PROJECT REPORT

ON

MARKETING STRATEGY OF MARUTI SUZUKI

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR
OF COMMERCE (HONS.)

SUBMITTED BY
DIKSHA KWATRA
COLLEGE ROLL NO. 12/92091

INTERNAL GUIDE
MR. RAJENER SINGH

SHIVAJI COLLEGE
UNIVERSITY OF DELHI

CERTIFICATE
This is to certify that the project report course code: B.COM (H) entitled
MARKETING STRATERGIES OF MARUTI SUZUKI done by DIKSHA
KWATRA Enrolment No- 12071204068 is an authentic work carried out by her
under guidance and supervision of Mr. RAJENDER SINGH the matter entitled in
this project work has not been submitted earlier for the award of any degree or
diploma to the best of my knowledge and belief.

Signature of the guide

MR. RAJENDER SINGH

Date:

ACKNOWLEDGEMENT
I would like to take this opportunity to express my gratitude towards all the
people who have in various ways, helped in the successful completion of my
project. I must convey my gratitude to MR. RAJENDER SINGH for giving me
the constant source of inspiration and help in preparing the project, correcting my
work and providing encouragement throughout the project. I also thank all my
faculty members for steering me through the tough as well as easy phases of the
project in a result oriented manner with concern attention.

DIKSHA KWATRA
12071204068
B.COM (H) SHIVAJI COLEGE (12/92091)

INDEX

S.No.
1.

PARTICULAR
Chapter-1

2.

3.

Introduction

History
Chapter-2

Research Methodology

Research Objectives

Types of Research
Chapter-3

Page No.

13

18

Data Analysis

4.

Interpretation
Findings

27

5.

Conclusion

28

6.

Bibliography

29

7.

Annexure

30

CHAPTER-1
INTRODUCTION

Introduction about Indian Automobile Industry

The automotive industry is one of the largest industries worldwide and in India as well. The
automotive sector is a vital sector for any developed economy. It drives upstream industries like
steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries like
advertising and marketing, transport and insurance.
The automotive industry can be divided into five sectors: Passenger Cars
Multi- Utility Vehicles (MUVs)
Two- and Three- Vehicles
Commercial Vehicles - Light Commercial Vehicles (LCVs) / Medium and Heavy
Commercial Vehicles (MHCVs)
Tractors
We will be looking at the Passenger car industry in India.
Despite a head start, the passenger car industry in India has not quite matched up to the
performance of its counterparts in other parts of the world. The primary reason has been the allpervasive regulatory atmosphere prevailing till the opening up of the industry in the mid-1990s.
The various layers of legislative Acts sheltered the industry from external competition for a long
time. Moreover, the industry was considered low-priority as cars were thought of as
unaffordable luxury.

The following table presents a comparative view of the extent of motorization in India vis--vis
certain other countries in the world
Country
Developed Countries
U.S.A
United Kingdom
Japan
Germany
Emerging Economies
China
Indonesia
Philippines
South Korea
India

Passenger Cars in Use

per Thousand Persons

Two-Wheelers in Use
per Thousand Persons

478
373
395
508

14
12
115
36

3
14
10
167
5

8
62
14
59
27

Porter Five Forces Model in the Indian Automobile Industry

Threat from New Players: Increasing
Most of the major global players are present in the
Indian Market; a few more are expected to enter.
Financial strength assumes importance as high
investments are required for building capacity.
Access to distribution network is important. Although
important for all segments, having a distribution
network in rural areas is vital for two-wheeler
makers.
Lower tariffs in the post-World Trade Organization era
may expose Indian companies to threat of imports
(however, the threat may be mitigated by non-tariff
barriers that may still exist).

Market Strength of
Suppliers: Low

A large number of
automotive component
suppliers are present in
the Indian automotive
industry.
Automotive
players
are rationalizing their
vendor base to achieve
consistency in quality.

Rivalry within the

Industry: High
There
is
keen
competition in select
segments (such as the
compact and Mid-size
segments in passenger
cars, and the motorcycle
segment
in
twowheelers).
New
multinational
players may enter the
market.

Market Strength of Consumers:

Increasing
Increases
awareness
among
consumers has raised expectations.
Thus, the ability to innovate
(technology being the enabler) is
critical.
Product Differentiation via new
features, improved performance and
after sales support is critical.
Increases competitive intensity has
limited the pricing power of
manufacturers.

Threat from Substitutes:

Low-Medium
With consumer preferences
changing,
inter-product
substitution is taking place
(scooters are being replaced
by motorcycles, and Mini cars
by Compact Mid-size cars.

S.W.O.T Analysis

Strengths

Weakness

Brand Name
Lack of in house R & D
Large Distribution Network
New model introduction limited to only cosmetic changes
Wide product offering at differentDominance
price pointsmainly at lower level only (Swift)
Cheapest Cars in corresponding segments
Encouraging exports
Awarded many awards
Economy with technology

Threats
Rise of Indian middle class and small cities
Many players fighting for the same cake
A booming economy
Entry of new players
Rising exports
Cannibalism

Strengths
Brand Name: Maruti Suzuki has emerged as a strong brand name in recent times. Backed with
the parent company Maruti Suzuki this is recognized as a strong player in worldwide automotive
market, Swift has definitely a value associated with it any individual will like associatd with.
Large Distribution Network: With a strong dealer network of around 3000 dealers al around
the country, Maruti Suzuki has made its presence felt in each and every corner of India.
Wide Product offerings at different price points: Maruti Suzuki has launched various models
in various segments and hence has a very good product mix of offerings as different price points.
Cheapest cars in respective segments: Maruti Suzuki has always followed an aggressive
pricing policy. As a result it has its cars priced at lowest possible rates in respective segments.
Encouraging Exports: Backed by a strong production and a global setup at Gurgaon, Maruti
Suzuki is exporting a lot. An export of worth Rs. 1,325 crores has been achieved in last six
months.
Awarded Many Awards: Maruti Suzuki has been awarded with many awards and recognitions
like The Star Company amongst unlisted companies by Business Standard this year. Its various
models like Swift has achieved many awards, thereby increasing the brand value of the company.

10

Economy with technology: Maruti Suzukis cars have always seen as a company producing cars
blending economy with technology. Swifts initiative of putting a 16-bit microprocessor on board
has proved as one of the major reasons for its success and that too for the lowest price in its
segment.
Weaknesses
Lack of in house R & D: Maruti Suzuki do not have a comprehensive R & D
department.
New model introduction to only cosmetic changes: There is no major design changes
incorporated in Maruti Suzuki products. Only some cosmetic changes have been
made.
Dominance mainly at lower level: Maruti Suzuki dominance in Indian market is only
at its lower level segments like Swift in B-Segment and Accent n C-Segment. It has to
focus on its upper segment models to strengthen its position in Indian car industry.
Opportunities
Rise of Indian middle class and small cities: As a phenomenonal growth is seen in
recent times in Indian middle class and the purchasing power of working class
individuals. Also a rise in small cities across the country has given a great opportunity to
Maruti Suzuki for achieving a higher growth rate in coming times.
A Booming Economy: Indian economy is growing at a rate of on an average of 7% every
year thereby giving an opportunity of larger sales in each and every segment.
Rising exports: With a export of Rs. 1,325 crores in last six months, Maruti Suzuki has a
great opportunity of achieving a export target of Rs. 2,700 crores in this fiscal year.
Threats
Many players fighting for the same cake: There a many major players in the B-Segment and
since the size of market is not expanding rapidly, Maruti Suzuki has a major threat in form of
tough competition.

11

Entry of new players: with coming of Tata Indica and other players planning to come out with
much more models in B-Segment, the competition is just getting hotter.
Cannibalism: to some extent the Zen is affecting Swift because of its price. Thus Maruti Suzuki
has to focus more on its positioning strategy of Zen and Swift.

12

CHAPTER-2
RESEARCH METHODOLOGY

13

RESEARCH METHODOLOGY:

MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information as a specific topic.
In fact, research is an are of scientific investigation. The Advanced Learners Dictionary of
Current English lays down the meaning of research as a careful investigation or inquiry
specially through search for new facts in any branch of knowledge.Redman and Mory
define research as a systematized effort to gain new knowledge. Some people consider
research as movement, a movement from the known to the unknown. It is actually a voyage
of discovery. We all possess the vital instinct of inquisitiveness makes us probe and attain
full and fuller understanding of the unknown. This inquisitiveness is the mother of all
knowledge and the method, which man employs for obtaining the knowledge of whatever
the unknown, can be termed as research. Research is an academic activity and as such the
term should be used in a technical sense. According to Clifford Woody research comprises
defining and redefining problems, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and reaching conclusions;
and at last carefully testing the conclusions to determine whether they fit the formulating
hypothesis. D.Slesinger and M Stephenson in the encyclopedia of Social Sciences define
research as the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art Research is , thus, an original
contribution to the existing stock of knowledge making for its advancement. It is pursuit of
truth with the help of study, observation , comparison and experiment. In short, the search
for knowledge through objective and systematic method of finding solution to a problem is
research. The systematic approach concerning generalization and the formulation of a
theory is also research. As such the term research refers to the systematic method
consisting of enunciating the facts and reaching certain conclusions either in the from of
solutions(s) towards the concerned problem or in certain generalizations for some
theoretical formulation.

DEFINING THE RESEARCH PROBLEM

14

A researcher must find the problem and formulate it so that it becomes susceptible to research.
Like a medical doctor, a researcher must examine all the symptoms (observed by him)
concerning a problem before he can diagnose correctly.
And therefore, I have also defined the research problem i.e. to study consumer trends, behavior,
preferences and level of satisfaction in Airtel communication Ltd.

RESEARCH METHODOLOGY
After defining the research problem the foremost step will be planning for the further
investigation. Preparing the blue print to undertake the research called research design. In other
words,
A research design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure".
Under this chapter methodological step has been adopted in the study of consumer trends,
behavior, preferences and level of satisfaction in Airtel communication Ltd. The research
procedures followed are described as under:

RESEARCH OBJECTIVES
The present study of the marketing strategy of the Maruti Suzuki (Pvt.) Limited revolves around
the following broad objectives:

To study the evolution and growth of the Maruti Suzuki (Pvt.) Limited in the context
of the automobile revolution in India;
To study the growth strategy of the Maruti Suzuki (Pvt.) limited and the marketing
methods followed by it in this regard.
To study the small car revolution in India and the contribution of the Maruti Suzuki
(Pvt.) limited to it.

15

RESEARCH APPROACH
The research approach for the purpose was secondary research to collect the information on the
subject.

RESEARCH INSTRUMENT
I used direct observation, customer data & survey as research instrument.

RESEARCH DESIGN
In this project use exploratory research design and for data collection fill-up the questionnaires
from the customer of mobile, survey of the market and some information collect by interview of
the users of the cellular at West Delhi

AREA OF RESEARCH
West Delhi region

SOURCES OF DATA
RESEARCH DATA
Data is the key activity of marketing research. The design of the data collecting method is
backbone of research design.
Data constitute the foundation of statistical analysis and interpretation. Hence the first step in
statistical work is to obtain data.
Data can be obtained from two important sources, namely:
1. Primary Data
2. Secondary Data

16

PRIMARY DATA:
Primary data are gathered for the specific purpose or for a specific research project, consist of
original information for the fulfillment of project objective. When the data are required for the
particular study can be found neither in the internal record of the enterprises nor in published
sources. In some cases it may become necessary to collect original data. Primary data can be
collected in four ways:1. Observation
2. Focus
3. Survey
4. Experiment

SECONDARY DATA
Secondary data are the data, which already exists somewhere. Secondary data provide starting
point for research and after that the advantage of low cost and ready availability. Secondary data
can be divided into two types:
1. Internal data
2. External data
When researcher uses the data that has already been collected by other data are called secondary
data. Secondary data can be obtained from journals i.e. internal sources report, government
publication and books, professional bodies etc.
Internal data are reports and memos generated within an organization to facilitate its operations.
External data are those specially produce for outside consumption.
Sources from which I have taken the secondary data are as under:
1. Direct observation
2. Airtel website
3. Books for marketing management

17

4. Surveys and customer data & report

In this report,
Sample Size: 65
Sampling Area: West Delhi
Types of Data Used: Primary Data & Secondary Data
Sources of Data: 1. Primary Data- Questionnaire
2. Secondary Data- Magazines, Internet.
Instrument of Research Used: Questionnaire, Consisting of 8 Questions. The questionnaire was
given to the Customers of the Company.
(For QUESTIONNAIRE, See ANNEXURE A).

CHAPTER-3
DATA ANALYSIS &
INTERPRETATION
18

1) Are you aware about the Present boom in Market?

Particular

No. of respondent

Percentage

Yes

45

82%

No

20

18%

Total

65

100%

90%
80%
70%
60%
50%

Yes

No

40%
30%
20%
10%
0%

INTERPRETATION:-As regard to market boom and the respondents awareness level about
this, nearly 82% of the respondents are aware about the market boom in the present economy,
while the rest 18% are not aware about any market boom

19

2) What method do you follow for marketing of your products?

Particulars

No. of Respondents

Percentage

Direct sales

30

28%

Indirect sales

15

18%

Both

20

54%

Total

65

100%

60%

50%

40%
Only Direct Sales Method

Only Indirect Sales Method

Both

30%

20%

10%

0%

INTERPRETATION: - 28% of the respondents follow direct sales method, 18% follow indirect
sales method and 54%of the respondent follow both of the marketing strategies
20

21

3) Do you think Advertisement is an effective method of selling your automobile products?

Particulars

No. of Respondent

Percentage

Yes

40

45%

No

10

18%

Cant Say

15

27

Total

65

100%

45%
40%
35%
30%
25%

Yes

No

Cant Say

20%
15%
10%
5%
0%

INTERPRETATION: - 45% of the respondent agree that advertising is an effective method for
sealing their automobile produts,18% disagreed the statement and 27% cant say

22

4) What type of advertising will be helpful in increasing salability of your auto products?
particulars

No. of Respondent

Percentage

Product specific

30

34%

Company specific

12

22%

Personality specific

17%

Cant say

15

27%

Total

65

100%

35%

30%

25%

20%

Product Specific

Company Specific

Personality Specific

Cant Say

15%

10%

5%

0%

INTERPRETATION:- 34% of the respondent said product specific, 22% said company specify,
17% said personality specific and 27% said cant say about the increasing salability of their auto
products.
5) Do you think that branding helps in the marketing of your automobile products?
Particulars

No. of respondent

Percentage

23

Yes

24

34%

No

17

27%

Cant say

24

39%

Total

65

100%

40%
35%
30%
25%
Yes

No

Cant Say

20%
15%
10%
5%
0%

NTERPRETATION:- 34% of the respondent said yes about the branding helps in the marketing
of the auto products, 27% of the respondent said no and 39% of the respondent said cant say.

24

6) Do you think that auto fairs are effective methods of sale promotion?
Particulars

No. of respondent

Percentage

Yes

45

55%

No

12%

Cant Say

14

33%

Total

65

100%

60%

50%

40%
Yes

No

Cant Say

30%

20%

10%

0%

INTERPRETATION:- 55% of the respondent said yes about the auto fair on effective method of
marketing, 12% of the respondent said no and 33% of the respondent said cant say

25

7) Do you think that Foreign Direct Investment (FDI) should be allowed in the auto mobile
sector in India?

Particulars

No. of respondents

Percentage

Yes

20

34%

No

22

32%

Cant say

23

34%

Total

65

100%

34%

34%

33%
Yes

No

Cant Say

33%

32%

32%

31%

INTERPRETTION:- 34% of the respondents said yes to the allowance of foreign direct
investment in the auto mobile industry in India, 32% of the respondents said no and 34%
of the respondent said cant say.

26

8) Do you follow branding of products as a Marketing strategy?

Particulars
Yes
No
Cant say
Total

No. of Respondent
40
5
20
65%

Percentage
74%
5%
21%
100%

80%
70%
60%
50%
Yes

No

Cant Say

40%
30%
20%
10%
0%

INTERPRETATION:- 74% of the respondent said yes about the branding of the product as
marketing strategy, 5% said no and 21 % of the respondent said cant say

FINDINGS

27

 As regard to market boom and the respondents awareness level about this, nearly
82% of the respondents are aware about the market boom in the present economy,
while the rest 18% are not aware about any market boom.

28% of the respondents follow direct sales method, 18% follow indirect sales method and
54%of the respondent follow both of the marketing strategies

45% of the respondent agree that advertising is an effective method for sealing their
automobile produts,18% disagreed the statement and 27% cant say

34% of the respondent said product specific, 22% said company specify, 17% said
personality specific and 27% said cant say about the increasing salability of their auto
products.

34% of the respondent said yes about the branding helps in the marketing of the auto
products, 27% of the respondent said no and 39% of the respondent said cant say.

55% of the respondent said yes about the auto fair on effective method of marketing, 12%
of the respondent said no and 33% of the respondent said cant say

34% of the respondents said yes to the allowance of foreign direct investment in the auto
mobile industry in India, 32% of the respondents said no and 34% of the respondent said
cant say.

74% of the respondent said yes about the branding of the product as marketing strategy,
5% said no and 21 % of the respondent said cant say

28

CONCLUSION
Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor
Corporation of Japan was Indias largest automobile company in 2005. It operated in the
passenger vehicle market and manufactured affordable and fuel efficient cars for the Indian
masses. Maruti 800 was its flagship small sized car and was the best selling car in India since
decades. In 2005, Suzuki launched their global car Swift in international markets and later in
India. Swift was the first stylish compact car from the stable of Maruti and was a differentiator
from its earlier products. The launch of Swift had brought Maruti in lime-light and various global
international automobile manufacturers announced their plans to boost their investments in India
and launch competing cars. The competition was expected to intensify to grab the burgeoning
customer base.

The Indian car market currently appears to be at a crossroads, where car marketers are attempting
to change customer perceptions of their brands and where specific buying motivations appear to
be replacing generalities. This meanwhile, is quite unlike the west where buyers consider
aesthetics, comfort and safety, not necessarily in that order, before finalising a purchase. Its
smarter to think about emotions and attitudes, if marketers are to do a better job of marrying
what a car offers to the consumers image of the offerings.
The mindset of the Indian consumer is such that he is delighted if he buys a pen a little cheaper
than his neighbour. Things are, however, slowly changing and customers at the upper end of the
market are now ready to pay more for more. I hope that this approach will soon enter the small
car segment, maybe not with the same intensity. Success will largely be determined to the extent
a company can differentiate itself in terms of intangibles that go with a car. Thus, success could
well hinge on the best of bundle of services that a carmaker can provide. Maruti Suzuki grew
from zero to the 500,000 mark and the number One sales spot in India in just five years.

Positioning: The Battle for your mind by Al Ries & Jack Trout

29

BIBLIOGRAPHY

Books & Journals

Marketing Management by Phillip Kotler

Brand positioning by Subroto sengupta

Ahluwalia, I.J. (1996). "India's Opening up to Trade and Investment" in I.J. Ahluwalia,
Rakesh Mohan and Omkar Goswami, Policy Reform in India . Edited by Charles Oman.
Paris: OECD, pp. 17-41

AIAM (1999). Recommendations for Developing Indian Automotive Policy. Association

of Indian Automobile Manufacturers, New Delhi

Newspapers, Journals & Magazines

Business World

The Economist

Economic Times

Autocar Indias

30

ANNEXURE
1. Are you aware about the Present boom in Market?
Yes
No.

2. What method do you follow for marketing of your products?

Only Direct sales Method
Only Indirect Dealership Method
Both
3.

Do you think Advertisement is an effective method of selling your automobile products?

Yes
No
Cant say

4.

What type of advertising will be helpful in increasing salability of your auto products?

Product Specific
Company Specific
Personality oriented
Cant say

31

32

5. Do you think that branding helps in the marketing of your automobile products?
Yes
No
Cant say
6. Do you think that auto fairs are effective methods of sale promotion?
Yes
No
Cant say

7.

Do you think that Foreign Direct Investment (FDI) should be allowed in the auto mobile
sector in India?

Yes
No
Cant say
8. Do you follow branding of products as a Marketing strategy?
Yes
No
Cant say

33