Maruti Suzuki India Ltd. JBS 2010-12 1
It is a leading four-wheeler automobile
manufacturer in South Asia.
Maruti Suzuki India Limited, a subsidiary of
Suzuki Motor Corporation of Japan, has been
the leader of the Indian car market for over two
decades.
54.21% share of Maruti Suzuki India ltd. has
owns by Suzuki motors and 45.79% are with
Indian financial institutions and public.
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Maruti Suzuki was incorporated as Maruti Udyog Limited on
24th of February 1981 under the provision of Indian companies
Act 1956.
Around 1970, Sanjay Gandhi, the Prime Minister of India,
Indira Gandhi’s younger son, envisioned the manufacture of an
indigenous, cost effective, low maintenance compact car for the
Indian middle class.
The name of the car was chosen as “Maruti”, after a Hindu
deity named Maruti.
On 2nd October 1982 Maruti Udyog ltd and Suzuki motor
corporation (SMC) japan singed the license and joint venture
agreement.
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Maruti Suzuki India Ltd. JBS 2010-12 4
It’s manufacturing facilities are located at two facilities
Gurgaon and Manesar south of New Delhi. Manesar and
Gurgaon facilities have a combined capability to produce
over 700,000 units annually.
More than half the cars sold in India are Maruti Suzuki
cars. Due to the large number of Maruti 800s sold in the
Indian market, the term "Maruti" is commonly used to
refer to this compact car model.
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The Automobile industry in India is the seventh
largest in the world with an annual production of over
2.6 million units in 2009.
As per statistics launched by Society of Indian
Automobile Manufacturers (SIAM), the passenger car
transactions in domestic market have surged to
145,905 units in January 2010 against the 2009 sales
of 110,300 units.
Indirectly refers to the 32.28% growth in the domestic
car sales.
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Maruti Suzuki India Ltd. JBS 2010-12 7
Maruti Suzuki India Ltd. JBS 2010-12
Maruti is one of the companies in India which has
unparalleled service network. To ensure the vehicles
sold by them are serviced properly Maruti has 1945
listed Authorized service stations and 30 Express
Service Stations on 30 highways across 1314 cities in
India.
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Maruti Suzuki provides vehicle insurance to its
customers with the help of the National Insurance
Company, Bajaj Allianz, New India Assurance and
Royal Sundaram.
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To promote its bottom line growth, Maruti launched Maruti
Finance.
Maruti Finance is currently available in 166 cities across India.
“Maruti Finance marks the coming together of the biggest
players in the car finance business.
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Maruti True service offered by Maruti Suzuki to its
customers. It is a market place for used Maruti
Suzuki Vehicles. One can buy, sell or exchange used
Maruti Suzuki vehicles with the help of this service
in India.
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As part of its corporate social responsibility Maruti
Suzuki launched the Maruti Driving School.
These schools are modelled on international standards,
where learners go through classroom and practical
sessions.
Before driving actual vehicles participants are trained
on simulators.
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N2N is the short form of End to End Fleet
Management and provides lease and fleet management
solution to corporates.
This fleet management service include end-to-end
solutions across the vehicle's life, which includes
Leasing, Maintenance, Convenience services and
Remarketing.
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Maruti started a new initiative under the brand name
Maruti Genuine Accessories to offer accessories like
alloy wheels, body cover, carpets, door visors, fog
lamps, stereo systems, seat covers and other car care
products.
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Production at Maruti ...
• Maruti Production System or MPS draws
learning's from its parent company Suzuki Motor
Corporation's concepts on “lean manufacturing”.
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Maruti Suzuki India Ltd. JBS 2010-12
• It is a strategy to achieve Manufacturing Excellence
• The system is people driven and ensures involvement
of all levels - Managers, Executives, and Supervisors
• With consistent improvements the company was able to
manufacture over 600,000 vehicles in 2006-07 with an
installed capacity of just 350,000 vehicles per year
• Every employee working on the line is 'cost sensitive'
and is a key contributor on how to keep costs of
production under control
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Products…
A2 WagonR - 1061cc in LPG also
”For the smarter race”
A2 Alto K10 - 998cc
“Dhantenan”
A1 Maruti 800 - 796cc
“Change ur life”
A1 and Entry A2 segment
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Upper A2 or Premium Compact Segment
A3 Segment
A-Star - 998cc
“Stop @ nothing”
Swift Dzire – 1290cc in petrol
1248cc in diesel
“The Heart Car”
SX4 - 1598cc
“Men are Back”
Swift– 1298cc in petrol and 1248cc in diesel
“you’re the fuel” Ritz – 1197cc in petrol
1248cc in diesel
“Live the moment”
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Grand Vitara – SUV Segment
“Play it your way”
Gypsy – 1300cc
“The King ”
Omni – 800cc Van type C segment
“Fits all”
B&C Segment
Eeco – 1200cc
“Happiness Family Size”
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Future Plan …
Suzuki Cervo sport 660cc engine - as against
Nano's 623cc – and wear a tag of around
Rs 1.5 lakh on road.
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Product Life Cycle…
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2) Growth Stage: • Rapid growth in sales and profits
• Cheaper for business to invest in increasing
their market share
Eg- Swift, WagonR.
1) Introduction Stage: • Market share and growth is slight
• Substantial R&D costs
• Marketing costs are high
Eg- Eeco , Alto K10.
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3) Maturity Stage:
• Competition is most intense
• Maximum profit is earned by the company
Eg- Ritz, SX4.
4) Decline Stage:
• Market shrinks and the overall profit reduces
• Depending on whether product remains profitable, a
company may decide to end the product
Eg- Maruti 800, Esteem.
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Pricing…
•Pricing Objective - Market share & Cost Leadership
•Pricing Method - Markup Pricing
•Pricing strategy - Economical Pricing
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• Expansion of manufacturing facility to achieve
economies of scale
• Maruti is the price dictator in Indian automobile
industry with Maruti 800 as the lowest priced car
• Their pricing strategy is to provide an option
to every customer looking for up gradation in car
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Maruti Suzuki India is currently focussing its distribution
network to setup stock patio in different parts of the
country .
Maruti Suzuki facilitates combined production capacity
of 1,000,000 vehicles annually.
Maruti Suzuki Manufacturing Facility has three fully
integrated manufacturing plants in Gurgaon and is spread
over 300 acres. All three plants have an installed capacity
of 350,000 vehicles annually.
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Maruti has around 15000 dealers who are catered buy the
sales executives.
The orders are collected by the sales executives and passed
on to the nearest depot.
The Gurgaon facilities also manufacture 240,000 K-
Series engines annually, equipped with more than 150
robots, out of which 71 have been developed in-house and
Facilities manufactures 800, Alto, WagonR, Estlio, Omni,
Gypsy, Swift and Eeco.
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Maruti was the first company in India which studied the
customer demand and responded it well.
Market segmentation policy was adopted that targeted different
type of customers with different type of model.
Maruti suzuki’s advertising has created brand awareness,
highlighted what the brand has to offer and has consistently
brought all of it top-of-the-mind for the customer
Maruti has recognised the importance of communicating and
involving key players who influence the final brand choice.
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ADVERTISEMENT…
Maruti has always tried to bind emotional relation with
people and their commercials always convey an emotional
message to the customer.
Maruti advertisement always target people segmently .
Maruti has very subtle way of communicating with people.
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SERVICE… Maruti Suzuki provides multiple facility to the customer. It
satisfy customer needs through their different brand
extension in different segment.
The best facility Maruti is known for is their service station
and their reach.
SALES PROMOTION… Customer promotion
Trade promotion
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Maruti Suzuki India Ltd. JBS 2010-12
Financial Analysis…
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SWOT Analysis… Strengths • After sales service
• Cost-effective
• Low maintenance
• Indian middle-class • Low price
• High fuel efficiency
Weaknesses • Lack of experience with the foreign market • Less exposure with foreign workforce
•Heavy Import tariffs
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Opportunity
• High end car segment • Overseas market • Improve handling
• Add extra features to small segment cars • Attracting youth
• Export small cars
Threats • Foreign companies entering market; so a bigger threat from MNCs • There is hardly any diesel model
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12 33
Maruti Suzuki India Ltd. JBS 2010-12
No.1 in Initial Quality Study - JD Power Total
Customer Satisfaction - TNS Study.
Car of the Year- BS Motoring .
Car of the Year- CNBC Auto car.
Best Value for Money Car .
Viewer's Choice- CNBC Auto car.
Accolades…
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Maruti Suzuki should enter into luxurious car market so as to compete with other companies.
As per the feedback from the customers seats
should be comfortable and Seat fabric should be more durable,it is found that customers are more satisfied with the Maruti Suzuki diesel engine.
Maruti Suzuki Should put in more efforts to
promote Maruti Finance, Auto card, Accessories and True value.
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Maruti Suzuki India Ltd. JBS 2010-12
The services provided by the company on the website are not being used because of the low penetration of internet in India. So it is recommended that these facilities should be made available at the point of purchase.
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The automotive industry is at the center of India’s new global dynamic.
Manufacturer’s product lines are being continually
expanded, as is the local automotive manufacturing base.
The country is already off to a good start, with a well-
developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers.
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Maruti Suzuki India Ltd. JBS 2010-12
The overall industry-wide customer satisfaction with new-vehicle sales experience increased considerably during the year as the industry average score rose by 26 points
International manufacturers have established huge facilities in the country
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