Sub – Marketing Strategy.Submitted to – Prof. Vikram Parekh.Date – 21/ 09/ 2009

• Mohd. Asad Khan.• Bhaskar Shukla.• Tushar Kamble.• Kanchan Sahare.• Sachin Surve.

VISION

1984 :- Fuel efficient Vehicle with latest technology.

1987 :- Leader in Domestic Market and Be among Global Players in Overseas Market.

1997 – Till Date :- The leader in Automobile industry,

Creating Customers delight and

Shareholders wealth, ‘a pride of

India’.

ABOUT MARUTI SUZUKI

Subsidiary of Suzuki Motor Corporation of Japan

India's largest passenger car company 25 Years of trust

Over 7720 employees in 4 plants

INDIAN AUTOMOBILE INDUSTRY (2007-08)

CURRENT STRATEGIES BY MARUTI

Pricing strategy - catering to all segments

Offering one stop shop to customers

Repositioning of Maruti products

Customer Centric Approach

Committed to motorizing India

Realisation of importance of vehicle maintenance services market

Playing on cost leadership

COMPETITOR ANALYSIS

HYUNDAI1. Positioning of Hyundai Santro

- Family Car to Smart Car for young People

- Complete Family Car to Sunshine car.

2. Hyundai’s Pricing Strategy

- Markdown of Prices on Santro Xing

- Non AC Santro at 2.79 Lacs

TATA MOTORS

1. Positioning Of Tata Indica

- Indica is positioned as ‘more car per car’

2. Tata’s Pricing Strategy

- Indica is priced between Rs 2.56 Lacs to 3.88 Lacs

CURRENT THREATS

Perception Change

Growing Competition In Compact Cars

Few Maruti models may face extinction

RULE OF 3

Maruti Suzuki is Specialist. As it plays only in Passenger and Commercial cars and related Subsidiaries.

Maruti Insurance (2002) Maruti Finance (2002, 166 cities) Authorized Service Stations. Maruti True Value Maruti Driving Schools (Delhi and Panjab)

COMPETITIVE POSITIONS COMPETITIVE POSITIONS

Market leader (54%. 2008-09)

Expanding the total market.Defending the market share.Expanding market share.

PORTER’S FIVE FORCES

BASIS OF SEGMENTATION

Geographic

Region, City or MetroSize, Density, Climate

Demographic

Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...

Lifestyle or Personality

Psychographic

TARGETING :- SELECTIVE SPECIALIZATION

Market

ProductUrban Semi –

Urban Rural

A1 Yes Yes

A2 Yes Yes Yes

A3 Yes Yes

SUV Yes

C- Class Yes Yes Yes

TARGETING :- ON THE BASIS OF INCOME GROUP Income Group

Product RS. 2- 3 lacs. /annum

RS. 3-5 lacs. /annum

RS. 5 - > 5 lacs. /annum

A1 Yes

A2 Yes Yes

A3 Yes

SUV Yes

C- Class Yes Yes Yes

POSITIONING

Product Target Customers

Benefits Value Proposition

A1 A consumer who wants car.

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

BCG MATRIX

Relative market share = Business unit sales this year

Leading rival's sales this year

Market growth rate = Individual sales - Individual sales

current year pervious year Individual sales pervious year

GENERIC STRATEGIES

• Overall cost leadership• Low-cost-position relative to a firm’s peers• Manage relationships 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• Attain advantages either through differentiation or cost

leadership

GENERIC STRATEGIES

Cost Leadership Differentiation

DifferentiationLower Cost

Differentiation Focus

Cost FocusParticular Segment

Industry wide Scope

Competitive Advantage

AN OFF'S MATRIX

Market Penetration• Distribution •Expansion of manufacturing

facilities

Market Development•Exports

Diversification

Product Development•New product –

Splash

Existing Product New Product

Existing Market

New Market

4PS

Product Price Place Promotion

EXISTING PRODUCT STRATEGY

Portfolio of 12 products Five product lines

Core Product, Formal Product, Augmented Product & Future Product

Product Line Products

A1 800

A2 Alto, Zen ,Wagon –R, Swift, A-star

A3 D ZiRE, Sx4

SUV Vitara, Gypsy

C - Class Omani, Versa

Core Product

Attributes Styling

Colour

BrandName

PackagingQuality

InstructionsManual

After salesservices

Deliverypoints & systems

Installation(for bulkyproducts)

Customer

education

and Training

Customercomplaint management

Payment options (for high priced prod- cts)

Replacement orreturnspolicy

Guarantees &warranties

Core Product

FormalProduct

Augmented Product

Future Product

PRODUCT STRATEGY

SUGGESTED PRODUCT STRATEGY

More fuel efficient cars. AlterNet fuel cars. Eco friendly cars. More focus on A1, A2 & A3.

MORE FOCUS ON A1, A2 & A3.

EXISTING PRICE STRATEGY

Pricing Objective :- Market share & Cost Leadership

Pricing Method :- Markup Pricing (cost plus pricing )

Pricing strategy :- Economical Pricing

SUGGESTED PRICE STRATEGY

Continue Economic pricing strategy as it will help to achieve goal of become cost leader.

Expansion of manufacturing facility to achieve economies of scale.

EXISTING 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.

EXISTING PROMOTION STRATEGY

o AdvertisingoTV AdsoPrint Ads oRadio Ads

o Advertising Strategy Persuasion Advertising

“Ghar Aa Gaya Hindustan” “India Comes Home in Maruti Suzuki.”

Information Advertising

CONT………….

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.

SUGGESTED PROMOTION STRATEGY

Continue with existing Advertising strategy.

Look for Alternative Advertising Options. BTL