maruti suzuki india
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Sub Marketing Strategy. Submitted to Prof. Vikram Parekh. Date 21/ 09/ 2009
Mohd. Asad Khan. Bhaskar Shukla. Tushar Kamble. Kanchan Sahare. Sachin Surve.
VISION1984 :- Fuel efficient Vehicle with latest technology. 1987 :- Leader in Domestic Market and Be among Global Players in Overseas Market. 1997 Till Date :- The leader in Automobile industry, Creating Customers delight and Shareholders wealth, a
ABOUT MARUTI SUZUKISubsidiary India's
of Suzuki Motor Corporation of Japan
largest passenger car company
25 Years of trust 7720 employees in 4 plants
INDIAN AUTOMOBILE INDUSTRY (2007-08)
CURRENT STRATEGIES BY MARUTI
Pricing strategy - catering to all segments Offering one stop shop to customers Repositioning of Maruti products
Customer Centric Approach Committed to motorizing India Realisation of importance of vehicle maintenance services market Playing on cost leadership
COMPETITOR ANALYSIS 2.
HYUNDAI Positioning of Hyundai Santro- Family Car to Smart Car for young People - Complete Family Car to Sunshine car.
2. Hyundais Pricing Strategy - Markdown of Prices on Santro Xing- Non AC Santro at 2.79 Lacs
TATA MOTORS Positioning Of Tata Indica - Indica is positioned as more car per car
Tatas Pricing Strategy - Indica is priced between Rs 2.56 Lacs to 3.88 Lacs
Perception Change Growing Competition In Compact Cars Few Maruti models may face extinction
RULE OF 3
Maruti Suzuki is Specialist. As it plays only in Passenger and Commercial cars and related Subsidiaries.Maruti Insurance (2002) Maruti Finance (2002, 166 cities) Authorized Service Stations. Maruti True Value Maruti Driving Schools (Delhi and Panjab)
Market leader (54%. 2008-09)
Expanding the total market. Defending the market share. Expanding market share.
PORTERS FIVE FORCES
BASIS OF SEGMENTATIONGeographic Region, City or Metro Size, Density, Climate
Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...
Psychographic Lifestyle or Personality
TARGETING :- SELECTIVE SPECIALIZATIONMarket Urban Product A1 A2 A3 SUV C- Class Yes Yes Yes Yes Yes Yes Semi Urban Yes Yes Yes Rural
TARGETING :- ON THE BASIS OF INCOME GROUPIncome Group Product A1 A2 A3 SUV C- Class Yes Yes RS. 2- 3 lacs. /annum Yes Yes Yes Yes Yes Yes RS. 3-5 lacs. /annum RS. 5 - > 5 lacs. /annum
POSITIONINGProduct A1 Target Customers A consumer who wants car. A consumer who wants Small & spacious car. A consumer who wants more comfort car Lifestyle Oriented consumers. A consumer who wants car for commercial use Benefits Durability and Performance Spaciousness . Value Proposition A car which gives Durability in low cost. A spacious small car without extra cost.
Design, Style and A car design with Luxury. style and luxury. Rigidness, Luxury and Comfort . More spacious car. A Vehicle that provides the luxury and Comfort of a car. car with A big reasonable price
BCG MATRIXRelative market share = Business unit sales this year Leading rival's sales this year Market growth rate = Individual sales - Individual sales current year pervious year Individual sales pervious year
Overall cost leadership
Low-cost-position relative to a firms peers Manage relationships throughout the entire value chain
Create products and/or services that are unique and valued Non-price attributes for which customers will pay a premium
Narrow product lines, buyer segments, or targeted geographic markets Attain advantages either through differentiation or cost leadership
GENERIC STRATEGIESLower Cost Differentiation
S c o p e
AN OFF'S MATRIXExisting ProductMarket Penetration Distribution Expansion of manufacturing facilities
New ProductProduct Development New product Splash
New Marke t
Market Development Exports
Product Price Place Promotion
EXISTING PRODUCT STRATEGYPortfolio of 12 products Five product lines
Product Line A1 A2 A3 SUV C - Class
Products 800 Alto, Zen ,Wagon R, Swift, A-star D ZiRE, Sx4 Vitara, Gypsy Omani, Versa
Core Product, Formal Product, Augmented Product & Future Product
Guarantees & warranties
After sales services Delivery points & systems
Replaceme Attributes Styling nt or returns Colour policy Instructions Core Manual Product Payment options (for high priced prodcts)
Brand Name Packaging
Installation (for bulky products)
Customer complaint management
C ed ust a uc om Tr nd ati er on ai ni ng
SUGGESTED PRODUCT STRATEGYMore fuel efficient cars. AlterNet fuel cars. Eco friendly cars. More focus on A1, A2 & A3.
MORE FOCUS ON A1, A2 & A3.
EXISTING PRICE STRATEGY
Pricing Objective :- Market share & Cost Leadership Pricing Method :- Markup Pricing (cost plus pricing ) Pricing strategy :- Economical Pricing
SUGGESTED PRICE STRATEGY
Continue Economic pricing strategy as it will help to achieve goal of become cost leader. Expansion of manufacturing facility to achieve economies of scale.
EXISTING PLACE STRATEGY
600 New car sales outlets covering 393 cities. 265 Maruti True Value outlets spread across 166 cities. 2628 Maruti Authorized Service Stations, covering 1220 cities. Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat
SUGGESTED PLACE STRATEGY
400 new car sales outlets in next three years. 150 new true value shops in next three years. 1200 new Maruti Authorized Service Stations in next three years. Tie up with other distributors for Exports.
EXISTING PROMOTION STRATEGYo Advertisingo TV Ads o Print Ads o Radio Ads
o Advertising Strategy
Persuasion Advertising Ghar Aa Gaya Hindustan India Comes Home in Maruti Suzuki. Information Advertising
Alternative Advertising OptionsBTL - Sponsorships TV shows - Indias Got talent Place Advertising Bill boards
Sales PromotionsProduct warranties Premiums (gifts) Trade shows 2,628The number of workshops that provide customers with maintenance support in 1220 cities.
SUGGESTED PROMOTION STRATEGY
Continue with existing Advertising strategy. Look for Alternative Advertising Options. BTL