MARKETING STRATEGIC ANALYSIS OF

MARUTI SUZUKI

CHAPTER – 1
INTRODUCTION
Maruti Suzuki India Ltd is the main maker of cars in India started in the year 1983 with the
main motive to provide the motors to India. Maruti is the joint agreement between the
Administration of India and the Suzuki Motors partnership, Japan. Maruti has developed its
entity and has become the biggest vehicle making company and it remained till 2004. Maruti
company has started it with the Suzuki by the holding of some stakes and the Government of
India has holded some stakes.
In recent days, while Ambassador and Prime Minister Padmini dominated the Indian car
market, Maruti Suzuki India Limited has been engaged in the Indian auto sector with a
different strategy. The company's strategy made that they will provide a compact and modern
and economical car. Maruti released the first Maruti 800 on December 14, 1983 to meet the
needs of Indian customers. Since 1983, Maruti Suzuki offers its customers various options in
different segments.
Maruti started to make some changes on their working. Company focused on the
improvement of its working efficiency, by increasing the capacity by providing the best
information technology and new innovative techs and specs in the cars provided to its
customers at a regular interval along with venturing into other related businesses like car
finance, insurance. Realizing the potential of the used automobile market, Maruti Suzuki
established Maruti True price in 2001.
ABOUT MARKETING STRATEGIES
A marketing strategy is more effective if it is an integral part of the business strategies and
defines how organization will succeed in bringing together customers, prospects and
competitors in the marketplace. Since the customer is the source of revenue for a company,
the marketing strategy is closely linked to the sale.
Marketing strategies help the company understand and communicate with customers.
Marketing and advertising strategies are also important to help the company set financial
goals. Marketing strategies also help businesses make full use of their resources to increase
sales and win over their competitors. There are different types of marketing strategies.
Challenger, Leader and Follower are market dominance strategies. These strategies are used
to dominate the market.
Cost reduction, market segmentation and product differentiation are different generic porting
strategies. Portern generic strategies are based on strategic strength or competing capabilities
and strategic reach or market penetration. Close followers, late users and pioneers are
innovation strategies. Innovation strategies should accelerate product development and model
innovation. Diversification, intensification, vertical integration and horizontal integration are
growth strategies.

CHAPTER – 2
COMPANY’S PROFILE
MARUTI SUZUKI
Maruti Suzuki has expanded its product portfolio and expanded its sales and service network
to India. In the face of increasing competition, Maruti Suzuki has decided to supply all
segments of the Indian car market. The company not only brings new models to the market,
but also upgrades its existing models in an innovative and fast way. Market segmentation is
an important step in the marketing strategy. Maruti Suzuki offers cars for various segments -
such as the small Maruti 800, the Maruti Omni, the Maruti Omni, the Maruti Zen, the Swift
and the Swift Dzire, the Sports Utility SX4. Grand Vitara vehicle. Maruti knew that he would
not be able to compete in the marketplace not only by price, but also by style, packaging,
popularity of promotions, distribution methods, and superior service. The chairman of the
company is Mr. R.C Bhargava and the Managing Director and CEO is Mr. Kenechi
Ayukawa.
The company has been involved in the business of manufacturing, sale and purchase of
motors cars and its service parts. The company has its four plants namely located at Gurgaon,
Haryana, Palam Gurgaon Road, Manesar.
Maruti Suzuki Company has its nine subsidiary companies, namely True Value, Maruti
Insurance Broker Ltd, Maruti Insurance Business Agency Ltd, Maruti Insurance Distribution
Services Ltd, Maruti Insurance Agency Logistics Ltd, Maruti Insurance Agency Services Ltd,
JJ Impex Pvt Ltd.
The company has offered a wide range and full range of cars from its base segment to its higher
segment.
The car Segments are –
 Maruti 800
 Alto
 Wagon-R
 Omni van
 Zen
 Swift
 A-star
 Ritz
 Swift Dzire
 Celerio
  SX4
 Ertiga
 Ciaz
 S-Cross
 Vitara Brezza
Above mentioned names of the cars are the segments and the models that are being offered by
the company to its customers. The Maruti Suzuki company offers a lot of features in their cars.
They are being well known for their best sales and their services.

OBJECTIVES OF THE STUDY

The present marketing strategy study of the Maruti Suzuki goes around the following
objectives: -
 To study the evolution and growth of the Maruti Suzuki Pvt Ltd in the context of the
automobile industry.
 To study the growth strategy of the Maruti Suzuki Pvt Ltd and the marketing methods
followed it in the regard.
 To study the small car revolution in India and the contribution of the Maruti Suzuki
Pvt Ltd to it.

CHAPTER - 3
SWOT ANALYSIS

STRENGTHS-
 It has a strong brand image.
 It has a range of the diversified products.
 It provides and has a well-diversified network.
 The company has a good market share and hence provides good after sales service
which is a major revenue.
 The company beats its competitors with its small segment cars.

WEAKNESS-
 The company is incapable to capture the share market in the SUV’s.
 The company offers some lower quality interior.
 The company is somewhere not enable to penetrate in the international market.
 OPPORTUNITIES-
 Increase in the purchase power.
 Make in India campaign.
 Developing hybrid cars.
 Company has launched CNG version of Wagon-R which has resulted in
increase.
 Maruti Suzuki Dzire has increase the share and is capable to cover the market.

THREATS-
 Substitute mode of transport.
 It has the competition from the international market players like Ford, Honda.
 Competitors in the market spends more on the Advertising to enhance the
sales.

MARKET SHARE OF MARUTI SUZUKI

As according to the vehicle sales in the year July 2018, Maruti Suzuki is able to
recover its share of the wholesale market from 48.4% in the October with an
increase up to 54% of share in the month of December.
The competitors’ sales have decreased in comparison with the sales of the Maruti
Suzuki in its small car segments. The competitors Hyundai, Honda etc. has
decreased in the market share by 4% in the last month with an increase of the
Maruti’s sales.
Maruti posted an increase of around 5 percent in the domestic sales at 143,890
units in November as against 135,948 units in October this year.

Domestic Sales and market share October Market November Market

(2018) Share Share
Maruti Suzuki 135,948 48% 143,890 54%
Hyundai 52,001 18% 43,709 16.4%
Honda 14,233 5% 13,006 4.8%
Mahindra 24,056 8.46% 16,191 6%
Tata Motors 19,539 6.8% 18,226 6.8%
 Ford 9,044 3.1% 6,375 2.3%
Toyota Kirloskar Motors 12,606 4.4% 10,721 4%

The company has provided a huge discount in the December sales with the bonus to its
customers and with a good service. As Maruti has increased its discount the market got swing
in the way towards their car segments decreasing the sales of its rivals.
The recent launch of the Maruti Suzuki Ertiga (New Gen) results in the increase of the sales
in the MPV segment.
 CHAPTER -4
MARKETING MIX OF MARUTI SUZUKI
Marketing mix analyses the brand which covers the 4P’s i.e. (Product, Price, Place,
Promotion.)
PRODUCT
Maruti Suzuki India has a differing item portfolio and is available in such classifications of
vehicles as hatchback, supermini, SUV, car and van. The whole item arrangement of vehicles
is a piece of the items in the advertising blend of Maruti Suzuki. Its items are Maruti Alto,
Celerio, Wagon R, Maruti Quick, Baleno, Maruti Wanderer, Eeco, Maruti Ciaz, Ertiga,
Dzire, S Cross, Ignis and Maruti Omni. In many classifications its vehicles are portion
pioneers and valued intensely.

Maruti Suzuki produces 1.5 million vehicles every year with 15 vehicle models and a sum of
150 variations. In January 2016, Maruti Suzuki India had an all-out piece of the overall
industry of 47% among all traveller vehicles sold.

Maruti additionally offers administrations, for example, Maruti fund, Maruti Protection,
Maruti Genuine Esteem (utilized vehicles), Maruti Embellishments and Maruti Driving
School to advance the development of its bottom-line.

PRICE
Maruti Suzuki has been the value of money for its good key driver for the volume of its sales.
Maruti is able to cut down of its prices in cutting down the competition by 7 to 10%. It has
the low-cost engineering services provided for the years with the light weight safety cars.
Maruti is always known for its low cost of ownership, affordable spares, and the services
provided by the company to its customers. This is the main reason that the Maruti gets an
edge to make it’s a popular car company.
Maruti’s pricing strategy is mainly depend on the competition of the different segments and
the dynamics.
PLACE
Maruti’s service network has been situated at the different sates of India and has been spread
across 1300+ cities manufacturing the cars at 2 factories, Manesar and Gurgaon with an
annual settlement of 14 lakh cars per annum.
Maruti has also decided and planned to setup the plant in Gujrat which needs a more acres of
land. It has approx. 1500+ outlets and the dealership in different states which is more than its
competitors. The services provided to its customers is more flexible as it has more service
centres in the different cities and provide good service at all its places.
 PROMOTION
After the survival and getting the best results having there many years Maruti uses its brand
to increase the sales. It provides the customer a good discount to provide them benefit and to
increase their sales and get promoted. It uses the different strategies by getting its car
segments advertised by the different celebrities for their promotion.
Maruti has now used online advertisement for the launch of its Brezza, Ignis and S-Cross. It
has used the celebrity to introduce their cars with the use of Above the Line, Below the Line,
Television, Radio and Advertisement through Websites by providing the good offers and the
messages to the audience for its vehicles. Consequently, a 360-marking approach is followed
in the limited time system of advertising blend of Maruti. Along these lines, this abridges the
promoting blend of Maruti Suzuki.

SEGMENTATION, TARGETING AND POSITIONING OF MARUTI SUZUKI

SEGMENTATION
1) Geographical Segmentation- It has a country wise reach.
2) It is used in urban and semi urban areas.

3) Demographic Segmentation – It has been divided into the 3 segments based on the
income of the customers.

The income wise segment is follows as under –

2- 5 Lakhs 5-8 Lakhs Above 8 Lakhs
Alto 800 Swift Ciaz
K10 Dzire Ertiga
Celerio Baleno S-cross

The segment is also divided on the basis of the family members and the size of the family.
 Large
 Small

4) Psychographic Segmentation – It focuses the middle-class people.

5) Behavioural Segmentation – It has been divided into two categories –

1. Benefit Sought.
 2. Usage Rate / Frequency.

 Benefit Sought: It has been diversified into the different categories: -

 Road Warriors- Ciaz is the segment car of the company which has many rivals
and has resulted increase in the sales.
 Generation – Celerio
 Price Shoppers – Alto 800

 Usage Rate/ Frequency – It has been divided into the 3 categories: -

 Heavy Product Use – Diesel
 Medium Product Use – Petrol/Diesel
 Low Product Use- Petrol

TARGETING
Maruti is portioned additionally based on pay bunches present in the nation for
example the general population having a pay of 3 lakhs for every annum
consider autos of economy go which are Alto, Omni, Wagon-R. Individuals
falling in the salary scope of 3-5 lakhs for each annum consider the mid-run
fragment of Maruti autos incorporate A-Star, Swift, Ritz.

The general population with a salary in excess of 5 lakhs for every annum
primarily consider vehicles in extravagance and premium fragment of Maruti
Suzuki autos, for example, SX4, Swift, Swift Dzire and Ciaz.

The general population with a pay in excess of 8 lakhs for each annum
fundamentally think about vehicles in extravagance, MUV and Small SUV's,
for example, Ertiga, Vitara Brezza.

POSITIONING
 Alto – Let’s Go – positioned as an India’s most fuel-efficient car which can be
afforded by the lower income groups.
 Wagon-R – Inspired Engineering – positioned for people who lead interesting
lives. It gets with their lifestyle, reflecting confidence and multifaced
personality.
 Swift – You’re the fuel- positioned as a car with style, modern looks and
young attitude.
 Ritz – Live the moment – positioned for people who are technologically
inclined.
 Swift Dzire – The best car – positioned for the aspirational class as an entry
level sedan.
 SX4- Men are Back – positioned as powerful car for men who want to be in
control of the road.
 Ertiga- “A Feeling called LUV” – Life Utility Vehicle – positioned as a
compact seven-seater, one which will have a small footprint and a tight
turning radius.
 CHAPTER – 5

RESEARCH AND METHODOLOGY

A research design is simply the framework or plan for a study that is used as guide in collecting
and analysing the data. It is blue print that is followed in completing a study. “Research design
is the plan structure, and strategy of investigation conceived so as to obtain answer research
question and to control variance.”

METHOD OF DATA COLLECTION-

• SECONDARY DATA-

Secondary data analysis can be literally defined as “second-hand” analysis. It is the analysis
of data or information that was either gathered by someone else (e.g., researchers, institutions,
other NGOs, etc.).

In this project Secondary Data has been undertaken with care and diligence. Secondary data
analysis and review involves collecting and analysing a vast array of information.

The secondary data is being collected from:

• Case Study

• Books

• Internet

• Organizational Reports

CONCLUSION

Vehicle advertise today is exceptionally powerful and focused with a scope of players and
items. There are numerous explanations behind the expansion in the development of the
Indian traveller vehicle Industry. Some of them are effectively accessible of vehicle money,
alluring rate of premium and helpful portions. In the present challenge it is hard to endure.
Rivalry has constrained the makers to be inventive and receptive to client request and needs.
Maruti Suzuki India Limited is a main organization in Indian Automobile segment which
involves a decent spot because of its inventive vital showcasing, special and brand situating.
In today’s age the accomplishment of the organization lies in the organizing of the promoting
systems and development of new items and administrations.

The Maruti Suzuki has a tremendous market and has left no build up to fulfil the clients. It
has models in each portion of the car advertise. Maruti Suzuki represents an incentive as
much as it represents its execution. The organization attempts best to hold its rates and costs
down. Their running expenses and resale esteems are top notch and can has the low upkeep
cost. Aggressive technique of this organization encouraged sound benefit and consumer
loyalty and its acknowledgment as an organization which represents ecological concerns.

BIBLIOGRAPHY
1. Marketing strategy of Maruti Suzuki Ltd. – Journal
2. Annual report of Maruti Suzuki Ltd.
3. www.marutisuzuki.com
4. www.wikipedia.com
5. www.marketing91.com