SDM COLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF MANAGEMENT STUDIES MBA

REPORT ON

Product Life Cycle Of Maruti 800

2017-2018

COURSE INSTRUCTOR

Mrs. Shilpa Arakeri

( Lecturer, Department Of Management Studies, SDMCET)

SUBMITED BY

Sagar Singh Rajput ( 2SD15MBA41 )

Rahul V Gulaganji ( 2SD15MBA32 )

Product Life Cycle

The idea that products, like people, have a birth, a life and a death, and that they

should be financed and marketed with this in mind.

This is the idea that products, like people, have a birth, a life and a death, and that

they should be financed and marketed with this in mind. Even as a new product is

being launched, its manufacturer should be preparing for the day when it has to be

killed off. Its sales and profits start at a low level, rise (it is hoped) to a high level

and then decline again to a low level. This cycle is sometimes referred to simply as

PLC.

Philip Kotler Breaks The Product Life Cycle Into 5 Distinct Phases

Stages Of Product Life Cycle

1 Product development. The phase when a company looks for a new product.

New products do not have to be “out-of-the-blue” new (like the video-cassette

recorder or the compact disc). They may be merely additions to existing product

lines (the first cigarette with a filter tip, for instance) or improvements to existing

products (a new whiter-than-white washing powder).

2 Introduction. The product's costs rise sharply as the heavy expense of

advertising and marketing any new product begins to take its toll.

3 Growth. As the product begins to be accepted by the market, the company starts

to recoup the costs of the first two phases.

4 Maturity. By now the product is widely accepted and growth slows down.

Before long, however, a successful product in this phase will come under pressure

from competitors. The producer will have to start spending again in order to defend

the product's market position.

5 Decline. A company will no longer be able to fend off the competition, or a

change in consumer tastes or lifestyle will render the product redundant. At this

point the company has to decide how to bring the product's life to an end—what is

the best end-game that it can play?.

Advertising Appeal In Various Stages Of Product Life Cycle With

An Example Of Maruti 800

About Company

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an

automobile manufacturer in India. It is a 54.2%-owned subsidiary of Japanese

automobile and motorcycle manufacturer Suzuki Motor Corporation. As of

January 2017, it had a market share of 51% of the Indian passenger car market.

Maruti Suzuki manufactures and sells popular cars such as the Ciaz, Ertiga, Wagon

R, Alto, Swift, Celerio, Swift Dzire and Omni. The company is headquartered

at New Delhi. In February 2012, the company sold its ten millionth (ten million =

one crore) vehicle in India.

Maruti was established in February 1981, though the actual production commenced

only in 1983. It started with the Maruti 800, based on the Suzuki Alto kei

car which at the time was the only modern car available in India. Its only

competitors were the Hindustan Ambassador and Premier Padmini. Originally,

74% of the company was owned by the Indian government, and 26% by Suzuki of

Japan. As of May 2007, the government of India sold its complete share to Indian

financial institutions and no longer has any stake in Maruti Udyog.

About Maruti 800

Maruti 800 is a small city car that was manufactured by Maruti Suzuki in India

from 1983 to 18 January 2014. The first generation (SS80) was based on the

1979 Suzuki Fronte and had an 800 cc F8B engine, hence the moniker. Widely

regarded as the most influential automobile in India, about 2.87 million 800s were

produced during its course of which 2.66 million were sold in India itself.

With over 30 years of production, Maruti 800 remains the second longest

production car in India, next only to Hindustan Ambassador. It is Fondly called

as," The Car that put India on Wheels".

In the 1980s and early 1990s, the name "Maruti" was synonymous with the Maruti

800. It remained the best-selling car in India until 2004, when the Maruti Alto took

the title. It was also exported to a number of countries in South

Asia including Nepal, Bangladesh and Sri Lanka and was also available in

Morocco and selected European markets, sold as the Suzuki Maruti. In an

elaborate ceremony held in New Delhi on 14 December 1983, then Prime

Minister Indira Gandhi handed over keys of the very first car to Mr. Harpal Singh,

who won the ownership rights through a lucky draw. The original 800 was based

on the Suzuki Fronte SS80, but a modernized aerodynamic version using the body

of the second-generation Alto (SB308) was presented in late 1986. The

introduction of this car did revolutionize the automotive industry in India. Right

from its inception, it was considered as the first affordable people's car, the first

modern era front wheel drive and high speed contemporary vehicle. The delivery

was against bookings done directly with Maruti Udyog Limited (A Govt. of India

undertaking).

Technical Specifications of Maruti 800

Dimensions and weights

Overall length: 3,335 mm (131.3 in)

Overall width: 1,440 mm (56.7 in)

Overall height: 1,405 mm (55.3 in)

Wheelbase: 2,175 mm (85.6 in)

Ground clearance: 160 mm (6.3 in)

Curb weight: 650 kg (1,433 lb)

Gross vehicle weight: 2,000 kg (4,409 lb)

Capacities

Seating capacity: 5 people maximum

Fuel tank capacity: 28 L (7.4 US gal)

Engine oil : ~2.7 Lt including oil filter

Transmission oil: ~2 Lt

Coolant: 3.6 Lt

Windscreen Washer Fluid: 1.75 Lt

Performance

Maximum speed: 145 km/h (90 mph)

0–100 km/h (0–62 mph): 20 seconds

Fuel economy

Mileage highway: 19.1 km/l (5.2 l/100 km; 45 mpg-US)

Mileage city: 18.1 km/l (5.5 l/100 km; 43 mpg-US)

Engine

Engine model: F8B MPFI

Displacement: 796 cc (49 cu in)

Valves per cylinder: 2

Number of cylinders: 3 inline

Fuel type: Petrol

Power: 37 BHP at 5500 rpm

Transmission

Transmission type: Manual

Gears: four-speed gearbox, 5-speed gearbox (limited edition)

Suspension

Front suspension: MacPherson strut and coil spring

Rear suspension: Coil spring with gas-filled shock absorbers

Steering

Steering type: Rack and pinion

Minimum turning radius: 4.42 m (14.5 ft)

Brakes

Front brakes: Disk

Rear brakes: Drum

Brake mechanism: Hydraulic

Wheels and tyres

Tyres (radial optional): 145/70 R12.

1) 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.

2)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.

Strategies adopted-

• Customer care has became a key element for Maruti,

• Increased Maruti service stations every 25 kms on a highway,

• For increasing its market share it launched new car models.

3) 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.

Strategies adopted at Maturity stage :

• Pricing strategy:– categorizing to all segments ,car priced at Rs. 1,87,000/-

is the lowest offer on the road

• Developed different revenue streams in the form of Maruti insurance, Maruti

finance.

• Repositioning of Maruti products

• Introduced new facelifts model based on market responses or consumer

feedbacks or the competitors moves

• Customer centric approach:

call centers bring Maruti to closer to its customer.

• Committed to motorizing India

Partnership with State Bank Of India organized finance to small towns enable

people to buy cars in Rs.2599/- scheme

4) Declining Stage (2002 – 2013)

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).