Industry Analysis-Maruti PDF

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Table of Contents Industry overview - Maruti Suzuki – A general overview - a. Prominent Models during 1980’s - 2.1. Maruti Suzuki’s Portfolio - 2.1. Maruti Suzuki’s Vision - 2.1. Maruti Suzuki’s Mission - Other Services of Maruti - 2.2. Maruti Insurance - 2.2. Maruti Finance - 2.2. Maruti Driving sc...

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Table of Contents 1. Industry overview 2. Maruti Suzuki – A general overview a. Prominent Models during 1980’s 2.1.a. Maruti Suzuki’s Portfolio 2.1.b. Maruti Suzuki’s Vision 2.1.c. Maruti Suzuki’s Mission

- 03 - 04 - 04 - 04 - 04 - 05

2.2. Other Services of Maruti

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2.2.a. Maruti Insurance

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2.2.b. Maruti Finance

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2.2.c. Maruti Driving school

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2.2.d. Maruti True value

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2.2.e. Maruti Accessories

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2.2.f. Other major objectives of Maruti Suzuki

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3. Marketing Strategy

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3.1. Product mix

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3.2. Price mix

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3.3. Place mix

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3.4. Promotion mix

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4. Other strategies followed

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4.1. Brand Positioning

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4.2. Advertising strategy

- 11

5. PESTLE Analysis

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5.1. Political factors

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5.2. Economic factors

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5.3. Social factors

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5.4. Technological factors

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5.5. Legal factors

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5.6. Environmental factors

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6. Impact of COVID-19 on Maruti Suzuki

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6.1. Positive impact of COVID-19 on Maruti Suzuki

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7. Marketing Intelligence

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8. Consumer behavior

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9. STP analysis of Maruti Suzuki

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9.1. Segmentation

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9.2. Target

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9.3. Positioning

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10. BCG matrix of Maruti Suzuki

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11. SWOT analysis

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12. A short interview with the Maruti Suzuki official

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1. Industry Overview: Indian Automobile market was the fifthlargest in 2019. India was also the seventh largest manufacturer of Automobiles in 2018.Domestic automobiles production increased at 2.36 per cent CAGR between FY16-20 with 26.36 million vehicles being manufactured in the country in FY20. Overall, domestic automobiles sales increased at 1.29 per cent CAGR between FY16-FY20 with 21.55 million vehicles being sold in FY20.Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94 per cent during FY16FY20. Two wheelers made up 73.9 per cent of the vehicles exported, followed by passenger vehicles at 14.2 per cent, three wheelers at 10.5 per cent and commercial vehicles at 1.3 per cent. Automobile industry is a significant area in India taking care of different livelihoods openings legitimately or by implication. India is the fifth-biggest auto market on the planet with deals of 4.18 million units. It was the seventh-biggest producer of commercial vehicles in 2019. As far as volume,the two-wheeler segment dominatedthe fragment overwhelmed the market with 80.9% of homegrown interest inferable from a rising working class and a youthful populace. Besides, the organizations that are quick to investigate the provincial business sectors will additionally help the development of this part.

2. Maruti Suzuki – A general overview: 3

Maruti Suzuki was originally known as Maruti Udyog limited. It is one of the leading automobile manufacturer of India. It is formed in the year 1981. It is a 56.21% owned subsidiary of the Japanese automotive manufacturer Suzuki Motor Corporation. The Head Quarters is located in New Delhi. It constitutes a 54% market share in the current Indian passenger car market. The first manufacturing unit was setup in Gurugram in 1983. The company begin its operation mainly focused on importing the cars, later moved into manufacturing of passenger cars. The biggest automobile sensation of India, the Maruti 800 was launched in India in the year 1983. In 1984, the Maruti Van also known as Omni was launched. It currently employs a total of 40,000 employees. 2.1.

Prominent Models during 1980s’:

Maruti 800 1000

Maruti Omni

Gypsy King

Maruti

2.1.a. Maruti Suzuki’s Portfolio: Maruti Udyog Limited (MUL),INDIA's best and Asia's biggest vehicle industry was built up in 1981 by a demonstration of parliament.MUL, the primary car organization on the planet to be regarded with an ISO 9000:2000 testament, is an auxiliary of Suzuki Motor Corp (holds a 54% value stake). The Government of India stays a critical value partner (10%).With its initial mover advantage in Indian market; Maruti holds a prevailing Market share regardless of expanding rivalry. 2.1.b. Maruti Suzuki’s Vision: Dreams of any organization are those qualities on which organization works. As the MUL is begun by Governmental activities it will in general be more purchaser arranged and thus financially savvy, however then again Suzuki's cooperation guarantees need of the benefit, yet of the need of greatest benefit. The main route for this current Nora's quandary of choosing chiefs for organization's working vision ,was to amplify benefit and lessening cost by augmenting yield and deals Hence MUL announced its Vision as- "The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth; inevitably become a pride of India". Client Delight1 is ensuring that presentation, after deals 4

administration and client assistance are ideal and past desire. Investor's wealth2 is the prime worry for running business smoothly. MUL knows this and comprehends "client is best", he can change the fortune of any organization, consequently goes organization's image line: COUNT ON US! 2.1.c. Maruti Suzuki’s Mission: Mission is the announcement of an association's motivation, what it need to achieve in the bigger condition and its objectives which are explicit, sensible and inspiring. Missions are portrayed over dreams and dreams request certain targets. The primary goals/Missions of MUL are: 

Modernization of the Indian Automobile Industry.



Developing vehicles quicker and selling them for less.

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Production of eco-friendly vehicles to preserve scant assets.

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Production of huge number of engine vehicles which was essential for monetary development. Market Penetration, Market Development Similarly Product Development and



Diversification. 

Partner relationship the board, Value chain, Value conveyance organization .

2.2.

Other services of Maruti:

2.2.a. Maruti Insurance: It was launched in 2002, Maruti Suzuki provides vehicle insurance to its customers. It provided the service with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. 2.2.b. Maruti Finance: It was also launched in the year 2002, it tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start the venture in car finance.

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2.2.c. Maruti Driving School: Another major service of Maruti suzuki was the launch of the Maruti Driving School as part of its CSR domain. It first launched the service in Delhi and gradually extennded to pan India in this service. This service was launched as service with international standards as the learners will go through a serious of classroom learnings and live simulations in the simulators before getting the actual driving experience in the car so as to ensure a proper driving experience before on-road experience. 2.2.d. Maruti True Value: This service was introduced by Maruti to give its customer a sense of hope for reselling their used cars without any hassle. It also provides the customers a reliable place to buy used cars without the fear of any complications in the used cars. 2.2.e. Maruti Accessories: This is the segment where initially Maruti was not focusing upon. As a result there was a fear of losing a potential market for accessories for their own cars. So they started this idea of Maruti Accessories which provides genuine accessories to its customers in the form of alloy wheels, fog lamps, stereo systems, seat covers, etc.

2.2.f. Other Major Objectives of Maruti Suzuki: 

To uphold and fuel the historical growth of Maruti Suzuki in India.



To revive the progress of Indian automobile sector.



To understand the marketing strategies of Maruti in India, and to use it to the fullest potential.

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Production of fuel-efficient vehicles to conserve the limited fuel resources.

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To create a “WOW” factor in each car it produces.

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To have defined cars for various market segments like premium segment, budget segment, etc.

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To be always a leading manufacturer in the Indian car market.

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To become the most preferred car brand of the Indian customers.

3. To provide a comfortable, stylish and high performance car in the desired price range for the target audience.

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4. Marketing Strategy: Marketing Mix: Combination of factors that can be controlled by a company to influence consumers to purchase its products is commonly called as Marketing Mix. It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market. Thus, the marketing-mix refers to four broad levels of marketing decisions namely – product, price, place and promotion.

4.1.

Product Mix:

Maruti Suzuki India Limited have 53% market share in the Indian market. All the products of Maruti Suzuki India Limited are made keeping the common man in mind. Means the product quality is suited for the every segments of the population either it is urban or rural. It manufactures different types of cars and sells them in the market – 

Omni

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Wagon R

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Swift

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Dzire

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Eeco

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Alto 800

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Alto K10

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Ertiga

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Ciaz

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Baleno

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Baleno RS

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S-cross

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Vitara Brezza

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Ignis

These products are made keeping in the mind of the common man in mind and the features of these cars known for their durability, service, car design and most things which we expect from a basic car. The tertiary product of Maruti is its Service, one prominent feature is that it provides service on-road for the vehicles by a mobile service option. 7

4.2.

Price mix :

The price mix of Maruti was more of penetrative and competitive. It made a proper evaluation of the market by studying the most important fact that how much is a customer able to pay for a car and what are their needs. Since the pricing policy is a very subjective and sensitive issue, special care is taken to ensure that the pricing policy remains reasonable and affordable with compromising on the quality factor.

The Price list for major cars of Maruti:

Car Name Omni Wagon R Swift Dzire Alto 800 Alto K10 Ertiga Celerio Celerio X Ciaz Baleno S-cross Vitara Brezza Ignis

4.3.

Price of cars 2.68 Lakhs to 2.70 Lakhs 4.65 Lakhs to 6.33 Lakhs 5.43 Lakhs to 9.84 Lakhs 6.09 Lakhs to 10.61 Lakhs 2.8 Lakhs to 4.17 Lakhs 3.87 Lakhs to 4.92 Lakhs 9.11 Lakhs to 12.72 Lakhs 4.78 Lakhs to 6.06 Lakhs 5.31 Lakhs to 6.16 Lakhs 9.37 Lakhs to 13.52 Lakhss 6.07 Lakhs to 10.03 Lakhs 10.12 Lakhs to 13.64 Lakhs 8.45 Lakhs to 12.35 Lakhs 5.34 Lakhs to 8.19 Lakhs

Category Minivan Hatchback Hatchback Sedan Hatchback Hatchback Mini MPV Hatchback Hatchback Sedan Hatchback Mini SUV Mini SUV Hatchback

Place Mix:

Maruti Suzuki India Limited has three manufacturing units in India and having combined production capacity of 17, 62,000 vehicles annually. As a result of strong dealer network across India it also has the largest distribution after sales and service. By 2014, Maruti provided dealerships to around 930 dealers in India. As far as the place mix, Maruti has 1,820 sales outlets across 1,471 cities in India but the company aims to increase it to 4,000 outlets by 2020. It also 30 stations for express service on 30 highways across different cities in India. It has 1,280 showrooms across 453 cities in India. Maruti transport cars from manufacturing plant to different dealers point across India through Car carrier (container). Then to avoid the pollution

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effects it started using the trains for transporting the cars for manufacturing factories to the dealer points.

4.4.

Promotion Mix:

Maruti Suzuki uses all types of media to promote its products. The focus is on the road safety measures in all their advertisements to have a social connect with their customers. The promotion mix consist of four major tools:

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

Advertisement



Publicity

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Personal Selling

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Sales Promotion

Advertisements are telecast in the visual media and the print media such as Television, radio, newspaper, magazine, road shows, seminars, and workshops. Publicity had played a vital role in the success of Maruti Suzuki India Limited. The company has used publicity tools – 

News

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Speeches

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Events

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Written Material

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Audio – Visual Materials

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Corporate Identity, etc.

5. Other Strategies followed:

5.1.

Brand Positioning:

It is one of the most important aspect of Brand’s strategy as to have a proper view and visibility among the customers amidst of the competitors. The brand positioning goes synonymous with features like Price comfort decisions, Safety, Mileage. As giving more focus to brand the organisation has changed its focus from sales-oriented organisation to a customer focus organisation. They even changed their tagline from “Count on Us” to “Way of Life”. The previous tag line was based on reliability and affordability, but with the new tagline ”Way of Life”, the brand positioning of being straightforward and value driven has been joined by attributes of sporty and spirit to create more excitement among its customers and it is being updated to the trend.

5.2.

Advertising Strategy:

Advertising is one of the major functions of marketing. It is an important promotional tool to establish the brand name and image among the consumers. The key factors of a good advertisement are that it should have right message and right content and communicated through proper media. It should also reach the targeted consumers in a proper way, so that the 10

targeted consumers will properly be directed in having the proper knowledge about the product and the brand. So, the major aspect of the advertisement is that it should be creative, innovative, distinctive, and unique, so that it can get the desired results. Maruti’s advertising campaign includes TVCs, Radio and print ads, Point of sales, Mobile promotions and online marketing and Outdoor promotions etc. Maruti’s advertising strategy focused both on building up its corporate image and promoting its cars. Its campaigns emphasized different aspects of its cars including fuel efficiency, looks, space etc. One such prominent creative advertisement is that in 2003, Maruti came up with an innovative toy car advertisement. The advertisement depicted a child playing with a toy car. When reprimanded by his father the child replies, “Kya karoon papa petrol khatam hi nahi hota” (what should I do? The petrol never finishes). It is through this kind of simple advertisements that Maruti is getting hold of its customers and created a huge customer base for them.

6. PESTLE Analysis of Maruti Suzuki: PESTLE Analysis of Maruti Suzuki examinations the brand on its business strategies. Maruti Suzuki PESTLE Analysis inspects the different outside components like political, monetary, social, mechanical (PEST) which impacts its business alongside lawful and ecological elements. The PESTLE Analysis features the diverse extraneous situations which sway the matter of the brand. PESTLE examination is a structure which is basic for organizations, for example, Maruti Suzuki, as it assists with understanding business sector elements and improve its business persistently.

6.1.

Political Factors:

The political components in the Maruti Suzuki PESTLE Analysis can be clarified as follows: Political components that influence the deal and income of vehicle organizations like Maruti Suzuki are rules and guidelines framed by the administration. The arrangements which are 11

laid by the legislature for the vehicle division should be trailed by Maruti Suzuki. Tax assessment and work laws, influence the general income of the organization on the off chance that the charges increment, at that point the organization needs to expand its item cost, and there is likewise an expansion in labor laws by the administration. High talented workforce thinks that its simple to find a new line of work in the car part because of these work laws. As indicated by the objective market, the organization makes little vehicles so it can target financially low-salary shoppers. The organization needs to maintain the standards and guidelines while sending out or bringing in its partners from the global market. 6.2.

Economic Factors:

The following are the financial elements in the PESTLE Analysis of Maruti Suzuki: The economy of a nation influences the deals and income of a car organization like Maruti Suzuki. As the economy of India presently, is confronting a destruction so the car segment is confronting a financial emergency. Maruti Suzuki is the main car organization in India yet because of the monetary ruin, its deals diminished by 32.7 percent in August 2019. An expansion in intrigue and swelling rate will bring about a negative effect on the development if the organization. The oil cost is a central point in deciding the offer of the organization, as the oil costs are rising individuals are not ready to purchase the vehicles and accordingly the deal diminishes. The assembling division has developed by around 10% per annum over the most recent couple of years. Be that as it may, because of the monetary stoppage this year, the organization has reduced its assembling. 6.3.

Social Factors:

Following are the social components affecting Maruti Suzuki PESTLE Analysis: Socially Maruti Suzuki has done a great deal for the individuals, Maruti Suzuki has faith in serving improved client necessities, and saw social worth. Maruti has set up numerous government assistance camps, stepped up for the training of the oppressed, has embraced vitality sparing innovations, decreased water wastage, dealt with street security, and so on. Maruti Suzuki has set up its driving schools to guarantee everyone learns the correct methodology and to limit the danger of mishaps. Maruti has consistently satisfied and conveyed the requirements of average folks. Because of the cricket world cup, IPL, and so on, the nation pulls in the travel industry so there is an incredible open door for an organization like Maruti to builds its advertising and business. As Maruti has a solid brand 12

esteem it draws in individuals without any problem. To consider the ne...