MARUTI SUZUKI INDIA LIMITED

-Competitive Strategies of the Market Leader

Presented By

Srikanth

Ashok

Prabhavathi

Pavani

Rani Garg

Sriman Reddy

Vishwa Prasad

Vision

The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholders Wealth; A pride of India

INTRODUCTON

Maruti was founded in 1971, and car manufacturing took place in 1981 After the decline of market share Maruti started its restructuring exercise New products launched by the company were well accepted Their strategic moves were new Kb engine and CNG versions of all its products Exports of small cars would be one of the major elements in company future growth strategy

BACKGROUND

In 1970,s: Indian government decided to have small car 1971: Maruti limited was set up 1978: company was liquidated 1981: Maruti Udyog limited was incorporated to take over the assets of Maruti limited 1982:Indian government and Suzuki signed the joint venture (Suzuki was offered 26% stake in Maruti) 1983:On december 14th 1983 the first vehicle from Maruti 800 was launched. 1984: Company launched Omni 1985: Company launched Gypsy( first off road viechle in India) 1987: Company started exporting cars

1990: Maruti launched its first sedan 1992: Suzuki increased its stake to 50% 1993: Zen was launched 1994:Maruti Esteem was launched 1997: Maruti came up with model workshop servicing centre 2000: Maruti reported a loss of 2.69 billion 2003: Floated initial public offering with a price per share of Rs.125 and listed in NSE and BSE 2006: Joint venture with Japan based Bellsonica Coororation( 70% stake of Bellsonica) 2007: Name changed from Maruti Udyod Ltd to Maruti Suzuki India 2008: MoU with Mundra Port and on 14th December 2008 completed its 25 years of operation

Competitive strategies
Maruti upgraded its manufacturing facilities to meet the challenge with high-end technology Broadened its product portfolio and expanded its sales and service network Promotional strategies like price cuts, promotional offers, launching campaigns, offering value added services It has a product offering at all price

Promotional strategies
In 2000, price-cut for Maruti 800, Omni, WagonR carnivals at IDTR to promote efficient driving and road safety change your life 2003 rupee one only zoom card, Do ka Chaar, Teacher Plus, Wheels of India

Upgrading manufacturing Facilities

Target of Challenge 50 i.e; improving productivity by 50% and reducing cost per vehicle by 30% by 2004-05 In 2008 manufacturing capacity from 8 to 10 lakh units It increased its diesel engine manufacturing capacity by 1 lakh units annually

Large product portfolio

2000 Alto 2001 Versa 2003 Zen 2004 Esteem 2005 wagon R, Baleno, Swift 2006 Zen Estilo 2007 Sedan, Vitara 2008 Swift Dzire 2011 new Swift It offers 14 brands and over 150 variants

Expanding business portfolio

Maruti Driving School - 2000, Maruti True value - 2001 Maruti Finance 2002 Maruti Insurance Green Cabs with GPRS Website for True Value customers

Distribution Network
Distribution

network of maruti kept it ahead

from its competitors

Introduced

non-stop maruti express

highways
First

automobile company to start Call

centre
Express

service Facility and Maruti Versa

Service support

 Concentrating
Maruti

on Tier 1,2,3 cities

is the only company which also

concentrated on rural India

In

1987 itself it started exporting its cars awards from the All India

received

Engineering Export Promotion Council (EEPC)

Planning

to open more number of outlets in

major cities, due to increase in the

SWOT
Strengths Established distribution & after sales network Brand image product offering at all price points Japanese Technology
Opportunities Rural Markets Increasing purchasing power Scope of increasing Exports Eco friendly cars Diversify

Weaknesses Changing Customer Preferences Not concentrating all segments

Threats Competition from foreign Companies Increase in fuel prices

New Swift A-star SX-4

Kizashi Ritz Dzire

Wagon R Alto Zen(Estilo)

M-800 Versa Omni

Exports
The Company clocked its highest ever exports at 147,575 units, a growth of 111% in the Fiscal Year 2009-10. MSIL Receives Gold Trophy for "Top Exporter for the Year 2008-09" for the Northern region. The world loves Alto - more than 2 million units sold A star crosses the 2 million mark in just three years

Future
The present market share of MSIL is 44.9% But until 2009 its about 52%, because it lose its share to Ford India and Volkswagen mainly. Designing small cars suitable for the Indian conditions It should launch compact cars with more features to meet the needs

Contd

It should concentrate on more fuel efficient cars as in future the oil prices increase It should emphasize on the growing export market. It has already planned to introduce 15 to 20 new products in next 5 years It should introduce its electric car before its competitors does It has already introduced its CNG version which is eco friendly.

OUTLOOK

Car market leader Maruti Suzuki India Limited sold a total of 10,18,365 vehicles in 2009-10. First time in Indian automobile history that a car company has sold over a million units in a financial year. This included 8,70,790 units sold in the domestic market, the highest ever by the company in a fiscal. The total sales numbers in 2009-10 mark a growth of 29 per cent over last financial year. Maruti Suzuki's total sale in 200809 was 792,167 units The export numbers in the year were led by A-star.

During March 2010, Maruti Suzuki sold total of 95,123 units,

Ritz launched in May 2009, Grand Vitara launched July 2009 and Eeco launched in January 2010 A spate of new launches and product refreshments during 2009-10 helped the company to clock sterling performance in the fiscal. These included Maruti Suzuki Ritz (May 2009), all-new Grand Vitara (July'09), new Estilo with K-series engine (Aug'09), new SX4 with VVT engine and SX4 with automatic transmission (Oct'09) Eeco (January 2010). On March 23, 2010, Maruti Suzuki rolled out the one millionth car of the year 2009-10. This feat takes the company into a very select group of global automakers with such volumes. Maruti Suzuki is now expanding its production capacity to reach 12,50,000 units (1.25 million) by 2012. In March 2010, the company announced an investment of Rs 1,700 Crore for expansion of the production facilities by 2.5 lakh units at its Manesar plant.

Thank You