Sushil Mma Final

5/11/2009 GROUP ASSIEGNMENT | SUSHIL KUMAR AND NAIMISH JOSHI

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CONTENT THE CHALLENGE AND GOALS……………………………….... SITUATION ANALYSIS COMPANY ANALYSIS…………………………………………….. GOALS……………………………………………………………….. FOCUS……………………………………………………………….. MARKET SHARE……………………………………………………

03 03 06 07

COMPETITOR ANALYSIS…………………………………………... MARKET POSITION………………………………………………..... STRENGTHS………………………………………………………….. WEAKNESSES………………………………………………………….

08 08 09 09

CLIMATE KEY TRENDS……………………………………………… POLITICAL, ECONOMIC AND LEGAL ENVIRONMENT…………….

10

TECHNOLOGICAL ENVIRONMENT…………………………………..

10

SWOT ANALYSIS………………………………………………………..

11

MARKET SEGMENTATION……………………………………………….

13

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CHALLENGES AND GOALS According to MARUTI vision statement, its goals include maintaining leadership in the Indian automobile industry, creating customers delight, increasing shareholder wealth and being a pride of India. The company has ranked highest in the India sales satisfaction study. These challenges pointed directly to a produce lifecycle management solution with capabilities for information management, process management, knowledge capture and support for global collaboration: a palm solution directly addressing MARUTI’s business challenges. For example, information management capabilities address the issue of the many platforms, local variants and export destination. Process management permits concurrent development and faster change management and provides a platform for the process improvements- for faster vehicle development. Knowledge capture increases innovation and also reduces costs by increasing part re-use. Palm collaboration capabilities permit global development by ensuring fast and accurate dissemination of product information.

SITUATION ANALYSIS Company analysis

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Marti 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. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in MARUTI Udyog. MARUTI Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Marti 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, Marti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Marti 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. Marti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a SUSHIL KUMAR

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million units of this car have been sold worldwide so far. Currently, Marti Alto tops the sales charts. Marti 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 200708, Marti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Marti cars are on Indian roads since the first car was rolled out on December 14, 1983.

SALES FIGURE -2009 April 2009

2008

% change

2345 7724

4458 7705

-47% 0%

march'09 49383 77948

A2

46817

43121

9%

511396

swift, a-star A3 Sx4, dzire Total passenger cars Muv Gypsy, vitara Domestic Export Total sales

7066 63952 905 64857 6891 71748

4187 59471 68 59539 2797 62336

69% 8% 1231% 9% 146% 15%

75928 714655 7489 722144 70023 792167

Segment A1 C

Models M800 Omni, versa Alto, wagon-r, zen,

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April'08 -

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For the full year ended march 2009, MARUTI recorded revenues in line with our expectations of rs. 24244.9 cars as against rs. 22569.4 cars in fy2008, a rise of 7.4%. The operating profit stood at rs. 2469.0 cars as against rs. 3212.5 cars in fy2008, a decline of 23.1%. The net profit for the year was rs. 1224.3 cars as against rs. 1799.5 cars in fy2008, a decline of 32%. The net profit was down basically due to the losses incurred due to the foreign currency fluctuations in q1 and q2 fy09 which have a lagging effect and is visible in the q4fy09 results. The hedge reserve of the company stands at a negative rs. 170 cars as on 31st march, 2009

PRUDUCT ANALYSIS The swift super-compact is designed to be a very affordable motor car. The swift model looks sharp, well-built and robust. The cockpit is simple, highlighted by a sporty threespoke steering wheel framing attractive silver-ringed instrumentation. The styling of the swift is distinctively European and closely mimics the styling cues of the concept s and s2 show cars: it looks bang up-to-date with a wide air dam, flared wheel arches, rear roof spoiler and smart contouring around the shoulders. The centre stack has a satin finish with very legible and logically laid-out controls. Suzuki is serious about winning new buyers to the brand with good equipment levels and attention to the little things. The level of equipment makes the swift far from a poverty pack and the quality of materials SUSHIL KUMAR

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and assembly looks and feels very good. The engine is a gem which is a carryover unit from the esteem. A slick five-speed manual transmission is one of the lightest in recent memory and the light clutch and short gate make gear-changing a pleasure. It's the ride that really impresses though as it is quiet and well controlled without compromising road holding or handling. The swift has a very predictable chassis with not too much under steer. There isn't too much body roll and it seems unaffected by crosswinds. Overall the swift is an impressive vehicle with excellent economy, more than a hint of sportiness, stand out styling and lots of thoughtful touches. It shows that Suzuki has really sweated the detail on this car and come up with a truly competitive and value product that is well worth considering.

GOALS • No. 1 in Initial Quality Study • Total Customer Satisfaction • Best Value for Money Car • Best Design and Styling •

Viewer's Choice.

•

Number one premium compact car in.

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FOCUS • Major milestone ahead. • Manisar plant on schedule. • Diesel car on the way • South India sales have outperformed.

MARKET SHARE • •

Currently Suzuki holds 54.2% stake of Marti, the balance being held by various QIBs, PCBs and Public. On BSE, Marti has the highest market capitalization in the auto sector.

• We are the largest car company in the country. So far, we have produced more than 6.6 million cars. • We are Suzuki's largest manufacturing facility, outside Japan offering 11 models in over 150 variants. • The turnover last year was USD 3.37 Bn employing more than 6700 employees. • The high localization of parts within India is one of our distinct strengths. • Where the company has 3 plants in Gurgaon facility, 4th plant was added with the capacity of 1 • Hundred thousand at Manesar in 2006-07.

COMPETITOR ANALYSIS “i20” is a car of the era, compact yet spacious, technologically advanced yet environment friendly from the pioneer of small car manufacturers MARUTI Suzuki, christened as SUSHIL KUMAR

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MARUTI Swift. But then as MARUTI was making inroads into the mindset of compactcar category, Hyundai made no mistake to capitalize on MARUTI’s success with launch of Hyundai i10 and now with more advanced and spacious Hyundai i20. If spacious is synonymous with MARUTI Swift, Hyundai i20 promises value for money with no compromise on comfort and space. MARKET POSITION Available in five variants and six shades of metallic hue, price of MARUTI Swift ranges from Rs 4 lacs to Rs 5.6 lacs. While Hyundai i20, launched in eight vibrant shades is priced at Rs 4.79 lacs for Magna version, Rs.5.59 lacs for the Asta and Rs.5.82 lacs for Asta (O), New Delhi, ex-showroom.

STRENGTHS Hyundai i20 comes with an extended wheelbase measuring 2525mm. This aspect gives greater stability to Hyundai i20 as compared to MARUTI Swift with wheelbase of 2390mm. The size does matters and rightly so Hyundai i20 stands with 3940 mm in length and 1710 in width. Hyundai i20 a bit shorter to Swift but in its look Hyundai i20 reflects sturdier appeal. Hyundai i20 with differential gear ratio clocks 0-60km in 12.9 seconds. Hyundai i20 is good for the Indian roads. The 5-year warranty puts the Hyundai head and shoulders above most of the competition. SUSHIL KUMAR

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WEAKNESSES There are strings attached with every new invention and improvement on products. These strings are Tata Motors weaknesses and what other groups perceive as their weaknesses. One weakness that Tata Motors faces is its inability to meet safety standards.

Tata Motors only have been making passenger cars for the approximately

last ten years. This can be viewed as a weakness from a customer standpoint since a decade does not seem like a lot to consumers and therefore they will think that Tata Motors is inexperienced car manufacturing. Another weakness that Tata Motors faces is within its domestic market. Car sales in India are less than 1 million annually. MARKET SHARES (USING CURRENT DATA NOT CASE DATA)

POLITICAL, ECONOMIC AND LEGAL ENVIRONMENT • A high economic growth (over 7.6% GDP growth running since last five years) •

Favorable taxation & duty structure (along with excise duty seeing a downward trend, import duties on components has also been reduced recently)

• More number of and newer models available • Developing road infrastructure SUSHIL KUMAR

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• Widening reach of finance companies •

Underlying changes happening in the demographic profile of the country as represented by a rising middle class; favorably skewed age profile and the huge two-wheeler population presents good opportunities.

TECHNOLOGICAL ENVIRONMENT • Chiseled shoulder line to complement muscular flared wheel arches and skills •

Bumper integrated centre fog lamps under an international styled rear boot lid.

•

Rich chrome styling for an imposing grille and an impressive rear.

•

Classy vertically oriented headlamps and integrated fog lamps.

•

Chic wraparound tail lamps.

• Fully integrated stereo. • Steering mounted audio control. • Automatic Clemet control SUSHIL KUMAR

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• Multifunctional functional display.

SWOT ANALYSIS This swat analysis company profile is the essential source for top level data and information. The report examines the company's key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy.

STRENGTHS • The quality advantage • Fewer problems • No. One in the premium compact car segment • A buying experience like no other •

MARUTI Suzuki has a sales network of 307 state of the art showrooms across 189 cities.

•

High sales and customers care standards.

• Quality service across 1036 cities

WEAKNEASS SUSHIL KUMAR

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• Commodity price risks •

Mul’s commodity price risks relates to higher costs due to changes in prices of inputs.

• Exchange rate risks

OPPURTUNITIES • Leading growth

THREEATS • Risk factors • Business risks

COMPETITORS • Hyundai Santro • Hyundai i20 • Tata indica • Hyundai getz

MARKET SEGMENTATION DEMOGRAPHIC • Age group SUSHIL KUMAR

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•

Gender

: male, female

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Family

: 3-4, 4+

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Income

: Rs 20000-30000, 30000-50000, 50000 and above

•

Occupation

: professional, officials, supervisors, home makers, youngsters

PSYCHOGRAPHIC •

Social class

: middle class, working class, upper lowers

•

Lifestyle

: strives, achievers.

BEHAVIORAL •

Benefits

: quality, service, economy, speed

•

Readiness stage

: interested, intending to buy

Maruti swift has an international technology and it comes under small car segment. That’s why Indian consumers putting their nearest on maruti swift. The price of swift is affordable for upper middle class family. Also it has rich look and it’s also targeting to rich people.

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