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Summer Training Research Project Report

On
MARKETING STRATEGIES OF MARUTI SUZUKI
INDIA PVT LTD.

For the partial fulfillment of the requirement of
MASTER OF BUSINESS ADMINISTRATION
Affiliated to Mahamaya Technical University !oida "U#P#$
"%&''(%&')$
Under The Guidance o! Su"#i$$ed "%
Mr. Pan&a' Ku#ar Mr. Pu(h&ar )ada*
Ro++ No.,-./01102
*!+T Management School
,(- .no/ledge Par0(++ *reater !oida " *# 1# !agar$
SUMMER TRAINING PRO3E4T REPORT
'
A4KNO5LEDGEMENT
The present /or0 is an effort to thro/ some light on 6MARKETING STRATEGIES
OF MARUTI SUZUKI INDIA PVT LTD.7. The /or0 /ould not have 2een
possi2le to come to the present shape /ithout the a2le guidance supervision and help
to me 2y num2er of people#
3ith deep sense of gratitude + ac0no/ledge the encouragement and guidance
received 2y my organi4ational guide Mr# OM S5ARMA "Mar0eting Manager$ and
other staff mem2ers#
+ convey my heartful affection to all those people /ho helped and supported me
during the course for completion of my Project Report#
Mr. Pu(h&ar )ada*
Ro++ No.,-./01102
%
DE4LARATION
+ here2y declare that the Summer +nternship Report conducted at 6MARKETING
STRATEGIES OF MARUTI SUZUKI INDIA PVT LTD.7 su2mitted in partial
fulfillment of the requirement of Ma($er o Bu(ine(( Ad#ini($ra$ion "M1A$ at
GNIT Management School Greater Noida.# +t is my original /or0 and the same
has not 2een su2mitted for the a/ard of any other 6egree7diploma 7 fello/ship or
other similar titles or pri4es#
Mr. Pu(h&ar )ada*
)
PREFA4E
Passenger cars mar0et is a highly competitive mar0et in the automo2ile sector and one
of the oldest company operating in the same is Maruti Udyog 8td# From 2eing the
undisputed leader in the A' segment after its inception to 2eing the mar0et leader
/ith a share of 9)#': in ';;<(;9 the companies share in the %&&'(&% slipped to a
disappointing =<: 2ut later in the year %&&) company again regained its strong
position /ith a share of >=:# For the year %&&>(&, the mar0et share of MU8 is
predicted to 2e around >&:#
The reasons for these fluctuations /ere the advent of glo2al and ne/ competitors in
the mar0et i#e 5yundai 5onda Tata Mitsu2ishi etc# 6elays in introducing ne/
models helped competition to ni22le a/ay at Maruti?s commanding mar0et share#
5yundai launched the Santro "Septem2er ';;9$ 6ae/oo the Mati4 "Octo2er ';;9$
and Tata Motors> the +ndica "March ';;;$# All these models 2egan to offer stiff
competition to Maruti# After the decline in is mar0et share the company reali4ed that
the profile of the +ndian car mar0et had changed# The A% segment /as gro/ing faster
than the 2read and 2utter Maruti 9&& segment# Maruti also reali4ed that leaving the
2asic 9&& model unchanged for over '> years had 2een a strategic@ 2lunder#
Maruti reali4ed the need to ma0e up for lost time# +n ';;; it launched t/o ne/
models 1aleno and 3agon R# 1aleno /as targeted at the premium segment /hile
3agon R priced a little a2ove the Aen /as positioned as a multi utility vehicle# 1y
the early %&&&s Maruti had finali4ed plans for a more complete product range# The
company announced it /ould launch one ne/ model every ,('% months /ith price
gaps of a2out Rs# %>&&&# +n %&&& Maruti introduced BAltoB "premium small car$
especially for eCport mar0et# Maruti also launched Dersa the first Multi Purpose
Dehicle in Octo2er %&&'# +n the follo/ing years the company got involved in R E 6
and thus launched its revised models of Fsteem Maruti 9&& Aen etc# in spite of these
launches and increase in sales volume the company?s leader position is under threat#
+n the light of the facts stated a2ove the company should rethin0 its mar0eting
strategies so as to maintain its position and tac0le competition else it should 2e ready
to eCit#
=
On the 2asis of secondary data analysis /e have tried to 2ring out some concerns for
the company the 0ey issues that is should focus upon the 0ind of mar0et situation
that the company should eCpect in the mar0et in the coming year and the possi2le
steps it can ta0e so as to cur2 the threat posed 2y the rival companies#
An attempt has also 2een made to 2ring out the core competencies and strengths of
the company so that it can use the same to cover its /ea0nesses face the threats and
grasp the opportunities# The macro(environment factors that act as influencers in the
automo2ile sector have also 2een 2rought out in the report#
>

TABLE OF 4ONTENTS
TOPI4 PAGE NO.
48APTER 9 , INTRODU4TION ,92-
'#'# Overvie/ of +ndustry as a /hole '
'#%# Profile of the Organi4ation 9
'#)# Pro2lems of the Organi4ation )=
'#=# -ompetition +nformation )>
'#># S#3#O#T Analysis of the Organi4ation )'
48APTER 9 - OB3E4TIVE : MET8ODOLOG) 2292.
%#'# Significance ))
%#%# Managerial usefulness of the study ))
%#)# O2jectives )=
%#=# Scope of the study )=
%#># Methodology ))
48APTER 9 2 4ON4EPTUAL DIS4USSION 209;/
48APTER 9 < DATA ANAL)SIS ;=900
48APTER > ; FINDINGS : RE4OMMENDATIONS 0/9=,
ANNE?URES
BIBLIOGRAP8)
,
48APTER9,
INTRODU4TION
<
,.,. O*er*ie@ o Indu($r% a( a @ho+e
Indu($r% Proi+e
The 2irth of the car as /e 0no/ it today occurred over a period of years# +t /as only
in '99> that the first real car rolled do/n on to the streets# The earlier attempts
though successful /ere steam po/ered road(vehicles#
The first self(propelled car /as 2uilt 2y !icolas -ugnot in '<,; /hich could attain
speeds of up to , 0ms7hour# +n '<<' he again designed another steam(driven engine
/hich ran so fast that it rammed into a /all recording the /orld?s first accident# +n
'9&< FranGois +saac de Riva4 designed the first internal com2ustion engine# This /as
su2sequently used 2y him to develop the /orld?s first vehicle to run on such an
engine one that used a miCture of hydrogen and oCygen to generate energy#
This spa/ned the 2irth of a num2er of designs 2ased on the internal com2ustion
engine in the early nineteenth century /ith little or no degree of commercial success#
+n '9,& thereafter Hean Hoseph Ftienne 8enoir 2uilt the first successful t/o(stro0e gas
driven engine# +n '9,% he again 2uilt an eCperimental vehicle driven 2y his gas(
engine /hich ran at a speed of ) 0ms7 hour# These cars 2ecame popular and 2y '9,>
could 2e frequently espied on the roads#
The neCt major leap for/ard occurred in '99> /hen the four stro0e engine /as
devised# *ottile2 6amlier and !icolas Otto /or0ed together on the mission till they
fell apart# 6aimler created his o/n engines /hich he used 2oth for cars and for the
first four /heel horseless carriage# +n the mean/hile un0no/n to them .arl 1en4
9
/as in the process of creating his o/n advanced tri(cycle /hich proved to 2e the first
true car# This car first sa/ the light of the day in '99,#
The season of eCperiments continued across the seas in the United States /here 5enry
ford 2egan /or0 on a horseless carriage in '9;&# 5e /ent several steps for/ard and in
'9;, completed his first car the quadricycle in '9;,# This /as an automo2ile
po/ered 2y a t/o cylinder gasoline engine# The ford motor company /as launched in
';&) and in ';&9 he catapulted his vehicle model t ford to the pinnacle of fame#
-ontinuing /ith his innovations he produced this model on a moving assem2ly line
thus introducing the modern mass production techniques of the automo2ile industry#
The modern car therefore comes from a long list of venerated ancestors and its
lineage /ill hopefully gro/ longer as /e progressI
/ith the invention of the /heel in =&&& 1#-# man?s journey on the road of
mechani4ed transport had 2egun# Since then he continually sought to devise an
automated la2our saving machine to replace the horse# +nnumera2le attempts reached
conclusion in the early '<,&s /ith the 2uilding of the first steam driven tractor 2y a
French captain !icolas Haco2 -ugnot# +t /as ho/ever left to .arl 1en4 and *ottlie2
6amlier to produce the first vehicles po/ered 2y the internal com2ustion engine in
'99># +t /as then that the petrol engine /as introduced /hich made the car a
;
practical and safe proposition# The cars in this period /ere more li0e the cars on our
roads today#
3ith cars came the era of speed The first ever land(speed record /as esta2lished
a2out a '&& years 2ac0 in '9;9# -ount *aston de -hasseloup(8au2at of France drove
an electric car "in Acheres near Paris$ at a speed of );#%= miles per hour# This flagged
off the era of J/heels racing? /hich lasted till ';,= after /hich jet and roc0et
(propelled vehicles /ere allo/ed# Then on/ards it has 2een one 2ig journey###on the
roads#
5yundai?s mar0et share has increased from '>: in %&&% to '<: in %&&)# Though the
mar0et share of Maruti Udyog is constant at >,:# Telco "Tata Motors$ has also gained
mar0et# 1ut to gain second position in the mar0et in just > years is really
commenda2le# 5yundai has 2een gro/ing ever since its inception unli0e other
multinationals /ho have 2een losing ground /ith each passing day#
An O*er*ie@! Au$o#o"i+e Indu($r% in India
The automo2ile industry is one of the largest in terms of employment and value
addition# As a leader in product and process technologies for the manufacturing
sector it has 2een accepted as one of the important drivers of economic gro/th#
*lo2al trends indicated that the auto mar0et has moved from the gro/th and
development phase to the consolidation phase# The Hapanese automo2ile majors
2esides technological innovations implemented some modern management
philosophies /hich /ere gradually adopted 2y the automo2ile industry of the United
States and other Furopean countries# -urrently almost fifty percent of the glo2al
passenger car production comes from three countries vi4# the US "%&:$ Hapan
"';:$ and *ermany "'%:$# +n the commercial vehicle category the share of the US is
=, per cent follo/ed 2y Hapan "'':$ and -hina ";:$#+n 2oth these categories of
vehicles +ndiaBs share in the total /orld production is ' per cent#
The first motorcar on the streets of +ndia /as seen in '9;9# Then for the neCt fifty
years cars /ere imported to satisfy domestic demand# 1et/een ';'& and %&Bs the
automo2ile industry made a hum2le 2eginning 2y setting up assem2ly plants in
Mum2ai -alcutta and -hennai# The import7assem2ly of vehicles gre/ consistently
'&
after the ';%&Bs crossing the )&&&& mar0 in ';)&# +n ';=, Premier Automo2ile 8td
"PA8$ earned the distinction of manufacturing the first car in the country 2y
assem2ling B6odge 6eSotoB and BPlymouthB cars at its .urla plant# 5industan Motors
"5M$ /hich started as a manufacturer of auto components graduated to manufacture
cars in ';=;# +ndian roads /ere ruled 2y Am2assador -ar from 5industan Motors and
the Fiat from Premier Auto 8td# for many of the initial years
+n ';>% the *O+ as0ed assem2ly plants /hich did not have plans to set up
manufacturing facilities to shut operations# As a result *eneral Motors Ford and
other assem2lers closed operations in the country# The year /as ';>= and this
decision of the government mar0ed a turning point in the history of the +ndian car
industry# The *O+ also had a say in /hat type of vehicle each manufacturer should
ma0e# Therefore each product /as safely cocooned in its o/n segment /ith no fears
of any impending competition# Also no ne/ entrant /as allo/ed even though they
had plans of a full(fledged manufacturing program# The restrictive set of policies /as
chiefly aimed at 2uilding an indigenous auto industry# 5o/ever the restrictions on
foreign colla2orations led to limitations on import of technology through technical
agreements# +n the a2sence of adequate technology and purchasing po/er the car
industry gre/ at a snailBs pace in the ,&?s# The demand for cars in ';,& /as to the
tune of '><'=# +n the neCt t/o decades the num2er increased to )&;9; i#e# a -A*R
of only )#> per cent#
''
+n the early 9&Bs The *O+ entered the car 2usiness /ith a <=: sta0e in Maruti Udyog
8td "MU8$ the joint venture /ith Su4u0i Motors 8td of Hapan# The very face of the
industry /as changed for ever in ';9) /ith the entry of pu2lic sector Maruti Udyog in
a joint venture /ith the Su4u0i -orporation of Hapan # -ar sales gre/ 2y =% per cent in
';9> after Maruti 9&& /as launched# Than0s to MU8 car sales registered a -A*R of
'9#, per cent i#e# from ';9' to ';;&#
+n ';9> the *O+ announced its famous 2road 2anding policy /hich gave ne/
licenses to 2road groups of automotive products li0e t/o and four(/heeled vehicles#
Though a li2eral move the licensing system /as still very much intact# MU8
introduced BMaruti 9&&B in ';9) providing a complete facelift to the +ndian car
industry# The car /as launched as a Kpeoples carK /ith a price tag of Rs=& &&&# This
changed the industryBs profile dramatically# Maruti 9&& /as /ell accepted 2y middle(
income families in the country and its sales increased from '%&& units in FL9= to
more than %&&&&& units in FL;;# 5o/ever in FL%&&& this figure came do/n to
'9;'9= units due to rising competition from MARUT+Bs BSantroB TelcoBs +ndica and
6ae/ooBs BMati4B#
MU8 eCtended its product range to include vans multi(utility vehicles "MUDs$ and
mid(si4ed cars# The company has single handedly driven the sales of cars in the
country from =>&&& in FL9= to =&;;>' cars 2y FL%&&& cornering around <;#,:
mar0et share#3ith increasing competition from ne/ entrants this mar0et share has
plummeted to almost ,%: in FL%&&&#
A 2rief )(year do/nturn till ';;) and car sales 2ounced 2ac0 to register a '< per cent
gro/th rate in ';;<#Since then the economy slumped into recession and sales of cars
remained quite stagnant FL;< and FL;;# The Financial year %&&& has ho/ever 2een
the turnaround year for the Auto industry /ith the economy loo0ing up# The industry
achieved volume sales of ,)99'> units as against =&;;>' units in ';;; thus
crossing the half million mar0 for the first time# Therefore at present the -A*R
2et/een FL;, and FL%&&& stands at ',#, per cent# "Former finance minister
Manmohan SinghBs li2erali4ation policy /as major driver /hich led to industry
undergoing this complete transformation#$ Over/helmed 2y ne/er models from ne/
and eCisting players had to an impressive shift from a constrained supply situation to a
'%
surplus one# 3ithin the past decade a2out )& models have entered the +ndian mar0et
/ith a num2er of models still a/aiting launch# The de(licensing of auto industry in
';;) opened the gates to a virtual flood of international automa0ers into the country
/ith an idea to tap the large population 2ase of ;>&mn people# Also the lifting of
quantitative restrictions on imports 2y the recent policy is eCpected to add up to the
flurry of foreign cars in to the country#
Many companies have entered the car manufacturing sector to tap the middle and
premium end of car industry# The ne/ entrants are 6ae/oo "Mati4$ Telco "+ndica$
and MARUT+ "Santro$ in upper end of economy car mar0et# *M Ford Peugeot
Mitsu2ishi 5onda and Fiat have entered the mid(si4ed car segment and Mercedes(
1en4 is in the premium end of mar0et# -ar manufacturers li0e Malyasia 2ased Proton
are also in line to hit the +ndian ramp#
The +ndian passenger car industry is relatively recent in origins# FCcept the u2iquitous
Am2assador and the Premier PadminiBs there /as not much moving around /ith an
+ndian tag# The restrictive policies of the +ndian government did not allo/ foreign
players to set shop in +ndia and in the a2sence of adequate technology and purchasing
po/er it resulted in the slo/ gro/th of the industry even after a long time since
independence# The demand for cars increased from '><'= in FL,& to )&;9; in FL9&
at a -A*R of only )#>:# The entry of Maruti Udyog 8td a *o+ HD /ith Su4u0i of
Hapan in ';9) /ith a so(called KpeoplesK car and a more favora2le policy frame/or0
resulted in a -A*R of '9#,: in car sales from FL9'(FL;&#
After /itnessing a do/nturn from FL;& to FL;) car sales 2ounced 2ac0 to register
'<: gro/th rate till FL;<# Since then the economy slumped into recession and this
affected the gro/th of the automo2ile industry as a /hole# As a result car sales
remained almost stagnant in the period 2et/een FL;< and FL;;# 5o/ever /ith the
revival in the economy FL%&&& turned out to 2e a significant year for the industry in
/hich it recorded volume sales of ,)99'> units as against =&;;>' units in the
previous year# Thus the -A*R for the period FL;, ( FL%&&& stands at ',#,:#
On the 2asis of price the +ndian car industry can 2e classified into economy or the
BsmallB car "up to Rs&#)mn$ mid(si4e "Rs&#)(&#>mn$ luCury car "Rs&#>('mn$ and
')
super luCury car segments "a2ove Rs'mn$# Fconomy segment dominates /ith a
mar0et share of a2out 9&: of total car sales in FL%&&&#
Ta0ing into consideration the rise in eCpenda2le income levels and necessity of
personal transportation as a result of inefficient or deficient pu2lic transportation
means the demand for cars is eCpected to increase# FL%&&& /as an indicator of the
gro/th phase to follo/ registering a %&(year high gro/th rate of >,:# The second
highest gro/th /as recorded in ';9> at =%: /hen Maruti had entered the mar0et#
Riding on the popularity of the small car segment coupled /ith the 2oost in sales of
the mid si4e segment total sales gre/ 2y >,:# 5o/ever such high level of gro/th is
highly unsustaina2le in the long run given the fact that there is an as yet unutili4ed
capacity in the industry# This /ould ma0e the question of survival important and
carma0ers /ould have to play their cards /ell to remain in contention# Moreover
sales gro/th in FL%&&& /as calculated on a lo/er 2ase of FL;;#
FCports are eCpected to increase as a result of over capacity in the domestic car
industry and the governmentBs policy to 2ring in a more li2eral regime on the foreign
eCchange front# The flood of ne/ entrants into the car industry as a result of
li2erali4ation has led to a complete transformation of the sector# The car segment is
flooded /ith ne/ models from ne/ and eCisting players a visi2le shift from a
constrained supply situation to a surplus# +n the last decade or so as many as )&
models have invaded the mar0et ma0ing it a case of em2arrassment of
riches# Moreover a lot many models are /aiting to hit the ramp 2y the end of the year#
The capacity of car production has increased su2stantially in the last three years and is
eCpected to gro/ manifold in the coming years# The lo/ capacity utili4ation /ill
force a mar0eting /ar 2et/een the car manufacturers# The USM ,#9 2illion +ndian car
industry has registered a -A*R of '<: 2et/een ';;9(%&&) and is projected 2y
A-MA "Auto -omponents Manufacturers Association of +ndia$ to gro/ at a '>:
-A*R till fiscal %&'%# The car 2uyer /ill 2e the major 2eneficiary of the mar0eting
/ar in the segment as they /ill 2e a2le to get technologically 2etter products at good
terms and conditions# 1ut /ith an eCpected sha0e out the threat of discontinuation of
a model is also high
'=
,.-. PROFILE OF T8E ORGANIZATION AT MARUTI UD)OG
LTD.
4o#Aan% Proi+e
The company /as incorporated in ';9' to ta0e over the assets of the erst/hile Maruti
8td# Maruti 8td set up in Hune ';<' had 2een /ound up 2y a 5igh -ourt order in
';<9# The assets of Maruti 8td /ere then acquired 2y the *overnment under the
Maruti 8td "Acquisition And Transfer of Underta0ings Act ';9&$#
The first product Maruti 9&& /as launched in ';9=# +n ';9> the all(terrain vehicle
*ypsy /as launched and Maruti sold its >&&&&th vehicle# The Maruti '&&& /as
launched in ';;& and the Aen in ';;)#
The Fir($ 4u($o#er
Mr# 5arpal Singh Maruti?s first customer proudly received the 0eys of the Maruti
9&& car from the Prime Minister Smt# +ndira *andhi on 6ecem2er '= ';9)#
-ar Mar0et Scenario
3hen Maruti 2egan operations in ';9) there /ere only t/o other car companies in
+ndia and the total si4e of the +ndian passenger car mar0et /as a measly =&&&& units
per year# From the start Maruti caught the imagination of +ndian car customers and
launched four ne/ models including a hatch2ac0 a mini multipurpose van an entry
sedan and a SUD over the neCt decade# Fach of these models /as an instant dra/
'>
/ith the +ndian consumers# Su4u0i Motor -orporation increased its sta0e on t/o
occasions "%,NN =& NN >& NN controlling sta0e and 2rought it to >& per cent in the
mid ';;&s "and to >=: /ith privati4ation in %&&%company manufactures passenger
cars at its factory in *urgaon 5aryana# +ts installed capacity of )>&&&& vehicles is
eCpected to rise to =>&&&& in the year ';;;# The companyBs models include the 9&&cc
small car Fsteem Aen and *ypsy#
+n the car segment it had a mar0et share of 9): in FL;9 /ith sales of )=>)&) cars#
For the period April B;9 to Hanuary B;; MU8 car sales have dropped 2y ,#=: to
%,),9' compared to %9',;< cars for the corresponding period for FL;9#
The company is a significant eCporter /ith eCports to over >& countries# 6uring
FL;9 eCports also /itnessed a drop of %,#9<: to %=<>< cars# For the period April
B;9 to Hanuary B;; MU8 car eCports dropped 2y '&: to '<'>> compared to ';&>=
cars for the corresponding period in FL;9#
+n August B;9 the company launched the diesel version of the Aen that is po/ered 2y
a '>%< cc engine supplied 2y Peugeot -itreon Motors France# The company also
intends to launch a diesel version of the *ypsy and a ne/ model in the 9&& cc
segments#
The issue resulted in a major dispute /ith SM- dragging the *O+ to the +nternational
-ourt of Ar2itration# At that time the *O+ /as led 2y the United Front government#
The industry minister at that time Mr# Murasoli Maran even started scouting for a
ne/ partner to replace SM-# The issue /as finally resolved in Hune ';;9 /hen 1HP
led government too0 over at the center# A compromise /as /or0ed out 2et/een the
t/o partners /herein it /as decided that 1has0arudu /ould retire on )'st 6ecem2er
';;; instead of the earlier scheduled time of %&&%# Hagdish .hattar eCecutive director
/as made the Hoint Managing 6irector and /as scheduled to ta0e over as managing
director from 1has0arudu in Hanuary %&&&#
+n 6ecem2er B;9 MU8 slashed the prices of its 9&&cc and Aen cars 2y a2out Rs%=
&&& and Rs>' &&& respectively# This has helped MU8 to restrict the slide in its
mar0et share due to entry of ne/ car manufacturers# As a process of its
disinvestments in PSU the *O+ is seriously considering disinvesting its holding
',
MU8 in the domestic mar0et# 1ut there have 2een no announcements regarding this
from the company#
Hagdish .hattar /ould have made an eCcellent po0er player (( the managing director
of Maruti Udyog rarely lets any emotion sho/ on his countenance# These days
though aggression is clearly /ritten on his face# 5e needs that aggression# .hattar got
an unenvia2le tas0 on his hands#
3hen .hattar had ta0en charge at Maruti in August last year he had pinpointed the
reason 2ehind MarutiBs rapidly dropping mar0et share# Maruti depended just too
heavily on a single product (( the Maruti 9&& "/ith the Omni /hich /as 2uilt on the
same 9&& platform$ /hich accounted for <>: of the unit sales of the carma0er as late
as ';;<(;9# Since the Maruti 9&& "/ith the Omni$ also accounted for ,%: of the car
sales in the country focusing on it seemed to ma0e sense#
Only 2y ';;; even as .hattar too0 over the profile of the car mar0et had 2egun
changing radically# The entry level su2(Rs %#> la0h Maruti 9&& segment /as no
longer the 2iggest chun0 of the mar0et# Fasy access to car finance and the entry of
rivals li0e the 6ae/oo Mati4 the 5yundai Santro the Telco +ndica and the Fiat Uno
in the Rs ) la0h to Rs = la0h segment had turned that into the hottest portion of the
mar0et accounting for a /hopping =&: plus of the total car mar0et in terms of unit
sales# 3hile MarutiBs Aen remained the leader in its price 2and it had less than >&:
share of its segment# 3hatBs more 2ecause the 2asic Maruti 9&& had remained
unchanged for over '> years and even the Aen had 2een in the mar0et for over five
years the consumer perception /as that Maruti /as peddling old models# +n essence
the countryBs 2iggest carma0er /as fast getting the same image that 5industan
MotorsB Am2assador and Premier Automo2ilesB Padmini had /hen Maruti first
entered the mar0et#
Maruti has only one ne/ /eapon left that it can 2orro/ from parent Su4u0iBs small
car armory (( the Alto# And the launch of the Alto could 2ring its o/n pro2lems (( it
might further erode Maruti 9&& share rather than add fresh sales#
For .hattar therefore the pressure is mounting /ith the disinvestment cloc0 tic0ing
a/ay# And there seems no easy solution# +f he canBt get MarutiBs mar0et shares to
'<
move up fast its mar0et value /ill drop even more# +f it cuts prices to shore up mar0et
share it /ill 2e at the eCpense of profits (( and that /ill again push do/n the
carma0erBs valuation# The Rs %&&&& price cut in the Maruti 9&& alone could mean
almost Rs )<, crore in lost sales reali4ations over the full year# And his rivals in the
mar0et are /atching him closely to see /hat card he /ill play neCt# 3atch this space#
6ecem2er ';9) heralded a revolution in the +ndian car industry# Maruti colla2orated
/ith Su4u0i of Hapan to produce the first afforda2le car for the average +ndian# At this
time the +ndian car mar0et had stagnated at a volume of )&&&& to =&&&& cars for the
decade ending ';9)# This /as from /here Maruti too0 over#
The sales figure for the year ';;) reached up to ';,9%&# The company reached a
total production of one million vehicles in March ';;= 2ecoming the first +ndian
-ompany to cross this milestone# +t crossed the t/o million mar0 in ';;<#
+ndiaBs largest automo2ile company Maruti entered the +ndian car mar0et /ith the
avo/ed aim to provide high quality fuel (efficient lo/( cost vehicles# +ts cars operate
on Hapanese technology adapted to +ndian conditions and +ndian car users# Maruti
comes in a variety of models in the 9&& segment#
To fend off gro/ing competition Maruti has recently completed a Rs# = 2illion
eCpansion project at the current site /hich has increased the total production capacity
to over )%&&&& vehicles per annum# +t has further plans to moderni4e the eCisting
facilities and to eCpand its capacity 2y '&&&&& units in the year ';;9(;;# The total
production of the company /ill eCceed =&&&&& vehicles per year#
+n the small car segment it produces the Maruti 9&& and the Aen#
The 2ig car segment includes the Maruti Fsteem and the Maruti '&&&#
+t also manufactures the Maruti Omni#
The latest addition to the Maruti a2le is the -lassic 2illed as the car that /ill lead
the /ay to the neCt millennium# Other models on their /ay include the 3agon R
and the 1aleno#
'9
Produc$( o $he 4o#Aan%
A9STAR
Maruti Su4u0iBs compact A(Star /hich /ill 2e launched in Octo2er is eCpected to
surpass the earlier strict emission norms announced 2y the company#
Fmission from the A(Star not only complies /ith the Furo ) "1harat()$ norms that are
operational in ') +ndian cities including 6elhi 2ut also geared to meet stringent
emission norms that /ill 2e implemented across Furope in the coming years#
The A(Stars -O% emission /ill 2e even lo/er than '&; gm70m /hich /e had
envisaged earlier# This is much lo/er than the Furopean emission norms that require
cars to emit '%& gm70m in the future said Shin4o !a0anishi M6 Maruti Su4u0i#
+ndiaBs Furo ) norms is > years 2ehind those currently enforced in Furope /hile Furo
= norms that are enforced outside the ') +ndian cities are '& years 2ehind Furopean
2enchmar0s# 3hile gaseous and particulate matter comprise Furo = gradation in +ndia
FuropeBs emission reports estimate the -O% discharge levels only# 8o/er -O% levels
in cars means the car has superior fuel efficiency said Anomita -ho/dhury Associate
6irector -entre for Science and Fnvironment#
Maruti Su4u0iBs decision to manufacture the A(Star car in +ndia is part of parent
Su4u0iBs overall strategy to ma0e +ndia the manufacturing hu2 for the production of
small cars li0e the Alto S/ift and Maruti 9&&# 3e may consider manufacturing the A
';
Star later in -hina /hich /ill cater to the -hinese mar0et only# +n that case /e may
have to eCport auto components from +ndia to -hina said !a0anishi# The firm hopes
to eCport a2out one la0h units of the A(Star to Furope# +n a2out %() years from the
launch /e may eCport to S America and the SF Asian region he said# As part of its
strategy to consolidate its position in the A% segment /hich /ill /itness ne/er
players li0e !issan Toyota and 5onda this year on/ards Maruti Su4u0i has
indicated it /ill launch the compact Splash neCt year#
S5IFT DZIRE
Peror#ance
The Fsteem?s replacement is a S/ift /ith a 2oot# +t?s availa2le /ith the same engines
as its hatch2ac0 cousin /hich is the '#) litre petrol unit from the Fsteem and the
fa2ulous 66+S multijet diesel motor from the S/ift 6iesel# 3eight penalty over the
S/ift is only around )&0gs so performance levels are similar to the hatch2ac0# The
petrol has all the action to/ards the top(end of the po/er2and and may feel a little
lethargic /hen fully loaded# The diesel ho/ever is the one that ma0es the most of the
torque availa2le# A slight hint of lag 2elo/ %&&&rpm 2ut after that the motor comes
into its o/n and pic0s up the pace considera2ly# The gear2oC is again carried over
from the S/ift so it comes /ith a s/eet shifting action /ith short and direct thro/s#
%&
Ride : 8and+inB
The rear suspension has 2een stiffened due to the added /eight of the 2oot and the
S/ift already had a slightly 2umpy rear seat ride this remains in the 64ire as /ell#
This means on rough patches you /ill have to slo/ do/n unli0e in the 8ogan /hich
you can drive /ithout a care over 2ad roads# 1ut the stiff settings pay dividends in
handling# Lou can push the car through corners there is minimal 2ody roll and the
FPS steering also feels precise that /eighs up /ith speed#
Reine#en$
The engines 2oth diesel and petrol are refined po/erplants and you /ill not find any
reason to complain# The interiors loo0 good and are made of good materials 2ut as in
the S/ift they may start to rattle fairly early in the car?s life# The suspension doesn?t
ma0e its presence 0no/n even on rough patches#
SO =
+t is eCpected to 2e launched in +ndian mar0et in three months#The ne/ Maruti SO=
sedan is eCpected to 2e 2uilt at MarutiBs ne/ manufacturing facility at Manesar#+t /ill
2e offered in the A) segment /hich currently accounts for '> : of the +ndian
passenger car mar0et# FCepcted preice range is , lacs to < lacs #
Su4u0i a /orld leader in the compact cars achieved an image ma0eover /ith the
launch of S/ift#Apart from +ndia S/ift received the -ar of the year a/ard across the
/orld# The unveiling of the SO= sedan at *eneva is Su4u0iBs effort to ma0e its
presence felt in the premium sedan segment in front of a glo2al audience#
%'
ZEN ESTILO
Aen Fstilo has the same engine "'&,'cc ,=#9ps 9=!m =(cylinder ',(valve MPF+
F'&6 Petrol$ under the hood that is found in Maruti 3agon R# A2solutely nothing has
2een changed eCcept for the fact that this engine is much refined and is slightly 2etter
at responsiveness and fuel economy# This simply translate into BAen Fstilo is a 2it
faster and more fuel economic than 3agon RB# 6ue to highly good driva2ility driving
in city /ould 2e more fun /ith Aen Fstilo# Flectronic Po/er Steering "not availa2le in
8O version$ really helps in cro/ded traffic# O/ning and maintaining Aen Fstilo /onBt
2e a pro2lem engine is proven relia2le and virtually maintenance(proof#
VITARO
*rand Ditara is /ell equipped /ith its various safety and comfort features# 3ith its
%#< litre 6O5- D, engine capacity and /ith the lo/(end torque of '%< 0/ P ,&&&
rpm it can effortlessly run from muddy dusty terrain to any normal high/ay# +ts
%%
safety features include rear door child safety loc0s standard four(/heel A1S po/er
assisted rac0 pinion steering system high(tensile steel in a A 1 and - pillars high
impact door 2eams front and rear crumple 4ones etc#
+ts comfort features include 2etter space and three ro/s of seating arrangement#
+t comes in different colorsQ
-ool 1eige Metallic
1luish 1lac0 Metallic
*rove *reen Pearl Metallic
Pearl 3hite
-assis Red Pearl
MARUTI /11
6imensions
8ength )))> mm
3idth '==& mm
5eigth '=&> mm
3heel2ase %'<> mm
*round clearance '<& mm
Min# turning radius =#= m
3eight
Unladen "std#$ ,=& .g
Transmission Manual =7>R for/ard
all synchromesh ' reverse
Fngine
%)
Type = stro0e cycle /ater cooled
SO5- ' -% D7i-=DR
!um2er of cylinders )
Tyres
Std# >#,>('%(= PR
FO E 6O Radials '=>7<&(R('%
OMNI
Specification
8ength ))<& mm
3idth '='& mm
5eight ',=& mm7 '9)> mmR
3heel 2ase '9=& mm
*round clearance ',> mm
Min# turning radius =#' m
.er2 /eight <=& .g7 <>> .gR
Transmission Manual = for/ard all synchromesh
' reverse
Fngine
Type = stro0e cycle /ater cooled
!um2er of cylinders )
S/ept Dolume <;,cc
MaCimum po/er )<#& 2hpP>&&& rpm#
MaCimum torque >#9 .gmP%>&& rpm
Suspensions
Front McPherson Strut
Rear 8eaf spring /ith shoc0 a2sor2ers
1ra0es
Front 6rum
Rear 6rum
Tyres =#>&('%(,PR U8T
-apacity
Fuel tan0 ), 8ts
Seating > 7 9 seater options availa2le
ZEN
%=
6imensions
8ength )=;> mm
3idth '=;> mm
5eight '=&> mm
3heel2ase %))> mm
*round clearance ',> mm
Min# turning radius =#; m
Fngine
Type Aluminum 3ater -ooled
SO5-7TU6> +6+RR
!o# of cylinders = in(line
6iesel 7 !on(MPF+ % valves per cylinder
Fuel delivery S 6iesel Rotary distri2utor type
Transmission
Manual type > for/ard ' reverse
Automatic type ) speed /ith planetary geatR
Transmission
Manual type > for/ard ' reverse
Automatic type ) speed /ith planetary gearR
Suspension
Front McPherson Strut
1ra0es(2ooster assisted
Front 6isc
Rear 6rum
A8TO
%>
Specification
8ength )=;> mm
3idth '=;> mm
5eight '=,& mm
3heel 2ase %),& mm
Min# turning radius =#, m
Fngine
Type F- = valves per cylinder
MPF+
-ontrol ',( 2it -omputer
!um2er of cylinders )7 =R
Piston displacement <;,cc7'&,' ccR
Front Macpherson Strut /ith torsion type anti(
roll 2ar#
Rear -oil spring /ith dou2le action telescopic
shoc0 a2sor2ers#
1ra0es ( 2ooster assisted
Front 6isc
Rear 6rum
Tyres
-apacity
Fuel tan0 )> 8ts
5aBon R
%,
Specification
8ength )=;> mm
3idth '=;> mm
5eight ',,& mm
3heel 2ase %),& mm
*round clearance ',> mm
Min# turning radius =#, m
.er2 /eight 9%> .g7 9=& .g
*ross /eight '%%> .g for 8O 8Ci DCi
'%=& .g of AC
Transmission
Manual type > for/ard all syncromesh
' reverse gear
Automatic type ) speed /ith planetary gearR
Fngine
!um2er of cylinders = in(line F- engine7
= valves per cylinder#
S/ept volume '&,' cc
MaCimum po/er ,% 2hp P ,&&& rpm
MaCimum torque 9#= .gm P )>&& rpm
Suspension
Front McPherson Strut /ith torsion type roll
control device
Rear -oil spring and gas filled shoc0 a2sor2ers
%<
/ith three lin0 rigid aCle and isolated
trailing arms
1ra0es ( 2ooster assisted
Front 6isc
Rear 6rum
Tyres '=>7<& R') "Radial$
-apacity
Fuel tan0 )> 8ts
1A8F!O
6imensions
8ength =%%> mm7 =)<> mmR
3idth ',;& mm
5eight ');& mm 7 '=,& mmR
3heel2ase %=9& mm
Min# turning radius =#; m
3eight
.er2 /eight ;<> .g7'&%& .gR
Transmission Manual > for/ard
Fngine
Type All Aluminum
-ontemporary ', valve SO5-
!um2er of cylinders 7 valves = in(line ',
MaCimum torque ')% !MP)&&& rpm
Fuel 6istri2ution MPF+
1ra0es ( Daccum assisted hydraulic
%9
Front Dentilated disc
Rear 6rum leading 7 trailing
Tyres ',>79&R(')
Fuel tan0 >' 8ts#
SALES FIGURES
Maruti Su4u0i sales in Septem2er %&') !e/ 6elhi Octo2er &' %&') The company
had sold a total of <'&&& vehicles in Septem2er %&'%#
The (a+e( iBure( or SeA$e#"er -1,2 are Bi*en "e+o@!
SeB#en$ Mode+(
In SeA$e#"er Ti++ SeA$e#"er
AAri+C1/ 9
MarchC1= -1,2 -1,-
D
4hanBe
-1,29
,1
-1,-9
,2
D
4hanBe
A' M9&& )%&< )=,< (<#>: '>9>, %9<9, (==#;: =;)9)
- Omni Dersa 9%;< <=', ''#;: ===)) =&;<& 9#>: <<;=9
A%
Alto 3agon(
R Aen S/ift
A(star Rit4
>%>&9 =>,%' '>#': %;;9%; %=)>'& %)#': >'');,
A) SO= 6B4ire <)>, <=') (&#9: ==%%> )=<9; %<#': <>;%9
To$a+ Pa((enBer 4ar( 0,2./ .2=,0 ,,.0D <1<2<2 2</1;; ,..-D 0,<.;;
MUD *ypsy Ditara %%, <,> (<&#>: %'>> )<== (=%#=: <=9;
Do#e($ic 0,;=< .<./- ,1.0D <1.<=/ 2;,0== ,;.;D 0--,<<
FCport ''<'% ,)'9 9>#=: ,,='; )&%), '';#<: <&&%)
To$a+ Sa+e( /221. 0,111 ,0.2D <0-=,0 2/-12; -2./D 0=-,.0
E A9($ar +aunched in No*e#"er1/F Ri$G +aunched in Ma%1=F Grand Vi$ara -.<
+aunched in 3u+%1=.
%;
,.2. PROBLEMS OF T8E ORGANIZATION
The automo2ile industry occupies a prominent place of the +ndian economyT the
automotive industry has a strong multiplier effect and is capa2le of 2eing the driver of
economic gro/th# +ndia?s 2iggest car ma0er Maruti Udyog 8imited enjoyed a near
monopoly status until the government li2erali4ed the economy in ';;' this led to the
entry of foreign players li0e 5yundai Fiat Mitsu2ishi and Toyota# The research area
product related strategies eCamines the mar0et related strategies adopted 2y Maruti
Udyog 8imited in response to the intensive competition for instance the company
introduced the hatch2ac0 JS3+FT? to shed its image of 2eing a manufacturer of lo/(
cost staid cars#
)&
,.<. 4OMPETITION INFORMATION
8%undai
E($a"+i(hed ! ,==.
-olla2oratorsQ 5yundai -orporation South .orea
Product rangeQ 5yundai Santro Accent Sonata Terracan#
Unli0e most other M!-s 5yundai of South .orea decided to enter +ndia /ith its
small car model Santro /hich it priced attractively at a2out M<&&&# 5yundai chose
to set up a fully o/ned su2sidiary and hired some of the most reputed eCecutives in
the +ndian automotive industry# 5yundai also invested heavily in a modern car plant
near the city of Madras in the southern part of +ndia# The facility can manufacture
')&&&& engines transmission sets and components per annum# According to
1usiness +ndia' U3hat ma0es 5M+?s "5yundai Motor +ndia$ progress even more
impressive is that the Sriperam2adur plant is not another 0noc0ed do/n ".6$
operation 2ut an integrated manufacturing facility# The Santros that /ill roll out of
this plant /ill 2e manufactured from day one and not merely assem2led# This is a
historic achievement# !o company has 2egun operations in this manner not even
Maruti Udyog /hich initially imported -.6 0its for the Maruti 9&&### The very
essence of 5yundai?s strategy is to localise heavily from day one to give it a very
early cost advantage the num2er one priority in this highly price sensitive mar0et#V
The Santro has 2een a major success# Though not very elegant loo0ing the car has
enough leg and head room# 5yundai sold more than <>&&& vehicles during the period
April ';;; ( March %&&& and loo0s set to cross the '&&&&& figure in the current year#
6uring the period Hanuary(Hune %&&& 5yundai sold =>>') units against %'99= in
';;;# Fncouraged 2y the success of the Santro 5yundai has recently launched the
upmar0et Accent model# Recently 5yundai eCported a 2ig consignment of <,& cars
")>& units of Santro and ='& of Accent$ to Algeria# 5yundai has also announced
plans to eCport engine and transmission sets to the parent company in .orea and to
Tur0ey#
)'
TATA Mo$or(
Fsta2lishedQ ';>=
-olla2oratorsQ
Tata *roup +ndia
+nternational Automotive 6esign U.
Ro2ert 1osch *m15 *ermany
+#6F#A +taly
8e Moteur Moderne France
Product rangeQ Tata Sierra Fstate Sumo +ndica +ndigo#
Founded in ';=> the Tata Fngineering and 8ocomotive -ompany "Telco$ is one of
the leading players in the +ndian automo2ile industry# +n its early years Telco
manufactured only commercial vehicles through a technical colla2oration /ith
Mercedes 1en4 of *ermany# Starting /ith the ';9&s Telco has moved into light
commercial vehicles pic0(up truc0s multi(utility vehicles large cars and finally
small cars# The Tata Mo2ile pic0(up truc0 launched in ';99 /as pro2a2ly a turning
point in Telco?s history# The model failed to 2uild volumes 2ut gave Telco engineers
confidence in their design capa2ilities# Telco then launched its 2ig cars Tata Sierra
"';;'$ and Tata Fstate "';;%$# 1oth these cars have 2een more or less phased out as
Telco decided to ta0e a plunge into the mass mar0et small car segment#
)%
6ae/oo
Fsta2lishedQ ';;>
-olla2oratorsQ 6ae/oo -orporation ( South .orea
6-M *roup +ndia
Product range Q -ielo !eCia Mati4
6ae/oo entered +ndia in ';;> through a joint venture /ith the local 6-M group#
Hapanese car major Toyota also had a small sta0e in the project# 6ae/oo later hi0ed
up its equity sta0e to ta0e complete control of the venture#
6ae/ooBs first model for the +ndian mar0et /as the -ielo# +nitially -ielo seemed to
2e doing /ell selling a2out '&&& units per month# 8ater as competing models
arrived -ieloBs sales dropped sharply# 6ae/oo reacted 2y offering major discounts#
This only hurt the carBs image and did little to 2oost sales# 6ae/oo attempted to learn
from its eCperience 2y launching its small car the Mati4 in late ';;9# Although the
Mati4 /as initially priced high 6ae/oo quic0ly cut the price to gra2 mar0et share#
6ae/oo has pinned its hopes on the Mati4 to ma0e a come2ac0 and catch up /ith
arch rival 5yundai#
6ae/oo /as lac0ing in commitment# +t has invested over M' 2illion in a fully
integrated plant to produce '%&&&& vehicles per annum# 6ae/ooBs models across the
2oard meet the Furo ++ environment norms# This has helped the company to project
its cars as the ones /ith the 2est technology#
Unfortunately for 6ae/oo it had /ound up it?s operation in +ndia
))
FIAT
Fsta2lishedQ ';;<Q -olla2oratorsQ F+AT *roup +taly Premier Automo2iles 8td +ndia
Product rangeQ Fiat Uno Sienna Sienna 3ee0end Palio
The +talian car ma0er has maintained a presence in +ndia since the ';>&s through its
tie up /ith the 3alchands a leading +ndian 2usiness group# +n the recent past Fiat
has /rested management control from the local 2usiness group and decided to play a
more active role#
Fiat has 2een one of the fe/ M!-s to launch quite early on a reasona2ly priced small
car the Uno# The model has a ;;;cc engine and is currently priced at a2out Rs# )
la0hs# Though it is an old model having 2een launched in ';9) in Furope and lac0s
the sophistication and finesse of competing models it has the potential to 2uild
volumes# Unfortunately Fiat encountered production pro2lems during the launch
phase# Fiat has recently launched a more upmar0et model the Sienna priced higher
than the Maruti Fsteem# The Sienna has 2een positioned as the 2ooted version of
FiatBs 2est selling Palio model# Analysts eCpect Fiat to also launch the Palio /hich
/ill compete against the Santro Aen and +ndica#
FOR6
Fsta2lished Q ';;,
-olla2oratorsQ
Ford Motor -o# USA
Mahindra E Mahindra 8td# +ndia
Product rangeQ Ford Fscort +0on Mondeo#
Ford entered +ndia through a >&(>& joint venture /ith the local Mahindra E Mahindra
group# !o/ the +ndian unit has 2ecome a /holly o/ned su2sidiary of Ford# The
entry model /hich Ford chose /as Fscort priced in the range Rs# < ( 9 la0hs# 3hile
it esta2lished FordBs reputation for quality volumes failed to pic0 up 2ecause of the
high price# Ford?s head of +ndian operations admitted in an intervie/' UOur Fscort
/hich in most mar0ets is a family car is an ultra luCury car in +ndia# So /e have to
change our mindset#V
)=
As of no/ it loo0s unli0ely that Ford /ill enter into a head to head clash /ith other
players in the small car segment# Ford Motor +ndia feels /ith the /ay it has 2uilt the
2rand in +ndia and created a ne/ segment through +0on Ford does not need to go into
the lo/er end of the mar0et#
To%o$a
Fsta2lishedQ ';)<
-olla2oratorsQ Toyota Motor -orporation
Product rangeQ Toyota Wualis -orolla and -amry#
Toyota HapanBs largest car manufacturer and one of the top three automo2ile
companies in the /orld has launched Wualis a version of its .ijang an 9 ('& seater
multi utility vehicle# The company is currently importing critical components such as
the gear2oC# Priced at a2out M'> S '9&&& Toyota has set only modest sales targets to
start /ith# +t plans to sell %%&&& vehicles in the first year of operations# 1y the fourth
year volumes are eCpected to gro/ to >&&&&#
Toyota officials eCplain that it ma0es sense to gain eCperience and understand the
+ndian mar0et 2efore launching a conventional passenger car# Toyota also argues that
a sha0eout is li0ely in the +ndian mar0et and that it /ould prefer to /ait for the
process to 2e completed 2efore ma0ing heavy investments# Toyota eCecutives point
out that in 2oth +ndonesia and Thailand it had made strategic late entries 2ut 2y ';;9
S ;; had emerged as the mar0et leader#
Genera+ Mo$or(
Fsta2lishedQ ';;,
-olla2oratorsQ *eneral Motors -orp# USA 5industan Motors "-#.# 1irla *roup$
+ndia
Product rangeQ Opel Astra -orsa -orsa S/ing and Optra
The /orldBs largest car ma0er entered +ndia through a >&Q>& joint venture /ith the
local -. 1irla group of companies# This group manages 5industan Motors one of
+ndiaBs oldest car companies# Set up in ';;= /ith a total investment of a2out M'&&
million *M?s operations are 2ased in the /estern +ndian state of *ujarat#
*M?s entry model /as the Astra designed 2y its *erman su2sidiary Opel# The Astra
has 2een positioned as a luCurious elegant safe premium offering /hich reflects the
eCcellence of *erman engineering# O/ing to its high price range of Rs# < ( '& la0hs
)>
the Astra has not surprisingly failed to 2uild volumes# 6uring ';;;(%&&& *M could
sell only )&=< cars# *M has recently launched another model the -orsa priced
2et/een Rs# > and < la0hs# *M has positioned it as a vehicle for the
Buncompromising 2uyersB /ho are prepared to pay more#
O$her MN4S
5O!6A S+F8 Fsta2lishedQ ';;< -olla2oratorsQ
5onda Motor -ompany Hapan S+F8 *roup +ndia
Product rangeQ 5onda -ity Accord#
5onda /hich has a tremendous reputation for quality and customer satisfaction
entered +ndia /ith its -ity model positioned as a lo/ cost car for Asia# The -ity has
po/erful engines and delivers good performance# 5onda sources 0its from Thailand
for assem2ly in +ndia# Though it has cut costs 2y providing a functional no frills
interior the car remains priced 2eyond the reach of most +ndian customers# +t sells
only a2out '&&& units per month and is unli0ely to sell in large num2ers given its
current price structure of Rs# , ( ; la0hs# Mean/hile 5onda has announced plans to
launch one of its most popular models in the /orld the Accord#
S&oda Au$o India Pri*a$e Li#i$ed
Fsta2lishedQ ';9; -olla2oratorsQ D3 Audi and SFAT Product rangeQ Octavia
Another cautious entrant into the +ndian car mar0et is Dol0s/agen through its
su2sidiary S0oda /hich has invested in a plant /ith a capacity of '&&&& cars# The
company has indicated that it /ill not increase this capacity for the neCt five years# +n
its first full year of operations S0oda eCpects to sell ,&&& vehicles# This is projected
to increase to '&&&& 2y the third year# S0oda /ill also depend heavily on imports of
0ey components# S0oda officials eCplain that the project /ill 2e implemented in a
Uslo/ start fast gro/thV fashion#
Let another player Mitsu2ishi has confined itself to the upper end of the mar0et# +ts
products li0e the 8ancer and Pajero are premium vehicles /hich are unli0ely to sell in
large num2ers in the near future#
),
,.;. S.5.O.T Ana+%(i( o $he OrBaniGa$ion
S5OT Ana+%(i(
S$renB$h(!
3ell Fsta2lished -o# since ';9)#
Hoint venture of Su4u0i Motor -orporation Hapan#
Trusted 2rand in +ndia#
Only producer of the A' segment car in +ndia currently#
Strong distri2ution net/or0 all over +ndia#
+t has the maCimum num2er of service stations all over the country /ith services
availa2le in the remote areas too#
Fasy availa2ility of spare parts at lo/ cost#
-ars 0no/n for there efficiency efficiency in term of maintenance cost and running
cost#
Tie up /ith S1+ to provide financial services in the rural areas too#
Other services li0e True Dalue Maruti +nsurance and Maruti Finance /hich help to
provide the turn 0ey services to the customers#
8arge share in total car eCports to Furope#
5ea&ne((!
The company does not offer diesel version of there 2rands#
The num2ers of models offered in A) and - segment are very less#
The models offered 2y the company are very old and loo0s outdated in comparison to
the ne/ cars availa2le in the segment#
The company has lo/ 2rand recognition in A) and - segment#
!ot perceived as a luCury car manufacturer 2ut as a small car manufacturer#
OAAor$uni$%!
Opportunity eCists in the A) segment /hich has recorded a dou2le digit gro/th of
'>: in +ndian mar0et#
The company can sign in contracts /ith M!-?s for providing them /ith the cars for
purpose of pic0 and drop# This /ay the sales of Dersa can 2e improved#
The company can come out /ith a -!* fitted 0it model for cars for taCi purpose#
-oming out /ith diesel variants of the different 1rands#
)<
Threa$(!
The Rs# '#> la0h car to 2e launched 2y Tata and TDS +ndia#
8aunch of ne/ cars li0e *et4 Fusion in the upper A% segment#
Price reduction and heavy discounts 2y other car manufacturer li0e 5yundai Ford in
the A) segment#
+ntroduction of ne/ models of international players in the - segment# Fg# +!!ODA#
8aunch of 2ase model Santro for %#9 lacs closer to Maruti?s Alto?s price and a threat
for Maruti?s A'segment
)9
48APTER9-
OB3E4TIVE AND MET8EDOLOG)
);
-.,. SIGNIFI4AN4E
Automo2ile industry 2eing such an important sector of the +ndian economy and due to
heavy competition it is important to 0no/ a2out the strategies depending upon the
opportunities in this industry#
-.-. MANAGERIAL USEFULNESS OF T8E STUD)
As the +ndian car industry is gro/ing in dou2le(digit figures in the last couple of
years /hich is due to the rising income levels continuing poor pu2lic transport
system and declining interest rates /ider availa2ility of finance decreasing product
life cycles and increasing percentage of young population#
The last fe/ years have seen a fundamental shift in preference from t/o /heelers to
cars especially small cars# Aoto car sales have gro/n at a compounded annual
gro/th rate "-A*R$ of %<: for the last , years /hile the T/o 3heeler industry have
gro/n at a -A*R of '': over the same period#
The project focuses on analy4ing the mar0eting strategy of Maruti Su4u0i# Since
Maruti has 2een one the companies spending huge amount in advertising and
sponsorships of events it has 2een successful in creating a differentiated image# So
all this prompted me to underta0e this project# This study is descriptive in nature and
has 2een underta0en through survey method /ith structured questionnaire method as
data collection instrument#
=&
-.2. OB3E4TIVES
O"'ec$i*e o $he Re(earch
A mar0et analysis of the MARUT+ car /ith the respect to its -OMPFTFTOR li0e
MU8 TATA etc#
Su"9o"'ec$i*e(
To identify the critical factors considered 2y the prospective customers /hile
purchasing the MARUT+ car#
To identify the perception of the eCisting users of the MARUT+ motors#
To find the mar0et share "distri2ution$ of the MARUT+ motors#
To find the mar0et analysis trough S3OT Analysis Product Specification and
Mar0et Segmentation#
-.<. S4OPE OF T8E STUD)
The ma0ing of this research project on Maruti Su4u0i /ill help me in many /ays#
This research /or0 /ill strengthen and 2oost my 0no/ledge of the industryT it /ill
also help me to understand my choice of su2ject i#e# mar0eting in a 2etter manner# +
sincerely 2elieve that /or0ing on research project li0e this /ill help me to gain huge
practical 0no/ledge of the su2ject and the industry# The geographical scope of this
study is limited to !e/ 6elhi area only#
='
-.;. MET8ODOLOG)
Research Methodology defines the purpose of the research ho/ it proceeds ho/ to
measure progress and /hat constitute success /ith respect to the o2jectives
determined for carrying out the research study# The appropriate research design
formulated is detailed 2elo/#
EHA+ora$or% re(earch! This 0ind of research has the primary o2jective of
development of insights into the pro2lem# +t studies the main area /here the pro2lem
lies and also tries to evaluate some appropriate courses of action# The research
methodology for the present study has 2een adopted to reflect these realties and help
reach the logical conclusion in an o2jective and scientific manner# The present study
contemplated an eCploratory research
Re(earch De(iBn
The research design is the 2asic frame/or0 /hich provides guidelines for the rest of
the research process# The present research can 2e said to 2e eCploratory# The research
design determines the direction of the study throughout and the procedures to 2e
follo/ed# +t determines the data collection method sampling method the field/or0
and so on#
Na$ure o Da$a
Pri#ar% Da$a! Primary data is 2asically fresh data collected directly from the
target respondentsT it could 2e collected through Wuestionnaire
Surveys +ntervie/s Focus *roup 6iscussions Ftc#
Secondar% Da$a! Secondary data that is already availa2le and pu2lished #it could
2e internal and eCternal source of data# +nternal sourceQ /hich
originates from the specific field or area /here research is
carried out e#g# pu2lish 2roachers official reports etc#
EH$erna+ Source! This originates outside the field of study li0e 2oo0s periodicals
journals ne/spapers and the +nternet#
=%
Da$a 4o++ec$ion
Pri#ar% da$a! Primary data /ill 2e collected from the sample 2y a self(
administrated questionnaire in presence of the intervie/er#
Sa#A+e (iGe!
The survey is conducted among ,11 re(Aonden$(
Sample AreaQ N4R De+hi
Sample unitQ Officials of MU8 and the general pu2lic /ho o/n a car7/ho plan to
o/n a car in future in regard to the current research study#
Secondar% Da$a! Secondary data /ill 2e collected through
Articles
Reports
Hournals
Maga4ines
!e/spapers and
+nternet
Sa#A+inB TechniIue
Random sampling technique has 2een employed to eCtract the fruitful results# This
includes the overall design the sampling procedure the data collection methods the
field methods and the analysis procedures
Sa#A+inB Procedure Ac$ua++% E#A+o%ed!
The process employed to select the sample /as simple random sampling# Simple
random sampling refers to that sampling technique in /hich each and every unit of
the population has an equal and same opportunity of 2eing on the sample# +n simple
random sampling /hich item gets selected is just a matter of chance#
Ana+%$ica+ $oo+(!
Simple statistical tools have 2een used in the present study to analy4e and interpret the
data collected from the field# The study has used percentiles method and the data are
presented in the form of ta2les and diagrams#
=)
48APTER 92
4ON4EPTUAL DIS4USSION
==
2., 4onceA$ua+ Di(cu((ion
Mar&e$ Si$ua$ion
SeB#en$ A,! After almost '9 years the 9&& is on its last legs# The dies that have
2een stamping out the 2ody panels /ill not 2e a2le to do so much longer# 1ut the A'
segment in /hich the 9&& is the only product and sell % la0h units a year# This car
accounted for company?s )&: domestic sales volume#
The current dies imported from Hapan /ere good for stamping out the 2ody
panels of a million 9&&s# !o/ t/o overhauls later they are eCpected to 2e around
for another %() years# The dies can 2e replaced 2ut it is a costly affair#
The competition from the larger JA% segment? cars and Maruti?s strategy of
positioning its other model JA8TO? as an alternative to Maruti 9&& has affected
the sales of Maruti 9&&#
Fasier finance schemes have shifted -ustomer preferences to/ards other
segments#
The second hand cars have eaten into the mar0et for A' segment cars# +f a
customer can get a good SA!TRO or 3A*O!R at a price of a ne/ Maruti 9&&
they may opt for the same#
The competitor companies li0e JTATA? is planning to come /ith their Rs# ' 8a0h
car in coming time /hich could directly affect Maruti?s A' segment sales#
SeB#en$ A-!
The competition from the larger JA% segment? cars has affected the mar0et share
of Maruti /here it has major share in the mar0et#
Fasier finance schemes have shifted -ustomer preferences to/ards larger cars#
SeB#en$ A2!
+n Segment A) Fsteem sales are on a continuous decline even though price have
2een reduced considera2ly#
1aleno sales have not pic0ed up despite several attempts at sales promotions#
=>
SeB#en$ 4!
The sale of versa has increased after major price reductions 2ut still /ay 2ehind
sale of competitors li0e Wualis Sumo etc#
Rura+ Mar&e$!
Rural +ndia /ith its poor and at times non(eCistent roads has 2een dominated 2y
rugged multi(utility vehicles from Mahindra E Mahindra and the Tatas for a long
time#
According to a %&&' study conducted 2y the !ational -ouncil for Applied Fconomic
Research "!-AFR$ there are as many Jmiddle(income and a2ove? households in the
rural areas as there are in the ur2an areas and a2out t/ice as many Jlo/er middle(
income? households#At the highest income level there are %#) million ur2an
households as against '#, million households in rural +ndia# The study also says the
num2er of middle( and high(income households in rural +ndia is eCpected to gro/
from 9& million in %&&' to ''' million 2y %&&<#
Rural people have strange notions a2out a car ( that the FM+ "equated monthly
instalments$ /ould range 2et/een Rs =&&& and Rs >&&&# That plus another Rs
'>&&(%&&& for monthly maintenance another Rs '&&& for fuel "/ould 2e the cost of
using the car$#
Second 8and 4ar Mar&e$!
This concept revolves around the total total lifetime value of a car#
+f a 2uyer spends Rs '&& on a car during its entire life one(third of that is spent on its
purchase# Another third /ent into fuel# And the final third /ent into maintenance#
Farlier Maruti /as getting only the first one(third of the overall stream
People 0ept their cars longer as it is not easy to trade in an old car than0s to
information asymmetry that prevails in the second hand car mar0et# +n addition the
difficulty in financing for second hand cars and lac0 of credi2le firms in this mar0et
added on to the customer reluctance to deal in second hand cars# "Used car mar0et in
developed mar0ets /as %() times as large as the ne/ car mar0et# +n +ndia that ratio
/as 'Q'$
=,
As the +ndian mar0et matured customers 2egan to change cars faster# So the question
is if a car is going to see three users in say a life span of '& years ho/ can + ma0e
sure that it comes 2ac0 to me each time it changes handsX
S$ra$eB% For#u+a$ion
A, SeB#en$! To Aha(e ou$ $he Maru$i /11 @i$h $he A+$o a( $he a+$erna$i*e.
1ut the pro2lem is the price differential 2et/een the air(conditioned 9&& and the Alto
8O# A- 9&& comes for Rs %#%, la0h /hile the Alto 8O costs Rs %#,> la0h "after the
price reductions in the recent past$# So there is still a Rs =&&&& difference#
A team of engineers of Maruti Udyog "MU8$ should 2e formed the team /ould have
to meet a fe/ of the companyBs %,9 vendors# The team?s jo2 /ould 2e to 2ring do/n
the price of the 9&& cc Alto 8O model 2y Rs =&&&& to the price of the Maruti 9&&#
PUSH /11 in (#a++er cen$er( and rura+ area(.
Maruti 9&& is sho/ing a dec+ine after 2eing largest selling car for several years# The
firm is not in a position to 2ring do/n its cost so they are loo0ing for other means to
it more afforda2le# 5ence they are also trying to push the cars in smaller centers and
rural mar0ets#
A2 Segment: In$roduc$ion o ne@ ea$ure( in all the models of Segment A% at no
eCtra price li0e completely redesigned headlamps tail lamps and a ne/ flo/ing
chrome grille /ith provision for front fog lamps# Offering special up gradation
pac0age for the 8Ci# Dariants of the different 1rands in this segment# These pac0ages
/ould 2e /orth Rs#'=&&& /hich /ould include 1ody colored 2umpers 3ooden
finish interiors Alloy /heel caps 1ody colored 6oor vision set#
For enhancing sales in the A%(segment every time any of his )#% million o/ners of
9&& or the Omni decide to trade in their car and upgrade# 5is dealers /ill give them
loyalty discounts to get them to upgrade to a Maruti A% segment car# 3ith support
from parent company Su4u0i Motors Maruti Udyog 8td "MU8$ may /or0 on
developing a ne/ compact car in the A% segment for 2oth the domestic and the eCport
mar0et#
=<
SeB#en$ A2!
After having lost mar0et share to Tata MotorBs +ndica and 5yundaiBs Santro in the
compact segment Maruti can decide to protect its share of the profita2le mid(si4e
segment
E($ee# To Be Priced Lo@er
The 2ase model of Fsteem 6iesel "/ithout po/er steering$ comes for Rs =#9) la0h
"all prices are eC(sho/room 6elhi$ against Rs >#%% la0h earlier /hile the loaded
version /ill come for Rs >#&; la0h do/n from Rs >#=9 la0h# At its prevailing price
the Fsteem diesel is just a little more eCpensive than the Tata +ndigo diesel "Rs >#&%
la0h$ 5ence the price reduction of loaded version can 2e reduced to Rs# > la0hs to 2e
less than competitor?s price#
Ba+eno $o Be Fur$her Di(coun$ed
1aleno DCi to 2e offered at a compara2le price than the other Segment A) cars li0e
5yundai Accent *DS +0on ACi "Rs ,#&, la0h$ # 1aleno DCi presently priced at Rs
,#%; 8a0h should 2e discounted to price of Rs# , la0hs this can 2e done at the cost of
po/er /indo/s po/er mirrors rear defoggers#
Hence on the basis of this the pricing strategy is given as:
PRI4E
PRODU4T
JUALIT)
5+*5 MF6+UM 8O3
5+*5 PREMIUM 8IG8 VALUE
Ditara
SUPER VALUE
MF6+UM OVER48ARGING
Fsteem 1aleno
MEDIUM VALUE
Aen 3agon R Dersa
GOOD > VALUE
Alto
LO5
RIP OFF FALSE E4ONOM) E4ONOM)
Maruti 9&& Omni
=9
For $he (econd hand car #ar&e$!
Maruti has created a system /here dealers pic0 up used cars recondition them give
them a fresh /arranty and sell them again#
This /ay MU8 /ill create a num2er of ne/ revenue streams /ithout ma0ing large
investments# 6ealers ma0e all investments for True Dalue# MU8 should aim at
convincing '9) authori4ed dealers selling Maruti cars through %=' outlets to open at
least one True Dalue outlet each /ithin t/o years#
Taxis & Government Vehicles: Maruti should plan to displace the good old
Am2assador from the taCis and government vehicles segment# This is one area /here
sales can increase tremendously# MU8 has -!*(po/ered environmentally fit
vehicles /hich are 2est suited as taCis and government cars#
MU8 can offer discounts in the form of re2ate to taCi o/ners to 2uy Maruti cars# +f
this strategy is a2le to convert old cars into ne/ green Maruti MU8?s sales /ill
leapfrog 2y at least '& per cent#K
TaCi customers can get re2ate of 9: on the assessa2le value of the vehicle# +n
a2solute value this ranges from approCimately Rs# '&&&& on Omni to Rs# %9&&& on
1aleno# This re2ate /ould 2e availa2le on all the vehicles having seating capacity up
to seven including the driver#
Vehicles for orporate:
Offering -!* fitted Dersa as a vehicle to 2e used for Pic0 up E drop service for their
employees# A >: discount "Rs %%&&& on Dersa 6C%$ /ould 2e offered to these
corporates on a 2ul0 purchase of more than ten Dersas# This /ould help increase the
sales of Maruti Dersa# 2y '>: " )>&& units$
!"ral #ar$et:
To counter that apprehension discussed in the mar0et situation the company should
/or0 on a novel idea#
For EMI! Maruti has tied up /ith State 1an0 of +ndia "S1+$# Today organi4ed
finance is availa2le in just >&(,& to/ns in +ndia 2ut MU8 has dealerships in '9&
cities# The S1+ deal gives MU8 access to a2out ;&&& S1+ 2ranches and another >&&&
2ranches of its affiliate 2an0s A typical t/o(/heeler loan lasts %() years charges a
high rate of interest and has a monthly payment of around Rs %&&&# !o/ S1+ and its
=;
affiliate 2an0s are offering >(< year loans for the 9&&# They /ill charge a far lo/er
rate of interest ( around ;#>: ( and the monthly installment /ill 2e just Rs %9&&#
Fue+ 5o/ much you spend on fuel is in your hands#
Main$enanceQ As far as the maintenance cost is concerned company /ill charge a
little eCtra in the FM+ and offer free maintenance#
EH$ra Benei$Q 3ith the State 1an0 of +ndia MU8 can come out /ith a scheme
/here installments can 2e paid every siC months ( after the ra2i and 0harif harvests#
This ma0es the total cost per month to 0eep a car to 2e around )>&& as compared to
the notional <&&& earlier /hich ma0es it a good option#
Vendor ra$iona+iGa$ion! The cost reduction strategy of the company has also 2een
successful partly 2ecause of a cost reduction /ith vendors# Maruti /ill /or0 closely
/ith current vendors to cut do/n costs at the vendor end# The company see0s to
reduce costs 2y '&: per vehicle in the period#
O"'ec$i*e!
To attain a sales t"rnover of !s%&'()) rore in 2))*+), -ith a .et Profit of !s%/() rore%
The eCplanation for the a2ove stated o2jective is as follo/sQ Average Reali4ation per
-arQ Rs#%<&&&& Average !um2er of Units to 2e sold in %&&>(&, ;</2;1 units
"The average reali4ation is the sale value reali4ed 2y Maruti 2y selling one unit of the
product for e#g# for selling one unit Maruti 9&& Maruti reali4es '#< lacs as sales
revenue#$
The total num2er of units /ould 2e spread over a period of '% months#
The sales has 2een spread over the t/elve month period on the 2asis of the month
/ise sale trends during the past fe/ years#
>&
SeB#en$( AAri+ Ma% 3une 3u+% AuB SeA Oc$ No* Dec 3an Fe"
Marc
h
To$a+
Annua+
Sa+e(
SeB#en$
A, '%<,% ''>'9 '%)<> '&;9< '&&%& ''';& '))<9 '&)&% ;&,9 ''&,; ;%==
'&>)
9 ')%==;
SeB#en$
A- %%';& %=)&9 %'>9) %,%>9 %=&;) %>'9, %,9)= %,)<) %)9<) %;;'9
%,9'
'
)&>,
> )&<;;%
SeB#en$
A2 '>'& '<)< '==& %,9> %9=) ))9% %;,= )9=9 )=)> )<&> %=<, %9%) )%9=<
SeB#en$
4 >>)9 >9&; >,%' >99< ,';< ,=<; <&%% ,';) ,&%) ,9;) ,%,% <')9 <>&,%
To$a+
Sa+e( =%&&& =))<' ='&'; =>9'< =)'>) =,%)< >&';9 =,<'> =%);9 >'>9,
==<;
)
>'&,
) >=9)>&
>'
Mar&e$inB S$ra$eB% o Maru$i SuGu&i KPVTL Li#i$ed
The mar0eting strategy of the Maruti Su4u0i Pvt# 8td# can 2e measured from the
follo/ing storyQ
Eicien$ Produc$ion and Di($ri"u$ion 4aAa"i+i$ie(
Hust three months after it launched S/ift Maruti Udyog 8imited has already sold over
9&&& units of the car and added another >&&& neCt month# ThereBs a four(month
/aiting period for the '%;9(cc hatch2ac0 (( the company claims more than ;&&&
2oo0ings 2efore the car /as launched# And thatBs even /hile competitors (( -orsa
Sail 5yundai *et4 and Fiat Palio (( are availa2le off the shelf# !ot surprisingly MU8
no/ has a lot riding on the carQ thereBs over Rs ==& crore "Rs =#=& 2illion$ invested in
the project "Rs %>& crore(odd is MU8Bs share$# !ot only is the company hoping that
the S/ift /ill help eCpand the mar0et for the 1(plus segment "premium hatch2ac0s$
itBs also counting on S/ift to ma0e a style statement (( that Su4u0i can deliver good(
loo0ing cars on +ndian roads# For a company that has 2een 0no/n more for its value(
for(money proposition (( from the 9&& to the Fsteem (( thatBs important# K+tBs not as if
our cars /erenBt style statements# +tBs just that /ith S/ift /e have made a 2rea0 from
the pastK reveals a company official#
The 2u44 around S/ift 2egan in 6ecem2er %&&= (( five months 2efore its launch# All
ne/ 3agonRs and Maruti Omnis came /ith stic0ers and sunshields that proclaimed
KMy neCt car is a S/ift#K Unli0e most car launches /here the loo0 of the vehicle is
0ept under /raps until the last possi2le moment photos and specs /ere made
availa2le at sho/rooms several months earlier# Models of the car /ere placed on high
platforms at 2usy intersections in 6elhiT /hile cars /ere on display in malls# K+t /or0s
/ell for those /ho donBt have the inclination to really go to a dealer and chec0 out the
carK says a company official# The launch /as staggered over three to four days in '>
cities across the country coinciding /ith the /orld/ide launch of the car# MU8 also
made good use of its Rs %& crore "Rs %&& million$ mar0eting 2udget# For the first
time it opted for an in(film placement (( S/ift appeared in the 1olly/ood hit 1unty
Aur 1a2li /hich /as released on the same day as the car launch May %<# And it
trained '&&& salespeople (( called KenergisersK (( to eCclusively sell the S/ift#
Perhaps the S/iftBs 2iggest plus is its price# +ntroduced at Rs )9<&&& for the 2ase
>%
model it /as close to a2out Rs >&&&& less than its competitors# Fven the top(end
version /as Rs <&&&& cheaper than the 5yundai *et4 *8S# MU8 does not /ant to
give this pricing advantage a/ay# Although it hi0ed prices 2y Rs '&&&& in early Hune
advance 2oo0ings /ere honoured at the introductory price# And since the car is priced
at just under Rs =&&&&& 6elhi residents pay only % per cent road taC compared to =
per cent for a car that costs more than Rs =&&&&&#
Su4u0i Motor -orporationBs eCpansion plans /hich set the Hapanese company on a
collision course /ith the government could turn out to 2e a 2ig push for the
automo2ile components industry# The %>&&&& cars per annum assem2ly unit
announced 2y Su4u0i could result in an investment of up to Rs <>&& crore "Rs <>
2illion$ 2y the components industry# The entire sourcing for the venture is proposed to
2e done locally# Though Maruti Udyog /hich /ill o/n <& per cent of the venture is
yet to announce its investment in the project the automo2ile components industry
eCpects it to 2e around Rs %>&& crore "Rs %> 2illion$# As every rupee spent in a car
project needs to 2e 2ac0ed 2y a do/nstream investment of Rs ) in components
vendors say the industry could see an investment of Rs <>&& crore# K3e are very
2ullish on this development though /e are yet to do our calculations on /hat the
Su4u0i Motor investment means to us eCactlyK Surinder .apur chairman of the Sona
*roup one of the largest vendors of Maruti Udyog told 1usiness Standard# Any ne/
demand can 2e met only 2y adding fresh capacity# KThe automo2ile components
industry has to ma0e su2stantial investments in increasing capacity to meet the
additional demandK said 6ilip -henoy director(general Society of +ndian
Automo2ile Manufacturers# Mc.insey E -o had in a recent study said the +ndian
automo2ile component industry had the potential to 2ecome a M))(=& 2illion industry
2y %&'># Su4u0iBs eCpansion plans could turn out to 2e a 2ig push in that direction#
5aving successfully completed the supply of fuel nec0 and real aCle for Maruti
Udyog 8td "MU8$ vehicles during last fiscal Hay 1harat Maruti 8td "H1M8$ the Rs
=%%(crore manufacturer of components for automotive applications is no/ /or0ing
on another eCpansion programme# The company is also planning to set up a coating
facility and additional /elding lines# Further it has also decided to eCpand its eCisting
capacity to meet the increased demand of MU8# KAt present the company is /or0ing
on a major eCpansion plan for ne/ model of Maruti L!= and /ill 2e setting up
facilities for manufacturing of the rear aCle in technical colla2oration /ith Loro4u
>)
-orporation HapanK a H1M8 official told the researcher# 5o/ever declining to
divulge the details on investments involved in the eCpansion project and the
implementation schedule he said Kthe details for the finalisation of technical
colla2oration and eCpansion project are still 2eing /or0ed out in constant
consultations /ith Maruti Udyog# 3e /ill announce them as and /hen they /ere
finalised#K The official said that Maruti Udyog has recorded first ever sales of
=<%'%% vehicles in its %& years of operations /ith )& per cent gro/th over the
previous year# KOur performance is mainly attri2uta2le to performance of MU8 our
main customer# 6uring last fiscal /e have recorded an increase of )>#); per cent in
sales over the previous year#K Stating that the company has already started commercial
supplies of fuel nec0 to MU8 during last fiscal the H1M8 official said the test trials
have 2een conducted for rear aCle and the commercial supplies /ould start during the
first half of current fiscal# FCpressing concern over the unprecedented hi0e in steel
prices the official said the steel prices during last fiscal increased 2y almost =& per
cent# According to him reduction in import duty on components strengthening of
rupee against dollar thus ma0ing import cheaper and signing of free trade agreement
/ith other countries /ould further add to the concerns#
>=
ThorouBh Aroe((iona+ #anaBe#en$ Ahi+o(oAh%
The unit sales of the company during %&&>(&, gre/ faster than the rest of the
domestic car industry and /as the highest ever in Maruti?s history# *ross Sales
Revenue gre/ 2y '' per cent over the previous year# !et Profit increased 2y ); per
cent compared to %&&=(&># The ratio of !et Profit to !et Sales /as ;#; per cent
compared to <#9 per cent in %&&=(&># 6uring the year /or0 on the company?s ne/
ventures proceeded as per plan#
La$e($ Facu+i$ie(
This state(of(the(art facility located in Manesar in 5aryana 2egins /ith an initial
capacity of '&&&&& units per year# This /ill 2e over and a2ove the capa2ility of over
,&&&&& units a year in our eCisting facility in *urgaon 5aryana# The ne/ car plant at
Manesar together /ith Su4u0i Motor -orporation?s ne/ plant in Sagara Hapan has
2een designed to meet the Su4u0i group?s glo2al aspirations in the future# As such the
Manesar plant comes equipped /ith many sophisticated systems and processes to
ensure high quality and productivity on the shop floor#
The company is also committed to upgrading facilities at the eCisting plant in
*urgaon# The total investment 2y Maruti and Su4u0i in the ne/ car plant the diesel
engine and transmission facility upgradation of the eCisting plant and in launching
>>
ne/ models /ill 2e close to Rs ,&&& crore# The other major venture S the diesel
engine plant ((( is also on course to 2egin operations in this calendar year# The plant
/ill manufacture state(of(the(art '#) litre diesel engines for cars# +t /ill start /ith an
initial capacity of '&&&&& diesel engines per year# This /ill ena2le Maruti?s entry into
the significant diesel car segment of the domestic passenger car mar0et# These ne/
facilities /ill strengthen the company?s leadership position in the domestic passenger
car mar0et# At the same time they sym2oli4e Su4u0i Motor -orporation?s continued
commitment to +ndia#
I#Are((i*e G+o"a+ 8o+d
The company /ill launch a ne/ eCport model during %&'%(')# This compact car
model /hile serving the +ndian mar0et /ould 2e for eCport mainly to Furope# The
company /ill target to eCport '&&&&& units of this model annually# A fe/ months
ago Su4u0i Motor -orporation and !issan Motor -ompany decided to /iden the
scope of their glo2al strategic alliance# As a first step they agreed to colla2orate in
manufacturing 2y utili4ing the facilities of the company# +n the ne/ scenario +ndia
and Maruti have acquired a very important role in this alliance# The increased scale of
operations on account of the !issan contract is li0ely to further improve cost and
quality competitiveness at the Maruti facilities /hich in turn /ill 2enefit customers in
the domestic mar0et# The company shares the *overnment of +ndia?s vision of
ma0ing +ndia a glo2al hu2 for compact cars# 3ith Maruti emerging as a contract
manufacturer for !issan +ndia ta0es one step for/ard in reali4ing that vision#
Mo($ Eicien$ Re(earch and De*e+oA#en$
3hile Su4u0i and Maruti remain committed to eCcellence in manufacturing 2oth
companies are also increasing colla2oration in R E 6# Su4u0i Motor -orporation sees
a major role for Maruti in the area of R E 6 for cars in Asia# 1uilding on the success
of the S/ift eCperience /here Maruti engineers trained in Hapan /or0ed closely /ith
their Su4u0i counterparts to design and develop a ne/ model the effort /ill 2e
empo/er Maruti to independently develop cars to suit preferences of +ndian
customers# The focus /ill 2e on tapping the vast talent pool availa2le in +ndia and
develop people through eCtended training at Su4u0i Motor -orporation Hapan# This
com2ined /ith augmentation of R E 6 facilities /ill help Maruti acquire a
preeminent position in Su4u0i?s glo2al R E 6 set(up#
>,
Maru$iM( S$ra$eB% $o 4o#e UA 5i$h Ne@ Mode+( : SurAri(e Mar&e$er(
The company is aiming at sales of one million cars per year in %&'&# +nvestment in
ne/ facilities and in R E 6 as outlined a2ove are 2oth part of the strategy to achieve
the am2itious sales goal# +n addition the company /ill launch a series of ne/ models
to 2e a2le to attain the one million sale target# +t plans to launch five ne/ models in
the neCt five years to meet the needs of +ndian customers# This /ill 2e over and a2ove
face(lifts of any eCisting models and launch of ne/ variants# To sell one million cars
in a year the company /ill have to eCpand the net/or0 of sales outlets as /ell as
service /or0shops across the country# This process /hich gathered pace in recent
years is li0ely to accelerate in the neCt fe/ years# 1esides increasing the num2er of
outlets the company /ill also revamp the quality of infrastructure and service at these
outlets#
Gra""inB 4o#Aac$ 4ar OAAor$uni$%
The company 2elieves that the lo/ penetration rate of cars in +ndia and the relatively
lo/er percentage of first time 2uyers present a tremendous opportunity for gro/th#
Therefore the company?s optimism stems from positive macro economic factors
including significant *6P gro/th 2ias to/ards lo/er taCes a young population
focus on roads and rural infrastructure and gro/ing consumerist aspirations# 8i0e
-hina 2efore it the +ndian car mar0et may 2e on the threshold of eCplosive gro/th#
This gro/th is li0ely to 2e driven 2y the entry(level segment# Over %> million +ndians
have 2ought t/o /heelers in the past five years and /ill 2oost demand once they
upgrade to four /heels# The company /ith a range of models in the entry level and
compact segments is 2est placed to tap this opportunity# Su4u0i Motor -orporation
has 2een the leader of the minicar mar0et in Hapan for over three decades# +t has the
right technology and the right products to tap the compact car opportunity in +ndia#
><
The eCpansion of their sales and service net/or0 innovative and focused mar0eting
initiatives aggressive cost reduction and productivity improvement programmes their
tie(ups /ith regional finance companies and 2an0s to eCpand the reach of organised
finance are all efforts to reach out to entry level customers#
Sho@ed Grea$ Socia+ Re(Aon(i"i+i$%
The company is conscious of its responsi2ility as a corporate citi4en# 6uring the year
the company has eCpanded the num2er and reach of Maruti 6riving Schools across
the country# Fquipped /ith driving simulators and specially trained instructors these
schools provide a comprehensive theory(cum(practical curriculum modeled on the
2est international driving schools# They have 2een very /ell received especially
among /omen learners#
The recent decision of Su4u0i to set up a separate joint venture for the manufacture of
diesel engines and a ne/ plant had raised concerns that MU8 may not 2e a2le to
2enefit su2stantially from any future eCpansion plans# 5o/ever government
intervention 2efore the crucial 2oard meeting to decide on the joint venture assured
MU8 a su2stantial <&: sta0e in the joint venture for the ne/ vehicle manufacturing
plant# MU8 has 2een enjoying good gro/th in sales this fiscal /ith overall sales in the
Apr(Oct period gro/ing 2y %&#,: LoL to )&%9<'# *oing for/ard too /e eCpect
MU8 to enjoy good sales gro/th given its /ide distri2ution net/or0 high customer
recall and attractive pricing# 3e maintain our Out Performer rating on the stoc0 /ith a
target of Rs===#
Maruti Udyog 8imited has led +ndia?s car mar0et for more than a quarter of a
century# First esta2lished in ';9' the company is no/ a fully(fledged su2sidiary
of the Su4u0i Motor -orporation# +ts principal activities include the manufacture
and sale of motor vehicles and spare parts via a )&&(strong dealer net/or0
scattered across +ndia# The year %&&% sa/ Maruti add finance leasing insurance
and pre(o/ned car 2usinesses to its portfolio increasing the scale of its operations
and prompting a revie/ of its processes and systems# Oracle -onsulting /as
>9
engaged to install a num2er of Oracle F(1usiness Suite modules and integrate
them /ith Maruti?s eCisting systems# The eight(month project involved managing
up to >& people including Maruti staff Oracle consultants and employees of
third(party organi4ations# Oracle also assisted Maruti /ith change management a
critical part of the process to ensure quic0 user acceptance#
Grea$ ManaBe#en$ 4on$ro+
Prior to employing Oracle Maruti used a num2er of home(gro/n systems to manage
its various lines of 2usiness# Many of these disparate systems could not tal0 to each
other requiring staff to enter data multiple times and consolidate information to
generate management reports# The addition of four ne/ 2usiness sectors in %&&%
created further pressures requiring constant monitoring and human intervention to
0eep the system operating across the hundreds of locations Maruti serves /ithin +ndia#
To support this gro/th and improve efficiency the company decided to revamp its
information technology systems to provide end(to(end visi2ility into the organi4ation#
U3e /ere loo0ing for a fleCi2le eCpanda2le system that /as easy to manageV said
Rajesh Uppal chief general manager information technology Maruti Udyog# UThis
/ould reduce the compleCity of the +T environment and our reliance on certain people
to maintain the systems. And 2ecause our 2usiness is undergoing a period of rapid
eCpansion it /as important to have a standard system that could scale easily#V
To minimi4e the impact of the system change on its 2usiness Maruti decided on a
phased migration to Oracle F(1usiness Suite# As a first step the company decided to
replace its financial purchasing and human resources systems /ith Oracle
Financials Oracle Procurement and a range of Oracle 5uman Resources
applications# Oracle -onsulting /as selected to supervise the implementation
including determining Maruti?s requirements and developing a project plan designing
the system deploying the soft/are managing the various parties involved and
providing post(implementation support#
TiBh$ Pro'ec$ ManaBe#en$
As /ith all Oracle -onsulting(led deployments consultants sat do/n /ith Maruti
managers and 0ey 2usiness users to scope out their requirements# A steering
committee /as set up to guide the implementation and ensure consultants had
>;
recourse to senior eCecutives for advice# The project plan delineated the
responsi2ilities of each party and incorporated monthly milestones and testing
deadlines# Oracle -onsulting ensured a fast pro2lem(free installation 2y employing
Oracle?s 1usiness Flo/ AcceleratorsYan implementation approach that leverages
predefined 2usiness flo/ templates to reduce the time and cost associated /ith
application deployments# A 0ey project challenge /as interfacing the Oracle modules
/ith Maruti?s legacy systems including direct item procurement dispatch systems
the time card system for attendance and the 5yperion 2usiness intelligence platform#
The integration had to 2e completed /ithout any impact on the company?s 2usiness
/hich frequently deals in large volumes# For eCample Maruti generates more than
%&&& invoices each day and any lengthy interruptions could have disastrous impacts
on cash flo/ further do/n the line#
Grea$ Fu$ure P+an(
After the success of the financials procurement and human resources deployment
Maruti is considering eCpanding its Oracle footprint# The company is evaluating
Oracle Advanced Supply -hain Management and Oracle Fnterprise Asset
Management# U3e /ould li0e to automate supply chain management and integrate
this process /ith the Oracle FRP systemV said Uppal# U3e are also loo0ing at lin0ing
more systems /ith Oracle so /e can access real(time information across all our
2usinesses# + eCpect Oracle -onsulting to play a role in future projects#V
,&
,'
A 4ri$ica+ Ana+%(i( o Mar&e$inB S$ra$eB% o Maru$i SuGu&i
Strategy and timing are the 5imalayas of mar0eting# Fverything else is the -ats0ills#
( Al Ries
Maruti has 2een successful in capturing the car mar0et 2ecause of the eCcellent
product it has produced# The mar0et research conducted 2y Maruti Su4u0i sho/ed
that +ndian cars /ere overcro/ded /ith tur2ans and sarees to 2e accommodated# The
idea /as to create a voluminous compact car# The Utall 2oy? model /as ta0en from the
Ato4 and it /as redesigned to meet +ndian conditions# The car also gives high
mileage# The engine delivers adequate torque i#e# the a2ility to pull loads even at very
lo/ speeds(((this proves to 2e very essential for slo/ and traffic(heavy +ndian
conditions# The most important is the seating /hich is high and gives Uroad
commandV#
Maruti Su4u0i /as competing /ith Maruti Su4u0i in the small car segment and it
offered technology that other car ma0ers thought /as too advanced for the slo/
gro/ing +ndian mar0et# Maruti has no/ 2uilt up a reputation such that it is the first
preference of any2ody /ho has driven or ridden in it#
The mar0eting strategy employed 2y Maruti Su4u0i can 2e studied /ith insights into
their STP analysis and Mar0eting MiC#
,%
Pe($ Ana+%(i(
Z+n order to understand the conditions under /hich the Maruti products /ere launched
in the +ndian mar0et it?s necessary to analy4e the factors that influenced its
effectiveness#
Po+i$ica+ 4ondi$ion(
Maruti Su4u0i entered +ndia /hen li2erali4ation /as at its pea0# As a result
everyone /as very open to the idea of foreign companies colla2oration "Maruti
+ndia [ Su4u0i Hapan$ setting up 2ase in +ndia#
The government insisted on the -ompanies using <&: local content in the
manufacture of the cars as they /ould have generated tremendous revenue for
+ndia# Maruti Su4u0i achieved this in a very short time#
A positive FO+M policy also has helped Maruti Su4u0i to 2oost its top line /ith
FCports of Maruti Su4u0i products to other countries#
Econo#ic 4ondi$ion(
The economic conditions during the launch of Maruti Su4u0i /ere very relaCed
and li2eral# Maruti Su4u0i /as launched /hen the country had just opened its
doors to li2erali4ation# So there /ere no strict norms or 2yla/s that the company
had to adhere 2y#
The resources availa2le in +ndia /ere utili4ed 2y the multinationals "Su4u0i$
/hich generated considera2le revenue for the government#
A 2ooming 2an0ing sector and a phenomenal gro/th in Auto 8oans mar0et has
made Maruti Su4u0i more afforda2le#
Socia+ 4ondi$ion(
A rise in Middle class and concept of small nuclear families has propelled a
demand of 1(Segment cars# Maruti Su4u0i provides an eCact choice for this
demand leading to its high gro/th#
,)
Techno+oBica+ 4ondi$ion(
Since Maruti Su4u0i manufacturers everything from the smallest of scre/s to the
2iggest of machines in its factory it is a2le to maintain the efficiency of the
machines# Maruti Su4u0i therefore manufactures cars under 2est of conditions
/ith the 2est of machinery# As a result the cars manufactured are of top quality#
STP > SeB#en$a$ionF TarBe$inBF Po(i$ioninB
Mar0eting is not an event 2ut a process # # # +t has a 2eginning a middle 2ut never an
end for it is a process# Lou improve it perfect it change it even pause it# 1ut you
never stop it completely#
- Jay Conrad Levinson
SeB#en$a$ion
Segmentation is 2ased upon considera2le evidence that a single mar0eting approach
or formula /ill not /or0 for all mem2ers of the community to 2e served#
GeoBraAhic
The region of interest of Maruti Su4u0i is /hole +ndia /ith special focus on Type A
and fast gro/ing Type 1 cities across +ndia#
De#oBraAhic
Age S Any2ody of age 2et/een %& S =& yrs#
Income S Any2ody /ith an income of over = la0h p#a#
Occupation S Millennials employed as professionals managers and those /ant to 2uy
their first car#
Social Class S Middle class Upper middle 8o/er Upper and Upper uppers#
P(%choBraAhic
Personality S 6reamers those /ho /ant to achieve 2ig am2itious price conscious
too0 their first step to/ards success and value driven#
,=
Beha*iora+
Benefits S Wuality Style Price "economical$
User status S Potential users and first time users
Buyer S Readiness Stage S Those /ho are a/are informed interested and intend to
2uy
TarBe$inB
+n evaluating the mar0et segments Maruti Su4u0i has loo0ed at t/o factors ( The
segments overall attractiveness and the companies resources# As is very clearly seen
Maruti Su4u0i has opted for a selective speciali4ation 0ind of targeting# Maruti Su4u0i
has selected a num2er of segments each o2jectively attractive and appropriate# There
is minimal synergy among the segments 2ut each is a cash co/# This multi segment
strategy has had the effect of diversifying the firm?s ris0#
5aving 1olly/ood cele2rities to endorse its cars paid off for Maruti Su4u0i#
1olly/ood cele2rities li0e Sunny 6eol as a 2rand am2assador targets t/o sections of
the society# Firstly his glamorous and sophisticated image appealed to the elite
effecting their purchase decisions# Secondly his adora2le persona appealed to the
middle class 2uyers /ho /anted a good car for the J2ig? investment they /ere ma0ing
and for people /ho /ere graduating from the second hand car#
The lo/ price tag of Maruti Su4u0i initiated a price /ar among all companies and
forced Tata +ndica to pre(pone its launch# The initial lo/ price tag and strengthened 2y
a solid mar0eting initiatives in form of print advertisements provided a solid
foundation for Maruti Su4u0i in +ndia /hich sho/ed in its sales of '<&&& units in just
> months#
Maruti Su4u0i has identified its target mar0et 2ased on its pricing strategy# S/ift aims
to 2e the price leader in 1(Segment cars# +t has al/ays priced its 2ase model lo/er
than Aen or +ndica giving all the features /hich they give in their higher models# 3ith
a constant change in its positioning strategy Maruti Su4u0i S/ift has succeeded in
identifying its target mar0et every time and emerging as the fastest selling car in its
o/n segment# 3ith the invent of S/ift Maruti Su4u0i is loo0ing to/ards entire ne/
segment of consumers and all set to target it to emerge as the mar0et leader in 1(
Segment cars#
,>
Po(i$ioninB
Since its inception S/ift has undergone a lot of changes in terms of its positioning#
First it /as S/ift then S/ift DO+ and then came finally S/ift D6+#

3hen S/ift /as initially launched it /as positioned as UThe -omplete Family -arV#
Since S/ift /as launched in 1(Segment it had Santro and Tata +ndica as its 2iggest
competitors in that segment# The stylish JTall 1oy? 6esign of S/ift together /ith its
slogan helped it to position itself as one of the cars to loo0 upon# 3ith a constant
change in its positioning Maruti Su4u0i al/ays tried to 0eep alive the 2u44 associated
/ith S/ift#
Maruti Su4u0i repositioned S/ift as USunshine -ar "smart car for young people$V
from earlier Ucomplete family carV# This /as done 2ecause the competitors /ere
coming out /ith similar products and then Maruti Su4u0i started /hat they call as
JFmotional Positioning?# This repositioning of S/ift also helped it to target the
segment of first time car 2uyers# Fven the print ads at this time /ere designed in a
/ay to project S/ift as the first car for the fastest gro/ing consumer segment of +ndia
at that time The Loung Professionals of the service industry that com2ined /ith
various loan facilities /ere too eager to 2uy their first car# This led to a phenomenonal
gro/th in its sales and further strengthening its position as a 2rand in consumer mind#
Thus the repositioning of S/ift gave it an edge over its competitors and also to
emerge as a tough rival to Maruti 9&& as JThe First -ar?#
,,
48APTER9<
DATA ANAL)SIS

,<
K,L Are %ou a@are a"ou$ $he Are(en$ "oo# in Mar&e$N
Les 9%:
!o '9:
As regard to mar0et 2oom and the respondents a/areness level a2out this nearly 9%:
of the respondents are a/are a2out the mar0et 2oom in the present economy /hile
the rest '9: are not a/are a2out any mar0et 2oom# The a/areness level is high
among the middle and the upper middle class and particularly among the 2usiness
class and the traders# One of the interesting finding of the study /as that many
respondents confuse 2et/een inflation and mar0et gro/th# Respondents 2elonging to
lo/er middle and middle class confuse /hether price rise has anything to do /ith the
automo2ile industry scenario#
,9
A2out the reasons ,>: of the respondents /ho are a/are a2out the mar0et 2oom feel
that it reflects the resilience of the +ndian economy and reflects a true picture of it#
This they attri2ute to the persistent increase in SenseC and continuing economic
gro/th rate /hich is someho/ near the dou2le digit mar0# %<: of the respondents
/ho are a/are a2out the mar0et 2oom feel that this is a temporary situation /hich is
li0ely to recede# Rest of the respondents could not attri2ute any concrete causal
relationship for the mar0et 2oom#
,;
-. 5ha$ #e$hod do %ou o++o@ or #ar&e$inB o %our Aroduc$(N
Only 6irect Sales Method %9:
Only +ndirect Sales Method '9:
1oth >=:
<&
2. Do %ou $hin& Ad*er$i(e#en$ i( an eec$i*e #e$hod o (e++inB %our au$o#o"i+e
Aroduc$(N
Les =>:
!o '9:
-ant Say %<:
<'
<. 5ha$ $%Ae o ad*er$i(inB @i++ "e he+Au+ in increa(inB (a+a"i+i$% o %our
au$o Aroduc$(N
Product Specific )=:
-ompany Specific %%:
Personality Specific '<:
-ant Say %<:
<%
;. Do %ou $hin& $ha$ "randinB he+A( in $he #ar&e$inB o %our au$o#o"i+e
Aroduc$(N
Les )=:
!o %<:
-ant Say );:
<)
.. Do %ou $hin& $ha$ au$o air( are eec$i*e #e$hod( o (a+e Aro#o$ionN
Les >>:
!o '%:
-ant Say )):
<=
0. Do %ou $hin& $ha$ ForeiBn Direc$ In*e($#en$ KFDIL (hou+d "e a++o@ed in
$he au$o #o"i+e (ec$or in IndiaN
Les )=:
!o )%:
-ant say )=:
<>
/. BeinB a +eadinB au$o#o"i+e "u(ine(( BrouA cou+d %ou A+ea(e e+a"ora$e on
Aroduc$ion (%($e#( *i(9O9*i( Vendor ManaBe#en$N
A lean manufacturing system is the order of the day# State(of(the(art systems to
monitor and ensure 2est of 2reed processes are the 0ey /ithin their 2usiness systems#
Also important is an efficient supply chain system fully supportive to the lean
manufacturing system#
=. 5here doe( Indian au$o#o"i+e indu($r% ($and on $he B+o"a+ #aA o Au$o
#o"i+e indu($rie( in $he @or+dN
The +ndian Auto +ndustry has just started getting a foothold on the glo2al map#
Presently the 2usiness is around USM 9#< 2illion of /hich approCimately M' 2illion is
the eCport mar0et# As per the latest Mc.insey report the auto component 2usiness
has a potential to gro/ 2y )&: and touch USM )> to =& 2illion 2y %&'> of /hich %& to
%> 2illions US could 2e eCport focused#
,1. Do %ou ha*e a dea+er ne$@or&N Do %ou (e++ direc$+% or $hrouBh dea+er(N
As regards their mar0eting strategy it could 2e derived from their responses that they
have a large dealer net/or0# A customer may also contact their 2ranch office in
his7her area to get the names and addresses# They can also supply sections directly#
For smaller lots the traders7 dealers may 2e contacted#
<,
,,. Do %ou o++o@ "randinB o Aroduc$( a( a Mar&e$inB ($ra$eB%N
Les <=:
!o >:
-ant say %':
<<
,-. Doe( "randinB o Aroduc$( he+A( $o i#Aro*e $he #ar&e$inB Ao$en$ia+ o
%our Aroduc$(N
Les ,9:
!o '%:
-ant say %&:
<9
,2. Fu$ure o $he au$o#o"i+e indu($r% in India.
Les <>:
!o '%:
-ant say '):
<;
,<. Ma'or 5ea&ne(( o Maru$i SuGu&iM( Mar&e$inB ($ra$eB%.
1randing '=:
Pu2licity ;:
+nfrastructure assessment E development <<:
9&
,;. 8o@ do $he ForeiBn Au$o#o"i+e 4o#Aanie( aec$ $he Aro(Aec$( o $he
do#e($ic A+a%er( in $he Indian #ar&e$N
Reduced the profit margin )%:
Made industry more competitive >):
6o not ma0e any significant effect '>:
9'
,.. Maru$i SuGu&i ha( a u$ure Bro@$h. )ou oAinion
Maruti is gro/ing and has good future <>:
Maruti is li0e any other automo2ile company %&:
-ant say >:
9%
,0. 5hich i( $he #a'or ac$or $o increa(e $he (a+e o %our Aroduc$(N
Only 2rand '<:
6emand(supply factor )>:
Only quality %):
Others %>:
9)
,/. Do %ou $hin& "rand eH$en(ion i( nece((ar% or $he co#Aan%N I %e(F @h%N
Les <9:
!o =:
-ant say '9:
Those /ho 2elieve that 2rand eCtension is necessary as part of its mar0eting
strategy holds the vie/ that /hen a 0no/n 2rand eCtends into a product category
that involves sophisticated and state(of(the(art technology consumers face
uncertainty and perceive a financial ris0 /hen considering the eCtension for
purchase# The recognition that 2rands are a po/erful yet underutili4ed assets is
/hy trademar0 licensing has 2ecome a popular mar0eting strategy# 1ecause many
2rand o/ners donBt have the resources to pursue every via2le 2usiness opportunity
they utili4e trademar0 licensing to enter ne/ mar0ets 2eyond their core
competencies#
,=. 5hich are $he Aroduc$( o $he co#Aan% $ha$ are a*ouri$e a#onB $he
cu($o#er(N P+ea(e Bi*e $he rea(on( a( %ou $hin&.
9=
&:
'&:
%&:
)&:
=&:
>&:
,&:
<&:
9&:
yes
no
cant say
yes <9:
no =:
cant say '9:
Wuality 2ased >>:
Fconomical )&:
1randed ,:
-ant say ;:
9>
-1. Do %ou (ee $he Aro"a"i+i$% o a (eAara$ion "e$@een Maru$i and SuGu&i in
u$ureN
Reduced the Profit margin )%:
Made +ndustry More -ompetitive >):
6o not Ma0e any Significant Fffect '>:
9,
+n current mar0et scenario the competition in AUTOMO1+8F sector is the highest#
So to remain in the competition all automo2ile companies have to develop in terms of
technology loo0 and other features# MU8 as a +ndian company is the mar0et leader
in +!6+A 2ut as the glo2ali4ation is coming up and the govt is encouraging the F6+
it is getting tougher for MU8 to maintain it?s mar0et share# As many M!- are coming
to +!6+A /ith improved technology E features MU8 has to improve it?s eCisting
technology E have to add ne/ features to rope do/n the eCisting as /ell as the ne/
customers# MU8 has to add ne/ products to its product miC# MU8 has to go for more
promotion to catch up the M!-s#
3ith the changing economic environment the auto industry is heading for a complete
renaissance# The margin of the company is under the lens so the companies are doing
/hat ever it can to improve its 2ottom line#
The company /e have pic0ed up is also going through same 2ecause of this the
company is continuously shuffling and re(shuffling its operation to co(up /ith the
changes# The level of has /itnessed a complete revamp in its jo2 2ecause of these
changes# The jo2 they /ere heading no/ demand more in terms ofQ
'# Mar0et focussed approach
%# Pro2lem solving a2ility
)# Ta0ing initiative
These are fe/ of the changes in the role at this level /hich /as introduced 2ecause of
change in operation# And no/ in order to stay in the dog eat dog race the follo/ing
the competencies have to 2e fill developedQ
'# +ntegrated mar0eting principles
%# !e/ computer s0ills
)# .een to learn ne/ concept etc#
Thus the changes /ill economic involvement /ill ma0e ne/er and ne/er concept
emerge on the scene at the same time rendering the old concepts o2solete# Thus /e
conclude that /e the company has to see the sin of tomorro/ it has to adapt quic0ly
and develop ne/ arm?s for its soldier?s in term of competition#
9<
4OMPETITIVE SET
Since ma0or sale of #ar"ti is from its one pro1"ct #ar"ti ()) -e have trie1 to
i1entify its competitive set%
LEVEL OF
4OMPETITION
DEFINITI
ON
4OMPETING
4OMPAN)
NEED SATISFIED
,. Produc$ or# Small car#
"Maruti
9&&$
5yundaiTata Fase in commuting
/ithin city limits fuel
efficiency lo/ priced
light/eight#
-. Produc$
4a$eBor%
-ars#
"-onverti2le
s 8uCury
Mid(si4ed
Multipurpos
e Sports(
Utility
Station
3agons$
5yundai 5onda
Tata Ford 6aimler(
-hrysler MEM *M
Fiat S0oda#
4on*er$i"+e(! good
po/er to /eight ratio
superior handling#
LuHur%! Status sym2ol
high level of comfort
luCury features satisfies
ego#
Mid9(iGed! Reasona2ly
Spacious high on
comfort E Safety
features#
Mu+$iAurAo(e! Spacious
used for heavy(duty tas0s
li0e to haul heavy
luggage used for
commercial purpose#
SAor$( U$i+i$% Vehic+e!
5igh driving position
good for rough and tough
usage#
S$a$ion 5aBon! 5igh
load carrying capa2ility
99
spacious comforta2leF
fitted /ith useful
accessories.
2. Generic Automo2il
es "Truc0s
1uses T/o
E Three
/heelers$#
Tata Asho0
8eyland Ficher
Motors 1ajaj
Lamaha 5ero
5onda TDS 8M8#
Transportation Troop
carriers 3ater tan0ers
*ar2age dumping#
<. BudBe$ FCpensive
products
li0e
He/elry
5ouses
and
Foreign
Trips#
6e 1eers "He/elry$
5ouse Star -ruises
"Foreign Trips$#
Status Shelter
-omfort#
9;
48APTER9;
FINDINGS AND RE4OMMENDATIONS
;&
RE4OMMENDATIONS
+n order to provide all the shots in the armoury of their employees the company
should implement these policies at levelQ
'# The company should arrange for inter corporate programmes so that the 2est
practises or concepts /ould 2e interchanged#
%# The company should provide their employee to go in for management
programmes from top management schools in gain ne/ /ay?s of doing thing#
)# The firms /ill have to set up small eCperimental shop?s /here an organisation
can house its 2est talent to pursue eCperiment innovate develop cutting edge
products dream up ne/ and 2etter /ays of running a 2usiness in order to
develop positive value addition to the organisation#
=# The company should arrange for game?s etc in order to create a forum of
informal interaction 2et/een customer and employees# These meeting /ill help
employees develop ne/ s0ills or get an idea for a ne/ product etc#
># An separate column in the appraisal form should 2e there for ne/ s0ill acquired#
Then on the 2asis of % or ) ne/ s0ill acquired he should 2e appraised and also
the compensation 2e raised# This /ill go a long /ay in motivating
employees in developing ne/ competencies#
,# The organisation environment should 2e made conducive li0e the
introduction of fleCi(time the accessi2ility of the /or0 place %= hour?s#
The training programme should 2e serviced from outside# Darious leader?s in various
fields should 2e invited as faculty or for guest lecture#

;'
ANNE?URES
;%
ANNE?URES
K,L Are %ou a@are a"ou$ $he Are(en$ "oo# in Mar&e$N
Les
!o
-. 5ha$ #e$hod do %ou o++o@ or #ar&e$inB o %our Aroduc$(N
Only 6irect Sales Method
Only +ndirect Sales Method
1oth
2. Do %ou $hin& Ad*er$i(e#en$ i( an eec$i*e #e$hod o (e++inB %our au$o#o"i+e
Aroduc$(N
Les
!o
-ant Say
<. 5ha$ $%Ae o ad*er$i(inB @i++ "e he+Au+ in increa(inB (a+a"i+i$% o %our
au$o Aroduc$(N
Product Specific
-ompany Specific
Personality Specific
-ant Say
;. Do %ou $hin& $ha$ "randinB he+A( in $he #ar&e$inB o %our au$o#o"i+e
Aroduc$(N
Les
!o
-ant Say
;)
.. Do %ou $hin& $ha$ au$o air( are eec$i*e #e$hod( o (a+e Aro#o$ionN
Les
!o
-ant Say
0. Do %ou $hin& $ha$ ForeiBn Direc$ In*e($#en$ KFDIL (hou+d "e a++o@ed in
$he au$o #o"i+e (ec$or in IndiaN
Les
!o
-ant say
/. BeinB a +eadinB au$o#o"i+e "u(ine(( BrouA cou+d %ou A+ea(e e+a"ora$e on
Aroduc$ion (%($e#( *i(9O9*i( Vendor ManaBe#en$N
=. 5here doe( Indian au$o#o"i+e indu($r% ($and on $he B+o"a+ #aA o Au$o
#o"i+e indu($rie( in $he @or+dN
,1. Do %ou ha*e a dea+er ne$@or&N Do %ou (e++ direc$+% or $hrouBh dea+er(N
,,. Do %ou o++o@ "randinB o Aroduc$( a( a Mar&e$inB ($ra$eB%N
Les
!o
-ant say
,-. Doe( "randinB o Aroduc$( he+A( $o i#Aro*e $he #ar&e$inB Ao$en$ia+ o
%our Aroduc$(N
Les
!o
-ant say
,2. Fu$ure o $he au$o#o"i+e indu($r% in India.
Les
;=
!o
-ant say
,<. Ma'or 5ea&ne(( o Maru$i SuGu&iM( Mar&e$inB ($ra$eB%.
1randing
Pu2licity
+nfrastructure assessment E development
,;. 8o@ do $he ForeiBn Au$o#o"i+e 4o#Aanie( aec$ $he Aro(Aec$( o $he
do#e($ic A+a%er( in $he Indian #ar&e$N
Reduced the profit margin
Made industry more competitive
6o not ma0e any significant effect
,.. Maru$i SuGu&i ha( a u$ure Bro@$h. )ou oAinion
Maruti is gro/ing and has good future
Maruti is li0e any other automo2ile company
-ant say
,0. 5hich i( $he #a'or ac$or $o increa(e $he (a+e o %our Aroduc$(N
Only 2rand
6emand(supply factor
Only quality
Others
,/. Do %ou $hin& "rand eH$en(ion i( nece((ar% or $he co#Aan%N I %e(F @h%N
Les
!o
-ant say
;>
,=. 5hich are $he Aroduc$( o $he co#Aan% $ha$ are a*ouri$e a#onB $he
cu($o#er(N P+ea(e Bi*e $he rea(on( a( %ou $hin&.
Wuality 2ased
Fconomical
1randed
-ant say
;,
BALAN4E S8EET
;<
S8ARE 8OLDING PATTERN
;9
BIBLIOGRAP8)
;;
BIBLIOGRAP8)
Boo& and Ar$ica+
'# M# Mahnot UPassenger -arsV Mar0et forecast and indicators %&&> (%&'>
%# Philip .otler Mareting Management pp# =<& S >&%
)# M#Rajshe0harV-over Story S 6efence As OffenceVBusiness!orld
"!ovem2er '< %&&,$
=# *irish Rao UMaruti charts gro/th via leasing fleet managementV "#e
$conomic "imes %>th March %&&,#
># 8ancelot Hoseph UFirst in classV Business India %,th May %&&,#
Na#e o 5e"(i$e(
,# ///#marutiudyog#com
<# ///#siamindia#com
9# ///#agencyfaqs#com
;# httpQ77///#cy2ersteering#com7pulmain7motoring7do/nload7!e/s&>&'&'#rt
f
'&# httpQ77///#vedpuris/ar#org7articles7+ndian:%&-ases7Maruti:%&Udyog
:%&in:%&%&&)#pdf
''# httpQ77///#vedpuris/ar#org72oo07the\car\industry#htm
'%# httpQ77fecolumnists#eCpressindia#com7print#phpXcontent\id],,;=)
')# httpQ77eCpressindia#com72udget7&>7fullstory#phpXcontent\id]9&%,,
'=# httpQ77///#share0han#com7articles7Union1udgetSpeech&=#htm
'># httpQ77///#indiain2usiness#nic#in7india(profile7automo2ile#htm
',# httpQ77///#mar0etingteacher#com78essons7lesson\PFST#htm
'&&