Maruti Rural Markets

7/27/2019 Maruti Rural Markets

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MARUTI SUZUKI INDIA LTD.

Presented by

Jainesh Gala 37

Tanay Gala 38

Tushar Gawade Uddhav Ghag 40

Nikita Ghongde

Sonia Ghulati - 42

Market Applications & Practices By Prof. Deepa Rohit


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OBJECTIVES

Understanding rural market

Automobile market at large

Rural automobile market

Maruti Suzukis contribution in rural markets

Rural markets as a profitable prospect in future

2/Market Applications & Practices By Prof. Deepa Rohit


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RURAL MARKETING

It is planning and implementation of marketing function for the ru

It is a two-way marketing process

The Indian rural market generates about 50 per cent of the countr

domestic product (GDP)



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CHALLENGES

Distribution

Understanding psychology

Limited knowledge

Communication

Cost per contact

Budgetary allocation

Urban orientation and bias

Lack of right competence and commitment at frontline level



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RURAL VS URBAN

Infrastructure availability

Income streams

Life style

Socio cultural back ground

Accessibility

Media reach and habits

Nature of competition

Consumer behaviour



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SITUATION ANALYSIS

Better standard of living & increasing aspirations

MSILs 31% share in rural

Mahindra & Mahindra increased Scorpio sales

Bajaj to offer 150cc engine motorcycle

Toyota kirloskar motors planning to sell 40% in rural



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WHY GO RURAL?

Green Revolution & Government amenities

Improved living standards

Increased purchasing power

70% of total population of India & 12% ofthe globe is rural

63% of population will continue to live in

rural in 20252/

Market Applications & Practices By Prof. Deepa Rohit


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AUTOMOBILE MARKET AT LARGE

Maruti49%

Hyundai21%

Tata6%

M & M1%

Honda7%

Toyota3%

Others13%

AUTOMOBILE MARKET



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PESTEL ANALYSIS

POLITICAL ECONOMIC SOCIAL TECHNOLOGY ENVIRONMEN

Tax policies Economic growth Income

distribution

Focus on

technological

effort

Recyclable

plastic

Employment laws Unemployment

Policy

Age distribution New inventions and

development

Easy Disposab

parts

Governmentorganization /

attitude

Inflation rates Lifestylechanges

Rate of technologytransfer

Nearby vendopark

Life cycle of product Education/

Fashion, hypes

Government

research spending

58% water

consumption

reduction2/


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Established:- 1981

Headquarters :-New Delhi, India

Key people:-

RC Bhargava (Chairman)

Kenichi Ayukawa (CEO & MD)

1982 :- License and Joint Venture Agreement signed between Maruti UdyogSuzuki of Japan

BRIEF INTRODUCTION

http://en.wikipedia.org/wiki/File:Maruti_Suzuki_Logo.svg


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2Market Applications & Practices By Prof. Deepa Rohit


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DEMOGRAPHIC SEGMENT

Income Anybody with an income of under 4 lakhp.a.

Social Class Middle class, Upper middle, LowerUpper and Upper uppers

GEOGRAPHIC SEGM

The region of interest of Maruti Suwith special focus on Type A and f

cities across Indi

BEHAVIORAL SEGMENT

Benefits Quality, Style, Price (economical)

User status Potential users and first time users

Buyer Those who are aware, informed, interestedand intend to buy

PSYCHOGRAPHIC SEG

Personality Dreamers, those whbig, ambitious, price conscious

SEGMENTATION

MARUTI SUZUKI - STPD


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TARGETING

Maruti considers any town with a population less than 10,000 as rurmarket

They have already targeted 40,000 villages till December 2013 and 60,000 more by April 2014

Pricing Strategy




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POSITIONING

The First Car

The Complete Family Car

DIFFERENTIATION

Indias first Life Utility vehicle Ertiga

- 1stLUV

- 1stMonocoque MPV (Structured Skin)

- Cross Between a hatchback and MPV

Mobile Vans2/Market Applications & Practices By Prof. Deepa Rohit


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SWOT

STRENGTHS

Market share of 39 %

Largest network of dealers & after sales service

centers

Highest number of domestic sales

(11 million domestic sales mark)

Good product lines with good fuel efficiency

True-value entity

WEAKNESSES

Government intervention

Inability to penetrate into the intern

Employee management, strikes, work

Still to prove itself in its SUV segmen

OPPORTUNITIES

R&D on electric cars

Tapping emerging markets across the world and

building a global brand

Fast growing automobile market and increased

purchasing power

THREATS

Government policies

Ever increasing fuel prices & decli

Intense competition from global a

cheaper brands

Substitute modes of public transpo

trains etc2/Market Applications & Practices By Prof. Deepa Rohit


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BRAND ELEMENTS

Brand Name - Maruti Suzuki India Limited

Brand Logo

Brand Image - The Middle class car of India

Slogan

MODELS - Hatchback: Maruti 800, Wragon R, Alto, Swift, Estilo, Ritz, A-star

Sedan: SX4 & Dzire

SUV:- Grand Vitara, Maruti Gypsy, EECO2/Market Applications & Practices By Prof. Deepa Rohit


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4Ps - PRODUCT



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Models with Price Range

Maruti 800 is the lowest price model of this company. Grand Vitara is the high price model of the company. (Discounts i

Source: www.cardekho.com/Maruti/carmodels/pricerange

Car Models (Maruti) Price Range (Rs.)

Maruti 800 2,10,027 - 2,32,610

Maruti A-Star 3,81,171 - 4,66,219

Maruti Alto 800 2,42,775 3,56,775

Maruti Alto K10 3,21,358 - 3,34,598

Maruti Eeco 3,05,675 - 4,10,893

Maruti Ertiga 5,98,970 - 8,70,970

Maruti Grand Vitara 22,68,064 - 24,60,529

Maruti Gypsy 5,51,409 - 6,01,057

Maruti Kizashi 16,52,875 - 1

Maruti Omni 2,17,655 - 2,

Maruti Ritz 4,32,237 - 6,

Maruti Swift 4,48,893 - 6,

Maruti Swift Dzire 4,92,354 - 7,

Maruti SX4 7,38,114 - 9,

Maruti Wagon R 3,57,880 - 4,4

Maruti Zen Estilo 3,45,829 - 4,

4Ps - PRICE



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Radio, television, road shows, print media, workshops and seminars

Ghar Ghar Mein Marutiand Mera Sapna Meri Maruticampaigns

3,000 local villagers nominated as resident dealer sales executives

Influencing the opinion leaders of the village (like Sarpanch)

Rural sporting events to sales fairs (Grameen Mahotsavs) to SMScampaigns for Gram Panchayat Members

Video on Wheels

4Ps - PROMOTION



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COMPETITORS

Marutis competitors in rural market are:

1) Tata Motors

2) Hyundai

3) Mahindra & Mahindra4) Hero



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TATA MOTORS

Tata motors was incorporated in 1991

The sales for Tata Motors for January2014 declined by 34

Total sales reduced to 40481 from 61660 in January as

compared to last year Passenger vehicle sales dropped to 10974 units



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PRODUCT

Tata Indica

Tata Indigo

Tata Nano

PRICE

Indica 4-6 Lacs

Indigo - 5-6 Lacs

Nano 1.5-2.25 Lacs

Trying to keep the prices of

to as low as possibleEstablished vendor parks

4Ps

PLACE

Neev took place in 5 states namely

Rajasthan, Maharastra, Madhya Pradesh,

Bihar and Andhra Pradesh

PROMOTION

Launched a Program named

Tie up with IOC, Post Office

banks

Road shows

Tie ups with local garage

The program contributed ab

sales 2/Market Applications & Practices By Prof. Deepa Rohit


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SWOT ANALYSIS

STRENGTH

Tata Motors is one of the oldestbrand

Tata Motors assures consumers about

its brand image

WEAKNESS

Focus mainly on commercialvehicles and very lesspassenger vehicles in market

OPPORTUNITY

Tata motors has a wide market in

rural areas and can cover theuntapped rural areas in passenger

vehicles segment

THREATS

There is a wide competitio

in the automobile segment



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HYUNDAI

Hyundai Motor India Limited was formed in 6 May 1996

HMIL is the first automotive company in India to achieve

of 10 lakh cars in just over a decade

HMIL currently exports cars to more than 120 countries

19% contribution of rural sales in Dec 2013

16.9% of its sales comes from rural India


PRODUCT


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4Ps

PRODUCT

PRICE

Santro - Rs 3.23- 4.34

Eon - 3.06- 4.13i10 - 3.93- 6.51

i20 - 5.14- 8.32

PLACE

272 rural sales outlets

Punjab, Andhra Pradesh And Rajhastan

PROMOTION

Ghar ghar ki pehchaan

Influences village key pe

Hyundai utsav

Tie-up with Indusind Ba

Sr.No

CarName

Sales(2013)

1 Santro 62117

2 Eon 57054

3 i10 56992

4 i20 46173


SWOT ANALYSIS


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SWOT ANALYSIS

STRENGTH

The second largest carmanufacturer

Largest car exporter in India

WEAKNESS

Unaffordable price range ofHyundai for the rural marke

Negative publicity

OPPORTUNITY

Low cost and value for money

cars

THREATS

Exchange rate

Intense competition from

Motors and Maruti


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SUGGESTED MARKETING PLAN

Objective :- To achieve the 1 lakh mark by April 2014 in rural marketing

Segmentation :-

Gender- based (offering more discounts, schemes)

Income based

Age (youth)

Positioning :-

Sentimental Positioning

Farmers Car

Differentiation :-

Low cost versions of Sedans and SUVs

Cost effective Customizations 2/


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CONCLUSION AND PLAN OF ACTION

The rural market is a relatively untapped area for automakers; Maruti Suzincrease the number of its outlets in rural India

Employing locals to become sub-dealers and sell vehicles

Tailoring Financing options to village needs for example cash EMIs and tintermediaries

Hold car melas, be it by riding piggyback on village fairs or by themselves

Rural outlets shall account for nearly 50 per cent of Marutis network comjust around 35 per cent now.



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References

http://www.livemint.com/Companies/z2zcAjzlyOe1IlqMiRfkwJ/Maruti-Suzukis-market-shain-three-years.html

http://indianautosblog.com/2012/04/maruti-rural-strategy-in-india

http://www.maruticarsindia.in/2013/03/maruti-suzuki-announced-its-strong-turnover-in-r

http://www.maruticarsindia.in/2014/01/maruti-to-expand-presence-into-one-lakh-village2014.html

http://www.maruticarsindia.in/2014/01/maruti-suzuki-hands-over-the-gujarat-factory-to-

sighting-financial-benefits.html http://www.maruticarsindia.in/2014/01/maruti-suzukis-sales-fall-in-december-2013.html

http://www.maruticarsindia.in/2013/03/maruti-suzuki-announced-its-strong-turnover-in-r

http://marutistorage.blob.core.windows.net/marutisuzukipdf/MarutiSuzukiAnnualReport2

http://www.outlookbusiness.com/printarticle.aspx?267074

http://www.mbaskool.com/business-articles/marketing/2329-indian-rural-market-the-nex



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Maruti Rural Markets

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