INDEX

CHAPTER PARTICULARS PAGE NO

1 INTRODUCTION 5-6
2 COMPANY PROFILE 7-8
3 OBJECTIVES OF PROJECT 9
5 PORTER’S FIVE FORCES MODEL 10

6 MARKETING STRATEGY 11-12

7 CONSUMER BEHAVIOR 13-15

8 MARKETING MIX 16-17

9 SEGMENTING TARGETING AND POSITIONING 18-21

10 PORTER’S FIVE MODEL FOR MARUTI SUZUKI 22-24

11 THREE GENERIC STRATEGIES 25-26

12 SWOT ANALYSIS 27-28

13 BCG MATRIX 29-31

14 RESEARCH METHODOLOGY 32-33

15 QUESTIONNAIRE 34
16 DATA ANALYSIS 35-36
17 CONCLUSION 37-42
18 SUGGESTIONS 43
BIBLIOGRAPHY 45

1
 CHAPTER 1- INTRODUCTION

INTRODUCTION OF CAR INDUSTRY IN INDIA

The Indian automobile sector is one of its most vibrant industries. The industry accounts for
22

Per cent of the country's manufacturing gross domestic product (GDP). It comprises
passenger

cars, two-wheelers, three-wheelers and commercial vehicles and is currently the seventh-
largest

in the world with an average annual production of 17.5 million vehicles, of which 2.3 million
are

Exported. The Indian auto market has the potential to dominate the global auto industry,
provided

A conducive environment is created for potential innovators to come up with new pilot
projects.

The next few years are projected to show solid but cautious growth due to improved

Affordability, rising incomes and untapped markets. All these open up an opportunity for

Automobile manufactures in India. In addition, with the government's backing and a special
focus

on exports of small cars, multi-utility vehicles (MUVs), two and three-wheelers and auto

components, the automotive sector's contribution to the GDP is expected to double, reaching
a

turnover of US$ 145 billion in 2016, according to the Automotive Mission Plan (AMP) 2006-

2
2017.

The automobile industry produced a total of 1,861,849 vehicles including passenger vehicles,

commercial vehicles, three-wheelers and two-wheelers in April 2014 as against 1,687,243 in

April 2013, registering a growth of 10.35 percent over the corresponding month of 2013. The

Growth is mostly attributed to the rise in two-wheeler production.

HISTORY OF AUTOMOBILE INDUSTRY IN INDIA

The first car on Indian roads ran in 1897. Until the 1930s, cars were imported directly, but in

Very small numbers.

An embryonic automotive industry emerged in India in the 1940s. Hindustan was launched in

1942, long time competitor Premier in 1944. They built GM and Fiat products respectively.

Mahindra & Mahindra was established by two brothers in 1945, and began assembly of Jeep
CJ-

3A utility vehicles. Following the independence, in 1947, the Government of India and the

private sector launched efforts to create an automotive component manufacturing industry to

Supply to the automobile industry. In 1953 an import substitution programmed was launched,
and

The import of fully built-up cars began to be impeded.

However, the growth was relatively slow in the 1950s and 1960s due to nationalization and
the

License raj which hampered the Indian private sector. Total restrictions for import of vehicles

were set and after 1970 the automotive industry started to grow, but the growth was mainly

3
Driven by tractors, commercial vehicles and scooters. Cars were still a major luxury item. In
the

1970s price controls were finally lifted, inserting a competitive element into the automobile

Market. By the 1980s, the automobile market was still dominated by Hindustan and Premier,

Who sold superannuated products in fairly limited numbers? During the eighties, a few

Competitors began to arrive on the scene.

To promote the auto industry the government started the Delhi Auto Expo which was had its

Debut showcasing in 1986. The Auto Expo of 1986 was a window for technology transfers

showing how the Indian Automotive Industry was absorbing new technologies and promoting

indigenous research and development for adapting these technologies for the rugged Indian

Conditions. The nine-day show was marked by then Prime Minister Rajiv Gandhi.

4
 CHAPTER-2 COMPANY PROFILE

MARUTI SUZUKI

Maruti Udyog Limited was established in February 1981, though the actual production

Commenced only in 1983. It started with 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 Hindustan

Ambassador and Premier Padmini. Originally, 74% of the company was owned by the Indian

Government and 26% by Suzuki of Japan. In May 2007, the government of India sold its

Complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.

HISTORY

Maruti's history begins in 1970, when a private limited company named 'Maruti technical

Services private limited' (MTSPL) is launched on November 16, 1970. The stated purpose of
this

company was to provide technical know-how for the design, manufacture and assembly of "a

Wholly indigenous motor car". In June 1971, a company called 'Maruti limited' was
incorporated

Under the Companies Act and Sanjay Gandhi became its first managing director. "Maruti

Limited" goes into liquidation in 1977. On 23 June 1980 Sanjay Gandhi dies when a private
test

5
Plane he was flying crashes. A year after his death, and at the behest of India Gandhi, the
Indian

Central government salvages Maruti Limited and starts looking for an active collaborator for
a

New company. Maruti Udyog Ltd is incorporated in the same year.

SUZUKI’S ENTRY

In 1982, a license & Joint Venture Agreement (JVA) is signed between Maruti Udyog Ltd.
and

Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed
market,

Maruti received the right to import 40,000 fully built-up Suzuki’s in the first two years, and
even

After that the early goal was to use only 33% indigenous parts. This upset the local
manufacturers

Considerably.

There were also some concerns that the Indian market was too small to absorb the

comparatively large production planned by Maruti Suzuki, with the government even

Considering adjusting the petrol tax and lowering the excise duty in order to boost sales.
Finally

Is India’s first affordable car. Initial product plan is 40% saloons, and 60% Maruti Van. Local

Production commences in December 1983. In 1984 the Maruti Van, with the same three-
cylinder

Engine as the 800, is released. Installed capacity of the plant in Gurgaon, reaches 40,000
units.

6
 CHAPTER 3- OBJECTIVES OF PROJECT

To provide an insight into marketing strategies.

This project will provide and insight into the detailed marketing strategy of Maruti Suzuki in
India. This project aims at studying the working and implementation of various strategies like
Brand positioning strategy, Promotional Strategy, Distribution strategy, Advertisement
Strategy, etc.

To study the behavior of consumers.

This project will provide a detailed study regarding the consumer behavior through a survey.
The survey will help in understanding the consumption pattern of consumers and also how
vast the consumer base of Maruti Suzuki is.

To study the marketing mix of Maruti Suzuki

Through this project the marketing mix of Maruti Suzuki can be studied. This project will
help in understanding the 4p’s of marketing of Maruti Suzuki namely Product, Price, Place
and Promotion.

To take a leap into studying the three Generic Strategies of Maruti Suzuki

With the help of this project we can study the three generic strategies which Maruti Suzuki
has implemented and which has played a major role in their success. They are Cost
leadership, Differentiation and Focus.

7
 CHAPTER 4- SCOPE

Study of consumer wants and needs: Goods are produced to satisfy consumer wants.
Therefore, study is done to identify consumer needs and wants.

Study of consumer behavior: This project performs study of consumer behavior. Analysis
can be helpful in segmentation and targeting.

Channels of distribution: Study regarding the selection of most appropriate channel of

distribution like wholesaling, distribution and retailing.

Pricing Study: This project performs the study of pricing policies or strategies of Maruti
Suzuki.

After sale service: This project performs the study of after sale services provided by Maruti
Suzuki through a survey.

8
 CHAPTER-5 PORTERS FIVE FORCES MODEL

PORTER FIVE FORCES MODEL IN THE INDIAN AUTOMOBILE

INDUSTRY.

Market Strength of Consumers:

Increasing
•Increases awareness among
Consumers have raised expectations.
Threat from New Players: Increasing
1) Most of the major global players are present
in the

Thus, the ability to innovate Indian Market; a few more are expected to enter.

(technology being the enabler) is 2) Financial strength assumes importance as high

Critical. Investments are required for building capacity.

 3) Access to distribution network is important.

•Product Differentiation via new Although important for all segments, having a

features, improved performance and Distribution network in rural areas is vital for
two-wheeler makers.
After sales support is critical.
4) Lower tariffs in the post-World Trade

Organization
•Increases competitive intensity has
era may expose Indian companies to threat of
limited the pricing power of
imports (however, the threat may be mitigated by
Manufacturers.
non-tariff barriers that may still exist

9
 Rivalry within the
Market Strength
Industry: High
of


Suppliers: Low

•There is keen

1) A large number competition in select

of segments (such as the

automotive Compact and Mid-size

component
segments in passenger
suppliers are
present cars, and the
motorcycle
in the Indian
Segment in two
Automotive wheelers).
industry.


•New multinational
2) Automotive
players players may enter

are rationalizing
Threat from Substitutes:
them
Low-Medium
vendor base to
achieve •With consumer preferences changing, inter product

consistency in substitution is taking place (scooters

quality
are being replaced by motorcycles, and Mini

Cars by Compact Mid-size cars.

10
 CHAPTER 6- MARKETING STRATEGY

MARKETING STRATEGY OF MARUTI SUZIKI LTD:

In earlier days when the market was dominated by only few brands like Ambassador &
Premier

Padmini, Maruti Suzuki India Limited entered the Indian market with different strategy. The

Strategy of the company was to offer a compact, modern and fuel-efficient car. Maruti
released

its first Maruti 800 car on 14 December 1983 to fulfill the dreams of Indian customers and

Became the market leader. Since 1983 till date Maruti Suzuki gradually offered several
choices

To the consumer. Due to aggressive competitors today Maruti Suzuki believes in Innovative

Marketing Strategies. With the changing needs, wants & requirements of customers and
markets,

Maruti Suzuki is altering their Brand Positioning, Advertising and Distribution strategy.

BRAND POSITIONING STRATEGY:

Brand Positioning is the most vital concept in a brand‘s strategy. Brand Positioning is also
linked

with managing a brand ‘s meaning. Today several brands of cars are positioning themselves
on the

11
Features like Price, Comfort dimensions, Safety, Mileage etc. Currently Maruti Suzuki
followed a

very effective multi-segmentation strategy to grab the different segments of the market with

Different versions of its brands. About brand positioning Mayank Pareek says that, Maruti
Suzuki

believe in research and before launching a product the Maruti team does an extensive
research on

The needs of the customer. Maruti try to understand the customer‘s demography and
psychology

To position a brand. Also, the company follows the suggestions made by existing customers.

PROMOTIONAL STRATEGY:

Every company is it big or small needs an innovative promotional strategy because

Promotional campaigns tend to have a huge effect on the reception of the product. Maruti
Suzuki

India Ltd has a formidable line-up of vehicles in its stable and has been quite aggressive
about

Promoting each of its automobile brands. With an intention to face with cutthroat competition

and due to declining market shares, in 2000 Maruti Suzuki cut the prices of few models like

Wagon R, Omni and Maruti 800 because Maruti knew very well that the Indian consumer is
very

Sensitive about price & this price cut will definitely beneficial for company. In Jan 2002 to

attract the customers, Maruti decided that some of its corporate assets in Delhi including

Promote road safety and efficient driving the company held ‘carnivals’ periodically at IDTR.

12
In 2003, to attract the customers Maruti Suzuki launched attractive campaign like ―Change

You’re Life‖. The company also offered vehicle insurance for One rupee only. In this
campaign the

customers were asked to write down the chassis and engine number of their vehicles on the
entry

Form and had to answer the question. In this contest the winners were chosen by a draw of
lots

And were entitled to gifts worth Rs.50 million.

In 2004, Maruti introduced the ‘2599’ offer under which by paying an EMI of Rs. 2599 for

Seven years after a down payment of Rs.40000, a consumer could buy a Maruti 800. In 2004

Maruti introduced the ‘Teacher Plus’ scheme, in a tie up with SBI. In this scheme the bank

Offered reduced rates of interest for teachers who were interested in buying a new car.

ADVERTISING STRATEGY:

Advertising is one aspect of brand building. Whenever Maruti launched any brand, it
supported

That brand with an ad campaign. Maruti ‘s advertising campaigns included TVCs, Radio and
Print

Ads, Point of Sale, Mobile promotions, online marketing, Outdoor promotions. Maruti ‘s

Advertising strategy focused both on building up its corporate image and promoting its cars.
Maruti ‘s campaigns emphasized different aspects of its cars, including fuel efficiency, looks,
space, etc. While advertising related to Esteem,

Baleno was handled by Lowe India and the ad campaign of Gypsy, Omni

And Wagon-R was handled by Reinfusion. With an intention to promote the all brands

13
Effectively, in 2000 Maruti decided to appoint Capital Advertising. In 2003, Maruti Suzuki
came

Up with an innovative advertising that became popular for its simplicity and clear message.
In

this ad one child plays with his toy car & when the father asked him, he replies, ‘Kya karoon

papa petrol khatam hi nahi hota’. This ad depicted the fuel efficiency of Maruti Suzuki.

DISTRIBUTION STRATEGY:

Distribution is an important marketing mix. In earlier days the consumers used to book for a
car

And wait for more than a year to actually buy it. Also, the concept of Show rooms was
nonexistent.

Even worse thing was the state of the after sales service. With an objective to change

This scenario & to offer better service to customers, Maruti took initiative. To gain
competitive

Advantage, Maruti Suzuki developed a unique distribution network. Presently the company
has a

sales network of 802 centers in 555 towns and cities, and provides service support to
customers

At 2740 workshops in over 1335 towns and cities.

The basic objective behind establishing the vast distribution network was to reach the
customers

Even in remote areas and deliver the products of the company. The company has formed the

Dealer territories and the concept of competition amongst these dealers have been brought
about.

14
Periodically corporate image campaigns in all dealership are carried out. In 2003, to increase
the

competition the company implemented a strategy for its dealers to increase their profitability

Levels. Special awards were sometimes given by company for sales of special categories.
Maruti

Suzuki had given an opportunity to dealers to make more profits from various avenues like
used

Car finance and insurance services. In 2001, Maruti started an initiative known as Non-Stop

Maruti Express Highway ‘. As a part of this initiative Maruti developed 255 customer
services

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.

15
CHAPTER 7 – CONSUMER BEHAVIOR

CONSUMER BEHAVIOUR

For any company it is important to know about the needs and requirements of their
customers. It

has been found that the most searched car in India is Maruti Suzuki and it sells more than half

The cars in India. Maruti Suzuki also enjoys 70 percent repeat buyer which in tune with its
claim

Of being consumer friendly.

There are several aspects that consumer look at with varying degree:

1. Price: People look for affordable price. They have their budget that they can spend on a

Car. For middle class and lower middle class Indian price is a very important factor.

Maruti has been successful in catering to their needs.

2. Mileage: Consumers look at mileage. In this scenario of rising petrol prices mileage

Becomes a very important characteristic. Fuel efficiency of car is demanded by all

Categories of buyers.

3. Brand Recognition and Association: Consumer likes to be associated with an

Established brands. It gives them a sense of security.

4. Durability and Warranty: A car is not purchased very often. Customers look for

16
Durability.

5. Appearance and Style: Car is status symbol for many customers. It’s a form of

Portraying their class and current financial condition. These customers give a lot of

Importance on the appearance and style. Relatively young customers look more for style

Than old ones.

6. Reliability and Trust: A brand should be associated with trust and reliability, only then
Market.

7. Availability: With the explosion of choices, products should be easily available

Otherwise prospective customers will shift to the competitors. Ease of availability can

Also bring competitors customers to our brand if they fail in this category.

8. Resale Value: People like to change cars after certain number of years which depends on

Several parameters. New car purchase is often accompanied by exchange of old car.

17
 CHAPTER 8 – MARKETING MIX

MARKETING MIX

The basic elements of marketing mix of a company are the 4 P’s (Product, Price, Place and

Promotion). The 4 P’s of marketing helps in determining the various marketing strategies

Adopted by the company.

PRODUCT:

Maruti Suzuki has divided its product line into five segments as per the following table.

Product Line Products

A2(Compact/Hatchback) Alto, Swift, Ritz Celerio
A3(Mid-Size) Swift, Dzire, SX4
Utility Vehicle Gypsy, Grand Vitara
Multi-Purpose Vehicle Omni, Eco

The cars have also been divided into its various variants depending on the type of fuel used.

Some cars have been rolled out for use with both petrol and diesel. With rising prices of
petrol,

There is a sharp demand for diesel-run vehicles. Also, Maruti Suzuki has two of its cars with

CNG fitting too. These are vehicles that run on CNG. Examples of CNG run cars are Alto
800,

Eeco, Wagon R, Celerio, Ertiga and SX4. By the year 2015, Maruti Suzuki is planning to
launch

An electric car by the name Swift Hybrid, which will be a hatchback car.

18
PRICE:

The prices of the cars of Maruti Suzuki have generally been set to target the lower middle
class

And middle-class families in India. Their pricing strategy is based on their continuing vision
of

“Putting India on Four Wheels”. Their prices are so designed as to enable people to upgrade

from 2-wheelers to 4-wheelers and already 4-wheeler owners to upgrade to a better 4-wheeler

Offered by the company.

In 2007, though the company changed its price strategy as it was being labeled as low-price

PLACE:

This is one part of the marketing mix where Maruti Suzuki has an advantage over all of its

Competitors due to their presence in the country for the longest time as compared to its rivals.

They enjoy a well distributed and an extensive network of car sale outlets, exclusive
showrooms,

Authorized service stations, true value outlets. Maruti Suzuki has two state-of-the-art

Manufacturing facilities setup in Gurgaon and Manesar to the south of Delhi. The combined

Capacity for the two plants is 1.2 million vehicles on an annual basis.

Some numbers showing the extensive network for Maruti Suzuki are:

•Showrooms and Car Sale Outlets - 933 covering 668 cities.

19
•Authorized Service Stations – 1845 covering 1395 cities.

•Dealership Outlets – 1101

•True Value Outlets – 353 covering 208 cities.

•Express Service Stations on Highways – 30

The True Value Outlets were started with a view to retain the customers under exchange

Programs enabling the customers to upgrade their existing car models. Later these outlets
were

converted to be a different vertical business unit of Maruti Suzuki Ltd. to capture the market
for

18

pre-owned cars in India based on the high resale value of Maruti Suzuki cars giving up to 70

Percent return on resale.

PROMOTION:

The company has for most of its years of operation targeted the Indian middle-class families
as

Their main consumers. That’s why their promotional strategy has always been to create an

Emotional connect with the audience. Maruti Suzuki Ltd. has used various media of
promotion.

• TV - There has been a lot of advertisements through this media as most of the target
audience connects to Maruti Suzuki through its emotional TV commercials company

Touches everyone irrespective of their demographics, age, occupation etc. There is always

an advantage when a connection is made with the audience through audio-visual means

20
As it is supposed to leave an ever-lasting impact on the consumers.

•Print Media – The Company has also used newspaper, magazines to promote its product

To the consumers.

•Radio – The Company also uses radio as an important media for advertising its product

Line. It sponsors certain shows on air, events for all radio listeners etc.

Apart from this, Maruti Suzuki Ltd. has also partnered with certain TV shows like “India’s
Got

Talent” and also provides sponsorships to certain famous events to make its presence felt.
The

company is also involved in certain CSR activities mostly around its manufacturing units to

Make people grow with the company. This all helps in creating a visibility and goodwill for
the

Company for the non-existing customers and hence, increasing the sales.

There are strategic alliances that Maruti Suzuki Ltd. has entered into with many banks,
insurance

firms to provide its customers with financing and insurance products for making the process
of

Purchase of car easier for them. Maruti Suzuki also provides its customers with an “Auto
Card”.

This is a loyalty program introduced by the company to retain the customers and to increase
the

Company’s brand loyalty. Under this program, every new customer gets initial brownie
points

Equal to 100 points on purchase of a car. Afterwards, on every purchase of Rs. 100 for any

Maruti Suzuki product (including car-servicing), customers earn 3 points. Moreover, they can

21
Earn 3000 points when they upgrade from one Maruti Suzuki car to another Maruti Suzuki
car.

On referrals they can earn up to 1000 points if the referral gets converted into a sale. The
Company also conducts mega complimentary car wash to its customers to improve customer
relations.

Maruti Suzuki Ltd. also has an extensive CRM program to manage its relationships with

Customers. Apart from all this, the company also has various seasonal campaigns to target
the

Audience like festival times to capture the celebration mood of people and convert it into
sales.

Festivals like Navratri, Diwali etc. are times when huge discounts or other gifts are offered by

The company.

22
 CHAPTER 9-

SEGMENTING, TARGETING AND

POSITIONING

SEGMENTING:

Based on the economic strata the Indian automobile consumer segment is divided in five

categories:

•Economy (priced less than 3 lakhs)

•Mid-Range (priced between 3-5 lakhs)

•Luxury (priced between 5-10 lakhs)

•Premium (priced between 10-20 lakhs)

•Super Premium (priced above 20 lakhs)

The economic segment caters to the need of the rural and the semi urban population, whereas
the

mid-range segment takes care to the needs of all three i.e. rural, semi urban and the urban

Population. The luxury segment takes care of the semi urban and the urban population and as

there are no cars of Maruti in the super premium segment so the needs of the affluent class
are not

Fulfilled.

23
TARGETING:

Maruti is segmented also on the basis of income groups present in the country i.e. the people

having an income of 3 lakhs per annum consider cars of economy range which are Alto and

Omni. People falling in the income range of 3-5 lakhs per annum consider the mid-range

Segment of Maruti cars which include A-Star, Swift and Ritz. The people with an income
more

than 5 lakhs per annum mainly consider cars in luxury and premium segment of Maruti cars
such

As SX4, Swift Dzire etc.

Maruti faces stiff competition from Chevrolet Beat, Tata India, Fiat Punto and Hyundai I10 in

The automobile sectors. Maruti provides all the basic features which are required in a car by a

Customer so it is clearly the market leader in the Indian automobile sector.

The following table shows us the comparison between the market share of Maruti Suzuki Ltd.

Compared with other automobile companies in India.

24
REPOSITIONING:

Since the demand of the Indian consumer has risen and also a stiff competition faced by
Maruti

in the car segment has forced Maruti to reposition some of its product and also to discontinue

Some products which were not making profits. Omni has been given a major facelift in terms

of interiors and exteriors and the new version called Omni Cargo was launched in the market
for the

People who wanted a car to travel and also carry the cargo carried by them.

Wagon- R was perceived as dull boxy car when it was lunched. Then further modifications
were

25
made in engine to increase performance and a facelift in the form of sporty looking grills on
the

Roof. Now it’s of the most successful models in Maruti. The production of Zen was stopped.

The most important result of the research of Maruti Suzuki was the innovation of the K-
Series

Engines. The company’s next generation, K- Series engines employ a plethora of state-of-the-
art

Technologies to deliver on all these fronts. These engines were said to be leaner, meaner and

Thinner than the rest of the engines used by the other companies. These engines were more
fuel

Efficient and swifter than the engines which Maruti Suzuki earlier used.

PHASING OUT OF CERTAIN MODELS:

Maruti Suzuki’s first sedan Esteem (formerly called Maruti 1000) was phased out slowly due
to

Availability of other cars with better features at the same price from its competitors stable. It
was

Soon replaced by Swift Dzire to gain back the lost market share.

The production of Baleno was stopped in 2011 to make way for a new model as part of the

Company’s strategy to bring new models to the market.

26
CHAPTER- 10 PORTERS FIVE MODEL

PORTER’S FIVE FORCE MODEL FOR MARUTI SUZUKI LTD:

Michael Porter identified five forces that determined the long run attractiveness of a business.

The following is the analysis of Porter’s five forces in context of Maruti Suzuki Ltd.

27
THREAT OF NEW ENTRANTS: INCREASING

Although most of the major global players are present in the Indian market, few more are

Expected to enter due to the welcoming government policies.

THREAT OF SUBSTITUTE: LOW TO MEDIUM

Maruti Suzuki faces threat from consumers shifting to hybrid or electric cars. Currently, the

Electric car market in India is dominated by sole player Reva Electric Car Company.
However

brands like Tata Motors, Chevrolet and Nissan are also planning to launch their electric car in
the

Future.

BARGAINING POWER OF SUPPLIER: LOW

Automakers are the key to the supply chain of the automotive industry. Maruti Suzuki has

manufacturing units where engines are manufactured and parts supplied by first tier suppliers

And second tier suppliers are assembled. There are a large number of automobile components

Suppliers whose switching cost are very high. Thus, reducing the bargaining power of the

Suppliers.

COMPETITIVE RIVALRY: HIGH

Competition in certain segments is very high e.g. small and mid-car segmenting. Brands like

Hyundai, Chevrolet, Tata and Skoda have given huge competition to Maruti Suzuki. In the
recent*****

28
Past Volkswagen, Honda, Ford has also given competition to the premium car segment.

BARGAINING POWER OF CONSUMERS: HIGH

Increase in consumer awareness and increasing competition has forced Maruti to either
reduce

the prices of its cars or provide extra services to the consumers at the same rate

29
CHAPTER – 11 THREE GENERIC STRATEGIES

THREE GENERIC STRATEGIES:

To cope up with the five competitive forces there are Three Generic Strategies Maruti Suzuki

Ltd. has applied.

1. To Achieve Cost Leadership: To realize economies of scale capital investment in state

of-

The-art equipment plant is required. Maruti Suzuki has set up two such manufacturing

Facilities in India.

30
•Gurgaon Facility (300 acres) housing the ‘K’ engine plant

•Manesar Facility (600 acres)

2. Differentiation: Maruti has created a difference in the market by providing the

Consumers with quality fuel efficient cars at affordable prices. It has also differentiated

itself from other companies by providing excellent after sale service at various service

centers across the country

3. Focus: Focus is the moderator between cost leadership and differentiation.

•Cost Focus: Maruti has tried to offer a low-price product to a small and

Specialized group of buyers. This has helped Maruti to cut down prices just hours

Before Tata introduced Indica.

•Differentiation Focus: Maruti has a niche of premium products available at a

Premium price. Maruti Kizashi and Maruti Vitara provides the possibility to

Charge a premium price for superior quality.

31
 CHAPTER 12 –SWOT ANALYSIS

STRENGTHS:

1. Bigger name in the market

2. Established distribution and after sales network

3. Understanding of the Indian market

4. Ability to design product with differentiating features

32
5. Brand image

6. Experience and know-how in technology

7. Trust of people

8. Maruti Suzuki is the market leader for more than a decade

9. Has a great dealership chain in the market

10. Better after sale service

11. Low maintenance cost of vehicle

WEAKNESS:

1. Lack of experience in foreign market

2. Comparatively new to electric or hybrid cars

3. People resistant to upper segment models

4. Heavy import tariff on fully built imported models

5. Exports are low

6. Lesser diesel models in the market compared to others

7. Global image not big

OPPURTUNITIES:

1. Increased purchasing power of Indian middle-class family

2. Government subsidies

3. Tax benefits

33
4. Prospective buyers from two-wheeler segment

5. Great opportunities to global with success of Swift and SX4

6. Introduction of more diesel models

7. Opportunity to grow bigger by entering into bigger car markets

8. Already a market leader which provides the opportunity to be at the top of the market in

Every stage of industry.

THREATS:

1. Foreign companies entering market, so a bigger threat from MNCs

2. Competition from second hand cars

3. Threats from Chinese manufacturers

4. Threat to market share as many big names are entering the industry

5. Lower number of diesel models

6. Lower cost competitors like Tata Nano.

34
 CHAPTER 13- BCG MATRIX

BCG MATRIX:

The BCG (Boston Consulting Group) model is a well-known portfolio management tool used
in

Product life cycle theory. BCG matrix is often used to prioritize which product within the

Company’s product mix gets more funding and attention.

35
The Stars is the scenario where there is the optimum situation of high growth and high share,
this

Method requires an increased investment due to the continuous growth. Maruti Suzuki

Swift is in this scenario.

The Cash Cow cycle deals with low growth and high share. This scenario requires a low

Investment and growth is also slow. Wagon R and Alto are under this scenario.

The Dogs method is the situation where the growth is low and the market share is low, this is
one

Of the worst situations. In this situation if the products are not delivering the cash then it is
best to

Liquidate. Omni and Versa belong to this segment.

The last part of the cycle is the Question Mark which high market growth is but low shares.
In

This situation there is a high demand but low returns. It is best to try and increase market
share or

Get it to deliver cash. SX4 and A Star belong to this scenario.

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 CHAPTER-14 RESEARCH METHODOLOGY
The study is an exercise involving estimation of parameters as regard to

Organizational Requirements- Research was designed so as to get the relevant information

that can be used for various organizational purposes.

Data Source:

Research included collecting both primary and secondary data.

PRIMARY DATA is the first-hand data, new data gathered to help solve the problem at
hand. Data is collected personally for the specific project through research. Questionnaire
was prepared to gather information on the company marketing and services

SECONDARY DATA is the second-hand data collected by someone else which is gathered
through the internet, publications, articles, company, books etc.

DATA COLLECTION:

The data collection method used was none other than survey method which is usually
incorporated for collection of raw information. The survey method is advantageous because it
helps to collect a great deal of information about an individual respondent.

Survey:

This type of survey undertaken was that of a sample type keeping in consideration the time
constraint and paraphimotic, besides the viability of census survey. The sample thus being
taken to the right path to reach the desired destination was carefully planned to convert of the
operation by using selected samples.

Sampling:

With the customer being unknown and given the time and resource constraints random
sample was obtained from different people.

37
 CHAPTER 15- QUESTIONNAIRE
CONSUMER FEEDBACK REGARDING MARKETING OF MARUTI
SUZUKI.

*Following data will be kept confidential and will be strictly used for
research purposes*

Q1) Age Group

•20-25

•25-30

•30-35

•35-40

•40-50

Q2) Gender

• Male

• Female

Q3) Are you aware of the brand Maruti Suzuki

•Yes

•No

38
Q4) From where did you come to know about the brand Maruti Suzuki?

•Newspapers

•TV

•Family or Friends

•Others

Q5) How influential do you find the marketing strategy of Maruti Suzuki?

1 2 3 4 5 6 7 8 9 10

• • • • • • • • • •

Q6) Which promotional media is influencing you?

•Broadcast

• Print

• Digital and interactive

• Social Media

Q7) Do you find their Marketing Misleading?

•Yes

•No

•Maybe

Q8) How often do you see the advertisements be it print, broadcast, digital or social media?

•Very often

•Often

•Seldom

39
 • Never

Q9) Would you rather influence your buying decisions solely on the marketing strategies of a
company?

•Yes

• No

• Maybe

Q10) Who do you think markets its products better than Maruti Suzuki?

• Honda

• Skoda

• Chevrolet

•Renault

• Fiat

• Volkswagen

• None

• Others

40
 CHAPTER 16- DATA ANALYSIS

The following Data will be interpreted for step by step analysis of each question

The following analysis is being conducted with help of 55 responses collected

Q1)

Age Group

5.5
10.9 20-25

7.3 25-30
30-35
7.3
35-40
69.1
40-50

Out of the 55 responses collected, 69.1 %(38) belong to the age group of 20-25, 7.3%(4)
belong to the age of 25-30, 7.3% (4) belong to the age group of 30-35, 10.9%(6) belong to the
age group of 35-40 and 5.5%(3) belong to the age group of 40-50. After studying each age
group, it was found that this age group finds the marketing strategy highly influential along
with the most influential medium being the broadcast and print medium.

41
Q2)

Gender

Female
50 50
Male

Out of the 55 responses recorded 50% were men and 50% were women. It was realized that
woman found the marketing strategies averagely influential where men found more than
influential with the best medium being print and broadcast.

Q3)

Are you aware about the brand Maruti

Suzuki
0

yes
no

100

All of the 55 respondents knew about Maruti Suzuki. Considering the market share and
consumer base of Maruti Suzuki the stats weren’t surprising

42
Q4)

From where did you come to know about

Maruti Suzuki

5.5

Newspaper
43.6
34.5 Tv
Family or Friends
others

16.4

Out of the 55 responses collected most of them happened to know about Maruti Suzuki
through TV and others. Other ay includes something like self-experience. A majority of
43.6% percent came to know through others and 34 through TV.

Newspapers helped a lot of 5.5% while family and friends helped the rest 16.4%.

43
Q5)

How influential do you find the

Marketing Strategies of Maruti Suzuki

1.8 0 1.8 1.8

3.6
9.1

14.5
21.8

16.5

29.1

Out of the 55 respondents, 1 found it least influential, 1 rated 3, 1 rated 4, 1 rated 5, 8 people
rated it 6, 9 people rated it 7, a majority of 16 people rated it 8, 12 people rated 9, and 5
people rated 10.

Q6)

Which promotional media is

influencing you?

Broadcast
1.8 1.8

Print

21.8 36.4 Digital and

interactive
Social Media
21.8
14.5 Self experience

None

From the reports collected it was clear that the medium which influences the most is
broadcast with 36.4 % people voting for broadcast, followed by 21.8 % for each Social media

44
and digital and interactive followed by Print which has 14.5 % votes. Rest 1.8 were either
none or self-experience.

Q7)

Do you find their Marketing

Misleading?

9.1 5.5

Yes
No
Maybe

85.5

From the reports collected it was realized that more than half of the people didn’t find the
advertisements fishy or misguiding. A majority of 85.5% voted No, whereas 9.1% voted
maybe followed by 5.5% voting yes. It was clear that their advertisements don’t seem to be
misleading

Q8)

45
 How often do you see the advertisements be
it print, broadcast, digital or social media?
1.8

23.6
32.7

very often

often
41.8 seldom

never

With the help of the survey it was noticed that people see the advertisements very often with
41.8% percent people voting for seeing the advertisements often, followed by 32.7% voting
for very often, later followed by 23.6% people voting for seldom.

Q9)

Would you rather influence your buying

decisions solely on the marketing
strategies of a company?

18.2
29.1
Yes
No
Maybe

52.7

The survey helped analyze that marketing strategies do not influence the buyers to go for a
particular company or product and other things are to be taken into consideration as well. As

46
many as 52.7 % people voted No, whereas 18.2 % voted yes with 29.1% voting for maybe.
While a majority of people think that their decision cannot be influenced few people think
that it can be.

Q10)

Who do you think markets it products

better than Maruti Suzuki

Honda
21.8 Skoda
25.5
Chevrolet
Renault
5.5
Fiat
5.5
Volkswagen
1.8 Hyundai
9.1
27.3
None

Majority of the people think that Volkswagen markets its products better than Maruti Suzuki
with 25.5 % people voting for the German Giant, followed by Honda who locked in 25.5%
with more than 21.8% people thinking no one markets it better than Maruti Suzuki, followed
by Renault, Skoda and Fiat with 9.1%, 5.5% and 5.5% respectively.

47
 CHAPTER 17-CONCLUSION
CONCLUSION:

Automobile market today is very dynamic & competitive with a range of players and
products.

There are many reasons for the impressive growth of the Indian passenger car Industry. Some
of

these are easy availability of vehicle finance, attractive rate of interest and convenient

Installments. In today ‘s cutthroat competition it is very difficult to survive. Stiff competition

has

Forced manufacturers to be innovative and responsive to customer demands and needs.

Maruti

Suzuki India Limited is a leading company in Indian Automobile sector which occupies

prominent place due to its innovative strategic marketing, promotional, Brand positioning,

Advertising strategies. In today ‘s scenario the success of company lies in structuring and

Restructuring the marketing strategies and continuous innovation of product and services.

The Maruti Suzuki has a huge market and has left no stone unturned to satisfy the customers.
It

Have models in every segment of the automobile market. Maruti Suzuki stands for value as
much

As it stands for performance. In spite of rising input costs, the company tries their best to
keep

Prices down. Their running costs and resale values are unbeatable too. Competitive strategy
of

this company facilitated healthy profit and customer satisfaction and its recognition as a

Company which stands for environmental concerns.

48
 CHAPTER 18- SUGGESTIONS

•Foreign companies entering market, so there is a bigger threat if Maruti

Suzuki doesn’t come up with the technological advancement. They lag behind
many of their MNC competitors in terms of technology and features provided.
On my personal observations I would like to suggest them that they should start
providing new features in every car possible. They don’t provide reverse assist
in many of their cars, which is necessity in a country like India.

•Lower number of diesel models is another problem with Maruti Suzuki. There
is no doubt about the fact that their cars are already fuel efficient, but a diesel
car is a necessity these days given the price of petrol and distance travelling.
There are many competitors in the market who provide diesel variants in every
model. I would like to suggest Maruti to Start Doing the same as diesel cars is a
necessity these days.

•Maruti Suzuki doesn’t have lower cost vehicles or a vehicle to compete with
Nano. This is the reason why they fall out completely in this segment. With
increasing amount of traffic people are going for smaller cars. I would like to
suggest Maruti to come up with a vehicle that can compete with Nano.

•When compared to the competitors, Maruti Suzuki has low quality interior
when compared to the cars falling in the same segment. You’ll see plastic build
on the dashboard in most of the budget cars. I would like them to suggest that
they should come up with a better interior build in terms of quality and design.

• Maruti Suzuki hasn’t proved itself in the SUV segment like other players.
The only SUV which is proving good for them is the Brezza Vitara which has
just been launched, but even then, that’s not enough to prove them a tough
player in this segment. I would like to suggest Maruti Suzuki to come up with
an SUV that will change their image in this segment completely.

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 BIBLIOGRAPHY

1) www.marutisuzuki.com

2) www.wikipedia.com

3) www.carwale.com

4) www.researchandmarkets.com

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