Professional Documents
Culture Documents
Indian people are very cautious about their money transactions and
insurance one of the most important factors in their life, especially of the car
owners. Maruti has tied with different companies like Bajaj Allianz, National
Insurance Company, New India Assurance etc. to bring this service to its
customers. From identifying the most suitable insurance scheme for the
customer to making the process of insurance claim is taken care by the local
dealer. Maruti insurance is an easy way for their customers to get their car
repaired and claim the insurance money in anywhere in India. All you have to
do is go to the near by dealer.
III) True Value Service & Vast distribution and customer care chain
True value service helps the customers to buy second hand vehicles for a
reasonable price and get the customer care facilities, warranty, guaranty and
other facilities by the company itself for some years. People can also sell their
vehicles or exchange it for some other model using the same facility.
Maruti Suzuki is known for its customer service chain all over India. There
are more than 2000 Maruti authorized customer service centers and more than
1000 sales outlets all over India which provides all the aforementioned facilities
by the company.
the
end
of
every
financial
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http://www.slideshare.net/hedaurahul/business-policy-and-strategic-management-of-marutisuzuki
In Maruti Suzuki the newly hired employees are first put through an orientation
program where the trainer makes the candidates familiar with the working
environment as well as the culture of the company. This process is then
followed by an induction process. In this stage the employees are send to their
respective departments in order to familiarize with the working conditions,
people , Health and Safety Training, Laws and Policies, Assessment Criteria etc.
The new recruits are trained both technically and behaviorally. The former
training is intended to enhance the subject knowledge of the trainee in their
own respective field of work. Whereas the later focus on the projected behavior
of the trainees in certain situations and the efficiency with which they can
perform in such situations.
In 2012 the company authorized its managers and supervisors to recruit
workers they consider trust worthy as part of a new Human Resource policy
aimed at building confidence between the management and workers.
Maruti Suzuki India (MSI), is planning to bring in several new and face lifted
products in the next one year.
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development,
information
technology,
new
business
and
mechanistic structure is use full only for organizations which do not require
frequent changes in the processes and the environment is stable. The company
aims at achieving perfection at each functional level.
The structural flexibility is not allowed in the structure as the environment in
the automobile sector is almost stable. Each function stays separate at the
functional level and the communication and cooperation among the functional
levels are responsibility of someone at the top of the hierarchy. Communication
stays vertical from departments to division and then the board of directors. The
main decision is always taken by the board of directors.
The company has been trying to use a project based structure to handle the
problems efficiently and effectively in view of the increasing competition in the
automotive sector. This change of structure was introduced initially around two
years back. In this new system the senior and middle level executives are
grouped into teams that would work on specific goals. Around 30 teams of 8-10
members are formed. These teams would then be given specific mandates in
terms of cost reduction, new product development etc. They will also be
allotted with the required resource support and authority in order to implement
the project.
Strategic Planning of Maruthi Suzuki
The heart of any business s is a strategy planning. It's a broad process that
can address the whole business.
strategy of MSIL
1) Increase and strenthen the man power.
2)Increase in salary to sales agent.
3) Provinding incentives.
4)Focus on mini markets segments to beat stiff competition.
5)Developing capabilities and internal resources to finance its expansion and
growth.
The company started with Suzuki holding the minor stakes of the company
while Government of India holding the major stakes.Today, Maruti and its
partners employees are more than 75,000. It's manufacturing facilities are
located at two locations, Gurgaon and Manesar, both south of New Delhi.
PRODUCT STRATEGY
The product strategy of Maruti is that it's focus is on the catering the needs of
almost all the segments. Maruti Suzuki offers 16 brands.They are Maruti 800,
Maruti Omni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A Star, Maruti
Wagon R, Maruti Zen Estilo, Maruti Swift,Maruti SX4, Maruti Kizashi, Maruti
Eeco, Maruti Ertiga, Maruti Grand Vitara & 150 variants spanning across all
segments. Thus company creates products which are unique and valued and it
is attaining the advantage either through differentiation via new features,
improving performance, after sales service.
PRICING STRATEGY
The companys pricing strategies are such that every customer can own a car
or else upgrade to another one of there own choice. The company has offered a
different model at a price difference of around 10,000. It follows a price-pointstrategy where in they have all products are available in almost all possible
price points.
DISTRIBUTION STRATEGY
Maruti Suzuki has two manufacturing facilities in India. Both manufacturing
facilities has a combined production capacity of 14,50,000 vehicles annually.
Maruti has a strong dealer network in india. It was one of the first company in
the country to understand the importance of after sales service in high
involvement products like cars. Maruthi has the largest distribution & Service
network comprising of over 400 sales showrooms, over 600 dealer workshops,
and 1900 Authorized Service Stations spanning across over 1190 cities
unparalleled in the country. It has 30 Express Service Stations on 30 National
Highways across 1,314 cities in India. Almost of all service stations are
managed on franchise basis where Maruti trains the local staffs.
PROMOTION STRATEGY
The promotional strategy of Maruti Suzuki is very effective. The company
emphasise on road safety and environment friendly products. The company has
launched road safety mission under which 5,00,000 people will be trained in
the next three years. This will be done through two channels - Institute of
Driving Training and Research (IDTR) and the Maruti Driving Schools spread
across the country. Of the 5, 00,000 people to be trained, at least 1,00,000 will
be people from underprivileged section of society, who are keen to take driving
as a profession. The company has always promoted the concept of "Reduce,
Reuse, Recycle" (3R's). The company has taken help of all the promotional tools
like radio, television, road shows, print media, workshops and seminars to
promote their cars
SWOT ANALYSIS
STRENGTHS:
Brand image
WEAKNESSSES:
OPPORTUNITIES:
Government subsides.
Tax benefits.
THREATS:
renewable energy resources is also a very important thing. So they also think
that production of more fuel efficient or automobiles which do not completely
depend on fossil fuels is very important and such automobiles will be the future
of the world. So it is very necessary to make the younger generation and next
generation aware of the importance of conservation of energy resources and
finding alternative and put an end to the energy crisis. For such awareness, the
company conducts many awareness programmes all over India. They mostly
concentrated on top engineering colleges and ITIs in India. In some ITIs, the
company itself funds for some diploma courses on fuel efficiency and energy
conservation and top technicians and engineers from the company give
lectures on the topics.3
As an automobile manufacturer, Maruti is really concerned
regarding the road safety, not only the drivers but also the passengers and
other people on the road. Joining hands with many state governments, like
Karnataka state government, Maruti started a programme on the awareness of
road safety and importance of safe driving. They have conducted road shows
and talks on the topics of road safety. They've conducted many programmes
regarding the importance of road safety and safe driving for school and college
students, without using any government funds. As per the statistics, thousands
of students took part in such programmes and it was a first of the kind venture
by any automobile manufacturer in India.
Road shows and lectures are not the only contribution of Maruti Suzuki
Inc to road safety in India. They have started many driving schools, Maruti
Driving Schools (MDS), in different urban parts of India. In these driving
schools, skilled drivers who are specially trained within the company give
lessons on safe driving and road safety to the common people.
Maruti Suzuki
employees and expects to be able to enlist their families and friends as well.
Called e-Parivartan, the e standing for employee, Maruti Suzukis volunteer
programme was launched last year to create a platform that would enable
Maruti employees to engage in social and community work. The programme
offers a wide variety of volunteering options mentoring, teaching, community
development, raising environmental awareness and organizing health camps.4
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http://www.marutisuzuki.com/our-policies.aspx
http://www.indiacsr.in/en/csr-initiatives-of-maruti-suzuki/
around
their
Manesar
plant.
Maruti
focuses
on
the
health,
Conclusion
In this age of globalization and liberal economy, more than a country,
India is seen as one of the largest and fastest developing market in the world.
India is not just a market, when it comes to number of people who are able to
pay for whatever they need, India is any companies best option to invest. In
the last decade, we can see a huge increase in the number of car companies
who invested in India. Even companies like Benz, BMW etc. are about to set
their own manufacturing facilities in India. Cars of companies like Audi, BMW,
Volvo etc. are not a big deal for Indians anymore. The big automobile giants like
General Motors and Volkswagen already set their foot on our country. But all
these foreign giants are
Except in the luxury class, Maruti is still giving them tough competition and all
these years they succeeded in maintaining their share in the market
successfully. Through their effective management system, when it comes to
prizing, customer care services, distribution system and quality, Maruti has
successfully strengthened their position in the minds of Indians. From all the
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http://www.slideshare.net/tusharkharate1990/maruti-suzuki-csr-activity
http://www.slideshare.net/sanjaysan1/maruti-suzuki-strategicmanagement-12583528
http://www.slideshare.net/hedaurahul/business-policy-and-strategicmanagement-of-maruti-suzuki?from_action=save
http://www.ijaiem.org/Volume2Issue5/IJAIEM-2013-05-17-036.pdf
http://www.marutisuzuki.com/our-policies.aspx
http://www.slideshare.net/tusharkharate1990/maruti-suzuki-csr-activity
http://www.indiacsr.in/en/csr-initiatives-of-maruti-suzuki/
http://www.slideshare.net/hedaurahul/business-policy-and-strategicmanagement-of-maruti-suzuk