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INTRODUCTION

Industry Profile

The first motor car on the streets of India was seen in 1898. Mumbai had its first
taxicabs in the early 1900. Then for the next fifty years, cars were imported to
satisfy domestic demand. Between 1910 and 20's the automobile industry made a
humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai.
The import/assembly of vehicles grew consistently after the 1920's, crossing the
30,000 mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the
distinction of manufacturing the first car in the country by assembling 'Dodge
DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which
started as a manufacturer of auto components graduated to manufacture cars in
1949.

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


regulations to develop an indigenous automobile industry in the country. After the
commission submitted its recommendations, the GOI asked assembly plants, which
did not have plans to set up manufacturing facilities, to shut operations. As a result
General Motors, Ford and other assemblers closed operations in the country. The
year was 1954 and this decision of the government marked a turning point in the
history of the Indian car industry. The GOI also had a say in what type of vehicle
each manufacturer should make. Therefore, each product was safely cocooned in
its own segment with no fears of any impending competition. Also, no new entrant
was allowed even though they had plans of a full-fledged manufacturing program.
The restrictive set of policies was chiefly aimed at building an indigenous auto
industry. However, the restrictions on foreign collaborations led to limitations on
import of technology through technical agreements.

The other control imposed on carmakers related to production capacity and


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

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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 Mercedes-
Benz is in the premium end of market. Car manufacturers like Malyasia based Proton
are also in line to hit the Indian ramp.

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RESEARCH METHODOLOGY

Sampling Design

Survey: A survey is a fact finding study of analysis in scientific and orderly form
for defined purpose of a given situation or a problem when a study is undertaken
due to consideration of time and cost almost invariably lead to a selection of
respondent i.e. selection of only a few items. The selected respondents constitute
what is technically called a ‘sample’ and the selection process is called ‘sampling
technique’ the survey so conducted is known as ‘sample survey’.

Steps in Sampling Design

1. Universe

The MUL, Gurgaon is selected for the study because it is a well established
organization with a total number of employees.

2. Source List

A list which contains the name of all the employees at this level in true
department’s are prepared.

3. Sample Size

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


marketing, 16 in HR, due to shortage of time instead of contacting each and every
worker a representative sample of 20 from production and 20 from marketing at
random.

4. Sampling Procedure

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


managers working in these two department is prepared. All the names are written
on chits and at random 50 chits are being selected. The names of the workers,
which have been shown on the chits, have been selected as units of sample. In this
way sample of 40 workers has been drawn. This random sampling technique

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ensures the law of statistical regularity, which states that if on an average the
sample will have the same compositions, characteristics as the universe.

Methods of Data Collection

The data required for the survey is made available from various sources such as:
• Primary Source is the data which is collected first hand. This has been
collected through direct communication with consumers.
• Secondary Source is the data which is already available. This is collected
through printed material files and annual reports of the company.
Processing Analysis of Data
After data collection, next stage is analysis of data, it is used to transform the mass
data into some significant understandable form. The following steps are taken for
the processing of data.
• Editing: It is a process of examining the collected raw data to detect errors and
commissions and to correct these when possible. Careful scrutinizing of the
complete quest is movies.
• Classification: The data arranged in groups or classes on the basis by common
character is this are place in one class and in this way the entire data get.
• Tabulation: The data after classification is tabulated for easy reference and
study.
Graphical representation: Pictorial and graphical representation where ever
necessary was also undertaken. Bar graphs, line graphs, pi-charts are extensively
used in this thesis to make it more reader friendly.

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SWOT ANALYSIS OF
MARUTI UDYOG LIMITED.
Strengths :

• Strong brand equity.

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

• A strong vendor base.

• Extensive network of showrooms, dealer workshops and authorised service


stations.

• Collaboration with Suzuki, know for their technological superiority bringing


together performance, economy, durability and comfort.

• Strong financial positions

• Highly motivated and satisfied team of employees

• Smoothly functioning communication network between labour and


management

• Flat organisational structure to facilitate quicker decision making

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

• Govt. support

• Strong international presence with sales in over 100 countries worldwide

• Economies of scale due to optimum capacity utilization

• High indigenisation content giving MUL cost leadership

Weakness :

• Lack of in house R&D to develop new models of cars, with new models being
restricted to cosmetic changes and price cuts.

• Not many models to compete the new entrants

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• 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

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OBJECTIVE OF STUDY

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

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

• To study selling concept of MSIL.

• To find the market share of MSIL and its competitors.

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

• To study various marketing strategies of MSIL

• To study the buying behavior of consumers

• To find online buying behavior

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LIMITATIONS :

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

• Most of the information gathered was from secondary sources and any
limitations related to such sources will persist.

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

• Random Sampling techniques are used for arriving at inferences for the
whole Delhi region. And any sample is insufficient and doesn’t give the true
picture.

• Although efforts were made to explore magazines and newspapers for


unbiased view on MLU still most of the material used for making this report
was collected from company journals, website, sales guides, etc.. and hence
could be biased to some degree.

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


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

Limitations relating to Maruti Udyog Ltd. project that came forth during my
association with the company :

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

restricted to cosmetic changes and price cuts.

• Not many models to compete the new market entrants

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

• Delivery System

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COMPANY PROFILE

Maruti is India's foremost automobile company has over the years created history
with its collaborator, Suzuki of Japan.

Maruti is the market leader in all segments of the passenger car market. Maruti
over the years has been able to build the following strengths: large production
volumes, a well developed vendor base, large sales and after sales network and
a large population of cars on the roads (over half the total cars in India belong
to maruti) are tangible strengths for all to see. Maruti is the leader in terms of
providing the customer a low cost fuel-efficient vehicles. As a corollary we are
the lowest cost manufacturers in India. In a price sensitive market like India
specially for big-ticker items for the aspiring middle class, very few companies
can think of matching us without sustaining substantial losses. What is not very
visible our high standards of productivity, Japanese work culture, a well –
trained and motivated work force and technical support from Suzuki the leader
of small cars.

The Dawn

On late Sanjay Gandhi’s date of birth Dec 14 in the year 1983, then Prime
Minister Smt. Indira Gandhi handed over the keys of the first Maruti car to
Harpal Singh of Delhi. It was beginning of a saga and since then Maruti has
grown to become India’s largest automobile company.

The idea for a peoples car & quest for a suitable technological partner was
initiated in the seventies by Sanjay Gandhi. Though he did not live long to see
the driven car roll out of the factory, the project became a huge success story.
The company search for a technological partner ended in early 80s when Suzuki
Motor Company of Japan agreed to a 26% stake in a joint venture with a newly
formed Maruti Udyog Limited (MUL), the rest 74% being need by Govt. Of
India.

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Suzuki Motor Company was chosen from seven prospective partners worldwide.
This was due not only to their undisputed leadership in small cars but also to their
commitment to actively bring to MUL contemporary technology and Japanese
management practices (which had catapulted Japan over USA to the status of the
top auto manufacturing country in the world).

A licence and a Joint Venture agreement was signed between Govt of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The first Board of Directors consisted of eight members.

Mr. Krishnamurthy became the first CMD of the company Suzuki had two
representatives in the Board. Mr. O. Suzuki, the President of Suzuki Motor
Corporation had for the first time gone to the Board of an overseas affiliate
company Suzuki had also nominated another senior director as a full-member of
the Board. He had worked in India to look after production and engineering. Mr.
R.C. Bhargava was in the Board as Director (Marketing & Sales).

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

• Modernization of the Indian Automobile Industry.

• Production of fuel-efficient vehicles to conserve scarce resources.

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

• Offer customers a friendly sales and after sales service.

Thus total automobile value and customer satisfaction shaped company’s


policies and approach to quality. The following factors also provided the
healthy factor for company growth.

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


demand of passenger cars.

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• A burgeoning workforce and growing middle class population necessitated
personal transports.

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


its junior executives

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


fulfill this demand in the market.

Transfer of Technology

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative
that the transfer of contemporary technology from our partner Suzuki is a smooth
process.

Great stress is laid on training and motivating the people who man and maintain
the equipment, since the best equipment alone cannot guarantee high quality and
productivity.

From the beginning it was a conscious decision to send people to Suzuki Motor
Corporation for on-the-job training for line technicians, supervisors and engineers.
This helps them to imbibe the culture in a way that merely transferring technology
through documents can never replicate. At present 20% of our workforce have
been trained under this programme.

Maruti's Ethos

Maruti's employees are our greatest strength and asset. It is this underlying
philosophy that has moulded our workforce into a team with common goals and
objectives. Employee-Management relationship is therefore characterised by:

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• Participative Management.

• Team work & Kaizen.

• Communication and information sharing.

• Open office culture for easy accessibility

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


organisational structure. There are only three levels of responsibilities ranging
from the Board Of Directors, Division Heads to Department Heads. Other visible
features of this philosophy are an open office, common uniforms (at all levels), and
a common canteen for all.

This structure ensures better communication and speedy decision making


processes. It also creates an environment that builds trust, transparency and a sense
of belonging amongst employees.

Maruti’s Vision

The Leader in the Indian Automobile Industry, Creating Customer Delight and
Shareholder’s Wealth; A Pride of India.

Maruti’s Core values:

• Customer Obsession

• Fast, Flexible & First Mover

• Innovation & Creativity

• Networking & Partnership

• Openness & Learning

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The people behind Maruti Suzuki

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

• The average age of all employees put together is 36.63 years

• Number of workers: 3029

• Number of supervisors/Executives: 1358

• Managers and above: 242

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PRODUCTION AND SALES

Maruti has introduced the following models on last 16 years.

Dec 83
Maruti 800
Omni Nov 84
Gypsy Dec 85
Maruti 800 (new) June 86
Maruti 1000 Oct 90
Zen Oct 93
Esteem Nov 94
Zen (automatic) Oct 96
Gypsy King Nov 96
Omni (E) Dec 96
Gypsy (E) Dec 96
New Maruti 800 Sep 97
1998 Esteem Oct 97
Zen (D) Aug 98
Maruti 800 (EX) Jan 99
Zen (LX) Jan 99
Zen Classic Aug 99
Zen VXI Oct 99
Omni XL Oct 99
Baleno Nov 99
Wagon R Jan 2000
Alto Jan 2000
Versa Nov 2001

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Maruti Alto Economic Model Versa 2004
Variant
Maruti Swift 2005
SX4 Aprill 2007
Grand Vitara May 2007
Swift Dzire March 2008
A Star Nov 2008
Ritz May 2009
Kizashi Feb 2011

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MARKETING MIX

The 4P’s of Marketing Mix are :

• Product
• Price
• Place
• Promotion

Products :

Maruti Offers A Range Of Different Products

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

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

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

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

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

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

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

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

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


AT Easy drive -with various accessories to help handicapped take the
pleasure of driving a car. (metallic & non-metallic) euro-II.

10. SWIFT, Lxi, Vxi, Lds, Ldi, Vds, Vdi


Best car of the year.

11. Baleno, Lxi, Vxi

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

13. GRAND VITARA , Mt, At

14. A Star Lxi, Vxi, Zxi

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

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

17. KIZASHI, MT CVT

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RECENT PRODUCT DEVELOPMENTS

Maruti launched Suzuki Swift in India

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

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

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

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

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

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

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

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

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

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

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

the dealer said.

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

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

be air-conditioned but without power steering.

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

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

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

expected to give about 18 km per litre.

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

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

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

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

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

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

equations of the segment," an auto analyst said.

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

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

Indian employees to develop an international car.

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FUTURE PROSPECTS

MARUTI Udyog Ltd (MUL), on it will invest Rs 2,718 crore at its plant by 2008
and launch five new models, including a diesel car, in the next five years.

"The new investments would be made for introducing new models, research and
development as well as upgradation of our facility," the MUL Managing Director,
Mr Jagdish Khattar, said here while inaugurating the company's pavilion at the 8th
Auto Expo.

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


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

"The diesel engine plant will be ready by the end of this year and along with it will
come a new diesel car model in the Indian market.

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

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


the company plans to launch.

In April, Maruti said its directors approved the investment of Rs 3,270 crore to set
up a car factory and an engine plant.

Maruti and its parent will together invest as much as Rs 1,520 crore in the car
factory, and Rs 1,750 crore in the diesel engine plant.

Asked about the funding of the new investment plan, Mr Khattar said it would be
mainly through internal accruals but the company may look at the option of raising
loans, if required.

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

The company's pavilion here at the Auto Expo displays the SUV `Escudo', `Solio',
a vehicle specifically designed for the physically challenged, and the 1.6 litre Swift
Sport

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FIVE P’S OF MARKETING

The record sales performance was ably supported by Maruti’s dealerships. During
the year, the company ended its relationship with several non-performing
dealerships and enhanced it with the good performers. The new car sales network
grew from 243 outlets to 280, with coverage expanding from 160 cities to 182.
The dealerships also participated in the expansion of Maruti’s new businesses,
including Maruti Insurance, Maruti Finance, Maruti TrueValue (Pre Owned cars)
and N2N (Corporate Lease and Fleet Management Services). These services made
Maruti vehicles even more attractive for customers.
Maruti’s service network, known for its size and quality, expanded to a landmark
1000 cities and towns during the year. The Maruti-managed Institute of Driving
Training and Research in Delhi made major contribution to safe driving which was
widely recognised, notably by the Hon’ble Delhi High Court.

Product

Maruti has strategically decided where their product will be positioned in the
market. They consider ‘position’ held by their cars in the market will be how they
want the products to be perceived in terms of factors such as brand image, value
for money, price availability etc. This is done in relationship to the competitors.

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

• Zen, Alto & Wagon R are positioned against Daewoo’ s Matiz; Hyundai -
Santro ; and Tata Indica. This is the segment where Maruti is facing stiff
competition.

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• In segment C Esteem has competition with Ford ikon , Opel corsa, Hyundai’s
Accent. Baleno is facing competition with Honda city, Mitsubishi Lancer, Opel
Astra.

Price is the value (usually measured in monetary terms) that a seller agrees to
sell a product or service for and the value at which the buyer agrees to
purchase.

The exchange transaction can either be :

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

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

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

The method used will vary from product to product and from market to market.
With some products the prices may be fixed and no negotiation will take place like
in case of cars

Price the company will charge will greatly affect the eventual level of sales. The
price is an integral part of the product and will perform many tasks in bringing
about eventual purchase. The most important of these tasks is to match the value
and the benefits expectation of the consumer. Too high a price in relation to
perceived product benefits, the customer might think he is not getting value for
money and will buy products from competitors. Too low a price and the customer
will think the product inferior and again, reject it.

Price :

Pricing Objective Of Maruti

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

• Maintain and enhance market share

• Meeting competition

• Maximize profits

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• Stabilize prices

Methods Used In Pricing Maruti’s Products

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

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


because of its apparent simplicity. The cost of the product is worked out by
allocating a portion of the fixed cost to each product and then adding it to the
variable costs. This gives the total cost of each product and the percentage
profit desired can be added to give the selling price.

In using cost-plus pricing there is an assumption made that having established the
total cost price the product manager need only add the desired mark-up. But this
does not take into account the fact that the competition may be offering a similar
product at a lower price, because of greater productivity or willingness to work on
a lower mark-up.

Similarly the customer may be unwilling to pay this price either because they can
purchase the similar product from the competition.

So Maruti keeps in mind the total cost of the product they have incurred along with
that they follow the market pricing.

• Market Pricing : Maruti cannot set its own prices in isolation from that what is
happening in the rest of the industry. The competitors in the market will have
cost and price structure which is investigated and analyzed thoroughly.

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


instigated by any of the competitors or any change in government policy will cause
corresponding movements by the competition and this the most important point
which Maruti considers while playing around with product prices.

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Procedure For Setting The Prices Of Maruti Products :

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

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Prices Of Different Models Of Maruti :

1. MARUTI-800 :

Ex-showroom Price
Variant Colour Type
(Rs.)

Maruti 800 Std with


Non-Metallic 226000
AC Bh-II

Maruti 800 Std with


Metallic 228700
AC Bh-II

Maruti 800 Std -


Non-Metallic 203300
Bharat II

Maruti 800 Std -


Metallic 205900
Bharat II

2. ALTO :

Ex-showroom Price
Variant Colour Type
(Rs.)

AltoLX - Bharat II Non-Metallic 265000

AltoLX - Bharat II Metallic 268600

Alto Spin VXi-


Non-Metallic 365900
Bharat II

Alto Spin VXi-


Metallic 369500
Bharat II

Alto Spin LXi--


Non-Metallic 284800
Bharat II

Alto Spin LXi--


Metallic 288400
Bharat II

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3. BALENO :

Colour Ex-showroom Price


Variant
Type (Rs.)

Baleno Sedan - Bharat Non-


655700
II Metallic

Baleno Sedan - Bharat


Metallic 655700
II

Baleno Altura - Non-


703800
Bharat II Metallic

Baleno Altura -
Metallic 703800
Bharat II

4. ESTEEM :

Ex-showroom Price
Variant Colour Type
(Rs.)

EsteemAX -- Bharat
Non-Metallic 604000
II

EsteemAX -- Bharat
Metallic 604000
II

Esteem VXi --
Non-Metallic 539600
Bharat II

Esteem VXi --
Metallic 539600
Bharat II

Esteem LXi -- Bharat


Non-Metallic 499800
II

Esteem LXi -- Bharat


Metallic 499800
II

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Esteem Di -- Bharat
Non-Metallic 548100
II

Esteem Di -- Bharat
Metallic 548100
II

Esteem Velocity Bh
Non-Metallic 514800
II

Esteem Velocity Bh
Metallic 514800
II

Esteem LX -- Bharat
Non-Metallic 466600
II

Esteem LX -- Bharat
Metallic 466600
II

Esteem D -- Bharat II Non-Metallic 522500

5. MARUTI GYPSY :

Colour Ex-showroom Price


Variant
Type (Rs.)

Gypsy Hard Top 1.3 Non-


472800
Bharat II Metallic

Gypsy Hard Top 1.3


Metallic 475700
Bharat II

Gypsy Soft Top 1.3 Non-


453300
Bharat II Metallic

Gypsy Soft Top 1.3


Metallic 456200
Bharat II

6. MARUTI OMNI :

Colour Ex-showroom Price


Variant
Type (Rs.)

OMNI CARGO Non-


220100
BHARAT II Metallic

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OMNI CARGO
Metallic 222800
BHARAT II

Omni Amb. high roof Non-


257800
Bharat II Metallic

Omni Amb. high roof


Metallic 257800
Bharat II

Omni Flat Roof 8 str Non-


222000
Bharat II Metallic

Omni Flat Roof 8 str


Metallic 224800
Bharat II

Omni Flat Roof 5 str Non-


220100
Bharat II Metallic

Omni Flat Roof 5 str


Metallic 222800
Bharat II

7. MARUTI VERSA :

Colour Ex-showroom Price


Variant
Type (Rs.)

Versa DX - 5s Bharat Non-


400700
II Metallic

Versa DX - 5s Bharat
Metallic 404300
II

Non-
Versa - DX Bharat II 400700
Metallic

Versa - DX Bharat II Metallic 404300

Versa DX2 - 5s Non-


438500
Bharat II Metallic

Versa DX2 - 5s Metallic 442100

29
Bharat II

Non-
Versa - DX2 Bharat II 438500
Metallic

Versa - DX2 Bharat II Metallic 442100

Non-
Versa - SDX Bharat II 490700
Metallic

Versa - SDX Bharat II Metallic 494300

10. WAGNOR :

Ex-showroom Price
Variant Colour Type
(Rs.)

WagonR AX--Bharat
Non-Metallic 452900
II

WagonR AX--Bharat
Metallic 456500
II

WagonR LX--Bharat
Non-Metallic 325400
II

WagonR LX--Bharat
Metallic 329000
II

WagonR VXi--Bharat
Non-Metallic 376800
II

WagonR VXi--Bharat
Metallic 380400
II

Wagon R VXi Bharat


Non-Metallic 376800
II

Wagon R VXi Bharat


Metallic 380400
II

Wagon R LXi Bharat


Non-Metallic 352500
II

30
Wagon R LXi Bharat
Metallic 356100
II

Zen Estilo

Ex Showroom
VARIANT Color Type
price
Estilo Lx 326,172
Estilo Lx (M) 329,338
Estilo Lxi 356,963
Estilo Lxi (M) 360,129
Estilo Lxi CNG 408,963
Estilo Lxi CNG (M) 412,129
Estilo Vxi 383,421
Estilo Vxi (M) 386,587
Estilo Vxi Abs 412,966
Estilo Vxi Abs (M) 416,132

Swift

Ex -
Showroom
Model / Vehicle Type Price
Swift Lxi 407,341
Swift Vxi 460,984
Swift Vxi Abs 475,831
Million Edition 485,189
Swift Zxi 536,227
Swift Diesel Ldi 492,163
Swift Diesel Vdi 528,662
Swift Diesel Vdi (Abs) 547,277

31
Swift Dzire

Ex - Showroom
Model / Vehicle Type Price
Swift Dzire Lxi 491,558
Swift Dzire Vxi 543,227
Swift Dzire Zxi 635,770
Swift Dzire Ldi 578,722
Swift Dzire Vdi 627,630
Swift Dzire Zdi 710,874

SX4

Ex -
Showroom
Model / Vehicle Type Price
SX4 Vxi 697,007
SX4 Vxi CNG 754,006
SX4 Zxi 772,174
SX4 Zxi (Leather) 806,263
SX4 At 838,271
SX4 At (Leather) 872,360
SX4 Vdi 774,000

32
SX4 Zdi 862,000
SX4 Zdi (Leather) 896,089

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.

33
• 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

Producer Customer

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


intermediaries to bring their products to the market. An intermediary is an
organization or an individual, which acts as a conduit for product or service
delivery, between the producer and the end-customer.

There can be one, or more, intermediaries in the distribution chain from the
producer to the end-customer and each may purchase the goods either for resale to
end-customer or act as some form of agent, passing on the product to another
intermediary.

34
INDIRECT DISTRIBUTION
Producer
Producer Dealer
Dealer Customer
Customer

Producer
Producer Wholesaler
Wholesaler Retailer
Retailer 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.

35
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.

36
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:

37
• 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.

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


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

38
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.

39
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

40
sales promotion strategy is to increase sales, either overall or on specific models.
Most of the schemes of sale promotion are at national level. Local level schemes
are formulated and implemented by regional offices. MUL does its sale
promotion in three basic ways:

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


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

41
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

42
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 :

43
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.

44
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.

45
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 mini-
metros, while the M800 is to be targeted at small towns and semi-urban areas.

46
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.

47
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

48
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

49
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.

50
Marketing & Sales In Maruti :

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


comprises of the following departments.

Marketing
Marketing&&Sales
Sales
Division
Division

Sales
SalesPlanning
PlanningDepartment
Department

Marketing
MarketingPlanning
Planning
Department
Department

Dealer
DealerDevelopment
Development

Marketing
MarketingDepartment
Department

Regional
RegionalOffice
Office

Sales
Sales&&Dispatch
DispatchDepartment
Department

Export
Export––11&&22Department
Department

51
Marketing Department

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


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

• Advertising research

• Product Advertising and Promotion

• Corporate Advertising

• Formulating Corporate Identify Guidelines

• Organizing sales training for dealers

• Organizing exhibitions and rallies

• Developing Socially Relevant Campaigns

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


gradation.

Regional Offices

In order to manage the sales and service network, Maruti has divided the country
into five regions, which are further into territories. Maruti has five Regional
Offices located in Delhi, Bombay Calcutta, Chennai and Chandigarh and Area
Offices located at Lucknow, Hyderabad & Mumbai.

Each dealership operated in one territory, but does not have exclusive selling rights
in the territory. The dealer is expected to service the entire territory through his
dealership.

The Regional Office (RO) has the primary responsibility of managing, monitoring
and supporting the network in a region. The RO has field staff for Sales and
Services. A Regional Manager (RM) heads each RO. The sales staff has primary
responsibility for all sales related issues, and report to the RM. The services
engineering’s look after the workshops and MASSs in the region, and report to the
Regional Service Representative (RSR).

52
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.

53
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)

54
• 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

55
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

56
Maruti 800 :
Maruti Deawoo Hyundai Tata
Feature Fiat Uno Maruti Advantage
800 Matiz Santro Indica
No of Lower emissions,
4-valves 2-valves 3-valves 2-valves 2-valves
Valves superior performance
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
Economically priced
Copy
Tried & spares Easy
New from New
Design Trusted Old Shape repairable through
Design Suzuki Design
Design Maruti network
Shape
across India.
Economic
Expensiv Expensiv
Price al entry Expensive Expensive Affordability for all
e e
level price
Esteem :
Hyundai Maruti
Feature Esteem Ford Ikon Indigo
Accent Advantage
Power-to-
99 70 92 79 Faster pick-up.
weight
(85bhp, (69 bhp, (94bhp, (85bhp, 1065 Better
Ratio(bhpx10
860kg) 978kg) 1023kg) kg) acceleration
00/kg)
No. of Extra power
valves/cylind 4 2 3 2 and superior
er fuel efficiency
Electronic
Faster engine
Control 16 bit Not known 8 bit Not known
response
Module
Easy on your
Total Cost of
purse. Best
Ownership(R 3.53 4.24 4.14 Not Known
value for
s./km)*
Money
Fuel 12.6 11 11 NA Best fuel
Efficiency**( economy
kmpl) among Petrol

57
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 Tata


Features Maruti Advantage
Zen Matiz Santro Uno Indica
Best engine design
means greater
efficiency from
Performanc optimum size. Smaller
993 cc 796 cc 999 cc 1242 cc 1405 cc
e engine means more
wear and tear, larger
means greater fuel
consumption
4-valve per cylinder
configuration allows
No of for more efficient
16-valve 6-valve 12-valve 8-valve 8-valve
valves burning of fuel, better
engine response and
lower emissions.
Best power in relation
to weight means
Power to 60 bhp 52 bhp 55 bhp 60 bhp 75 bhp nimble movement and
weight for 755 for 800 for 776 for 840 for 980 fantastic power
ratio kgs. kgs. kgs. kgs. kgs. delivery combined to
excellent fuel
consumption
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

58
Latest in technology,
Electric Ordinary
Ordinary Ordinar Ordinar unmatched road feel
Power Power
Steering Power y Powery Power and feedback and
Steering Steering
steering steering steering fewer moving parts =
on Vxi on SP
more reliability
Kenwoo
Daewoo Not Not Factory fitted stereo for
d Stereo Not
Stereo Stereo in availabl availabl miles of musical
in Vxi, available
SE, SP e e pleasure
D
Electric
Window
Not Not Convenience feature
Electric One- Not Not
availabl availabl for toll booths, fast
Window Touch available available
e e food joints etc.
for
driver

59
Baleno Sedan :

Hyundai Ford Hyundai Corsa


Baleno City The Baleno
Feature Accent Ikon Accent 1.6
Sedan 1.3 DX Advantage
GLS 1.6 NXT Viva GSi
Engine Power at your
1590 cc 1495 cc 1343 cc 1597 cc 1599 cc 1598 cc
Capacity command .
Better breathing
characteristics,
Number less stress on
16 12 16 8 16 8
of valves engine and
hence better
engine life.
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 silk-
smooth 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-

60
smooth ride on
all surfaces.
twist nd
Minimised road
Rear strut beam Suspensi
noise and
system on
vibration in
passenger cabin
Kenwood
Stereo Not Not
Present Present Present Present System with
System present present
Remote Control
Elect.
controlle
d rear Not Not Not Better Driving
Present Present Present
view present present present Comfort
mirror

Front
Comfortable
Seat Not Not Not
Present Present Present Driving
Height present present present
Position
Adjuster
Power Not Not Top tilt Convinience of
Present Present Present
Antenna present present antenna Operation
Keyless
entry Unparalled
Not Not Not Not
with Present Present security for
present present present present
security your car
Alarm
Rear Not Not Not Not Not
Present
Spoiler present present present present present
Alloy Not Not Not Not
Present Present
wheels present present present present

Alto :
ENGINE PERFORMANCE
Feature Alto Vxi Santro Zip Indica The Alto
Palio 1.2
Point (Spin) Plus LSi Advantage
Ignition Dual Distributor- Not Distributor Two ignition coils
distributor- less ignition availabl based result in faster start

61
less digital
ignition
and efficient ignition
(DDLI) (Single
e ignition as compared to
(Two Ignition Coil)
single coil.
Ignition
Coils)
Onboard
Not Greater convenience,
Engine Not available Not
Available availabl faster repair and low
Check available
e maintenance cost.

Faster, precise and


Electronic 16 bit
16 bit 32 bit accurate engine
Control 8 bit computer compute
computer computer response adding to
r
overall performance.
Hydraul Speed Sensitive for
Power Electronic Hydraulic Hydraulic
ic greater control on
Steering Power Power Power
Power fast drives and low
Steering Steering Steering
Steering maintanence cost.
Comfortable city
driving eliminating
Flat need to change gears
Irregula Irregular
torque Flat torque Irregular frequently.
r torque torque
curve curve torque curve
curve curve
Faster pick up -
Exhilarating
performance.
Better breathing
characteristics with
1C4V
Not more number of
Technolog Not
Available Not available availabl valves. This reduces
y available
e load on the engine
and increases their
life.
Total no. 16 12 8 8 Better fuel
of valves management, lower
emission, better
engine performance
and more available
power. Better
breathing

62
characteristics.
Max.
speed*(k
148 153 154 Thrilling drive.
m/hr) 156

Power to
More available
weight
power per tonne of
ratio 84 81 74.6 71
load. Better pickup,
(bhp/tonne
faster acceleration.
)
Engine
Optimum engine
displacem
1086cc 1045cc 1242 cc displacement leading
ent 1061 cc
to longer life.

Better
Turning
4.6 4.4 4.9 5.1 manoeuvrability and
Radius(m)
ease of parking.
INNOVATIVE FEATURES
Santro
Feature Alto Vxi Indica
Zip Palio 1.2 The Alto Advantage
Point (Spin) LSi
Plus
'Key not
Not Not
removed' Not
availabl availabl Reminder if key is left in the
reminder Available available
e e ignition switch.
chime

More user-friendly. Is very


Not Not useful during foggy and rainy
Not
'Lights on' Available availabl availabl conditions when we switch
available
reminder e e lights on during daytime and
tend to forget switching them
off.
Improves driving efficiency
Not Not by changing gears at the right
Electronic Not
Available availabl availabl RPM. Also, one can check the
Tachomet available
e e rpm during idling and find out
er
whether the engine is properly
tuned or not.

63
Electronic Not Allows two people to log in
Not Not
Odometer availabl distances covered
Available availabl available
and Multi- e simultaneously. Since, it is
e
trip meter digital, it is tamper-free.
*Autocar India issue 2002

Wagon R :
Unmatched Performance
Wagon R Santro WagonR Advantage
64 bhp low friction engine 63 ps engine Superior engine, better fuel efficiency,
more power lower emission
16 valves (4 valves per 12 valves (3 valves per Superior engine, better fuel efficiency,
cylinder) cylinder) more power lower emission
Power to weight ratio = 77.6 Power to weight ratio = Faster acceleration, better pick up
bhp/tonne 73.8 bhp per tonne
16 bit computer 8 bit computer More intelligent & faster engine
response
On board engine check No on board engine Low maintenance costs, faster repairs
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 Better fuel economy
(Owner reported mileage in km/l
NFO survey)
Unmatched Space and Comfort
Wagon R Santro WagonR Advantage
Fully flat reclining front seat Not present Airline seating comfort
and reclining rear seat

Electronic power steering Not present Flexible seating and more space for
(EPS) luggage

64
Total boot space: 312 litres Total boot space: NA Maximum boot space

Maruti Gypsy King MPFI :


Maruti
Mahin
Gypsy Comma Tata The gypsy King
Feature dra Marshal
King nder Sumo Advantage
550 DP
MPFI
80 bhp 62 bhp 62 bhp Most powerful
55 bhp @ 68 bhp
Power @6000 @4500 @4500 four wheel drive
3000 @ 4500
rpm rpm rpm in the country.
Easier
drivability on
1355 1370 kg 1670 kg
Kerb Weight 985 kg 1700 kg muddy ground
kg Soft top (Soft top)
and in sandy
areas
Faster
Power to acceleration.
weight Soft top Engine can
45.75 45.25 32.93 40
ratio(bhp/ton 81.22 survive in
ne) extreme climatic
conditions
Ground 200 Better off-road
210 mm 200 mm 200 mm 160 mm
Clearance mm handling
Quick response
in emergency or
Turning
6m 6.34 m 6.6 m 6.6 m 5m heavy traffic
Radius
situation Better
maneuverability.

65
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
interms of cars. c. Maruti started its customer oriented
approach.
d. To sustain one market share made some
changes in one market strategy as well
such as making advertisement which
would show one deep association of
Maruti with Indians and at the same time
reflect the technological changes.
Customer was getting aware with 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 Changes at MUL – Maruti Udyog Ltd.,
competitors were convincing with could not just sit back and see its
better technology which made them competitors rising andacquiring the market
cut cost and sell cheap, thus share. Hence they also improved upon
assuring higher technology. technology with one changing times. Infact

66
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.

67
SURVEY CONDUCTED AT MARUTI SUZUKI INDIA LTD

SURVEY NO. 1

PRODUCT PARAMETERS AFFECTING CONSUMERS PURCHASE


DECISION

SURVEY NO. 2

ONLINE BUYING CAPACITY OF CONSUMER

68
PRODUCT PARAMETERS AFFECTING CONSUMERS PURCHASE
DECISION :

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


Delhi, Hyderabad, Mumbai and Pune. Both studied 200 respondents consisting
of potential first time buyers, upgrade’s and replacement buyers. It provide that
price is the primary driver of choice for only 36.20% of sample as compared to
38.40% of sample considering fuel efficiency a more important. Other important
revelations were:

1. Most important purchase driver for India's potential car buyer:


Ranking done in order consumer

Mileage 38.4%

Price 36.0%

Brand 20.7%

Safety 19.3%

Service 10.5%

Design 8.4%

Resale value 40%

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

69
2. Most important purchase drives for India's first time buyer:

Mileage 36.2%

Price 36.2%

Brand 20.2%

Safety 19.1%

Service 7.6%

Resale value 5.3%

Design 4.3%

Resale value 40%

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

50.00% 46.20%
45.00%
40.00% 36%
35.00%
30.00%
25.00%
20.00%
15.00%
7.90% 7.40%
10.00%
2.50%
5.00%
0.00%
Very Imp. Quite Imp. Imp. Unimp. Totally Unimp.
Nearly two-thirds of the respondents do not rate the price as over-whelmingly important. So, the price-
warriors may be chasing the wrong USP even in the small cars market

70
4. Importance of price to customers in different income-groups

60.00%

50.80%
47.90%

47.80%

45.20%
41.40%
50.00%

39.00%

35.10%

31.70%
40.00%

63.10%
22.10%
30.00%
70.00% 19.60%

51.90%
48.90%

14.10%
60.00%
20.00%

43.10%
36.40%
50.00%
36.20%
4.30%

10.00%
29.60%

40.00%

23.70%
18.50%

30.00% 20.50%
14.90%

0.00%

13.20%
20.00% Rs 1 lakh Rs 1-2 lakh Rs. 2-3 lakh Above 3 lakh

10.00%
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
Firsteither.
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.

71
• Competing on basis of prices in small car market is a dangerous,
unsustainable strategy

72
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.

73
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?
………………………………………………………………………
………………………………………………………………............

74
RESULTS OF THE ABOVE QUESTIONNAIRE

Ans of Q1. Only 78% people use internet.

No

Yes

0 20 40 60 80

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

Café

Home

Offices

0 10 20 30 40 50

or

75
Ans of Q3. Email: 53% Information: 30%
Net banking: 14% Transaction: 03%

Transaction

Net Banking

Information

0 5 10 15 20 25 30

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

No

yes

0 10 20 30 40 50 60 70 80

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

76
<50,000

>50,000

0 10 20 30 40 50 60 70

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

No

Yes

0 20 40 60 80

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


Books:11% Gadgets: 47%

Gadgets

Books

Services

Disc coupons

0 10 20 30 40 50

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

77
<50,000

>50,000

0 20 40 60 80 100

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


Honda: 05 Others: 13%

Others

Honda

Hyundai

Maruti

0 10 20 30 40 50 60

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

No

Yes

0 10 20 30 40 50 60 70 80 90

Ans of Q11. Insurance:47% Finance:32%


Accessories: 01% Any other: 20%

78
AnyOther

Accessories

Finance

Insurance

0 5 10 15 20 25 30 35 40 45 50

EXPECTED CHANGING STRATEGIES IN MARKET TREND &


CHANGES IN MSIL

Market Trend Changes in Business (MSIL)

a. Foreseeing the changes in the a. Maruti would keep customer as


market five years down the line the prime focus.
was a tough job in term of b. There is a possibility that Maruti
increasing competition. starts with the customization of
b. We are gradually moving towards cars i.e. make.
the customer oriented market, c. Redesigning of cars suit the
where customer very soon would market trend would be done ask
be termed as “King of the when required.
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 MUL would solve this problem by
with higher cost effectiveness. taking following steps:
Money being a major consideration in a. Warranty for cars.
current scenario and which is
expected to rise furthermore cars b. Buying back facilities.
need to higher in terms of full c. Encourage and scale and purchase
efficiency and lower interms of of old cars.
maintenance.
d. Easy financing and financing 0%
interest or very low interest rates.

79
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. International competitors would


would be higher quality standards and induce Maruti to insure more rigid
norms to be followed and comply standards of quality. The norms
with customer would then demand would demand more eco-friendly
better service. The immense vehicles and customer would ask
competition would not leave much for more benefits. Therefore to
distinction in terms of product keep themselves going in the
attributes but only thing which would market MUL would have to take
create distinction would be service. 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.

80
CONCLUSION :

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

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

till recently Daweoo.

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

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

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

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

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

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

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

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

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

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

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

for money concept to customers.

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

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

to gain the lost of Maruti.

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

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

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

81
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.

82
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)
HM/Mitsubishi
Honda Siel
115 114 114 Ford India
M&M
110 Dawood Motors
109
110 Hyundai
105 MUL

SSI Scores 105 102 102

100

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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

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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.

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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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