maruti - a case study
TRANSCRIPT
MARUTI UDYOG LIMITED
MARUTI UDYOG LIMITED
Saurabh Jain Varun Chugh
Amit Mittal Kamal Gupta
Sunil Saini
OverviewOverview
Market Car Segments Maruti Suzuki Portfolio Competition
Market Car Segments Maruti Suzuki Portfolio Competition
Vehicles per ‘000 personVehicles per ‘000 person
Automotive Penetration
478
373 395
508
3 14 50
100
200
300
400
500
600
No
of
Ca
rs
Automotive Penetration
478
373 395
508
3 14 50
100
200
300
400
500
600
No
of
Ca
rs
Source: World Bank, Provided by GAIL India Ltd. (2001-02)
Market Size & GrowthMarket Size & Growth
Source: GAIL India Ltd.
Economic FactorsEconomic Factors
Customers buy on basis of income, aspiration levels, and lifestyles
Increasing disposable income in service sectors.
Easy availability of finance options.
Customers buy on basis of income, aspiration levels, and lifestyles
Increasing disposable income in service sectors.
Easy availability of finance options.
Easy Finance OptionsEasy Finance Options
76% of Maruti cars are financed
44% through Maruti Finance, 12 % through SBI and associate banks
In year 2006-07, it added Mahindra Finance, Magma Leasing , Cholamandalam and Axis Bank.
76% of Maruti cars are financed
44% through Maruti Finance, 12 % through SBI and associate banks
In year 2006-07, it added Mahindra Finance, Magma Leasing , Cholamandalam and Axis Bank.
Car SegmentationCar SegmentationSegment Price Range Cars
A < 3.0 lacs Maruti 800, Omni , Reva
B 3.0 -5.0 lacs Wagon R, Zen, Versa, Ambassdor, Fiat Palio, Esteem, Tata Indica, Indigo
C 5.0 -10.0 lacs Baleno, Elantra, Honda City, Lancer, Innova, Sx4
D 10.0 -15.0 lacs Octivia, Corolla, Civic
E 15.0 – 30.0 lacs Honda CRV, Maruti Grand Vitara, Honda Accord
http://www.surfindia.com/automobile/automobile-industry.html
Market segmentationMarket segmentation
The Journal of Business Perspective, Vol 10, No 1: Jan - Mar 2006
Segments A and B constitute around 80% of total passenger car sales
Major players in the market Major players in the market
The Journal of Business Perspective, Vol 10, No 1: Jan - Mar 2006
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Maruti’s MarketshareMaruti’s Marketshare
Se
gm
en
t A
Se
gm
en
t B
Se
gm
en
t C
0
25
50
75
100FY02 FY03Segment A:Maruti 800, Omni
Segment B:Zen, Alto, Wagon R
Segment C:Swift, Esteem, Baleno
Maruti Suzuki Product PortfolioMaruti Suzuki Product Portfolio
Maruti 800
Omni
Alto
WagonR
Swift
Zen
Gypsy
Esteem
Versa
SX4
Grand Vitara
Maruti 800
Omni
Alto
WagonR
Swift
Zen
Gypsy
Esteem
Versa
SX4
Grand Vitara
ExportsExports
PlacingPlacing
Sales network of 562 outlets in 372 towns and cities
2538 workshops in over 1200 towns and cities
Sales network of 562 outlets in 372 towns and cities
2538 workshops in over 1200 towns and cities
www.marutisuzuki.com
Maruti 800 : Change Your Life Maruti 800 : Change Your Life The Maruti 800, has gone beyond just a car,
it has actually changed the lives and lifestyles of countless people, by bringing the joy of motoring to millions across the length and breadth of the country
The Maruti 800, has gone beyond just a car, it has actually changed the lives and lifestyles of countless people, by bringing the joy of motoring to millions across the length and breadth of the country
Alto: Let’s goAlto: Let’s go
The alto is a great combination of economy , practicality and styling. A runaway success on the roads of Europe, it exemplifies the benchmark in build, quality and reliability in a compact car. This is testified by the 24-hour endurance record set on Aug 03, 2003 of covering 3082 kms in 24 hours at an average speed of 128kmph.
The alto is a great combination of economy , practicality and styling. A runaway success on the roads of Europe, it exemplifies the benchmark in build, quality and reliability in a compact car. This is testified by the 24-hour endurance record set on Aug 03, 2003 of covering 3082 kms in 24 hours at an average speed of 128kmph.
Omni: Fits allOmni: Fits all
The Omni is truly India’s original Multipurpose vehicle. Today it is available in 6 Avtars – 5 Seater, 8 Seater, Cargo, Ambulance, CNG and LPG. It meets diverse needs across different user segments and can double up both as a people carrier and a goods carrier. This faithful workhorse is easy on the pocket, yet tough on the job.
The Omni is truly India’s original Multipurpose vehicle. Today it is available in 6 Avtars – 5 Seater, 8 Seater, Cargo, Ambulance, CNG and LPG. It meets diverse needs across different user segments and can double up both as a people carrier and a goods carrier. This faithful workhorse is easy on the pocket, yet tough on the job.
Zen Estilo: Shape Your WorldZen Estilo: Shape Your World
A Spanish expression for Style, the new Zen Estilo stands true to its name. Its aerodynamic body, unique bean shape, sparkling colors and snazzy lights will rev up your style quotient. An amazing blend of style and substance, its agile nature will leave you enthralled.
A Spanish expression for Style, the new Zen Estilo stands true to its name. Its aerodynamic body, unique bean shape, sparkling colors and snazzy lights will rev up your style quotient. An amazing blend of style and substance, its agile nature will leave you enthralled.
Wagon R: For the Smarter RaceWagon R: For the Smarter Race Drive with complete peace of mind. The word-
class safety features of the wagonR keep you safe and secure, always. Wearing new vibrant colors, the new wagonR is full of freshness and energy to keep you charged up and always to go.
Drive with complete peace of mind. The word-class safety features of the wagonR keep you safe and secure, always. Wearing new vibrant colors, the new wagonR is full of freshness and energy to keep you charged up and always to go.
PricingPricing Maruti is the industry leader and sets the
standards in pricing. Penetrative pricing policy to reach
masses 800 : Rs 2.2 lakh Alto : Rs 2.5 lakh Wagon-R : Rs 3.5 lakh Zen Estillo : Rs 3.3 lakh Omni : Rs : 2.5 lakh
Maruti is the industry leader and sets the standards in pricing.
Penetrative pricing policy to reach masses
800 : Rs 2.2 lakh Alto : Rs 2.5 lakh Wagon-R : Rs 3.5 lakh Zen Estillo : Rs 3.3 lakh Omni : Rs : 2.5 lakh
PromotionPromotion
Advertisements targeting different segments
Promotional offers through out the years
Psychographics is used : Wagon-R : Smarter people (executives) Omni : People who need to transport goods
Alto : Small car : small family Zen Estillo : Young trendy people
Advertisements targeting different segments
Promotional offers through out the years
Psychographics is used : Wagon-R : Smarter people (executives) Omni : People who need to transport goods
Alto : Small car : small family Zen Estillo : Young trendy people 21
The CompetitionThe Competition
HYUNDAI SANTRO
•
• TATA INDICA
CHEVY SPARK
HYUNDAI SANTRO
•
• TATA INDICA
CHEVY SPARK
Hyundai SantroHyundai Santro
+ Santro rated “Best Small Car” in JD Power Asia Pacific Initial Quality and APPEAL studies.
+ European styling , power-assisted brakes, advanced suspension system and uniquely responsive engine.
+ Celebrity endorsed (Shahrukh Khan and Preity Zinta).
+ Hyundai had a national network of 300 sales and service outlets.
- The spares are expensive than that of Maruti.
+ Santro rated “Best Small Car” in JD Power Asia Pacific Initial Quality and APPEAL studies.
+ European styling , power-assisted brakes, advanced suspension system and uniquely responsive engine.
+ Celebrity endorsed (Shahrukh Khan and Preity Zinta).
+ Hyundai had a national network of 300 sales and service outlets.
- The spares are expensive than that of Maruti.
Tata IndicaTata Indica+ Car built for Indians by Indians.
+ Ambassador’s internal dimension and Maruti 800’s price with option of diesel engine.
+ Has a sleek fascia with chrome lined grill, clear lens illumination, muscled flares, flexible seating and electronic instrumentation with tachometer.
+ Cheaper and home grown spares.
+ Has lowest running cost (around Rs. 2.06 /km)
+ Car built for Indians by Indians.
+ Ambassador’s internal dimension and Maruti 800’s price with option of diesel engine.
+ Has a sleek fascia with chrome lined grill, clear lens illumination, muscled flares, flexible seating and electronic instrumentation with tachometer.
+ Cheaper and home grown spares.
+ Has lowest running cost (around Rs. 2.06 /km)
Chevrolet SparkChevrolet Spark
+ General Motors rolled out its small car Chevrolet Spark in India as it takes on market leader Maruti Suzuki.
+ Rs 3.09 lakh (Ex-showroom Delhi) slightly lower than Maruti’s Zen Estillo base model. Improved cabin space.
+ General Motors rolled out its small car Chevrolet Spark in India as it takes on market leader Maruti Suzuki.
+ Rs 3.09 lakh (Ex-showroom Delhi) slightly lower than Maruti’s Zen Estillo base model. Improved cabin space.
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Supply Chain Supply Chain
The joint initiatives taken by Maruti and its team of suppliers have generated over 29% cost reduction over three years for Maruti
Less than 20 per cent of a car is manufactured in-house. The rest is accounted for by 215 suppliers and hundreds of second and third tier of vendors who, in turn, supply to them.
The joint initiatives taken by Maruti and its team of suppliers have generated over 29% cost reduction over three years for Maruti
Less than 20 per cent of a car is manufactured in-house. The rest is accounted for by 215 suppliers and hundreds of second and third tier of vendors who, in turn, supply to them.
Thank YouThank You
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