Sales and Distribution Strategies of

Maruti Suzuki and Hundai

By-
Naman Avtar
Subhashish Debraj
Jagdish Jayant
 INTRODUCTION

India has emerged as one of the world's
largest manufacturers of small cars. According
to New York Times, India's strong engineering
base and expertise in the manufacturing of low-
cost, fuel-efficient cars has resulted in the
expansion of manufacturing facilities of several
automobile companies like Hyundai
Motors, Nissan, Toyota, Volkswagen and Suzuki.

 AUTO INDUSTRY IN
INDIA
• The Automobile industry in India is the seventh largest in the
world with an annual production of over 2.6 million units in
2009.
• In 2009, India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand
• By 2050, the country is expected to top the world in car
volumes with approximately 611 million vehicles on the
nation's road.
• Following economic liberalization in India in 1991, the Indian
automotive industry has demonstrated sustained growth as a
result of increased competitiveness and relaxed restrictions.
• Several Indian automobile manufacturers such as Tata
Motors, Maruti Suzuki and Mahindra and Mahindra,
expanded their domestic and international operations
•
 MARUTI SUZUKI
 Maruti Suzuki India Limited (MSIL, formerly
named Maruti Udyog Limited) is a subsidiary of Suzuki
Motor Corporation, Japan. MSIL has been the leader of
the Indian car market for over two and a half decades. The
company's two manufacturing facilities are located at
Gurgaon and Manesar, south of New Delhi. The Manesar
and Gurgaon facilities have a combined capability to
produce over a million (1,000,000) passenger car units
annually.


Domestic-70790, Export-147575, Total-1018365

 PRODUCTS
 The company has a portfolio of 13 brands
and over 150 variants across Maruti 800, Omni,
international brands Alto, A-star, WagonR, Swift,
Ritz and Estilo, off-roader Gypsy, SUV Grand
Vitara, sedans SX4 and Swift DZire and the
newest entrant Eeco.
 DISTRIBUTION
CHANNELS
• Sales network of 802 centers in 555 towns and cities
• Provides service support to customers at 2,740
workshops in over 1,335 towns and cities.
• The company is focused on rapidly expanding the
sales and service further across the country.
• Distribution takes place by means of roadways
mainly in HGV mainly outsourced, to cover each
and every area.
 SALES STRATEGY
• Easy Finance Options
• Presence across segments
• Advertisements targeting different segments
• Provides insurance on new car purchase since 2002
• Technology oriented
• Psychographics is used :
o Wagon-R : Smarter people (executives)
o Omni : People who need to transport goods
o Alto : Small car : small family
o Zen Estillo : Young trendy people

 HUNDAI
• South Korean company
• Entered India through its subsidiary HMIL
• Set up their manufacturing plant in Chennai on May
26, 1996
• Decided to enter India through new product, Santro,
a B segment car


•
 STRATEGIES
PROMOTIONAL STRATEGY PRICING STRATEGY
 

 WOMEN FRIENDLY INITIATIVES VALUE STRATEGY

 

 HYUNDAI ROPED IN SAATCHI & LAUNCHED CARS IN UNITED

SAATCHI AS THE AD AGENCY STATES AT 20% LOWER RATES
 THAN THE JAPANESE CARS.
SHAHRUKH KHAN AS THE

BRAND AMBASSADOR
 SWOT Analysis
STRENGTH WEAKNESS


 PROPER MARKET RESEARCH KOREAN CARS ARE RANKED



 BELOW INDIAN CARS BY INDIAN

INTRODUCTION OF NEW SMALL
 CUSTOMERS
CARS


 ESTABLISHING OWN PLANT

OPPORTUNITY THREATS
 

HIGHDEMAND OF SMALL MUL HAS A DOMINATING



CARS WITH ONLY MUL AS MARKET SHARE

A PLAYER OF SMALL CAR 

MAKING PEOPLE BELIEVE

INDUSTRY
IN THE NEW BRAND
 SANTRO
HMIL’s first car
Priced at Rs 2,89,000 against Maruti Zen at
3,45,000
75000 vehicles sold in a period of one year
( Apr,1999- Mar, 2000)
Made HMIL second largest company after MUL
 MARKETING STRATEGIES
OF SANTRO
Positioning and Targeting
Targeted the B segment
Small car with many additional features and low
prices
Marketing Mix
Pricing based on consumer perceptions
3 versions of product with additional features
Elaborated process to select dealers and place of sale
Promotion done by Media Advertisements by
celebrities like SRK
 SUZUKI Vs. HYUNDAI
Ø Marutiis more cost centric whereas Hyundai is
more product centric
Ø Its major market share is in India whereas the
major market share of Hyundai is Korea
Ø Maruti spends less on advertisement in the on the
other hand Hyundai spends more on
advertisement costs
Ø Maruti is mainly a collaboration of Maruti and
Suzuki while Hyundai is mainly a own brand
and doesn’t have any collaboration
CONCLUSION