STRATEGIC MARKETING PROJECT

• Diptiman Som
• Prithwiraj Pal
• Shatabdi Roy
• Subhadeep Paul
• Subhankar Dutta
• Prashant Kr Gupta
 VISION

1984 :- Fuel efficient Vehicle with latest technology.

1987 :- Leader in Domestic Market and Be among

Global Players in Overseas Market.

1997 – Till Date :- The leader in Automobile

industry,
Creating Customers delight and
Shareholders wealth, ‘a pride of
India’.
ABOUT MARUTI SUZUKI

Subsidiary of Suzuki Motor Corporation of

Japan

India's largest passenger car company

More than 25 Years of trust

Over 7720 employees in 4 plants

Indian Automobile Industry (2009-10)
 CURRENT STRATEGIES BY MARUTI

Pricing strategy - catering to all segments

Offering one stop shop to customers
Repositioning of Maruti products
Customer Centric Approach
Committed to motorizing India
Realisation of importance of vehicle
maintenance services market
Playing on cost leadership
 COMPETITOR ANALYSIS

HYUNDAI

1. Positioning of Hyundai Santro

- Family Car to Smart Car for young People
- Complete Family Car to Sunshine car.

2. Hyundai’s Pricing Strategy

- Markdown of Prices on Santro Xing
- Non AC Santro at 2.79 Lacs
 TATA MOTORS

1. Positioning Of Tata Indica

- Indica is positioned as ‘more car per car’

2. Tata’s Pricing Strategy

- Indica is priced between Rs 2.56 Lacs to 3.88 Lacs
 CURRENT THREATS

Perception Change

Growing Competition In Compact Cars

Few Maruti models may face extinction

 Competitive Positions

Market leader (54% in 2008-09)

 Expandingthe total market.

Defending the market share.
Expanding market share.
Porter’s Five Forces
 Basis of Segmentation

Geographic

Region, City or Metro

Size, Density, Climate
Demographic

Age, Gender, Family size

and Fife cycle, Race,
Occupation, or Income ...

Psychographic

Lifestyle or Personality
Targeting :- Selective Specialization

Market
Urban Semi – Urban Rural
Product

A1 Yes Yes

A2 Yes Yes Yes

A3 Yes Yes

SUV Yes

C- Class Yes Yes Yes

Targeting :- on the basis of income Group

Income Group
RS. 2- 3 lacs. RS. 3-5 lacs. RS. 5 - > 5
Product /annum /annum lacs. /annum

A1 Yes

A2 Yes Yes

A3 Yes

SUV Yes

C- Class Yes Yes Yes

 Positioning

Product Target Customers Benefits Value Proposition

A1 A consumer who wants Durability and A car which gives

car. Performance Durability in low cost.

A2 A consumer who wants Spaciousness . A spacious small car

Small & spacious car. without extra cost.

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

SUV Lifestyle Oriented Rigidness, Luxury A Vehicle that provides

consumers. and Comfort . the luxury and Comfort of
a car.
C-Class A consumer who wants More spacious car. A big car with reasonable
car for commercial use price
 BCG Matrix

Relative market share

= Business unit sales this year
Leading rival's sales this year

Market growth rate

= Individual sales - Individual sales
current year pervious year
Individual sales pervious year
 Generic Strategies

• Overall cost leadership

• Low-cost-position relative to a firm’s peers
• Manage relationships throughout the entire value chain

• Differentiation
• Create products and/or services that are unique and valued
• Non-price attributes for which customers will pay a premium

• Focus strategy
• Narrow product lines, buyer segments, or targeted geographic
markets
• Attain advantages either through differentiation or cost
leadership
 Generic Strategies

Lower Cost Differentiation

S Industry wide Cost Leadership Differentiation

c
o
p Cost Focus Differentiation
Particular Focus
e Segment

Competitive Advantage
 Ansoff's Matrix

Existing Product New Product

Market Penetration
• Distribution Product Development
•Expansion of •New product –
Existing
manufacturing Splash
Market facilities

Market Development Diversification

New •Exports
Market
 4Ps of Marketing

Product
Price
Place
Promotion
 EXISTING PRODUCT STRATEGY

Product Line Products

A1 800

A2 Alto, Zen ,Wagon –R, Swift, A-star

A3 D ZiRE, Sx4

SUV Vitara, Gypsy

C - Class Omani, Versa

 PRODUCT STRATEGY

Guarantees & After sales

warranties services
Delivery
points &
Replaceme Attributes
Core nt or
Styling systems
Formal
Product returns Colour
Product
policy
Instructions Core Installation
Manual Product (for bulky
products)
Payment Brand
options Name
(for high Quality
Packaging C
priced ed ust
products) a uc om Augmented
Tr nd atio er
Customer ai
complaint
ni
ng
n
Product
management

Future Product
 Suggested product strategy

More fuel efficient cars.

AlterNet fuel cars.
Eco friendly cars.
More focus on A1, A2 & A3.
 Existing Price strategy

Pricing Objective :- Market share &

Cost Leadership

Pricing Method :- Markup Pricing (cost plus pricing )

Pricing strategy :- Economical Pricing

 Suggested price strategy

Continue Economic pricing strategy as it will help to

achieve goal of become cost leader.

Expansion of manufacturing facility to achieve

economies of scale.
 Existing Place strategy

600 New car sales outlets covering 393 cities.

 265 ‘Maruti True Value’ outlets spread across 166

cities.

2628 Maruti Authorized Service Stations, covering

1220 cities.

Tie up with Adani group for exporting 200,000 units

through Mundra port Gujarat
 Suggested Place strategy

400 new car sales outlets in next three years.

 150 new true value shops in next three years.

1200 new Maruti Authorized Service Stations in

next three years.

Tie up with other distributors for Exports.

 Existing promotion strategy

o Advertising
o TV Ads
o Print Ads
o Radio Ads

o Advertising Strategy
 Persuasion Advertising

“Ghar Aa Gaya Hindustan”

“India Comes Home in Maruti Suzuki.”

 Information Advertising
 Cont………….

 Alternative Advertising Options

 BTL - Sponsorships

• TV shows - India’s Got talent

 Place Advertising – Bill boards

Sales Promotions
 Product warranties
 Premiums (gifts)
 Trade shows
 2,628The number of workshops that provide customers with
maintenance support in 1220 cities.
 Suggested Promotion Strategy

Continue with existing Advertising strategy.

 Look for Alternative Advertising Options.

• BTL