This action might not be possible to undo. Are you sure you want to continue?
Ms. Namita Kapoor
Cherie Dhillion (14) Pratyush Ranjan (24) Sourav Mukherji (28) Babariya Linesh (31) Karamcheti V. Rajashekhar (42) Farhan Ahmad (53)
1) EXECUTIVE SUMMARY 2) DEMAND AND SUPPLY FACTOR 3) HOW PRICES ARE DECIDED 4) LIST OF SUPPLIERS 5) DEMAND FORECASTING 6) LOCATION OF MANUFACTURING UNIT 7) COSTING METHOD AND COST REDUCTION TECHNIQUES 8) TYPE OF COMPETITION 9) VARIOUS PROBLEMS WITH SOLUTIONS 10) CONCLUSIONS
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 key car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzuki’s are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzuki’s (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. Basically through this document we are being shaping out some important features of Maruthi Suzuki Shift which has been hit the Indian roads in 2005. It has redefined the definition of premium hatchback car segment in Indian industry. It has innovative and advanced features with car safety technologies which differentiated the swift to be no.1 in the hatchback segment of auto industry in India. So we have chosen the Maruti Udyog Ltd. Gurgaon for this. We have researched on the following which affects the Maruti Suzuki and differentiates from the various products in the A2 car segment of Auto industry in India.
Like the price of Swift in 2004 was Rs. They are using data according to the customers return and earning capacity for attracting the customers for their vehicles. in the compact car segment market even there are very less competitors there is stiff price competition. Income of Consumer / Buyer The income of the consumer or buyer of the car is a very important factor of demand. Financing Options Auto industry observers cite car loans as the biggest driving factor for the expansion of the Compact Car segment. almost 85 per cent of all new car sales are backed by auto finance. etc. 3. like five years instead of the earlier threeyear loans. The growth of the CC-segment in the past few years can be mainly credited to factors such as rise in income levels leading to increased affordability and simultaneous reduction in interest rates leading to lower EMIs. 3. Interest rates on car loans have come down drastically in the past four or five years. The drop in interest rates usually helps very few people to probably shift from the base model to a deluxe model. And the companies are even trying to approach to the customer as to their demand for a vehicle at special interest loans. Since. As the law of demand also states that with an increase in price the demand of the commodity decreases and vice versa. A larger shift happens if people are willing to take long-term loans.01 lacs in 2011. It is all due to because the companies now a days are using even aggressive selling techniques for which they are even coping with the Film celebrities and Cricket stars. but still the sale of the Maruti brand keeps on increasing it was due to the company’s reputation with the customers.Demand Factors 1. Price of the Car One of the major factors that affect the demand of any commodity in the market is the price of the commodity. compared to 65 per cent five years ago. In recent time we have seen that due to increase in the Income of the general public. 4.77 lacs which increased to Rs. there has been a shift from the Lower CC-segment cars to the Upper CC-segment cars. which helps prospective buyers take the plunge. 2. . At present. Advertising and Marketing Due to the advertising techniques adopted by all the manufacturers in the CC-Segment the sales have risen drastically. 4.
In the past one year only the Indian car market has seen many launches namely SX4. But India is fast emerging as a manufacturing hub for leading global car makers. etc. 6. Over the past 4-5 years car industry has been benefited through significant increase in affordability due to the decrease in EMIs. The current hardening of interest rates is expected to affect demand by reducing affordability. which will also be used for exports. . However it has increased and averaged at 13. Currently. 9. Increase in Affordability The demand for passenger cars is driven mainly by greater affordability. Car finance rates dropped from 17% in 2000-01 to 11% in 2005-06. PV market has larger addressable market.75% in 2010-11. Due to escalation in competition in Indian car market. which is also having a positive rub off on car demand. who forms major portion of the population. and several manufacturers have already firmed up plans for setting up manufacturing bases in India. which in turn increases the aspiration level of the customers. Availability of Easy Financing Options A majority of PV purchases are financed through financial institutions. 7. which is much lower than current export hubs. Demographic Drivers Cars being aspirational products. India’s share of global passenger cars export volume stands at less than 1%. purchase decisions are influenced by the overall economic environment. Today with high amount of disposable income in the hand of Indian youth.Swift Diesel.5. New Offerings Car sales increase when a new model hits the market. 8. Spark. Increase in per capita income increases the consumption tendency of the customer. Exports The share of exports from domestic production is currently at 12-13%. Growth in per capita income and rising aspirations and changing lifestyle is leading to increased preference for cars over two-wheelers. Zen Estilo. frequency of new model launches has increased. Logan.
The best solution is that market equilibrium should be achieved so that the amount of the quantity demanded should be equal to the amount of the quantity supplied to achieve maximum profits. there is a huge impact on the sales of the other cars as well as the same car. A Market Equilibrium is achieved at the . Effective and successful operation methods like platform commonality. If the price of the car is high in the market. In the automotive industry where the market type is oligopoly. Presence across Segments Manufacturers with presence across various product segments can ensure higher volume and better capacity utilization by using the common manufacturing capacity. 3. 2. Typically a customer upgrades from one segment to higher segment and the presence across various segments ensures that the company retains its existing customers. Wide Dealer Network and Availability of Finance A wide dealer network helps the company serve customers over wide geographical area. But still any new model launch meets with increase in sales volume for the company. Access to Latest Technologies Indian PV segment is highly competitive with as many as 14 players operating in it and more than 80 models on the offering. The companies are tying up with the financial institutions having rural presence to provide additional financing options to customers in such areas. if one company drops its price for the car. Moreover in a time when a substantial portion of Indian customer is looking to upgrade in higher segment. Efficient Operations Competition in PV segment is very intense and this requires the existing players to initiate steps to reduce their cost of production. 4. companies with latest technologies and latest models will catch more attentions 5. Price of the Car Price of the car is one of the major factors that affect the supply as well as the demand of a car.Supply Factors 1. In the market the price of one car is inter-related to the price of the other cars in the same segment. reduction in vendor base and workforce rationalization can help a company immensely. Maruti has used its available wide service network as point of difference over competitors. the manufacturer or the supplier will want to supply more units in the market so he can earn more profits.
Demand and supply refer to the relationship price has with the quantity consumers demand and the quantity supplied by producers. 6. Recently the government has reduced the custom duty on inputs and raw material from 20% to 15% which has increased the supply. Rubber) increases there will be an increase in the cost of production leading to decrease in profit margins. machinery and input costs also influence the supply with the increase or decrease in these costs. Input Cost .point of intersection of the demand line and the supply line. Monopolies characterize industries in which the supplier determines prices and high barriers prevent any competitors from entering the market. the supply of a car will fluctuate with the nature of the change.These factors influence the supply of a car largely. The more the quantity changes. Spare Parts. If the cost of the raw material (Steel. Labour. high competition and many substitutes. 7. quantity demanded decreases and quantity supplied increases. Machinery. Factors of Production There are some factors of production which influence the supply of a car like Cost of Raw Material. The point is the equilibrium point where the quantity demanded is equal to the quantity supplied. . Cost. Conclusion Market economies are assumed to have many buyers and sellers. Government Policies and Taxes If there is a change in the government policies regarding the increase in the road tax charged or the tax which is to be paid per unit sold. the more elastic the good or service. Costs like labour costs. On the other hand. As price increases. elasticity tells us how much quantity demanded or supplied changes when there is a change in any of the factor.
Maruti Swift comes in two version. As the diesel version is giving better average than that of petrol version model. interiors as well as the version of the cars. This compact diesel engine is incredibly fuel efficient that results in a mileage of 15. The petrol version of Maruti Swift is packed with 1.2 L K series petrol engine of Maruti Swift is very fuel efficient and the light weight DOHC engine present in the car is very efficient in reducing the friction and provides the best fuel economy. and a very good performer. The Car engine is packed with 5 Speed Manual Transmission.3 L DDiS engine with a displacement of 1248 cc. This gearbox is cable type gearshift which is of great help at the time of shifting of gear. This K series engine of Maruti Swift has BS IV complaint emission level that makes .2 L K series petrol engine with a displacement of 1197 cc. low noise and cleaner exhaust.2 L. The diesel variants of Maruti Swift is endowed with 5 step multi injection common rail system that offers better fuel combustion.1 kmpl on the highways.Petrol and Diesel. The 1. mileage. diesel model is more expensive than petrol version Maruti Suzuki swift cars.2 kmpl in the urban roads and 17. with synchromesh in all gears and one reverse. This higher mileage is the outcome of free revving and all round aluminum construction that offers excellent mileage due to reduced weight and higher power to weight ratio. Power: As mentioned earlier. The 1. The K-12 engine of Maruti Swift is endowed with 5 Speed Manual Transmission. Prices are decided on the basis of following factors: Fuel Efficiency/Mileage: There are two versions of a Maruti Suzuki Swift.2 kmpl on the highways. The engine has MPFI (Multi Point Fuel Injection) supply system that offers very great performance and flatter torque for the car. The diesel version of Maruti swift is packed with 1. The DDiS engine of Maruti Swift is equipped with 5 Speed manual transmission with synchromesh in all gears and one reverse. Petrol and Diesel version.How prices are decided for a Maruti Suzuki Swift? Maruti Suzuki decides its prices as per the performance. K series petrol engine is packed with many advanced features that help to make the performance of the car very ultimate and mind blowing.3 L diesel engine is packed with fixed geometry turbocharger with intercooler combination that offers efficient combustion and clear emissions. The 1.8 kmpl in the city roads and 23. this gearbox offers a great performance and makes the car very economical on roads. Maruti Swift powerful engine is endowed with the emission of BS IV and is very fuel efficient that offers an impressive mileage of 13.
Swift is a very smart and classy car that posses very dynamic and robust look. smooth and hassle free driving experience. torque and transmission of the car. The DDiS engine is endowed with superior CRDI fuel injection system with turbocharger and intercooler combination that offers efficient combustion and higher torque. This highly advanced engine of Maruti Swift is sure to produce a maximum power of 85 PS at 6000 rpm and a torque of 113 Nm at 4500 rpm. The DOHC (Double Over Head Camshaft) packed engine of Maruti Swift produces less noise and vibration even at high speed and is highly fuel efficient. The sleek body graphics of this car has unadulterated looks which is quite irresistible in just a single glance. The petrol version of Maruti Swift is packed with 1. .3 L DDiS engine with a displacement of 1248 cc.2 L K series engine with a displacement of 1197 cc.3 L. amazing fuel efficiency and better fuel combustion.the car greener and eco-friendly. This K series engine is a great performer and produces highest power and torque with passing acceleration in city driving conditions for zipper overtaking. This K series engine is packed with light weight DOHC engine that reduces friction and performs better. the diesel engine of Maruti Swift is packed with 1. This advanced DDiS engine is equipped with unique 5 step multi injection technology offers superior drive and fewer gear shifts produces an impressive power of 75 PS at 4000 rpm and a torque of 190 Nm at 2000 rpm. The diesel version of Maruti Swift is endowed with turbocharger and intercooler combination and 5 step multi injection common rail system that offers higher torque. The head turner with class apart features has very elegant design and stylish exterior. The powerful diesel engine is very efficient and helps in reducing vibration and noises even at high speed and thus offers comfortable. On the other hand. Exteriors: Maruti Swift is a very classy car with unmatched exteriors to attract huge fan following. The DDiS engine of Maruti Swift is also equipped with 5 Speed Manual Transmission with synchromesh in all gears and also in reverse one.9 seconds and top speed of 162 kmph. 1248 cc displacement. This high powered engine has a great acceleration and reaches 100 km in just 14. The diesel version of Maruti Swift is packed with 1. The engine is packed with 5 Speed Manual Transmission that is very fuel efficient and to run by providing a very excellent mileage. Acceleration and Pick-up: The pick-up and acceleration of a car is a deciding factor when one decides to purchase a car. This K series engine of Maruti Swift crosses the barrier of 100kms in just 13.8 seconds and reaches top speed of 169 kmph. The acceleration of a car is highly dependent on the power. The curvier body look of the Maruti Swift is its eye catching feature.
and exteriors but with many comfort features to attract huge number of car lovers. console box. The storage section is also defines with huge luggage space. The colored outside door handles and colored door mirror offer that extra bit of finishing touch to the overall exterior of the car. maintaining precise cabin temperature. The driver’s seat height adjustment in the car offers a comfortable drive for nay driver. This curvier headlight makes the look of the car very stunning and attractive. interiors. Interior Comfort: Maruti Swift offers a swathe of comfort and pleasure to its passenger with array of advanced and comfortable features that offer a very pleasant and comfortable driving. The illuminated steering mounted audio controls offers control of audio system on the steering itself. The rear section of the Maruti Swift is also impressive with chic wraparound tail lamps and stylish designed LED tail lights that offer a very impressive look. The chrome finished Logo of the company at the front of the Maruti Swift throws the trust and faith the company have. The high mounted stop lamp and a rear bumper integrated fog lamps give clear signals to follow traffic and also provides a terribly amazing looks. The head restraint and driver seat height adjuster offer a very good and comfortable driving . cup holders. The single folding rear bench seat offers the optimum utilization of space when required.The rich chrome styling front grille of the car merges very well with the chiseled shoulder line and gives the looks an extra superior effect. The electric ORVM present in the Maruti Swift offers comfort of changing the view without opening the windows of the car. The body colored bumpers and internally adjusted ORVMs give the car a more stylish and dynamic exterior. The fully integrated stereo system also adds joy and pleasure to your driving. The electronic tilt Power Steering of the car offers a very comfortable drive by customization in the position according to one’s need for any height of driver. The automatic climate control system offers you to choose the temperature you desire and on board computers auto adjust to the weather outside. The car is all set in the roads with not only looks. The power window in both front and rear seat gives great comfort in closing the windows when needed. ticket holders. The powerful headlamps offer clear and superb visibility and the headlight leveling allows you perfect light beam adjustment. The alloy wheels and body colored outside mirrors with indicators and body colored door handles give the car a very aggressive and classy look. style. The air conditioner with heater controls the inside temperature and offers a very comfortable driving. etc.
Maruti Suzuki Swift Wheels: Maruti Swift has a very elegant and stylish exterior with a variety of advanced features to attract a huge volume of crowd. VXI. The K 12 series engine is endowed with light weight DOHC (Double Over Head Camshaft) and 5 Speed Manual Transmission which helps in reducing friction and improving durability of engine with higher torque. The DDiS engine which incorporates 5 Speed Manual Transmission offers greater performance and fuel economy. The diesel version of Maruti Swift is endowed with 1. VXI. Some other comfort features are remote fuel lid opener. etc. boot lid opener. 1197 cc K series engine which is highly powerful. The alloy wheels make the look more sporty and robust. The cooled ERG system endowed in the engine helps in cooled exhaust gas recirculation and cleaner emissions. This big sized tyre of Maruti Swift is very efficient .3 L.2 L. The turbocharger and intercooler combination engine offers clear emission. The high powered diesel engine is packed with 5 Step multi pint common rail fuel injection systems that offer better fuel combustion and optimized NVH. The 16 valve cylinder head offers improve breathing and better fuel efficiency. Maruti Swift variants such as LXI. Maruti Swift is available in two versions – Petrol and diesel. and VDI come in steel wheels whereas the variants like ZXI & ZDI is available in alloy wheels. economical and offer tremendous performance. Maruti Swift is available in 14 inches wheels for the extraordinary look of the car. Maruti Swift comes with tubeless tyres which are puncture resistant and ensure you a very comfortable journey without tension of tyres. The DOHC valve configuration helps in precise and quick valve operation. Both the version of Maruti Swift has variants with many different features attached to it. LDI & VDI and 185/70 R 14 for ZXI & ZDI. The size of the tyre is 165/80 R14 for LXI. The petrol engine meets with Bharat Stage IV emission norms that make the car more greener and eco-friendly. The highly advanced K series engine of Maruti Swift offers great performance by delivering a power of 85 PS at 6000 rpm and a torque of 113 Nm at 4500 rpm. LDI. The petrol version of Maruti Swift is packed with 1. Maruti Suzuki Swift Engine Capacity & Performance: Maruti Swift is a very high performing and dynamic car with wealth of advanced technology and features in it. higher torque. cigarette lighter. 1248 cc DDiS engine which is known for its performance and fuel efficiency. This high powered engine offers a maximum power of 75 PS at 4000 rpm and a torque of 190 Nm at 2000 rpm. The inline type engine is packed with MPFI (Multi Point Fuel Injection) supply system that offers great fuel efficiency. The K series engine is very silent and reduces vibration even at high speed which enhances the driving comfort and pleasure.experience to the driver. antenna.
Maruti Swift is endowed with both active and passive safety features to safeguard you against the unexpected surprises that come in your way. Some other safety measures are key not removed warning. Maruti Suzuki Swift Handling & Safety: Maruti Swift is a very safe car with many advanced safety features. The availability of front and rear fog lamps in some variant of the car act as a safeguard against bad weather condition driving. The car offers a very safe drive to its passengers. The availability of Dual SRS Airbag in the car is a very important safety measure which helps in reducing the impact of collision and provides a cushioning effect in collision and jerk. one can drive Maruti Swift with great peace of mind. MP3. The seat belt with pretension limits the force in case of sudden braking and collision. With the availability of array of advanced safeguards. high mounted stop lamp which is clearly visible. The booster assist and ventilated disc brakes come handy when you have to brake at a short distance. FM/AM tuner and speaker in some variants of the car. This powerful braking system helps in de. WMA. The steering mounted audio controls are added . child lock. double horn. The front brakes of Maruti Swift are Ventilated Disc brakes and the rear one's are drum type which are very efficient in case of unexpected surprises in the road. Maruti Suzuki Swift Braking & Handling: Maruti cars are well known for its sound and dynamic braking system and so is Maruti Swift. The ABS (Anti lock Braking System) available in Maruti Swift helps the prevention of wheel locking in case of sudden braking and also contributes to car’s stability. The demister present in Maruti Swift makes a very clear vision for you even in the worst weather conditions. The halogen headlamps promises clear visibility to the roads and reduce the danger henceforth. Radio.roading and also helps in reducing the rate of skidding in slippery and watery roads.e. The electronic brake force distribution allows distribution of braking force between the front and rear wheels.accelerating car when the car is moving at high speed.in controlling the car in case of off. CD. Maruti Suzuki Swift Stereo & Accessories: Maruti Swift is packed with Integrated Audio System i. The collapsible steering wheel is also a great safeguard and minimizes the injury on impact. side impact beams etc helps you drive tension free when kids are on with you. The feature like ABS (Anti Lock Braking System) available in some variants of the car helps in preventing wheel lock up during panic braking. The Intelligent Computerized Anti Theft System assists you to track your crack and reduces the chances of unwelcome guests.
967 Rs. 5. This music system present in the car makes your journey very pleasant and enjoyable wherein you can listen to your favorite tunes while driving.41.308 Rs. Ex-Showroom Price Rs.81. 4.70.26.feature in the car that proves handy. 5.49.742 Rs. 5.65. 4.311 Rs.541 .255 Rs. Version Maruti Suzuki Swift LXi Maruti Suzuki Swift VXi Maruti Suzuki Swift LDi Maruti Suzuki Swift ZXi Maruti Suzuki Swift VDi Maruti Suzuki Swift ZDi PRICES AS PER SEPTEMBER 2011 Avg. 6.
.. REPCO LTD. COIMBATORE o Automotive instruments & speedometer cables in India. CHENNAI generation Largest manufacturer of Belts and Oil Seals in India .P. COIMBATORE o They manufacture Engine Bearings. Bushes and Thrust Washers. FENNER INDIA LTD. PUNE o Manufacturers of complete brake systems for automotive applications LUMAX INDUSTRIES LTD o Biggest manufacturers of Automotive Lights in India PRICOL LTD.LIST OF SUPPLIERS Maruti Suzuki has 200-odd vendors BIMETAL BEARINGS LTD.. AMALGAMATION VALEO CLUTCH LTD. Manufacturing Flywheel Ring Gears for entire range of vehicle KALYANI BRAKES LTD. CHENNAI o Leading manufacturer of Clutch Assemblies in India for the new vehicles. CHENNAI o A member of Amalgamations Group. I.
all of them have advantages and disadvantages. Human resource units use the sales forecasting (to plan personnel requirements and also as an input in collective bargaining). and to establish operating budgets. and for what exactly the sales forecasting will be used. The consumer feedback is used to estimate the expected consumption or purchases of the product. The forecasting of sales is one of the most important information tools for every management. The business world knows two types of sales forecasting methods and they are subjective methods and objective methods. Marketing units of firms find sales forecasting very useful (to plan marketing and sales programs and to allocate resources among the various marketing activities). Methods of demand/sales forecasting 1. human resources. In a company lot of units use the sales forecast for example top management. production. Usually decision makers use one or another forecasting method and their decision will depend on technical knowledge. forecasting implies predicting the future after studying and analysing the past and present data. This method has following advantages: . previous sales data. This has led to development of various new tools and methods for forecasting in the last two decades. to project cash flows. Production uses it to decide how much the company has to produce and in what time and to control inventories. where important strategic decisions need to be taken to optimize the efficiency of the resources and hence maximize the profits. Qualitative methods of forecasting are: consumer expectations.1Consumer Expectations Consumers are frequently interviewed with the help of questionnaires concerning their buying habits. there is a need for precision in the demand forecasts. Purchasing unit uses it to plan how much materials the company needs and in which part of the year/month/week or even day. Forecasting is of special importance in industries. 1. The meaning of sales forecasting grows as firms start to coordinate their own business in a world wide scale. Therefore.DEMAND/SALES FORECASTING Forecasting is a science of predicting the future by analyzing the previous data. finance. jury of executive opinion and Delphi technique. sales force composite. purchasing and marketing units. The company’s finance unit uses the sales forecasting to decide on capital appropriation. Qualitative Methods Qualitative Forecasts consider the range of factors which influence the demand. motives and intentions. Top management unit allocates resources among functional areas and to control operations inside and outside of the company by using the sales forecast. Thus. The science of forecasting helps firms to take strategic decisions to achieve their goals. These factors are then ranked in order of importance and each of them in turn is analyzed to reveal future trends.
1 Market test Company does the market test by placing a product in a few representative geographic areas to understand how well it performs and then projecting that experience to the whole market. 2. Also a summary of the spread of estimates is put into the summary. time and labour. but not with consumer goods. Disadvantages of this sales forecasting method are: • Company has to choose potential customers carefully and the number of customers has to be small. . statistical or formal methods. The explanation is added into the summary and the summary is given to all the participants of the forecast. These have also been called explicit. they have been specified so well that other researchers can replicate them and obtain the same forecasts.2 Delphi technique If a more accurate forecast is wanted from a group of experts and the effects of group dynamics has to be controlled. then the person gives an explanation why she or he made such and estimate. 1. • Works well with business to business goods. • Takes a lot of money. Ideally. These steps are repeated several times in the idea that repeated measurements will lessen the range of estimates and they will come together to a correct or true answer. The summary lists the median of each forecast figure. If someone answer differs a lot from the median. Delphi is based on iterative approach and it uses anonymous repeated feedback. • Practical for forecasting new-products. The forecast is made with the available knowledge the person has. • Depends on how precisely the users make their evaluations. Advantages of this forecasting method are: • The method gives the best understanding of consumers’ reaction to the product. Usually companies do this test for a new or improved version of an old product. • Insights give assistance in planning the market strategy. • Information about projected product can be very detailed. • The method permits evaluation of the success of the total marketing program. then a good technique to use is Delphi technique.• Forecast estimates straight from buyers. These methods usually rely on quantitative analytical approaches in developing the forecast. The people involved in the feedback give their own forecast about the subject and the feedbacks are gathered into a summary. The advantages of Delphi are: • The effects of group dynamics is reduced • Statistical information can be used The disadvantages are: • Can take a long time and is money consuming 2 Objective methods Objective methods are those that use well-specified processes to analyze the data. They study the summary and make a new forecast.
The decomposition method attempts to isolate four separate portions of a time series: the trend. fundamental change in demand and what portion is due to seasonality in demand. the forecast is developed by applying each factor in turn to the historical data. The difficulty and style of these analyses can differ extensively.• Has a good use for new and innovative products. the last three years’ sales. or any number of other periods. • Market tests takes lots of money and time. Once determined. However. The most easy assessment might use last year’s figures as the next year’s forecast. company might average the last two years’ sales. By using some kind of average of recent values. 2. and they should logically be given more weight.5 Decomposition method The Decomposition method of sales forecasting is typically applied to monthly or quarterly data where seasonal pettern is evident and the manager wishes to forecast sales not only for the year but also for each period in the year. Then the cyclical factor is estimated. seasonal and random factors. and number of periods that produce the most accurate forecasts of the trial data is used to develop the forecast model. The advantages are: . the analyst typically first determines the seasonal pattern and removes its impact to identify the trend.2 Time-series analysis A company can use different time-series analysis methods for forecasting sales. but if the company is new or is a growing company. The forecast would simply be the average that resulted. it considers the previous year’s sales to be the forecast for the next year. The number of observations included in the average is typically determined by trial and error. • Competitors start to do something about their products.4 Exponential smoothing Exponential smoothing is a type of moving average. For example. It is important to determine what portion of sales changes represents an overall. instead of weighing all observations equally in generating the forecast. After the three components are isolated. cyclical. exponential smoothing weighs the most recent observations heaviest. it remains constant. 2. for good reason. 2. it is possible to not care about the randomness of sales from one year to the other. Differing numbers of periods are tried. In using the decomposition method. Using this method can lead to large errors if there is much variation in sales from one year to the next. 2. then this easy method cannot be used.3 Moving average Moving average is a quite simple method of sales forecasting. • Often takes a long time to measure the exact level of initial and repeat demand. The most recent observations contain the most information about what is likely to happen in the future. The disadvantages are: • Competitors of the company can easily find out what is going on. Time-series analysis makes a forecast for the future sales on the base of historical data.
• Objective. seasonal. Thus one or more cross sections from additional time periods are added to enlarge the sample. Panel regressions are used when one wishes to explain differences across observations in a single period. cyclical.• Utilizes historical data. limited. but there are not enough observations in a single period to generate reliable results. • Ignores planned marketing effort. 2. or based on counts. discrete. Panel regression methods may handle models in which the dependent variable is continuous. • Factors for trend. • Final forecast difficult to break down into individual territory estimates. .6 Panel Regression A regression which includes both cross sectional and time series data. inexpencive. • Technical skill and good judgement required. Disadvantages are: • Not useful for new or innovative products. or product life-cycle phase must be accurately assessed and included.
Suzuki in return received a lot of help from the government in such matters as import clearances for manufacturing equipment (against the wishes of the Indian machine tool industry then and its own socialistic ideology). Suzuki's bid was considered negligible. Osamu in an article writes that it subtly massaged their (Indian delegation's) egos and also convinced them about the sincerity of Suzuki's bid. Nissan and Honda. After the death of Sanjay Gandhi. .CHOICE OF LOCATION A BRIEF HISTORY BEHIND CHOOSING GURGAON: Sanjay Gandhi owned the Maruti Technical Services Limited. the Indira Gandhi government assigned a delegation of Indian technocrats to hunt for a collaborator for the project. which ran into trouble and was liquidated.land purchase at government prices for setting up the factory Gurgaon and reduced or removal of excise tariffs. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota. This ensured that Suzuki conscientiously nursed Maruti Suzuki through its infancy to become one of its flagship ventures. HELP BY THE GOVERNMENT : While the major companies were personally represented in the initial rounds of discussion. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment. Chairman and CEO of the company ensured that he was present in all the rounds of discussion. Osamu Suzuki.
In order to multigate these risks. long term contracts dilute the benefits. 4.5 lakh.alloys(steel). they would quite likely force the competition to rethink their strategy. VARIANT Swift LXi Swift VXi Swift VXi (ABS) NON . The analysts predict the price of this premium hatchback to start from rs. There is another advantage in doing so considering in the capital city of delhi NCR road tax on the sub 4 lakh priced cars is comparatively lower at 2%. 4 lakh. long term contracts are helpful. They also help minimize the impact of growing input prices. And if they indeed do take the chance of Suzuki swift at a considerable lower price than Hyundai Getz. the company continues to enter into long term contracts based on its projections of prices. The company is said to be studying the prospects of launching the base model of rs 4lakh price tag. Delhi NCR is one of the major targeted markets and thus it might get the advantage of this policy.METALLIC PRICE 416485 443924 464962 METALLIC PRICE 416485 443924 464962 . non ferro alloys(allumunium). Maruti Udyog limited’s commodity price risks relates to higher costs due to changes in prices of inputs such as ferro. which is priced art a much higher tag of Rs. Conversely. if any. After launching cars for the masses for since so many years . In a volatile commodity market where your company gives top priority to ensuring smooth availability of inputs. india’s largest automobile manufacturer is now targeting the premium segment with their leatest model from suzuki’s stable. plastics and rubbers which go into the production of automobiles .COSTING METHOD AND COST REDUCTION TECHNIQUES Maruti is expected to take Hyundai heads on with the pricing of their upcoming maruti Suzuki swift car. This price range would practically rip apart Hyundai’s offering in Getz. of a decline input prices. Both the companies are known for their value based offerings and Maruti with their extensive service network and brand reputation for making reliable cars should get the customers’ nod over their competition. Cars having the price higher than 4 lakhs have to pay a 4% road tax.
non Alloy.VS With Current discounts a Fully loaded Swift with ABS. the company achieved savings of 707 million through 132804 employee suggestions. . Maruti Suzuki took a challenge named challenge 50:30 for reducing cost where productivity was improved by 50% and cost was reduced by 30%. Each employee contributes to cost reduction through suggestions. Another technique used by maruti Suzuki to reduce the cost of its products is through employee contribution. In the year 2008-09. No climate control model(2nd top most model) So its still a lot bang for buck than Getz. Alloys & Climate control costs very close to the non ABS. Now with the new Swift in town. The Swift stood for a value for money product in the premium hatchback segment. In fact it is the consumer who always pitted the Swift against the competition. Basically the Swift was the yardstick for the segment. we have decided to do the same and see if the new Swift has the potential to take over the mantle.
Hyundai. the birth of the KB12 series engine took place. offers the same design style as the old one. Its not only the good looks of the car. the kick was good enough. The good news for the small car buyers is that.09 lakhs. As for the interiors. they will get see price cuts up to Rs 16. The LXi trim available for Rs. At Rs. three wheelers. the new Swift is also lighter. Tata and Chevrolet. Small cars make 78% of the total car market in India and this reduction in the excise duty will increase in volumes for car makers like Maruti.Talk about the Swift and all you would find is a massive number owning or aspiring to own them.3 liter mill. longer and lighter by 20 kilos making it faster off the block. Maruti Suzuki had to do something more. then again. the budget also proposes to reduce excise duty on hybrid and electric cars. ex-showroom delhi. Not just was it an instant hit.000. The first version of the Swift back in 2005 took the country by a storm. Going the green way. this time around. the new kid on the block sure packed a punch. We don't have the tested figures yet.22 lakhs. This move will also make India a hub for small cars. With the first generation petrol motor being a naturally aspirated 1. it became the ultimate hot hatchback with a decent feel at a really affordable price tag. it lacked some significant features which came up in the other models of different makes as the competition grew. With a decent figure of 17. However.4.4. Enter the new Swift. With more manufacturers wanting to have the biggest slice in the hatchback segment for themselves. its responsive engine and cheap spares were good enough factors to take the country by a storm which it did.6 kilometers to a liter. the plastic quality is way better. but. the KB12 gets a Variable Valve Timing making it more efficient. it has a lot to do with when "You're the Fuel". the government had reduced the excise duty on small cars from 24 percent to 16 percent and in February 2008 it has reduced the current 16 percent to 12 percent. Car makers like Ford. small details have been taken care of and it surely is way ahead of what the old one ever could be.5 kilometers to a liter and 85 PS of power. with nextgen technologies and manufacturers working on the more powerful while being more fuel efficient engines. However. however. the LXi version was available with a 1. as the manufacturers plan to pass on the reduction on excise to the end user. . why are we telling you this? What matters more is the tilt steering and height adjustable driver and passenger seats and the tachometer which runs standard across all models. This move will give a push to the slowing down two wheelers market which has seen declining sales due to high interest rates. however.3 liter motor. Not only that. In February 2006. Not only has the Swift been a fun car to drive. The budget also proposes to reduce 4 percent excise duty on two wheelers. buses and chasis. despite having the premiumness a hatchback should have. Honda and Tata are not much happy as the price difference between small and big cars will increase much more. the ARAI claimed figure is 18. But. Also.
500 to Rs 18.000 and Rs 14.Hyundai has announced that the price cut on Santro could be between Rs 12. Zen Estilo. While.000 and Rs 16.000. GM plans to refund the price difference to those who bought cars after February 11. while that on Getz would be between Rs 14. The prices of their small cars could decrease between Rs 7. . Wagon R and Swift could see a drop from Rs 6.500 to Rs 14. The small cars from Maruti which are 800.000 and Rs 16. Omni.000. General Motors is also cutting he price of its small cars Spark and Aveo U-VA.000.000.000. the price cut on the newly launched i10 could be between Rs 12. Alto. Not only this.
In monopolistic competition. MC goods are best described as close but imperfect substitutes. In practice. and no business has total control over the market price. if consumer rationality/innovativeness is low and heuristics are preferred. the firm maintains spare capacity.Type of competition: As per the research done by the marketing department. the cross price elasticity of demand between goods in such a market is positive. Models of monopolistic competition are often used to model industries. because of brand loyalty. takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. In fact. style. even in the complete absence of government intervention. it can raise its prices without losing all of its customers. Consumers perceive that there are non-price differences among the competitors' products. in contrast to perfect competition. the type of completion faced is by the Maruti Suzuki Swift is monopolistic. In the long run. however. As MUI following monopolistically competitive market. The long-run characteristics of a monopolistically competitive market are almost the same as a perfectly competitive market. however. the market becomes more like a perfectly competitive one where firms cannot gain economic profit. This means in the long run. Producers have a degree of control over price. Technically. which is based on subtle product differentiation. including by using market power to generate profit. There are six characteristics of monopolistic competition (MC): Product differentiation: MC firms sell products that have real or perceived non-price differences. the differences are not so great as to eliminate other goods as substitutes. other firms enter the market and the benefits of differentiation decrease with competition. monopolistic competition can fall into natural monopoly. quality. a monopolistically competitive firm will make zero economic profit. . which has a perfectly elastic demand schedule. So as MUI has been following the same so the price has been decided by the close competition prevailing in the present market. the XED would be high. There are few barriers to entry and exit. Monopolistically competitive markets have the following characteristics: There are many producers and many consumers in the market. The goods perform the same basic functions but have differences in qualities such as type. This illustrates the amount of influence the firm has over the market. Two differences between the two are that monopolistic competition produces heterogeneous products and monopolistic competition involves a great deal of non-price competition. reputation. A firm making profits in the short run will nonetheless only break even in the long run because demand will decrease and average total cost will increase. it behaves like monopolies in the short run. Unlike perfect competition. This means that an individual firm's demand curve is downward sloping. However.
an MC firm has market power because it has relatively few competitors. Market power means that the firm has control over the terms and conditions of exchange. The source of an MC firm's market power is not barriers to entry since they are low. and location that tend to distinguish them from each other. Also the greater the degree of product differentiation . a firm could cut prices and increase sales without fear that its actions will prompt retaliatory responses from competitors. The firm can also lower prices without triggering a potentially ruinous price war with competitors. motor cycles. An MC firm can raise it prices without losing all its customers. cars and SUVs and many variations even within these categories. For example. For example.appearance. A product group is a "collection of similar products". For example. There are numerous firms waiting to enter the market each with its own "unique" product or in pursuit of positive profits and any firm unable to cover its costs can leave the market without incurring liquidation costs. The theory is that any action will have such a negligible effect on the overall market demand that an MC firm can act without fear of prompting heightened competition. the basic function of motor vehicles is basically the same . Rather. no sunk costs and no exit costs. The fact that there are "many firms" gives each MC firm the freedom to set prices without engaging in strategic decision making regarding the prices of other firms and each firm's actions have a negligible impact on the market. Yet there are many different types of motor vehicles such as motor scooters. How many firms will an MC market structure support at market equilibrium? The answer depends on factors such as fixed costs. The firm gives no consideration to what effect its decision may have on competitors. those competitors do not engage in strategic decision making and the firms sells differentiated . This assumption implies that there are low start up costs. Many firms There are many firms in each MC product group and many firms on the side lines prepared to enter the market.the fewer firms there will be at market equilibrium. Market power: MC firms have some degree of market power. economies of scale and the degree of product differentiation. Independent decision making Maruti Udyog I independently set the terms of exchange for its product. Free entry and exit: In the long run there is free entry and exit.the more the firm can separate itself from the pack . In other words each firm feels free to set prices as if it were a monopoly rather than an oligopoly.to move people and objects from point A to B in reasonable comfort and safety. the higher the fixed costs. trucks. the fewer firms the market will support.
Just look at the Swift’s blacked-out A-pillar and fighter-jet-like tapering window line to understand what we are talking about. So which one is it. Now here is the comparative analysis of Maruti Suzuki Swift with Honda Jazz The Jazz had it all. so many don’t even take notice of it. but it never sold as well as it could have. The downside. Both a PC and MC firm will operate at a point where demand or price equals average cost. Large windows. The MC firm maximizes profits where MR = MC. The result is excess capacity. it sits bang in Suzuki Swift territory. The mono-volume design of the Jazz and its large glass area make it look more mini-MPV than traditional hatchback. However. a very sporty rear and a wide. though. thanks to the extreme cab-forward design and brilliant packaging. Since the MC firm's demand curve is downward sloping this means that the firm will be charging a price that exceeds marginal costs. this car just doesn’t have the same sex appeal as the Swift. The second source of inefficiency is the fact that MC firms operate with excess capacity. brilliant Jazz or amazing Swift? Look at me. First. For a PC firm this equilibrium condition occurs where the perfectly elastic demand curve equals minimum average cost. The monopoly power possessed by an MC firm means that at its profit maximizing level of production there will be a net loss of consumer (and producer) surplus. is that it looks too much like the old Swift. Space Vs Funk: The Jazz is BIG on the inside. Problem is. Today however. A MC firm’s demand curve is not flat but is downward sloping. That was then.The new competitor for the Maruti Suzuki Swift in the market is Honda Jazz which hit the road very recently and making decent profits in the auto industry. Thus in the long run the demand curve will be tangent to the long run average cost curve at a point to the left of its minimum. despite some fresh detailing like those smart triangular headlights and interesting creases on the tail section. The demand curve is highly elastic although not "flat". the MC firm's profit maximizing output is less than the output associated with minimum average cost. That is. Honda broke the cardinal rule for pricing and the Jazz found too few takers when it was launched at a saloon car price.product. Inefficiency: There are two sources of inefficiency in the MC market structure. squat stance mean this car has attitude written all over it. the new Swift is substantially better than the car it replaced. at its optimum output the firm charges a price that exceeds marginal costs. look at me: The good thing is that both the cars have far from ordinary designs. Market power also means that an MC firm faces a downward sloping demand curve. Bigger headlights. a good seating position and a great view out make it agile and easy .
Slip into the Swift and it’ll seem as if the world has shrunk. there isn’t much to differentiate the two. But it’s a different story at the back. look distinctive. after a stint in the airy Jazz. The snug interiors. a feature missing on the Jazz altogether – the Honda also uses a tacky slider-type recirculation switch. two of the best: Both cars feature 1.there is space aplenty here. this rev-happy engine almost coerces you to hold gear for longer than you would otherwise. The Maruti feels a whole size smaller. headroom is an issue for taller passengers.4bhp per tonne. The driver’s seat in the top-end Jazz X has a height adjuster and comes adequately bolstered. But how are they on the road? Let’s start with the Jazz. the Swift’s dark plastics and small rear windows make you feel boxed in. you can lift. Switch the ignition on and the engine settles at a quiet idle.throttle responses are decent and in-gear acceleration is good too.2-litre engines with the Jazz having a 3bhp edge in terms of outright power. part. So the Jazz gets a tick mark from both regular as well as sporty buyers. though. Driver seat comfort in the Swift is excellent – the bolstering and flat backrest provide ample support even when driving hard. The quality of plastics is a notch up from the last-generation car and the centre console looks similar to the Kizashi’s with everything neatly laid out. and the large knobs for the AC controls are easy to find and operate when on the move.to drive. Also. split and even fold the back seat flat to give the Jazz station wagon-like practicality Motors. Where the Jazz totally eclipses the Swift is in terms of storage and boot space. In the city. with smart indents on their circumference. The steering wheel is good to grip and the dials. The new Swift’s K-Series engine gets variable valve timing and twin overhead camshafts while the Jazz engine features Honda’s single cam iVTEC system. has the better power-to-weight ratio of 86. . The lighter Swift. So. and because Honda has positioned the fuel tank in the centre of the car. especially in the back. The asymmetrical fascia looks funky and works well. on paper. With minimal vibrations to spoil the party. Climate control comes standard on the top-end Swift ZXi variant. While the rear seat is comfy with nice under-thigh and back support and decent legroom. A look at the back will reveal that rear passengers have seldom had it so good in a hatch . though. so it’s very comfortable. The slick-shifting and very light gearbox coupled with the well-weighted clutch make negotiating traffic all the more easier. Get going and you instantly note this is one special motor which simply loves to be revved.8bhp per tonne to the Jazz’s marginally less 84. do feel sportier. Hold on beyond the 3000rpm mark and there is an almost magnetic pull of the tacho needle to the redline.
And the winner is… The Maruti Swift is well styled both inside and out. It is only in the 40-100kph run in fourth gear that the Jazz is a full five seconds quicker than the Swift. the Swift scores big time.Like the Jazz. Light at low speeds. Floor the throttle and progress is quick till about 2500rpm but power seems to taper off mildly till you acquaint the tacho needle with the redline. The old Swift was always a great car to drive and the new one improves things further. but just about. A willing and stiff chassis means handling is sharp for the most part. The light clutch and smooth-shifting gearbox go well with this city-friendly nature of the car. On the whole. Driving over Mumbai’s monsoon-ravaged roads. but somehow the zesty nature of the older Swift is lost. The Jazz is a great car as well. The Jazz may lack the youthful appeal of the Swift and it may trail the Swift in maintenance costs. the Swift has the better ride too. we found the Swift needed fewer gear changes to keep up with traffic. we found the Jazz unsettled over sharp bumps while the new Swift felt pliant and composed. its steering weights up quite nicely as the going gets faster. the Swift engine is free-revving too. On part-throttle responses though. the Swift’s super-refined motor is even smoother. Driving the cars back to back. Push hard and there is a fair amount of roll too. the Swift is more fuel-efficient overall. is fun to drive. delivers good economy and is priced sensibly too. Yet. much more pronounced than that exhibited by the stiffersprung Swift. the Jazz has the upper hand. the Swift is actually better than the Jazz. And grippier rubber would have worked wonders for the car’s handling and overall driving manners. a helpful feature on Indian roads. Fun factor: Three rounds into this bout. Bottom-end grunt is good but the mid-range feels slightly laboured compared to the older car’s. the steering feels a little inconsistent and isn’t as accurate as we’d have liked but on the fun-to-drive scale. Comparing acceleration times. which is important. Interestingly. midsize car space and almost-MPV practicality. Its steering does offer more feedback at city speeds but there is an inconsistency in the way it weights up when speeds increase. The Jazz isn’t quite in the Swift’s league. And where the Jazz engine is smooth. But can the Jazz deliver the final knockout punch in terms of ride and handling? The answer is no. its point-and-shoot nature making it a hit with us. Yes. with a clever amalgamation of small-car dimensions. the Jazz is faster than the Swift but only marginally so on most counts. In all other areas the . the slightly more flexible and free-spirited nature of the Honda engine wins the Jazz this round.
skip and jump better than the Jazz.Shift is a genuine hop. And it is for this and this alone. the Shift wins this contest. .
demanding the reinstatement of 44 suspended colleagues who weren't taken back after a 33-day impasse with the management ended on Oct. Maruti produced 1. Problems facing by product (Swift) Distribution Problem Undeterred by ongoing stand-off with its workers at the Manesar plant. Maruti Suzuki India Ltd.500 workers at its Manesar plant. . As a solution of this problem. which suffered its first worker’s strike in last 10 years at its Manesar unit in June. Maruti had refused to reinstate 44 of the 62 sacked workers as part of its agreement with the striking employees. 1. ended after permanent workers agreed to sign the bond on Oct. distribution.Problems in relation to prices. 29 decision to halt operations at Manesar after it asked 950 workers to sign a "good conduct bond" before they could enter the factory.000 cars during the strike in Gurgaon. 1 and labor issues at a factory that supplies diesel engines and transmissions. The current labor unrest follows Maruti's Aug.. However. competition Problems facing by firm Manesar Issue Suzuki owns more than 50% of the Indian car market. in a clear indication that it does not hold the labor problems against the state. Maruti is also in talks to set up a 1-million-unit plant in Gujarat in what would be its first factory outside Haryana. which caused a production loss of six billion rupees ($122 million) and affected output of three Maruti models. and the company has been forced to cut output at its Gurgaon plant due to lower supplies of diesel engines and transmissions from Suzuki Powertrain India Ltd. down from 1. That labor issue. There hasn't been any production at Maruti's Manesar factory for long time.800 cars. the car maker plans to set up a cluster of new ancillary units that will supply essential auto components and parts for its cars being produced at Maruti's Manesar plant. costs. Maruti Suzuki India expressed confidence that production constraints will have no impact on supplies for the festive season sales.800 and compared with a normal daily production of 2. Two factories in northern India's Haryana state continues to be hit due to a strike by about 1.
But in reality waiting period of Swift is more than 10 months. Some of the competitors are as follow. these are many competitor cars in market and Swift faces competition with other cars of Maruti Suzuki as well. Factors affecting in this competition are as under.08 lakh units for its new Swift. Competition: Maruti Suzuki is having major competition with Hyundai as company. As per the company the diesel Swift has a waiting period of six months while that of the petrol variant is between three to five months.The company. Toyota Etios Liva J Hyundai i10 Magna Hyundai i20 Magna Honda Brio E MT Nissan Micra XE Chevrolet Beat LS These are the competitors of Maruti Swift LXi. This indicates flow in distribution channel of the company. Price Fuel Type Fuel Consumption Features . which has so far received bookings of 1. also said it is all poised to normalize supply of the model after being affected by the labor issue at the plant. While talking about the product Maruti Swift. There are many competitors as well.
” .CONCLUSION By studying various demand and supply factors affecting the automobile industry we can conclude that an upturn or downturn in this sector is due to an aggregate effect of multiple factors. These together govern the economies of automobile sector. Maruti Suzuki India Limited entered the Guinness Book of World Records by bringing together 342 swift’s at a car parade in Gurgaon. Maruti Swift is one of the most successful car in market. In case of Maruti Suzuki. “On 31 May 2010. There are very less problems in Maruti Swift but company did to improve in the field of distribution of the car.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.