Sub – Marketing Strategy.Submitted to – Prof. Vikram Parekh.Date – 21/ 09/ 2009
• Mohd. Asad Khan.• Bhaskar Shukla.• Tushar Kamble.• Kanchan Sahare.• Sachin Surve.
VISION
1984 :- Fuel efficient Vehicle with latest technology.
1987 :- Leader in Domestic Market and Be among Global Players in Overseas Market.
1997 – Till Date :- The leader in Automobile industry,
Creating Customers delight and
Shareholders wealth, ‘a pride of
India’.
ABOUT MARUTI SUZUKI
Subsidiary of Suzuki Motor Corporation of Japan
India's largest passenger car company 25 Years of trust
Over 7720 employees in 4 plants
INDIAN AUTOMOBILE INDUSTRY (2007-08)
CURRENT STRATEGIES BY MARUTI
Pricing strategy - catering to all segments
Offering one stop shop to customers
Repositioning of Maruti products
Customer Centric Approach
Committed to motorizing India
Realisation of importance of vehicle maintenance services market
Playing on cost leadership
COMPETITOR ANALYSIS
HYUNDAI1. Positioning of Hyundai Santro
- Family Car to Smart Car for young People
- Complete Family Car to Sunshine car.
2. Hyundai’s Pricing Strategy
- Markdown of Prices on Santro Xing
- Non AC Santro at 2.79 Lacs
TATA MOTORS
1. Positioning Of Tata Indica
- Indica is positioned as ‘more car per car’
2. Tata’s Pricing Strategy
- Indica is priced between Rs 2.56 Lacs to 3.88 Lacs
CURRENT THREATS
Perception Change
Growing Competition In Compact Cars
Few Maruti models may face extinction
RULE OF 3
Maruti Suzuki is Specialist. As it plays only in Passenger and Commercial cars and related Subsidiaries.
Maruti Insurance (2002) Maruti Finance (2002, 166 cities) Authorized Service Stations. Maruti True Value Maruti Driving Schools (Delhi and Panjab)
COMPETITIVE POSITIONS COMPETITIVE POSITIONS
Market leader (54%. 2008-09)
Expanding the total market.Defending the market share.Expanding market share.
PORTER’S FIVE FORCES
BASIS OF SEGMENTATION
Geographic
Region, City or MetroSize, Density, Climate
Demographic
Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...
Lifestyle or Personality
Psychographic
TARGETING :- SELECTIVE SPECIALIZATION
Market
ProductUrban Semi –
Urban Rural
A1 Yes Yes
A2 Yes Yes Yes
A3 Yes Yes
SUV Yes
C- Class Yes Yes Yes
TARGETING :- ON THE BASIS OF INCOME GROUP Income Group
Product RS. 2- 3 lacs. /annum
RS. 3-5 lacs. /annum
RS. 5 - > 5 lacs. /annum
A1 Yes
A2 Yes Yes
A3 Yes
SUV Yes
C- Class Yes Yes Yes
POSITIONING
Product Target Customers
Benefits Value Proposition
A1 A consumer who wants car.
Durability and Performance
A car which gives Durability in low cost.
A2 A consumer who wants Small & spacious car.
Spaciousness . A spacious small car without extra cost.
A3 A consumer who wants more comfort car
Design, Style and Luxury.
A car design with style and luxury.
SUV Lifestyle Oriented consumers.
Rigidness, Luxury and Comfort .
A Vehicle that provides the luxury and Comfort of a car.
C-Class A consumer who wants car for commercial use
More spacious car.
A big car with reasonable price
BCG MATRIX
Relative market share = Business unit sales this year
Leading rival's sales this year
Market growth rate = Individual sales - Individual sales
current year pervious year Individual sales pervious year
GENERIC STRATEGIES
• Overall cost leadership• Low-cost-position relative to a firm’s peers• Manage relationships throughout the entire value chain
• Differentiation• Create products and/or services that are unique and valued• Non-price attributes for which customers will pay a premium
• Focus strategy• Narrow product lines, buyer segments, or targeted geographic
markets• Attain advantages either through differentiation or cost
leadership
GENERIC STRATEGIES
Cost Leadership Differentiation
DifferentiationLower Cost
Differentiation Focus
Cost FocusParticular Segment
Industry wide Scope
Competitive Advantage
AN OFF'S MATRIX
Market Penetration• Distribution •Expansion of manufacturing
facilities
Market Development•Exports
Diversification
Product Development•New product –
Splash
Existing Product New Product
Existing Market
New Market
4PS
Product Price Place Promotion
EXISTING PRODUCT STRATEGY
Portfolio of 12 products Five product lines
Core Product, Formal Product, Augmented Product & Future Product
Product Line Products
A1 800
A2 Alto, Zen ,Wagon –R, Swift, A-star
A3 D ZiRE, Sx4
SUV Vitara, Gypsy
C - Class Omani, Versa
Core Product
Attributes Styling
Colour
BrandName
PackagingQuality
InstructionsManual
After salesservices
Deliverypoints & systems
Installation(for bulkyproducts)
Customer
education
and Training
Customercomplaint management
Payment options (for high priced prod- cts)
Replacement orreturnspolicy
Guarantees &warranties
Core Product
FormalProduct
Augmented Product
Future Product
PRODUCT STRATEGY
SUGGESTED PRODUCT STRATEGY
More fuel efficient cars. AlterNet fuel cars. Eco friendly cars. More focus on A1, A2 & A3.
MORE FOCUS ON A1, A2 & A3.
EXISTING PRICE STRATEGY
Pricing Objective :- Market share & Cost Leadership
Pricing Method :- Markup Pricing (cost plus pricing )
Pricing strategy :- Economical Pricing
SUGGESTED PRICE STRATEGY
Continue Economic pricing strategy as it will help to achieve goal of become cost leader.
Expansion of manufacturing facility to achieve economies of scale.
EXISTING PLACE STRATEGY
600 New car sales outlets covering 393 cities.
265 ‘Maruti True Value’ outlets spread across 166 cities.
2628 Maruti Authorized Service Stations, covering 1220 cities.
Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat
SUGGESTED PLACE STRATEGY
400 new car sales outlets in next three years.
150 new true value shops in next three years.
1200 new Maruti Authorized Service Stations in next three years.
Tie up with other distributors for Exports.
EXISTING PROMOTION STRATEGY
o AdvertisingoTV AdsoPrint Ads oRadio Ads
o Advertising Strategy Persuasion Advertising
“Ghar Aa Gaya Hindustan” “India Comes Home in Maruti Suzuki.”
Information Advertising
CONT………….
Alternative Advertising Options BTL - Sponsorships
TV shows - India’s Got talent Place Advertising – Bill boards
Sales Promotions Product warranties Premiums (gifts) Trade shows
2,628The number of workshops that provide customers with maintenance support in 1220 cities.
SUGGESTED PROMOTION STRATEGY
Continue with existing Advertising strategy.
Look for Alternative Advertising Options. BTL