Maruti Suzuki- wagonR

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    METHODOLOGY FOLLOWED

    LITERATURE REVIEW

    HYPOTHESIS DEVELOPED

    DATA COLLECTION AND ANALYSES

    CONCLUSION AND IMPLICATIONS

    FUTURE RESEARCH

    ROUTE FOLLOWED

    MARUTI

    SWIFT

    AUTOMOBILE SECTOR IN INDIA

    MARUTI IN INDIA

    MARUTI WAGONR

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    0

    200000400000600000800000

    100000012000001400000

    160000018000002000000

    2004-05

    2006-07

    2008-09

    2010-11

    Domestic Sales Trends

    PassengerVehicles

    India manufactures over 12 million 2 an

    wheeled vehicles and exports about 1.6 m

    every year

    LITERATURE REVIEW : AUTOMOBILESECTOR IN INDIA

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    LITERATURE REVIEW : AUTOMOBILESECTOR IN INDIA

    Second fastest growing automobile market in the world

    Immense demand for vehicles and a strong growth of the Indian automobile industry

    expected due to:

    Indias growing per capita income/ higher GDP growth

    Increasing road development

    Easy availability of finance at relatively low rate of interest

    Graduating from two wheelers to four wheelers

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    $2.5 billion car giant

    Set up initially as a joint venture between Japans Suzuki

    Motor Corporation and the Government of India

    In 2003, the Government of India divested 27.5% stake

    through Initial Public Offering

    Now a subsidiary ofSuzuki 54.2% stake with Suzuki, and

    18.5% stake with the government of India

    R&D hub for Suzuki in Asia

    Achieved near monopoly for over a decadeIts product Maruti 800 triggered an auto revolution in the

    country

    Known across the nation for its after sales services, service

    satisfaction, and value for money

    CONTD

    MARUTI

    SWIFT

    MARUTI IN INDIA

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    SWOT ANALYSISStrengths

    Established distribution and after-sales networks

    Understanding of the Indian market and ability to liaison wigovernment

    Ability to design products with differentiating features

    Brand Image

    Experience and Know-how in technology

    Weaknesses

    Lack of experience with the foreign market

    Inexperience with foreign workforce

    Heavy Import tariffs

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    Opportunities

    Increased purchasing power of Indian middleclass category

    Govt. subsidies

    Tax benefits

    Foreign collaboration

    Threats

    Emerging competition

    Increasing cost of inputs

    Rapid change in customer preference

    Possible labour unrest

    SWOT ANALYSIS

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    PEST ANALYSISPolitical

    Maruti ltd. Acquired by Indian Govt.

    Govt. provided various concessions for Maruti 800

    In May 2002, cabinet committee of disinvestment approved the exit of

    joint venture

    Pro labour/ pro investor government

    Economical

    High GDP growth

    Rising Disposable Income

    Early 2003 Maruti made an IPO

    Entry of new players in the Indian market

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    Social

    6.8 million population has annual income > 12 lakh

    Changing consumer preference

    Changing life style in urban India

    Technological

    Transfer of technologies from Suzuki Japan to India

    Development of new models in India rather than import from

    Automation of manufacturing assembly

    Rapid change in environmental standard e.g. Bharat I,II,III

    PEST ANALYSIS

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    PORTERS FIVE FORCES MODELThreat of new Entrants : Increasing

    Most of the global players are attracted toward Indian marke

    Welcoming government policies

    Power of supplier : low

    Large no. of automobile component suppliers

    Bulk buyer can bargain high

    Economies of scale

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    Power of buyer : Increasing

    Increasing awareness among the consumer

    High expectation

    Threat of substitute : Low to medium

    Consumer could shift to hybrid and electric cars

    Industry Rivalry : High

    New player are entering in market

    Competition in selected segments are very high e.g. small and

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    PORTERS GENERIC STRATEGY

    Differentiation

    Performance

    Mileage

    Best match with Indian road conditions

    Less Maintenance cost

    Resale price

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    MARUT

    ISWIFT

    Indian car

    Inspired by avant-garde European design in an innovative

    box shapeBuilt to typical Indian precision and attention to detail

    Adapted and tested to the unique Indian road conditions andcustomer requirements

    An example of the growing recognition of Indian intellectual

    and engineering capability as 25 Indian engineers from Marutihave worked with their Japanese counterparts in Suzuki for two

    years to design this vehicle

    MARUTIWAGON R

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    MARUTISWIFT

    HYPOTHESIS DEVELOPED

    Maruti Wagon Rs saleability arises from the valuesof its features and not from its own brand.

    Values of the umbrella brand responsible for the

    success of Maruti Wagon R are after comfortablesitting space, mileage, ease of availability of the spare

    parts, and value for money.

    Maruti Wagon R is one product from the MarutiEmpire that has achieved success and popularityamong the middle class Indian families and youth

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    METHODOLOGY FOLLOWED

    To test the hypotheses

    Primary source of data: a questionnaire containing a set oquestions centred on:

    Purchasing decisions of consumers

    Desirable features

    Competition

    Target audience of the research: urban middle class and yoforms the bulk of Wagon customers

    Secondary source of data:

    Data available on internet and in literature

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    DATA COLLECTION AND ANALYSIS

    1. Which car do you own?

    Maruti Hyundai Honda Mahindra Other

    2. Would you like to go for Maruti WagonR as your new car, if you dont already ow

    3. How would you rate Maruti WagonR in the following areas:

    After sales service Mileage

    Maintenance Performance

    Driving

    4. Do you find it easy to get the spare parts of Maruti wagonR?

    5.How do you Maruti WagonR based on the following parameters:

    AC cooling Ride on a bumpy road

    Noise of the car Comfort

    Gear shift Steering

    Cost of purchase

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    DATA COLLECTION AND ANALYSIS

    6.Which car type do you prefer?

    Diesel Petrol Electric Other

    7. Which car would you buy from the following:

    Hyundai Santro Hyundai i-10 Chevrolet Beat

    8. Why would you buy the above mentioned car:

    Brand value/ status attached

    Utility & comfort

    Value for money

    Ease in maintaining & getting services

    Cheaper maintenance & service (spare parts)

    9. Would you buy Maruti WagonR even if its after sales service provider is not Mar

    10. How do you rate services provided by Maruti?

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    MARUTISWIFT

    ANALYSIS

    0

    20

    40

    60

    80

    Yes

    No

    May be

    020406080

    100120

    How would yourateMaruti

    WagonRin thefollowing areas

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    MARUTISWIFT

    ANALYSIS

    020406080

    100120

    Excellent

    Very Good

    GoodSatisfactory

    Poor

    0

    5

    10

    15

    20

    25

    30

    35

    Fuel Variant

    How do youMaruti Wagon

    based on thefollowingparameters

    Whichcar typedo youprefer?

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    CONCLUSION

    A success story for: WagonR

    Easy availability of spare parts

    High quality after sales service

    Excellent mileage & performance

    Smooth drive even on a bumpy road

    Low cost of purchase

    Successful AC cooling

    Negligible noise of car

    Smooth gear shift and power steering

    CNG or petrol variant preferred to others

    EasyAvailabili

    of spareparts

    Low

    maintenae

    Valuefor

    money

    MARUTISWIFT

    Biggest competitor - H

    Major reasons for drifting

    design

    brand value

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    IMPLICATIONS

    Maruti WagonR - Peoples car

    Bottle neck competition between Hyundai and Maruti -necessary to take measures to overcome the area of downfall

    Factors to be improved:

    Design

    Style Brand status

    Utility

    Luxury at usual prices

    No car in the premium segment cars available only inthe compact to midsize segment

    Further product enhancements

    less pollution producing

    power-driving engines

    more seating space

    Brand image enhancements through powerful brand

    endorsements and advertisements

    MARUTISWIFT

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    FUTURE RESEARCH

    Maruti Suzuki should do proper quality check

    before launching new model e.g. recall of A-star

    Maruti Suzuki has to need launch new model in

    MUV and SUV segment

    Company has to have tight cost control for

    competing TATA and Hyundai in A car segment

    MARUTI SWIFT

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    T

    HANKY

    OU

    !!

    MARUTI SWIFT