A STUDY OF MARKETING STRATEGIES OF

BY P RA THA M J UN EJ A
BBA-B
4 TH S EME STER
ROLL NO .113

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ACKNOWLEDGEMENT
We wish to express our sincere thanks to
Prof. Mr. SANJAY MANOCHA, FACULTY- BHARATI
VIDYAPEETH UNIVERSITY’S INSTITUTE OF
MANAGEMENT AND RESEARCH for giving us the
opportunity to work on the marketing plan of a company.
This has given us the insight of how the various theoretical
concepts are applied in an organization. I got the
opportunity to do a challenging project in MARUTI UDYOG
LIMITED. The project is the important part of our study and
gives us a real practical exposure to the corporate world.
I also thank to Dr. Sachin S. Vernekar, Director,
BHARATI VIDYAPEETH UNIVERSITY INSTITUTE OF
MANAGEMENT & RESEARCH for giving me chance to
get such an experience and giving me chance to get an
industrial experience.

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 INDEX
S.No. Topics Page No.
1. Introduction 5
1.1 Indian Automobile Industry 5
1.2 History 5
1.3 Overview 6
2. An Introduction to Maruti Udyog Ltd. 14
2.1 Products of Maruti Suzuki 16
2.2 Competitors of Maruti Udyog Ltd. 18
3. Competitors of Maruti Suzuki Swift 20
4. Marketing Mix 21
5. Swot Analysis 25
6. Research Methodology 37
6.1. Objectives of the Study 40
6.2. Data Collection Tools 41
6.3. Limitations 42
7. Analysis 43
8. Conclusions & Recommendations 47
9. Annexure 48
9.1. Bibliology 48
9.2. Questionnaire 49

INTRODUCTION

INDIAN AUTOMOBILE INDUSTRY

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One of the major global automotive industries in the coming years. A number of
domestic companies produce automobiles in India and the growing presence of
multinational investment, too, has led to an increase in overall growth. Following the
economic reforms of 1991 the Indian automotive industry has demonstrated sustained
growth as a result of increased competitiveness and relaxed restrictions. The monthly
sales of passenger cars in India exceed 100,000 units

History
In 1953, the government of India and the Indian private sector initiated manufacturing
processes to help develop the automobile industry, which had emerged by the 1940s in
a nascent form. Between 1970 to the economic liberalization of 1991, the automobile
industry continued to grow at a slow pace due to the many government restrictions. A
number of Indian manufactures appeared between 1970-1980. Japanese manufacturers
entered the Indian market ultimately leading to the establishment of Maruti Udyog. A
number of foreign firms initiated joint ventures with Indian companies.

Timeline of Indian automobile industry:

• 1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves
Company, Mumbai
• 1901 First Indian to own a car in India - Jamshedji Tata
• 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata
• 1905 Fiat Motors
• 1911 First Taxi in India
• 1924 Formation of traffic police
• 1928 Chevrolet Motors
• 1942 Hindustan Motors
• 1944 Premier Auto Limited
• 1945 Tata Motors
• 1947 Mahindra Motors
• 1948 Ashok Motors
• 1948 Standard Motors
• 1974 Sipani Motors
• 1981 Maruti Udyog
• 1994 Rover Motors
• 1994 Mercedes Benz
• 1994 Opel
• 1995 Ford Motors
• 1995 Honda SIEL
• 1995 Reva Electric Car Company
• 1995 Daewoo Motors
• 1996 Hyundai Motors
• 1997 Toyota Kirloskar Motors
• 1997 Fiat Motors (Re-Entry)
• 1998 San Motors
• 1998 Mitsubishi Motors
• 2001 Skoda Auto
• 2003 Chevrolet Motors (Re-Entry)

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Following the economic reforms of 1991, the automobile section underwent
delicensing and opened up for 100 percent Foreign Direct Investment. A surge in
economic growth rate and purchasing power led to growth in the Indian automobile
industry, which grew at a rate of 17% on an average since the economic reforms of
1991. The industry provided employment to a total of 13.1 million people as of 2006-
07, which includes direct and indirect employment. The export sector grew at a rate of
30% per year during early 21st century. However, the overall contribution of
automobile industry in India to the world remains low as of 2007. Increased presence
of multiple automobile manufacturers has led to market competitiveness and
availability of options at competitive costs. India was one of the largest manufacturers
of tractors in the world in 2005-06, when it produced 2,93,000/- units. India is also
largely self-sufficient in tyre production, which it also exports to over 60 other
countries. India produced 65 million tyres in 2005-06.

Overview
Pran Tiku (2008)—on the subject of automobile industry in India—holds:

India’s car market has emerged as one of the fastest growing in the world. The number
of cars sold domestically is projected to double by 2010, and domestic production is
skyrocketing as foreign makers are setting up their own production plants in India. The
government’s 10-year plan aims to create a $145 billion auto industry by 2016.

According to McKinsey, the auto sector’s drive to lower costs will push outsourcing.
The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002.
McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indian
suppliers, 80 percent have the ISO 9000 certificate—the international standard for
quality management.

The production of automobiles in India is largely

aimed at local consumers. Several Indian
manufacturers also export a diverse variety of auto
components. Tiku (2008) predicts a sale of 4.2 million
four wheeler automobiles in India by 2015. Indian
passenger vehicle exports are also expected to rise
from 170,000 in 2006 to 500,000 in 2010. Indian
automobile companies
The following are some of the notable Indian automobile manufacturers:

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 Company Description Product

Ashok Leyland is a commercial

vehicle manufacturing company
based in Chennai, India. In 1948,
Ashok Motors was set up in what
was then Madras, for the assembly
of Austin Cars. The Company's
18 seater to 82 seater double-
name changed soon with equity
decker buses, 7.5 tonne to 49 tonne
participation by British Leyland and
Ashok in haulage vehicles, special
Ashok Leyland commenced
Leyland application vehicles, and diesel
manufacture of commercial
engines for industrial, marine and
vehicles in 1955. Ashok Leyland
genset applications.
has six manufacturing plants: a
plant at Ennore near Chennai, two
plants at Hosur (called Hosur I and
Hosur II, along with a press shop),
and the assembly plants at Alwar
and Bhandara.

Gas-cylinder carrier, copied from

Force Motors, formerly Bajaj
Force Motors Tempo, is a Pune-based
Ltd manufacturer of a number of
commercial vehicles
3-wheel Vidal & Sohn Tempo-
Werke (German) Hanseat; Matador,
a version of Hanomag van and
light-truck (1.5 tonne payload);
Tempo-traveller, Indian version of
Daimler-Benz T-1 transporters;
Man-Force Trucks, licensed
version of MAN AG trucks; and
UV's copied from Daimler-Benz.

Hindustan Motors is one of the

oldest Indian car manufacturers in
India. It is perhaps best known for
Hindustan the Ambassador which has
Motors remained virtually unchanged for
about 30 years. It is still very
popular as a taxi and is widely used
by Indian politicians.
Trekker (discontinued), Land
master (discontinued), Contessa
(discontinued)—5th generation
Vauxhall Victor, and the
Ambassador—a version of the
1950s Morris Oxford.

Mahindra & The automotive section of Armada (discontinued), Voyager

Mahindra Mahindra started off when a first (discontinued), Bolero.
Limited batch of seventy five Utility Commander, CL, MaXX, Scorpio,
Vehicles (UVs) was imported in and Mahindra and Mahindra
CKD condition from Willys in

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 1947. It presently manufactures
Jeeps along with agricultural Classic.
equipment and light trucks.

Maruti Suzuki (formerly Maruti

Udyog) was formed as a
partnership between the
Government of India and Suzuki of
Japan. It brought India its first
"affordable" car, the Maruti 800. It
is the biggest car manufacturer in
India and especially dominant in
the small car sector. Then it brought
out the Maruti 1000, made by
Maruti Udyog was the first ever 800, Omni, Alto, Gypsy, Swift,
Maruti
contemporary sedan-type car SX4, WagonR, Versa, Zen Estilo,
Suzuki
launched in India. The car (which Grand Vitara, and Swift Dzire.
Suzuki sold in other countries as the
Cultus/Swift/Geo Metro with a 1.3
L or 1.6 L engine) was introduced
in October, 1990. Sold at Rs.3.81
lakh, it was back then the costliest
car released in the Indian market.
Then the company replaced it with
Esteem and from those days on a
line of Suzuki cars rolled out in the
Indian market.

Walchand Hirachand started

Premier Automobiles Ltd. (PAL) in
1942. They assembled De Soto and
Plymouth cars in 1946 in
Premier Padmini (discontinued), 118 NE
association with Chrysler from the
Automobiles (discontinued), and Premier Sigma.
United States. They also
manufactured the Premier Padmini
which was a version of the Fiat
1100.

REVA REVA Electric Car Co. is the REVA (G-Wiz).

producer of the Reva (G-Wiz), an
electric car intended for use as a
City car. More REVAs have been
produced than any other currently
selling electric car and sales are
increasing. It is currently the
world's leading electric car

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 manufacturing company.

Tata Motors, formerly known as

TELCO, is the largest automobile
manufacturer in India and
commands more than 70% of the
commercial vehicle market in India
and has also increased its share of
passenger vehicle market. It was
Indica, Indigo, Indigo Marina,
Tata Motors responsible for developing India's
Safari, Sumo, TL, and Tata Nano.
first indigenous vehicle, the Indica.
It has proved to be a success in the
market after initial quality
problems. The company also
exports the car to many countries.
Tata owns major stake in Jaguar
and Range Rover.

In addition to Bangalore-based Reva, which currently is the only company actually

selling EVs today, electric cars made in India includes:

• Mahindra & Mahindra: Four-seat model by 2010.

• Tata: 2008-2009 (Also possibly an air car).
• Ajanta Group: clockmaker with plans for low-cost EV.
• Tara: Low-cost EV less than a Tata Nano.
• Hero Electric: 2013 Electric car.

Multi-national companies in India

Company Description Product

In January 2008, Audi started

production with the Audi A4 and A6
Audi A4, A6, A8, R8, Q7, and TT.
at its factory in Aurangabad in the
state of Maharashtra.

BMW BMW is a manufacturer of sport 3 Series, 5 Series, 6 Series, 7 Series,

sedans. BMW enjoys good brand X3, and X5.
recognition in India. It has set up a
plant in Chennai, Tamil Nadu, to
manufacture cars locally
exclusively for the local market

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 with no plans for export. It set up
the plant to circumvent high import
duties.

The Fiat Uno was one of the first

products to be introduced. The Fiat
Palio was later introduced and was
initially a success with its style and
ride comfort coupled with solid
build but has slowly lost its sheen
due to low fuel efficiency. Other
models were introduced such as the
Palio Weekend and Siena. Fiat tried
re-branding of the Fiat Siena to Fiat
Petra without much success. It
Uno (discontinued), Palio, Palio Stile,
roped in Sachin Tendulkar as one of
Siena (discontinued), Siena Weekend
its brand ambassadors. Even
(discontinued), Petra (discontinued),
Michael Schumacher appeared in an
Adventure, Fiat Bravo—sold in
Fiat ad for the Palio. It has entered now
collaboration with Tata Motors, Fiat
into an alliance with Tata Motors to
500—sold in collaboration with Tata
jointly manufacture cars at its plant
Motors, and Fiat Linea—sold in
in Ranjangaon, near Pune. The
collaboration with Tata Motors.
facility will enable the two
companies to make about 200,000
cars per annum, and also house an
engine manufacturing unit with a
capacity of 250,000 units per
annum. The alliance will also see
Tata Motors use Fiat's diesel
technology—the 1.3 litre multijet
diesel engine—for its own vehicles.
The two companies also have a
distribution and service partnership.

Ford entered India in collaboration

Escort (discontinued), Ikon, Mondeo
Ford with Mahindra & Mahindra in 1995
(discontinued), Endeavour, Fusion,
Motors with a plant in Tamil Nadu. The
and Fiesta.
first model was the Escort.

General Chevrolet has been a recognized Tavera—rebadged Isuzu Panther,

Motors brand in India for several decades.
The model line-up consists of
vehicles from cheaper sister brands
like Daewoo. General Motors
initially entered India with the Opel
brand, but the Opel brand was
Forester (discontinued)—rebadged
First Generation Subaru Forester,
Aveo—second Generation Daewoo
Kalos sedan, Aveo UV-A—first
Generation Daewoo Kalos hatchback,
Optra—rebadged Daewoo Lacetti,

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 dropped in March 2006 because
sales were at an all time low due to
high prices and General Motors
wanted to focus more on their
Chevrolet brand. Since the
Chevrolet brand was introduced in SRV—rebadged Daewoo Lacetti,
India, there have been no new Opel Spark—formerly Daewoo Matiz in
products. GM's Indian operations India, and Captiva—recent launch in
were originally a JV between India.
Hindustan Motors and GM, with
most of GM's vehicles assembled at
Hindustan's plant in Halol, Gujarat.
Since then, GM India is now wholly
owned by GM.

Honda Siel Cars entered India in

1995. It sells 4 cars in India—the
City, Civic, Accord, and CR-V. The
manufacturing plant of Honda Siel
is located in Greater Noida. The
Honda Accord, City, Civic, and CR-V.
model of Accord sold in India is the
2003 model. The most inexpensive
car from Honda—The City. The
most expensive—The Honda
Accord V6.

Santo—second generation Hyundai

Atos, Accent—second generation
Hyundai Accent sedan, Sonata—sold
When Hyundai entered India, the as the Sonata Embera, Verna—third
brand was virtually unknown in the generation Hyundai Accent sedan,
Hyundai Indian market. But now Hyundai Getz—sold as the Getz Prime, Elantra
has good market because of its —3rd generation Hyundai Elantra
models like SANTRO, Accent etc. sedan, Terracan (discontinued),
Tucson, i10—brand new small car,
global launch in India in 2007, and
i20.

Renault- Logan (in partnership with Mahindra

-
Nissan and Mahindra).

Mercedes- Mercedes-Benz has had to cater to C-Class, E-Class, S-Class, ML-Class,

Benz the ever gowning luxury segment in SL-Class, CL-Class, SLK-Class,
India, especially after the arrival of CLK-Class, GL-Class, and CLS-
the other luxury German

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 manufacturers. Now, Mercedes-
Benz cars are launched in India
soon after the worldwide launch
and homologation as opposed to
Class.
earlier, when Mercedes-Benz had
monopolized the niche Indian
market. In 2007 they launched the
SLK-Class and CLS-Class.

Lancer - Sixth Generation Mitsubishi

Lancer, Cedia—seventh generation
Mitsubishi Mitsubishi Lancer, Pajero—second
-
Motors generation Mitsubishi Pajero,
Montero—third generation Mitsubishi
Pajero, and Outlander.

Škoda Auto is an important car

manufacturer of India. It recently
launched the Laura; the Octavia still
Škoda Octavia, Superb, Laura, and Fabia.
continues to exist. Škoda also offers
the Superb in India but it's not too
popular.

Qualis (discontinued)—3rd generation

Toyota Kirloskar sells 4 car models
Toyota Kijang, Camry—7th
in India. It stopped producing the
generation Toyota Camry (the latest
Toyota Qualis to make way for the
generation Camry), Corolla—9th
Toyota Toyota Innova, which was launched
generation Toyota Corolla, Innova,
in India in 2005. The most
and Land Cruiser Prado VX—latest
expensive car from Toyota is the
generation Toyota Land Cruiser
Land Cruiser Prado.
(PRADO).

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 INTRODUCTION OF MARUTI
UDYOG LIMITED

Maruti Udyog Limited

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan,

has been the leader of the Indian car market for about two decades. Its
manufacturing plant, located some 25 km south of New Delhi in Gurgaon, has
an installed capacity of 3,50,000 units per annum, with a capability to produce
about half a million vehicles.

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The company has a portfolio of 11 brands, including Maruti 800, Omni,
premium small car Zen, international brands Alto and WagonR, off-roader
Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa, Swift and Luxury
SUV Grand Vitara XL7.

In recent years, Maruti has made major strides towards its goal of becoming
Suzuki Motor Corporation's R and D hub for Asia. It has introduced upgraded
versions of WagonR, Zen and Esteem, completely designed and styled in-
house.
Maruti's contribution as the engine of growth of the Indian auto industry,
indeed its impact on the lifestyle and psyche of an entire generation of Indian
middle class, is widely acknowledged. Its emotional connect with the
customer continues

Maruti tops customer satisfaction again for sixth year in a row according to the
J.D. Power Asia Pacific 2005 India Customer Satisfaction Index (CSI) Study.
The company has also ranked highest in India Sales Satisfaction Study.

The company's quality systems and practices have been rated as a "benchmark
for the automotive industry world-wide" by A V Belgium, global auditors for
International Organisation for Standardisation. In keeping with its leadership
position, Maruti supports safe driving and traffic management through mass
media messages and a state-of-the art driving training and research institute
that it manages for the Delhi Government.

The company's service businesses including sale and purchase of pre owned
cars (TrueValue), lease and fleet management service for corporates (N2N),
Maruti Insurance and Maruti Finance are now fully operational. These
initiatives, besides providing total mobility solutions to customers in a
convenient and transparent manner, have helped improve economic viability
of The company's dealerships.

The company is listed on Bombay Stock Exchange and National Stock

Exchange.

The objectives of MUL then were:

• Modernization of the Indian Automobile Industry.
• Production of fuel-efficient vehicles to conserve scarce resources.
• Production of large number of motor vehicles which was necessary for
economic growth.

Production / R & D

Spread over a sprawling 297 acres with 3 fully-integrated production facilities,

the Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In
fact, on an average, two vehicles roll out of the factory every minute. And it
takes on an average, just 14 hours to make a car. More importantly, with an

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incredible range of 11 models available in 50 variants, there's a Maruti Suzuki
made here to fit every car-buyer's budget. And dream.

OTHER PRODUCTS OF
MARUTI SUZUKI

MODEL TYPE
Maruti 800 Small

• Maruti 800 STD BS III

• Maruti 800 AC BS III

Omni Small

• 5 seater Maruti Omni

• 8 seater Maruti Omni

• LPG Maruti Omni

Maruti Alto Small

• Alto

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 • Alto Lx

• Alto Lxi
Maruti Zen Mid-Size

• Maruti Zen Lx
• Maruti Zen Lxi

• Maruti Zen Vxi

Wagon R Mid-Size

• WagonR Lx
• WagonR Lxi
• WagonR Vxi
• WagonR Ax

Versa Mid-Size

• 5 seater

• 8 seater ( DX & DX2)

Maruti Esteem Mid-Size

• Maruti Esteem Lx
• Maruti Esteem Lxi

• Maruti Esteem Vxi

Baleno Mid-Size

• Baleno Sedan VXi

• Baleno Sedan LXi

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 BIT ABOUT MARUTI UDYOG LTD.

COMPETITORS OF MARUTI UDYOG LTD.

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 COMPETITORS OF MARUTI SUZUKI SWIFT
1. HYUNDAI SANTRO 1.1 CRDI:
When Hyundai launch the Santro’s replacement in
2007, it will come with the surprise addition of a 1.1
litre common rail diesel. Likely to be the cheapest car on sale powered by a
CRDi engine, this motor is the new Accent’s CRDi unit less one cylinder.
Incredibly powerful for its size, this 1,120cc engine produces a whopping
75bhp. Unconfirmed reports talk of overall figures, city and highway
combined, in excess of 20 kilometres a litre.

2. HYUNDAI GETZ 1.5 CRDI:

Not as attractive as the Swift, but more practical, with greater rear seat
comfort and more useable space, Hyundai’s diesel assault continues up the
range with its large hatch. The Getz will share its motors with the new
Accent/ Verna. Hyundai sell the Getz powered by a detuned version of the

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new Accent motor in the European continent, and it’s likely to be the case here
as well. Producing 87bhp as against 108bhp, using two versions of the same
engine will help Hyundai get a handle on costs. The diesel Getz also qualifies
for excise sops, meeting both length and engine capacity criteria.

3. TATA INDICA 1.3 MULTIJET:

By the time the larger new Indica is out, the Tata-Fiat tie-up will be going full
throttle. Tata will borrow engines from Fiat with, you guessed it, the 1.3 litre
Multijet being the engine of choice. Thoroughly localised, cheaply assembled
and very capable, it will give the new Indica/ Indigo family a huge leap
forward as far as overall ability is concerned.

MARKETING MIX

4P’s OF MARUTI SUZUKI SWIFT

 PRODUCT

 PRICE

 PROMOTION

 PLACE

PRODUCT

Features:

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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. Styled with 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 presence and class-
defining ride quality. New chassis systems allow for the front suspension lower
arms, steering, and 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 levelling
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 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 coloured A & B pillars, 12v accessory socket in centre 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

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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, coloured outside door mirror
cowls, coloured outside door handles, 12v accessory socket in luggage room,
driver seat height adjuster, central door locking (5 doors), seat belts 3-point
ELR with shoulder adjusters, seat belts front 3-point ELR with pretensioning,
tailgate opener electromagnetic type etc.

 PRICE
Maruti is expected to take Hyundai heads on with the pricing of their
upcoming Maruti Suzuki Swift car. After launching cars for the masses since
so many years, India’s largest automobile manufacturer is now targeting the
premium segment with their 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 of pricing Suzuki Swift at a
considerable lower price than Hyundai Getz, they would quite likely force the
competition to rethink their strategy.

Non
Metallic
Variant Metalli
Price
c Price
Swift LXi 416485 416485

Swift VXi 443924 443924

Swift VXi
464962 464962
(ABS)

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  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 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 Rs.1,524.2 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.

The engine and the transmission plant has owned by Suzuki Power train India
Limited in which Suzuki Motor Corporation would hold 51 per cent stake and
Maruti Udyog holding the balance.

The ultimate total plant capacity is three lakh diesel engines. However, the
initial production is 1 lakh diesel engines, 20,000 petrol engines and 1.4 lakh
transmission assemblies.

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SW OT ANALYSIS OF M AR UT I U DYOG LTD .

 STRENG THS
 WEAKNES SES
 OPPUR TUN ITI ES
 THREA TS

 STRENG THS

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

24
design, content, layout and performance of vehicles across 8
parameters.

A Buying Experience like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms

across 189 cities, with a workforce of over 6000 trained sales personnel
to guide our customers in finding the right car. Our high sales and
customer care standards led us to achieve the No.1 nameplate in the
J.D. Power SSI Study 2004.

Quality Service across 1036 Cities

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.

WEAKNES SES

25
  OPPUR TUN ITI ES

Leading Growth

As the market leader, MUL led the growth in the passenger car sector
last year. Maruti's sales went up 30% to 4,72,000/- units. This is the
highest annual sale since the company began operations 20 years ago.
Maruti also gained market share, mainly on account of its performance
in the competitive A2 segment where it increased its share from 40.3%
in 2002-03 to 47.7% in 2003-04.

The record sales performance was reflected in the financials. Net Sales
(excluding excise) grew by 31% to Rs 93,456 million. Operating Profit
Margin increased from 0.8 % in 2002-03 to 4.7 % in 2003-04. Profit After
Tax jumped 2700 million to Rs 5421 million.

MUL is committed to motorising India. Towards this end, company's

partnership with State Bank of India and its Associate Banks took
organised finance to small towns to enable people to buy Maruti cars.

26
  THREA TS

THREATS FROM COMPETITORS

Tata Motors Limited

In the 2004 fiscal year, Tata Motors generated revenues of $3,542.2 million
(INR154,935.2 million). The company made a net profit of $185 million
(INR8,103.4 million) in the 2004 fiscal year.

General Motors Corporation

For the fiscal year ended December 2004, GM generated revenues of $193,517
million, an increase of 4.3% from the previous year. The company reported a
net income of $2,805 million for fiscal 2004, down 26.6% from the previous
year.

PRODUCT LIFE CYCLE

27
Introduction:

As a new product much time will be spent by the organisation to create

awareness of it presence amongst its target market. Profits are negative or low
because of this reason.

Growth:

If consumers clearly feel that this product will benefit them in some ways and
they accept it, the organisation will see a period of rapid sales growth.

Maruti Suzuki Swift stands on Growth Stage. As the sales of Maruti Suzuki
Swift is high as compare to Hyundai Getz then the consumer will buy Maruti
Suzuki Swift by providing them with great benefits in future and they will
accept it.

28
Cash Cows:

High Market Share / Low Market Growth

Here, you’re well-established, so it’s easy to get attention and exploit new
opportunities. However it’s only worth expending a certain amount of effort,
because the market isn’t growing and your opportunities are limited.

Maruti Suzuki Swift stands on Cash Cows where they have established their
brand in the market. Of which they can exploit new opportunities. They have
opportunities to expand their product more in the market. As they have
expanded globally in the global market.

NEW MODEL OF SWIFT

29
Swift Dzire - is that the name of the Maruti Swift
sedan which will replace the Esteem?

Maruti Suzuki Dzire, the replacement for old warhorse Maruti Esteem is on
cards. Maruti is expected to unveil the Suzuki Dzire at the Auto Expo in New
Delhi.

Basically, the Suzuki Dzire will be the sedan version of the hugely successful
Suzuki Swift. Maruti has been planning for a while to bring in a 3-box version
of the Swift, and the Dzire may be the answer.

Though the Dzire will be essentially the Maruti Suzuki Swift in a sedan avatar,
the company is planning modifications in the headlamps, front grille and
bumper design to make the car not look like a Swift with a tail. Unlike the
Suzuki Swift which is made in several countries, Maruti Suzuki plans to build
the Suzuki Dzire only in India. The Dzire may be exported to several countries.

Maruti Suzuki has been phasing out older 3-box models and bringing in new
global products to replace them. The Maruti Suzuki Baleno was the first to go
out, to be replaced by the Maruti Suzuki SX4. The next in line seems to be the
Maruti Esteem, one of the longest selling cars from the Maruti stable. The car,
which initially made a feeble appearance as the Maruti 1000, went in for a
complete overhaul and reappeared as the Maruti Esteem. With minor cosmetic
changes, Maruti has been successfully selling the sedan for 14 years now.

The Suzuki Dzire is likely to offer both petrol and diesel options, in 1.3 litre
engines. The car is likely to come with ABS, power steering, fog lamps and
automatic climate control systems.

30
Maruti Suzuki has launched the Swift Dzire, its seventh model in three years.
Priced in the introductory range of Rs.4.49 lakh to Rs.6.7 lakh (ex-showroom,
Delhi), the Maruti Suzuki Swift Dzire has both diesel and petrol variants,
powered by 1.3-litre engines. While the petrol variant will cost between
Rs.4.49 lakh and Rs.5.9 lakh, the diesel version will carry a price tag of
Rs.5.39-6.7 lakh.

Complete with an integrated stereo, steering-mounted audio controls,

automatic climate control, power windows and dual airbags, The Swift Dzire
looks like a terrific buy - for now. This is because the Maruti Suzuki Swift Dzire
may prove to be costly for buyers who opt to wait for a bit before buying the
Swift Dzire. Rising input costs, especially that of steel and petroleum products,
are putting pressure on the margins and it is expected that Maruti Suzuki
might hike the price of the Swift Dzire.

The Dzire is an India-only model as far as we know. It appeals to the Indian

preference for seans over hatchbacks. At the current price, the Dzire will take
on the various Tata Indigos, the Mahindra Logan, Ford Fiesta - appropriately
enough. After all, it is a car that would replace the ageing Maruti Esteem.

31
There are many who have expressed reservations about the looks of the Swift
Dzire though. It looks a bit odd, definitely, from certain angles. Not that it is
going to matter to an Indian buyer.

Maruti Suzuki expects that with growing incomes and better lifestyles, many
households would want to upgrade to a sedan. Maruti maintains that the Swift
DZire is an entry-level sedan offering style, features and performance at an
attractive price.

Meanwhile, Maruti Suzuki plans to launch its Maruti A-Star in October 2008.
The Maruti A-Star is expected to join Maruti Suzuki’s existing products
WagonR and Zen Estilo. Maruti also plans to export the A-Star model to the
European market as well.

32
Showrooms of Maruti in Delhi;

• Allianz Automobiles:
Kamal Cinema Building, Safdarjung Enclave,
New Delhi
Telephone: 91-11-26104693, 26183785
E-Mail: aalianz@satyam.net.in

• Apra Auto India Private Limited:

K-804/2 Mahipalpur, Vasant Kunj Road, New Delhi.
Telephones: 91-11-42390000, 41009900
Fax: 91-11-52390088
E-Mail: apravk@apraauto.net

• Bagga Link Motors Private Limited:

395, Patparganj Industrial Area, New Delhi.
Telephones: 91-11-22169111, 22169555, and 22169222
Fax: 91-11-22141133
E-Mail: bim@del2.vsnl.net.in

• Competent Automobiles Company Limited:

48, Ring Road, Lajpat Nagar IV, New Delhi.
Telephone: 91-11-26917814 Fax: 91-11-26830306
E-Mail: cacllp@mnatraonline.com

• Competent Automobiles Company Limited:

14, Competent House, Middle Circle, Connaught Place, New Delhi.
Telephones: 91-11-23355285/86/87, 23354572/73/74, 23328009
E-Mail: competent@del6.vsnl.net.in

• Competent Automobiles Company Limited:

19, Shivaji Marg, New Delhi.
Telephones: 91-11-25925261, 25925329, and 25930611
E-Mail: competent@del6.vsnl.net.in

• Competent Automobiles Company Limited:

3, Gazipur, Delhi( East), Delhi.

33
 Telephones: 91-11-22446551, 22217774, and 22446552
Fax: 91-11-22446553
E-Mail: competent@del6.vsnl.net.in

• D D Motors:
100, Mayapuri Phase II, New Delhi.
Telephone: 91-11-41845000, 28116502, and 28115403
Fax: 91-11-28113505
E-Mail: ddinfo@ddmotors.net

• DDMotors:
5, Wazirpur Industrial Area,
Near Wazirpur Bus Depot, New Delhi.
Telephone: 91-11-27153999, 41843000
Fax: 91-11-27151466
E-Mail: ddnorth@bod.net.in

• D D Motors Private Limited:

F 1/9, Okhla Industrial Area, Phase 1, New Delhi.
Telephone; 91-11-40523000
E-Mail: dd.south@ddmotors.net

• Fair Deal Cars Private Limited:

485-A, Jhilmil, Main G.T.Road, Shahdara, New Delhi
Telephone: 91-11-22119626/27
Mobile: 9910894050
E-Mail: fairdealcars@rediffmail.com

• Gautam Motors Private Limited:

E-46/14, Okhla Industrial Area, Phase-II, Main Kalkaji Road, New Delhi
Telephone: 91-11-41613879, 28613880, 28613879
Fax: 91-11-26921189
E-Mail: gautam_sh@eth.net

• Krish Automotors Private Limited:

Mam Ram Majesty Mall, Plot Number 2, Road Number 43, Guru
Harkishan Marg, Pitampura, New Delhi
Telephone: 91-11-32435050
E-Mail: krishautomotors@yahoo.co.iN

34
• Marketing Times Automobiles Private Limited:
A-1, Chirag Enclave, New Delhi
Telephone: 91-11-26292629
E-Mail: Maruti@marketing-times.com

• Marketing Times Automobiles Private Limited:

Vishal Cinema Complex, Vishal Enclave, Rajouri Garden, New Delhi
Telephone: 91-11-25112222
E-Mail: vishal@marketing-times.com

• Maruti Service Master:

F-39, Okhla Industrial Area, Phase-2, New Delhi
Telephone: 91-11-41612194, 41612195

• Pasco Automobiles:
A-1, Udyog Nagar, New Rohtak Road, Peeragarhi, New Delhi
Telephone: 91-11-25963535
E-Mail: pasco@vsnl.net

• Rana Motors Private Limited:

Rikhi House A 2/7, Safdarjung Enclave Opposite Bhikaji Cama Place,
New Delhi.
Telephone: 91-11-26712222 (10 Lines)
Fax: 91-11-26711320
E-Mail: ranamotors@vsnl.in

• Rana Motors Private Limited:

Tis Hazari Metro Station, Boulevard Road, New Delhi.
Telephone: 91-11-23972222
E-mail: ranamotors@bol.net.in

• Rohan Motors Limited:

A-15, Mohan Co-operative Industrial Area, Mathura Road, Delhi
Telephone: 91-11-41679303/04, 41678695,
Fax: 91-11-51679302
E-Mail: rminewdelhi@touchtelindia.net.in

• Saya Automobiles Limited:

A-21-22, G.T.Karnal Road, Industrial Road, Industrial Area, New Delhi,
Telephone: 91-11- 27231955-57, 27231960, 27251402/03

35
 Fax: 91-11-27216900
E-Mail: saya@ndb.vsnl.net.in

• Sikand & Company:

50, Janpath, New Delhi.
Telephones: 91-11-23320450, 23310364, 23326508
Fax: 91-11-23313765
E-Mail: hds@ndf.snl.net.in

• T R Sawhney Motors Private Limited:

33 & 34, Harichand Melaram Complex, East Gokulpur, Wazirabad
Road, New Delhi.
Telephones: 91-11-22816777, 22816533, and 22816733
E-Mail: trsawhney@sawhney.net.in

• T R Sawhney Motors Private Limited:

B-5, Industrial Area Phase-1, Badli Opposite Sector-18,
Telephone: 91-11-27853094
E-Mail: trsawhney2@sify.com

Research Methodology:

36
Research methodology is considered as the nerve of the project. Without a
proper well-organized research plan, it is impossible to complete the
project and reach to any conclusion. The project was based on the survey
plan. The main objective of survey was to collect appropriate data, which
work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods
but also logic behind the methods used in the context of a research study
and it explains why a particular method has been used in the preference of
the other methods
Research design:
Research design is important primarily because of the increased
complexity in the market as well as marketing approaches available to the
researchers. In fact, it is the key to the evolution of successful marketing
strategies and programmers. It is an important tool to study buyer’s
behaviour, consumption pattern, brand loyalty, and focus market changes.
A research design specifies the methods and procedures for conducting a
particular study. According to Kerlinger, “Research Design is a plan,
conceptual structure, and strategy of investigation conceived as to obtain
answers to research questions and to control variance.
Type of Research is:
• Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies
are undertaken in many circumstances when the researches is interested to
know the characteristic of certain group such as age, sex, education level,
occupation or income. A descriptive study may be necessary in cases
when a researcher is interested in knowing the proportion of people in a
given population who have in particular manner, making projections of a
certain thing, or determining the relationship between two or more

37
variables. The objective of such study is to answer the “who, what, when,
where and how” of the subject under investigation. There is a general
feeling that descriptive studies are factual and very simple. This is not
necessarily true. Descriptive study can be complex, demanding a high
degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be
flexible in its approach, but a descriptive study in contrast tends to be
rigid and its approach cannot be changed every now and then. It is
therefore necessary, the researcher give sufficient thought to framing
research.
Questions and deciding the types of data to be collected and the
procedure to be used in this purpose. Descriptive studies can be divided
into two broad categories: Cross Sectional and Longitudinal Sectional. A
cross sectional study is concerned with a sample of elements from a given
population. Thus, it may deal with household, dealers, retail stores, or
other entities. Data on a number of characteristics from sample elements
are collected and analyzed. Cross sectional studies are of two types: Field
study and Survey. Although the distinction between them is not clear- cut,
there are some practical differences, which need different techniques and
skills. Field studies are ex-post-factor scientific inquiries that aim at
finding the relations and interrelations among variables in a real setting.
Such studies are done in live situations like communities, schools,
factories, and organizations.
Another type of cross sectional study is survey result, which has been
taken by me. A major strength of survey research is its wide scope. Detail
information can be obtained from a sample of large population .Besides; it
is economical as more information can be collected per unit of cost. In
addition, it is obvious that a sample survey needs less time than a census
inquiry. Descriptive research includes survey and fact finding enquiries of

38
different kinds of the major purpose. Descriptive research is description of
the state of affairs, as it exists at present. The main characteristic of this
method is that the researcher has no control over the variables; he can
only report what has happened or what is happening. The methods of
research utilized in descriptive research are survey methods of all kinds
including comparative and co relational methods. The reason for using
such needs to be flexile in its approach, but a descriptive study in contrast
tends to be rigid and its approach cannot be changed ever now and then.

OBJECTIVES OF THE STUDY

39
1. To find out the market share of Maruti Suzuki swift
2. To study competitors of Maruti Suzuki swift
3. To study the marketing strategies of Maruti Suzuki swift
4. To study the strength, weakness, opportunity, and threats (swot -
- analysis) of swift.
5. To study the customer satisfaction regarding Maruti Suzuki cars
6. To study the comparison of swift and swift dzire.

Data collection tools:

After the research problem, we have to identify and select which
type of data is to research. At this stage; we have to organize a

40
field survey to collect the data. One of the important tools for conducting market
research is the availability of necessary and useful data.
Primary data: For primary data collection, we have to plan the following four
important aspects.
 Sampling
 Research Instrument
 Secondary Data - The Company’s profile, journals and various literature
studies are important sources of secondary data.
 Data analysis and interpretation
1. Questionnaires
2. Pie chart and Bar chart

Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains question
that the researcher wishes to ask his respondents which is always guided by the
objective of the survey.
Pie chart:
This is very useful diagram to represent data, which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors, which
are proportional to the values they represent. The total value is represented by the full
create. The diagram bar chart can make comparison among the various components or
between a part and a whole of data.

Bar chart:
This is another way of representing data graphically. As the name implies, it consist of
a number of whispered bar, which originate from a common base line and are equal
widths. The lengths of the bards are proportional to the value they represent.

LIMITATIONS:-
Every study has certain limitations. In my study, also there were certain limitations,
which I could not able to solve.

41
 1. The research was conducted in a very small area.
2. My research work period witness the biggest ups and downs in product sale of
only one brand, which affected the perception of the customer. This was
biggest drawback of my study.
3. Time factor was also important for me.
4. I had only found the upper-middle class family to fill up the questionnaire, but
generally, an average middle class family was required for the study.
5. The sample size is also very small which represent my research on consumer
behaviour.

ANALYSIS:-

42
Q1. Have you ever purchased any car of Maruti Suzuki?
 Yes

 No

60

50

40
Yes
30
No
20

10

Q.2 While purchasing car which feature influence you?

 Price

 Product feature Price

15% 25%
 Brand 10% Product Feature
Brand
 Service Service
20%
30%
 Durability Durability

43
Q3. From where you prefer buying a second hand car?
 Through advertisement
 Dealers
 Showroom

40
35
30
25 THROUGH ADVERTISEMENT
20 DEALERS
15 SHOWROOMS
10
5
0

Q.4.You prefer to buy from the same as you have mentioned in Q.3
because of following reasons
 Attractive Price

 Service
 Demonstrations 30% Attractive Price
Service
 Offers 55% Demonstration
5%
Offers
10%

44
Q.5.Which Car of Maruti of do you have?
 SWIFT

 SWIFT DZIRE

 ESTEEM

 MARUTI800

 ALTO

50

40 SWIFT

30 DZIRE
ESTEEM
20
MARUTI800

10 ALTO

Q.6. How frequently you change your cars?

 1-3 years
1-3 years
5% 15%
 3-5 years 3-5 years

45% 5-10 years

 5-10 years 35%
More than 10
years
 More than 10 years

Q.7. Which bank do u prefer for financing the car?

45
  HDFC

 ICICI

 AXIS BANK

 PUNJAB NATIONAL BANK

50

40
HDFC
30
ICICI
20 AXIS
PNB
10

Conc lu si on and recommenda tions

46
 a) Maruti should improve it’s after sale service because its hits

badly car market share.

b) More detailed customaries service is to be provided.

c) Show room demonstration should be given at frequent time

interval and feed back should be considered positively.

d) The company should look into the matter of person hiring for

in showroom demonstration. A big showroom should have at

least 5 such kind of person.
e) As there is a bottle neck competition between Hyundai and

Maruti, it is necessary to take measure steps to overcome the

area of downfall in Maruti with respect to Hyundai.
f) The marketing managers should make better relations with
dealers and reputation of the company.
g) Customer considers quality as their first preference, so the
company should give more stress on this.
h) The product is well aware and it is on top of mind of
customer. So company should always improve services and
update their technology.

ANNEXURE

BIBLIOL OGY

47
www.marutisuzuki.com

www.managementparadise.com

www.carwale.com

Autocar Magazine

QUES TIONN AIRE

48
Q1. Have you ever purchased any car of Maruti Suzuki?

 Yes

 No

Q.2 While purchasing car which feature influence you?

 Price

 Product feature

 Brand

 Service

 Durability

Q3. From where you prefer buying a second hand car?

 Through advertisement

 Dealers

 Showroom

49
Q.4.You prefer to buy from the same as you have mentioned in Q.3
because of following reasons
 Attractive Price

 Service
 Demonstrations
 Offers

Q.5.Which Car of Maruti of do you have?

 SWIFT

 SWIFT DZIRE

 ESTEEM

 MARUTI800

 ALTO

Q.6. How frequently you change your cars?

 1-3 years

 3-5 years

 5-10 years

 More than 10 years

50
Q.7. Which bank do u prefer for financing the car?

 HDFC

 ICICI

 AXIS BANK

 PUNJAB NATIONAL BANK

51