final msuzuki n mitsu

8/14/2019 Final Msuzuki n Mitsu

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An Overview

Maruti Suzuki

Name Maruti Suzuki India Limited

Incorporated

February 1981Joint VentureAgreement

October 1982

Equity Structure 54.2% Suzuki, Japan, balance with Other Financial Institution and PublicSales (No of Cars)Financial year2006-07

674, 924 including 39,295 exports.

Sales (Net of Excise)Financial year2006-07

INR 152.5 Billion , Yen 423.675 Billion ,$ 3.499 Billion *

Employee Strength 4993 of Financial year 2006-07Joint Venture 15 Joint Venture companies, including Suzuki Powertrain India Limited

for component supply.Product Portfolio 10 models with around 100 variants including:

Maruti 800 OmniAlto WagonR

Swift Zen

Gypsy Esteem

Versa SX4

Grand Vitara
http://www.maruti800.com/http://www.marutiomni.com/http://www.marutialto.com/http://www.marutiwagonr.com/http://www.marutiswift.com/http://www.marutizen.com/http://www.marutigypsy.com/http://www.marutiesteem.com/http://www.marutiversa.com/http://www.marutisx4.com/http://www.grandvitaraindia.com/http://www.maruti800.com/http://www.marutiomni.com/http://www.marutialto.com/http://www.marutiwagonr.com/http://www.marutiswift.com/http://www.marutizen.com/http://www.marutigypsy.com/http://www.marutiesteem.com/http://www.marutiversa.com/http://www.marutisx4.com/http://www.grandvitaraindia.com/


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Mitsubishi Motors

An Overview

Mitsubishi

Name Mitsubishi Motors Corporation

Established April 22, 1970

Head office 33-8, Shiba 5-chome, Minato-ku, Tokyo 108-8410 Japan

Chairman of theBoard[ Representative

Director ]

Takashi Nishioka (As of 22 June, 2007)

President[ RepresentativeDirector ]

Osamu Masuko (As of 22 June, 2007)

Net Sales JPY 2202.9 billion (in FY2006, consolidated)

Automotive Sales 1,232 thousands units

Products Sold in More than 170 countries


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Models in the Market

Maruti Suzuki

Maruti 800 Maruti Omni Maruti Alto

Maruti Wagon R Maruti Zen Estilo Maruti Versa

Maruti Swift Maruti Gypsy Maruti Esteem

Maruti SX4 Maruti Grand Vitara
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Models in the Market

Mitsubishi

Colt Colt Plus Delica D:5

ECLIPSE Eclipse Spyder Endeavor

Galant Galant Fortis Grandis

Lancer Lancer Evolution X Minica

Outlander Pajero Pajero Mini

TRITON Town box / Minicab eK Series
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Introduction to the Company

Maruti Suzuki

Maruti Udyog Limited was incorporated on February 24, 1981, and In October 1982MUL made a Joint venture with Suzuki Motor Corporation Japan, to meet the growingdemand for a personal mode of transport caused by the lack of an efficient publictransport system, with Suzuki as a minor partner, to make a people's car for middleclass India.Maruti 800 was the first car that was launched in 1984. The car had anengine capacity of 796 cc, high fuel efficiency and the pricing was extremelycompetitive. Over the last 10 years, MUL has launched various models targeting allsegments of customers over the years, the product range has widened, ownership haschanged hands and the customer has evolved. What remains unchanged, then andnow, is their mission to motorise India.

The parent company, Suzuki Motor Corporation, has been a global leader in mini andcompact cars for three decades. Suzuki's technical superiority lies in its ability to packpower and performance into a compact, lightweight engine that is clean and fuelefficient. The same characteristics make their cars extremely relevant to Indiancustomers and Indian conditions. Product quality, safety and cost consciousness aregelled into their manufacturing process, which they have inherited from parentcompany. Right from inception, Maruti brought to India, a very simple yet powerfulJapanese philosophy 'smaller, fewer lighter, shorter and neater'

Introduction to the Company

Mitsubishi

Mitsubishi Motors Corporation is the sixth largest automakerin Japan and theseventeenth largest in the world by global unit sales. It is part of the Mitsubishi keiretsu,formerly the biggest industrial group in Japan, and was formed in 1970 from theautomotive division ofMitsubishi Heavy industries.

Mitsubishi has its roots in producing commercial vehicles for its home market of Japan.

Its current selection of vehicles, which include cars, trucks and SUVs, tend to offerabove-average performance and style.A Japanese word meaning "three diamonds," Mitsubishi was founded in by YataroIwasaki, a descendant of samurais, in the early 1870s. The company's initial focus wason shipping, but it quickly diversified into areas such as mining and ship repair.

In 1917, Mitsubishi unveiled the Model A, Japan's first series production passenger car.In 1960, with the launch of the compact Mitsubishi 500, the company began producingpassenger vehicles on a large scale. Mitsubishi's automobile production arm wasofficially spun off into a company of its own with the establishment of Mitsubishi MotorsCorporation in 1970.
http://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Mitsubishihttp://en.wikipedia.org/wiki/Keiretsuhttp://en.wikipedia.org/wiki/Mitsubishi_Heavy_Industrieshttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Mitsubishihttp://en.wikipedia.org/wiki/Keiretsuhttp://en.wikipedia.org/wiki/Mitsubishi_Heavy_Industries


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Product Adaptation in Indian Markets and Exports:-

Maruti Suzuki

In Indian Market the Product adaptation goes by Region wise or Zone wise like East,West, North and South. But being the Market Leader since 20 years now Maruti Suzukiare manufacturing and launching those models in the Market which will fetch gooddemand and mark their presence in consumers mind. The Models which are producedare given equal importance in all the region and markets of India.Maruti Suzuki being largest passenger car manufacturing organisation, Maruti Suzukihas always encouraged exports to remain competitive in global markets. An exposure ofglobal markets always comes handy in improving product quality and cost.This is why, in 1986 despite a 3-year waiting period in the domestic market, TheCompany started exporting cars, only to ensure that they will remain competitive interms of cost and quality. Since then the company managed to sell more than 450,000cars to more than 100 countries of the world. Some of the cars became bestsellers. Likeold Zen- was projected as the World Car and was very well received in Europe.Similarly, Alto received rave reviews in Netherlands, Greece, Germany and Switzerland.

At present, company exports entry level models to many Latin American and Africannations. With a heavy focus on Non-European Countries Company have managed tobring incremental sales and our exports to these countries have grown by 47%, 65%and 40% in the past three years.New Export Model - Concept A-Star is the upcoming export model that has been

developed by Maruti and Suzuki Motor Corporation jointly. Production of this world carwill begin in October 2008, at Maruti's Manesar Plant.


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Product Adaptation in Different Markets/ Culture

Mitsubishi

Japan and Asian Market

MMC steadily improved its performance, delivering higher year-on-year sales.Supporting this performance was the launch of the new eK series and newPajero model.

MMC is targeting Japanese retail sales of 250,000 units. This target is based on

the launch of two new sedan models and special editions of current models.

MMCs goal is to make the Delica D:5 a long-selling model along with the Pajeroand Outlander in the SUV category, where MMC is strong. This move is toreinforce the line-up of registered vehicles in both the SUV and sedan categoriesas the co. work to increase the ratio of registered vehicles in companies totalsales volume in Japan.

North America and Canada

MMCs active launch of new models was hugely successful. One of those models

was the new Eclipse Spyder, which went on sale in the U.S. market in April 2006.

MMC then by launching the new Outlander into the expanding compact SUVsegment.

In March 2007, the new Lancer was rolled out in the North American market first,before any of MMCs other markets.

The new Outlander and Lancer models have been strong sellers in Canada aswell.

European

The compact Lancer sedan has continued to achieve strong sales in Europeanmarket. The successive roll-out of the Thai-built L200 (Triton) one-ton pickuptruck.

The new Outlander and Pajero (Montero or Shogun in some markets) SUVs inthe second half, also made substantial contributions to sales MMC is targetingEuropean retail sales of 316,000 units. This target is based on sales of astrengthened lineup of SUV models such as the new Outlander and Pajero.


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By expanding sales of an enhanced SUV model lineup, including the new Pajeroand L200 (Triton), MMC aim to strengthen their presence in the Europeanmarket.

Advertising and Communication

Maruti Suzuki

The advertisement part of the Maruti Suzuki is taken care by few Advertising and BrandManagement Company who understand very well what advertising and marketingstrategies has to apply and which is the better medium for them to reach customer andtend them to buy the product, here are the brands and the company which managedthat particular Brand. Company Name: - Hakuhodo Percept: - Maruti Suzuki 800, MarutiSuzuki WagonRLowe Lintas India: - Maruti Suzuki Alto, Maruti Suzuki Alto Vxi, Maruti Suzuki Esteem,Maruti Suzuki Omni, Maruti Suzuki Versa, Maruti SX4.

Medium used for promotion of the product are Primarily National and regionalnewspaper, Magazines, Outdoor hoardings, Television Advertisement, andInternet.


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Advertising and Communication

Mitsubishi

Mitsubishis brand strategy included the importance of distinguishing its brand andmaking it stand out from all the rest.

MOTTO: Spirited Products for Spirited People Reflects Mitsubishis design and performance character. Differentiates Mitsubishi from other Japanese manufacturersMitsubishi aims its brand toward a diverse audience that is young at heart. They

emphasize the importance of making their cars in the image of their distinctcustomers.

Most of their customers are under the age of 35.

Advertising Strategies:Deutschs incorporation is advertising and brand Management Company which handlesthe Mitsubishi brand. Their strategic approach includes emphasizing a vehicle'semotional appeal based on style and design. Although Mitsubishi states that it does notadvertise to a specific demographic group, Deutsch have created their ad campaigns toappeal and build brand recognition among Generation Y, people aged 16-20. They have

successfully completed this task over the past years by including aspects of pop culture,such as rising singers and bands.

Media

Magazine, National newspaper, Outdoor, Network TV, Spot TV, Syndicated TV,Cable TV and Internet.

The major way of attracting consumers through proving their competencies byparticipating in World Championship Rallies.

FIA World Rally Championship FIA Asia Pacific Rally Championship Dakar Rally

FIA World Cup for Cross Country Rallies

FIA International Cup for Cross Country Bajas


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Manufacturing, Distribution Centres and Franchises:-

Maruti Suzuki

Facilities Gurgaon: 3 vehicle assembly plantsManesar: 1 vehicle assembly plantHead Office in New Delhi, IndiaRegional offices: 16

DieselPowertrain

Plant

Suzuki Powertrain India Limited (SPIL), Joint Venture between SuzukiMotor Corporation 70% Equity the rest is with Maruti Suzuki India

Limited.Global hub for Diesel engines and transmissions for Suzuki worldwide.

There are 400 showrooms covering 229 cities and 150 rural format sales outletsin 143 cities.

There are 620 dealer service stations &1900 Maruti Authorized Service Stations.

Over 1190 cities covered by Service Network with Widest product range in India.

Majority of new showrooms & workshops coming from existing dealers Wherein

the Investment goes up to of $ 2.25 Billion by FY 2010. Manesar ($ 625 Million)to increase capacity to 300K cars. Diesel Engine Plant ($ 625 Million) to increasecapacity to 300K units.

Setting up New Engine Plant & Gurgaon facilities up gradation ($ 1,000 Mn).MULs plant is located at Gurgaon in Haryana. It has an installed capacity of350,000 vehicles. However, the company, through productivity improvementInitiatives, would be easily able to produce 500,000 vehicles with its existingfacilities.

MUL manufactured 370,000 cars at its three plants in Gurgaon in FY 2002-03.The total manpower strength of the organization is 4,629, with an average age ofall employees at 36.53 years.


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Manufacturing, Distribution Centres and Franchises:-

MitsubishiMajor Manufacturing Plant

CountriesManufacturing Plant and Distributioncentres Model

Japan Nagoya PlantOkazaki Colt, Colt Plus, Grandis

Mizushima Plant Outlander, Lancer, i, eK Wagon,

Pajero Manufacturing Co., Ltd. Pajero (Montero)

Powertrain Plant Kyoto Engines

U.S.AMitsubishi Motors North America, Inc.(MMNA)

Eclipse, Galant, Endeavor,Eclipse Spyder

Netherlands Netherlands Car B.V. (NedCar) Colt (European model)

Australia Mitsubishi Motors Australia, Ltd. (MMAL) 380

Thailand Mitsubishi Motors (Thailand) Co., Ltd

Triton, Strada, Lancer,

Spacewagon (Grandis)

PhilippinesMitsubishi Motors PhilippinesCorporation (MMPC) Adventure, L300 (Delica)

China Hunan Changfeng Motor Co., Ltd.Pajero, Liebao (old Pajero),Liebao Feiteng (Pajero iO)

Taiwan China Motor Corporation (CMC)Galant, Lancer, Savrin (ChariotGrandis), Zinger

Vietnam Vina Star Motors Corporation Pajero, Joly, Grandis

Descriptive Explanation

Mitsubishi Motors Corporation (referred to herein as MMC or the Company)and its group of forward companies is comprised of MMC and 113 subsidiaries,42 affiliates and one associate (as of September 30, 2004).

The MMC Group is engaged in the development, production and selling of cars,as well as automotive components. MMC is responsible for most of the

development work. In Japan, Mitsubishi sedans, compacts and mini cars are


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produced by MMC, with some sport utility models (including the Pajero) alsobeing produced by Pajero Manufacturing Co., Ltd.

Tokyo Mitsubishi Motor Sales Co. and other Mitsubishi Motors sales companiessell these automobiles in Japan.

Mitsubishi Automotive Engineering Co., Ltd. undertakes some of the

development of MMC automotive products, which are distributed by MitsubishiAutomotive Logistics Co., Ltd. throughout Japan, and Mitsubishi AutomotiveTechno-Service Co., Ltd. is responsible for the inspection and servicing of certainnew Mitsubishi vehicles.

Overseas, in the United States, Mitsubishi vehicles are produced and sold byMitsubishi Motors North America, Inc.

In Europe, Mitsubishi vehicles are produced by Netherlands Car B.V. and sold byMitsubishi Motors Europe B.V.


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Overall Strategies

Maruti SuzukiThe Company has a complete confidence over their network partners and thecapabilities are evident from the fact that majority of companies new showrooms andworkshops are coming from existing dealers.

The overall portfolio consists of 11 basic models & over 150 variants spanning

across all segments of the industry. While maintaining the focus on Compactcars, Maruti's presence in A3 segment is getting stabilised fast by recentlylaunched SX4. Company have sold maximum number of cars in domestic A3segment this year till Oct'07.

The foray is Alternate fuel segment (with LPG powered WagonR and SwiftDiesel) has seen a very encouraging response from customers.

The company had launched 6 new models (including Swift Diesel & WagonRDuo) in this span of time Following a decentralised sales network in the company

has enabled to give tailor made solution to take care of various regionalchallenges.

The whole country has been divided in to 4 zones and further into 16 ROs and 15AOs. And Proposed Investments till 2010 is INR 9000 Crores i.e. INR 90 Billion,Yen 257 Billion (1Yen = 0.35 Rs), $2.25 Billion (1 $ = Rs 40).

As the Indian economy shifts to higher gear, Company believe that maximumreach is a very important factor. In the last year, MUL have also reached to newcustomer segments through the NRI - Dil Se Program. Another segment that wetargeted was the rural segment through the Panchayat scheme.


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Overall Strategies

MitsubishiMMC will continue to actively expand business in markets where Company candemonstrate their MMCs strengths.

MMC currently enjoys extremely strong sales in growing markets, mainly Russiaand the Ukraine. Other markets with strong sales are Central and EasternEurope, the Middle East and Brazil. These markets will collectively drive globaleconomic growth, and are projected to continue to grow for some time yet.

MMC is steadily expanding retail sales in Russia and the Ukraine, underpinnedby a strong reputation in each market. Efforts in these markets will remainfocused on deepening ties with local partners and actively rolling out mainstaymodels such as the Outlander and the new Lancer.

In China, MMC has three priority business are local production, imports offinished vehicles from Japan, and engine production. Efforts are also focused onstepping up the adoption of locally produced, Mitsubishi Motors-brand vehicles,

mainly by increasing investments in local companies.

In India, MMC will actively roll out finished vehicles from Japan and Thailand as ameans of augmenting our model lineup. MMC aim to have the Outlander andother core models successively follow suit.

In Brazil, there is growing demand for flex-fuel vehicles (FFVs) that run ongasoline, ethanol or various combinations of these fuels. In July 2007, the locallyproduced Pajero TR4 Flex FFV went on sale. This model became Brazils firsttrue 4WD FFV. *3


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Vision and core values

Maruti Suzuki

Vision: - To be a Leader in the Indian Automobile Industry through creating Customer

Delight and shareholders Wealth, A Pride of India.

Core Values: - Customer obsession Fast, Flexible and First Mover Innovation and Creativity Networking and partnership

Vision a nd mission

Mitsubishi

To provide high levels of quality and customer satisfaction through distinctivetechnologies and products.

MMC has the strengths to succeed as a global automaker, based on its proventechnological capabilities, excellent personnel and more.

MMC wants to become an automaker that provides the utmost driving pleasureand safety for their valued customers and builds environmentally friendlyautomobiles at the worlds highest levels.

Swot AnalysisMaruti Suzuki

Strengths


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Despite new entrants, MUL has maintained its market leadership in thePassenger car industry, with annual volumes exceeding the combined volumesof all other players put together.

MUL has a 55% market share in the largest selling A & B segments, whichaccount for 85% of cars sold in the Indian market.

Unparalleled sales and service network, which is larger than all the other players

put together

Weakness

Company hasnt yet launch or not even decided to launch the car in C& Dsegment wherein there is good Market for Company Indian like Maruti Suzuki

The Lower Middle class person future buyers of Maruti 800 has stopped and

decided to wait for some while and see which is the better car for them TATAMotors Nano or Maruti 800 Export Market should flourish, the company is loosing good amount of export

revenue

Threats

MUL has been losing market share. There is a high dependence on the small carsegment, where growth has been lower than the mid sized and premium endsegments of the car market.

Technology agreement restricts exports to Suzuki's other markets.

Lack of a diesel variant restricts MULs growth in the second largest B segment,where an estimated 33% of sales are of diesel models.

final msuzuki n mitsu

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