Study Report On Maruthi Suzuki

A STUDY REPORT ON MARUTI UDYOG LTD.THE KING OF AUTOMOBILE INDUSTRY

SUBMITTED TO:-

SUBMITTED BY:-

SHARAD VERMA

DHRUV GOSWAMI

FACULTY S&D

VINAY KRISHNA DASI VIRENDRA RATHORE MANISH JURI

INTRODUCTION……..

Maruti Suzuki India Limited is a publicly listed automaker in INDIA. It is a leading four-wheeler automaker manufacturer in south asia. Suzuki motor corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company headquarter is in GURGAON, HARYANA. Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800 , based on the SUZUKI Alto kei car ,which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and premier Padmini were both around 25 years out of date at that point Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Models similar to Marutis (but not manufactured by Maruti Udyog) are

sold by Suzuki and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800 ,till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far . Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved.

Mission- To provide maximum value for money to their customers through continuous improvement of products and services.

Vision- Creating customer delight and shareholders wealth .

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 was their highlights.

MARKET SCENERIO (2007-08 )….

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for ten years in a row in annual survey. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation

of Japan, has been the leader of the Indian car market for over two decades. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on 14 December 1983.

BRANDS OF MUL……. ➢

Historious car is Maruti 800

Maruti 800 - Launched 1983 - Largest selling car inIndia, until 2004 - cheapest car in India. (P)“Change ur life” ➢ Omni – 1984, 2 Face-Lifts(P) “Fits all” ➢ Gypsy – 1985 (P) “King” ➢ Wagon-R – 1999, 2 Face-Lifts.(P)”For the smarter race” ➢ Alto – 2000, Currently the largest selling car in India. 1 Face-Lift. (P) “Lets go” ➢ Versa(2003-) (P) “The joy for travelling together” ➢ Zen Estilo(2005-) (P) “ Shape ur world” ➢ Swift 1 very small face-lift(2005) (P & D) • Maruti Suzuki SX4 (May 2007- ) (P & D) “Men are back” • Suzuki Grand Vitara Sports Utility Vehicle - July 2007. Imported(P) “Play it your way” • Maruti DZiRE Sedan Version of swift - March 2008(P & D) “The heart car” • Suzuki Alto (Sold in India as the Maruti A-Star) Launched in 2008 December. “Stop @ nothing” Models of 2009 • Suzuki Splash • Ritz “Live the Moment” Targeting :- Selective Specialization Market

Urban

Semi – Urban

Rural

Yes

Yes

Product

A1

A2

Yes

Yes

A3

Yes

Yes

SUV

Yes

C- Class

Yes

Yes

Targeting :- on the basis of income Group Income Group RS. 2- 3 lacs. RS. 3-5 lacs. /annum /annum Product A1

Yes

Yes

RS. 5 - > 5 lacs. /annum

Yes

A2

Yes

Yes

A3

Yes

SUV

Yes

C- Class

Yes

Yes

Yes

Positioning:-

Product A1

Target Customers A consumer who wants car.

Benefits

Value Proposition

Durability and Performance

A car which gives Durability in low cost.

A2

A consumer who wants Small & spacious car.

Spaciousness .

A spacious small car without extra cost.

A3

A consumer who wants more comfort car

Design, Style and Luxury.

A car design with style and luxury.

SUV

Lifestyle Oriented consumers.

Rigidness, Luxury and Comfort .

A Vehicle that provides the luxury and Comfort of a car.

C-Class

A consumer who wants car for commercial use

More spacious car.

A big car with reasonable price

4Ps: Product  Price  Place  Promotion PRODUCT STRATEGY: Portfolio of 12 products  Five product lines

Product Line

Products

A1

800

A2

Alto, Zen ,Wagon –R, Swift, A-star

A3

D ZiRE, Sx4

SUV

Vitara, Gypsy

C - Class

Omani, Versa

Price:-

The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti – 800 is the lowest price car of this company. Alto, Omni, Wagonr, are also the low price car of the company, Zen & Esteem are the mid price car of the company. But Grand Vitara is the high price modle of the company . The price of car are decided according to its product varity, quality, design etc.

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 Mnudra 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. Promotion Strategy:○

Advertising ○ TV Ads ○ Print Ads ○ Radio Ads ○ Advertising Strategy  Persuasion Advertising “Ghar Aa Gaya Hindustan”

“India Comes Home in Maruti Suzuki.” Information Advertising

 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. Maruti and CRM: 

Maruti created a land-mark in CRM by launching a website for the customers in the year 1998 Maruti Auto Card-- Auto Card brings the customer all the advantages of an international credit card in addition to bringing the customer an opportunity

Maruti True Value Out let:Maruti has aided customers by providing them the facility to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return. This helps them retain the customer. Maruti Call Center:-

Maruti has proper customer complain handling cell under the CRM dept. The CIC will help MUL rapidly build an information pool of over 3 million Maruti owners as well as that of its prospective Maruti insurance:It has launched in 2002 Maruti provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited. This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception. SWOT Analysis:-

STRENGTHS Bigger name in the market Trust of People Maruti Udyog Ltd. is the market leader for more than a decade. Has a great dealership chain in the market. Better after sales service Low maintenance cost of vehicle WEAKNESSES Exports are not that good. Lesser diesel models in the market compare to others Global image is not that big

OPPURTUNITIES Great opportunities to go global with success of Swift and SX4 allover Introduction of more diesel models. The diesel car segment is growing Opportunity to grow bigger by entering into bigger car markets Already a market leader so great opportunity to be the king of market in every stage of industry

THREATS Foreign companies entering market; so a bigger threat from MNCs. To the market share, as many big names are coming in the industry There is hardly any diesel models Rs. 1 lakh – Rs. 1.5 lakh car Future Plan:-

Fourth assembly plant will be scaled up to produce 3,00,000 cars a year by 2010.

NEXT SUPERSTAR:Suzuki Cervo'sport a Suzuki 660cc engine - as against Nano's 623cc and wear a tag of around Rs 1.5 lakh on road.

Conclusion:Maruti Suzuki is India’s one of the leading auto mobile manufactures and also the leader of the market both in terms of volume and revenue generated. · MSL (Maruti Suzuki Limited) has segmented the market in to A, B, C, D and Eon the basis of price and length and weight. Between fiscal year 2002 and 2007 the market of automobile grew at rate of 9.5%. · In segment A price always plays a vital role MSL was the sole manufacture till 2000, Maruti 800 was the hot seller till 2005. · In segment B growth of automobile was 57.6% where Maruti captures a share of 69%. Its products like alto and Zen are two role models with these segments. · In C,D and E segment Maruti has number of competitors and has a less growth . In this segment also MSL lack of more models than other company. · Taking the sale trend in to account MSL sold a record number of vehicle 7, 14,842 in 2007-08 including 53,024 units of export. In 200708 it record a turnover of INR 145,922 million which rose to 178,603 million in 2007-08 showing a growth of 20%. · MSL has also captured 51.4% of passenger car segment while the total share of this segment is 78%. It also captures 89% of multi –purpose vehicles. And 1.6 % in sports utility vehicle segments. So in every segment Maruti Suzuki has shown its presence. · Hence Maruti Suzuki Limited has captured over all share of 46% in the Indian car market.