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Ms. Namita Kapoor
Cherie Dhillion (14) Pratyush Ranjan (24) Sourav Mukherji (28) Babariya Linesh (31) Karamcheti V. Rajashekhar (42) Farhan Ahmad (53)
1) EXECUTIVE SUMMARY 2) DEMAND AND SUPPLY FACTOR 3) HOW PRICES ARE DECIDED 4) LIST OF SUPPLIERS 5) DEMAND FORECASTING 6) LOCATION OF MANUFACTURING UNIT 7) COSTING METHOD AND COST REDUCTION TECHNIQUES 8) TYPE OF COMPETITION 9) VARIOUS PROBLEMS WITH SOLUTIONS 10) CONCLUSIONS
Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto key car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzuki’s are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzuki’s (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. Basically through this document we are being shaping out some important features of Maruthi Suzuki Shift which has been hit the Indian roads in 2005. It has redefined the definition of premium hatchback car segment in Indian industry. It has innovative and advanced features with car safety technologies which differentiated the swift to be no.1 in the hatchback segment of auto industry in India. So we have chosen the Maruti Udyog Ltd. Gurgaon for this. We have researched on the following which affects the Maruti Suzuki and differentiates from the various products in the A2 car segment of Auto industry in India.
3. 4. As the law of demand also states that with an increase in price the demand of the commodity decreases and vice versa. . Interest rates on car loans have come down drastically in the past four or five years. compared to 65 per cent five years ago. 3. there has been a shift from the Lower CC-segment cars to the Upper CC-segment cars. The growth of the CC-segment in the past few years can be mainly credited to factors such as rise in income levels leading to increased affordability and simultaneous reduction in interest rates leading to lower EMIs. which helps prospective buyers take the plunge. It is all due to because the companies now a days are using even aggressive selling techniques for which they are even coping with the Film celebrities and Cricket stars.01 lacs in 2011. Like the price of Swift in 2004 was Rs. etc. 2. A larger shift happens if people are willing to take long-term loans. Advertising and Marketing Due to the advertising techniques adopted by all the manufacturers in the CC-Segment the sales have risen drastically. Financing Options Auto industry observers cite car loans as the biggest driving factor for the expansion of the Compact Car segment. 4. At present. almost 85 per cent of all new car sales are backed by auto finance. Price of the Car One of the major factors that affect the demand of any commodity in the market is the price of the commodity. Income of Consumer / Buyer The income of the consumer or buyer of the car is a very important factor of demand.77 lacs which increased to Rs. They are using data according to the customers return and earning capacity for attracting the customers for their vehicles. Since. And the companies are even trying to approach to the customer as to their demand for a vehicle at special interest loans. The drop in interest rates usually helps very few people to probably shift from the base model to a deluxe model. in the compact car segment market even there are very less competitors there is stiff price competition. In recent time we have seen that due to increase in the Income of the general public. but still the sale of the Maruti brand keeps on increasing it was due to the company’s reputation with the customers.Demand Factors 1. like five years instead of the earlier threeyear loans.
In the past one year only the Indian car market has seen many launches namely SX4. Over the past 4-5 years car industry has been benefited through significant increase in affordability due to the decrease in EMIs. New Offerings Car sales increase when a new model hits the market. Availability of Easy Financing Options A majority of PV purchases are financed through financial institutions. purchase decisions are influenced by the overall economic environment. India’s share of global passenger cars export volume stands at less than 1%. Increase in Affordability The demand for passenger cars is driven mainly by greater affordability. Exports The share of exports from domestic production is currently at 12-13%. The current hardening of interest rates is expected to affect demand by reducing affordability. 9. Car finance rates dropped from 17% in 2000-01 to 11% in 2005-06. . which is also having a positive rub off on car demand.Swift Diesel. frequency of new model launches has increased. who forms major portion of the population. Currently. which is much lower than current export hubs. 6. Due to escalation in competition in Indian car market. and several manufacturers have already firmed up plans for setting up manufacturing bases in India. But India is fast emerging as a manufacturing hub for leading global car makers. Growth in per capita income and rising aspirations and changing lifestyle is leading to increased preference for cars over two-wheelers.75% in 2010-11. Increase in per capita income increases the consumption tendency of the customer. etc. PV market has larger addressable market. which in turn increases the aspiration level of the customers. Logan. Demographic Drivers Cars being aspirational products. However it has increased and averaged at 13. 8.5. 7. Zen Estilo. Today with high amount of disposable income in the hand of Indian youth. Spark. which will also be used for exports.
Typically a customer upgrades from one segment to higher segment and the presence across various segments ensures that the company retains its existing customers. Wide Dealer Network and Availability of Finance A wide dealer network helps the company serve customers over wide geographical area. 2. The companies are tying up with the financial institutions having rural presence to provide additional financing options to customers in such areas. If the price of the car is high in the market. Maruti has used its available wide service network as point of difference over competitors. the manufacturer or the supplier will want to supply more units in the market so he can earn more profits. The best solution is that market equilibrium should be achieved so that the amount of the quantity demanded should be equal to the amount of the quantity supplied to achieve maximum profits. But still any new model launch meets with increase in sales volume for the company. Efficient Operations Competition in PV segment is very intense and this requires the existing players to initiate steps to reduce their cost of production. A Market Equilibrium is achieved at the .Supply Factors 1. In the market the price of one car is inter-related to the price of the other cars in the same segment. 4. Moreover in a time when a substantial portion of Indian customer is looking to upgrade in higher segment. if one company drops its price for the car. Presence across Segments Manufacturers with presence across various product segments can ensure higher volume and better capacity utilization by using the common manufacturing capacity. there is a huge impact on the sales of the other cars as well as the same car. 3. companies with latest technologies and latest models will catch more attentions 5. Access to Latest Technologies Indian PV segment is highly competitive with as many as 14 players operating in it and more than 80 models on the offering. Price of the Car Price of the car is one of the major factors that affect the supply as well as the demand of a car. In the automotive industry where the market type is oligopoly. Effective and successful operation methods like platform commonality. reduction in vendor base and workforce rationalization can help a company immensely.
The point is the equilibrium point where the quantity demanded is equal to the quantity supplied. Machinery. The more the quantity changes.point of intersection of the demand line and the supply line. high competition and many substitutes. machinery and input costs also influence the supply with the increase or decrease in these costs. Labour. As price increases. . Recently the government has reduced the custom duty on inputs and raw material from 20% to 15% which has increased the supply. Government Policies and Taxes If there is a change in the government policies regarding the increase in the road tax charged or the tax which is to be paid per unit sold.These factors influence the supply of a car largely. elasticity tells us how much quantity demanded or supplied changes when there is a change in any of the factor. the more elastic the good or service. 7. Demand and supply refer to the relationship price has with the quantity consumers demand and the quantity supplied by producers. Rubber) increases there will be an increase in the cost of production leading to decrease in profit margins. On the other hand. Costs like labour costs. Input Cost . If the cost of the raw material (Steel. 6. quantity demanded decreases and quantity supplied increases. Cost. Monopolies characterize industries in which the supplier determines prices and high barriers prevent any competitors from entering the market. Conclusion Market economies are assumed to have many buyers and sellers. Factors of Production There are some factors of production which influence the supply of a car like Cost of Raw Material. the supply of a car will fluctuate with the nature of the change. Spare Parts.
2 L K series petrol engine of Maruti Swift is very fuel efficient and the light weight DOHC engine present in the car is very efficient in reducing the friction and provides the best fuel economy. mileage.2 L. This gearbox is cable type gearshift which is of great help at the time of shifting of gear. The DDiS engine of Maruti Swift is equipped with 5 Speed manual transmission with synchromesh in all gears and one reverse. The diesel variants of Maruti Swift is endowed with 5 step multi injection common rail system that offers better fuel combustion. Maruti Swift powerful engine is endowed with the emission of BS IV and is very fuel efficient that offers an impressive mileage of 13. Power: As mentioned earlier. The K-12 engine of Maruti Swift is endowed with 5 Speed Manual Transmission. The diesel version of Maruti swift is packed with 1. this gearbox offers a great performance and makes the car very economical on roads. The 1.2 L K series petrol engine with a displacement of 1197 cc. K series petrol engine is packed with many advanced features that help to make the performance of the car very ultimate and mind blowing.8 kmpl in the city roads and 23. The 1. This compact diesel engine is incredibly fuel efficient that results in a mileage of 15. Petrol and Diesel version.2 kmpl in the urban roads and 17. diesel model is more expensive than petrol version Maruti Suzuki swift cars.Petrol and Diesel.1 kmpl on the highways.3 L diesel engine is packed with fixed geometry turbocharger with intercooler combination that offers efficient combustion and clear emissions. This K series engine of Maruti Swift has BS IV complaint emission level that makes . The 1. The petrol version of Maruti Swift is packed with 1. This higher mileage is the outcome of free revving and all round aluminum construction that offers excellent mileage due to reduced weight and higher power to weight ratio. low noise and cleaner exhaust. Maruti Swift comes in two version. The Car engine is packed with 5 Speed Manual Transmission. As the diesel version is giving better average than that of petrol version model.How prices are decided for a Maruti Suzuki Swift? Maruti Suzuki decides its prices as per the performance. and a very good performer. with synchromesh in all gears and one reverse. Prices are decided on the basis of following factors: Fuel Efficiency/Mileage: There are two versions of a Maruti Suzuki Swift.3 L DDiS engine with a displacement of 1248 cc. The engine has MPFI (Multi Point Fuel Injection) supply system that offers very great performance and flatter torque for the car.2 kmpl on the highways. interiors as well as the version of the cars.
The acceleration of a car is highly dependent on the power. The diesel version of Maruti Swift is packed with 1. On the other hand. This highly advanced engine of Maruti Swift is sure to produce a maximum power of 85 PS at 6000 rpm and a torque of 113 Nm at 4500 rpm. Swift is a very smart and classy car that posses very dynamic and robust look. torque and transmission of the car.9 seconds and top speed of 162 kmph. the diesel engine of Maruti Swift is packed with 1. smooth and hassle free driving experience. The DDiS engine is endowed with superior CRDI fuel injection system with turbocharger and intercooler combination that offers efficient combustion and higher torque. This advanced DDiS engine is equipped with unique 5 step multi injection technology offers superior drive and fewer gear shifts produces an impressive power of 75 PS at 4000 rpm and a torque of 190 Nm at 2000 rpm. amazing fuel efficiency and better fuel combustion.3 L. The engine is packed with 5 Speed Manual Transmission that is very fuel efficient and to run by providing a very excellent mileage. The sleek body graphics of this car has unadulterated looks which is quite irresistible in just a single glance. 1248 cc displacement. The petrol version of Maruti Swift is packed with 1. . The head turner with class apart features has very elegant design and stylish exterior. The powerful diesel engine is very efficient and helps in reducing vibration and noises even at high speed and thus offers comfortable. The diesel version of Maruti Swift is endowed with turbocharger and intercooler combination and 5 step multi injection common rail system that offers higher torque.8 seconds and reaches top speed of 169 kmph. Acceleration and Pick-up: The pick-up and acceleration of a car is a deciding factor when one decides to purchase a car.3 L DDiS engine with a displacement of 1248 cc. This high powered engine has a great acceleration and reaches 100 km in just 14. The DDiS engine of Maruti Swift is also equipped with 5 Speed Manual Transmission with synchromesh in all gears and also in reverse one.the car greener and eco-friendly. The DOHC (Double Over Head Camshaft) packed engine of Maruti Swift produces less noise and vibration even at high speed and is highly fuel efficient. This K series engine of Maruti Swift crosses the barrier of 100kms in just 13. This K series engine is a great performer and produces highest power and torque with passing acceleration in city driving conditions for zipper overtaking. Exteriors: Maruti Swift is a very classy car with unmatched exteriors to attract huge fan following.2 L K series engine with a displacement of 1197 cc. This K series engine is packed with light weight DOHC engine that reduces friction and performs better. The curvier body look of the Maruti Swift is its eye catching feature.
etc. The automatic climate control system offers you to choose the temperature you desire and on board computers auto adjust to the weather outside. style. The chrome finished Logo of the company at the front of the Maruti Swift throws the trust and faith the company have. The colored outside door handles and colored door mirror offer that extra bit of finishing touch to the overall exterior of the car. The head restraint and driver seat height adjuster offer a very good and comfortable driving . The single folding rear bench seat offers the optimum utilization of space when required. The air conditioner with heater controls the inside temperature and offers a very comfortable driving. The electric ORVM present in the Maruti Swift offers comfort of changing the view without opening the windows of the car. The power window in both front and rear seat gives great comfort in closing the windows when needed. The fully integrated stereo system also adds joy and pleasure to your driving. ticket holders. The high mounted stop lamp and a rear bumper integrated fog lamps give clear signals to follow traffic and also provides a terribly amazing looks. Interior Comfort: Maruti Swift offers a swathe of comfort and pleasure to its passenger with array of advanced and comfortable features that offer a very pleasant and comfortable driving. cup holders. The alloy wheels and body colored outside mirrors with indicators and body colored door handles give the car a very aggressive and classy look. The driver’s seat height adjustment in the car offers a comfortable drive for nay driver. The car is all set in the roads with not only looks. interiors. This curvier headlight makes the look of the car very stunning and attractive. The rear section of the Maruti Swift is also impressive with chic wraparound tail lamps and stylish designed LED tail lights that offer a very impressive look. console box. The storage section is also defines with huge luggage space. maintaining precise cabin temperature. The electronic tilt Power Steering of the car offers a very comfortable drive by customization in the position according to one’s need for any height of driver.The rich chrome styling front grille of the car merges very well with the chiseled shoulder line and gives the looks an extra superior effect. and exteriors but with many comfort features to attract huge number of car lovers. The body colored bumpers and internally adjusted ORVMs give the car a more stylish and dynamic exterior. The illuminated steering mounted audio controls offers control of audio system on the steering itself. The powerful headlamps offer clear and superb visibility and the headlight leveling allows you perfect light beam adjustment.
LDI & VDI and 185/70 R 14 for ZXI & ZDI. 1197 cc K series engine which is highly powerful. Maruti Suzuki Swift Engine Capacity & Performance: Maruti Swift is a very high performing and dynamic car with wealth of advanced technology and features in it. The size of the tyre is 165/80 R14 for LXI. Maruti Swift comes with tubeless tyres which are puncture resistant and ensure you a very comfortable journey without tension of tyres. The 16 valve cylinder head offers improve breathing and better fuel efficiency. The cooled ERG system endowed in the engine helps in cooled exhaust gas recirculation and cleaner emissions.2 L. This high powered engine offers a maximum power of 75 PS at 4000 rpm and a torque of 190 Nm at 2000 rpm. 1248 cc DDiS engine which is known for its performance and fuel efficiency. etc.3 L. boot lid opener. Maruti Suzuki Swift Wheels: Maruti Swift has a very elegant and stylish exterior with a variety of advanced features to attract a huge volume of crowd. The petrol version of Maruti Swift is packed with 1.experience to the driver. and VDI come in steel wheels whereas the variants like ZXI & ZDI is available in alloy wheels. The turbocharger and intercooler combination engine offers clear emission. This big sized tyre of Maruti Swift is very efficient . The DDiS engine which incorporates 5 Speed Manual Transmission offers greater performance and fuel economy. Some other comfort features are remote fuel lid opener. VXI. cigarette lighter. Maruti Swift variants such as LXI. VXI. antenna. Maruti Swift is available in two versions – Petrol and diesel. higher torque. The petrol engine meets with Bharat Stage IV emission norms that make the car more greener and eco-friendly. The high powered diesel engine is packed with 5 Step multi pint common rail fuel injection systems that offer better fuel combustion and optimized NVH. Both the version of Maruti Swift has variants with many different features attached to it. The diesel version of Maruti Swift is endowed with 1. The highly advanced K series engine of Maruti Swift offers great performance by delivering a power of 85 PS at 6000 rpm and a torque of 113 Nm at 4500 rpm. economical and offer tremendous performance. The inline type engine is packed with MPFI (Multi Point Fuel Injection) supply system that offers great fuel efficiency. LDI. The K 12 series engine is endowed with light weight DOHC (Double Over Head Camshaft) and 5 Speed Manual Transmission which helps in reducing friction and improving durability of engine with higher torque. Maruti Swift is available in 14 inches wheels for the extraordinary look of the car. The DOHC valve configuration helps in precise and quick valve operation. The alloy wheels make the look more sporty and robust. The K series engine is very silent and reduces vibration even at high speed which enhances the driving comfort and pleasure.
The availability of front and rear fog lamps in some variant of the car act as a safeguard against bad weather condition driving. The availability of Dual SRS Airbag in the car is a very important safety measure which helps in reducing the impact of collision and provides a cushioning effect in collision and jerk. The halogen headlamps promises clear visibility to the roads and reduce the danger henceforth. The collapsible steering wheel is also a great safeguard and minimizes the injury on impact. CD.e. double horn. WMA. This powerful braking system helps in de. The demister present in Maruti Swift makes a very clear vision for you even in the worst weather conditions. The front brakes of Maruti Swift are Ventilated Disc brakes and the rear one's are drum type which are very efficient in case of unexpected surprises in the road. MP3.accelerating car when the car is moving at high speed. The steering mounted audio controls are added . FM/AM tuner and speaker in some variants of the car.roading and also helps in reducing the rate of skidding in slippery and watery roads. Some other safety measures are key not removed warning. high mounted stop lamp which is clearly visible. The car offers a very safe drive to its passengers. The ABS (Anti lock Braking System) available in Maruti Swift helps the prevention of wheel locking in case of sudden braking and also contributes to car’s stability. child lock. The Intelligent Computerized Anti Theft System assists you to track your crack and reduces the chances of unwelcome guests. side impact beams etc helps you drive tension free when kids are on with you. The booster assist and ventilated disc brakes come handy when you have to brake at a short distance. Maruti Suzuki Swift Stereo & Accessories: Maruti Swift is packed with Integrated Audio System i. The feature like ABS (Anti Lock Braking System) available in some variants of the car helps in preventing wheel lock up during panic braking. Maruti Swift is endowed with both active and passive safety features to safeguard you against the unexpected surprises that come in your way. one can drive Maruti Swift with great peace of mind. The seat belt with pretension limits the force in case of sudden braking and collision. Maruti Suzuki Swift Braking & Handling: Maruti cars are well known for its sound and dynamic braking system and so is Maruti Swift. Maruti Suzuki Swift Handling & Safety: Maruti Swift is a very safe car with many advanced safety features. Radio. The electronic brake force distribution allows distribution of braking force between the front and rear wheels. With the availability of array of advanced safeguards.in controlling the car in case of off.
Version Maruti Suzuki Swift LXi Maruti Suzuki Swift VXi Maruti Suzuki Swift LDi Maruti Suzuki Swift ZXi Maruti Suzuki Swift VDi Maruti Suzuki Swift ZDi PRICES AS PER SEPTEMBER 2011 Avg.308 Rs. 5.742 Rs.541 . 5.967 Rs.65. 4.311 Rs.255 Rs.49. This music system present in the car makes your journey very pleasant and enjoyable wherein you can listen to your favorite tunes while driving.41.70. 5.81. 6. 4.feature in the car that proves handy. Ex-Showroom Price Rs.26.
REPCO LTD. FENNER INDIA LTD. COIMBATORE o They manufacture Engine Bearings. CHENNAI o Leading manufacturer of Clutch Assemblies in India for the new vehicles.. COIMBATORE o Automotive instruments & speedometer cables in India. Bushes and Thrust Washers. PUNE o Manufacturers of complete brake systems for automotive applications LUMAX INDUSTRIES LTD o Biggest manufacturers of Automotive Lights in India PRICOL LTD.P. I. AMALGAMATION VALEO CLUTCH LTD.. CHENNAI o A member of Amalgamations Group.. Manufacturing Flywheel Ring Gears for entire range of vehicle KALYANI BRAKES LTD.LIST OF SUPPLIERS Maruti Suzuki has 200-odd vendors BIMETAL BEARINGS LTD. CHENNAI generation Largest manufacturer of Belts and Oil Seals in India .
finance. Forecasting is of special importance in industries.1Consumer Expectations Consumers are frequently interviewed with the help of questionnaires concerning their buying habits. 1. The business world knows two types of sales forecasting methods and they are subjective methods and objective methods. Methods of demand/sales forecasting 1. The consumer feedback is used to estimate the expected consumption or purchases of the product. purchasing and marketing units. Top management unit allocates resources among functional areas and to control operations inside and outside of the company by using the sales forecast. The meaning of sales forecasting grows as firms start to coordinate their own business in a world wide scale. These factors are then ranked in order of importance and each of them in turn is analyzed to reveal future trends. Purchasing unit uses it to plan how much materials the company needs and in which part of the year/month/week or even day. production. Human resource units use the sales forecasting (to plan personnel requirements and also as an input in collective bargaining). and for what exactly the sales forecasting will be used. The science of forecasting helps firms to take strategic decisions to achieve their goals. where important strategic decisions need to be taken to optimize the efficiency of the resources and hence maximize the profits. Production uses it to decide how much the company has to produce and in what time and to control inventories. sales force composite. and to establish operating budgets. all of them have advantages and disadvantages. Qualitative methods of forecasting are: consumer expectations. Marketing units of firms find sales forecasting very useful (to plan marketing and sales programs and to allocate resources among the various marketing activities). motives and intentions. Thus. This has led to development of various new tools and methods for forecasting in the last two decades. human resources. Therefore. forecasting implies predicting the future after studying and analysing the past and present data. jury of executive opinion and Delphi technique. previous sales data. The company’s finance unit uses the sales forecasting to decide on capital appropriation.DEMAND/SALES FORECASTING Forecasting is a science of predicting the future by analyzing the previous data. Qualitative Methods Qualitative Forecasts consider the range of factors which influence the demand. This method has following advantages: . The forecasting of sales is one of the most important information tools for every management. In a company lot of units use the sales forecast for example top management. Usually decision makers use one or another forecasting method and their decision will depend on technical knowledge. to project cash flows. there is a need for precision in the demand forecasts.
Also a summary of the spread of estimates is put into the summary. Advantages of this forecasting method are: • The method gives the best understanding of consumers’ reaction to the product. • Practical for forecasting new-products. The summary lists the median of each forecast figure. 1. The forecast is made with the available knowledge the person has. They study the summary and make a new forecast. Delphi is based on iterative approach and it uses anonymous repeated feedback. The explanation is added into the summary and the summary is given to all the participants of the forecast. Usually companies do this test for a new or improved version of an old product. . • Works well with business to business goods. These have also been called explicit. then the person gives an explanation why she or he made such and estimate. These methods usually rely on quantitative analytical approaches in developing the forecast. • Information about projected product can be very detailed. • Insights give assistance in planning the market strategy. Disadvantages of this sales forecasting method are: • Company has to choose potential customers carefully and the number of customers has to be small.2 Delphi technique If a more accurate forecast is wanted from a group of experts and the effects of group dynamics has to be controlled. time and labour. 2. • Depends on how precisely the users make their evaluations. they have been specified so well that other researchers can replicate them and obtain the same forecasts. Ideally. These steps are repeated several times in the idea that repeated measurements will lessen the range of estimates and they will come together to a correct or true answer.1 Market test Company does the market test by placing a product in a few representative geographic areas to understand how well it performs and then projecting that experience to the whole market. then a good technique to use is Delphi technique. The advantages of Delphi are: • The effects of group dynamics is reduced • Statistical information can be used The disadvantages are: • Can take a long time and is money consuming 2 Objective methods Objective methods are those that use well-specified processes to analyze the data. statistical or formal methods. The people involved in the feedback give their own forecast about the subject and the feedbacks are gathered into a summary. If someone answer differs a lot from the median. • Takes a lot of money. but not with consumer goods. • The method permits evaluation of the success of the total marketing program.• Forecast estimates straight from buyers.
The most easy assessment might use last year’s figures as the next year’s forecast.4 Exponential smoothing Exponential smoothing is a type of moving average. The number of observations included in the average is typically determined by trial and error. company might average the last two years’ sales. seasonal and random factors. cyclical. instead of weighing all observations equally in generating the forecast. the forecast is developed by applying each factor in turn to the historical data. The decomposition method attempts to isolate four separate portions of a time series: the trend. • Market tests takes lots of money and time. then this easy method cannot be used. Then the cyclical factor is estimated. it is possible to not care about the randomness of sales from one year to the other. The most recent observations contain the most information about what is likely to happen in the future. and they should logically be given more weight. 2. By using some kind of average of recent values. • Often takes a long time to measure the exact level of initial and repeat demand. The advantages are: . the last three years’ sales. The forecast would simply be the average that resulted. fundamental change in demand and what portion is due to seasonality in demand. In using the decomposition method. However. It is important to determine what portion of sales changes represents an overall. After the three components are isolated.5 Decomposition method The Decomposition method of sales forecasting is typically applied to monthly or quarterly data where seasonal pettern is evident and the manager wishes to forecast sales not only for the year but also for each period in the year. 2. 2. or any number of other periods. • Competitors start to do something about their products. Using this method can lead to large errors if there is much variation in sales from one year to the next. for good reason. exponential smoothing weighs the most recent observations heaviest. The disadvantages are: • Competitors of the company can easily find out what is going on. it remains constant. 2. Differing numbers of periods are tried. For example.• Has a good use for new and innovative products. and number of periods that produce the most accurate forecasts of the trial data is used to develop the forecast model. it considers the previous year’s sales to be the forecast for the next year. The difficulty and style of these analyses can differ extensively.3 Moving average Moving average is a quite simple method of sales forecasting. Once determined. but if the company is new or is a growing company. the analyst typically first determines the seasonal pattern and removes its impact to identify the trend. Time-series analysis makes a forecast for the future sales on the base of historical data.2 Time-series analysis A company can use different time-series analysis methods for forecasting sales.
or product life-cycle phase must be accurately assessed and included. Panel regressions are used when one wishes to explain differences across observations in a single period. but there are not enough observations in a single period to generate reliable results. • Technical skill and good judgement required. • Final forecast difficult to break down into individual territory estimates. limited. . seasonal.• Utilizes historical data. • Ignores planned marketing effort. Thus one or more cross sections from additional time periods are added to enlarge the sample.6 Panel Regression A regression which includes both cross sectional and time series data. cyclical. discrete. inexpencive. 2. Disadvantages are: • Not useful for new or innovative products. Panel regression methods may handle models in which the dependent variable is continuous. or based on counts. • Factors for trend. • Objective.
Osamu in an article writes that it subtly massaged their (Indian delegation's) egos and also convinced them about the sincerity of Suzuki's bid.land purchase at government prices for setting up the factory Gurgaon and reduced or removal of excise tariffs. . Osamu Suzuki. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota.CHOICE OF LOCATION A BRIEF HISTORY BEHIND CHOOSING GURGAON: Sanjay Gandhi owned the Maruti Technical Services Limited. Suzuki's bid was considered negligible. which ran into trouble and was liquidated. Suzuki in return received a lot of help from the government in such matters as import clearances for manufacturing equipment (against the wishes of the Indian machine tool industry then and its own socialistic ideology). This ensured that Suzuki conscientiously nursed Maruti Suzuki through its infancy to become one of its flagship ventures. Chairman and CEO of the company ensured that he was present in all the rounds of discussion. Nissan and Honda. the Indira Gandhi government assigned a delegation of Indian technocrats to hunt for a collaborator for the project. HELP BY THE GOVERNMENT : While the major companies were personally represented in the initial rounds of discussion. After the death of Sanjay Gandhi. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment.
india’s largest automobile manufacturer is now targeting the premium segment with their leatest model from suzuki’s stable. which is priced art a much higher tag of Rs. The analysts predict the price of this premium hatchback to start from rs. Delhi NCR is one of the major targeted markets and thus it might get the advantage of this policy. Cars having the price higher than 4 lakhs have to pay a 4% road tax.alloys(steel). They also help minimize the impact of growing input prices. they would quite likely force the competition to rethink their strategy. plastics and rubbers which go into the production of automobiles .5 lakh. The company is said to be studying the prospects of launching the base model of rs 4lakh price tag.COSTING METHOD AND COST REDUCTION TECHNIQUES Maruti is expected to take Hyundai heads on with the pricing of their upcoming maruti Suzuki swift car. the company continues to enter into long term contracts based on its projections of prices. After launching cars for the masses for since so many years . And if they indeed do take the chance of Suzuki swift at a considerable lower price than Hyundai Getz. VARIANT Swift LXi Swift VXi Swift VXi (ABS) NON . Conversely. if any. 4. 4 lakh. Both the companies are known for their value based offerings and Maruti with their extensive service network and brand reputation for making reliable cars should get the customers’ nod over their competition. Maruti Udyog limited’s commodity price risks relates to higher costs due to changes in prices of inputs such as ferro. This price range would practically rip apart Hyundai’s offering in Getz.METALLIC PRICE 416485 443924 464962 METALLIC PRICE 416485 443924 464962 . In a volatile commodity market where your company gives top priority to ensuring smooth availability of inputs. long term contracts are helpful. of a decline input prices. long term contracts dilute the benefits. non ferro alloys(allumunium). In order to multigate these risks. There is another advantage in doing so considering in the capital city of delhi NCR road tax on the sub 4 lakh priced cars is comparatively lower at 2%.
The Swift stood for a value for money product in the premium hatchback segment. Now with the new Swift in town. non Alloy. we have decided to do the same and see if the new Swift has the potential to take over the mantle. Another technique used by maruti Suzuki to reduce the cost of its products is through employee contribution. the company achieved savings of 707 million through 132804 employee suggestions. In the year 2008-09. Basically the Swift was the yardstick for the segment. In fact it is the consumer who always pitted the Swift against the competition. Each employee contributes to cost reduction through suggestions. Alloys & Climate control costs very close to the non ABS. . No climate control model(2nd top most model) So its still a lot bang for buck than Getz.VS With Current discounts a Fully loaded Swift with ABS. Maruti Suzuki took a challenge named challenge 50:30 for reducing cost where productivity was improved by 50% and cost was reduced by 30%.
however. it has a lot to do with when "You're the Fuel". offers the same design style as the old one. however. . As for the interiors.4. This move will give a push to the slowing down two wheelers market which has seen declining sales due to high interest rates. However. Small cars make 78% of the total car market in India and this reduction in the excise duty will increase in volumes for car makers like Maruti. the ARAI claimed figure is 18. the new Swift is also lighter. then again. In February 2006. Hyundai. ex-showroom delhi. With the first generation petrol motor being a naturally aspirated 1. We don't have the tested figures yet. why are we telling you this? What matters more is the tilt steering and height adjustable driver and passenger seats and the tachometer which runs standard across all models. but. the kick was good enough. Tata and Chevrolet.4. the government had reduced the excise duty on small cars from 24 percent to 16 percent and in February 2008 it has reduced the current 16 percent to 12 percent. But. With more manufacturers wanting to have the biggest slice in the hatchback segment for themselves. as the manufacturers plan to pass on the reduction on excise to the end user.Talk about the Swift and all you would find is a massive number owning or aspiring to own them. This move will also make India a hub for small cars. With a decent figure of 17.09 lakhs.5 kilometers to a liter and 85 PS of power. with nextgen technologies and manufacturers working on the more powerful while being more fuel efficient engines. the new kid on the block sure packed a punch. Not just was it an instant hit.22 lakhs. Going the green way. the KB12 gets a Variable Valve Timing making it more efficient. Its not only the good looks of the car. However. Maruti Suzuki had to do something more. the birth of the KB12 series engine took place. The LXi trim available for Rs. The first version of the Swift back in 2005 took the country by a storm. its responsive engine and cheap spares were good enough factors to take the country by a storm which it did. it became the ultimate hot hatchback with a decent feel at a really affordable price tag. longer and lighter by 20 kilos making it faster off the block. At Rs. Enter the new Swift. The budget also proposes to reduce 4 percent excise duty on two wheelers.3 liter motor. buses and chasis.3 liter mill. Car makers like Ford. the plastic quality is way better. Not only that.000. The good news for the small car buyers is that.6 kilometers to a liter. three wheelers. Not only has the Swift been a fun car to drive. Also. this time around. despite having the premiumness a hatchback should have. the LXi version was available with a 1. small details have been taken care of and it surely is way ahead of what the old one ever could be. they will get see price cuts up to Rs 16. it lacked some significant features which came up in the other models of different makes as the competition grew. Honda and Tata are not much happy as the price difference between small and big cars will increase much more. the budget also proposes to reduce excise duty on hybrid and electric cars.
The small cars from Maruti which are 800. the price cut on the newly launched i10 could be between Rs 12.000 and Rs 16. GM plans to refund the price difference to those who bought cars after February 11. Not only this.000.000 and Rs 14. While.Hyundai has announced that the price cut on Santro could be between Rs 12. Alto.500 to Rs 18. The prices of their small cars could decrease between Rs 7.000. while that on Getz would be between Rs 14. General Motors is also cutting he price of its small cars Spark and Aveo U-VA.000 and Rs 16.000. . Zen Estilo. Wagon R and Swift could see a drop from Rs 6.500 to Rs 14.000.000. Omni.
in contrast to perfect competition. quality. A firm making profits in the short run will nonetheless only break even in the long run because demand will decrease and average total cost will increase. including by using market power to generate profit. As MUI following monopolistically competitive market. it can raise its prices without losing all of its customers. In the long run. however. style. Technically. In monopolistic competition. The goods perform the same basic functions but have differences in qualities such as type. . and no business has total control over the market price. Monopolistically competitive markets have the following characteristics: There are many producers and many consumers in the market. Unlike perfect competition. There are six characteristics of monopolistic competition (MC): Product differentiation: MC firms sell products that have real or perceived non-price differences. The long-run characteristics of a monopolistically competitive market are almost the same as a perfectly competitive market.Type of competition: As per the research done by the marketing department. even in the complete absence of government intervention. So as MUI has been following the same so the price has been decided by the close competition prevailing in the present market. There are few barriers to entry and exit. Two differences between the two are that monopolistic competition produces heterogeneous products and monopolistic competition involves a great deal of non-price competition. the XED would be high. Models of monopolistic competition are often used to model industries. reputation. MC goods are best described as close but imperfect substitutes. it behaves like monopolies in the short run. because of brand loyalty. the type of completion faced is by the Maruti Suzuki Swift is monopolistic. monopolistic competition can fall into natural monopoly. however. However. other firms enter the market and the benefits of differentiation decrease with competition. This means in the long run. takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. a monopolistically competitive firm will make zero economic profit. This means that an individual firm's demand curve is downward sloping. In fact. Consumers perceive that there are non-price differences among the competitors' products. which has a perfectly elastic demand schedule. the firm maintains spare capacity. if consumer rationality/innovativeness is low and heuristics are preferred. This illustrates the amount of influence the firm has over the market. In practice. the cross price elasticity of demand between goods in such a market is positive. the market becomes more like a perfectly competitive one where firms cannot gain economic profit. which is based on subtle product differentiation. the differences are not so great as to eliminate other goods as substitutes. Producers have a degree of control over price.
An MC firm can raise it prices without losing all its customers. an MC firm has market power because it has relatively few competitors. In other words each firm feels free to set prices as if it were a monopoly rather than an oligopoly. and location that tend to distinguish them from each other. Market power means that the firm has control over the terms and conditions of exchange. The fact that there are "many firms" gives each MC firm the freedom to set prices without engaging in strategic decision making regarding the prices of other firms and each firm's actions have a negligible impact on the market. cars and SUVs and many variations even within these categories. motor cycles. A product group is a "collection of similar products". The firm can also lower prices without triggering a potentially ruinous price war with competitors. economies of scale and the degree of product differentiation. Market power: MC firms have some degree of market power. How many firms will an MC market structure support at market equilibrium? The answer depends on factors such as fixed costs. This assumption implies that there are low start up costs. For example. Rather. the fewer firms the market will support.appearance. The theory is that any action will have such a negligible effect on the overall market demand that an MC firm can act without fear of prompting heightened competition. a firm could cut prices and increase sales without fear that its actions will prompt retaliatory responses from competitors.the more the firm can separate itself from the pack . Yet there are many different types of motor vehicles such as motor scooters. those competitors do not engage in strategic decision making and the firms sells differentiated . For example. There are numerous firms waiting to enter the market each with its own "unique" product or in pursuit of positive profits and any firm unable to cover its costs can leave the market without incurring liquidation costs. Also the greater the degree of product differentiation . the basic function of motor vehicles is basically the same .the fewer firms there will be at market equilibrium. the higher the fixed costs. Independent decision making Maruti Udyog I independently set the terms of exchange for its product.to move people and objects from point A to B in reasonable comfort and safety. The source of an MC firm's market power is not barriers to entry since they are low. trucks. The firm gives no consideration to what effect its decision may have on competitors. Many firms There are many firms in each MC product group and many firms on the side lines prepared to enter the market. no sunk costs and no exit costs. For example. Free entry and exit: In the long run there is free entry and exit.
Large windows. So which one is it. For a PC firm this equilibrium condition occurs where the perfectly elastic demand curve equals minimum average cost. Market power also means that an MC firm faces a downward sloping demand curve. the MC firm's profit maximizing output is less than the output associated with minimum average cost. First. Inefficiency: There are two sources of inefficiency in the MC market structure. Just look at the Swift’s blacked-out A-pillar and fighter-jet-like tapering window line to understand what we are talking about. That was then. Problem is. The mono-volume design of the Jazz and its large glass area make it look more mini-MPV than traditional hatchback.product. The downside. thanks to the extreme cab-forward design and brilliant packaging. Since the MC firm's demand curve is downward sloping this means that the firm will be charging a price that exceeds marginal costs. Thus in the long run the demand curve will be tangent to the long run average cost curve at a point to the left of its minimum. a good seating position and a great view out make it agile and easy . look at me: The good thing is that both the cars have far from ordinary designs. The monopoly power possessed by an MC firm means that at its profit maximizing level of production there will be a net loss of consumer (and producer) surplus. Today however. is that it looks too much like the old Swift. at its optimum output the firm charges a price that exceeds marginal costs. The second source of inefficiency is the fact that MC firms operate with excess capacity. this car just doesn’t have the same sex appeal as the Swift. Now here is the comparative analysis of Maruti Suzuki Swift with Honda Jazz The Jazz had it all. The demand curve is highly elastic although not "flat". Space Vs Funk: The Jazz is BIG on the inside.The new competitor for the Maruti Suzuki Swift in the market is Honda Jazz which hit the road very recently and making decent profits in the auto industry. A MC firm’s demand curve is not flat but is downward sloping. The result is excess capacity. a very sporty rear and a wide. brilliant Jazz or amazing Swift? Look at me. However. Bigger headlights. despite some fresh detailing like those smart triangular headlights and interesting creases on the tail section. squat stance mean this car has attitude written all over it. Honda broke the cardinal rule for pricing and the Jazz found too few takers when it was launched at a saloon car price. the new Swift is substantially better than the car it replaced. so many don’t even take notice of it. it sits bang in Suzuki Swift territory. The MC firm maximizes profits where MR = MC. Both a PC and MC firm will operate at a point where demand or price equals average cost. though. but it never sold as well as it could have. That is.
Driver seat comfort in the Swift is excellent – the bolstering and flat backrest provide ample support even when driving hard. Slip into the Swift and it’ll seem as if the world has shrunk.there is space aplenty here. The quality of plastics is a notch up from the last-generation car and the centre console looks similar to the Kizashi’s with everything neatly laid out. So the Jazz gets a tick mark from both regular as well as sporty buyers. So. But it’s a different story at the back. two of the best: Both cars feature 1. this rev-happy engine almost coerces you to hold gear for longer than you would otherwise. The asymmetrical fascia looks funky and works well. The snug interiors. The slick-shifting and very light gearbox coupled with the well-weighted clutch make negotiating traffic all the more easier.8bhp per tonne to the Jazz’s marginally less 84. Also.2-litre engines with the Jazz having a 3bhp edge in terms of outright power. there isn’t much to differentiate the two. A look at the back will reveal that rear passengers have seldom had it so good in a hatch . Switch the ignition on and the engine settles at a quiet idle. and because Honda has positioned the fuel tank in the centre of the car. with smart indents on their circumference.4bhp per tonne. a feature missing on the Jazz altogether – the Honda also uses a tacky slider-type recirculation switch. on paper. you can lift. The steering wheel is good to grip and the dials. do feel sportier. The new Swift’s K-Series engine gets variable valve timing and twin overhead camshafts while the Jazz engine features Honda’s single cam iVTEC system. headroom is an issue for taller passengers.to drive. Hold on beyond the 3000rpm mark and there is an almost magnetic pull of the tacho needle to the redline. Where the Jazz totally eclipses the Swift is in terms of storage and boot space. The lighter Swift. especially in the back.throttle responses are decent and in-gear acceleration is good too. though. split and even fold the back seat flat to give the Jazz station wagon-like practicality Motors. The driver’s seat in the top-end Jazz X has a height adjuster and comes adequately bolstered. so it’s very comfortable. With minimal vibrations to spoil the party. While the rear seat is comfy with nice under-thigh and back support and decent legroom. and the large knobs for the AC controls are easy to find and operate when on the move. after a stint in the airy Jazz. The Maruti feels a whole size smaller. has the better power-to-weight ratio of 86. the Swift’s dark plastics and small rear windows make you feel boxed in. Climate control comes standard on the top-end Swift ZXi variant. But how are they on the road? Let’s start with the Jazz. . part. In the city. though. look distinctive. Get going and you instantly note this is one special motor which simply loves to be revved.
the slightly more flexible and free-spirited nature of the Honda engine wins the Jazz this round. midsize car space and almost-MPV practicality. On the whole. Floor the throttle and progress is quick till about 2500rpm but power seems to taper off mildly till you acquaint the tacho needle with the redline. Bottom-end grunt is good but the mid-range feels slightly laboured compared to the older car’s. the steering feels a little inconsistent and isn’t as accurate as we’d have liked but on the fun-to-drive scale. delivers good economy and is priced sensibly too. Its steering does offer more feedback at city speeds but there is an inconsistency in the way it weights up when speeds increase. we found the Jazz unsettled over sharp bumps while the new Swift felt pliant and composed. The Jazz may lack the youthful appeal of the Swift and it may trail the Swift in maintenance costs. Yes. is fun to drive. Fun factor: Three rounds into this bout.Like the Jazz. the Swift’s super-refined motor is even smoother. Light at low speeds. The light clutch and smooth-shifting gearbox go well with this city-friendly nature of the car. It is only in the 40-100kph run in fourth gear that the Jazz is a full five seconds quicker than the Swift. Push hard and there is a fair amount of roll too. the Swift scores big time. its steering weights up quite nicely as the going gets faster. Driving over Mumbai’s monsoon-ravaged roads. The Jazz isn’t quite in the Swift’s league. A willing and stiff chassis means handling is sharp for the most part. Yet. much more pronounced than that exhibited by the stiffersprung Swift. Comparing acceleration times. In all other areas the . And grippier rubber would have worked wonders for the car’s handling and overall driving manners. The Jazz is a great car as well. On part-throttle responses though. And the winner is… The Maruti Swift is well styled both inside and out. But can the Jazz deliver the final knockout punch in terms of ride and handling? The answer is no. which is important. The old Swift was always a great car to drive and the new one improves things further. And where the Jazz engine is smooth. but just about. Interestingly. the Swift is actually better than the Jazz. Driving the cars back to back. with a clever amalgamation of small-car dimensions. the Swift is more fuel-efficient overall. but somehow the zesty nature of the older Swift is lost. its point-and-shoot nature making it a hit with us. the Swift engine is free-revving too. a helpful feature on Indian roads. we found the Swift needed fewer gear changes to keep up with traffic. the Jazz has the upper hand. the Jazz is faster than the Swift but only marginally so on most counts. the Swift has the better ride too.
And it is for this and this alone. the Shift wins this contest. .Shift is a genuine hop. skip and jump better than the Jazz.
demanding the reinstatement of 44 suspended colleagues who weren't taken back after a 33-day impasse with the management ended on Oct. 1. Problems facing by product (Swift) Distribution Problem Undeterred by ongoing stand-off with its workers at the Manesar plant. Two factories in northern India's Haryana state continues to be hit due to a strike by about 1. . in a clear indication that it does not hold the labor problems against the state.Problems in relation to prices. costs. Maruti is also in talks to set up a 1-million-unit plant in Gujarat in what would be its first factory outside Haryana. Maruti Suzuki India Ltd.. 1 and labor issues at a factory that supplies diesel engines and transmissions. Maruti produced 1. and the company has been forced to cut output at its Gurgaon plant due to lower supplies of diesel engines and transmissions from Suzuki Powertrain India Ltd.000 cars during the strike in Gurgaon.500 workers at its Manesar plant. There hasn't been any production at Maruti's Manesar factory for long time. down from 1. As a solution of this problem. Maruti Suzuki India expressed confidence that production constraints will have no impact on supplies for the festive season sales. That labor issue. competition Problems facing by firm Manesar Issue Suzuki owns more than 50% of the Indian car market. the car maker plans to set up a cluster of new ancillary units that will supply essential auto components and parts for its cars being produced at Maruti's Manesar plant. ended after permanent workers agreed to sign the bond on Oct. The current labor unrest follows Maruti's Aug. Maruti had refused to reinstate 44 of the 62 sacked workers as part of its agreement with the striking employees.800 cars.800 and compared with a normal daily production of 2. which caused a production loss of six billion rupees ($122 million) and affected output of three Maruti models. 29 decision to halt operations at Manesar after it asked 950 workers to sign a "good conduct bond" before they could enter the factory. However. distribution. which suffered its first worker’s strike in last 10 years at its Manesar unit in June.
As per the company the diesel Swift has a waiting period of six months while that of the petrol variant is between three to five months. also said it is all poised to normalize supply of the model after being affected by the labor issue at the plant.The company. Competition: Maruti Suzuki is having major competition with Hyundai as company. Toyota Etios Liva J Hyundai i10 Magna Hyundai i20 Magna Honda Brio E MT Nissan Micra XE Chevrolet Beat LS These are the competitors of Maruti Swift LXi. While talking about the product Maruti Swift. Factors affecting in this competition are as under. This indicates flow in distribution channel of the company. There are many competitors as well. But in reality waiting period of Swift is more than 10 months. Price Fuel Type Fuel Consumption Features . which has so far received bookings of 1. Some of the competitors are as follow. these are many competitor cars in market and Swift faces competition with other cars of Maruti Suzuki as well.08 lakh units for its new Swift.
There are very less problems in Maruti Swift but company did to improve in the field of distribution of the car.CONCLUSION By studying various demand and supply factors affecting the automobile industry we can conclude that an upturn or downturn in this sector is due to an aggregate effect of multiple factors.” . Maruti Suzuki India Limited entered the Guinness Book of World Records by bringing together 342 swift’s at a car parade in Gurgaon. These together govern the economies of automobile sector. “On 31 May 2010. Maruti Swift is one of the most successful car in market. In case of Maruti Suzuki.