Product Life Cycle of Maruti 800 &

BCG Matrix of Maruti

Presented ByMinni Arora

Sofia

Manpreet KaurRuminder Singh

Vishali Ghamta

Ranbir Singh

Anmol pathak

MARUTI

MARUTI UDYOG LIMITED was established in

1981

Largest automobile company in India located at

Gurgaon, Manesar.

Portfolio of 13 brands and 150 variants like,

MARUTI 800, ALTO, WAGANOR, SWIFT, GRAND

VITARA, SX4 AND SWIFT DZIRE etc.,

Listed in BSE & NSE.

Honored with “METI” award from Govt. of Japan

for promotion of Japanese brand in India.

PRODUCT LIFE CYCLE (PLC)

Like human beings, products also have an

arc. From birth to death, human beings pass

through various stages e.g. birth, growth,

maturity, decline and death.

A similar life-cycle is seen in the case of

products. The product life cycle goes through

multiple phases, involves many professional

disciplines, and requires many skills, tools

and processes.

STAGES OF PLC PRODUCT DEVELOPMENT:-

It is the stage where a company finds and develop a new product idea. Sales are zero at this stage.

INTRODUCTION STAGE:-

Company builds product awareness and develop market for the product and launches the product into the market.

GROWTH STAGE:-

Company build brand preference and increase market share.

MATURITY STAGE:-

Competitors starts. Products come up with new features and face new competitions.

DECLINE STAGE:-

Sales decline. Firms either reduce cost to continue or quit from the market.

1983-86

1987-96

1997-02

2002 – UPTO

NOW

MARUTI 800

INTRODUCTION STAGE

(1983-1986) MARUTI UDYOG LIMITED Launched first ‘MARUTI

800’, in Indian market on December 1983.

It’s a collaboration between INDIAN STATE

owned MARUTI and SUZUKI MOTOR JAPAN.

Cheapest car in the Indian market.

Also exported to countries like South Asia

and South American market.

First car was presented to Lord Venkateswara of

Tirumala Venkateswara temple.

First car was sold to Harpal Singh for Rs.48,000/- as a

lucky owner and received keys from Prime Minister of

India INDIRA GANDHI.

GROWTH STAGE

(1987-1996) MARUTI 800 comes up with new features like , AC

version and Music System in the car.

Sales increased by 852 units to 20,269 units and

reached up to 31,314 units

First export began in 1987.

Sales soared from about 63,763 units to

about 1,89,061 units in 1996.

MATURITY STAGE

(1997-2002) In 1997,MARUTI introduced a new car with Jelly Bean

shape . However it was not so successful in the market.

Launched revamped version of MARUTI 800 EX, with

new engine, shock absorber, coil spring suspension,

but this model lost their sales gradually .

Entry of competitors like General Motors,

Ford, Tata.

In 2002, MARUTI launched ‘ALTO’ ,

with bigger stylish version of the Maruti 800.

Introduced LPG & CNG variables, called Maruti 800

Duo with new face lifts like newer grille and clear lens

head lamps

DECLINING STAGE

(2002 – UPTO NOW) Due to heavy competition from competitors like Hyundai i10 and

Chevrolet Spark, sales of Maruti 800 was drastically decreased.

The sales went down from 1,51,976 units in the year 2000 to about

69,553 in 2007.

Buyers were attracted to cheap small cars like NANO.

In 2008-2009 experienced a drastic reduction in

sales.

Major competitor Tata Motors launched Tata Nano, which was

smaller and yet offered more space than the Maruti 800

Sales are continued in semi urban and rural areas till today .

Now in 2012 Maruti introduces ALTO 800 in the place of Maruti 800

.

REPOSITIONING THE

PRODUCT After a drastically decline in the sales of Maruti 800 ,

MUL had repositioned its product Maruti 800 with ALTO 800.

Alto 800 was introduced into the market on October 16,2012.

ALTO 800 is designed with latest features of more space, speed acceleration, power steering etc.,

Now ALTO 800 is available in Indian market for the price of 2.5 lakhs(approx).

BCG MATRIX(MARUTI 800)

BCG MATRIX

The BCG Growth-Share Matrix is a portfolio planning model

developed by Bruce Henderson of the Boston Consulting Group in

the early 1970's.

Question marks

Stars

Cash cows

Dogs

INTRODUCTIONGROWTH

MATURITY DECLINE

(1983-1986)(1987-1996)

(1997-2002)

(2002 – UPTO NOW)

High Low

Low

High

Cash cows: Products which gives maximum

profit and which consumes maximum market

share. As it’s a maturity stage so they need to be

replaced because the future growth will be lower.

Stars: products which gives high profits, high

growth rate and have strong market share.

Question marks: products consume large amount of cash because they have low market share and do not generate much cash. It can lead a product to dog or cash cows.

Dogs: products which have low market share and low growth rate and does neither generate nor consume large amount of cash. That is product declining and falling stage.

ANALYSIS

•

• Withdrawn from 13 cities

• Repositioned to alto 800

• Sales touched 200k mark in 1999.

• Entry of competitors like GM, TATA, Ford.

• Huge gap b/w demand and supply.

• Waiting list.

• Increase in Production and sales

• No threat of competitors

Stars

(Growth)

Question

(Intro)

Dog

(Decline)

Cash Cows

(Maturity)