Professional Documents
Culture Documents
Maruti Suziki
Maruti Suziki
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Industry scenario
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Manufacturer Segments
Ashok Leyland LCVs, M&HCVs, Buses
Asian Motor Works M&HCVs
Atul Auto Three wheelers
Bajaj Auto Two and Three Wheelers
BMW India Cars and MUVs
Daimler Chrysler India Cars
Eicher Motors LCVs, M&HCVs, Buses
Electrotherm India Electric Two Wheelers
Fiat India Cars
Force Motors Three Wheelers, MUVs and LCVs
Ford India Cars and MUVs
General Motors India Cars & MUVs
Hero Honda Motors Two Wheelers
Hindustan Motors Cars, MUVs and LCVs
Honda Two Wheelers, Cars and MUVs
Hyundai Motors Cars and MUVs
Kinetic Motor Two Wheelers
Mahindra & Mahindra Three Wheelers, Cars, MUVs, LCVs
Majestic Auto Three Wheelers
Maruti Suzuki Cars, MUVs
Piaggio Three Wheelers, LCVs
Reva Electric Car Co. Electric Cars
Royal Enfield Motors Two Wheelers
Scooters India Three Wheelers
Skoda Auto India Cars
Suzuki Motorcycles Two Wheelers
Swaraj Mazda Ltd. LCVs, M&HCVSs, Buses
Tata Motors Cars, MUVs, LCVs, M&HCVs, Buses
Tatra Vectra Motors M&HCVs
Toyota Kirloskar Cars, MUVs
TVS Motor Co. Two Wheelers
Volvo India M&HCVs, Buses
Yamaha Motor India Two Wheelers
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Global scenario
Car industry is one of the largest industries in the world, there are
many players in world manufacturing cars, among those are (a)
General motors, Ford in USA (b) Daimler Chrysler, Fiat, Lexus,
Volkswagen, Renault, etc. in Europe (c) Toyota, Nissan, Honda,
Hyundai and Suzuki, etc. in Asia. Global market for cars forecast
to increase by 3.8% to 50.7 m units in 2007 - an increase of
almost 1.9 m units. Biggest contribution has to come from
developing Asia (excludes Japan) and the growth of that region,
especially China. Contribution of the Pacific Rim countries to the
growing world market is, by 2009, almost an additional five
million units.
Indian scenario
The PAL entered the Indian market in mid 90 with Premier car,
then Maruti started capturing the Indian market with help of
maruti 800 .The car industry in general has grown at a CAGR of
13.5% p.a over the last 5 years, presently, India is 11th largest
passenger car market in the world and is expected to be the 7th
largest market by 2016. The Car industry has emerged as a key
contributor to the Indian economy; currently India has low car
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Market information
The current market scenario is given below:
➢ Passenger car sales grew by 10.84% and crossed the 1 million mark in 2006-07
and record sales of 1,076,408 vehicles.
➢ Utility vehicles sales grew by almost 12.2% in April-May 2007 compared to
the same period last year. Various manufacturers have entered this category and
this segment is expected to grow at 20% by 2010.
Product categorization
Categor Engine Length Market Price Exampl
y (cc) (mm) share range e
% (lacs)
Mini < 800 <3350 19 2-3 Reva,80
0
Small 800- 3350- 56 3-5 Alto,
car 1200 3800 zen
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.
24,348 16.6 12,105
24,348 4.4 31
31536 5.7 -
and
others
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Hyundai Motors
others
India Ltd.
19%
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Recent history
YEAR EVENTS 2006
-Indian car market leader Maruti Udyog on Feb 28, announced a
price cut ranging between Rs 13,000-22,000 across five models,
including M800 and Alto, following the cut in excise duty on small
cars -MUL unveils new WagonR in Punjab
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Ownership
MUL India's leading automobile manufacturers and the market
leader in the car segment, both in terms of volume of vehicles
sold and revenue earned is a public sector initiative. 18.28% of
the company is owned by the Indian government, and 54.2% by
Suzuki of Japan. The Indian government held an Initial Public
Offering of 25% of the company in June of 2003.
Ownership
Govern
others Government
ment
IPO Suzuki
IPO
others
Suzuki
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Maruti TrueValue
• Maruti True Value is a service offered by Maruti Udyog to its
customers. It is a market place for used Maruti Vehicles. one
can Buy, Sell or Exchange used Maruti Vehicles with the help
of this service in India.
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Key personnel
Initially R.C.Bhargava, was the managing director of the company
since the inception of the joint venture. Till today he is regarded
as instrumental for the success of Maruti Udyog. Joining in 1982
he held several key positions in the company before heading the
company as Managing Director. Currently he is on the Board of
Directors. After completing his five year tenure, Mr. Bhargava
later assumed the office of Part-Time Chairman. The Government
nominated Mr. S.S.L.N. Bhaskarudu as the Manging Director on
August 27, 1997. Mr. Bhaskarudu had joined Maruti in 1983 after
spending 21 years in the Public sector undertaking Bharat Heavy
Electricals Limited as General Manager. Later in 1987 he was
promoted as Chief General Manager, 1998 as Director,
Productions and Projects, 1989 Director, Materials and in 1993 as
Joint Managing Director.
Production Milestones
➢ 1st vehicle produced, December 1983
➢ 1,00,000 vehicles produced by August, 1986
➢ 5,00,000 vehicles produced by June, 1990
➢ 10,00,000 vehicles produced by March, 1994
➢ 15,00,000 vehicles produced by April, 1996
➢ 20,00,000 vehicles produced by October, 1997
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Omni
• 5 seater Maruti Omni
• 8 seater Maruti Omni
• LPG Maruti Omni
Maruti Alto
• Alto
• Alto Lx
• Alto Lxi
Maruti Zen
• Maruti Zen Lx
• Maruti Zen Lxi
• Maruti Zen Vxi
Wagon R
• WagonR Lx
• WagonR Lxi
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• WagonR Vxi
• WagonR Ax
Versa
• 5 seater
• 8 seater ( DX & DX2)
Maruti Esteem
• Maruti Esteem Lx
• Maruti Esteem Lxi
• Maruti Esteem Vxi
Baleno
• Baleno Sedan VXi
• Baleno Sedan Lxi
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YEAR
CLASS BRAND NAME SLOGAN
INTRODUCED
City Car Change your life
Maruti 800 1983
Let's go
Maruti Alto 2000
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Upcoming
Suzuki Splash model in 2009
For the smarter
Maruti Wagon-R 1999
Super race
mini Car Maruti Suzuki
2005 You're the fuel
Swift
Maruti Suzuki SX4 2007 Men are back
Compact
Car
Maruti DZiRE 2008 The heart car
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Bundle of competencies
Technology
Maruthi always introduces the best technology into its product
line, in addition to all its features which are almost standard in
most cars. They introduced 16* 4 Hypertech engines across the
entire Maruti Suzuki range. These are 4 valve engines powered by
16 bit chip. This gives an ideal combination of power and
performance. They also introduced electronic power steering
system (EPS) which gives better maneuverability. Their latest
introduction Swift has all the technology like surround protection
(SSP). This includes ABS, dual front airbags, collapsible steering
column, crashworthy structure etc. They also has additional
features like brake force distribution, key less entry system. The
six microprocessors are connected in a high speed canbus. This
controls engine, EBS, EPS, Auto AC, Security and dead lock and
air bag. Automatic climate control, rally based suspension system
and above all the dynamic design is what the latest entrant offers
its customers. Maruti also uses latest in IT for its operations. It
uses the oracle based packages for CRM and employee feed back.
Maruti also uses oracles ERP packages for its operations. ATFCAN
and Maruti are collaborating on Canadian CNG conversion
technology.
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Manufacturing
Markets
Maruti has a strong domestic market presence in India. It has a
market share of 47% in the domestic market. The current market
share of Indian car industry is given below, Maruti Exports Limited
is the subsidary of Maruti Udyog Limited with its major focus on
exports and it does not operate in the domestic Indian market.
The first commercial consignments of 480 cars were sent to
Hungary. By sending a consignment of 571 cars to the same
country Maruti crossed the benchmark of 3, 00,000 cars. Since its
inception export was one of the aspects government was keen to
encourage. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya,
Morocco, Sri Lanka, Uganda, Chile, Costa Rica and El Salvador are
some of the markets served by Maruti Exports.
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23%
MUL
46%
Hyundai
Tata
17% Others
14%
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Segmentation
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• Mercedes C Class
• Toyota Camry
• Audi A6, A8 & TT
• BMW X5, 5 Series & 7 Series
• Mercedes E Class, S Class, SLK, SL & CLS-
Rs. 30-90
Class
Lakhs • Porsche Boxster, Cayenne, 911 Carrera &
Cayman S
• Toyota Prado
• Bentley Arnage, Continental GT & Flying
Above Rs. 1 Spur
Crore • Rolls Royce Phantom
• Maybach
Targeting
Maruti was introduced targeting the middle class. Maruti’s
positioning was as a value for customer product. Its target
segments are well depicted in its Product Pyramid profit model. In
product pyramid model the distinct customer segments were
identified and targeted based on a variety of factors. These
factors among many include, style, color, price preference,
features etc.
The base of the pyramid is occupied by low price, high volume
products like 800 where margins are slim. The apex of the
pyramid is occupied by high priced, low volume products like
Baleno. Although profits were concentrated near the top, base
played a crucial role as it acted as a barrier to entry for the
competitors and also insulated the profitable area near the top.
Partnerships
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view to reduce cost. Earlier MUL used to follow the tender system
for the purchase of steel. Under this system, specifications were
advertised and accept the lowest price offered by a supplier who
could meet the specifications. In 2001 MUL moved to the
quotation system which gives them the flexibility to renegotiate
the prices once an offer is submitted. Standard purchase
orders are issued covering a period of six months for purchase of
steel from foreign suppliers for Indian supplier the period extends
up to one year. ……
At MUL the role of the vendors has gradually evolved from tactical
to strategically where the vendors work in close coordination with
MUL to meet our long-term goals in terms of:
• component development;
• quality;
• delivery; and
• Cost control.
In order to improve quality and generate economies of scale, MUL
has reduced the number of vendors of components in India from
370 as of March 31, 2000 to about 100 as in 2005. In case of
repair and replacements, costs of defective components supplied
are borne by the vendor.24
Delivery by Vendors
MUL has a delivery instruction system that provides details of the
component requirements for every 15 days, across the different
variants of the various models, to the vendors. Vendors are linked
to the MUL through the Internet-based information network, which
maintains online information regarding order status and delivery
instructions. These has helped in reducing both inventory levels
and lead times required for the supply of various components and
sub-assemblies, and enable the vendors to more efficiently plan
and dispatch their products. Vendors located within a radius of
100 kilometers from the manufacturing facility supply the
majority of the components. This has enabled the vendors to
eliminate packaging and supply components directly to the
assembly line.
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There are more than 400 Maruti dealer workshops and more than
1,500 Maruti Authorized Service Stations, or MASSs, covering
more than 900 cities in India. In addition, 24-hour mobile service
is also offered under thebrand “Maruti On-road Service”. As a
benchmark for dealers with respect to service quality and
infrastructure facilities, MUL has launched service stations under
the brand “Maruti Service Masters, or MSMs. MUL also has service
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distrubution
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Maruti was the undisputed leader in the automobile utility-car segment sector,
controlling about 84% of the market till 1998. With increasing competition from
local players like Telco, Hindustan Motors, Mahindra & Mahindra and foreign
players like Daewoo, PAL, Toyota, Ford, Mitsubishi, GM, the whole auto industry
structure in India has changed in the last seven years and resulted in the declining
profits and market share for Maruti. At the same time the Indian government
permitted foreign car producers to invest in the automobile sector and hold
majority stakes.
In the wake of its diminishing profits and loss of market share, Maruti initiated
strategic responses to cope with India’s liberalization process and began to
redesign itself to face competition in the Indian market. Consultancy firms such as
AT Kearney & McKinsey, together with an internationally reputed OD consultant,
Dr. Athreya, have been consulted on modes of strategy and organization
development during the redesign process. The redesign process saw Maruti
complete a Rs. 4000 mn expansion project which increased the total production
capacity to over 3,70,000 vehicles per annum. Maruti executed a plan to launch
new models for different segments of the market. In its redesign plan, Maruti,
launches a new model every year, reduce production costs by achieving 85-90%
indigenization for new models, revamp marketing by increasing the dealer network
from 150 to 300 and focus on bulk institutional sales, bring down number of
vendors and introduce competitive bidding. Together with the redesign plan, there
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has been a shift in business focus of Maruti. When Maruti commanded the largest
market share, business focus was to “sell what we produce”. The earlier focus of
the whole organization was "production, production and production" but now the
focus has shifted to "marketing and customer focus". This can be observed from
the changes in mission statement of the organization:
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".
Focus on customer care has become a key element for Maruti. Increasing Maruti
service stations with the scope of one Maruti service station every 25 km on a
highway. To increase its market share, Maruti launched new car models,
concentrated on marketing and institutional sales. Institutional sales, which
currently contributes to 7-8% of Maruti’s total sales. Cost reduction and
increasing operating efficiency were another redesign variable. Cost reduction is
being achieved by reaching an indigenization level of 85-90 percent for all the
models. This would save foreign currency and also stabilize prices that fluctuate
with exchange rates. However, change in the mindset was not as fast as required by
the market. Maruti planned to reduce costs, increase productivity, quality and
upgrade its technology (Euro I&II, MPFI). In addition, it followed a high volume
production of about 400,000 vehicles / year, which entailed a smooth relationship
between the workers and the managers.
Post 1999, the market structure changed drastically. Just before this change,
Maruti had wasted two crucial years (1996-1998) due to governmental
interventions and negotiation with Suzuki of Japan about the break-up of the share
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holding pattern of the company. There was a change in leadership, Mr. Sato of
Suzuki became the Chairman in June 1998, and the new Mr.J. Khatter was
appointed as the new Joint MD. Khatter was a believer in consensus decision
making and participative style of management.As a result of the internal turmoil
and the changes in the external environment, Maruti faced a depleting market
share, reducing profits, and increase in inventory levels, which it had not faced in
the last 18 years.
After their fall in market share they redesigned their strategies and through their
parent company Suzuki they learned a lot.The organizational learning of Maruti
was moderately successful, the cost was relatively inexpensive as Maruti had its
strong Japanese practices to fall back upon. With the program of organizational
redesign, rationalization of cost and enhanced productivity, Maruti bounced back
to competition with 50.8% market share and 40% rise in profit for the FY2002-
2003 Current strategies of maruti suziki
I. PRICING STRATEGY - CATERING TO ALL SEGMENTS
Maruti caters to all segment and has a product offering at all price
points. It has a car priced at Rs.1,87,000.00 which is the lowest
offer on road. Maruti gets 70% business from repeat buyers who
earlier had owned a Maruti car. Their pricing strategy is to provide
an option to every customer looking for up gradation in his car.
Their sole motive of having so many product offering is to be in
the consideration set of every passenger car customer in India.
Here is how every price point is covered.
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Vxi 6,42,000.00
3 MARUTI ESTEEM LX 4,66,000.00
VX 5,39,000.00
4 MARUTI VERSA DX 4,19,000.00
DX2 4,58,000.00
5 MARUTI SWIFT Lxi 3,95,000.00
Vxi 4,05,000.00
Zxi 4,85,000.00
6 MARUTI WAGON- LX 3,35,000.00
R
Lxi 3,62,000.00
AX 4,63,000.00
Vxi 3,87,000.00
VXi ABS 4,20,000.00
7 MARUTI GYPSY ST 5,06,000.00
HT 5,29,000.00
8 MARUTI ZEN D 3,58,000.00
LX 3,41,000.00
Lxi 3,68,000.00
Vxi 3,93,000.00
9 MARUTI OMNI CARGO 2,05,000.00
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showrooms across the nation. The used car market has a huge
potential in India. The used car market in developed markets was
2-3 times as large as the new car market.
III. REPOSITIONING OF MARUTI PRODUCTS
Whenever a brand has grown old or its sales start dipping Maruti
makes some facelifts in the models. Other changes have been
made from time to time based on market responses or consumer
feedbacks or the competitor moves. Here are the certain changes
observed in different models of Maruti.
Omni has been given a major facelift in terms of interiors and
exteriors two months back. A new variant called Omni Cargo,
which has been positioned as a vehicle for transporting cargo and
meant for small traders. It has received a very good response
from market. A variant with LPG is receiving a very good response
from customers who look for low cost of running.
Versa prices have been slashed and right now the lowest variant
starts at 3.3 lacs. They decreased the engine power from 1600cc
to 1300cc and modified it again considering consumers
perception. This was a result of intensive survey done all across
the nation regarding the consumer perception of Versa.
Esteem has gone through three facelifts. A new look last year
has helped boost up the waning sales of Esteem.
Baleno was launched in 1999 at 7.2 lacs. In 2002 they slashed
prices to 6.4 lacs. In 2003 they launched a lower variant as
Baleno LXi at 5.46 lacs. This was to reduce the price and attract
customers.
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Advertising of maruti
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Advertising Strategy
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Before we get into the details, let's observe some good and bad
points of this AdvertisingCommercialGood:
- The theme chosen is realistic - Indian Family, Function, everyone
is busy, everyone trying a hand to pacify the kid. So the ad does
generate a lot of interest
- The timeline of ad is perfect - Nobody has been focussed for a
longer time. It straightaway gets to the main point - to pacify the
kid
- There is a variety of methods included - someone dancing,
singing, making faces, toys and even scolding - it all looks perfect
- Finally, when the kid reaches the mom, he is happy - everyone
wonders what's happening, and there comes the Advertising
Commercial Punchline conveying themessage. Before we get
into the bad part, Just wanted to mention the reaction of others
who saw the ad with me. We have a 5 months old baby at my
home, and many family members keep him busy and happy, so it
was a real life scenario for us. Moreover, mom & dad leave the kid
at home in others care, if they have to go out, and the kid stays
happily - something contrary to what was shown in the
Advertising Commercial. What other members differed were
the following points (&theinferencethatcanbederived):
- Basically, it's a problem of the kid that he is not happy with
other family members. So the kid is at fault - basically meaning
that the car is not easy to get repaired if there are any problems,
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HR DEPARTMENT
Lead and Facilitate continuous change towards
organizationalexcellence ; create a learning and vibrant
organization with highsense of pride amongst itmembers.
HR INITIATIVES
• Prepare MUL Strategic Business Plan-2000-2003; To achievethe
Vision & Goal
• Improve the performance Appraisal system - it’s process, skill&
usage
• Introduce a Potential Appraisal System
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Induction program
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MEANING OF SELECTION
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2} Application Form
3}Selection Test
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4} Employment Interview
5} Medical Examination
Applicants who have crossed the above stages are sent for
aphysical examination either to the company’s physician or toa
medical officer approved for the purpose. Such examination
serves the following purposes:-
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6} Reference Checks
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7} Final Approval
8} Employment.
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9} Induction.
Training
EDP
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IMPORTANCE OF TRAINING
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Training Details
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Objectives
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Financial highlights
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Other Income -
Operating (Rs
887 853 4%
Mn)
Other Income -
Non Operating
1777 854 108%
(Rs Mn)
EBITDA (Rs
Mn)
4745 7839 39%
Depreciation
(Rs Mn)
1775 867 105%
Profit Before 2925 6828
Tax (Rs Mn)
57%
Profit After Tax
(Rs Mn) 2136 4670 54
EPS (Rs) 7.39 16.17 54%
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Financial highlights
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Other Income
Rs 1,777 Mn non operational (Rs 854 Mn in
Q3FY08)
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Mar '04
Operating 0 0 0 0 0
Activities
FINANCIAL RESULTS
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(Rs.in Million)
2007-08
2006-07
Appropriations:
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FINANCIAL HIGHLIGHTS
The gross revenue (net of excise) of the Company for the year
was Rs. 188,238 million as against Rs. 152,523 million in the
previous year showing an impressive growth of 23.4%. Earnings
before depreciation, interest, tax and amortization (EBDITA) stood
at Rs. 31,308 million against Rs. 25,888 million in the previous
year, recording a jump of 20.9%.
Based on technical evaluation and market considerations, the
Company has, with effect from 1st April 2007, revised the
estimated useful life of certain assets which resulted in
depreciation being higher by Rs. 2,122 million for the current year
with a corresponding reduction in profit for the year and net fixed
assets. Profit before tax (PBT) stood at Rs. 25.030 million against
Rs. 22,798 miilion in the previous year showing a growth of 9.8%
and Profit after Tax (PAT) stood at Rs. 17,308 million against Rs.
15,620 million in the previous year showing a
growth of 10.8%.
DIVIDEND
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amounting to Rs. 1,300 million, paid for the year ended 31st
March 2007.
➢ PRODUCT
➢ PRICE
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➢ PROMOTION
➢ PLACE
PRODUCT
Features:
The all-new Maruti Suzuki Swift is fully loaded with a range of
exciting new features. It's a perfect complement to your evolved
tastes and lifestyle. And the best way to take your driving
pleasure to a brand-new high.
European Styling. Japanese Engineering. Dream-Like
Handling.The new Swift is a generation different from Suzuki
design. Styledwith a clear sense of muscularity, its one-and-a-half
box, aggressive form makes for a look of stability, a sense that it
is packed with energy and ready to deliver a dynamic drive. Its
solid look is complemented by an equally rooted road
presenceand class-defining ride quality. New chassis systems
allow for the front suspension lower arms, steering, gearbox and
rear engine mounting to be attached to a suspension frame. You
get lower road noise, and a greater feeling of stability as you sail
over our roads with feather-touch ease.
There are three variants of Maruti Suzuki Swift :
➢ Swift LXi
➢ Swift VXi
➢ Swift ZXi
➢ Swift LXi
3 assist grips, 3 spoke urethane steering wheel, antenna, cabin
light (3 position), console box (lower), cup holders (front 2, rear1),
front door trim pockets, green tinted glass window, halogen
headlamps, headlamp leveling device, heater and manual Air
conditioning, OVRM (internally adjusted), rear fog lamps, wind
screen wiper 2 speed plus 1 speed intermittent, tailgate opener
key type, trip meter(digital display), sun visors (both sides), brake
assist , child lock (rear door), high mounted stop lamp, power
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steering, rear seat belts etc. are the features available in this
model.
➢ Swift VXi
Apart from the features found in other model, striking features of
this model are black colored A & B pillars, 12v accessory socket in
center console, day and night rear view mirror, door ajar warming
lamp, driver's seatbelt warning lamp, tachometer, driver's seat
belt warning lamp, vanity mirrors (sun visor co-driver side), rear
seat head restraints, fabric accented door trims, central door
locking (4
door), front and rear electronic windows, front fog lamps, light off/
key reminder, manual air-conditioning, key not removed warning
buzzer, etc.
➢ Swift ZXi
Special features that have made this model more market friendly
are rear window demister, rear parcel shelf, rear window wiper,
room lamp and luggage room, keyless entry,dual front airbags,
colored outside door mirror cowls, colored outside door handles,
12vaccessory socket in luggage room, driver seat height adjuster,
central door locking (5 doors), seat belts 3-point ELR with
shoulderNadjusters, seat belts front 3-point ELR with
pretensioning,tailgate opener electromagnetic type etc.
Price
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latest model from the Suzuki’s stable. The analysts predict the
pricing of this premium hatchback to start from Rs. 4 lakh. This
price range would practically rip apart Hyundai’s offering in Getz,
which is priced at a much higher tag of Rs. 4.5 lakh. Both the
companies are known for their value based offerings and Maruti
with their extensive service network and brand reputation for
making reliable cars should get the customer’s nod over their
competition. The official pricing however is still not out. However,
the company is said to be studying the prospects of launching the
base model at the 4-lakh price tag. There is another advantage in
doing so considering in the capital city of Delhi NCR road tax on
the sub 4 lakh priced cars is comparatively lower at 2%. Cars at a
price higher than 4 lakh have to pay a 4% road tax. Delhi NCR is
one of the major targeted markets and it might get the
benefit of this policy. And if they indeed do take the chance
ofpricing Suzuki Swift at a considerable lower price than Hyundai
Getz, they would quite likely force the competition to rethink their
strategy.
PROMOTION
When Maruti Udyog launched the Swift in May last year, the
automotive industry was agog with expectation that the car had
the makings of a real winner. Three versions were launched with
the base variant carrying a retail tag of Rs 3.85 lakh, ex-
showroom, New Delhi, and this aggressive pricing only reinforced
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this feeling.A year later, the company says the Swift is now the
most-sold car in the first year of any car in the history of the
Indian automobile industry, having totted up sales of 61,200
units. This is higher than what Maruti had initially planned to sell.
The car
recorded an estimated 4,000 bookings at the time of its launch,
and the initial output of 200 units a day on a two-shift basis,
wasn’t enough to cope with demand. In October, the company
increased capacity for the Swift which helped cut down on the
waiting time from an estimated three months. The company
currently makes over 300 units every day. The Swift has made a
real impact in the small hatchback segment leaving its closet
rival, the Getz far behind. Between April 2005 and April 2006,
Hyundai sold 16,872 units of the Getz. Maruti is now
gearing up for the diesel version of the Swift which is expected to
debut by October. The diesel version will benefit from the excise
sops in this year’s buget, and it remains to be seen how the
models fares in the marketplace.
PLACE
The car manufacturing company, called Maruti Suzuki
Automobiles India Limited, is a joint venture between Maruti
Udyog and Suzuki Motor Corporation holding a 70 per cent and 30
per cent stake respectively. The Rs1,524.2 crore plant has a
capacity to roll out 1 lakh cars per year with a capacity to scale
up to 2.5 lakh units per annum. The car manufacturing plant will
begin commercial production by the end of 2006.
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MUMBAI - Showrooms
➢ AUTOMOTIVE MANUFACTURERS LTD
MIDC,TTC INDL.AREA, PLOT
NO.D-234,SHIRVANE VILLAGE
BOMBAY PUNE ROAD
➢ Autovista
257,S.V. ROAD, BANDRA (W)
MUMBAI
MAHARASHTRA
➢ M/S SK WHEELS PVT LTD
SITE NO. D-267
TTC INDUSTRIAL AREA, MIDC
TURBHE, NAVI MUMBAI
➢ NAVNIT MOTORS PVT LTD
GOKUL NAGAR
MUMBAI-AGRA ROAD,
THANE-400 061
➢ RATAN MOTORS
23/24 BEZZOLA COMPLEX
SION-TROMBAY ROAD
CHEMBUR
➢ SAH and SANGHI AUTO AGENCIES (P) LTD
GIRI KUNJ, 11-C N S PATKAR MARG
KEMPS CORNER
➢ SAI SERVICE STATION LTD
PHOENIX MILL COMPOUND,
462,SENAPATI BAPAT MARG,
LOWER PAREL,
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➢ STRENGTHS
➢ WEAKNESSES
➢ OPPORTUNITIES
➢ THREATS
STRENGTHS
The Quality Advantage
Maruti Suzuki owners experience fewer problems with their
vehicles than any other car manufacturer in India (J.D. Power\ IQS
Study 2004). The Alto was chosen No.1 in the premium compact
car segment and the Esteem in the entry level mid - size car
segment across 9 parameters. The J.D. Power APEAL Study 2004
proclaimed the Wagon R no. 1 in the premium compact car
segment and the Esteem No.1 in the entry level mid - size car
segment. This study measures owner in terms of design, content,
layout and performance of vehicles across 8 parameters.
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In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest
across all 7 parameters: least problems experienced with vehicle
serviced, highest service quality, best in-service experience, best
service delivery, best service advisor
experience, most user-friendly service and best service initiation
experience.
92% of Maruti Suzuki owners feel that work gets done right the
first time during service. The J.D. Power CSI study 2004 also
reveals that 97% of Maruti Suzuki owners would probably
recommend the same make of vehicle, while 90%owners would
probably repurchase the same make of vehicle.
WEAKNESS
OPPORTUNITIES
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THEARTS
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emission norms like Bharat Stage 3 which has come into effect
from April 2005 has increased car prices by Rs.20000 and Bharat
Stage 4 which is coming into force in 2007 will contribute in
increasing car prices further. This could be of concern to Maruti
which is low cost provider of passenger cars.
Rise in petrol prices and growing popularity of other
substitute fuels like CNG will be another threat to Maruti. There
is also a threat to Suzuki from R&D investment by Toyota and
Honda in Hybrid cars. Hybrid cars could run on both petrol and
gaseous fuels. There is a threat to Maruti models ageing. Maruti
models like Maruti 800 which is in market for the last twenty
years and others like Zen and Esteem which have also entered
the decline phase are the other threats. Maruti is planning
phasing out Zen in 2007 and there were rumors of phasing out
Maruti 800 also. This all makes Suzuki to replace these brands
with new launches . As Swift and Wagon R are replacing the Zen
market. Maruti will have to keep on makingN modifications in its
present models or its models will face extinction.
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Telco
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Germany. Starting with the 1980s, Telco has moved into light
commercial vehicles, pick-up trucks, multi-utility vehicles, large
cars and finally, small cars. The Tata Mobile pick-up truck
launched in 1988 was probably a turning point in Telco’s history.
The model failed to build volumes, but gave Telco engineers
confidence in their design capabilities. Telco then launched its
big cars, Tata Sierra (1991) and Tata Estate (1992). Both these
cars have been more or less phased out, as Telco decided to take
a plunge into the mass market small car segment1.
The star in Telco's portfolio today is the small car, Indica,
designed in Italy, but manufactured in India as an almost
completely indigenous effort. The car has a distinctive look and
sufficient space but its engines can probably be improved. At the
time of launch, the Indica was plagued by quality problems. Telco
engineers, however, ironed these out in quick time. Priced at just
over Rs. 3 lakhs, the Indica offers value for money and has
catapulted Telco to a position in which it is one of the few serious
challengers to MUL. In the Rs 3 - 4.5 lakh price segment
consisting of the Santro, the Zen, the Matiz, the Wagon R and the
Uno, Indica has a market share of 21%. One concern expressed
by analysts is Telco's staying power. The project will not break
even for some time. As Business Today2 recently remarked: "The
car foray is sucking Tata Engineering into a vicious loop: as its
losses keep mounting, the breakeven target keeps getting pushed
back further. As things stand today, analysts point out that to
make money, Tata will have to sell close to one lakh cars, against
the original target of 90,000 cars and the project cost has
escalated to over Rs 2000 crores." Some analysts even suggest
that Telco should spin off its car venture and offer a stake to a
foreign car major. Another worry for Telco is that it is dependent
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Conclusion
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Maruti Suzuki India Ltd (MSIL) has the highest marketshare in the
automobile sector in India. To consolidate and protect its
leadership position, the market research team conducts a
continuous Brand Track study with an all-India scope. Amongst
other things them survey looks at: Brand Awareness, Advertising
Recall, Product Experience, Company Image and Competition
Analysis.
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