Category: Entertainment

Presentation Description

No description available.


Presentation Transcript

Marketing stratergy :

Marketing stratergy 0 Maruti Suzuki India Limited

Group member:

Group member Sachin Patil Hemant Patil Pavan Borhade Abhijeet Patil Rahul Patil Chhaya Gupta 1

Statistics of Automobile Industry:

Statistics of Automobile Industry India is presently ranked 17th amongst auto car manufacturing countries in the world. India is poised to become third largest auto car manufacturing hub in the world by 2020. The small car market counts for about 73 percent of the overall car market within India, which is densely populated with motor vehicles. And this outstanding growth in the small car segment has compelled the major players like Nissan, Renault, Toyota, Volkswagen (VW), etc to sit up and take notice.

Leader of Indian Passenger Cars:

Leader of Indian Passenger Cars Maruti Udyog Limited Tata Motors Hyundai Honda Fiat Ford Toyota Mahindra & Mahindra

The market shares segments of the automobile industry:

The market shares segments of the automobile industry


Introduction MARUTI UDYOG LTD (MUL) established in feb 1981 through act of parliament. Objective is to meet growing demand of personal mode of transport. Today , it is largest automobile company in India .


Contd ……. Maruti Suzuki India Limited a subsidiary of Suzuki Motor Corporation of Japan accounting for over 45% of the domestic car market 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan, 25% IPO In 1983 come up with maruti-800 which is only modern car available in India

Statistics of Maruti Suzuki:

Statistics of Maruti Suzuki Currently, Maruti Suzuki is the market leader with 47% percent market share. It has the eight other small car in its portfolio M800, Omni, Wagon-R, Zen, A-Star, Alto, RITz and Swift hatchback. With such a strong portfolio the company was able to sell nearly 8 lakh cars in the last fiscal year. It recorded a growth of 3.6 percent. The new Ritz and k 10 is expected to further increase its lead in the market.

Car models available::

Car models available: 8 Model Year of launched Price(lakhs) 800 1983 2.30 Omni 1984 2.70 Gypsy 1985 5.15 Alto 2000 2.70 Wagon R 2002 3.70 Swift Versa 2005 2006 4.50 4.10 SX 4 2007 7.00 Estilo 2007 4.05 Swift DZire 2008 6.35 A star 2008 3.60 Rit z 2009 4.45 Eeco 2010 4.70 New wagon R 2010 4.20 Alto k10 2010 3.70

Marketing Mix:

Marketing Mix PRODUCT Portfolio of 13 products divided in to 5 product line A1 A2 A3 SUV C-Class PRICE Pricing objective: market share and cost leadership. Pricing method: markup pricing (cost+pricing) Pricing strategy: Economical pricing PLACE 600 new car sales outlet covering 393 cities 265 Maruti true value outlets spread across 166 cities 2628 Maruti authorized service stations PROMOTION Advertising strategy - Ghar aa Gaya Hindustan - India Comes Home in Maruti Suzuki - Kinta deti hai - TV show - India Got Talent

Product portfolio:

Product portfolio A 1 A consumer who wants car. A car which gives Durability in low cost. 10

Slide 11:

A 2 A consumer who wants Small & spacious car. A spacious small car without extra cost. 11

Slide 12:

12 A 3 A consumer who wants more comfort car A car design with style and luxury.

Slide 13:

SUV Lifestyle Oriented consumers. Rigidness, Luxury and Comfort . A Vehicle that provides the luxury and Comfort 13

Slide 14:

14 C-Class A consumer who wants car for commercial use More spacious car. A big car with reasonable price

STP Analysis:

STP Analysis 15 15- 30 lakhs 5- 10 lakhs 3- 5 lakhs < 3 lakhs


PLC 1)Introduction Stage Market share and growth is slight . R&D cost have been incurred. Marketing cost is high in order to test market.

Slide 17:

2) Growth Stage Characterized by Rapid growth in sales & profit Profit arise due to increase in output Significant promotional resources are traditionally invested in products that are firmly in the growth stage. 17

Slide 18:

3) Maturity stage Competition is most intense as companies fight to maintain their market share. Any significant moves are likely to be copied by competitors. The maturity stage is the time when most profit is earned by the market as whole. 18

Slide 19:

4) Decline stage Market is shrinking, reducing profit. Possible to take out some production cost, to transfer production to cheaper facility, sell the product in other cheaper market. Depending upon whether the product remain profitable, a company may decide to end the product. 19

BCG Matrix:

BCG Matrix BCG matrix has two dimensions market share and market growth .the basic idea behind it is: if a product has biggest market share, or if the products market grows faster. It is better of the company. . The four segment of BCG matrix: - STAR, high growth and high market share. CASH COW, low growth and high market share DOG, low growth and low market share QUESTION MARK high growth and low market share. 20

Slide 21:

STAR : The Company has long run opportunity for growth and profitability. They have high relative market share and high Growth rate. Swift, Swift Dzire and A star is the fast growing and has potential to gain substantial profit in the market. QUESTION MARK: New products with potential for success but there cash needs are high and cash generation is low. In auto industry of MARUTI SX4, GRAND VITARA, ASTAR there has been improve the organization reputation As they want successful not only in Indian market but as well as in global market. 21

Slide 22:

CASH COW : It has high relative market share but compete in low growth rate as they generate cash in excess of their needs. MARUTI 800, ALTO AND WAGNOR have fallen to ladder 3 & 4 due to introduction of ZEN ESTALIO and A STAR. DOG: The dogs have no market share and do not have potential to bring in much cash. BALENO, OMINI, VERSA There business have liquidated and trim down thus the strategies adopted are that are harvest, divest and drop. 22

GE Matrix:

R GE Matrix

SWOT Analysis:

SWOT Analysis Opportunities Weakness Strength Threat

Slide 26:

PEST Analysis

Slide 27:

Political Factors Maruti ltd Acquired by Indian govt. Govt. provides various concession for maruti 800 Economic Factors Suzuki holding rose to 54.2% Early 2003 maruti made ipo Entry of new player

Slide 28:

Social Factors 6.8 mn population annul income is >12 lakh changing life style in urban india Technological Factors Transfer of technology from suzuki japan to india Development of new models in india rather than import from outside Rapid change in enviromental std. eg Bharat 1 ,2 ,3

Generic Strategies:

Generic Strategies Overall cost leadership - low-cost-position relative to a firm’s peers - manage relationship 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 attend advantages either through differentiation or cost leadership. 29

Competitor: Hyundai Motors :

Competitor: Hyundai Motors The country’s second largest car manufacturer and the largest passenger car exporter. The domestic sales grew by a marginal 3.5% the exports grew by 19.6%. The cumulative sales however grew by 10.9%. The segment-wise cumulative sales in the month of April, 2009 are as follows : A 1 segment ( Santro ) A2 Segment (i10& Getz) 41,258 units. A3 Segment (i20, Accent & Verna) 3,073 units. A5 Segment (Sonata Transform) 34 units. SUV Segment (Tucson): 6 units

A 1:

A 1 Santro (2.79 lakhs ) A2 i10 (3.83 lakhs ) Get z (4.25 lakhs ) 31

A 3:

A 3 i20 (5.65 lakhs ) Accent (5.15 lakhs ) VERNA (6.68 lakhs ) 32

A 5:

A 5 Sonata ( 15.25 lakhs ) SUV tuscon ( 16.0 lakhs ) 33


Contd …… 34 Positioning of Hyundai Santro - Family Car to Smart Car for young People - Complete Family Car to Sunshine car. Hyundai’s Pricing Strategy -Markdown of Prices on Santro Xing - Non AC Santro at 2.79 Lakhs

Contribution to exports by major Indian players in passenger car segment :

Contribution to exports by major I ndian players in passenger car segment

Porter 5 Force Analysis:

Porter 5 Force Analysis 1. Threat of new Entrants In most markets, the capital and expertise needed to setup an auto or parts manufacturing facility, would be a great enough barrier to entry to prevent many new entrants from setting up. However, given India's incredible growth forecasts, infrastructure progress (especially new and better roads), and ever-expanding financing options to rural residents, the market is attractive. As such, we expect the threat of new entrants to be high. Result: Unfavorable 2 . The bargaining power of buyers/customers Buyers in India have a wide variety of choice. There are more than 20 foreign manufacturers selling in India (including ultra high-end such as Rolls-Royce and Lamborghini). Of course there are also a plethora of incredibly cheap choices, like the famous Tata Nano . Result: Unfavorable

Porter Analysis Continued…:

Porter Analysis Continued… 3. The threat of substitute products India is famous for its two-wheelers (bikes and mopeds) and three-wheelers. These are very real and obvious threats to auto manufacturers . Train , Airlines etc Result: Unfavorable 4. The bargaining power suppliers have It is likely that the suppliers to the manufacturers have considerable bargaining power. They are not held ransom by one single manufacturer as they can market their products to any of the others in India. Result: Unfavorable 5. The rivalry among competitors High. The industry is not yet in its shake-out phase and is still struggling to find the up-and-coming stars and possibly topple the leaders. Result: Unfavorable

Future Of Car Industry In India:

Future Of Car Industry In India Pre-liberalization India-- Maruti Suzuki 800 hatchback car in 1983 a joint venture between Government of India and Suzuki Motors of Japan Post liberalization--Many foreign manufacturers have setup base in India. 4 th largest commercial vehicle market in the world. 11 th largest passenger car market globally, expected to be the 7 th largest by 2016. Reason for Growth--Easy availability of vehicle finance, attractive rates of interest, and convenient installments. Depending upon customers needs, 4 segments - small, midsize, premium and sports utility vehicles currently represent the car market in the country.

Slide 39:

Thank You 39

authorStream Live Help