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Maruti's Strategies for Market Leadership

Maruti Suzuki is the undisputed market leader in India's automobile industry. To retain its leadership position, Maruti plans to target entry-level buyers through awareness campaigns and strong customer service. In the short term, Maruti will replace aging models, develop efficient diesel engines, launch new sedans, and expand fuel options. Long term strategies include developing premium brands, partnerships for electric vehicles, competing against global brands, and introducing hybrid models.

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Harshad Gophane
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0% found this document useful (0 votes)
196 views19 pages

Maruti's Strategies for Market Leadership

Maruti Suzuki is the undisputed market leader in India's automobile industry. To retain its leadership position, Maruti plans to target entry-level buyers through awareness campaigns and strong customer service. In the short term, Maruti will replace aging models, develop efficient diesel engines, launch new sedans, and expand fuel options. Long term strategies include developing premium brands, partnerships for electric vehicles, competing against global brands, and introducing hybrid models.

Uploaded by

Harshad Gophane
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

MARKETING STRATEGIES FOR

MARUTI TO RETAIN LEADERSHIP


BRIEF PROFILE
 MUL – established in Feb. 1981
 Entered into a joint venture with Suzuki Motor
Company (now Suzuki Motor Corp. of Japan)
in Oct. 1982
 Present share distribution-
Suzuki-54.2%
Maruti-45.8% (10.2% rests with Govt.)
 Undisputed leader in small cars.
 First automobile company to get ISO
9000:2000 certification.
 Fit every car buyer’s budget.
CURRENT MODELS
 MARUTI 800 1.90 – 2.30 lacs
 ALTO 2.40 – 3.00 lacs
 OMNI 2.49 – 2.51 lacs
 WAGONR 3.41 – 4.79 lacs
 VERSA 3.55 – 5.24 lacs
 ESTEEM 4.43 – 6.36 lacs
 SWIFT 4.24 – 5.24 lacs
 GYPSY 4.80 – 5.10 lacs
 BALENO 6.00 – 6.73 lacs
 VITARA 17 lacs
HOW IS MARUTI A MARKET
LEADER??
 INNOVATION
 FUEL EFFICIENCY
 COMPETITIVE PRICING
 VALUE FOR MONEY
 LOW MAINTENANCE
 QUALITY SERVICE ACROSS 1036 CITIES
 AVAILABILITY OF SPARE PARTS
 WIDE RANGE OF PRODUCTS
23.80
45.90 23.50 46.10
Others
Others
Maruti Maruti
Hyundai Hyundai
Tata Tata

13.40 13.90
16.90 16.50
2004-05 2005-06

Maruti
Tata
Hyundai
4.42 Mahindra
Honda
3.1 6.38 Toyota
44.25
GM
15.47 Ford
2.95 Others
3.01 16.48
3.94 2006-07*
Market Share in % (Passenger Vehicles) *Till date
DOMESTIC SALES
2004-05,2005-06,2006-07
DOMESTIC SALES

2004-05 2005-06 2006-07

80000

60000

UNITS 40000
20000

0
J une
A pr

A ug

Oct

Dec

Feb
Sales ended Sept. 2006
(FOUR WHEELERS)
(in units)
Maruti 56,606

Tata 18,609

Hyundai 16,415

Honda 5,993

GM India 3,506

Skoda 1,251
SALES TILL OCT 2006-07

OCT 7753 6354 38940

SEP 7289 7680 37955

AUG 6335 6425 32466 OMNI / VERSA


MARUTI 800
JUL 6899 6040 29326
ALTO / WAGON R / SWIFT
JUN 6464 7796 27228 BALENO / ESTEEM
GYPSY / VITARA
MAY 5295 6743 36066

APR 5050 5761 28156

0% 50% 100%
ROAD TO PROFIT

Profit Figures for Q2 (in crores)

4000 3540.8
3146.8
3000

Profit 2000 Total profit


262.6 367.4
1000
Net profit

0
J u ly 0 5 - S e p t. 0 5 J u ly 0 6 - S e p t. 0 6
Pe riod

Increase in Total Income - 12.5%


Increase in Net Income - 40%
HOW CAN MARUTI CONTINUE
TO BE THE LEADER?
 TARGET ENTRY LEVEL BUYERS
 CREATE AWARENESS (ADVERTISING)
 STRONG CUSTOMER CARE PROGRAM
 REVAMP STAR SELLING VEHICLES IN
EVERY 6 YRS
 ROUND THE CLOCK SERVICES
 TEST DRIVE AT DOORSTEP
SHORT TERM
STRATEGIES
 REPLACE ZEN WITH SUZUKI MR-WAGON
 DEVELOPE AN EFFICIENT DIESEL ENGINE
FOR SUZUKI SWIFT & FOR NEW SEDAN
 LAUNCH A NEW SEDAN TO REPLACE
SUZUKI ESTEEM (EXTENSION OF SWIFT)
 REVAMP SUZUKI BALENO
 LPG OPTIONS FOR NEW SEDAN &
REVAMPED BALENO
SHORT TERM
STRATEGIES
 USE THE MARUTI 800 AGAINST THE TATA 1
LAKH CAR (2wheelers to 4wheeler)
 LIMITED EDITION SWIFT CONVERTIBLES
WITH AUTOMATIC ROOFS TARGETING
NICHE MARKET
 MARUTI VERSA AS A TOURIST VEHICLE,
AIRLINE COMPANIES, ATM VANS
 OMNI CNG/LPG FOR CARGO
SWIFT PLATFORM
MARKET TESTING FOR NEW
PRODUCTS
 TEST THE MARKET FOR SUZUKI JIMNY
IN RS 5.5-6.5 LAKH SEGMENT AND FILL
IN THE GAP AS A COMPETITIVE URBAN
SUV.
LONG TERM
STRATEGY
 FLANKER BRAND FOR PREMIUM VEHICLES
 “UNIVA”……..FOR THE UNIQUE ONES
 TIE UP WITH SUZUKI MOTORS, REVA
ELECTRIC COMPANY
 MANUFACTURE STATE OF ART VEHICLES
FOR INDIA AND EXPORTS
 INDIA’S FIRST HYBRID VEHICLE IN C+
SEGMENT
LONG TERM
STRATEGY
 COMPETE AGAINST HONDA, HYUNDAI,
TOYOTA, GM IN INDIA
 INDIA’S FIRST HYBRID VEHICLE IN C+
SEGMENT
 BUILD HYBRID VEHICLES FOR EXPORTS
 EXCLUSIVE SHOWROOMS & DEALERS FOR
“PLATINO”
 LAUNCH VEHICLES LIKE ESCUDO,SX4.
ESCUDO
THANK YOU!!
DRIVE SAFE
 SAVE FUEL

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