Company Analysis

Maruti Suzuki

Submitted By – Sam Peter Georgie

Roll No – 19224
Section MB
 Introduction
• Maruti Udyog Limited was founded by the Government of India in 1981, only to merge with the
Japanese automobile company Suzuki in October 1982. The first manufacturing factory of Maruti
was established in Gurugram, Haryana, in the same year.

• Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a 56.21% owned subsidiary of the Japanese car and motorcycle
manufacturer Suzuki Motor Corporation.

•  As of July 2018, it had a market share of 53% of the Indian passenger car market.

• Maruti Suzuki manufactures and sells popular cars such as the Ciaz, Ertiga, Wagon R, Alto K10 and
Alto 800, Swift, Celerio, Swift Dzire, Baleno and Baleno RS, Omni, baleno, Eeco, Ignis, S-Cross, Vitara
Brezza and newly launched S-Presso small SUV. The company is headquartered at New Delhi. 

• In May 2015, the company produced its fifteen millionth vehicle in India, a Swift Dzire

2
 Product Portfolio
• Maruti Suzuki Ciaz
The Ciaz is a mid-size sedan . It competes with the Honda City, Hyundai Verna, VW Vento and Skoda Rapid. The Ciaz look
premium, comes feature loaded and offers an option of petrol and diesel engines , with a hybrid that use SHVS technology.
The Maruti Suzuki Ciaz is a popular choice in its segment.
• Maruti Suzuki S-Cross
The S-Cross is a crossover vehicle. It has SUV type looks and is spacious too. It comes in two diesel engine options, which are
a 1.3-litre and a 1.6-litre engine. The S-Cross will soon get a facelifted version too. The S-Cross mainly competes with the
Hyundai Creta and Renault Duster.
• Maruti Suzuki Vitara Brezza
The Vitara Brezza is a compact SUV. It is a sub-4 meter that operates in a fast growing segment. This compact SUV is feature
loaded and is currently offered with only a 1.3-litre diesel engine. The Vitara Brezza competes with the Ford Ecosport and
Fiat Avventura Urban Cross.
• Maruti Suzuki Baleno
The Baleno is a premium hatchback. The Baleno is based on a new platform and comes with contemporary features. It is
offered in both petrol and diesel versions. The highlight of Baleno is its space and styling . It is a good performer too. The
Maruti Suzuki Baleno competes with the Hyundai i20 Elite and Honda Jazz.
• Maruti Suzuki Ignis
The Ignis is the latest product from the Japanese manufacturer. The igneous is a sub-
compact crossover that arrives in a relatively new segment altogether. The Ignis stands
out due to its radical styling, funky interiors and tall stance. It comes with a host of
features, petrol and diesel engines and also an AMT in both petrol and diesel versions.

• Maruti Suzuki Alto

Compact and budget friendly car which is one the most selling cars in india. The Maruti
Suzuki alto competes with the Renault KWI.

• Maruti Suzuki WagonR

Maruti Suzuki WagonR price has always been considered to be economical and worthy
for the features and specifications that the car presents. The Maruti Suzuki WagonR
competes with Hyundai Santro,Tata Tigor,
 Market Share
60.00%

50.00% 50.60%

40.00%
Sales

30.00%

20.00%

17.38%

10.00%
7.48%
5.21% 4.59% 4.31%
3.03% 2.51%
0.00% 1.55% 1.10%
Maruti HYUNDAI Mahindra TATA HONDA Toyata Renault Ford Kia Volkswagen
SWOT analysis of Maruti Suzuki

• Strength
• Maruti Udyog limited (MUL) is in a leadership position in the market with a market share of 48.74
• Major strength of MUL is having largest network of dealers and after sales service centers in the country.
• Good promotional strategy is adopted by MUL to transfer its thoughts to the peopleabout its products.
• Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units from 7,65,533 units in the
previous fiscal. It recently attained the 10million domestic sales mark.
• Strong Brand Value and Loyal Customer Base are big strengths for MUL
• There are around 15 vehicles in Maruti Product portfolio. Has good product lines with good fuel efficiency
like Maruti Swift, Diesel, Alto etc
• Alto still beats the small car segment with highest number of sales
• MUL is the first automobile company to start second hand vehicle sales through its True-value entity.
• MUL has good market share and hence it’s after sales service is a major revenue contributor.
Weakness
• Low interior quality inside the cars when compared to quality players like Hyundaiand other new
foreign players like Volkswagen,Nissan etc.

• Government intervention due to having share in MUL.

• Younger generations started getting a great affinity towards new foreign brands

• The management and the company’s labor unions are not in good terms. The recent strikes of the
employees have slowed down production and in turn affecting sales.

• Maruti hasn’t proved itself in SUV segment like other players.

Opportunities in the SWOT analysis of Maruti Suzuki

• MUL has launched its LPG version of Wagon R and it was a good move
simultaneously
• MUL can start R&D on  electric cars for a much better  substitute of the fuel.
• Maruti’s cervo 600 has a huge potential in tapping the middle class segment and
act as a strong threat to Nano
• New DZire from Maruti will capture the market share and expected to create the
same magic as Maruti Esteem(currently not available)
• Export capacity of the company is giving new hopes in American and UK markets
• Economic growth of the country is constantly increasing and the government is
working hard to increase the gdp to double digit.
Threats in the SWOT analysis of Maruti Suzuki

• MUL recently faced a decline in market share from its 50.09% to 48.09 % in the previous year(2011)

• Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many small players like
Volkswagen- polo. Ford has shown a considerable increase in market share due to its Figo.

• Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to its respective
competitor’s segment

• China may give a good competition as they are also planning to enter into Indian car segment

• Launch of Hyundai’s H800 may result in the decline of Alto sales

 BCG Matrix in the Marketing strategy of Maruti Suzuki –

• With most of the brands of MSI are popular among customers and are preferred over the rivals in the same
segment because of low maintenance cost thus Brands like Celerio, Alto, Alto K10, Eeco, Vitara Brezza,
Baleno, Ignis, S-Cross, Ertiga.

• The brand continues to hold high market share in their segments and thus feature as Stars for the company.

• While Swift, Swift Dzire and Wagon R have been the Cash Cow for the company in their respective segment.
While Ciaz as a brand hasn’t been able to make a mark in Sedan segment and Gypsy along with Omni have
lost their market share over the years thus all three continues to a question mark for the company.
• Some of the brands like Zen Estilo, Versa, SX4, A-Star over the years
started to appear in Dog segment and has thus been discontinued by
the company in the last couple of years.
 Marketing mix of Maruti Suzuki
Product in the Marketing mix of Maruti Suzuki

•  It manufactures various types of cars and sells them in the market. Its various cars are
Alto,Ritz,Swift,Celerio,WagonR,Dzire,Zen,Sx4,Kizashi,Omni,Eeco,Ertiga,Grand Vitara

• One of the key features of products of Maruti Suzuki is that these products are made keeping the common man in
mind. None of the products are high in price, and neither they have features which make them pricey. However, the
products are known for their durability, service, pick up, car design and most things which you expect from a basic car.

• The tertiary product of Maruti company is its service. Besides its products, Maruti also provides services such as an on
road service by its vehicle that is operated for emergencies round the clock.

• Another service product is annual maintenance contracts as well as service centers which offer services to Maruti
cars. Maruti service centers are present across the country and they have the highest number of service centers in
India. This makes a huge difference in decision making when you are not in an urban area.
Place in the Marketing mix of Maruti Suzuki

• In the earlier stages, the company Maruti imported all its cars. This caused dissatisfaction in the
minds of local manufacturers. In the year 1983 Maruti 800 was released in the Indian market and
local production started henceforth from the month of December in 1983. The plant in Gurgaon
managed to extend its capacity to forty thousand units. In 1987, Maruti exported its first batch of
nearly five hundred cars to Hungary.

• In the year, 1995 Maruti opened its second manufacturing plant with a capacity of manufacturing
200,000 units per year.
• The manufacturing plant at Manesar was opened in the year 2007.
• By March 2014, Maruti Suzuki had offered dealerships to nearly nine hundred and thirty three 
dealers in India and in six hundred and sixty six cities and towns of the country
• Maruti also has thirty stations for express services on thirty highways across various cities in India.
Price in the Marketing mix of Maruti Suzuki

• The pricing strategy of Maruti as both penetrative and competitive

• Maruti Suzuki has a pricing policy that is based on many factors. It makes a proper evaluation of the market
by studying the most important fact that how much is a customer able to pay for a car and what are
his needs

• The research team of the company makes an analysis of the current market trends, the competition, the cost
of raw materials, the economicfactors governing the market, the distribution charges, cost of advertisement,
the dealers profit and the profit of the company
• Maruti has always emphasized more on volume than on prices and it is the reason for their continued
success.

• The numerous service stations are handled on franchisee basis and have become major revenue earners for
Maruti Suzuki.
Promotions in the Marketing mix of Maruti Suzuki

• The first things which Maruti does to promote its product is to use all types of
media when launching a new product or a new variant.
• Maruti uses a very distinctive promotional strategy to market its products. The
main emphasis is on the road safety measures.
• Advertisements are telecast in the visual media and the print media such as
televisions, radio, newspapers, magazines, road shows, seminars and workshops.
• The famous actor Ranveer Singh has acted in promotional campaigns for this
company and has been its brand ambassador.
• The advertising strategy of Maruti Suzuki has been distinctive and informative.
They have continued to touch the hearts of the consumers through its products,
services and even its promotional activities.
 Segmentation

Geographical Demographic Psychographic Behavioral

 Geographical Segmentation

 Country wise reach.

 For Urban and Semi Urban
areas.
 Demographic Section

Income base segmentation

Low Medium High

2-5 lakh 5-8 lakh 8 lakh and above

Alto 800 Swift Ciaz
K10 Desire Ertiga
Celerio Baleno S-cross
 Family Size

small large
 Psychographic Segment
 It focuses middle class people.
 Company also has sports oriented
cars.
 Behavioral
Segmentation
Benefit Sought

Road Warriors Generatio Price shoppers

n

Ciaz swift Alto-800

 Usage
Rate/Frequenc
y
Heavy Product Medium Low
Use Product Product
Use Use
Diesel Petrol/Diesel Petrol
COMPETITORS
ANALYSIS
YEAR 2019 UNIT SALES IN SALES OF MID
COMPACT SIZE SEDANS
SEGMENT
MARUTI SUZUKI  65,673  Honda City 4357
HYUNDAI 18908 VOLKSWAGE 2403
MOTOR IND. N VENTO
TATA MOTORS 8748 MARUTI SUZUKI 1,786
Ciaz
FORD 5608 Hundai Verna 1828
VOLKSWAGEN 3486
SKODA 1556
 Maruti Suzuki PESTLE Analysis
• Political Factors:
• Political factors that affect the sale and revenue of automobile companies like Maruti Suzuki are rules and
regulations formed by the government.
• The policies which are laid by the government for the automobile sector need to be followed by Maruti Suzuki.
• Taxation and labor laws, affect the overall revenue of the company if the taxes increase then the company has
to increase its product price, and there is also an increase in labor laws by the government.High skilled labor
finds it easy to get a job in the automobile sector due to these labor laws. According to the target market, the
company manufactures small cars so that it can target economically low-income consumers.The company needs
to abide by the rules and regulations while exporting or importing its counterparts from the international
market.
• Economic Factors:
• The economy of a country affects the sales and revenue of an automobile company like Maruti Suzuki. As the
economy of India currently, is facing a downfall so the automobile sector is facing an economic crisis.
• Maruti Suzuki is the leading automobile company in India but due to the economic downfall, its sales
decreased by 32.7 percent in August 2019.
• An increase in interest and inflation rate will result in a negative impact on the growth if the company.
• The oil price is a major factor in determining the sale of the company, as the oil prices are rising people are not
willing to buy the cars and thus the sale decreases.
• The manufacturing sector has grown by around 10 percent per annum in the last few years. But due to the
economic slowdown this year, the company has curtailed its manufacturing.
Social Factors:
• Socially Maruti Suzuki has done a lot for the people, Maruti Suzuki believes in serving enhanced customer
requirements, and perceived social value.
• Maruti has set up many welfare camps, took initiative for the education of the underprivileged, has adopted
energy-saving technologies, reducaed water wastage, taken care of road safety, etc.
• Maruti Suzuki has set up its driving schools to assure every person learns the right approach and to minimize the
risk of accidents. Maruti has always fulfilled and delivered the needs of common people.
• To cater to the needs of the youth, Maruti has also launched Maruti Genuine Accessories which extends stereo
systems, carpets, body covers, and many other car care products for its huge customer base.

Technological Factors:
• The automobile sector always needs to be updated in technologies to consider driving safety needs and
innovations in the model.
• The company invests a lot in research and development to improve engine features. Maruti Suzuki is involved in
the manufacturing of fuel-efficient and small car engines. For its highest selling car Alto it launched a CNG kit.
• The company applies next-generation KB series engine in its new hatchback car A-star. The company developed
the LPG/CNG/Hybrid system for the MPI engine to use as the alternate fuel technology.
• The company has included a virtual design review to its Research and development department to assure the
virtual validation to reduce the cycle time and development cost of manufacturing.
 Legal Factors:

• Maruti Suzuki has to follow the highest standards of corporate governance. All the legal laws need to be
followed by the company to take care of the safety of the consumers.
• The company has evolved a legal compliance scheduling and management software by which specific tasks are
given to every individual. The customers can contact any time for their queries to the secretarial and legal
department.
• Maruti Suzuki is involved in international trade, so it has to follow the trade laws of every country involved.
Increased level of regulations and privatization of the automobile sector also affects the sale of Maruti Suzuki.

Environmental Factors:
• Maruti Suzuki enables a continuous process of promoting recyclable and reusable car parts. Maruti is also
practicing the 3 R model - Reuse, Reduce, Recycle for a long time.
• Cars which are economical and eco-friendly are introduced by the company like hybrid cars.
• In August 2010, the company took an initiative to introduce environmentally friendly cars which are fitted
with CNG option across the vehicle segment which included Eco, Alto, Estilo, Wagon R, . Thus Maruti became
the first-ever automobile company to introduce and manufacture CNG fitted models of car.
Reference
 www.financialexpress.com
 http://www.carwale.com/comparecars/hyundai-creta-vs-marutisuzu
ki-s-cross/
 www.google.com
THANK YOU