PRESENTATION OF

BUSINESS POLICY & STRATEGIC MANAGEMENT-II

MARUTI SUZUKI

SUBMITTED TO: Mr. Nikhil Shah

SUBMITTED BY:
Raval Chandrashekhar R

Department of Business & Industrial Management

Veer Narmed South Gujarat University
Surat
 INDIAN FOUR WHEELER
INDUSTRY
 De-licensing in 1991 has put the Indian automobile
industry on a new growth track, attracting foreign

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auto giants to set up their production facilities in the
country to take advantage of various benefits it
offers.
 This took the Indian automobile production from 5.3
Million Units in 2001-02 to 10.8 Million Units in 2007-
08.
 In 2006-07, the Indian automotive industry provided
direct employment to more than 300,000 people, 2

exported auto component worth around US$ 2.87

INDIAN FOUR WHEELER
INDUSTRY

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3
 MARUTI UDYOG LIMITED
 Maruti Udyog Limited (MUL) was established in Feb 1981
through an Act of Parliament.

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 A license and a Joint Venture agreement were signed with the
Suzuki Motor Company of Japan in Oct 1983, by which
Suzuki acquired 26% of the equity and agreed to provide
the latest technology as well as Japanese management
practices.
 Phase wise history
 Two phases pre liberalization.
 1983-86 & 1986-92
 Two phases post liberalization
 1992-97 & 1992-2002
 Full privatization in 2003
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 KEY STRATEGIC INITIATIVES
BY MARUTI
 Turnaround Strategies Maruti Followed
v 84% of the market share till 1998

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v Maruti complete a Rs. 4000 mn expansion project which
increased the total production capacity to over 3,70,000
vehicles per annum.
v launch new models for different segments of the market. In its
redesign plan, Maruti, launches a new model every year,
reduce production costs by achieving 85-90% indigenization
for new models.
v revamp marketing by increasing the dealer network from 150
to 300 and focus on bulk institutional sales, bring down
number of vendors and introduce competitive bidding.
v Shift in focus from “sell what we produce” to "marketing and
customer focus".
5
Current Strategies
Followed By MUL

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 PRODUCT STRATEGY

6
 Current Strategies Followed
By MUL
BRANDS OF MARUTI SUZUKI
Historious car is Maruti 800 “Change ur life”

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

 Omni – 1984, “Fits all”

 Gypsy – 1985 “King”

 Wagon-R – 1999,”For the smarter race”

 Alto – 2000, Currently the largest selling car in India.

“Lets go”
 Versa(2003) “The joy for travelling together”

 Zen Estilo(2005) “ Shape ur world”

 Swift (2005)
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
 Current Strategies Followed
By MUL
BRANDS OF MARUTI SUZUKI
Maruti Suzuki SX4 (May 2007) “Men are back”

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

 Suzuki Grand Vitara Sports Utility Vehicle - July 2007.

Imported “Play it your way”
 Maruti DZiRE Sedan Version of swift - March 2008
“The heart car”
 Suzuki Alto (Sold in India as the Maruti A-Star)
Launched in 2008 December. “Stop @ nothing”
 Suzuki Splash (2009)

 Ritz “Live the Moment” (2009)

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 Eeco “Happiness Family Size” (2010)
Current Strategies Followed
By MUL
 PRODUCT POSITIONING & TARGETING:-


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v Product Line Products
v A1 800
v A2 Alto, Zen ,Wagon –R, Swift, A-star
v A3 DZiRE, Sx4
v SUV Vitara, Gypsy
v C - Class Omni, Versa, Eeco
 The Gypsy targeted the paramilitary forces and the police.
This resulted in complete control of Maruti over the
market .
 A special cell was made to make direct dealing of Gypsy with
the government & the army.
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v
 Targeting: ­ Selective Specialization   
MARKET  URBAN SEMI­URBAN RURAL
PRODUCT
A1 Yes Yes

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A2 Yes Yes Yes
A3 Yes Yes
SUV Yes
C­Class Yes Yes Yes

Targeting: ­ On the basis of income Group

INCOME GROUP  Rs. 2­3  Rs. 3­5  Rs.5> 
PRODUCT Lacs./Annum Lacs./Annum Lacs./Annum
A1 Yes
A2 Yes Yes
A3 Yes
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SUV Yes
C­Class Yes Yes Yes
 Positioning

PRODUCT Target Customers Benefits Value Proposition

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A1 A consumer who wants Durability and A car which gives
car. Performance Durability in low cost.

A2 A consumer who wants Spaciousness . A spacious small car

Small & spacious car. without extra cost.

A3 A consumer who wants Design, Style and A car design with style
more comfort car Luxury. and luxury.

SUV Lifestyle Oriented Rigidness, Luxury and A Vehicle that provides

consumers. Comfort . the luxury and Comfort
of a car.

C-Class A consumer who wants More spacious car. A big car with
car for commercial use reasonable price 11
Current Strategies Followed
By MUL
 PRICING STRATEGY

 Maruti  c ate rs  to   all  se gme nt  and  has  a  pro duc t  o ffe ring  at  all 

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pric e  po ints.
 The ir  pric ing  strate gy  is  to   pro vide   an  o ptio n  to   e ve ry 
c usto me r  lo o king  fo r  up  gradatio n  in  his  c ar.  The ir  so le  
mo tive   o f  having  so   many  pro duc t  o ffe ring  is  to   be   in  the  
c o nside ratio n  se t  o f  e ve ry  passe nge r  c ar  custo me r  in  India. 
He re  is ho w e ve ry pric e  po int is c o ve re d.


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Current Strategies Followed
By MUL
 PRICING STRATEGY
SR.No BRAND VARIANTS PRICE IN SURAT (Rs.)
1 GRAND VITARA XL7 16,97,000.00

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2 MARUTI ZEN ESTILO LXi 3,54,636.35
VXi 4,11,748.87
LX 3,24,754.73
VX 5,39,000.00
3 MARUTI SWIFT LXi 4,17,337.61
VXi 4,68,035.99
ZXi 5,30,409.82
4 MARUTI WAGON­R LX 3,26,844.49
LXi 3,71,522.83
AX 4,45,825.29
VXi 3,75,063.09
VXi ABS 4,03,907.22
5 MARUTI GYPSY ST 5,14,871.55
13
HT 5,33,808.07
VXi 5,37,226.73
Current Strategies Followed
By MUL
 PRICING STRATEGY

6 MARUTI ALTO STANDARD 2,34,287.26

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LX 2,65,775.78
LXi 2,83,342.58
XCITE 2,96,842.57
7 MARUTI 800 STD. MPFI 1,96,795.39
A/C MPFI 2,16,788.31
8 MARUTI ASTAR LXi 3,58,392.72
ZXi 4,23,282.12
VXi 3,86.872.72
9 MARUTI EECO 7 STR 2,85,186.72
5 STR 2,69,151.18
5 STR + A/C 2,99,151.18
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Current Strategies Followed
By MUL
 PRICING STRATEGY

10 MARUTI RITZ LXi 3,01,285.36

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ZXi 4,95,822.20
VXi 4,57,751.05
11 MARUTI SX4 ZXi+ AT 8,55,034.07
ZXi+ MT 7,55,766.12
VXi 6,85,251.94
12 MARUTI SWIFT Dzire LXi 4,86,214.04

ZXi 6,25,215.72
VXi 5,30,821.30
13 MARUTI OMNI STD 2,27,473.32
AMBULANCE 2,58,270.94

CARGO 2,02,402.89
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 Current Strategies Followed
By MUL
 PLACE STRATEGY


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v 600 New car sales outlets covering 393 cities.

v 265 ‘Maruti True Value’ outlets spread across 166 cities.

v 2628 Maruti Authorized Service Stations, covering 1220

cities.
v Tie up with Adani group for exporting 200,000 units through
Mnudra port Gujarat


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 Current Strategies Followed
By MUL
 PLACE STRATEGY


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v 400 new car sales outlets in next three years.
v 150 new true value shops in next three years.
v 1200 new Maruti Authorized Service Stations in next three
years.
v Tie up with other distributors for Exports.
v 2,628 The number of workshops that provide customers with
maintenance support in 1220 cities.
v Maruti Call Center.
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
 Current Strategies Followed
By MUL
 PROMOTION STRATEGY


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v Advertising
 TV Ads
 Print Ads
 Radio Ads

v Information Advertising
 BTL - Sponsorships
 TV shows - India’s Got talent
 Place Advertising – Bill boards
 18
 Current Strategies Followed
By MUL
 PROMOTION STRATEGY


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v Sales Promotions
 Product warranties
 Premiums (gifts)
 Trade shows
v Maruti and CRM
 by launching a website for the customers in the year 1998
& Maruti Auto Card
v Maruti True Value Out let
v Maruti Call Center
v Maruti insurance
 19
 COMPETETIVE STRATEGIES
 To gain back its lost share Maruti launched Zen ,Alto and
WagonR.

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 During 2003 and 2004, MUL visualized and implemented a
strategy for its dealers to increase their profitability levels in
view of increased competition.
 '2599' offer-In 2004, MUL introduced the '2599' offer under
which a consumer could buy an M-800 by paying an EMI of Rs
2,599 only, for a period of seven years.
 Alto was launched keeping in mind that it will take over Maruti
800 market in future.
 Maruti is interested to take on Nano, with a stripped-down
version of Alto, instead of the 800 model.
 This is mainly because Alto is compatible with the Bharat 20
Stage-IV norms for CO2 emissions and other criteria.

 COMPETETIVE STRATEGIES
 The launch of Swift and phasing out Zen was a strategic move.
 The major reason behind this decision was cannibalization of

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Wagon R and Swift due to overlapping of price band.
 Maruti positioned swift to knock out Getz, it does! Because of
swift’s competitive pricing and good quality.
 Maruti is offering Rs. 3000.00 more margins to dealer on the
sale of Wagon-R as compared to Zen. This is to let dealer
push Wagon R instead of Zen.
 After rolling out refreshed version of Estilo, Versa, SX4, Maruti
is now gearing up to upgraded versions of Alto, WagonR and
Swift that may be cheaper than the existing models, to gear
up against global players like Toyota, Honda and Volkswagen
that are planning small car launches in India.
 21


 CONCLUSION
 In segment A1 price always plays a vital role MSL was the
sole manufacture till 2000, Maruti 800 was the hot seller till
2005.

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 In segment A2 growth of automobile was 57.6% where Maruti
captures a share of 69%. Its products like alto and Zen are
two role models with these segments.
 In A3, SUV and C Class segment Maruti has number of
competitors and has a less growth. In this segment also
MSL lack of more models than other company.
 Taking the sale trend in to account MSL sold a record number
of vehicle 7, 14,842 in 2007-08 including 53,024 units of
export. In 2007-08 it record a turnover of INR 145,922
million which rose to 178,603 million in 2007-08 showing a
growth of 20%. 22

 BIBLIOGRAPHY
1. www.marutisuzuki.com

2. http://www.marutisuzuki.com/prices.aspx

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3. http://www.marutisuzuki.com/showroom.aspx

4. http://www.icmrindia.org/casestudies/catalogue/Marketing/Market%20Expansion
%20Strategies%20of%20Maruti%20Udyog.htm

5. http://www.wheelsunplugged.com/ViewNews.aspx?newsid=5340

6. http://economictimes.indiatimes.com/archive.cms?year=2010&month=2

7. http://business.mapsofindia.com/automobile/car-manufacturers/

8. Kiran Motors Limited

 New Opera House, Nr. Centre Point,
 Near Jain Gurudev Petrol Pump, 23

 Ring Road, Surat.


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Thank You
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?