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ASSIGNMENT
OF
STRATEGIC MANAGEMENT

Topic: - About MARUTI SUZUKI

Submitted To: -Submitted By:-


Mrs. Ashita Chaddha Sukhwinder Singh
Roll no:-95512266684
MBA 4th SEM
 

c c   c  was established in February 1981, though the
actual production commenced in 1983 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- 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years out of date at that point.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 Suzukis are sold in India and various several other
countries, depending upon export orders. Models similar to Maruti Suzukis (but
not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and
manufactured in Pakistan and other South countries. The company annually
exports more than 50,000 cars and has an extremely large domestic market in India
selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest
selling compact car ever since it was launched in 1983. More than a million units
of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the
sales charts and Maruti Suzuki Swift is the largest selling in A2 segment. Maruti
Suzuki has been the leader of the Indian car market for over two decades.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar south
of Delhi. Maruti Suzuki¶s Gurgaon facility has an installed capacity of 350,000
units per annum. The Manesar facilities, launched in February 2007 comprise a
vehicle assembly plant with a capacity of 100,000 units per year and a Diesel
Engine plant with an annual capacity of 100,000 engines and transmissions.
Manesar and Gurgaon facilities have a combined capability to produce over
700,000 units annually.
More than half the cars sold in India are Maruti Suzuki cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of
Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on
the Bombay Stock Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported.
In all, over six million Maruti Suzuki cars are on Indian roads since the first car
was rolled out on 14 December 1983.
Maruti Suzuki offers 13 models, Maruti 800, Alto, WagonR, Estilo, A-
star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara. Swift, Swift
DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara is imported
from Japan as a completely built unit (CBU), remaining all models are
manufactured in Maruti Suzuki's Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and
compact cars for three decades. Suzuki¶s technical superiority lies in its ability to
pack power and performance into a compact, lightweight engine that is clean and
fuel efficient.
Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It
has been rated first in customer satisfaction among all car makers in India from
1999 to 2009 by J D Power Asia Pacific.

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The objectives of MUL then were:
Ac Modernization of the Indian AutomobileIndustry.
Ac Production of fuel-efficient vehicles to conservescarce resources.

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Ac The leader in the Indian automobile industries
Ac Creating customer delight and shareholders wealth
Ac A pride of India

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Ac Customer obsession
Ac Fast, flexible and first mover
Ac Innovation and creative
Ac Networking and partnership
Ac Openness and learning

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1.c800 (Launched 1983)


2.cOmni (Launched 1984)
3.cGypsy (Launched 1985)
4.cWagonR (Launched 2002)
5.cAlto (Launched 2000)
6.cSwift (Launched 2005)
7.cEstilo (Launched 2009)
8.cSX4 (Launched 2007)
9.cSwift DZire (Launched 2008)
10.cA-star (Launched 2008)
11.cRitz (Launched 2009)
12.cEeco (Launched 2010)
13.cAlto K10(Launched 2010)

& c
1.c Grand Vitara (Launched 2007)c
2.c Kizashi (Launched 2011)c

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1.c Zen (1993±2006)c
2.c Esteem (1994±2008)c
3.c Baleno (1999±2007)
4.c Zen Estilo (2006±2009)
5.c Versa (2001±2010)c
6.c Grand Vitara XL7 (2003±2007)c

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Ac Maruti was the first company in India which studied the consumer demand and
responded to it well.
Ac Market segmentation policy was adopted that targeted different type of
consumers with different type of models.
Ac Maruti800 targeted medium income group, while the deluxe model targeted rich
income group.
Ac Maruti van targeted businessmen and doctors(ambulance)
Ac The Gypsy targeted the paramilitary forces and the police.
Ac This resulted in complete control of maruti over the market.
Ac The company advertised its different products according to costumers e.g. -
maruti van was rechristened as Omni.
Ac A special cell was made to make direct dealing of Gypsy with the government
& the army.

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A wide dealership network allows the company to service customers over a wider
geographical area than competitors. Currently, MUL has 500 sales outlets that
cover 312 cities, as compared to 162 outlets of Hyundai Motors and 140 outlets of
Tata Motors.

Ac 
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MUL providing its customers an opportunity to resale their car to MUL or
exchange with a new Maruti car under its ³True Value´ network has proven really
beneficial. In FY07 True Value network touched 10000 units a month and more
than 90% of that resulted in the exchange of a new car.

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In a car manufacturing plant, the press shop, paint shop, engine and
transmissionassembly, and machine shop are used for manufacturing different
models. A presenceacross various segments ensures that the company retains its
existing customers byoffering them upgrades from its portfolio of models.
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Ac Advertisements targeting different segments
Ac Promotional offers throughout the years
Ac Psychographics is used :
Wagon-R: Smarter people (executives)
Omni: People who need to transport goods
Alto: Small car: small family
Zen Estillo: Young trendy people

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Ac Maruti has launched two luxury models SX4 in 2006 and A STAR in Nov
2008; these two models are facing intense competition from already established
companies. c
Ac Maruti has launched one another luxury model KIZASHI in 2011.c
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Ê  c Ò c
Oc Brand Image Oc Diseconomies to scale
Oc Reliable and cheap Oc No online presence
Oc Established brand in Indian market Oc Not diversified
Oc Experience in Indian market
Oc Very old player in Indian market and
First major player
Oc Established distribution & after sales
network Product for many segment of
market

m 
 c V c
Oc Acquisitions c Competition
Oc Innovation c Cheaper technology
Oc Online c External changes (government, politics,
Oc Product and services expansion taxes, etc.)
Oc Takeovers c Lower cost competitors or imports

Oc Targeting Higher Middle Classc Price wars


c Product substitution
requirements
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AcMagneti Marelli, Suzuki Motor Corporation, Japan and Maruti Suzuki India
enter into a joint venture:-

Magneti Marelli, Suzuki Motor Corporation and Maruti Suzuki India Limited
have signed an agreement for the creation of a joint venture in India, aimed at
the production of electronic control units (ECU) for diesel engines.
According to the agreement, Magneti Marelli will contribute 51% of the share
capital of the new company, Suzuki, 30% and Maruti, 19%.

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AcMaruti Suzuki is far behind in luxury and SUV car, the other player like GM,
TATA, Mahindra, Mitsubishi and Toyota are already established in the market,
so replacing them would not be easy.
Ac MUL has been now emphasizing consistently on its ³Best customer
satisfaction´ car to keep a psychological impact on costumers.