maruti suzuki a complete presentation

Maruti Suzuki India Ltd. JBS 2010-12 1

It is a leading four-wheeler automobile

manufacturer in South Asia.

Maruti Suzuki India Limited, a subsidiary of

Suzuki Motor Corporation of Japan, has been

the leader of the Indian car market for over two

decades.

54.21% share of Maruti Suzuki India ltd. has

owns by Suzuki motors and 45.79% are with

Indian financial institutions and public.


Maruti Suzuki was incorporated as Maruti Udyog Limited on

24th of February 1981 under the provision of Indian companies

Act 1956.

Around 1970, Sanjay Gandhi, the Prime Minister of India,

Indira Gandhi’s younger son, envisioned the manufacture of an

indigenous, cost effective, low maintenance compact car for the

Indian middle class.

The name of the car was chosen as “Maruti”, after a Hindu

deity named Maruti.

On 2nd October 1982 Maruti Udyog ltd and Suzuki motor

corporation (SMC) japan singed the license and joint venture

agreement.


It’s manufacturing facilities are located at two facilities

Gurgaon and Manesar south of New Delhi. Manesar and

Gurgaon facilities have a combined capability to produce

over 700,000 units annually.

More than half the cars sold in India are Maruti Suzuki

cars. Due to the large number of Maruti 800s sold in the

Indian market, the term "Maruti" is commonly used to

refer to this compact car model.


The Automobile industry in India is the seventh

largest in the world with an annual production of over

2.6 million units in 2009.

As per statistics launched by Society of Indian

Automobile Manufacturers (SIAM), the passenger car

transactions in domestic market have surged to

145,905 units in January 2010 against the 2009 sales

of 110,300 units.

Indirectly refers to the 32.28% growth in the domestic

car sales.


Maruti Suzuki India Ltd. JBS 2010-12

Maruti is one of the companies in India which has

unparalleled service network. To ensure the vehicles

sold by them are serviced properly Maruti has 1945

listed Authorized service stations and 30 Express

Service Stations on 30 highways across 1314 cities in

India.

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Maruti Suzuki provides vehicle insurance to its

customers with the help of the National Insurance

Company, Bajaj Allianz, New India Assurance and

Royal Sundaram.


To promote its bottom line growth, Maruti launched Maruti

Finance.

Maruti Finance is currently available in 166 cities across India.

“Maruti Finance marks the coming together of the biggest

players in the car finance business.


Maruti True service offered by Maruti Suzuki to its

customers. It is a market place for used Maruti

Suzuki Vehicles. One can buy, sell or exchange used

Maruti Suzuki vehicles with the help of this service

in India.


As part of its corporate social responsibility Maruti

Suzuki launched the Maruti Driving School.

These schools are modelled on international standards,

where learners go through classroom and practical

sessions.

Before driving actual vehicles participants are trained

on simulators.


N2N is the short form of End to End Fleet

Management and provides lease and fleet management

solution to corporates.

This fleet management service include end-to-end

solutions across the vehicle's life, which includes

Leasing, Maintenance, Convenience services and

Remarketing.


Maruti started a new initiative under the brand name

Maruti Genuine Accessories to offer accessories like

alloy wheels, body cover, carpets, door visors, fog

lamps, stereo systems, seat covers and other car care

products.


Production at Maruti ...

• Maruti Production System or MPS draws

learning's from its parent company Suzuki Motor

Corporation's concepts on “lean manufacturing”.



• It is a strategy to achieve Manufacturing Excellence

• The system is people driven and ensures involvement

of all levels - Managers, Executives, and Supervisors

• With consistent improvements the company was able to

manufacture over 600,000 vehicles in 2006-07 with an

installed capacity of just 350,000 vehicles per year

• Every employee working on the line is 'cost sensitive'

and is a key contributor on how to keep costs of

production under control

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Products…

A2 WagonR - 1061cc in LPG also

”For the smarter race”

A2 Alto K10 - 998cc

“Dhantenan”

A1 Maruti 800 - 796cc

“Change ur life”

A1 and Entry A2 segment


Upper A2 or Premium Compact Segment

A3 Segment

A-Star - 998cc

“Stop @ nothing”

Swift Dzire – 1290cc in petrol

1248cc in diesel

“The Heart Car”

SX4 - 1598cc

“Men are Back”

Swift– 1298cc in petrol and 1248cc in diesel

“you’re the fuel” Ritz – 1197cc in petrol

1248cc in diesel

“Live the moment”


Grand Vitara – SUV Segment

“Play it your way”

Gypsy – 1300cc

“The King ”

Omni – 800cc Van type C segment

“Fits all”

B&C Segment

Eeco – 1200cc

“Happiness Family Size”


Future Plan …

Suzuki Cervo sport 660cc engine - as against

Nano's 623cc – and wear a tag of around

Rs 1.5 lakh on road.


Product Life Cycle…


2) Growth Stage: • Rapid growth in sales and profits

• Cheaper for business to invest in increasing

their market share

Eg- Swift, WagonR.

1) Introduction Stage: • Market share and growth is slight

• Substantial R&D costs

• Marketing costs are high

Eg- Eeco , Alto K10.


3) Maturity Stage:

• Competition is most intense

• Maximum profit is earned by the company

Eg- Ritz, SX4.

4) Decline Stage:

• Market shrinks and the overall profit reduces

• Depending on whether product remains profitable, a

company may decide to end the product

Eg- Maruti 800, Esteem.


Pricing…

•Pricing Objective - Market share & Cost Leadership

•Pricing Method - Markup Pricing

•Pricing strategy - Economical Pricing


• Expansion of manufacturing facility to achieve

economies of scale

• Maruti is the price dictator in Indian automobile

industry with Maruti 800 as the lowest priced car

• Their pricing strategy is to provide an option

to every customer looking for up gradation in car


Maruti Suzuki India is currently focussing its distribution

network to setup stock patio in different parts of the

country .

Maruti Suzuki facilitates combined production capacity

of 1,000,000 vehicles annually.

Maruti Suzuki Manufacturing Facility has three fully

integrated manufacturing plants in Gurgaon and is spread

over 300 acres. All three plants have an installed capacity

of 350,000 vehicles annually.


Maruti has around 15000 dealers who are catered buy the

sales executives.

The orders are collected by the sales executives and passed

on to the nearest depot.

The Gurgaon facilities also manufacture 240,000 K-

Series engines annually, equipped with more than 150

robots, out of which 71 have been developed in-house and

Facilities manufactures 800, Alto, WagonR, Estlio, Omni,

Gypsy, Swift and Eeco.


Maruti was the first company in India which studied the

customer demand and responded it well.

Market segmentation policy was adopted that targeted different

type of customers with different type of model.

Maruti suzuki’s advertising has created brand awareness,

highlighted what the brand has to offer and has consistently

brought all of it top-of-the-mind for the customer

Maruti has recognised the importance of communicating and

involving key players who influence the final brand choice.


ADVERTISEMENT…

Maruti has always tried to bind emotional relation with

people and their commercials always convey an emotional

message to the customer.

Maruti advertisement always target people segmently .

Maruti has very subtle way of communicating with people.


SERVICE… Maruti Suzuki provides multiple facility to the customer. It

satisfy customer needs through their different brand

extension in different segment.

The best facility Maruti is known for is their service station

and their reach.

SALES PROMOTION… Customer promotion

Trade promotion



Financial Analysis…

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SWOT Analysis… Strengths • After sales service

• Cost-effective

• Low maintenance

• Indian middle-class • Low price

• High fuel efficiency

Weaknesses • Lack of experience with the foreign market • Less exposure with foreign workforce

•Heavy Import tariffs


Opportunity

• High end car segment • Overseas market • Improve handling

• Add extra features to small segment cars • Attracting youth

• Export small cars

Threats • Foreign companies entering market; so a bigger threat from MNCs • There is hardly any diesel model

Maruti Suzuki India Ltd. JBS 2010-

12 33


No.1 in Initial Quality Study - JD Power Total

Customer Satisfaction - TNS Study.

Car of the Year- BS Motoring .

Car of the Year- CNBC Auto car.

Best Value for Money Car .

Viewer's Choice- CNBC Auto car.

Accolades…

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Maruti Suzuki should enter into luxurious car market so as to compete with other companies.

As per the feedback from the customers seats

should be comfortable and Seat fabric should be more durable,it is found that customers are more satisfied with the Maruti Suzuki diesel engine.

Maruti Suzuki Should put in more efforts to

promote Maruti Finance, Auto card, Accessories and True value.



The services provided by the company on the website are not being used because of the low penetration of internet in India. So it is recommended that these facilities should be made available at the point of purchase.

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The automotive industry is at the center of India’s new global dynamic.

Manufacturer’s product lines are being continually

expanded, as is the local automotive manufacturing base.

The country is already off to a good start, with a well-

developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers.



The overall industry-wide customer satisfaction with new-vehicle sales experience increased considerably during the year as the industry average score rose by 26 points

International manufacturers have established huge facilities in the country

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maruti suzuki a complete presentation

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