maruti suzuki strategic

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Diptiman Som Prithwiraj Pal Shatabdi Roy Subhadeep Paul Subhankar Dutta Prashant Kr Gupta

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 pride of India.

ABOUT MARUTI SUZUKISubsidiary of Suzuki Motor Corporation of

JapanIndia's largest passenger car company More than 25 Years of trust Over 7720 employees in 4 plants

Indian Automobile Industry (2009-10)

CURRENT STRATEGIES BY MARUTIPricing 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 ANALYSISHYUNDAI 1. Positioning of Hyundai Santro- Family Car to Smart Car for young People - Complete Family Car to Sunshine car.


Hyundais Pricing Strategy - Markdown of Prices on Santro Xing- Non AC Santro at 2.79 Lacs


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


CURRENT THREATSPerception Change Growing Competition In Compact Cars Few Maruti models may face extinction

Competitive PositionsMarket leader (54% in 2008-09)


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 Yes Yes Yes Yes Yes Semi Urban 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 A2 Target Customers Benefits Value Proposition A car which gives Durability in low cost. A spacious small car without extra cost. A car design with style and luxury. A Vehicle that provides the luxury and Comfort of a car. A big car with reasonable price

A consumer who wants Durability and car. Performance A consumer who wants Spaciousness . Small & spacious car. A consumer who wants Design, Style and more comfort car Luxury. Lifestyle Oriented consumers. Rigidness, Luxury and Comfort .




A consumer who wants More spacious car. car for commercial use

BCG MatrixRelative market share = Business unit sales this yearLeading rival's sales this year Market growth rate = Individual sales - Individual sales current year pervious year Individual sales pervious year

Generic Strategies

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

Focus strategy

Narrow product lines, buyer segments, or targeted geographic markets Attain advantages either through differentiation or cost leadership

Generic Strategies

Lower Cost


S c o p e

Industry wide

Cost Leadership


Particular Segment

Cost Focus

Differentiation Focus

Competitive Advantage

Ansoff's MatrixExisting ProductMarket Penetration Distribution Expansion of manufacturing facilities

New ProductProduct Development New product Splash

Existing Market

New Market

Market Development Exports


4Ps of Marketing

Product Price Place Promotion

EXISTING PRODUCT STRATEGYProduct Line A1 A2 A3 SUV C - Class Products 800 Alto, Zen ,Wagon R, Swift, A-star D ZiRE, Sx4 Vitara, Gypsy Omani, Versa


Guarantees & warranties

After sales services Delivery points & systems

Core Product

Replaceme Attributes Styling nt or returns Colour policy Instructions Core Manual Product Payment options (for high priced products)

Formal Product


Brand Name Packaging

Installation (for bulky products)

Customer complaint management

C ed ust a uc om Tr nd atio er ai n ni ng

Augmented Product

Future Product

Suggested product strategyMore fuel efficient cars. AlterNet fuel cars. Eco friendly cars. More focus on A1, A2 & A3.

Existing Price strategy

Pricing Objective :- Market share &

Cost LeadershipPricing 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 strategy600 New car sales outlets covering 393 cities. 265 Maruti True Value outlets spread across 166


2628 Maruti Authorized Service Stations, covering

1220 cities.

Tie up with Adani group for exporting 200,000 units

through Mundra port Gujarat

Suggested Place strategy400 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 Options BTL - Sponsorships TV shows - Indias Got talent Place Advertising Bill boards

Sales Promotions

Product warranties Premiums (gifts) Trade shows 2,628The number of workshops that provide customers with maintenance support in 1220 cities.

Suggested Promotion StrategyContinue with existing Advertising strategy.

Look for Alternative Advertising Options. BTL