Marketing Management II Assignment

Maruti Suzuki’s Marketing Plan

(Automobile Industry Reports)

Submitted To – Prof. Vinita Srivastava Submitted By – Group 3

Date – 6th January 2024 Shalvi Bansal (JN23MA052)

Shankha Mukherjee (JN23MA053)
Raj Shekhar (JN23MA039)
Sanket Agarwal (JN23MA045)
Adarsh Jain (JN23MA002)

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 Acknowledgment

To Prof. Vinita Srivastava,

On behalf of our group, we would like to express our sincere gratitude for the opportunity to
undertake this research project. We are grateful for your guidance and support throughout
the project.

We are particularly thankful for your encouragement to focus on individual inferences and
learning based on the analysis of multiple industry reports through the lens of Marketing
Management. This has allowed us to develop a deeper understanding of the complex issues
and their implications for businesses.
We are confident that the skills and knowledge we have gained from this project will be
invaluable to us in our future careers.

Thank you again for your support.

Sincerely,
Group 3

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 Index

.......................................................................................................................................................... 1
Index ................................................................................................................................................. 3
1) Introduction .............................................................................................................................. 4
2) Industry Size and Growth .......................................................................................................... 4
3) Industry Market Share............................................................................................................... 5
4) Industry Drivers ......................................................................................................................... 6
5) Industry SWOT Analysis............................................................................................................. 7
6) Chosen Company – Maruti Suzuki ............................................................................................. 8
7) Competitive Review................................................................................................................... 9
8) Current Situation Analysis of the Company ............................................................................. 10
9) Companies Objective & Issues ................................................................................................. 12
10) Companies SWOT Analysis .................................................................................................. 13
11) Companies Marketing Strategy for EVX (Chosen Product)................................................... 14
a) Segmentation, Targeting, Positioning ................................................................................. 14
b) Marketing Mix ..................................................................................................................... 16
I. Product ............................................................................................................................ 16
II. Price................................................................................................................................. 18
III. Promotion ........................................................................................................................ 21
IV. Place ............................................................................................................................... 24
c) Action .................................................................................................................................. 27
d) Budget ................................................................................................................................. 28
e) Control ................................................................................................................................ 28
12) Field Visit Insights................................................................................................................ 29
13) Conclusion ........................................................................................................................... 31
14) References ........................................................................................................................... 31

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1) Introduction

• India's love affair with automobiles dates back to the late 19th century, with the arrival
of the first cars in the 1890s. Early pioneers like Mahindra & Mahindra, established in
1945, laid the foundation for a domestic industry that would eventually become a global
powerhouse.

• Over the decades, India's automobile industry has witnessed remarkable growth, driven
by factors like:

o Government support: Policies like the Automotive Mission Plan 2016-26 aim
to propel India into the top 3 automobile markets globally.
o Rising disposable incomes: As the Indian economy flourishes, more and more
people can afford personal vehicles.
o Focus on affordability and fuel efficiency: Indian carmakers excel at producing
value-for-money vehicles that cater to the needs of a diverse population.

• The Indian automobile industry is not just looking back but also racing towards the
future. Here are some exciting trends:

o Electric vehicles (EVs): The government's push for EVs, coupled with rising
fuel prices, is driving rapid adoption. Startups like Ather Energy and Ola
Electric are leading the charge, while established players like Tata Motors are
also investing heavily in EVs.
o Connected cars: Features like in-car infotainment systems and telematics are
becoming increasingly common, making driving safer and more convenient.
o Autonomous driving: While still in its nascent stages, autonomous driving
technologies are being developed by Indian companies like Mahindra &
Mahindra and Bosch.

2) Industry Size and Growth

• The Indian automobile industry is the world’s fourth-biggest, automobile industry after
the USA. It is presently the world's fourth-biggest producer of vehicles and 7th biggest
producer of industrial automobiles. The size of the Indian automobile industry includes
aspect manufacturing which is anticipated to attain Rs16.16-18.18 trillion ($ 251.4-
282.eight billion) through 2026.

• The Indian car market is on a growth trajectory, with a projected size of INR 6.3 Lakh Cr
by 2024. Small and midsized cars dominate the segment, accounting for 72% of sales.
Exports have increased significantly, with small cars showing a faster growth rate.

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• The government is supporting the sector with initiatives like FAME II and the PLI scheme.
The Indian automobile industry is expected to continue to grow at a CAGR of over 8% in
the coming years, driven by factors such as rising disposable incomes, increasing
urbanization, and a growing middle class.

• This growth is expected to be accompanied by increasing demand for sustainable

vehicles and practices.

3) Industry Market Share

• The Indian automobile industry is one of the fastest-growing in the world, with an annual
production of over 4 million vehicles.

• The industry is characterized by intense competition, with several global and domestic
players vying for market share.

• The Indian automobile industry is a highly competitive market with a wide range of
players. The top 4 automakers by market share in 2023 were:

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Automaker Market MARKET SHARE (SEP’2023)
Share
(Sep’2023)
Maruti 41.6% Maruti Suzuki

Suzuki 3%1% Hyundai

6%
Hyundai 14.9%
Toyota
Toyota 6.1% 12%

Tata Motors
43%
Tata 12.3%
Mahindra &
Motors 13% Mahindra
Mahindra & 11.4% Kia
Mahindra 6%
Honda
Kia 5.5% 16%
MG Motor
Honda 2.7%
MG Motor 1.4%

The automobile industry is undergoing a period of significant change, driven by several

factors, including:

• The rise of electric vehicles (EVs)

• The increasing popularity of SUVs and pickup trucks
• The growing demand for autonomous vehicles (AVs)
• The need to reduce greenhouse gas emissions

The future of the automobile industry is uncertain, but it is clear that the industry is
undergoing a period of rapid transformation. Automakers that can adapt to the changing
market conditions will be the ones that succeed.

4) Industry Drivers

Several key drivers are shaping the future of the Indian automobile industry, including:

• Increasing demand for sustainable vehicles: Consumers are increasingly demanding

vehicles with lower environmental impact. This is driving demand for electric vehicles
(EVs), hybrid vehicles, and vehicles with improved fuel efficiency.

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 • Stringent government regulations: The Indian government has introduced several
regulations to promote sustainability in the automobile industry, including fuel
economy standards, emission norms, and incentives for EVs.
• Technological advancements: Technological advancements are enabling the
development of more sustainable vehicles, such as EVs with longer ranges and
improved charging infrastructure.

5) Industry SWOT Analysis

1.Grow market share in the rapidly growing

Indian market
2.Develop new sustainable vehicle
Opportunities: technologies
3.Expand into new markets
4.Leverage government incentives for EVs

1.Economic slowdown
2.Rising fuel prices
3.Increased competition from global players
Threats: 4.Stringent government regulations

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6) Chosen Company – Maruti Suzuki

Chosen Company - Maruti Suzuki

Maruti Suzuki

• Maruti Suzuki, India's largest car manufacturer, its a subsidiary of Suzuki Motor
Corporation, Japan, is India's largest passenger car maker. Maruti Suzuki is credited with
having ushered in the automobile revolution in the country.

• The company was founded in 1981 as a joint venture between the Government of India
and Suzuki Motor Corporation. The first Maruti car, the Maruti 800, was launched in
1983. The Maruti 800 was an instant success, and it helped to make cars affordable for
the masses in India.

• Maruti Suzuki has grown to become a major player in the Indian automotive market. The
company currently offers a wide range of passenger cars, including hatchbacks, sedans,
SUVs, and MPVs. Maruti Suzuki also exports cars to over 100 countries around the world.

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Journey So Far:

• Born in 1981 as a joint venture, Maruti Suzuki burst onto Indian roads with the iconic
Maruti 800. Soon followed the versatile Van and rugged Gypsy, solidifying their
popularity.

• By the 90s, Esteem and Zen cemented their market dominance, paving the way for
Suzuki's majority stake in 2002. Renamed Maruti Suzuki India in 2003, they continued
pioneering new segments, while retaining leadership with over 50% market share today.
The NEXA network's premium offerings in 2015 further solidified its diverse automotive
landscape.

7) Competitive Review

• Hyundai is one of the major competitors of Maruti Suzuki in India. It has a strong
presence in various segments with popular models like the Hyundai Creta, i20, and
Venue, competing directly with Maruti Suzuki's offerings.

• Tata Motors has been making strides in the Indian market with models like the Tata
Tiago, Nexon, and Altroz. Although it competes in different segments, some of its
offerings overlap with Maruti Suzuki's products.

• Brands under this alliance like Renault and Nissan have models such as the Renault
Kwid and Nissan Magnite, which compete in segments overlapping with Maruti
Suzuki's product lineup.

• Global giants such as Volkswagen and Ford have collaborated for the Indian market.
While their presence is not as strong as some others, they have models that compete
in certain segments where Maruti Suzuki operates.

• With the growing focus on electric vehicles, new entrants like MG Motor and electric
vehicle startups such as Ola Electric, and others are gradually entering the market.

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 They might pose a challenge in specific segments or with their electric offerings in
the future.

• Maruti Suzuki's dominant position in the Indian market, especially in segments like
hatchbacks, compact SUVs, and entry-level sedans, has given it an edge. However,
the company faces constant pressure to innovate, adapt to changing regulations, and
meet evolving consumer demands to stay ahead in the competitive landscape.

8) Current Situation Analysis of the Company

Market Size and Growth

• The Indian auto market, expected to reach 5 million units by 2026, presents immense
potential for Maruti Suzuki. The rural market, with its rising disposable incomes, is a new
frontier for growth. Additionally, the increasing popularity of compact SUVs and MPVs –
segments where Maruti Suzuki has a strong presence – bodes well for the future.

Market Share Dynamics

• Despite facing competition from established players and nimble startups, Maruti Suzuki
is expected to maintain its dominant market share in the immediate future. Its extensive
dealership network, strong brand recognition, and fuel-efficient cars continue to
resonate with Indian consumers. However, the company needs to stay vigilant against
the growing appeal of premium hatchbacks and electric vehicles, areas where it may not
be as strong.

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Sales Forecast

For the first year based on field research & analytical thinking:

• Maruti Suzuki Sales Forecast for Year 1

• Total Sales: 1,900,000 units
• Domestic Sales: 1,600,000 units
• Exports: 300,000 units

Factors Supporting the Forecast:

• Strong brand reputation: Maruti Suzuki is a household name in India and has a strong
reputation for quality, reliability, and affordability.

• Expanding product portfolio: Maruti Suzuki is constantly expanding its product portfolio
to meet the needs of a diverse customer base.

• Growing demand for automobiles in India: The Indian automobile market is expected to
grow at a CAGR of 9.5% over the next five years.

• Improving economic conditions: The Indian economy is expected to grow at a rate of

7.5% in the coming year, which will boost consumer spending.

Risks to the Forecast:

• Rising input costs: Rising input costs, such as steel and aluminum, could put pressure on
Maruti Suzuki's margins.

• Increased competition: The Indian automobile market is becoming increasingly

competitive, with new entrants from both domestic and international players.

• Economic slowdown: A slowdown in the Indian economy could lead to reduced

consumer spending on automobiles.

Overall, the outlook for Maruti Suzuki is positive. The company is well-positioned to
capitalize on the growing demand for automobiles in India. However, the company will need
to manage rising input costs and increased competition to achieve its sales targets.

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9) Companies Objective & Issues

Objectives

Maruti Suzuki has a clear set of objectives for launching the EVX electric car:

• Gain market share in the growing EV segment: India's EV market is projected to reach
30% of total car sales by 2030. Maruti Suzuki, with its dominant position in the
conventional car market, wants to secure a significant share of this burgeoning space.

• Enhance brand image and attract new customers: EVs are often associated with
sustainability and technological innovation. Launching the EVX can create a positive
brand image for Maruti Suzuki and attract tech-savvy, environmentally-conscious
customers.

• Comply with future emission regulations: Stringent emission regulations are being
implemented globally, and India is no exception. The EVX can help Maruti Suzuki comply
with these regulations and avoid potential penalties.

• Gain valuable experience and insights: Entering the EV segment allows Maruti Suzuki to
learn and adapt to this new technology, gaining valuable experience for future EV
development.

Potential Issues

While the objectives are ambitious, Maruti Suzuki may face several potential issues:

• The high initial cost of EVs: EVs are currently more expensive than conventional cars,
which could deter price-sensitive Indian consumers. Maruti Suzuki needs to ensure the
EVX is competitively priced to overcome this barrier.

• Limited charging infrastructure: The lack of adequate charging infrastructure across

India could be a major hurdle for EV adoption. Maruti Suzuki may need to collaborate
with other stakeholders to improve charging facilities.

• Range anxiety: Consumers may be concerned about the limited range of EVs compared
to petrol or diesel cars. Maruti Suzuki needs to address range anxiety by optimizing the
EVX's battery range and potentially offering fast-charging solutions.

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• Competition from established and new players: Several established automakers and
startups are entering the Indian EV market. Maruti Suzuki needs to stand out with
unique features, competitive pricing, and effective marketing strategies.

• Consumer perception and awareness: There may be a lack of awareness and

understanding of EVs among Indian consumers. Maruti Suzuki needs to invest in
educational campaigns to change perceptions and create demand for EVs.

10) Companies SWOT Analysis

Strengths Weaknesses Opportunities Threats

Strong brand Limited presence in Growing demand for Increasing
recognition and the premium car passenger cars in India competition from
reputation for segment domestic and
quality and international
reliability players
Wide network of Reliance on a single Increasing urbanization Technological
dealerships and brand and rising disposable disruption in the
service centers incomes automotive industry
across India
Competitive Exposure to The growing popularity of Regulatory changes
pricing strategy fluctuations in raw compact SUVs and MPVs related to emissions
material prices and safety
standards
Effective High dependence Opportunities for Economic slowdown
advertising and on the Indian expansion into new and downturns in
promotional market markets the Indian economy
campaigns
Strong focus on Limited global Potential for growth in Rising fuel prices
customer presence the used car market and environmental
satisfaction concerns
Wide range of Opportunities to leverage
products to cater technology for innovation
to a diverse and customer experience
customer base

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11) Companies Marketing Strategy for EVX (Chosen
Product)

a) Segmentation, Targeting, Positioning

Segmentation

Maruti Suzuki, being a prominent automobile manufacturer, segments its market

based on various factors:

• Demographic Segmentation: Maruti Suzuki might consider young urban professionals or

environmentally conscious consumers.

• Geographic Segmentation: Market segmentation is based on geographic areas

considering factors like urban vs. rural preferences, infrastructure availability (like
charging stations), and regional preferences.

• Psychographic Segmentation: Understanding consumer behaviour, attitudes, and

lifestyle choices. This might involve targeting environmentally conscious individuals,
tech-savvy customers, or those seeking cost-effective and sustainable transportation
options.

• Behavioural Segmentation: Identifying and catering to customer behaviour patterns

related to the usage of electric vehicles, such as daily commuting, long-distance travel, or
commercial usage.

• Price Segmentation: Offering electric vehicles at different price points to cater to various
consumer segments based on affordability and desired features. Maruti Suzuki EVX is an
SUV that is expected to launch in India in Jan 2025 in the expected price range of Rs.
20.00 - 25.00 Lakh.

Targeting

Maruti Suzuki employs a differentiated and concentrated targeting strategy to reach

specific segments:

• Differentiated Targeting: Offering different car models for various segments. For
instance, they have the Alto and S-Presso targeting entry-level buyers, Swift and
Baleno targeting young urban consumers, Ertiga and Vitara Brezza targeting

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 families, and premium models like Ciaz for those seeking luxury within their
range. Similarly, for EVX different models can be introduced.

• Concentrated Targeting: Focusing on specific segments within the market. For

example, Maruti Suzuki might focus on young, tech-savvy, environmentally-
conscious consumers by continuously innovating and introducing new models to
cater to evolving customer preferences.

EVX Target Audience:

• Eco-Conscious Early Adopters: Focus on environmentally conscious individuals and

families open to new technologies, willing to be among the first EV owners.

• Urban Mobility Seekers: Target city dwellers looking for practical, convenient, and
affordable transportation solutions amidst rising fuel costs and urban pollution.

• Tech-Savvy Millennials: Appeal to tech-savvy millennials and Gen Z with an interest

in innovation, sustainability, and connected car features.
•
• Value-Oriented Budget Buyers: Position the EVX as an affordable entry point into the
EV market, catering to budget-conscious buyers seeking value and practicality.

Positioning

Maruti Suzuki positions itself in the market by emphasizing the following aspects:

• Value for Money: Highlighting affordability, low maintenance costs, and fuel
efficiency across their product range.

• Reliability and Trust: Leveraging its brand history and reliability in the market.
Maruti Suzuki positions itself as a trustworthy and dependable brand among
Indian consumers.

• Innovation and Technology: Emphasizing technological advancements and

innovation in their vehicles to stay ahead in the competitive market.

• Wide Service Network: Positioning itself with an extensive service network and
easy availability of spare parts across the country.

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By effectively segmenting the market, targeting specific customer groups, and
positioning itself uniquely, Maruti Suzuki has established a significant presence in the
Indian automotive market.

b) Marketing Mix
I. Product
Product Ranges

Maruti Suzuki offers a diverse range of vehicles across various segments:

• Hatchbacks: From budget-friendly Alto to sporty Swift, catering to different

needs and budgets.

• Sedans: Dzire for a comfortable family car and Ciaz for a premium experience.

• MPVs: Ertiga for practicality and XL6 for a luxurious touch.

• SUVs: Brezza for the city and occasional off-road, Grand Vitara for premium
features and hybrid option.

• Van: Eeco for spacious cargo and large families.

• Upcoming: New-gen Swift with upgraded features, EVX electric car for
affordability, and Wagon R EV targeting the entry-level segment.

Product mix

They offer a car for every need and budget, constantly innovating and adapting to
cater to evolving customer preferences. From humble hatchbacks to premium SUVs,
their diverse portfolio ensures they remain a dominant force in the Indian
automotive landscape.

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This is just a glimpse into Maruti Suzuki's Product mix. With new models and variants
being introduced regularly, their journey of offering mobility solutions for every
Indian continues.

EVX Product:

• Car Name: Maruti eVX

• Expected Launch: Jan 2025 (Tentative)
• Estimated Price: Rs. 20.00 - 25.00 Lakh

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 Lifecycle Stages:

Introduction:
• Challenged launch: Expect cautious early sales despite Maruti's marketing
blitz.
• Targeted rollout: Selective launch in key cities for initial testing and feedback.

Growth:
• Sales surge: Positive word-of-mouth and awareness boost demand and
market share.
• Brand building: Focus on reliability, affordability, and environmental benefits.
• Network expansion: Wider availability across India ensures customer
accessibility.

Maturity:
• Stabilized sales: Focus on new markets, customer retention, and minor
upgrades.
• Targeted offers: Promotional initiatives to maintain model appeal.
• Service & after-sales: Leveraging Maruti's established network for customer
loyalty.

Decline:
• Falling sales: Competition, evolving preferences, and technology
advancements take effect.
• Strategic decisions: Phased withdrawal, special editions, or shift to newer
models.

II. Price

Current Prices

Maruti Suzuki offers a wide range of cars in India at competitive prices. Starting
prices range from the Alto hatchback at ₹3.54 lakh to the Invicto MPV at ₹24.82 lakh.
Popular models like the Swift hatchback start at ₹5.99 lakh, the Dzire sedan at ₹7.38
lakh, and the Brezza SUV at ₹8.29 lakh. The upcoming EVX electric car is expected to
be priced competitively in the market upon its launch.

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Prices of Competitors

• Hatchbacks: Maruti Suzuki offers the most affordable option in this segment with
the Alto starting at ₹3.45 Lakh. Hyundai and Tata Motors come close with their
starting prices at ₹5.84 Lakh and ₹5.6 Lakh respectively. Toyota stands out as the
most expensive competitor with a starting price of ₹6.81 Lakh.

• Sedans: Maruti Suzuki again sits in the middle, with Dzire starting at ₹6.52 Lakh
and Ciaz at ₹8.64 Lakh. Hyundai and Tata Motors offer slightly cheaper options,
while Toyota remains the most expensive.

• SUVs: This segment shows a wider range. Maruti Suzuki Brezza starts at a
competitive ₹8.29 Lakh, but Grand Vitara goes up to ₹10.70 Lakh, overlapping
with Hyundai and Tata Motors' SUV offerings. Toyota remains the premium
choice with a starting price of ₹18.15 Lakh for Urban Cruiser Hyryder.

• Maruti Suzuki caters to a budget-conscious audience with its entry-level offerings

but also extends to the mid-range segment with options like Ciaz and Grand
Vitara.

• Hyundai and Tata Motors offer similar price ranges in most segments, posing
direct competition to Maruti Suzuki.

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 • Toyota consistently positions itself as the premium choice with higher starting
prices across all segments.

III. Promotion
Branding Strategies

• Consistent Brand Messaging: Maruti Suzuki has maintained a consistent brand

message focusing on reliability, affordability, and innovation across its
communication channels. This coherence in messaging has helped in creating a
strong brand identity.

• Product Diversification and Market Segmentation: The company strategically

diversifies its product range to cater to various segments of the market. From
small entry-level cars to premium offerings, this approach enables Maruti Suzuki
to reach a broader audience.

• Customer-Centric Approach: Maruti Suzuki places significant emphasis on

understanding and fulfilling customer needs. The brand consistently engages with
customers, collects feedback, and incorporates customer insights into product
development and marketing strategies.

Branding the EVX requires a strategic shift from Maruti Suzuki's traditional values. By
embracing sustainability, highlighting innovation, fostering community, and adapting
customer focus, they can build a distinct and appealing brand identity for the EVX
and establish it as a pioneer in the Indian EV landscape.

Promotional Tools:

• Television Advertisements: Utilizing TV commercials to reach a vast audience and

showcase their cars' features and benefits through visually engaging storytelling.

• Digital Marketing: Leveraging digital platforms like social media, websites, and
online ads for targeted campaigns, engaging content, and interactive experiences
to reach specific demographics.

• Print Media: Advertising in newspapers, magazines, and brochures to reach a

diverse audience and provide detailed information about their models.

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• Outdoor Advertising: Using billboards, hoardings, and bus shelters in high-traffic
areas to increase brand visibility and reach a local audience.

Some well-known advertisements:

• "Kam Se Kaam Banega" campaign. Inaugurated in 2022, this campaign

commemorated Maruti Suzuki's three decades as a champion in fuel
efficiency. Several advertisements for the campaign demonstrated how
Maruti Suzuki vehicles save Indian households money on gasoline. The ad-
supported Maruti Suzuki's positioning as Indian families' go-to fuel-efficient
vehicle.

• Commencing in September 2023, the current campaign "Celebrating 6 Years

of Arena" honours the accomplishments of Maruti Suzuki's Arena retail
outlet. In a series of advertisements highlighting the wide variety of
automobiles, customer-focused services, and festive deals offered at Arena
dealerships, it stars regional cinema stars and brand ambassador Varun
Dhawan.

• The Smart Finance Platform's "Finance Your Car from Anywhere" feature
Launched in November 2023, this digital ad emphasized how simple and
convenient purchasing a car through Maruti Suzuki's Smart Finance platform
is. It demonstrated how users of the platform's online and mobile apps might
obtain loan approvals while lounging in their homes.

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• "Season of Celebrations" is a festive campaign that emphasizes the fun and
pleasure of owning a Maruti Suzuki car throughout the holiday season. It is
available on TV, in print, and in digital media. It tells touching tales of families
using their new Maruti Suzuki automobiles to celebrate holidays like Diwali
and Dussehra.

EVX Message Design Strategies:

• Crystal Clear: Prioritize simple, understandable language to communicate key

features & benefits.

• Value Emphasis: Highlight fuel efficiency, affordability, & eco-friendly aspects to

set EVX apart.

• Emotional Connection: Craft stories showcasing how EVX empowers lifestyles

and fulfills aspirations.

ATL Strategies:

• Targeted TV Ads: Shift away from mass-market TV campaigns towards more

targeted digital channels focused on eco-conscious and tech-savvy demographics.
Emphasize environmental benefits and innovative features through short,
engaging video ads.

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 • Social Media Domination: Build a strong social media presence to engage
potential EV buyers. Leverage influencer partnerships, share educational content,
and host interactive campaigns to generate hype and awareness.

• Digital Content Hub: Create a dedicated EVX website or landing page with
detailed information, specifications, interactive features, and customer
testimonials. Optimize for search engines to capture early adopters researching
electric cars.

• Strategic Print Partnerships: Partner with environmentally focused magazines

and publications to reach eco-conscious readers. Utilize innovative print formats
like augmented reality to showcase the EVX.

BTL Strategies:

• Experience-Driven Test Drives: Organize dedicated test-drive events, featuring

interactive elements and expert guidance to address range anxiety and educate
potential buyers about EV technology.

• Partnership with Charging Infrastructure Providers: Collaborate with charging

station providers to offer exclusive benefits or packages to EVX owners, easing
accessibility and range concerns.

• Community Building Events: Host workshops, meet-and-greets, and educational

sessions for existing and potential EV customers to foster a sense of community
and brand loyalty.

• Referral Programs: Encourage existing Maruti Suzuki customers to refer new EV

buyers through attractive incentives, leveraging their trust and brand credibility

IV. Place
Distribution Channel

Maruti Suzuki Arena:

• This channel offers a wide range of established and popular models across
different segments.
• These models are targeted towards families, first-time car buyers, and individuals
seeking affordable and practical vehicles.

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• Some cars available through the Arena channel include:
Maruti Suzuki Alto, WagonR, Celerio, Swift, Dzire, Ertiga

NEXA Dealerships:
• NEXA is Maruti Suzuki's premium retail network offering more upscale and
sophisticated models with advanced features and technology.
• These cars target a more discerning and urban customer base.
• Models available through NEXA include:
Maruti Suzuki Baleno, Ciaz, Ignis, S-Cross

Levels of the Channel

Maruti Suzuki has a two-level channel structure in place:

• Wholesalers: Cars are bought in quantity at wholesale costs by a network of local

distributors, who then distribute them to predetermined areas. These
distributors serve as a bridge between the dealerships and Maruti Suzuki.
• Retailers: Approximately 3,000 Maruti Suzuki dealerships are dispersed
throughout India and make up the last link in the chain. These dealerships handle
vital after-sales services, showcase vehicles, negotiate deals, and engage directly
with customers.

Value Offered

Value for Manufacturer: Increased reach and sales Suzuki can reach a bigger
audience and serve a larger client base thanks to its vast dealership network
throughout India, which eventually increases sales and market share.

• Brand awareness and promotion- Dealerships promote Maruti Suzuki vehicles

through events, advertising, and test drives in their capacity as regional brand
ambassadors.

• Inventory management and distribution- Dealerships handle their inventory,

which relieves Maruti Suzuki of some of the responsibility and guarantees that
cars are easily accessible to consumers in various areas.

• After-sales service and customer satisfaction-Dealerships support consumer

happiness and brand loyalty by offering necessary after-sales services like
maintenance, repairs

Value for Consumer

• Convenience and accessibility: The widespread presence of dealerships makes it

easy for consumers to browse, compare, and purchase Maruti Suzuki cars.

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• Expertise and guidance: Dealership personnel provide expert advice and
guidance to consumers throughout the buying process, helping them choose the
right car for their needs and budget.

• Test drives and after-sales service: The ability to test drive cars at dealerships
gives consumers firsthand experience and builds confidence in their purchase
decision.

• Competitive pricing and financing options: Dealerships often offer competitive

pricing and financing options, making Maruti Suzuki cars more affordable and
accessible to a wider range of consumers.

Difficulties in Distribution Channel

• Intense Competition: There is a lot of competition among vehicle manufacturers

in India, which puts pressure on sales and margins as they compete for market
share.
• Thin Margins: Dealership profitability can be a persistent problem, particularly for
lower-priced models with thin profit margins.

• Variable Demand: The desire for automobiles can change in response to new
model releases, changes in the economy, and changes in gasoline prices. This can
cause problems with inventory control.

• Increasing Operational expenditures: Dealership profit margins may be further

compressed by rising expenditures for things like rent, salaries, and marketing.

• Changing Customer Expectations: Today's tech-savvy consumers require that

dealerships constantly adapt to their needs by providing a seamless, digitally
integrated car-buying experience.

Adapting to a Changing Landscape

• Maruti Suzuki understands the necessity for ongoing adaptation in a market that
is constantly changing. As an additional strategy, the business uses online
platforms that let clients explore models, evaluate costs, and even schedule test
drives.

• This digital connectivity reaches beyond physical dealerships and appeals to tech-
savvy customers.

• By capitalizing on the rising demand for dependable used cars, Maruti Suzuki's
used car channel, operating under the "True Value" brand, offers certified pre-
owned Maruti Suzuki cars. This channel appeals to clients on a tight budget and
gives dealerships alternative cash streams.

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 After-Sale Services:

• Programs for rewarding loyalty: Maruti Suzuki Rewards gives points for
referrals, purchases, and services that may be redeemed for benefits and
savings.

• Frequent communication: Maruti Suzuki shares service reminders,

promotional offers, and news about new vehicles through customized emails
and SMS.

• Initiatives about the customer experience: To monitor customer happiness

and rectify issues, regular feedback surveys and customer touchpoints such as
the 'Your Voice' app are used.

• Community events: To foster a feeling of community and brand association,

plan vehicle clubs, driving competitions, and kid-friendly events.

• Service clinics and workshops: To educate clients and foster trust, free
mobile service clinics and workshops on car maintenance are held.

• Digital platforms: Providing vehicle tracking while undergoing maintenance,

online service booking, and app-based access to service records.

c) Action

• Market Blitz: Unleash a multi-pronged marketing campaign with targeted digital ads,
interactive test drives, and community events to capture early adopter attention and
generate excitement.

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• Charging Partnerships: Secure strategic partnerships with charging infrastructure
providers to alleviate range anxiety and ensure convenient charging solutions for EVX
owners.

• Dealership Transformation: Upgrade dealership facilities with EV-specific charging

equipment, knowledgeable sales staff, and interactive displays to provide a superior
customer experience.

• Tech Collaboration: Partner with technology companies to integrate cutting-edge

features like advanced driver-assistance systems and smart connectivity options,
making the EVX a leader in EV tech.

d) Budget

• Strategic Allocation: Allocate funds efficiently, prioritizing targeted digital marketing,

charging infrastructure partnerships, and dealership upgrades to maximize impact on
key target audiences.

• Data-Driven Decisions: Leverage data analytics to track campaign performance,

identify optimal channels, and adjust budget allocation to ensure maximum return
on investment.

• Cost-Conscious Innovation: Explore cost-effective solutions for advanced features

and prioritize affordability without compromising quality or performance to maintain
a competitive edge.

• Long-Term View: Invest in sustainable marketing campaigns and infrastructure

partnerships that build brand loyalty and foster a thriving EV community beyond the
initial launch phase.

e) Control

• Agile Monitoring: Closely monitor market trends, customer feedback, and

competitor activity to adapt marketing strategies and product offerings quickly in
response to changing dynamics.

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 • Performance Metrics: Establish clear performance metrics for marketing campaigns,
charging partnerships, and dealership initiatives to ensure effectiveness and track
progress toward goals.

• Data Analysis and Insights: Implement a robust data analysis framework to gather
insights from customer interactions, social media engagement, and test drives,
guiding strategic decision-making.

• Quality Control and Safety: Maintain stringent quality control procedures and
uphold the highest safety standards throughout the production and distribution
process to ensure customer trust and brand reputation.

By taking decisive action, prioritizing strategic budget allocation, and maintaining agile
control, Maruti Suzuki can successfully launch the EVX, capture the Indian EV market,
and establish itself as a leader in sustainable mobility. The EVX is not just a car; it's a
statement of innovation, ambition, and responsibility for shaping a greener future for
India.

12) Field Visit Insights

Field visit 1
• On the first field visit, we visited Vipul Motors H-153, Sector 63, Noida 201301. Over
there we met MR Raju Singh who was a relationship manager of the showroom.

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Field visit 2
• In the second field visit, we visited
• Auto Vikas a Tata Motors showroom located at Plot no 62 Sector 20 Dwarka Marble
Market, Delhi, 110075,
• Sapphire Hyundai A Hyundai showroom located at Plot no 62 Sector 20 Dwarka
Marble Market, Delhi, 110075,
• Magic AUTO is a Maruti Suzuki showroom located at Metro Station, Sector 9, Dwarka,
Delhi, 110075
• Unit No G-17-20, Jaksons Crown Heights, Plot No 3B1 Twin District Centre, Sector 10,
Rohini, New Delhi, Delhi 110085
• G-18/19, Unity One Mall, Rohini West Metro Station, Sector 10, Rohini, New Delhi,
Delhi 110085

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key Findings and Insights

• Diverse portfolio: From budget hatches to premium SUVs, catering to various needs
and budgets. This leads to high market share compared to limited-offer rivals.

• Emphasis on reliability & affordability: Fuel-efficient, durable cars at competitive

prices, ideal for budget-conscious buyers.

• Channel differentiation: Nexa for the luxury segment, Arena for mainstream,
expanding reach.

13) Conclusion

• Maruti Suzuki's upcoming EV launch marks a significant milestone in the company's

journey towards sustainable mobility. With its strong brand reputation, extensive
dealer network, commitment to affordability, and technological advancements,
Maruti Suzuki has the potential to become a major player in the Indian EV market.

• However, the company will need to carefully strategize its pricing, product
positioning, and marketing efforts to effectively differentiate itself from the
competition and capture a significant market share.

• The competitive landscape is dynamic, and Maruti Suzuki's success will depend on its
ability to adapt to changing consumer preferences, technological advancements, and
government policies as the EV market matures in India.

14) References

• https://www.marutisuzuki.com/corporate/about-us/sustainability
• https://www.globalsuzuki.com/corporate/environmental/report/pdf/2022_enve_all.
pdf
• https://sustainabilityzero.com/maruti-suzuki-steps-up-the-pace-on-reporting/
• https://www.investindia.gov.in/sector/automobile#:~:text=Export%20of%20the%20total%20
number,17%20Mn%20trucks%20by%202050
• https://www.godigit.com/motor-insurance/car-insurance/find/top-car-manufacturers-in-
india#:~:text=1.,Suzuki%20%7C%20Market%20Share%3A%2041.6%25&text=Collaborating%
20with%20Suzuki%20Motor%20Corporation,leading%20car%20manufacturer%20in%20India
• https://startuptalky.com/indian-automobile-industry/

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