RURAL MARKETING

ASSIGNMENT

Submitted by-
33 Reuben Dmello
40 Sagar Srivastava
15 Chaitanya Gandhi
MARUTI SUZUKI
 ABOUT THE
COMPANY

A subsidiary of Suzuki- a Japanese automobile and motorbike manufacturer, Maruti Suzuki India
Limited is an Indian automobile manufacturer. The Japanese car major held 56.21% stake in
Maruti Suzuki as on 31 December 2017.
Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company
accounting for over 50 per cent of the domestic car market.
The company is engaged in the business of manufacturing purchase and sale of motor vehicles
and spare parts (automobiles).
The company had started in 1982; however, it commenced the production of automobiles a year
later in 1983. The very first model of Maruti, Maruti Suzuki 800, made its way to Indian roads in
December 1983.
Currently, the company has a sales network of more than 3,100 outlets covering 2,000 locations,
up from about 1,600 outlets in 2014, a growth of almost 100 per cent over the last five years.
 PRODUCTS
The company has nine subsidiary companies
namely Maruti Insurance Business Agency
Ltd, Maruti Insurance Distribution Services
Ltd, Maruti Insurance Agency Solutions Ltd,
Maruti Insurance Agency Network Ltd, Maruti
Insurance Agency Services Ltd, Maruti
Insurance Agency Logistics Ltd, True Value
Solutions Ltd, Maruti Insurance Broker Ltd
and J J Impex (Delhi) Pvt Ltd.
At the moment, the company manufactures
hatchbacks like Alto, Wagon R, Celerio, Ritz,
Swift, Baleno and Ignis. The sedans are DZire
and the Ciaz; UVs include Gypsy, Ertiga,
Vitara Brezza, S-Cross, Omni and the Eeco.
 MARKETING STRATEGIES ADOPTED BY MARUTI
SUZUKI TO CAPTURE RURAL INDIA

• Maruti Suzuki started the ‘Ghar Ghar Mein Maruti’ and ‘Mera Sapna Meri
Maruti’ campaigns to target the rural segment.
• 3,000 local villagers were nominated as resident dealer sales executives of
Maruti Suzuki to promote the products and were supported by over 186 extension
counters.
• Maruti Suzuki even tried to influence the opinion leaders of the village (like
Sarpanch) by taking them for factory visits, conducting detailed profiling, their
consumption patterns and their choices
• The automaker aggressively marketed the brand at rural sporting events to sales
fairs (Grameen Mahotsav) to SMS campaigns for Gram Panchayat.
• Maruti Suzuki has started Video on Wheels campaign in which the villagers get
to see the screening of Maruti Suzuki ads while sitting in an air-conditioned
environment created in the back of a truck
 PRICING

• One of the key drivers of volumes of sale for Maruti Suzuki has
been its ‘value for money’ strategy.
• By providing light weight yet safe cars, Maruti is able to cut down
on costs and price its cars competitively, in some cases
undercutting the competition by 7-10 percent.
•  Maruti’s low cost of ownership, affordable spares, long service
intervals ensure that the pricing strategy of Maruti is implemented
not just at the time of sale but also after the car has been bought.
• The price of the products i.e. cars ranges from 2.94 lakhs to 12
lakhs.
 PLACE

• They have four plants three located at Palam Gurgaon Road Gurgaon
Haryana and one located at Manesar Industrial Town Gurgaon
Haryana.
• Maruti ‘s service network spans most states of India and is spread
across 1400+ cities manufactured at 2 factories, Manesar and
Gurgaon with an annual capacity exceeding 15 lakh cars per annum.
• The place strategy in the marketing mix of Maruti covers not only its
presence of dealers but also service centres, Service is a major
revenue generator for the company, thanks to its wide network.
 PROMOTION & ADVERTISING STRATEGY:

• Having decades of presence in India enables Maruti to

leverage its brand value and brand perception well. It also
helps Maruti cut down on promotional costs. Few Strategies
adopted by the company in rural areas are-
• ROAD SHOWS
• RADIO
• PRINT MEDIA
• Broadcasting media
• Hence, a 360 branding approach is followed in the
promotional strategy of marketing mix of Maruti. The ad
campaigns often highlight the huge service network of the
brand
 RURAL MARKET SHARE

• The rural market share of Maruti increased from 3.5 percent of

total sales five years ago to 26 percent in 2012.
• In 2009 after the economic meltdown, Maruti Suzuki started
paying more attention to rural markets.
• Maruti Suzuki started the the ‘Ghar Ghar Mein Maruti’ and
‘Mera Sapna Meri Maruti’ campaigns to target the rural segment
• The rural market contributes 40 per cent to our sales, which was
7-8 per cent 10 years back.
• Both rural and urban sales were down as compared to last year,
but rural sales were relatively better than urban areas, he added.
• Maruti Suzuki’s sales fell 53.7% year-on-year to 53,139 units in
June. That performance however was better than May, when the
company sold 13,888 units. The sales fell to 76,599 units in the
April-June quarter of 2020-21 as compared with 402,594 units
in the year-ago period.
 FUTURE

• The rural market is a relatively untapped area for

automakers.
• Maruti Suzuki plans to increase the number of its outlets in
rural India from the present 900 to around 1300 and sales
executive from 12000 to 15000 in the next two years.
• Rural outlets will account for nearly 50 per cent of Maruti’s
network compared with just around 35 per cent now..
THANK YOU