International Journal of Mechanical Engineering and Technology (IJMET)

Volume 8, Issue 8, August 2017, pp. 86–93, Article ID: IJMET_08_08_011

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ISSN Print: 0976-6340 and ISSN Online: 0976-6359

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MARKETING STRATEGIES OF INDIAN

AUTOMOBILES COMPANIES: A CASE STUDY
ON AUTOMOBILE INDUSTRY
K Lakshmi Revathi
Institute of Aeronautical Engineering Dundigal, Hyderabad

Sreekanth Yerramilli
GITAM University HBS GITAM, Hyderabad

K. Vijaya Sekhar Reddy

Institute of Aeronautical Engineering Dundigal, Hyderabad

ABSTRACT:
In this period of Globalization companies are getting higher their production
behavior in different countries. In this process production faces pole apart challenge
where cultural barrier play a significant role. The businesses need to appreciate the
new marketplace culture and its enlightening elements which really matter for
production to design promotion strategy. This investigate has describe the cultural
fundamentals that affect automobile business approximately the world.
In this methodology used in the direction of find the trends and the marketplace
contribute to of the Indian auto portable industry. The investigate takes addicted to
account the went previous to and segments of the market with different versions
current the past and up to date trends in an financial system, and more especially in
an industry, to bring away from home an objective market investigation.
In this opposition, a promotion approach must aspire at being only one of its
kinds, degree of difference – creating and improvement – create. To get hold of unique
and degree of difference advantages, an association has to be alive creative in its
advertising policy. Today outstanding in the direction of innovative advertising
strategies Maruthi Suzuki has turn out to be one of the most important and largest
retailers of automobile in India. The companionship has adopted an assortment of
Brand position, Advertising, allocation strategies to take into custody the market.
Keywords: Brand position, Marketing, Distribution, Commercial vehicle, utility of
Vehicle
Cite this Article: K Lakshmi Revathi, Sreekanth Yerramilli and K. Vijaya Sekhar
Reddy, Marketing Strategies of Indian Automobiles Companies: A Case Study on
Automobile Industry, International Journal of Mechanical Engineering and
Technology 8(8), 2017, pp. 86–93.
http://iaeme.com/Home/issue/IJMET?Volume=8&Issue=8

http://iaeme.com/Home/journal/IJMET 86 editor@iaeme.com
 Marketing Strategies of Indian Automobiles Companies: A Case Study on Automobile Industry

1. INTRODUCTION:
The Marketing policy is an on the whole advertising approach that is second-hand to achieve
objectives of strategic advertising policy. The combine is a collection of variables which are
to be had to the purchaser. These consist of the manufactured goods or service itself (its
compensation) its ease of use (the position where and at what time it is accessible, delivered
or else distributed) in addition to its illustration (the method it is promote) and of route, the
price which should be misrepresented. Thus the marketplace strategy denotes the grouping of
various fundamentals, in which the total makes up a companies advertising organization.
They are often describe as four types course of action, product, cost of allocation and
promotion, sales encouragement publicity and advertising research).
The number of study has been undertake in the long-ago but still there exists a gap to
show signs of the potential unexploited passenger automobile marketplace in the Indian state
of affairs to use good judgment of the manufacturing on the road to the on the road to be had
in addition to potential car manufactures. The paper is to be an attempt to make an all-
encompassing situational investigation of such a state of affairs by compassionate out
manufacturing industry analysis of the Indian customer car business using the Porter’s five
armed forces investigation mode. It is predictable that conclusion of the study shall be of
assistance to the car manufacture in influential their expectations itinerary pertaining to the
grand and commercial level strategies in give the impression of being upon in the direction of
the Indian marketplace.

Objectives of the learning:

1. To knowledge the performance of explanation dramatis personae of Indian automobiles
industry.
2. To look into and evaluate the trend of key players of the automobile in industry
3. To study the factors contributing to the growth of the automobile industry.
4. To review the development of an Indian automobile sector
5. To appreciate the marketing strategy of Maruthi Suzuki India limited.

2. BRAND POSITION OF STRATEGY IN MARUTHI SUZUKI INDIA:

The Maruthi Suzuki passenger’s vehicles around 56.78% in India. The maruthi Suzuki India
limited a additional of Suzuki motor company of Japan, is India one of the biggest customer
cars company, secretarial for over more than 47.5% of household car market. The corporation
offers an entire range of cars starting level Maruthi-800, sylish hatchback, Alto, Swift, Ritz, A
star, stillo, Wagon-R and, SX4, Sedans Dzire and different types of Sports tility vehicle Grand
Vitara. Since the inception in 1983, Maruthi Suzuki India as formed a sold over 8.2 million
vehicles in India and exported over 500,000 units of Europe and supplementary countries. The
corporation revenue for the economic growth 2009-2010 stand over the USD 5.2 billion ad
earnings after tax at over USD 243 million.
There are more than a some of the branded cars is be positioning themselves resting on the
features like cost, console magnitude, Safety Mileage and safety measures etc., At this time
Maruthi Suzuki followed a extremely successful multi mind-set segmentation plan to take
hold of the pole in the apart segments in marketplace with a poles at a inaccessibility version
of its brand. In this area beneath discussion of the manufactured goods situation Mayank
Pareek says that, Maruthi Suzuki understand as true in do research and earlier than
introduction a item for consumption the Maurthi team does an wide-ranging delve into on the
needs of the customer. Maruthi Suzuki tries to identify with the regulars demography and
psychology to understanding of their brands.

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 K. Vijaya Sekhar Reddy, Sreekanth Yerramilli and Dr N. Roopalatha

Figure 1 Creating fulfilled satisfaction of Customers and Implementations of Selling Cars policy

3. TO CONSIDERATE INDIAN BUYERS:

In an Indian financial system, a fatherland with a population of more than a billion members
to offers marvelous market chance. With the increase in the income height and the rise in the
removal income and relative augment in the inclination to consume, has show the way to the
entry of the top MNC’s. The Indian bazaar is the large quantity promising marketplace in the
world, so in the Indian purchaser across the every one of socioeconomic section regions and
settlement classes. Increasing incomes, multiple proceeds households, exposure in the
direction of lifestyles and media, easier financial credit and an upbeat financial system are
enhancing aspiration and expenditure.
The research covers an assortment of aspects of Indian automobile market in addition to
gives a detailed investigation of its various segments such as a profitable vehicle, passenger
vehicle, utility vehicles and their multipurpose of different vehicles. In each and every section
concisely put in plain words the current and future marketplace trends, of developments in
Indian automobile marketplace. There are immense opportunities for various manufacturing
players including automobile manufactures and players of automobile machinery.
To understand the Indian market more closely, the research companies have divided the
consumer population in luxury markets into the following categories:
a) Worthless (Serviceable): This is those types of people who buy the luxury goods for
their superior functionality and high quality. These people purchase the goods on the
basis of logic rather than marking an emotional decision.
b) Customer Satisfaction: In this category, the main driving factors are the status of their
brand emblem. The decision to buy is for the most part driven to showcase their
prosperity. In people of their age between 32-38 years of age collection fall into this
grouping and are the main resource for increase in the sales of the luxury products.
c) Luxury: This category comprises of people who are youngest of all, mentioned above.
These people are based in certain regions of people.
It is also important to understanding the India the luxury brands have to critically
understand the mindset of the logical people and should deliver their product value
accordingly. Thus, do adopt the suitable strategy it is important for the companies to
understand the consumer behavior and buying criteria. Let us understand the other factors that
influences the buying the decision in Indian context.

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 Marketing Strategies of Indian Automobiles Companies: A Case Study on Automobile Industry

Figure 2. The Imaginary Research structure of efficiency of marketing strategy of Car Manufacturers

4. CHALLENGES FACED DURING THE INDIAN MARKET:

The dominance of a handful of automakers in India is for the nearly everyone part outstanding
to the large pleasant appearance of entry level compacts, which provide to first-time buyers.
Almost a on its own in two new cars sold is an entry level compact, boosted by government
incentives such as lower excise taxes for smaller cars and price-sensitivity of the lesser
affluent customer.
The Indian luxury automotive industry is exposed to several challenges the can restricts
the further demand of he product. While economic slowdown is likely assumed to affect the
demand of such products, but there are other factors that may affect the growth are discussed
below:

a) Lack of development of proper infrastructure:

As discuss greater than that ever since early 1990s the increasing economy has demanded for
the enlargement in public transportation infrastructure other than the setback is with the
intention of the recorded development has not coordinated with the predictable growth. The
case be same in the urban areas as in good health. The improper growth of transportation in
India has lead in the direction of the slow enlargement of the sector.

b) Increase in quantity of cases of Labour turbulence:

As a substance of fact that like any additional car section, this sumptuousness splitting up also
involves labour classes. Inspire that the automobile is imported but the diminutive parts are
affected in India in order to facilitate the routine compensation caused in the direction of the
car. The effects of strike adversely affect the business of full-size brands. Considering the

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 K. Vijaya Sekhar Reddy, Sreekanth Yerramilli and Dr N. Roopalatha

recent cases that of Maruthi Suzuki, where outstanding to beat the company has incurred the
loss of near about 1,50,000 units of cars. Another example, the three to four month strike took
place in the factory of General Motors in state of Gujarat again led to the heavy fatalities for
the company.

5. BRANDED IDENTIFIES THE MANUFACTURED GOODS

DIFFERENTIATION AND PURCHASER SWITCHING COSTS:
The branded of categorize is a critical barrier to opening level of exclusive far above the
ground quality of car brands contain its established particularly high brand impartiality value
more than a time. This is one of the major reasons why the customer is willing to pay first-
class price for it. Even though the barrier of this exclusive market is substation, there are
various ways in the county of this obstruction. The some of the companies are well
recognized in the automobile division may enter the new market (luxury cars) through
strategic partnerships or through buying out or merging with other companies. Maruthi
Suzuki India Limited, a subsidiary of Suzuki motors corporation of Japan in India’s largest
and leading person along for the ride automobile companies which presently hold a share of
over 45 percent of the domestic car market, despite the entry of many multinationals over the
years, post liberalization. Although, in recent segment have emerged as key players in Indian
passenger Vehicles as well with a market share of 18.34 percent.
1. Maruthi 800: To taking into consideration the middle class and small family the
Maruthi-800 was started. The automobile (car) was in addition targeted at the inner-city
professionals. It was predictable as a automobile with smallest amount continuance needs and
by earnings of better petroleum efficiency. Afterward the company additional some facial
form like Multi Point Fuel inoculation (MPFI) technology & few changes in frontage part of
grill, head lamp and rear light.
2. Maruthi Omni: In an earlier the Maruthi Omni was recognized as Omni-Van. The van
was under attack more at traveler taxis, entrepreneur and large families. It was located at the
same time as a means of transportation contribution reimbursement of a car as a result of
earnings of additional space. But due to a number of dissimilar awareness of clients on top of
the area under conversation of Maruthi Omni-Van then subsequent to a quantity of time the
omni-van be renamed as Maruthi Omni and be repositioned seeing with the intention of the
most great spacious car. Lately the Maruti Suzuki launched new alternative called Omni
Cargo which have been to be found at the same time as a vehicle for transport cargo and
destined for small traders.
3. Maruthi Alto: The Maruthi-Alto was launched Alto with tagline allow‘s Go‘. The
young married couple goes in the course of different objective during their Alto. By Maruthi
(TVC) to be found Alto as a result of the side of the same time seeing that a car intended for
young at spirit full people. Also the automobile has highlighted seeing that fuel well-
organized car.
4. Maruthi Wagon-R: Then the Maruthi Suzuki started a brand new Wagon-R in
February, 2000. This is one of the successful brands from Maruthi Wagon-R selection in the
premium segment of compact cars. Wagon-R was initially to be found on the basis of the
functionality platform. Then as per the changing pattern of market, competition and customers
Maruti altered the positioning of Wagon R from Feel at Home to stimulated Engineering.
Some of the foreign car manufacturers are insistently toward the inside high growth up-
and-coming markets such as Indian amidst slow command in the industrial economics. Some
of the recognized branded cars have succeeded in establishing its brand within the Indian
market in view of the fact that its access level. After its entry captivated to India. The threat of
new-fangled entrants is far above the ground for the car industry in wide-ranging but

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 Marketing Strategies of Indian Automobiles Companies: A Case Study on Automobile Industry

specifically for the small car segment is very high. The growing economy and the ever-
increasing buying power of the consumers have made each automobile team member to grab
the opportunity within small car subdivision. There are around five new players approaching
in to the diminutive car market; Barriers for entering would include economy of weighing
machine competition on or after existing players, customer switch costs and the speculation
pronouncement.

6. CONCLUSION:
The car market day to day is very self-motivated and standing by for accomplishment with
arrange of dramatis personae and goods. There are so a lot of reasons for the amazing growth
of the Indian person along for the exits conveyed car manufacturing. In a come to of these are
trouble-free availability of means of transportation finance, in attractive rates of importance
and convenient installment. The Maruthi Suzuki India Ltd is a very leading one of the large
company in Indian vehicle sector which occupies prominent position due to it’s innovate
strategic marketing, promotional, Brand positioning, advertising strategies. In today’s
scenario the success of company lays structuring and restructuring the advertising strategies
and permanent innovation of product and their services.
The pre-owned car market may be transformed into a more organized market with the
adventure of Indian and global car makers and other major corporate houses of India. An auto
majors not only increase their market penetration through the pre-owned car business, but also
make a profit out of this venture. Unorganized pre owned car dealers are trying to match the
service standards of organized used car dealers to become more professional in their
marketing approach. The general consensus among the industry is that the pre owned car
segment may become almost double of the new car market in another six to ten years as in the
case in the developed countries.
The overall pleasant appearance of the Indian car manufacturing industry in the present
state of affairs with moderate intimidation from new entrants in practically low bargaining
power of suppliers; considerably high bargaining authority of buyers; ominous danger from
substitutes; and far above the position intensity of rivalry possibly will be rated as reasonable.
Through, with the projections pertaining to the probable expansion rate in the coming years
furthermore potential in the niche Indian rural market the axis of the pleasant appearance
would fall resting on the higher side. It is also experiential that many car manufacturers
encompass set up their disconnect units for production with the used car market. These
establishments are spending huge amount on advertisements and supplementary promotional
strategies. Growing interest of consumers and also of the used-car dealers are assures the
shining future of used cars in Indian market.

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