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Product Life Cycle of Maruti 800
Product Life Cycle of Maruti 800
REPORT ON
2017-2018
COURSE INSTRUCTOR
Mrs. Shilpa Arakeri
( Lecturer, Department Of Management Studies, SDMCET)
SUBMITED BY
Sagar Singh Rajput ( 2SD15MBA41 )
Rahul V Gulaganji ( 2SD15MBA32 )
Product Life Cycle
The idea that products, like people, have a birth, a life and a death, and that they
should be financed and marketed with this in mind.
This is the idea that products, like people, have a birth, a life and a death, and that
they should be financed and marketed with this in mind. Even as a new product is
being launched, its manufacturer should be preparing for the day when it has to be
killed off. Its sales and profits start at a low level, rise (it is hoped) to a high level
and then decline again to a low level. This cycle is sometimes referred to simply as
PLC.
Philip Kotler Breaks The Product Life Cycle Into 5 Distinct Phases
Stages Of Product Life Cycle
1 Product development. The phase when a company looks for a new product.
New products do not have to be “out-of-the-blue” new (like the video-cassette
recorder or the compact disc). They may be merely additions to existing product
lines (the first cigarette with a filter tip, for instance) or improvements to existing
products (a new whiter-than-white washing powder).
3 Growth. As the product begins to be accepted by the market, the company starts
to recoup the costs of the first two phases.
4 Maturity. By now the product is widely accepted and growth slows down.
Before long, however, a successful product in this phase will come under pressure
from competitors. The producer will have to start spending again in order to defend
the product's market position.
About Company
Maruti was established in February 1981, though the actual production commenced
only in 1983. It started with the Maruti 800, based on the Suzuki Alto kei
car which at the time was the only modern car available in India. Its only
competitors were the Hindustan Ambassador and Premier Padmini. Originally,
74% of the company was owned by the Indian government, and 26% by Suzuki of
Japan. As of May 2007, the government of India sold its complete share to Indian
financial institutions and no longer has any stake in Maruti Udyog.
About Maruti 800
Maruti 800 is a small city car that was manufactured by Maruti Suzuki in India
from 1983 to 18 January 2014. The first generation (SS80) was based on the
1979 Suzuki Fronte and had an 800 cc F8B engine, hence the moniker. Widely
regarded as the most influential automobile in India, about 2.87 million 800s were
produced during its course of which 2.66 million were sold in India itself.
With over 30 years of production, Maruti 800 remains the second longest
production car in India, next only to Hindustan Ambassador. It is Fondly called
as," The Car that put India on Wheels".
In the 1980s and early 1990s, the name "Maruti" was synonymous with the Maruti
800. It remained the best-selling car in India until 2004, when the Maruti Alto took
the title. It was also exported to a number of countries in South
Asia including Nepal, Bangladesh and Sri Lanka and was also available in
Morocco and selected European markets, sold as the Suzuki Maruti. In an
elaborate ceremony held in New Delhi on 14 December 1983, then Prime
Minister Indira Gandhi handed over keys of the very first car to Mr. Harpal Singh,
who won the ownership rights through a lucky draw. The original 800 was based
on the Suzuki Fronte SS80, but a modernized aerodynamic version using the body
of the second-generation Alto (SB308) was presented in late 1986. The
introduction of this car did revolutionize the automotive industry in India. Right
from its inception, it was considered as the first affordable people's car, the first
modern era front wheel drive and high speed contemporary vehicle. The delivery
was against bookings done directly with Maruti Udyog Limited (A Govt. of India
undertaking).
Steering
MARUTI 800 comes up with new features like , AC version and Music System
in the car. Sales increased by 852 units to 20,269 units and
reached up to 31,314 units. First export began in 1987. Sales soared from about
63,763 units to about 1,89,061 units in 1996.
Strategies adopted-
Partnership with State Bank Of India organized finance to small towns enable
people to buy cars in Rs.2599/- scheme
Due to heavy competition from competitors like Hyundai i10 and Chevrolet
Spark, sales of Maruti 800 was drastically decreased. The sales went down from
1,51,976 units in the year 2000 to about 69,553 in 2007,Buyers were attracted
to cheap small cars like NANO. In 2008-2009 experienced a drastic reduction
in sales. Major competitor Tata Motors launched Tata Nano, which was smaller
and yet offered more space than the Maruti 800, Sales are continued in semi
urban and rural areas till today ,Now in 2012 Maruti introduces ALTO 800 in
the place of Maruti 800 .
Repositioning The Product
After a drastically decline in the sales of Maruti 800 , MUL had repositioned
its product Maruti 800 with ALTO 800.
Now ALTO 800 is available in Indian market for the price of 2.5
lakhs(approx).