Maruti Udyog Limited[1]

Maruti Udyog Ltd.

Wagon R

Swift

Omni Maruti 800

Estilo Zen

SX4

Contents Introduction Products and their competitors. Decline and striking back in the market. Promotional Offers and advertising campaigns. • Sales. • Conclusion. • • • •

Introduction • Maruti Udyog limited established in 1981, though actual production commenced in 1983. • Competition to Hindustan motors by launching Maruti 800 in 1984.

Collaboration with Suzuki

• Suzuki motor corporation run for its volume and it has just 4-5% growth in Japanese market. • Suzuki has never been no.1 player in Japan • In India Maruti’s growth curve is steeper in sales promotion • Suzuki decided to go out from Japan and to be no.1 in the new market.

• On 17th September, Maruti Udyog was renamed to Maruti Suzuki India Limited. • Maruti Suzuki limited is a board managed company. • It is subsidiary of Suzuki Motor Corporation of Japan.

Maruti Suzuki India Limited • Chairman- Mr.R.C Bhargava • CEO-Shinzo Nakanishi

Mission- To provide maximum value for money to their customers through continuous improvement of products and services. Vision- Creating customer delight and shareholders wealth .

Products and their competitors • Offers 14 models of cars such as Maruti 800, Omni, Zen, Alto, Wagon R, Gypsy, Esteem, Baleno, Versa, Swift, SX4 etc. • In spite of all these models, Baleno failed to meet the customer expectations.

• Company planned for product upgrades and new product development-to reduce its excessive dependence on Maruti-800. • 'Versa' met with a disastrous response from the Indian consumer. • Three compact car models - Alto, WagonR, and Zen -- competing with Hyundai Santro, Tata Indica, and Fiat Palio.

Decline in market share • Even though MUL had slashed prices of certain models on a couple of occasions. • Decline in market share of Maruti over the years from 1999 to 2004. Striking back……

Promotional offers • Maruti focused its promotions strategy on targeting two-wheeler owners, by entering new domains and reaching out potential customers through its 'True Value‘.

• In 2003,to attract customers Maruti launched novel offers like "Change Your Life" campaign and also offered vehicle insurance for just ‘Rupee One only'

Television campaign • In 2003, came out with a toy car advertisement that became popular for its simplicity. • 'Kya karoon papa petrol khatam hi nahin hota‘.

Sales • The sales figure for the year 1993 reached up to 1,96,820 vehicles. • The company reached a total production of one million vehicles in March 1994. • “The first Indian Company to cross this milestone”.

• Maruti Suzuki, has sold 7,64,842 vehicles in 2007-08, an increase of 13.3% compared to 6,74,924 vehicles sold in 2006-07. This includes the company’s exports. • Their sales in the domestic market during march 2008 is 64,421 units.

• Maruti has more than 5 million satisfied customers in India and is currently having a share of around 54%in the domestic passenger car market where most major international automobile manufacturers are present.

Conclusion • Maruti has a network of 391 sales outlets across 230 cities all over India. • The service network covers 1,113 towns and cities, bolstered by 2,142 authorized service outlets.

• The company's change in strategy and emphasis on developing effective marketing communications began to yield results. • Wagon R and Zen were ranked first and third in the premium compact segment.

• Maruti ranked highest in customer satisfaction with after-sales service. True value Driving school Authorized service station Insurance Genuine accessories

Future Plan • Fourth assembly plant will be scaled up to produce 3,00,000 cars a year by 2010. • Maruti’s new product:" Splash”

• Maruti's consistent performance in the study over the past several years has resulted in a steady increase in the percentage of its customers who say they intend to remain loyal to the brand.

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