Minor Project Report

On
Marketing Strategies of Maruti Suzuki

Submitted in Partial Fulfillment for the Award of the

Degree of BBA 2021-2024 (14, Bold)

Under the Guidance of: Submitted By: Aditi

Ms. Sushila Gupta Singhal
University Enrollment No.
35914701722

Maharaja Agrasen Institute of Management Studies (14, Bold)

(A unit of Maharaja Agrasen Technical Education Society)
Affiliated to GGSIP University; Recognized u/s 2(f) of UGC
Recognized by Bar Council of India; ISO 9001 : 2015 Certified Institution
Maharaja Agrasen Chowk, Sector 22, Rohini, Delhi-110086
 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the minor project titled “ Marketing Strategies on Maruti Suzuki

”is an academic work done by “ Aditi Singhal ”

submitted in the partial fulfillment of the requirement for the award of the degree of BBA at Maharaja

Agrasen Institute of Management Studies, Delhi, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by him/her in the project

has not been submitted earlier.

Signature :

Name of the Guide : Ms. Sushila Gupta

Designation :
 STUDENT DECLARATION

This is to certify that I have completed the Minor Project report titled” marketing Strategies of Maruti

Suzuki” under the guidance of “Ms. Sushila Gupta” in partial fulfillment of the requirement for the

award of Degree of BBA at Maharaja Agrasen Institute of Management Studies, Delhi. This is an

original piece of work & I have not submitted it earlier elsewhere.

Date: Signature:

Place:
Name: Aditi Singhal

University Enrollment No.:

35914701722
 INDEX

S.NO TOPIC PAGE NO. SIGNATURE

1. Chapter1-Introduction 1

1.1 About Automobile Industry 2

1.2 History of Automobile Industry 3

1.3 Advantages of Automobile Industry 4

1.4 Porter’s 5 forces model in the 5

Automobile industry
1.5 Trends in the Indian Passenger Car 6
Industry
1.5 Introduction of Maruti Suzuki 7-8

1.6 market Liberalization 9

2. Chapter2- Marketing Strategies of Maruti 10

Suzuki
2.1.1 Brand Positioning Strategy 11

2.1.2 Promotional Strategy 11

2.1.3 Advertising Strategy 12

2.1.4 Distribution Strategy 12

2.2 Marketing Mix 13-15

2.3 Segmenting, Targeting and 16-17

Positioning

2.4 Porter’s 5 force model 18

2.5 Three generic Strategies 19

2.6 SWOT Analysis 20-21

2.7 PEST Analysis 22

2.8 Competitive Strategies 23

2.9 Key Strategic Initiative 24-26

3. Chapter3- Research Methodology 28

3.1 Introduction 29

3.2 Research Design 30-31

3.3 Research Objective 32

3.4 Nature of the study 32

3.5 Data Processing 32-33

4. Chapter4- Data Analysis and 34-42

Interpretation
5. Chapter5- Findings 43-44

6. Chapter6- Conclusion and Suggestions 45

6.1 Conclusion 46

6.2 Suggestions 47

7. Questionnaire 48-49
 CHAPTER 1
INRODUCTION

1
1.1 ABOUT AUTOMOBILE INDUSTRY

The Indian automobile sector is one of its most vibrant industries. The industry accounts
22per cent of the country’s manufacturing gross domestic product (GDP).The automotive
industry in India is the fourth-largest by production in the world as per 2021 statistics. It
comprises of passenger cars, two-wheeler, three-wheelers and commercial vehicles. As of
2023, India is the third largest automobile market in the world in terms of sales. The
Indian auto market has the potential to dominate the global auto industry.
The contribution of this sector to the National GDP has risen to about 7.1% now from
2.77% in 1992-93. It provides direct and indirect employment to over 19 million people.
The next few years are projected a show solid but cautious growth due to improved
affordability, rising incomes and untapped markets. All these open up an opportunity for
automobile manufactures in India.
In the automobile market in India, Two-wheelers and passenger cars accounted for 77%
and 18% market share respectively during the year 2021-22. Passenger car sales are
dominated by small and midsized cars. Export of the total number of automobiles
increased from 4,134,047 in 2020-21 to 5,617,246 in 2021-22, registering a positive
growth of 35.9%
India aims to double its auto industry size to Rs. 15 lakh crores by end of year 2024.

2
1.2 HISTORY

The first car on Indian roads ran in 1897. Until the 1930s, cars were imported directly,
but in very small numbers.
Government of India and the private sector launched efforts to create an automotive-
component manufacturing industry to supply to the automobile industry. In 1953, an
import substitution program was launched, and the import of fully built-up cars began to
be restricted.
The growth was relatively slow in the 1950s and 1960s due to nationalization and the
license raj which hampered the Indian private sector. Total restrictions for imports of
vehicles were set and after 1970 automotive industry started to grow, but the growth was
mainly driven by tractors, commercial vehicles and scooters. Can were still a major
luxury item. In the 1970s price controls were finally lifted, inserting a competitive
element into the automobile market. By the 1980s, the automobile market was still
dominated by Hindustan and Premier, who sold superannuated products in fairly limited
numbers. During the eighties, a few competitors began to arrive on the scene.
To promote the auto industry the government stared the Delhi Auto Expo which was had
its debut showcasing in 1986. The Auto Expo of 1986 was a window for technology
transfers showing how the Indian Automobile Industry was absorbing new technologies
and promoting indigenous research and development for adapting these technologies for
the rugged Indian conditions.

3
1.3 ADVANTAGE OF AUTOMOBILE INDUSTRY IN INDIA

RISING INVESTMENT
 FDI inflow in the automobile sector stood at $25.40 billion between April 2000-
December 2020.
 The Government of India expects automobile sector to attract $8-10 billion in
local and foreign investments by 2023.

GROWTH
 Rising middle-class income and a huge youth population will result in strong
demand

OPPORTUNITIES
 India could be a leader in shared mobility by 2030, providing opportunity for
electric and autonomous vehicles.
 Focus is shifting to electric vehicles to reduce emissions.
 The electric vehicles industry is likely to create five crore jobs by 2030.

POLICY SUPPORT
 The Automotive Mission Plan 2016-2026 is a mutual initiative by the
Government of India and the Automotive Industry to lay down the roadmap for
development of the industry.

4
 1.4 PORTER’S 5 FORCE MODEL IN THE AUTOMOBILE
INDUSTRY

Bargaining Power of Buyers- Bargaining Power of Threat from Substitutes- Low

Increasing Suppliers- Low
1. There are many alternative
1. Increases awareness among 1. Large number of suppliers types of transportation, such as
consumers has raised 2. Materials widely accessible bicycles, motorcycles, trains,
expectations. 3. Automotive players are etc.
2. Product differentiation via rationalizing their vendor base
new features, improved to achieve consistency in
performance and after sales quality. 2. Substitutes can offer the
support. same convenience
3. Buyers are price sensitive
and their decision is often based 3. Alternative types of
on how much does a vehicle transportation almost always
cost cost less and sometimes are
more environment friendly

Industry Rivalry- High

Threat from New Players- Increasing 1. There is keen competition in
different consumer segments.
1. Most of the major global players are present 2. New multinational players may enter
in the Indian Market; a few more are expected to the market.
enter.
2. Few legal barriers to protect existing
companies from new entrants.
3. New entrant could easily access suppliers and
distributors.

5
1.5 TRENDS IN THE INDIAN PASENGER CAR INDUSTRY

Distribution System:
changing relationship of
Manufacturing
manufactures with dealers
Technologies:
and suppliers
Flexible manufacturing
systems

INDIAN
Structure of Demand:
R Change in industry
Auto Finance:
Better/Cheaper CAR segmentation
schemes

Materials: components:
Regulatory framework:
low weight, Tierisation, Tyres: Radicals,
Deregulation, De-licensing,
synthetic retreading
Removal of ORs, Introduction
composites
of strict emission norms

6
1.5 MARUTI SUZUKI

INTRODUCTION

Maruti Udyog Limited is Indian largest automobile company. It was established in February 1981,
though the actual production commenced in 1983. The company a joint venture with Suzuki of
Japan. It started with Maruti 800, based on the Suzuki Alto Kei car which at that time was the only
modern car available in India. The very first factory of Maruti Suzuki was established in Gurgaon,
Haryana.
The Company Mission :
To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of
different customers, both in domestic and export markets.
The Company Vision :
We must be an internationally competitive company in terms of our products and services. We
must retain our leadership in India and should also aspire to be among the global players.
Their focus is on :
 Building a continuously improving organisation adaptable to quick changes
 Providing value and satisfaction to the customer
 Maximising Shareholder’s value
 Being a responsible corporate citizen
 Aligning and fully involving all our employees, suppliers and dealers to face competition

At Maruti, they have a clear perspective on manpower. They see it a unique resource, in the sense
that optimal productivity of other resources depends largely on the way human resources are
utilised. The basic philosophy of management that underlines the Maruti culture is that all
employees of the company should be moulded into a team which then strives as one, to achieve
commonly shared company goals and objectives. To make this philosophy tenable, the Company
takes several initiatives. Inputs are sought from employees at all levels. They believe that everyone
should contribute to the formulation of company policies, goals and objectives. Secondary, at
Maruti they encourage leadership in the best sense of the word. According to us, a leader is one
who must be impartial, must have the ability to rise above his own subjectively, and most
importantly, must practice what he preaches.
They understand that the process of creating a sense of belonging that all employees can identify
with is a lengthy one. To ensure that this translates into concrete reality, they have taken several
simple but specific and well thought out measures.
Another focus area of the Maruti culture is the maintenance of a smoothly functioning
communication network. Maruti believes that communication channels between labour and
management cannot simply consist of having a labour representative on the Board of the Company.
They have faith in the ability of labour to effectively participate in management and make
constructive suggestions. To encourage this, they ensure that there is a thorough dissemination of
information at all levels, through newsletters or via a letter from the Chief Executive to all
employees. Meetings with the union are held regularly, and programmes being contemplated by the
Company are discussed with the Union.

7
Objectives :
 Modernization of the Indian Automobile industry
 Production of fuel efficient vehicles to conserve scare resources
 Production of large number of motor vehicles, which was necessary for economic growth

Achievements/ recognition:
 The company takes great pride in sharing that customers have rated Maruti Suzuki first
once again in Customer Satisfaction Survey conducted by independent body, J.D.Power
Asia Pacific. It is 9th time in a row.
 Maruti Suzuki wins 'Golden Peacock Eco–Innovation Award'
 Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India For Ninth
Consecutive Year.
 Maruti Suzuki becomes the first Indian car company to export half a million cars

8
1.6 Market Liberalization
In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was India's first
contemporary sedan. By 1991, 65 percent of the components, for all vehicles produced, were
indigenized. After the liberalization of the Indian economy in 1991, Suzuki increased its stake in
Maruti to 50 percent, making the company a 50-50 joint venture with the government of India as
the other stakeholder.
In 2000, Maruti became the first car company in India to launch a call center for internal and
customer services. The new Alto model was released. In 2001, Maruti True Value, selling and
buying used cars was launched. In October of the same year, the Maruti Versa was launched. In
2002, Esteem Diesel was introduced. Two new subsidiaries were also started: Maruti Insurance
Distributor Services and Maruti Insurance Brokers Limited. Suzuki Motor Corporation increased
its stake in Maruti to 54.2 percent.
In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India", to
build two new manufacturing plants, one for vehicles and one for engines. Cleaner cars were also
introduced, with several new models meeting the new Bharat Stage III emission standards. In
February 2012, Maruti Suzuki sold its ten millionth vehicle in India. In July 2014 it had a market
share of more than 45%. In May 2015, the company produced its fifteen millionth vehicle in India,
a Swift Dzire.
On 25 April 2019, Maruti Suzuki announced that it would phase out production of diesel cars by 1
April 2020, when the Bharat Stage VI emission standards come into effect. The new standards
would require a significant investment from the company to upgrade its existing diesel engines to
comply with the more stringent emission standards. Chairman R.C. Bhargava stated, "We have
taken this decision so that in 2022 we are able to meet the corporate average fuel efficiency
(CAFE) norms and a higher share of CNG vehicles will help us comply with the norms. I hope the
union government's policies will help grow the market for CNG vehicles." Diesel cars accounted
for about 23 percent of Maruti Suzuki's annual sales.
The company plans to launch its first electric car in the second half of 2021, the Maruti Suzuki
Wagon R Electric, and a test mule of the same has been spotted several times recently.

9
 CHAPTER 2
MARKETING
STRATEGIES OF
MARUTI SUZUKI

10
2.1 MARKETING STRATEGY OF MARUTI SUZUKI
In earlier days when the market was dominated by only few brands, Maruti Suzuki entered the
Indian Market with different strategy. Due to aggressive competitors today Maruti Suzuki believes
in Innovative marketing Strategies. With the changing needs, wants & requirements of customers
and markets, Maruti Suzuki altering their Brand Positioning, Advertising and Distribution Strategy.

2.1.1 BRAND POSITIONING STRATEGY:

Brand Positioning is the most vital concept in a brand’s image. Brand positioning is also linked
with managing a brand’s meaning. Today several brands of cars are positioning themselves on the
features like Price, Comfort dimensions, Safety Mileage etc. Currently Maruti Suzuki followed a
very effective multi-segmentation strategy to grab the different segments of the market with
different versions of its brands. About brand positioning Mayank Pareek says that, Maruti Suzuki
believe in research and before launching a product the Maruti team does an extensive research on
the needs of the customer. Maruti try to understand the customer’s demography and psychology to
position a brand. Also the company follows the suggestions made by existing customers.

2.1.2 PROMOTIONAL STRATEGY

Every company is it a big or small needs an innovative promotional strategy because promotional
campaigns tend to have a huge effect on the reception of the product. Maruti Suzuki India Ltd. Has
a formidable line-up of vehicles in its stable and has been quite aggressive about promoting each of
its automobile brands. In 2000, Maruti Suzuki cut the prices of few models like Wagon R, Omni
and Maruti 800 because Maruti knew very well that the Indian consumer is very sensitive about
price and this price cut will definitely beneficial for company.
In 2002, to attract customers Maruti Suzuki launched attractive campaign like- Change Your Lifel.
The company also offered vehicle insurance for One rupee only. In this campaign the customers
were asked to write down the chassis and engine number of their vehicles on the entry form and
had to answer the question. In the contest the winners were chosen by a draw of lots and were
entitled to gifts worth Rs.50 million.
In 2004, Maruti introduced the ‘2599’ offer under which by paying an EMI of Rs.2599 for seven
years after a down payment of Rs.40,000, a consumer could buy a Maruti 800. In 2004, Maruti
introduced the ‘Teacher Plus’ scheme in a tie up with SBI. In this scheme the bank offered reduced
rates of interest for teachers who were interested in buying a new car.
Rural India is a fast emerging as a focus area in the company’s economy. Maruti knew that there is
a great potential in rural markets, endorsements of opinion makers takes precedence over an
informed objective judgement. Considering this fact, Maruti Suzuki launched a panchayat scheme
for such opinion makers who covers the village. Sarpanch, doctors and teachers in government
institutions, rural bank officers where is a extra discount is given to make a sell. As part of
customer engaging strategy and to attract potential customers Maruti organized various melas
wherein local flavor is added by organizing traditional social activities like Gramin Mahotsav. As a
part of promotional approach Maruti also promoted Swift and other brands through sponsoring live
programs like Dance India Dance.

11
2.1.3 ADVERTISING STRATEGY
Advertising is one aspect of brand building. Wherever Maruti launched any brand, it supported that
brand with a campaign. Maruti’s advertising campaigns included TVs, Radio and Print ads, Point
of Sales, Mobile promotions, online marketing, Outdoor promotions. Maruti’s advertising strategy
focused both on building up its corporate image and promoting its cars. Maruti’s campaign
emphasized different aspects of its cars, including fuel efficiency, looks, space, etc.
In the late 1990s, Maruti’s advertising campaigns were handled by Lowe India (later known as
Lowe Lintas &Partners, India) and Rediffusion DY&R. While advertising related to Esteem, Zen
and Baleno were handled by Lowe India and the ad campaign of Maruti 800, Gypsy, Omni and
Wagon-R were handled by Rediffusion. With an intension to promote the all brands effectively, in
2000 Maruti decided to appoint Capital Advertising. In 2003, Maruti Suzuki came up with an
innovative advertising that became popular for its simplicity and clear message.

2.1.4 DISTRIBUTION STRATEGY:

Distribution is an important marketing mix. In earlier days the consumers used to book for a car
and wait than a year to actually buy it. Also the concept of Showrooms was non-existent. Even
worse thing was the state of the after sale services. With the objective to change this scenario and
to offer better service to customers, Maruti took initiative. To gain competitive advantage, Maruti
Suzuki developed a unique distribution network. Presently the company has a sales network of 802
centers in 55 towns and cities, and provides services support to customers at 2740 workshops in
over 1335 towns and cities.
The basic objective behind establishing the vast distribution network was to reach the customers
even in remote and deliver the products of the company. The company has formed the Dealer
territories and the concept of competition among these dealers bas been brought about. Periodically
corporate image campaigns in all dealership are carried out. In 2203, to increase the competition
the company implemented a strategy for its dealers to increase their profitability levels. Special
awards were sometimes given by company for sales of special categories. Maruti Suzuki had given
an opportunity to dealers to make more profits from various avenues like used car finance and
insurance services. In 2001, Maruti started initiative known as “Non Stop Maruti Express
Highway”. As apart of this initiative Maruti developed 255 customer service outlets along with 21
highway routes by 2001-02. Also with an intention to provide fast service in less time Maruti had
offered Express service Facility. In the year 2008, Maruti had near about 2,500 rural dealer sales
executives, among the total 15,000 dealer sale executives.

12
2.2 MARKETINGMIX

The basic elements of marketing mix of a company are the a P's (Product, Price, Place and
Promotion). The 4 's of marketing helps in determining the various marketing strategies adopted by
the company.

Product line Products

A1(MIRAI) 800
A2(COMPACT/HATCHBACK) ALTO,SWIFT,RITZ,CELERIO
A3(MID-SIZE) SWIFT DZIRE,SX4
UTILITY VEHICLE GYPSY,GRAND VITARA
MULTI PURPOSE VEHICLE OMNI ECCO

The cars have abo been divided into its various variants depending on the type of fuel used. Some
cars have been rolled out for use with both petrol and diesel With rising prices of petrol,there is a
sharp demand for diesel-run vehicles. Also, Maruti Suzuki has two of its cars with CNG fitting too.
These are vehicles that run on CNG. Examples of CNG run cars are Alto 800, Ecco, Wagon R.
Celerio, Ertiga and SX4. By the year 2015, Maruti Suzuki is planning to launchan electric car by
the name Swift Hybrid, which will be a hatchback car.
PRICE:
The prices of the cars of Maruti Suzuki have generally been set to target the lower middle classand
middle class families in India. Their pricing strategy is based on their continuing vision ofPutting
India on Four Wheel". Their prices are so designed as to enable people to upgrade from 2-whockers
to 4-whoelers and already 4-whecker owners to upgrade to a better 4- wheeler offered by the
company,
In 2007, though the company changed is price strategy as it was being labelled as low-price small
car manufacturer. They launched plans of a new car in the premium car segment, MarutiSuzuki
kizashi to remove this.

PLACE:
This is one part of the marketing mis where Maruti Suzuki has an advantage over all of is
competitors due to their presence in the country for the longest time as compared to is rivals.
they enjoy a well distributed and an extensive network of car sale outlets. exclusive showrooms
authorized service stations, true value outlets. Maruti Suzuki has two state-of-the-art
manufacturing facilities setup in Gargon and Manesar to the south of Delhi The combined
capacity for the two planes is 1.2 million vehicles on an annual bask.
Some numbers showing the extensive network for Maruti Suzuki are:Showrooms and
Car Sale Outlets - 933 covering 668 cities.

13
Authorised Service Stations - 1845 covering 1395 cities
• Dealership Outlets - 110
• True Valse Outlets - 353 covering 208 cities.

Express Service Stations on Highways – 30

The True Value Outs were started with a view to retain the customers under exchange programs
enabling the customers to upgrade their existing car models. Later these outletswere converted
to be a different vertical business unit of Maruti Suzuki Led. to capture themarket for pre owned
cars in India based on the high resale value of Maruti Suzuki cars
giving up to 70 percent return on resale
PROMOTION:
The company has for most of its years of operation targeted the Indian middle class families as
their main consumers. That's why their promotional strategy has always been to create an
emotional connect with the audience. Maruti Suzuki Ltd. has used various media of promotion.
TV - There has been a lot of advertisements through this media as most of the target
audience connects to Maruti Suzuki through its emotional TV commercials company touches
everyone irrespective of their demographics,. one. occupation etc.There is always an advantage
with an connection us made with the audience through audio-visual means as it supposed to leave
an ever lasting impact on the consumers
print Media - The Company has also used newspaper, magazines to promote its productto the
consumers.
Radio - The Company also uses radio as an important media for advertising is product line. is
sponsors certain shows on air, events woe as made listeners etc
Apart from this, Maruti Suzuki Ltd. has also partnered with certain TV shows Ike "India's Got
Talent" and also provides sponsorships to certain famous events to make its presence felt.
The company is also involved in certain CSR activities mostly around its manufacturing unitsto
make people grow with the company. This all helps in creating a visibility and goodwill forthe
company for the non-existing customers and hence, increasing the sales.
There are strategies alliances that Maruti Suzuki Led. has entered into with many banks,
insurance firms to provide its customers with financing and insurance products for making the
process of purchase of car easier for them. Maruti suzuki also provides is customers witha "Auto
Card".
This is a loyalty program introduced by the company to retain the customers and to increase the
company's brand loyalty. Under this program, every now customer gets initial brownie points equal
to 100 points on purchase of a car. Afterwards, on every purchase of Rs. 100 for any Maruti Suzuki
product (including car-servicing), customers earn 3 points. Moreover, theycan earn 3000 points
when they upgrade from one Maruti Suzuki car to another Maruti
14
Suzuki car.
On referrals they can cam up to 1000 ports if the referral gets converted into a sale. TheCompany
also conducts mega camps where they provide AC and pollution checks,
complimentary car wash to its customers to improve customer relations
Maruti Suzuki Ltd. also has an extensive CRM program to manage is relationships with
customers. Apart from all this, the company also has various seasonal campaigns to targetthe
audience like festival times to capture the celebration mood of people and convert it into asales
Festivals like Navratri, Diwali etc, are times when huge discounts or other gifts are offered by
the company.

15
 2.3 SEGMENTING, TARGETING AND POSITIONING

Based on the economic strata the Indian automobile consumer segment is divided in fivecategories
Economy (priced less than 3 lakhs)
Mid Range (priced between 3-5 lakhs)
Luxury(priced between 5-10 lakhs)
Premium(priced between 10-20 lakhs)
Super Premium (priced above 20 lakhs)
The economic segment caters to the need of the rural and the semi urban population
whereas the mid range segment takes care to the needs of all three ie. rural, semi urban andthe urban
population. The luxury segment takes care of the semi urban and the urban
population there are no cars of Maruti Suzuki in the super premium segment so the need ofthe
affluent class is not fulfilled .
TARGETING:
Maruti is segmented also on the basis of income groups present in the country ie. the
people having an income of3 lakhs per annum consider cars of economy range which are Alto and
Omni. People falling in the income range of 3-5 lakhs per annum consider the midrange segment
of Maruti cars which include A-Star, Swift and Ritz. The people with an
income more thin 5 lakhs per annum mainly consider cars in luxury and premium segment ofMaruti
cars such as SX4. Swift Dezire etc.
Maruti faces still competition from Chevrolet Beat, Tata Indica, Fat Punto and Hyundai 110 inthe
automobile sector Maruti provides all the basic features which are required in a car as a by a
customer so it is clearly the market leader in the Indian automobile sector.

POSITIONING
There are various taglines associated with different Maruti cars which signifies the
uniqueness of each car on its own. like the tagline for Alto was 'Let's Go in An Alto, for Swiftit
was "You Are The Fuel" and for SX4 it was "Men Are Back". These taglines completely
associate all these cars.

REPOSITIONING:
Since the demand of the Indian consumer has risen and abo a stiff competition faced by Maruti in
the car segment has forced Maruti to reposition some of is product and also to discontinue some
products which were not making profits. Omni has been given a major facelift in terms of interiors
and exteriors and the new version called Omni Cargo was launched in the market for the people
who wanted a car to travel and abo carry the cargocarried by them.
Wagon- R was perceived as dull boxy car when it was lunched. Then further modificationswere
made in engine to increase performance and a facelift in the form of sporty looking
16
grills on the roof Now it's of the most successful models in Maruti The production of Zen was
stopped as the demand for a product which involved recent technology was required. Hence the new
Zen Estillo was launched into the market.
The most important result of the research of Maruti Suzuki was the innovation of the K-
Series engines. The company's next generation, K- Series engines employ a plethora of state- of-
the-art technologies to deliver on all these fronts. These engines were said to be leaner, meaner
and thinner than the rest of the engines used by the other companies.These engineswere more fuel
efficient and switter than the engines which Maruti Suzuki earlier used

PHASING OUT OF CERTAIN MODELS:

Maruti Suzuki's first sedan Esteem (formerly called Maruti 1000) was phased out slowly dueto
availbility of other cars with better features at the same price from its competitors stable.It was soon
replaced by Swift Dezire to gain back the lost market share.
The production of Baleno was stopped in 2011 to make way for a new model as part of the
company’s strategy to bring new models to the market.

17
2.4 PORTER’S 5 FORCE MODEL IN THE AUTOMOBILE INDUSTRY

THREATS OF NEW ENTRANTS: INCREASING

Although most of the major global players are present in the Indian market, few more areexpected
to enter due to the welcoming government policies.
THREAT OF SUBSTITUTE: LOW TO MEDIUM
Maruti Suzuki faces threat from consumers shitting to hybrid or electric cars. Currently, theelectric
car market in India is dominated by sole player Reva Electric Car Company, However
brands like Tata Motors, Chevrolet and Nissan are also planning to launch their electric car inthe
future.

BARGAINING POWER OF SUPPLIER: LOW

Automakers are the key to the supply chain of the automotive industry. Maruti Suzuki has
manufacturing units where engines are manufactured and parts supplied by first tier suppliers
and second tier suppers are assembled. There are a large number of automobilecomponents
suppliers whose switching cost are very high. Thus reducing the bargaining power of the
suppliers.
COMPETITIVE RIVALRY: HIGH
Competition in certain segments is very high eg small and mid car segment. Brands Iike Hyundai,
Chevrolet ,Tata and Skoda have given huge competition to Maruti Suzuki. In therecent past
Volkswagen, Honda, Ford have also given competition to the premium car segment.
BARGAINING POWER OF CONSUMERS: HIGH
Increase in consumer awareness and increasing competition has forced Maruti to eitherreduce
the prices of its cars or provide extra services to the consumers at the same rate.

18
 2.5 THREE GENERIC STRATEGIES

To cope up with the five competitive forces there are Three Generic Strategies Maruti Suzuki

COST LEADERSHIP

DIFFERENTIATION

FOCUS

To Achieve Cost Leadership: To realize economies of scale capital investment in state-of-

the-art equipment plant s required. Maruti Suzuki state has set up two such
manufacturing facilities in India

 Gurgaon Facility (300 acres) housing the 'K' engine plant

 Manesar Facility (600 acres)
2. Differentiation: Maruti has created a difference in the market by providing the consumerswith
quality fuel efficient cars at affordable prices. It has also differentiated
itself from other companies by providing excellent after sale service at various servicecentres
across the country.
3. Focus: Focus is the moderator between cost leadership and differentiation.
 cost focus; Manit has tried to offer a low price pro to a small and specialized group of
buyers. This has helped Maruti to cut down prices just hours before Tata introduced
Indica.
 Differentiation Focus: Maruti has a niche of premium products available at a
premium price. Maruti Kizashi and Maruti Vitara provides the possibility to
charge a premium price for superior quality.

19
2.6 SWOT ANALYSIS

STRENGHTHS
1. Brand name – Maruti Suzuki have emerged as a strong brand name in recent
times. Backed with the parent company Maruti Suzuki is recognized as a
strong player in worldwide automotive market, swift has definitely a value
associated with it.
2. Large distribution network- With a strong dealer network of around 3000
dealers all around the world, Maruti Suzuki has made its presence felt in each
and every corner of India.
3. Wide product offering at different prices- Maruti Suzuki has launched
various models in various segments and hence has a very good product mix of
offering at different price points.
4. 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.
5. Encouraging exports- Backed by a strong production and a global setup at
Gurgaon, Maruti Suzuki is exporting a lot. An export of worth Rs 1325 crores
has been achieved in last 6 months.
6. Awarded many awards- Maruti Suzuki has been awarded with many awards
and recognitions like “The Star Company” amongst unlisted companies by
business standard. Its various models like swifts has received many awards,
thereby increasing the brand value of the company.
7. Economy with technology- Maruti suzuki’s cars have always seemed as a
company producing cars blending economy with technology swift’s initiative
of putting a 16 bit micro processor on board has proved as one the major
reason for its success and that too the lowest price in this segment.

Weakness
1. Lack of in house R&D- Maruti Suzuki do not have a comprehensive R&D
departmen

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.

20
 2. 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
segment.

Opportunities
1. Rise of Indian middle class and small cities- As a phenomenal growth in seem
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.
2. 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.
3. 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
1. Many players fighting for the same cake- There a many major players in
the segment and since the size of market is not expanding rapidly, Maruti
Suzuki has a major threat in form of tough competition.
2. Entry of new player- 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.
3. 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.

21
2.7 PEST ANALYSIS
In order to understand the conditions under which the Maruti products were launched
in the Indian market, it’s necessary to analyze the factors that influenced its
effectiveness.

Political Conditions
 Maruti Suzuki entered India when l iberalizatio n was at its
peak. As a result, everyone was very open to the idea of foreign
companies collaboration (Maruti India + Suzuki Japan) setting up base in
India.
 The government insisted on Co mpanies using 70% local
content in the manufacture of the cars as they would have generated
tremendous revenue for India. Maruti Suzuki achieved this in a very short
time.
 A positive EXIM policy also has helped Maruti Suzuki to boost its
top line with Exports of Maruti Suzuki products to other countries.

Economic Conditions
 The economic conditions during the launch of Maruti Suzuki were
very relaxed and liberal. Maruti Suzuki was launched when the
country had just opened its doors to liberalization. So there were no strict
norms or bylaws that the company had to adhere by.
 The resources available in India were utilized by the multinationals
(Suzuki),which generated considerable revenue for the government.
 A booming banking sector and a phenomenal growth in Auto Loans
market has made Maruti Suzuki more affordable.

Social Conditions
 A r ise in Middle class and concept of small nuclear families
has propell ed a demand of B- Segment cars. Maruti Suzuki
provides an exact choice for this demand leading to its high growth

Technological Conditions
 Since Maruti Suzuki manufacturers everything from the smallest of screws to
the biggest of machines in its factory it is able to maintain the efficiency of the
machines. Maruti Suzuki therefore manufactures cars under best of
conditions with the best of machinery. As a result, the cars manufactured are
of top quality.

22
 2.8 COMPETITIVE STRATEGIES

Upgrading Manufacturing Facilities

 To maintain its market leadership, Maruti focused on continuous expansion of
capacity and upgrading of manufacturing facilities
 The company set a target of improving productivity by 50% and reducing cost
per vehicle by 30%.
 By efficiency utilizing production capacities, Maruti was able to decrease
production cost per unit, and thereby increase profit
 In 2008. Maruti increased its manufacturing capacity from 8,00,000 to one
million units annually in its Gurgaon and manesar plants.

Large product Portfolio

 With increasing competition, Maruti decided to cater to all segments of the
Indian car market.
 Maruti launched Alto in 2000. In 2001, it launched a new model Maruti versa.
In 2003, new Zen was launched followed by new Esteem in 2004.
 In January 2005, Maruti launched the BS lll variant of Zen, WagonR and
Baleno. On May 25, 2005, Maruti launched its hatchback model Swift
followed by Zen Estillo in November 2006.
 In the fiscal year 2006-07, Maruti entered into the diesel and LPG car market.
It launched the new WagonR Duo, Zen Estilo and Swift Diesel. In 2007,
Maruti launched two new cars- luxury sedan SX4 and grand Vitara.

Expanding Business Portfolio

Expanding its business portfolio by starting new but related business
 Maruti Driving School
 Maruti True value
 Maruti Finance
 Maruti Insurance

23
 2.9 KEY STRATEGIC INITIATIVE BY MARUTI

A. Turnaround Strategies

In wake of diminishing profits and market share Maruti initiated strategic responses with
India’s liberalization process:
Cost leadership TO Cost Focus
This can be observed from mission statement of Maruti
1984: Fuel efficient vehicle with latest technology
1987: Leader in domestic market and be among global players in the overseas market
1997: Creating customer delight and shareholders wealth

B. Current Strategies
1. Pricing Strategy- Catering to all segments
 Caters to all segments and has a product offering at all price points.
 Their pricing strategy is to provide an option to every customer looking for up gradation
in his car.

2. Offering one stop to customers or Creating different revenue streams

 Maruti Finance
 Maruti insurance
 Maruti driving school
 Maruti True Value
 N2N

3. Repositioning of Maruti products

Whenever Maruti’s brand grew old or its sales started dipping, it made the following efforts in the
same field:
 Omni – interiors and exteriors , omni cargo and CNG Omni
 Versa- slashed prices by decreasing engine power
 Esteem – new look to boost sale
 Baleno – price slash from 1999 (7,2 lac) to 2003 (5.46) WagonR – modifications in
engine and sporty look
 Zen – modified 4 times and special editions
 Maruti 800- introduced modified accessories
4. Customer Centric Approach
 Maruti has successful shed off the public sector laid back attitude image and has
inculcated to customer friendly approach in its organization culture.
 Maruti employes and dealers are answerable to even a single complains
 There are instances of cancellation of dealership based on customer feedback
 Changed there showroom layout
 Trained sales executives
 Customer complain handling cell under CRM Department

24
  Loyalty programs
5. Committed to Motorizing India
 Making things simple for Indian customers to a upgrade from two- wheelers to a car
 Partnership with SBI and it associate banks took organized finance to small towns
people to buy Maruti cars example 2599 scheme
 Free maintenance with little extra EMI
6. Disinvestment and IPO of Maruti Udyog limited
 Biggest privatization in india till date worth of rupees 2,424 crore, on the investment
of Rs.66 crore.
 The best part of the deal is the Rs. 1000 crore control premium the government
extract from SM.
 No interference of Ministers and Bureaucrats
 Suzuki became the decision maker of MUL
 Two Mega investment plans. Eg. A new car plant and an engine and transmission
manufacturing plans
 Suzuki proposed two-wheelers facility in India, 51% Stake of Maruti
 IPO

7. Realization of Importance of Vehicle Maintenance Service Market

 Old days simple three-box flowchart- Vendor, Factory & Dealer
 New scheme began in 1999 revolves around the total lifetime value of the car
 Only catering approximately 20,000 vehicles through its service stations everyday
 Conducting free service workshops to encourage consumers to come to their
service stations
 Increased the service stations to 1567 across 1036 cities
 Every regional office is having separate service & maintenance department
8. Playing on Cost Leadership
 Low cost provider of Car
 Lowest Car on road is Maruti 800
 Maruti achieves this through continuous improvement in operational efficiency and
productivity
 50% improvement in productivity and 30% reduction in cost in three years
 Impressive Sales and profits via productivity and cost cuttings
 Increased focus on vendor management
 Encouraging vendors to develop R&D
 Applying IT vendors to develop R&D
 Vehicle tracking System
 eNagare System

25
C. Phasing out Zen in 2007
 Alto launched to take over Maruti 800 in future
 Phasing out of Maruti 800 faced lots of resistance from dealers all over
 Another reason not phasing out was the fear of brand shift of customers to
competitors product
 Sift launched in May, 2005 to phase out Zen, since it had already two modifications
 Major reason behind this was cannibalization of Wagon R and Swift due to
overlapping of price band
 Rational decisions to kill a product before it starts facing the decline stage in PLC

2. Maruti plans for a Big Diesel Foray

3. Maruti plans for a new engine and transmission plant
4. India as export hub for Maruti
5. Maruti Emerging as R&D Hub for Suzuki Motors Corporation
 Low cost in India for infrastructure and R&D
 India growing as a export hub
 Suzuki’s investment in India

26
 2.10 CONSUMER BEHAVIOUR

For any company it is important to know about the needs and requirements of their customers, It
has been found that the most searched car in India is Maruti suzuki and it sells more than half the
cars in India Maruti Suzuki ad enjoys 70 percent repeat buyer which in tunewith is claim offering
consumer friendly.
There are several aspects that consumer book at with varying degree:
1. Price : People look for affordable price. They have their budget that they can spend on a car.For
middle class and lower middle class Indian price is a very important factor.

2. Mileage: Consumers look at mileage. In this scenario of riing petrol prices mileage important
characteristic. Fuel efficiency of car is demanded by all categories of buyer

3. Brand Recognition and Association: Consumer Ike established brands. it ones then a senseof
security.

4. Durability and Warranty :_A car is not purchased very often . Customers look for durability
5. Appearance and Style: Carb status symbol or many customer , Be mentor importance on the
appearance and style. Relatievely young customers look more for style than old ones.

6. Reliability and Trust:. A brand should be associated with trust and reliably, only then
wild be positioned in the mind of the people for a longer want and can succeed as the market
7. Availability :With the explosion choices, products should be easily available otherwise prospective
customers will shift to the competitors. Ease of avaibility car abo bring competitors customers to
our brand if they fail in this category.
8. Resale Value: People like to change cars after certain number of years which depends on wear
purchases often accompanied by exchanges of old car. Hence a high resale values is whatcustomers
look for and Maruti provides this.

27
 CHAPTER 3
RESEARCH
METHODOLOGY

28
 3.1 INTRODUCTION
Every business works on an explicit or implicit ‘business plan’, which comprises of both the
corporate and competitive strategies of the firm. To implement the above two strategies, there
are functional areas, which have their own strategies and plan. The major functional area of
business are marketing, production, finance and human resource management.
Research is a process in which researchers seek to determine the end result of an issue so that
the solution can be used to guide future actions. "A meticulous inquiry or enquiry, notably
through search for new facts in a domain of knowledge," according to the definition of research.
Knowledge of research not only aids in the examination of accessible data, but it also aids in
other ways. Define and re-define problems, formulate hypotheses or recommended solutions,
gather, organize, and evaluate evidence, make inferences, and reach conclusions are all part of
research. According to Clifford Woody “Research comprises defining and redefining problems,
formulating hypotheses or suggesting solutions, collecting, organizing and evaluating data,
making deducting and reaching to conclusion and at last carefully testing conclusions to
determine whether they fit the formulated hypotheses.”
Marketing research plays an important role in deciding on the market strategy by providing
information necessary for choosing an appropriate strategy. This could be termed as marketing
research at the strategic level of marketing.
Clearly marketing research is a search for answers to some questions, which if answered would
lead the company to make critical marketing decisions on a strategic and tactical level.
It was a study conducted by me on the topic “Marketing Strategies of Maruti Suzuki”.
In this chapter, the term methodology is used in a general sense to refer to both theoretical and
practical aspects of the conduct of the research. Every project report is based on certain
methodology, which is a way to systematically solve the problem or attain its objectives. It is
very important guideline and to lead to completion of any project work through observation,
data collection and data analysis.

29
 3.2 RESEARCH DESIGN
A research design is a broad plan that states objectives of research project and provides the
guidelines on what has to be done to apprehend those objectives. It is, in other words, a master
plan for executing a research project.
The most common aspects involved in research design include at least followings:
Statement of research objectives i.e.
 why the research project is to be conducted.
 Type of data needed.
 Definition of population ad sampling procedures to be followed.
 Methods, ways and procedures used for collection of data.
 Data analysis tools or methods used to analyse data.

Research designs are categorized broadly into two categories exploratory research design and
conclusive research design. Conclusive research design is further divided into descriptive and
causal/ experimental research design. The suitability of a research design for a specific research
depends on nature of the problem, method of data collection and analysis. The details of types
of research designs are as follows:

 EXPLORATORY RESEARCH DESIGN

Exploratory research is when the researcher is seeking insights into the general nature of the
problem and possible decision alternatives for which he uses highly flexible, unstructured, and
qualitative methods. Exploratory research design is characterized by flexibility to gain insights
and develop hypotheses. It does not follow a planned questionnaire or sampling. It is based on
literature survey, experimental survey, and analysis of selected cases. Unstructured interviews
are used to offer respondents a great deal of freedom. No research project is purely and solely
based on this design. It is used as complementary design to descriptive design and causal design.
 CONCLUSIVE RESEARCH DESIGN
Conclusive research design, as the name implies, is applied to generate findings that are
practically useful in reaching conclusions or decision-making. In this type of studies research
objectives and data requirements need to be clearly defined. Findings of conclusive studies
usually have specific uses. Conclusive research design provides a way to verify and quantify
findings of exploratory studies. It usually involves application of quantitative methods of data
collection and data analysis. Moreover, conclusive studies tend to be deductive in nature and
research objectives in these types of studies are achieved by testing hypotheses. Conclusive
30
research design is further categorized into descriptive research design and Causal or Experital
Research Design.

 DESCRIPTIVE RESEARCH DESIGN

Descriptive research design is typically concerned with describing problem and its solution. Itis
more specific and purposive study. Before rigorous attempts are made for descriptive study,the
well-defined problem must be on hand. Descriptive study rests on one or more hypotheses.
Descriptive research requires clear specification of who, why, what, when, where, and how of
the research. Descriptive design is directed to answer these problems.

 CAUSAL OR EXPERIMENTAL RESEARCH DESIGN

Causal research design deals with determining cause and effect relationship. It is typically in
form of experiment. In causal research design, attempt is made to measure impact of
manipulation on independent variables (like price, products, advertising and selling efforts or
marketing strategies in general) on dependent variables (like sales volume, profits, and brand
image and brand loyalty). It has more practical value in resolving marketing problems.
Test marketing is the most suitable example of experimental marketing in which the independent
variable like price, product, promotional efforts, etc., are manipulated (changed) to measure its
impact on the dependent variables, such as sales, profits, brand loyalty,competitive strengths
product differentiation and so on.

The survey research was used in this project, because consumer’s feedback was necessary for
obtaining the data.

31
 3.3 RESEARCH OBJECTIVE:
The research objective is to determine “Marketing Strategies of Maruti Suzuki” objective is
also called research problem. Broadly these two terms can be used interchangeably.
Whatever the terminology used the research should end up with useful information that enables
marketing manager to make a better decision.

3.4 NATURE OF THE STUDY:

The study is Descriptive and Analytical in nature

3.5 DATA PROCESSING

TYPES OF DATA: There are 2 types of data available to a us. They are primary data and
secondary data.
PRIMARY DATA: The primary data are collected through questionnaires/ survey prepared by
me. Primary data collection methods can be divided into two categories: Qualitative and
Quantitative. The main differences between qualitative and quantitative research methods can
be summarized in the following points:
Firstly, the concepts in quantitative research methods are usually expressed in the forms of
variables, while the concepts in qualitative research methods are expressed in motives and
generalizations.
Secondly, quantitative research methods and measures are usually universal, like formulas for
finding mean, median and mode for a set of data, whereas, in qualitative research each researchis
approached individually, and individual measures are developed to interpret the primary data
considering the unique characteristics of the research.
Thirdly, data in quantitative research appears in the forms of numbers and specific
measurements and in qualitative research data can be in forms of words, images, transcripts, etc.
Fourthly, research findings in quantitative research can be illustrated in the forms of tables,
graphs and pie-charts, whereas research findings in qualitative studies is usually presented in
analysis by only using words.
A questionnaire of about 13 questions was made and it was given to the dealers to fill it up for
our research. The research was a kind of conclusive research as it helps in the testing of
hypothesis.

32
SECONDARY DATA: The secondary data is the organization profile and was collected from
the website, journals, and magazines.
The secondary data is collected from various internet sites like
https://www.scribd.com/document/127793075/Marketing-Strategy-of-Maruti-Suzuki,
https://startuptalky.com/maruti-suzuki-case-study-india/, https://www.ibef.org/industry/india-
automobiles, https://heavyindustries.gov.in/UserView/index?mid=1319 and many more.

33
CHAPTER 4
DATA ANALYSIS
AND
INTERPRETATION

34
DATA ANALYSIS

Q1 Are you aware about the present boom in market?

Yes 82%
No 18%

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 rest18% ar e no t awar e a bo ut any mar ket bo o m. T he awar e ne s s
le ve l is hig h a mo ng t he middle and the upper middle class, and
particularly among the business class and the traders. One of the
interesting finding of the study was that many respondents confuse between
inflation and market growth. Respondents belonging to lower middle and
middlec l a s s c o n f u s e w h e t h e r p r i c e r i s e h a s a n y t h i n g to do
w i t h t h e a u t o m o b i l e i n d u s t r y scenario. About the reasons, 65% of
the respondents who are aware about the market boom feel that it reflects
the resilience of the Indian economy and reflects a true picture of it. This
they attribute to the persistent increase in Sensex and continuing economic
growth rate which is somehow near the double digit mark. 27% of the
respondents who are aware about the market boom feel that this is a
temporary situation which is likely to recede.

35
Q2. What method do you follow for marketing of your products

Direct Sales Method 28%

Indirect sales Method 18%
Both 54%

Q3 Do you think Advertisement is an effective method of selling your automobile

products?
( i) Yes
( i i) No
(iii) Can’t sa y

Yes 28%
No 18%
Can’t Say 54%

36
Q4 What type of advertising will be helpful in increasing saleability of your auto
products?

Product Specific 34%

Company Specific 22%
Personality oriented 17%
Can’t say 27%

Q5 Do you think that auto fairs are effective methods of sale promotion?

Yes 55%
No 12%
Can’t Say 33%

37
Q6 Do you think that branding helps in the marketing of your automobile products?

Yes 28%
No 18%
Can’t Say 54%

Those who believe that brand extension is necessary as part of its marketing
strategyholds the view that when a known brand extends into a product category that
involvesso p hist ic a t ed and s t at e- of- t he-
ar t t echno lo g y, co nsu me rs fa ce u ncer t a int y a nd perceive a financial risk
when considering the extension for purchase. Ther eco g nit io n t hat br a nd s ar e
a po wer fu l yet under ut i l iz ed a s set s is w hy t r ade mar k licensing has
become a popular marketing strategy. Because many brand owners don'thave the
resources to pursue every viable business opportunity, they utilize trademark licensing
to enter new markets beyond their core competencies.

38
Q7 Do you think that auto fairs are effective methods of sale promotion?

Yes 55%
No 12%
Can’t Say 33%

Q8 Do you think that Foreign Direct Investment (FDI ) should be allowed in the
automobile sector in India?

Yes 34%
No 32%
Can’t Say 34%

39
Q9 Future of the automobile industry in India.

Yes 75%
No 12%
Can’t Say 13%

Q10 Major Weakness of Maruti Suzuki’s Marketing strategy.

Branding 14%
Publicity 9%
Infrastructure Assessment and Development 77%

40
Q11 Maruti Suzuki has a future growth. You opinion

Maruti Suzuki is gradually spreading its wings and being a very big 14%
company has the capacity to absorb short term losses, hence has a very
good prospect for the future market in India
Its future is like any other private automobile companies in India 9%
Infrastructure Assessment and Development 77%

Q12 Which is the major factor to increase the sale of Maruti Suzuki products?

Brand 17%
Demand-Supply factors 35%
Quality 23%
Other factors 25%

41
Q13 Do you see the probability of a separation between Maruti and Suzuki in future?

Yes 18%
No 74%
Can’t say 8%

42
CHAPTER 5
FINDINGS

43
5.1 FINDINGS

 Maruti Suzuki had surely achieved great success.

 Maruti Suzuki’s goodwill and brand loyalty are very strong and enthralling.

 Maruti Suzuki most popular hatchback car Alto is one is the most demanded cars in
India to date.

 Maruti Suzuki will play a very important role in making cars assessable and available to
many Indians in the future as well. Its aggressive management and promotion strategies
will cater to huge demand in the Indian automobile market.

 Maruti Suzuki provide cars with excellent features at an Indian budget-friendly price

 After the success of the financials, procurement and human resource deployment, Maruti
is considering expanding its Oracle footprint.

44
 CHAPTER 6
CONCLUSION
AND
SUGGESTIONS

45
6.1 COCLUSION

Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki
Motor Corporation of Japan was India’s 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 mar k e
t s a nd la t er in I nd ia . The launch of swift had brought Maruti inlimelight and various
global international automobile manufacturers Swift was the first stylishcompact car from the
stable of Maruti and was a differentiator from its earlier products. 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. “It’s smarter to think about emotions and attitudes, if
marketers are to do a better job of marrying what a car offers to the consumer’s image
of the offerings.

The mindset of the Indian consumer is such that he is delighted if he buys a pen a litt
le cheaper than his neighbor. 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 interms of
intangibles that go with a car”. Thus, success Could well hinge on the best of bundle of
services that a car maker can provide. Maruti Suzuki grewfrom zero to the 5,00,000 mark and
the number one sales spot in India in just five years. Looking at the present scenario it can be
said that though there is lot of competition in the autoworld Maruti Suzuki is picking up well.

46
6.2 SUGGESTIONS

 Operational attributes.
 G lo ba l iz a t io n is yet a no t her o ppo r t unit y, if fo l lo wed e ffe c t ive l y & p
romptly.
 Brand Image.
 Customer Specific Details.
 An excellent service & support infrastructure.
 Ability to provide the cutting edge technology at best-value-for-money
 Strong customer relationships
 World Class Quality standards maintained for PPP (People, Processes &Performance).
Alliance with global technology leaders.
 The message should to the customers be sent in these components only to have the
maximum benefit from the advertisement.
 With the fast growing economy the pricing strategy needs to be tackled with care as it
can decide upon long term decisions of the company

47
Questionnaire

Q1 Are you aware about the present boom in market?

(i) Yes
(ii) No

Q2 What method do you follow for marketing of your products?

(i) Direct Sales Method
(ii) Indirect Sales Method
(iii) Both
Q3 Do you think Advertisement is an effective method of selling your automobile products?
(i) Yes
(ii) No
(iii) Can’t Say
Q4 What type of advertising will be helpful in increasing saleability of your auto products?
(i) Product Specific
(ii) Company Specific
(iii) Personality oriented
(iv) Can’t say
Q5 Do you think that auto fairs are effective methods of sale promotion?
(i) Yes
(ii) No
(iii) Can’t say
Q6 Do you think that branding helps in the marketing of your automobile products?
(i) Yes
(ii) No
(iii) Can’t say
Q7 Do you think that auto fairs are effective methods of sale promotion?
(i) Yes
(ii) No
(iii) Can’t say
Q8 Do you think that Foreign Direct Investment (FDI ) should be allowed in the automobile
sector in India?
(i) Yes\
(ii) No
(iii) Can’t say
Q9 Future of the automobile industry in India.
(i) Yes
(ii) No
(iii) Can’t say
Q10 Major Weakness of Maruti Suzuki’s Marketing strategy.
(i) Branding
(ii) Publicity
(iii) Infrastructure Assessment and Development

48
 Q11 Maruti Suzuki has a future growth. You opinion
(i) Maruti Suzuki is gradually spreading its wings and being a very big company has the
capacity to absorb short term losses, hence has a very good person prospect for the
future market in India.
(ii) Its future is like any other private automobile companies in India
(iii) Can’t say
Q12 Which is the major factor to increase the sale of Maruti Suzuki products?
(i) Brand
(ii) Demand- supply factors
(iii) Quality
(iv) Other factors
Q13 Do you see the probability of a separation between Maruti and Suzuki in future?
(i) Yes
(ii) No
(iii) Can’t say

49