallic Non-Metallic Metallic
548100 548100 514800 514800 466600 466600 522500
Esteem LX -- Bharat Non-Metallic II Esteem LX -- Bharat II Metallic
Esteem D -- Bharat II Non-Metallic 5. MARUTI GYPSY : Variant Gypsy Hard Top 1.3 Bharat II Gypsy Hard Top 1.3 Bharat II Gypsy Soft Top 1.3 Bharat II Gypsy Soft Top 1.3 Bharat II Colour Type NonMetallic Metallic NonMetallic Metallic
Ex-showroom Price (Rs.) 472800 475700 453300 456200
6. MARUTI OMNI : Variant OMNI CARGO BHARAT II Colour Type NonMetallic Ex-showroom Price (Rs.) 220100
OMNI CARGO BHARAT II Omni Amb. high roof Bharat II Omni Amb. high roof Bharat II Omni Flat Roof 8 str Bharat II Omni Flat Roof 8 str Bharat II Omni Flat Roof 5 str Bharat II Omni Flat Roof 5 str Bharat II
Metallic NonMetallic Metallic NonMetallic Metallic NonMetallic Metallic
222800 257800 257800 222000 224800 220100 222800
7. MARUTI VERSA : Variant Colour Type Ex-showroom Price (Rs.) 400700 404300 400700 404300 438500 442100
Versa DX - 5s Bharat NonII Metallic Versa DX - 5s Bharat Metallic II Versa - DX Bharat II NonMetallic
Versa - DX Bharat II Metallic Versa DX2 - 5s Bharat II Versa DX2 - 5s NonMetallic Metallic
Bharat II Versa - DX2 Bharat II NonMetallic 438500 442100 490700 494300
Versa - DX2 Bharat II Metallic Versa - SDX Bharat II NonMetallic
Versa - SDX Bharat II Metallic
WAGNOR : Variant Colour Type Ex-showroom Price (Rs.) 452900 456500 325400 329000 376800 380400 376800 380400 352500
WagonR AX--Bharat Non-Metallic II WagonR AX--Bharat II Metallic
WagonR LX--Bharat Non-Metallic II WagonR LX--Bharat II Metallic
WagonR VXi--Bharat Non-Metallic II WagonR VXi--Bharat II Metallic
Wagon R VXi Bharat Non-Metallic II Wagon R VXi Bharat II Metallic
Wagon R LXi Bharat Non-Metallic II
Wagon R LXi Bharat II
VARIANT Estilo Lx Estilo Lx Estilo Lxi Estilo Lxi Estilo Lxi CNG Estilo Lxi CNG Estilo Vxi Estilo Vxi Estilo Vxi Abs Estilo Vxi Abs
Color Type (M) (M) (M) (M) (M)
Ex Showroom price 326,172 329,338 356,963 360,129 408,963 412,129 383,421 386,587 412,966 416,132
Model / Vehicle Swift Lxi Swift Vxi Swift Vxi Abs Million Edition Swift Zxi Swift Diesel Ldi Swift Diesel Vdi Swift Diesel Vdi (Abs)
Ex Showroom Price 407,341 460,984 475,831 485,189 536,227 492,163 528,662 547,277
Model / Vehicle Swift Dzire Lxi Swift Dzire Vxi Swift Dzire Zxi Swift Dzire Ldi Swift Dzire Vdi Swift Dzire Zdi
Ex - Showroom Price 491,558 543,227 635,770 578,722 627,630 710,874
Model / Vehicle SX4 Vxi SX4 Vxi CNG SX4 Zxi SX4 Zxi (Leather) SX4 At SX4 At (Leather) SX4 Vdi
Ex Showroom Type Price 697,007 754,006 772,174 806,263 838,271 872,360 774,000
SX4 Zdi SX4 Zdi (Leather)
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.
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
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.
Producer Producer Dealer Dealer Customer Customer
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 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 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 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.
Finally all the methods used are integrated in a cohesive,
consistent, logical manner to meet the needs of the target audience.
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 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. promotion in three basic ways:
MUL does its sale
Consumer sales promotion: MUL promotion is usually a short term incentive that urgently trumpets the message to the consumer ‘buy now rather than later 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.
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.
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.
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.
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.
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 minimetros, 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. 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. 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'. 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. 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.
Marketing & Sales In Maruti : The M&S Division is headed by Mr. J. Sugimori, Director (Marketing). It comprises of the following departments.
Marketing & Sales Marketing & Sales
Sales Planning Department Sales Planning Department
Marketing Planning Marketing Planning Department Department
Dealer Development Dealer Development
Marketing Department Marketing Department
Regional Office Regional Office
Sales & Dispatch Department Sales & Dispatch Department
Export ––11& 22Department Export & 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 upgradation.
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).
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.
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)
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
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
Maruti 800 : Feature No of Valves Maruti 800 4-valves Deawoo Hyundai Fiat Uno Matiz Santro Tata Indica Maruti Advantage Lower emissions, superior performance
2-valves 3-valves 2-valves 2-valves
Precise running of Electroni 16-bit 8-bit 8-bit Not 16-bit engine in all c Control computer computer computer Known computer conditions- i.e., faster Module response Tried & Trusted Design New Design Copy from New Old Shape Suzuki Design Shape Economically priced spares Easy repairable through Maruti network across India.
Price Esteem :
Economic Expensiv Expensiv al entry Expensive Expensive Affordability for all e e level price Hyundai Accent 92 (94bhp, 1023kg) 3 Maruti Advantage
Feature Power-toweight Ratio(bhpx10 00/kg) No. of valves/cylind er Electronic Control Module Total Cost of Ownership(R s./km)* Fuel Efficiency**( kmpl)
Esteem 99 (85bhp, 860kg) 4
Ford Ikon 70 (69 bhp, 978kg) 2
79 Faster pick-up. (85bhp, 1065 Better kg) acceleration 2 Extra power and superior fuel efficiency Faster engine response Easy on your purse. Best value for Money Best fuel economy among Petrol
Not Known NA
sedans Source: Published literature & brochures. *Autocar India December 2002(Owner reported cost of ownership) **Autocar India November 2002. (Owner reported fuel mileage)
Maruti Zen :
Maruti Deawoo Hyundai Fiat Zen Matiz Santro Uno
Performanc 993 cc e
Best engine design means greater efficiency from optimum size. Smaller 999 cc 1242 cc 1405 cc engine means more wear and tear, larger means greater fuel consumption
No of valves
4-valve per cylinder configuration allows for more efficient 16-valve 6-valve 12-valve 8-valve 8-valve burning of fuel, better engine response and lower emissions. Best power in relation to weight means 55 bhp 60 bhp 75 bhp nimble movement and for 776 for 840 for 980 fantastic power kgs. kgs. kgs. delivery combined to excellent fuel consumption
Power to 60 bhp 52 bhp weight for 755 for 800 ratio kgs. kgs.
Electronic 16-bit Precise running of 8-bit 8-bit Not Control compute 16-bit engine in all conditions computer computer known Module r - i.e. faster response
Electric Power Steering Steering on Vxi
Latest in technology, Ordinary Ordinary Ordinar Ordinar unmatched road feel Power Power y Powery Power and feedback and Steering steering steering steering fewer moving parts = on SP more reliability
Kenwoo Daewoo Not Not Factory fitted stereo for d Stereo Not Stereo in availabl availabl miles of musical in Vxi, available SE, SP e e pleasure D
Electric Window Not Not Convenience feature Electric OneNot Not availabl availabl for toll booths, fast Window Touch available available e e food joints etc. for driver
Baleno Sedan : Hyundai Ford Hyundai Corsa City Accent Ikon Accent 1.6 1.3 DX GLS 1.6 NXT Viva GSi
The Baleno Advantage Power at your command . Better breathing characteristics, less stress on engine and hence better engine life.
Engine 1590 cc 1495 cc 1343 cc 1597 cc 1599 cc 1598 cc Capacity
Number of valves
Highest torque in its class; Quick Maximu acceleration; m Minimum gear 132@30 125@35 111@47 130@25 144@44 126@32 Torque changesdue to 00 00 00 00 99 00 (Nm/rp flat torque m) curve; Reserve power and better driveability. Maximu Excellent Power m Power 94@600 94@550 90@640 91@550 102.6@5 92@560 to Weight Ratio Output 0 0 0 0 799 0 for maximum (bhp/rp fuel efficiency m) Better handling and silksmooth ride on Suspensi McPhers McPhers McPhers McPhers McPhers McPhers all surfaces. on on on on on on on Minimised road Front strut strut strut strut strut strut noise and vibration in passenger cabin Suspensi McPhers Dual link Trapezoi Heavy Dual link Crank Better handling on on dal duty Compou and silk-
twist beam system
smooth ride on all surfaces. nd Minimised road Suspensi noise and on vibration in passenger cabin Present Kenwood Present System with Remote Control
Elect. controlle d rear Present view mirror Front Seat Present Height Adjuster Power Present Antenna Keyless entry with Present security Alarm Rear Present Spoiler Alloy Present wheels Alto :
Better Driving Comfort
Not present Not present Not present Not present Not present
Not present Not present Not present Not present Not present
Comfortable Driving Position
Top tilt Convinience of antenna Operation Not present Not present Not present Unparalled security for your car
Not present Not present Not present
Not present Present
ENGINE PERFORMANCE Feature Point Ignition Alto Vxi (Spin) Santro Zip Plus Indica LSi Palio 1.2 The Alto Advantage
Dual Distributor- Not Distributor Two ignition coils distributor- less ignition availabl based result in faster start
less digital ignition (DDLI) (Single e (Two Ignition Coil) Ignition Coils) Onboard Engine Check Electronic Control Available Not available
and efficient ignition as compared to single coil.
Not Not availabl available e
Greater convenience, faster repair and low maintenance cost. Faster, precise and accurate engine response adding to overall performance. Speed Sensitive for greater control on fast drives and low maintanence cost. Comfortable city driving eliminating need to change gears frequently. Faster pick up Exhilarating performance. Better breathing characteristics with more number of valves. This reduces load on the engine and increases their life. Better fuel management, lower emission, better engine performance and more available power. Better breathing
16 bit 16 bit 32 bit 8 bit computer compute computer computer r Electronic Hydraulic Power Power Steering Steering Hydraul Hydraulic ic Power Power Steering Steering
Flat torque curve
Flat torque Irregular curve torque curve
Irregula Irregular r torque torque curve curve
1C4V Technolog Available y
Not Not Not available availabl available e
Total no. of valves
characteristics. Max. speed*(k m/hr) Power to weight ratio (bhp/tonne ) Engine displacem ent Turning Radius(m) 148 153 154 Thrilling drive.
More available power per tonne of load. Better pickup, faster acceleration. Optimum engine displacement leading to longer life. Better manoeuvrability and ease of parking.
INNOVATIVE FEATURES Feature Point Alto Vxi (Spin) Santro Indica Zip Palio 1.2 The Alto Advantage LSi Plus Not Not Not availabl availabl Reminder if key is left in the available e e ignition switch. More user-friendly. Is very Not Not useful during foggy and rainy Not availabl availabl conditions when we switch available e e lights on during daytime and tend to forget switching them off. Improves driving efficiency Not Not by changing gears at the right Not availabl availabl RPM. Also, one can check the available e e rpm during idling and find out whether the engine is properly tuned or not.
'Key not removed' reminder Available chime
'Lights on' Available reminder
Electronic Available Tachomet er
Electronic Odometer Available and Multitrip meter
Not Allows two people to log in Not Not availabl distances covered availabl available e simultaneously. Since, it is e digital, it is tamper-free. *Autocar India issue 2002
Wagon R : Unmatched Performance Wagon R 64 bhp low friction engine 16 valves (4 valves per cylinder) Santro 63 ps engine WagonR Advantage Superior engine, better fuel efficiency, more power lower emission
12 valves (3 valves per Superior engine, better fuel efficiency, cylinder) more power lower emission Faster acceleration, better pick up More intelligent & faster engine response Low maintenance costs, faster repairs
Power to weight ratio = 77.6 Power to weight ratio = bhp/tonne 73.8 bhp per tonne 16 bit computer On board engine check 8 bit computer No on board engine check
Electronic Power Steering Ordinary Power Steering Lesser load on engine, more steering control at higher speeds Fuel Efficiency = 13.7 km/l Fuel efficiency = 13.3 (Owner reported mileage in km/l NFO survey) Wagon R Fully flat reclining front seat and reclining rear seat Electronic power steering (EPS) Santro Not present Better fuel economy
Unmatched Space and Comfort WagonR Advantage Airline seating comfort
Flexible seating and more space for luggage
Total boot space: 312 litres Total boot space: NA
Maximum boot space
Maruti Gypsy King MPFI : Feature Maruti Mahin Gypsy Comma Tata dra Marshal King nder Sumo 550 DP MPFI 80 bhp @6000 rpm The gypsy King Advantage
62 bhp 62 bhp Most powerful 55 bhp @ 68 bhp @4500 @4500 four wheel drive 3000 @ 4500 rpm rpm in the country. Easier drivability on 1355 1370 kg 1670 kg 1700 kg muddy ground kg Soft top (Soft top) and in sandy areas Faster acceleration. Engine can survive in extreme climatic conditions Better off-road handling Quick response in emergency or heavy traffic situation Better maneuverability.
Power to weight Soft top ratio(bhp/ton 81.22 ne) Ground 210 mm Clearance Turning Radius
200 mm 200 mm
6.34 m 6.6 m
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 a. Maruti, in orders cope this competition the market due to globalization and came up new models and also changes in many new players. The focus had the old ones. started getting to customer. b. The cars are now enhanced with more Because now, customer was getting accessories and variety of colours. better or so to say more variety c. Maruti started its customer oriented interms of cars. 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 a. MUL in this course of time launched the availability of choice to him new models well within one reach of thus he now asked value for every common man. Maruti makes the cars to Penny is spent. 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. 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
Dawoo one such competitor for one they are always on the move for new and first time in India came up with better technology. Multi point fuel injection (MPFI) a. Inception of new technology & very which would be more fuel-efficient soon MUL too adopted MPFI for one and saver too. 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 Changes incorporated by MUL – Following need for quality order to sustain the the customer-oriented approach. market share and provide better a. MUL now focused itself by providing service to the customer. 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.
SURVEY CONDUCTED AT MARUTI SUZUKI INDIA LTD
SURVEY NO. 1 PRODUCT PARAMETERS AFFECTING CONSUMERS PURCHASE DECISION SURVEY NO. 2 ONLINE BUYING CAPACITY OF CONSUMER
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 Price Brand Safety Service Design Resale value 38.4% 36.0% 20.7% 19.3% 10.5% 8.4% 40%
Figures add up more than 100% because of the multiple responses.
2. Most important purchase drives for India's first time buyer: Mileage Price Brand Safety Service Resale value Design Resale value 36.2% 36.2% 20.2% 19.1% 7.6% 5.3% 4.3% 40%
3. Importance of price in determining the brand of car to be bought
50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Very Imp. Quite Imp.
Nearly two-thirds of the respondents do not rate the price as over-whelmingly important. So, the pricewarriors may be chasing the wrong USP even in the small cars market
4. Importance of price to customers in different income-groups
60.00% 50.00% 40.00% 30.00% 70.00%
45.20% 22.10% 63.10% 13.20%
Rs 1 lakh
Rs 1-2 lakh
Rs. 2-3 lakh
Above 3 lakh
The price matters the more to user car buyer while upgrade’s are far less price conscious. This doesn't help 0.00% the price-competitors either. First time (New ) First time (Used) Replacement Upgrader
Categories of buyer
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.
Competing on basis of prices in small car market is a dangerous, unsustainable strategy
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.
QUESTIONNAIRE Name ……………………………………………. 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? ……………………………………………………………………… ………………………………………………………………............
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
C fé a
H e om
O ffices 0 10 20 30 40 50
Ans of Q3.
Email: 53% Net banking: 14%
Information: 30% Transaction: 03%
Transaction Net Banking Inform ation 0 5 1 0 1 5 2 0 2 5 3 0
Ans of Q4. Yes: 78%
yes 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0
Ans of Q5. Less than 50000: 67%
more than 50000: 33%
< 0,0 5 00
> 0,0 5 00
Ans of Q6. Yes: 23%
Ans of Q7. Discount coupons: 07% Books:11%
Gad ets g Bo oks S ervices Disc cou o s pn 0 1 0 20 3 0
Services: 35% Gadgets: 47%
Ans of Q8. Below 50,000:100%
Above 50,000: 00%
> 50,000 0 20 40 60 80 100
Ans of Q9. Maruti: 58% Honda: 05
Others H onda H yunda i Ma ruti
0 10 20 30 40
Hyundai: 24% Others: 13%
Ans of Q10. Yes: 19%
Ans of Q11. Insurance:47% Accessories: 01%
Finance:32% Any other: 20%
AnyOther Acces sories F nc ina e Insura e nc 0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5 5 0
EXPECTED CHANGING STRATEGIES IN MARKET TREND & CHANGES IN MSIL
Changes in Business (MSIL) Maruti would keep customer as the prime focus. There is a possibility that Maruti starts with the customization of cars i.e. make. Redesigning of cars suit the market trend would be done ask when required.
a. Foreseeing the changes in the a. market five years down the line was a tough job in term of b. increasing competition. b. We are gradually moving towards the customer oriented market, c. 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. 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 MUL plans technology infusion in terms of style, looks and utility too terms of quality and standards. would induce the customer to buy. a. Plans to use 100% Indian parts to The cars which have all these be used for production. attributes. b. Diversification in production and adoption of new methods for cutting costs. Quality & better service – There a. 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. 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 MUL- Thus would adopt both rational in one market would sell more 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. Understood the definition of the leader Not everybody would be the leader. and wants to be the leader in the Thus the leader would be the one who automobile sector. caters the customer needs at most competitive prices and satisfying one rules and norms laid by the systems.
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
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.
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
Indian Sales Satisfaction Index (SSI)
115 110 114 114 110 109 105
HM/Mitsubishi Honda Siel Ford India M&M Dawood Motors Hyundai MUL
SSI Scores 105 100 95 Companies
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
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.
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
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