Professional Documents
Culture Documents
Submitted by
POSHITH GOWDA S
Reg. No: B2012233
Submitted by
POSHITH GOWDA S
Reg. No: B2012233
2022-2023
INTERNATIONAL INSTITUTE OF BUSINESS STUDIES
Muthugadahalli, Bangalore North, Jala Hobli, Bangalore- 562157.
INTERNATIONAL INSTITUTE OF BUSINESS STUDIES
Muthugadahalli, Bangalore North, Jala Hobli, Bangalore- 562157.
This study has not formed for the basis for the award of any other degree/ diploma
by Bangalore City University or any other university.
This is to Certify that, this report “Product strategy of maruti suzuki” is based
on an original study conducted by Poshith Gowda S Bearing Reg. No B2012233
of final year BBA under my guidance and supervision for the requirements of the
Bengaluru City University for the award of Degree in Bachelor of Business
Administration.
To the best of my knowledge and belief the matter presented in this report
is submitted for any Degree or Diploma of any University.
I hereby declare that this Internship report “Product strategy of maruti suzuki”
Submitted for the degree of Bachelor of Management incorporating Internship
work done by me in the Department of Management, Bengaluru city university,
under the guidance of ARCHITHA towards partial fulfilment in requirement of
the BBA course of Bengaluru City University, 2022 – 2023.
I further declare that this study has not been Submitted for Degree or
Diploma of any University.
4 REVIEW OF INTERNSHIP 9
8|Page
CHAPTER 1
COMPANY PROFILE
Maruti Suzuki India Limited (/Marut̪ i Suzuki/), commonly referred to as Maruti and
2012, it had a market share of 3percent of the Indian passenger car market. Maruti Suzuki
manufactures and sells a complete range of cars from the entry level Alto, to the hatchback
Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco,
Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.
1.1
Maruti suziki
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The company's headquarters are on Nelson Mandela Road, New Delhi. In February 2012, the
1.2
Headquarter
HISTORY
Originally, 18.28percent of the company was owned by the Indian government, and 54.2percent by
Suzuki of Japan. The BJP-led government held an initial public offering of 25percent of the company
in June 2003. As of May 200, the government of India sold its complete share to Indian financial
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 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
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produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries,
depending upon export orders. Models similar to those made by Maruti in India, albeit not assembled or
fully manufactured in India or Japan are sold by Pak Suzuki Motors in Pakistan.
The company exports more than 50,000 cars annually and has domestic sales of 30,000 cars annually.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar in Haryana, south of
Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of 900,000 units per annum. The
Manesar facilities, launched in February 200 comprise a vehicle assembly plant with a capacity of
550,000 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 14, 50,000
units annually.
About 35percent of all cars sold in India are made by Maruti. The company is 54.2percent owned by the
Japanese multinational Suzuki Motor Corporation 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 of
India.
During 200 and 2008, Maruti Suzuki sold 64,842 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.
BEGINNINGS
Maruti's history begins in 190, when a private limited company named 'Maruti technical services private
limited' (MTSPL) is launched on November 16, 190. 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 191, a company called 'Maruti limited' was incorporated under the Companies Act and Sanjay
Gandhi became its first managing director. After a series of scandals, "Maruti Limited" goes into
liquidation in 19. This is followed by a commission of inquiry headed by Justice A. C. Gupta, which
submits its report in 198. On 23 June 1980 Sanjay Gandhi dies when a private test plane
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he was flying crashes. A year after his death, and at the behest of Indira Gandhi, the Indian Central
government salvages Maruti Limited and starts looking for an active collaborator for a new company:
SUZUKI ENTERS
In 1982, a license and 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 Suzukis in the first two years, and even after that the
early goal was to use only 33percent 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, in 1983, the Maruti 800 is released. This
96 cc hatchback is based on the SS80 Suzuki Alto and is India’s first affordable car. Initial product plan
is 40percent saloons, and 60percent 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
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1.3
Suzuki Alto
In 1985 the Suzuki SJ410-based Gypsy, a 90 cc 4WD off-road vehicle, is launched. In 1986 the original
800 is replaced by an all-new model of the 96 cc hatchback Suzuki Alto/Fronte. This is also when the
100,000th vehicle is produced by the company. In 198 follows the company's first export to the West,
when a lot of 500 cars were sent to Hungary. Maruti products had been exported to certain neighboring
countries already. By 1988, the capacity of the Gurgaon plant is increased to 100,000 units per annum.
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PRODUCT & SERVICES
Current automobiles
India's Corps of Military Police personnel patrolling the Wagah border crossing in
the Punjab in a Maruti Gypsy.
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Suzuki SX4 Maruti Suzuki A-Star
1. 800 (1983) (still distributed to some cities like Guwahati) Competes with Tata Nano,
2. Omni (launched 1984) Competes with Tata Nano, Tata Venture, Maruti 800 and Maruti
Eeco
3. Gypsy King (launched 1985) India's first indegenious vehicle and first compact SAV,
competes with Mahindra Thar CRDe, Tata Sumo 4x4 and Force Gurkha
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4. WagonR (launched 1999) Competes with Nissan Micra Active, Maruti A-star andHyundai
i10
5. Swift (launched 2005) Created a Maruti 800 rivalling benchmark, competes with Tata
Vista, Hyundai i20, Skoda Fabia, Volkswagen Polo and Toyota Etios Liva
6. SX4 (launched 200) Soon to be replaced by the upcoming sedan codenamed YL1, competes
with Ford Fiesta, Hyundai Verna, Honda City, Skoda Rapid, Volkswagen Vento, Renault
7. Swift DZire (launched 2008) Competes with Mahindra Verito, Toyota Etios, Ford Classic,
Mahindra Verito Vibe, Honda Amaze, Chevrolet Sail, Skoda Fabia and Tata Manza
8. A-star (launched 2008) Competes with Chevrolet Beat, Nissan Micra Active, Ford Figo
9. Ritz (launched 2009) Competes with Maruti Swift, Tata Vista, Hyundai Grand i10, Honda
10. Eeco (launched 2010) Stripped down Versa with a lowered roof, in competition with Tata
11. Alto K10 (launched 2010), competes in the economy class with the Tata Indica, Hindustan
12. Maruti Ertiga (launched 2012), seven seater MPV R3 designed and developed in India, in
competition with Toyota Innova, Mahindra Xylo, Nissan Evalia, Ashok Leyland Stile and
Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in
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Completely Knock Down car.
13. Maruti XA Alpha based compact SUV to compete with the Ford EcoSport, Mahindra Xylo
Quanto, Nissan Terrano & Renault Duster will be launched in the year 2014
14. Maruti Alto 800, launched in 2012, Competes with Tata Nano
15. Maruti Stingray, launched in 2013, Competes with Maruti A-star, Chevrolet Beat and
Discontinued automobiles
1. Gypsy E (1985–2000)
2. 1000 (1990–2000)
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7. Versa (2001–2010) Replaced by the Eeco
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CHAPTER 2
Maruti Suzuki India Ltd. is a leading manufacturer of four-wheelers in India. Born in 1983 with
the mission to motorise India, Maruti was a joint venture between Government of India and
Suzuki Motor Corporation, Japan. It quickly grew into the largest compact car makingcompany
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 handedover the
management of company to Suzuki Motor Corporation. Today, Maruti and its partnersemploy
more than 5,000 employees. Its manufacturing facilities are located at two locations, Gurgaon
PRODUCT STRATEGY
Product is anything that can satisfy human needs and wants. The product is a combination of
tangible and intangible aspects of the products offered by the manufacturer to the customers. It
customers at a point of time. The product strategy of Maruti is that its focus is on catering the
needs of almost all the segments. Maruti Suzuki offers 16 brands consisting of Maruti 800,
MarutiOmni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A Star, Maruti Wagon R,
Maruti Zen Estilo, Maruti Swift, Maruti SX4, Maruti Kizashi, Maruti Eeco, Maruti Ertiga,
Maruti Grand Vitara and 150 variants spanning across all segments. Thus company creates
products that are unique and valued and it is attaining advantage either through differentiation
via new features, improved performance, after sales service or through cost leadership.
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PRICING STRATEGY
The price is the amount a customer pays for the product. It is fixed after considering various
factors such as market share, competition, material costs, product identity and the customer's
perceived value of the product. The business may increase or decrease the price of product if
other stores have the same product. The price decision is very sensitive and for that special care
is to be taken to get the competitive edge. There are various factors to determine a price of a
car, such as market condition, cost incurred to build a car, profit by company, dealer profit.
The company’s pricing strategies are such that every customer can own a car or upgrade to
another one of his or her choice. The company offered a different model at a price difference
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16, 52, 85 - 1, 52, 85
Maruti Kizashi
DISTRIBUTION STRATEGY
that specifies how the firm wishes to transfer its products to intermediaries, retailers and end
consumers. Maruti Suzuki has two manufacturing facilities in India. Both manufacturing
facilities have a combined production capacity of 14,50,000 vehicles annually. Maruti has a
strong dealer network. Infact it was one of the very first companies in the country to understand
the importance of after sales service in high involvement products like cars. It has the largest
distribution & Service network comprising of over 400 sales showrooms, over 600 dealer
workshops, and 1900 Authorized Service Stations spanning across over 1190 cities
unparalleled in the country. It has 30 Express Service Stations on 30 National Highways across
1,314 cities in India. Most of the service stations are managed on franchise basis where Maruti
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trains the local staff. To increase their reach to rural India, where setting up a complete
which are operated by some dealer in the city thereby ensuring increased customer touch points
PROMOTION STRATEGY
The promotion includes all communications a marketer used in the market for his products and
services to create awareness, to persuade the customers, to buy and retain in future also. For
improvement in the position of sales or progress of business this method is used. The message
is given to target group regarding the features and benefits of the products or services. Without
communication, the features, benefits and schemes would not be known to the customers and
objectives of launching of products or services and increasing sales would not be completed.
When communication creates awareness then only the interest would be created and customers
would take the decision for buying. For promotion different methods of communication can be
used. The promotional strategy of Maruti Suzuki is very effective. The company emphasise on
road safety and environment friendly products. The company has launched road safety mission
under which 5,00,000 people will be trained in the next three years. This will be done through
two channels - Institute of Driving Training and Research (IDTR) and the Maruti Driving
Schools spread across the country. Of the 5, 00,000 people to be trained, at least 1,00,000 will
be people from underprivileged section of society, who are keen to take driving as a profession.
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The company has always promoted the concept of "Reduce, Reuse, Recycle" (3R's). The
company has taken help of all the promotional tools like radio, television, road shows, print
The Company organizes road shows to display vehicles in the pavilions during various college
6.2 RADIO:
Radio is one of the biggest medium to communicate. The company goes for radio
announcements to convey about the product features, price, qualities, etc.
The company also promotes with the help of print media .Advertisement is given in leading
newspapers as well as they distribute brochures and leaflets at public places to reach the
customers. At times they organize workshops and seminars to display their models and they
also offer test drive. The company also advertises through banners and posters.
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4.1
Marketing mix
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PRODUCT LIFE CYCLE
Product life cycle is a business analysis that attempts to identify a set of common stages in
the life of commercial products. In other words the 'Product Life cycle' PLC is used to map the
lifespan of the product such as the stages through which a product goes during its lifespan.
5.1
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1. Introduction stage:
When the product is launched onto the market sales may start slow or increase relatively
During this period of introduction, promotional expenses bear the highest proportion of
sales."The product's costs rise sharply as the heavy expense of advertising and marketing any
For cars like Alto K10 and kizashi market share is slight but marketing costs are high.
2. Growth stage:
If the product is popular with consumers, then sales will start to rise. It may be a rapid growth
or a slower one. Rapid growths than fall away just as quick are called 'Fads'.
Swift desire, Zen Estillo and SX4 are characterized by rapid growth in sales and profit.
3. Maturity stage:
Once the product is well established and consumers are satisfied, then 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
It may only be in the Maturity stage where companies will received a return on their original
expenditure and investment due to potentially high start up and development costs.
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In case of Alto Wagon r and Swift competition is and any significant move is likely to be
copied by competitors.
4. Decline stage:
Sooner or later sales fall due to changes in consumer tastes or new choices available from
competitor's products.
Again, extension strategies may be open to the company to keep the product alive.
Market for Baleno and Esteem is shrinking thus reducing the overall profit.
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PRODUCT MIX
Product mix is defined as all of the products or product lines offered by a firm. The mix is
defined by the industry and manufacturing environment as well as management strategies that
place the company as a specialty, niche or multinational supplier of goods and services.s
The Product mix is the total variety of products a firm sells. Some firms will sell just one
product, whilst others will sell a large number of different products. For example Samsung's
product mix includes mobile phones, netbooks, tablets, televisions, fridges, microwaves,
printers and memory cards. Firms should select their product mix carefully as they will need to
Maruti Suzuki's strong rebound from a low sales volume base in the quarter to December took
the Street completely by surprise. The company's stock price, which is already amongst the
most expensive in the automobile industry with a trailing price-to-earnings (or P/E) of close to
With its recently-launched utility vehicle, Ertiga, hitting the right chord with customers and the
company growing strength in the passenger car segment, Maruti Suzuki's net realisations
improved smartly by 16percent year-on-year and 4percent sequentially to Rs 3.63 lakh per
vehicle. This is by far the best quarterly realisation by the company in the past two years.
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While the topline y-o-y growth of 45percent was in line with Street expectations as the
company sold 26percent more vehicles this quarter compared to the previous year due to a
production halt at its Manesar plant in October last year, a significant improvement in its
earnings before interest, depreciation and tax or EBITDA took the Street by surprise. A better
Product mix led by strong sales of Ertiga and Swift Dzire, improved export realisations with
the yen weakening against the dollar and frequent price hikes undertaken by the company
helped to offset the impact of rising input costs. Input costs for the quarter were also lower in
Raw material cost, as a percentage to sales, for the quarter, was lower by 136 bps to 5percent
compared to a year ago. Cost reduction was also evident on the labour front as employee cost
in relation to sales fell by more than 50 basis points to 2.2percent. Maruti has also improvised
on its other expenditure, which was 11.percent of sales in December '12 quarter against
13.4percent of sales a year ago. A strong topline growth coupled with reduced costs helped the
company post 8percent EBITDA margins for the quarter, higher by close to 300 bps compared
to a year ago.
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6.1
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CHAPTER 3
A product line refers to a number of products that are related and developed by the same
manufacturer. Product lines are not to be confused with product bundling, which combines
various items into one type of product. Items within a product line generally share the same
basic theme, and with the help of a successful marketing plan these products can be entirely
effective.
Frequently, a product line includes different products that are offered to the public at varying
price points. This way, a manufacturer or company can ensure that all products within a line
will be purchased by all kinds of people. Product line extension refers to any additional
Most of the time, product extensions are introduced to the public in order to ward off
competitors. By creating products that match other, competitive products, manufacturers are
able to keep customers interested in a product that they are familiar with. Since most people
purchase brands that they know, these same consumers are more likely to purchase a new
product from a brand that they are comfortable with rather than purchase a product from an
unknown brand.The country’s largest car maker Maruti Suzuki India (MSI) on Wednesday said
that it will launch an upgraded variant of the Swift by the end of next year. The 3 rd generation
Suzuki Swift was unveiled earlier this year in Hungary. Pics: New Suzuki Swift during launch
in HungaryMaruti said that it will reorient the production of ‘Swift’ and‘DZiRE’ in its two
Swift is positioned as Suzuki’s latest world strategic model. The Swift was first unveiled by
plant by around July next year. It will also shift the production of hatchback ‘Swift’, which is
currently being produced at both the plants, entirely to Manesar sometime infuture.Our plan is
to fully shift DZiRE to Gurgaon and Swift to Manesar to enhance productivity. The shifting of
assembly of DZiRE will take place by July next year and that of Swift will take place in future,”
Maruti Suzuki India Managing Executive Officer (Production) M M Singh told PTI. He,
however, declined to comment how much volume will be increased post this reorientation
exercise. Currently, the company manufactures about 10,000 units of DZiRE and 12,000 units
The company's hatchbacks, Swift and Ritz, have a 3-4 month and 1-2 month waiting period,
respectively, while customers are willing to wait for 4-5 months to own a DZiRE sedan. MSI
The company is expecting up to 30 per cent sales jump in the domestic market during this
financial year.
“We are expecting the domestic sales growth of 28-30 per cent in this fiscal. Last fiscal we sold
about 8. Lakh units, MSI Managing Executive Officer (Marketing and Sales ) Mayank Pareek
said.
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CHAPTER-4:
REVIEW ON INTERNSHIP
In business and engineering, new product development (NPD) is the complete process of
bringing a new product to market. A product is a set of benefits offered for exchange and can
be tangible (that is, something physical you can touch) or intangible (like a service, experience,
or belief). There are two parallel paths involved in the NPD process: one involves the idea
generation, product design and detail engineering; the other involves market research and
marketing analysis. Companies typically see new product development as the first stage in
generating and commercializing new product within the overall strategic process of product life
Most marketers agree that a firm’s long-run survival requires new product development
because that is what consumer wants. Product life cycles are growing progressively shorter and
such companies spend heavily on R&D in order to bring out new products.
The new products from a company’s point of view can be broadly divided into three groups:
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THE EIGHT STAGES
8.1
• Ideas for new products can be obtained from basic research using a SWOT analysis
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(searching for user patterns and habits) may also be used to get an insight into new
• Lots of ideas are generated about the new product. Out of these ideas many are
implemented. The ideas are generated in many forms. Many reasons are
generation techniques can begin when you have done your OPPORTUNITY
ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next
development step).
2. Idea Screening
• The object is to eliminate unsound concepts prior to devoting resources to them.
• Will the customer in the target market benefit from the product?
• What is the size and growth forecasts of the market segment / target market?
• What is the current or expected competitive pressure for the product idea?
• What are the industry sales and market trends the product idea is based on?
• Will the product be profitable when manufactured and delivered to the customer at
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• Who is the target market and who is the decision maker in the purchasing
process?
prototyping
4. Business Analysis
• Estimate likely selling price based upon competition and customer feedback
• Estimate sales volume based upon size of market and such tools as the Fourt-
Woodlock equation
• Produce an initial run of the product and sell it in a test market area to determine
customer acceptance
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6. Technical Implementation
• New program initiation
• Resource estimation
• Requirement publication
• Department scheduling
• Supplier collaboration
• Logistics plan
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• Differing value segments (price, value and need)
In order to gain momentum with the increasing demand of diesel powered cars in India, Maruti
Suzuki is planning to introduce two new diesel powered models by late 2014 and this
time you won’t see the tried and tested Fiat sourced 1.3-litre Multijet turbo diesel engine
powering them. The Japanese automaker, Suzuki is said to be developing two new diesel
engines for the Indian market. India’s largest passenger carmaker will be introducing 1.0-litre
and 1.4-litre diesel engines, getting rid of the Italian carmaker’s 1.3-litre Multijet diesel mill.
This move can result in reducing manufacturing costs and can help the carmaker to price the
products aggressively. Maruti Suzuki has tasted tremendous success in the Indian market with
the Fiat sourced Multijet diesel engine powering the Ritz, Swift, DZire, Ertiga and SX4. The
Italian carmaker’s technology has helped Maruti Suzuki find itself amongst the top selling cars
in the Indian car market consistently every month. The diesel engines under development by
the Japanese automaker can help the company to target a range of segments.
The small 1.0-litre diesel engine can power compact hatchbacks like the WagonR and A-Star,
while the bigger 1.4-litre diesel motor can be used in the Swift, DZire, Ertiga as well as the
upcoming compact SUV based on the XA-Alpha concept. Maruti is readying up a diesel engine
plant in Gurgaon with an investment of around Rs. 100 crores and an annual production
capacity of three lakh units. The agreement with Fiat says supply of one lakh diesel engines to
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Maruti for three years starting from 2012, which means beyond 2015, Maruti Suzuki might not
8.2
XA-Alpha
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CHAPTER 5
The Maruti Suzuki has a huge market and has left no stone unturned to satisfy the customers.
It has 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. Nothing matches the delight their cars
deliver. In fact, customer they don’t buy a Maruti Suzuki, they invest in it.
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BIBLIOGRAPHY
www.wikipedia.com
www.marutisuzuki.com
www.ask.com
www.caretrade.com/marutisuzuki
www.gadi.com/marti+suzuki
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