Sub Marketing Strategy. Submitted to Prof. Vikram Parekh.

Date 21/ 09/ 2009

 Mohd. Asad Khan. Bhaskar Shukla. Tushar Kamble. Kanchan Sahare. Sachin Surve.

VISION
1984 :- 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 SUZUKI

Subsidiary

of Suzuki Motor Corporation of Japan

India's

largest passenger car company

25 Years of trust 7720 employees in 4 plants

Over

INDIAN AUTOMOBILE INDUSTRY (2007-08)

CURRENT STRATEGIES BY MARUTI

Pricing 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 ANALYSIS

1.

HYUNDAI Positioning of Hyundai Santro

- Family Car to Smart Car for young People - Complete Family Car to Sunshine car.

2. Hyundais Pricing Strategy - Markdown of Prices on Santro Xing

- Non AC Santro at 2.79 Lacs

TATA MOTORS Positioning Of Tata Indica - Indica is positioned as more car per car

1.

2.

Tatas Pricing Strategy - Indica is priced between Rs 2.56 Lacs to 3.88 Lacs

CURRENT THREATS

Perception Change Growing Competition In Compact Cars

Few Maruti models may face extinction

RULE OF 3

Maruti Suzuki is Specialist. As it plays only in Passenger and Commercial cars and related Subsidiaries.
Maruti Insurance (2002) Maruti Finance (2002, 166 cities) Authorized Service Stations. Maruti True Value Maruti Driving Schools (Delhi and Panjab)

COMPETITIVE POSITIONS

Market leader (54%. 2008-09)

Expanding the total market. Defending the market share. Expanding market share.

PORTERS FIVE FORCES

BASIS OF SEGMENTATION
Geographic 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 SPECIALIZATION

Market

Urban
Product A1 A2 A3 Yes Yes

Semi Urban

Rural

Yes Yes Yes

Yes Yes

SUV
C- Class

Yes
Yes Yes Yes

TARGETING :- ON THE BASIS OF INCOME GROUP

Income Group Product A1 A2 RS. 2- 3 lacs. /annum Yes Yes Yes RS. 3-5 lacs. /annum RS. 5 - > 5 lacs. /annum

A3
SUV C- Class Yes Yes

Yes
Yes Yes

POSITIONING
Product A1 Target Customers A consumer who wants car. A consumer who wants Small & spacious car. A consumer who wants more comfort car Lifestyle Oriented consumers. A consumer who wants car for commercial use Benefits Durability and Performance Spaciousness . 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

A2

A3

Design, Style and Luxury. Rigidness, Luxury and Comfort . More spacious car.

SUV

C-Class

BCG MATRIX
Relative market share = Business unit sales this year Leading rival's sales this year

Market growth rate = Individual sales - Individual sales current year pervious year Individual sales pervious year

BCG MATRIX

120%

100%

60%

RELATVE MARKET GROWTH

80%

A1 A2 A3 SUV CC

40%

20%

0% 3 2.5 2 1.5 1 0.5 0

-20%

-40%

-60%

RELATIVE MARKET SHARE

GENERIC STRATEGIES

Overall cost leadership

Low-cost-position relative to a firms peers Manage relationships throughout the entire value chain

Differentiation

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

Differentiation

S c o p e

Industry wide

Cost Leadership

Differentiation

Particular Segment

Cost Focus

Differentiation Focus

Competitive Advantage

AN OFF'S MATRIX
Existing Product
Market Penetration Distribution Expansion of manufacturing facilities

New Product
Product Development New product Splash

Existing Market

New Market

Market Development Exports

Diversification

4PS

Product Price Place Promotion

EXISTING PRODUCT STRATEGY

Portfolio of 12 products Five product lines

Product Line A1 A2 A3 SUV C - Class

Products 800 Alto, Zen ,Wagon R, Swift, A-star D ZiRE, Sx4 Vitara, Gypsy Omani, Versa

Core Product, Formal Product, Augmented Product & Future Product

PRODUCT STRATEGY

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 prodcts)

Formal Product

Quality

Brand Name Packaging

Installation (for bulky products)

Customer complaint management

Augmented Product

Future Product

SUGGESTED PRODUCT STRATEGY

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

MORE FOCUS ON A1, A2 & A3.

EXISTING PRICE STRATEGY

Pricing Objective :- Market share & Cost Leadership Pricing 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 STRATEGY

600 New car sales outlets covering 393 cities. 265 Maruti True Value outlets spread across 166 cities. 2628 Maruti Authorized Service Stations, covering 1220 cities.

Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat

SUGGESTED PLACE STRATEGY

400 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 STRATEGY

o Advertising
o 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

CONT.

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 STRATEGY

Continue with existing Advertising strategy. Look for Alternative Advertising Options.
BTL