COMPANY

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RESEARCH

MARUTI SUZUKI -
Marketing Analysis

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INTRODUCTION
 The first lot of Maruti Suzuki cars assembles in 1983.
 From the day the iconic Maruti 800 was launched in 1983, the company has
been spearheading a revolution of change
 Maruti Suzuki was the first company to launch 24 hours on road service in India
in 1996
 It was the first car company in India to open customer care center in India in
2000
 Maruti Udyog limited was named Maruti Suzuki India limited in 2007
 To improve driving experience and ensure a better future for the coming
generations, Maruti Suzuki believes in green technology.

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PRODUCT PORTFOLIO
The main product lines that Maruti Suzuki offers is Hatchbacks, Sedans, MUVs/ SUVs
and Vans.
Below are the different models and the year of their launch.
NAME YEAR OF LAUNCH

Gypsy 1985
WagonR 1999
Swift 2005
Dzire 2008
Alto K10 2010
EECO 2010
Alto 800 2012
Celerio 2014
Ciaz 2014
S-Cross 2015
Baleno 2015
Vitara Brezza 2016
Super Carry 2016
Ignis 2016
Ertiga 2018

SERVICES PROVIDED

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COMPETITORS AND THEIR MARKET SHARE
Chart Title

2.40% 1.20%
2.90%
2%
Maruti Suzuki India 51%

4.50% Hyundai Motor India 16.2%

Maindhra & Mahindra 7.3%

5.20%
Tata Motors 7%

Honda Cars India 5.2%

7.00%
51% Toyota Kirloskar 4.5%

Ford India 2.9%

7.30%
Renault India 2.4%

Nissan Motor India 1.2%

Others 2%

16.20%

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MARKETING STRATEGY
Maruti Suzuki India Ltd. is a leading manufacturer of four-wheelers in India. Born in 1983
with the mission to motorize India, Maruti was a joint venture between Government of
India and Suzuki Motor Corporation, Japan. It quickly grew into the largest compact car
making company of India and remained so till 2004. The company started with Suzuki
holding the minor stakes of the company while Government of India holding the major
stakes. As of present, Government of India has disinvested its stakes in the company
completely, and handed over the management of company to Suzuki Motor Corporation.
Today, Maruti and its partners employ more than 75,000 employees. Its manufacturing
facilities are located at two locations, Gurgaon and Manesar, both south of New Delhi.
The Company is increasing its engagement with customers to address the short-term
challenge of weak market demand. It is pursuing targeted marketing events to generate
enquiries and encourage customers to expedite vehicle purchase. Hyper-local marketing
techniques are being used extensively for customer engagement. Additionally, continual
product and technological support from the parent, SMC will help the Company in
launching new products and technology, thereby creating excitement in the market and
generating demand. These are few KRAs for marketing teams
 Network expansion
 Multiple sales and service channels
 Buying land parcels for sales and service outlets – better dealer viability & faster
expansion
 Expansion of warehouses and part distribution centers for quick availability of cars
and spare parts
 Enhancing the focus on digital marketing and target marketing techniques
 Use of data analytics for effective and efficient decision making
 Developing the export markets and increasing the share of exports
 Scaling up pre-owned car business
 Promoting the 3R principle and waste management techniques with a special
focus on water conservation in service workshops
 Capability building of sales and service personnel of channel partners
On sales network, the company is focusing both on urban and rural areas for future
growth. They are bringing in new dealers, investing in land parcels, which will be given to
dealers. Sales network expansion is as important as products. Brand positioning is the

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most important fundamental concept in a brand’s strategy. Brand positioning is also
linked with managing a brand’s meaning.

SEGMENTATION, TARGETING, POSITIONING

 Having the wide range of models in almost every segment of
the automobile market. Maruti Suzuki offers 16 brands and 150 variants spanning
across all segments consisting of Maruti 800, Maruti Zen EstiloMaruti Omni,
Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A Star, Maruti Wagon R, Maruti
Swift, Maruti SX4, Maruti Kizashi, Maruti Eeco, Maruti Ertiga, and Maruti Grand
Vitara. Thus serving the diverse range of
customers. Brand product strategy focuses on catering to the needs of almost all
the segments from the middle class to high class.
 MSIL positions itself on the features of price, comfort dimension, safety, mileage
etc. it follows a very effective multi-segment strategy to grab the different
segments of the market with different version of its brands. Research on the need
of the customer before launch helps Maruti to identify the target audience. It
understood the customers’ demography and psychology to position its car and
follows suggestions made by the customers.
 With cars in the economy segment, mid-range segment luxury and super premium
segment Target group for the brand includes anyone above 4 Lakh p.a.
salary, people looking to switch from 2-wheeler to 4-wheeler, millennial employed
as professionals and managers. The middle class, upper middle class, high class,
and Affluent class the age bracket of 21-65 years comprises of its target group.
MSI positions all its 16 brands in almost as many ways to serve different wants and
desires of consumers such as:
Alto– Let’s go- Positioned as India’s most fuel efficient car which can be
afforded by lower income groups as well.
Wagon R– Inspired Engineering- Positioned as a brand which goes well with
people who want to lead economic and interesting lifestyle, reflect
confidence and have the multifaceted personality.
Swift– You’re the fuel– Positioned as the car with style, modern looks, and
young attitude.

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 Swift Dzire– The heart car- Positioned as an entry-level sedan for the
aspirational class.
SX4– Men are Back– Positioned as the powerful car for men.
Ertiga– “A Feeling called LUV” – Life Utility Vehicle– Positioned as a compact
seven-seater, one which will have a small footprint and a tight turning
radius.
PROMOTIONAL STRATEGY
 Having decades of presence in India enables Maruti to leverage its brand value
and brand perception well. It also helps Maruti cut down on promotional costs.
Maruti uses unique advertising methods to promote its cars and often ropes in
stars and celebrities as brand ambassadors for various cars models.
 A 360 branding approach is followed in the promotional strategy of marketing mix
of Maruti.
 The ad campaigns often highlight the huge service network of the brand. Thus, this
summarizes the marketing mix of Maruti Suzuki. The company also organized
different promotional events to attract prospective consumers. Maruti also
offered special schemes for specific professional and income groups.
 They changed the tagline from ‘Count on Us’ to ‘Way of Life’. The earlier tag line
was based on reliability and affordability, but with ‘Way of Life’, their brand
positioning of being straightforward and value driven has been joined by
attributes of sporty and spirit to create more excitement.
 Maruti's advertising strategy focused both on promoting its cars and on building
up its corporate image. Maruti's campaigns emphasized different aspects of its
cars, including fuel efficiency, space, looks, etc. It also advertised its widespread
network and services.
 The ad campaign for the 'K' series engine was the first time that Maruti was
advertising specifically a technological innovation that it had pioneered. This
change in advertising strategy was probably because the company had decided to
put the new 'K' series engines into all its existing and new products. To begin with,
Maruti had the 'K' series engine only in its two new cars, A-Star and Ritz, and it had
also announced that it would incorporate the new engine in the Zen Estilo.
 Maruti uses a very distinctive promotional strategy to market its products. The
main emphasis is on the road safety measures. Advertisements are telecast in the

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 visual media and the print media such as televisions, radio, newspapers,
magazines, road shows, seminars and workshops. The famous actor R Madhavan
has acted in promotional campaigns for this company and has been its brand
ambassador. The advertising strategy of Maruti Suzuki has been distinctive and
informative. They have continued to touch the hearts of the consumers through
its products, services and even its promotional activities.The main tools used are:
 Above the line (ATL)
TV, Radio
Newspaper print ads (advertisements in newspapers by local dealers)
Advertisements in magazines
Publicity
 Below the line (BTL) Promotions
Corporate display activities
Exchange fair or Melas
Loan and Rural Fair
Personal Selling
Sales Promotion
DISTRIBUTION CHANNEL
 Maruti Suzuki India Limited has three manufacturing units in India and having
combined production capacity of 17, 62,000 Vehicles annually. It has strong dealer
network across India and has largest distribution and after sales service.
 MSIL has 1,820 sales outlets across 1,471 cities in India but the company aims to
increase it to 4,000 outlets by 2020. MSIL has 3,145 service stations across 1,506
cities throughout India and aims to touch 5,000 service stations by 2020.
 Maruti’s dealership network is larger than Hyundai, Mahindra, Honda, Tata,
Toyota and Ford combined. MSIL has 1,280 showrooms across 453 cities in India.
MSIL transport cars from manufacturing plant to different dealers point across
India through Car carrier (container).
 In August, 2016, government of India has experimented to send the cars through
ships to control the pollution but the experiment was not succeeded. And then
MSIL included train racks to transport the cars to decrease the pollution level.
 Maruti Suzuki selling its more expensive models through a separate network as
buyers, even first-timers, opts increasingly for larger cars example- nexa. Maruti is

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 trying to change the customer perception by offering NEXA premium showrooms
in which only premium Maruti cars will be showcased. The decision to create a
separate sales network may have been prompted by consumers choosing other
brands over Maruti when buying bigger cars as India’s largest car maker has been
traditionally associated with small cars since introducing the Maruti 800 in 1983.
 In order to monitor customers’ requirements in this digital era, the Company has
increased its efforts of social listening by investing in digital marketing. It is in a
position to understand the requirements of existing and prospective customers.
The Company continues to pursue its channel strategy by expanding both ARENA
and NEXA sales channels to enhance customers’ buying experience.
 In 2001, Maruti started an initiative known as “Non Stop Maruti Express Highway‘.
As a part of this initiative Maruti developed 255 customer service outlets along
with 21 highway routes by 2001-02. Also with an intention to provide fast service
in less time Maruti had offered Express Service Facility. In the year 2008, Maruti
had near about 2,500 rural dealer sales executives, among the total 15,000 dealer
sales executives. How is Maruti Suzuki’s channel strategy different from
competitors
JD OF A MARKETING EXECUTIVE
 monitoring and analyzing market trends
 studying competitors' products and services
 exploring ways of improving existing products and services, and increasing
profitability
 Identifying target markets and developing strategies to communicate with them.
JD OF A SALES AND DISTRIBUTION REPRESENTATIVE
 Sales(B to B and B to C)
 Acquisition of new clients
 Correspondence to request for quotation
 Acts as initial contact and liaison between customers
 Develop a long term written strategy (including cost accounting and Bills of
materials) with the corporate mandate and ensure the strategy is well
communicated to other sales members covering service accounts for alignment in
meeting objectives

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 Prepare professional reports , presentations and cost models to present his / her
customers

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OVERALL FORECAST OF MARKET TREND

 The Indian auto industry became the 4th largest in the world with sales
increasing 9.5 per cent year-on-year to 4.02 million units (excluding two
wheelers) in 2017. It was the 7th largest manufacturer of commercial vehicles in
2018.
 The two wheelers segment dominates the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of
the companies in exploring the rural markets further aided the growth of the
sector.
 India is also a prominent auto exporter and has strong export growth
expectations for the near future. Automobile exports grew 14.5 per cent during
FY 2019. It is expected to grow at a CAGR of 3.05 per cent during 2016-2026.

MARKET SIZE
 Overall domestic automobiles sales increased at 6.71 per cent CAGR between
FY13-19 with 26.27 million vehicles getting sold in FY19. Domestic automobile
production increased at 6.96 per cent CAGR between FY13-19 with 30.92 million
vehicles manufactured in the country in FY19
 In FY19, year-on-year growth in domestic sales among all the categories was
recorded in commercial vehicles at 17.55 per cent followed by 10.27 per cent
year-on-year growth in the sales of three-wheelers.

INVESTMENTS
 Some of the recent/planned investments and developments in the automobile
sector in India are as follows:
 Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20
million) to launch 20-25 new models across various commercial vehicle
categories in 2018-19.
 Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also
announced to invest US$ 310 million in India.

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  Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to
20,000 units per year, highest for any luxury car manufacturing in India.
 As of October 2018, Honda Motors Company is planning to set up its third
factory in India for launching hybrid and electric vehicles with the cost of Rs
9,200 crore (US$ 1.31 billion), its largest investment in India so far.
 In November 2018, Mahindra Electric Mobility opened its electric technology
manufacturing hub in Bangalore with an investment of Rs 100 crore (US$ 14.25
million) which will increase its annual manufacturing capacity to 25,000 units.

GOVERNMENT INITIATIVES
 The Government of India encourages foreign investment in the automobile
sector and allows 100 per cent FDI under the automatic route.
 Some of the recent initiatives taken by the Government of India are -
 The government aims to develop India as a global manufacturing Centre and an
R&D hub.
 Under NATRIP, the Government of India is planning to set up R&D Centre at a
total cost of US$ 388.5 million to enable the industry to be on par with global
standards
 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in
the country for introduction of electric vehicles (EVs) in their public transport
systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and
Electric Vehicles in India) scheme. The government will also set up incubation
center for start-ups working in electric vehicles space.
 In February 2019, the Government of India approved the FAME-II scheme with a
fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.

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FORECAST:
 The automobile industry is supported by various factors such as availability of
skilled labor at low cost, robust R&D center and low cost steel production. The
industry also provides great opportunities for investment and direct and indirect
employment to skilled and unskilled labor.
 Indian automotive industry (including component manufacturing) is expected to
reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are
expected to grow 9 per cent in 2018.
 References: Media Reports, Press Releases, Department of Industrial Policy and
Promotion (DIPP), Automotive Component Manufacturers Association of India
(ACMA), Society of Indian Automobile Manufacturers (SIAM), Union Budget
2015-16, Union Budget 2017-18
 Exchange Rate Used: INR 1 = US$ 0.0139 as of FY19

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