PRODUCT LIFE CYCLE

Product Life-Cycle Stages

1. Introduction

2. Growth

3. Maturity

4. Decline

PLC - INTRODUCTION

INTRODUCTION STAGE - Company builds product awareness and develop market for the product

Pricing consider for capture market share or to recover development cost

GROWTH STAGE – Company build brand preference and increase market share

Promotions for the large audience. Distributions channels are added

MATURITY STAGE – Competition starts. Products come up with new features or face

DECLINE STAGE - Sales decline. Firms either reduce cost to continue or quite from the market

Maruti Udyog Limited was established in 1981

Largest automobile company in India located at Gurgaon, Manesar and South of New Delhi.

Portfolio of 13 brands and 150 variants, like Maruti 800, Omni, Alto, Wagon-R, A-star, Swift, Ritz, Grand Vitara, SX4 and Swift Dzire

Listed on Bombay Stock Exchange and National Stock Exchange

Honoured with METI Award from from Govt. of Japan for promotion of Japanese brand in India

MUL launched 1st 800 in the Indian market in December 1983

Collaboration Between Indian State owned Maruti and Suzuki Motor Japan

Cheapest car in the Indian market

Excellent entry level

Also exported to countries in South Asia and South American market

First car was presented to Lord Venkateshwara of Tirumala Venkateshwara Temple.

First car sold to Harpal Singh at Rs. 48,000/- as a lucky owner and received keys from Prime Minister Indira Gandhi

Manage to retain its low pricing in market

Maruti 800 come up with new features like AC version and music system

Sales increased by 852 units to 20,269 units and reached upto 31,314

First export began in 1987

Sales soared from about 63,763 units to about 1,89,061 units in 1996

Focus on customer care has become a key element for Maruti

Increased Maruti service stations every 25km on a highway

To increased market share, launched new car models, concentraded on marketing and institutional sales.

Become a ideal car for woman drivers as first car was easy to drive and park in the Indian sub-continent

In 1997, introduced with new jelly bean shape was not so successful

Launched revamped version of Maruti 800 EX, with new engine, shock absorber, coil spring suspension, which was lost their sales value gradually

Entry of competitors like General Motors, Ford, Tata

Market share beaten by rivals like Hyundai Santro, Daewoo Matiz

In 2002, launched Alto with bigger stylish version of the Maruti 800

Introduced LPG and CNG variabts, called Maruti 800 Duo with new facelifts like newer grille and clear lens headlamps

PRICING STRATEGY – CATERING TO ALL SEGMENTTS

Car priced at Rs. 1,87,000/- is the lowest offer on the road

OFFERING ONE STOP SHOP TO CUSTOMERS OR CREATING DIFFERENT REVENUE STREAMS

Developed different revenue stream in the form of Maruti Insurance, Maruti Finance, MDS, N2N

REPOSITIONING OF MARUTI PRODUCTS Introduced new facelifts model based on market

responses or consumer feedbacks or the competitors moves

CUSTOMER CENTRIC APPROACH Successfully shed off the public – sector laid back

attitude image and the customer – friendly approach in the organization

Dealers and employees are answerable to each and

every customer complaint

Call center brings Maruti to closer to its customer

COMMITED TO MOTORIZING INDIA Partnership with State Bank Of India organized finance to

small towns enable people to buy cars in Rs. 2599/- scheme

Sales of Maruti went down drastically from 1,51,976 units in the year 2000 to about 69,553 in 2007

Buyers attracted by high end luxuries small cars

Sales volume is heavily beaten by competitors like Hyundai i10, Maruti Suzuki swift, Chevrolet Spark

In 2008-09 experienced sales of only 11,288 units

Major competitor Tata Motors launch Tata Nano smaller car yet offer more space than the Maruti 800

Tata Nano has come up to cater middle class and lower middle class

Maruti has decided not to infuse new technology or an engine into Maruti 800 from April 2010

They will pull out the Maruti 800 from the Indian Metros which will effect the emission norms

Sell will countinue in semi urban and rural areas till the new emission norms reach these places

MARUTI 800 V/S TATA NANO

PRICE :- Maruti 800 – Rs. 2L on road Tata Nano - Rs. 1.25 – 1.5 on road

LOOK – Maruti 800 has old look, Longer exeterior dimensions than Nano while Nano has 20% extra space than

800 and easy to drive in congested traffic area

AVERAGE - Maruti 800 gives 15 – 18 km/lit Nano gives 22km/lit

SAFETY - As fully tested car still fan of maruti believes in it.