Maruti Suzuki India Limited

Maruti Suzuki India Limited (MSIL, formerly Maruti Udyog Limited), a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift,Wagon-R, Estillo and sedans DZire, SX4, in the 'C' segment Maruti Eeco and Sports Utility vehicle Grand Vitara. Maruti Suzuki is India's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offeringof 25% of the company in June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.

The company exports more than 50,000 cars annually and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983.

Maruti Suzuki offers 14 models. Maruti800, Alto, WagonR, Estilo, Astar, Ritz, Swift, SwiftDZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashi. Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Targeting:

Maruti was introduced targeting the middle class. It’s target segments are well depicted in its product pyramid profit model.Targeting was based on a lot of factors such as style, comfort, price etc.

Pricing Strategy:

Maruti caters to all segments and has a product offering at all price points. Their pricing strategy is to provide every customer an option to buy a new car or upgrade his / her car.

Creating Different Revenue Streams:

Maruti Finance, Maruti Insurance, Maruti Driving School.

Repositing of Products:

Whenever a Maruti brand grows old or its sales start slipping, they took efforts in repositioning of the products. Some examples can be:

Omni: Enhanced interiors and exteriors, Omni cargo and CNG Omni.

Versa: Prices slashed by introducing a low cost less powerful engine.

Esteem: New looks to boost the sales.

Baleno: Price slash from 1999 (7.2 lacs) to 2003 (5.46 lacs).

WagonR: Modifications in the engine and a more sporty look.

Zen: Modified 4 times and always had special editions introduced.

CBBE Model

Subdimentions of the Brand building model:

Kapferer’s Model:

Phisique: The basis of the brand

Personality: What happens to this brand when it becomes a person?

Culture: Symbolises the organization, its country of origin and the value it stands for.

Relationship: It is the handshake between the consumer and the organization.

Reflection: The consumer’s perception for what the brand stands for.

Self-image: This is what the consumer thinks about himself.

Questionnaire:

1. What comes to your mind first when you see / hear ‘Maruti’?a. Carsb. Bikesc. Trucksd. Bus

2. What do you relate Maruti Suzuki with?a. Reliableb. Economicc. Stylishd. Dynamic

3. For what type of a commute would you like to use your Maruti for?a. Long Journeys, trips.b. Short commute to the market place, office etc.c. As a passenger car.d. All.

4. Will your next car be a Maruti? 5. To which person in your life will you relate this brand to?6. What are the values for which the brand stands for?7. What do you feel like when you drive a Maruti brand?8. Can you share one of your experiences with Maruti’s after sales service?9. Do you always use Maruti genuine spare parts? Why?10. Would you insure your car with Maruti Insurance? Why?

Analysis:

I asked these questions to 20 people and tried to relate their answers to the CBBE and Kapferer’s Model.

CBBE Model:

1. Identity: Maruti has established a very good brand identity in India. Most of the credit goes to the early establishment of the company. All 20 people gave the answer ‘car’ to the question ‘What comes to your mind first when you see / hear ‘Maruti’?’

2. Meaning and Rsponse: The meaning and respose was mostly economical, reliable, trustworthy, all purpose vehicle.

3. Resonance: Maruti has high customer loyalty as more than 70% people said that their next car will be a maruti and they always prefer to use Maruti genuine spare parts as they trust Maruti and have excellent availability.

Kapferer’s Model:

1. Physique: Maruti is always related to a Light Motor Vehicle.2. Personality: Reliable, trustworthy (Was related to a friend, father).3. Culture: Economical4. Relationship: Customers share an excellent relationship with Maruti as they prefer using MGPs,

Maruti Insurance and Finance.5. Reflection: Maruti as a brand is “for all”.6. Self-image: Maruti encourages a feeling of happiness.