PRESENTATION ON

PRODUCT LIFE CYCLE OF MARUTI 800

SUBMITTED TO

Mrs. SHILPA ARAKERI

(LECTURER, SDMCET,DHARWAD)

SUBMITTED BY

RAHUL V GULAGANJI ( 2SD15MBA32)

SAGAR SINGH RAJPUT (2SD15MBA39)

PRODUCT LIFE CYCLE

According to Philip Kotler The idea that products, like people, have a birth, a life and a death, and that they should be financed

and marketed with this in mind.

Even as a new product is being launched, its manufacturer should be preparing for the day when it has to be killed off. Its sales

and profits start at a low level, rise (it is hoped) to a high level and then decline again to a low level.

PRODUCT LIFE CYCLE STAGES

PRODUCT DEVELOPMENT:

It is the stage where a company finds and develop a new product idea. Sales are zero at this stage.

1) INTRODUCTION STAGE:

Company builds product awareness and develop market for the product and launches the product into the market.

2) GROWTH STAGE:

Company build brand preference and increase market share.

3) MATURITY STAGE:

Competitors starts. Products come up with new features and face new competitions.

4) DECLINE STAGE:

Sales decline. Firms either reduce cost to continue or quit from the market.

PRODUCT LIFE CYCLE OF MARUTI 800

Maruti 800 is a small city car that was manufactured by Maruti

Suzuki in India from 1983 to 18 January 2014.

The first generation (SS80) was based on the 1979 Suzuki Fronte and

had an 800 cc F8B engine

Widely regarded as the most influential automobile in India, about 2.87

million 800s were produced during its course of which 2.66 million

were sold in India itself.

With over 30 years of production, Maruti 800 remains the second

longest production car in India.

In the 1980s and early 1990s, the name "Maruti" was synonymous with

the Maruti 800. It remained the best-selling car in India until 2004.

It was also exported to a number of countries in South

Asia including Nepal, Bangladesh and Sri Lanka and was also available

in Morocco and selected European markets, sold as the Suzuki Maruti.

MARUTI 800 PRODUCT LIFE CYCLE

MARUTI 800 INTRODUCTION STAGE ( 1983-1986)

The introduction of this car did revolutionize the automotive industry in India. Right from its inception, it was considered as the

first affordable people's car, the first modern era front wheel drive and high speed contemporary vehicle.

MARUTI UDYOG LIMITED Launched first ‘MARUTI 800’, in Indian market on December 1983. It’s a collaboration between

INDIAN STATE owned MARUTI and SUZUKI MOTOR JAPAN.

The delivery was against bookings done directly with Maruti Udyog Limited (A Govt. of India undertaking). The proud owner

would have to wait for almost 3 years after booking till delivery.

First car was presented to Lord Venkateswara of Tirumala Venkateswara temple. First car was sold to Harpal Singh for

Rs.48,000/- as a lucky owner and received keys from Prime Minister of India INDIRA GANDHI.

MARUTI 800 GROWTH STAGE (1987-1996)

MARUTI 800 comes up with new features like , AC version and Music System in the car.

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

First export began in 1987.

This grille was replaced by a mesh grille with the Maruti Logo in the centre in 1995.Also,the Classic Bonnent opener that was placed on the Bonnent was replaced by an ejection button in the inside of the car.

Strategies adopted:

Customer care has became a key element for Maruti,

Increased Maruti service stations every 50kms on a highway,

For increasing its market share it launched new car models.

PRODUCT LIFE CYCLE MATURITY STAGE (1997-2002)

In 1997,MARUTI introduced a new car with Jelly Bean shape . However it was not so successful in the market.

Launched revamped version of MARUTI 800 EX, with new engine, shock absorber, coil spring suspension, but this model

lost their sales gradually .

Entry of competitors like General Motors, Ford, Tata.

In 2002, MARUTI launched ‘ALTO’ , with bigger stylish version of the Maruti 800.

Introduced LPG variables, called Maruti 800 Duo with new face lifts like newer grille and clear lens head lamps.

STRATARGIES ADOPTED AT MATURITY STAGE

• Pricing strategy:– categorizing to all segments ,car priced at Rs. 1,87,000/- is the lowest offer on the road

• Developed different revenue streams in the form of Maruti insurance, Maruti finance.

• Introduced new facelifts model based on market responses or consumer feedbacks or the competitors moves

• Committed to motorizing India Partnership with STATE BANK OF INDIA

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

MARUTI 800 DECLINING STAGE (2002 – 2014)

• Due to heavy competition from competitors like Hyundai i10 and Chevrolet Spark, sales of Maruti 800 was drastically

decreased.

• The sales went down from 1,51,976 units in the year 2000 to about 69,553 in 2007.

• Buyers were attracted to cheap small cars like NANO.

• In 2008-2009 experienced a drastic reduction in sales.

• Major competitor Tata Motors launched Tata Nano, which was smaller and yet offered more space than the Maruti 800

COMPITATORS