Maruti Udyog Ltd.

Wagon ROmni

Maruti 800

Swift

SX4Estilo

Zen

Contents

• Introduction • Products and their competitors. • Decline and striking back in the

market.• Promotional Offers and advertising

campaigns.• Sales.• Conclusion.

• Maruti Udyog limited established in 1981, though actual production commenced in 1983.

• Competition to Hindustan motors by launching Maruti 800 in 1984.

Introduction

Collaboration with Suzuki• Suzuki motor corporation run for

its volume and it has just 4-5% growth in Japanese market.

• Suzuki has never been no.1 player in Japan

• In India Maruti’s growth curve is steeper in sales promotion

• Suzuki decided to go out from Japan and to be no.1 in the new market.

• On 17th September, Maruti Udyog was renamed to Maruti Suzuki India Limited.

• Maruti Suzuki limited is a board managed company.

• It is subsidiary of Suzuki Motor Corporation of Japan.

Maruti Suzuki India Limited

• Chairman- Mr.R.C Bhargava

• CEO-Shinzo Nakanishi Mission- To provide maximum value for

money to their customers through continuous improvement of products and services.

Vision- Creating customer delight and shareholders wealth .

Products and their competitors

• Offers 14 models of cars such as Maruti 800, Omni, Zen, Alto, Wagon R, Gypsy, Esteem, Baleno, Versa, Swift, SX4 etc.

• In spite of all these models, Baleno failed to meet the customer expectations.

• Company planned for product upgrades and new product development-to reduce its excessive dependence on Maruti-800.

• 'Versa' met with a disastrous response from the Indian consumer.

• Three compact car models - Alto, WagonR, and Zen -- competing with Hyundai Santro, Tata Indica, and Fiat Palio.

Decline in market share

• Even though MUL had slashed prices of certain models on a couple of occasions.

• Decline in market share of Maruti over the years from 1999 to 2004.

Striking back……

Promotional offers • Maruti focused its promotions

strategy on targeting two-wheeler owners, by entering new domains and reaching out potential customers through its 'True Value‘.

• In 2003,to attract customers Maruti launched novel offers like "Change Your Life" campaign and also offered vehicle insurance for just ‘Rupee One only'

Television campaign

• In 2003, came out with a toy car advertisement that became popular for its simplicity.

• 'Kya karoon papa petrol khatam hi nahin hota‘.

Sales

• The sales figure for the year 1993 reached up to 1,96,820 vehicles.

• The company reached a total production of one million vehicles in March 1994.

• “The first Indian Company to cross this milestone”.

• Maruti Suzuki, has sold 7,64,842 vehicles in 2007-08, an increase of 13.3% compared to 6,74,924 vehicles sold in 2006-07. This includes the company’s exports.

• Their sales in the domestic market during march 2008 is 64,421 units.

• Maruti has more than 5 million satisfied customers in India and is currently having a share of around 54%in the domestic passenger car market where most major international automobile manufacturers are present.

• Maruti has a network of 391 sales outlets across 230 cities all over India.

• The service network covers 1,113 towns and cities, bolstered by 2,142 authorized service outlets.

Conclusion

• The company's change in strategy and emphasis on developing effective marketing communications began to yield results.

• Wagon R and Zen were ranked first and third in the premium compact segment.

• Maruti ranked highest in customer satisfaction with after-sales service.

True value Driving school Authorized service stationInsuranceGenuine accessories

Future Plan• Fourth assembly plant will be

scaled up to produce 3,00,000 cars a year by 2010.

• Maruti’s new product:" Splash”

• Maruti's consistent performance in the study over the past several years has resulted in a steady increase in the percentage of its customers who say they intend to remain loyal to the brand.

Queries!!!

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