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IIntntroroducducttioionn

Maruti ltd.  Maruti is India's largest passenger company, which account for over 50 per cent of the domestic car market.

Maruti have a sales network of 562 outlets in 372 towns and cities, and provide maintenance support to customers at 2538 workshops in over 1200 towns and cities (as on December 31,2007).  The company boasts about its products, which offer unsurpassed fuel efficiency, low maintenance costs and easy availability of genuine parts.

 MUL extended its product range to include vans, multi-utility vehicles (MUVs) and mid- sized .  Suzuki saw its Indian sales rise 21 per cent to 653,000 cars

 Of the $3.5 billion Suzuki plans to spend on its expansion in India MUL’s Competitive Advantage

 Size  Low Initial investment  Unique concessions from the government  Indigenous sourcing of components  Fully depreciated plants  High labour productivity ranks highest in customer satisfaction with authorized dealership service Maruti models Comparing and Maruti Suzuki India Limited has showcased three concept cars at the 2008

• Concept A-Star, • Concept Splash and • Concept Kizashi Concept A-Star

 It is a concept car because it is for the first time that Suzuki has premiered a concept in India.  It is the first Japanese-Indian concept vehicle.  Segment: A (currently Alto is the market leader in this segment.  Expected price: A-star is expected to be priced around the 3-4 lakh range($7500)  Competitors: Spark and the . Segmentation,Targeting and Positioning

Segmentation DEMOGRAPHIC: A) Age- 20-34 B) Gender- Male, Female C) Family size- 3-4 , 4+ D) Income - RS 20000-30000, 30000-50000, 50000 and above. E) Occupation- Professionals, Officials, Supervisors, Home makers, Youngsters. PSYCHOGRAPHIC A) Social class: Middle class, working class, upper lowers. B) Lifestyle: Strivers, Achievers C) Personality: Gregarious, Ambitious, Compulsive BEHAVIORAL:

A) Benefits: Quality. Service, Economy, Speed

B) Readiness stage: Interested, Intending to buy CConontt…….…….....

TARGET MARKET:

 Expected price: A-star is expected to be priced around the 3-4lakh range

 It will target the small car segment A segment where ALTO is the market leader.  It will mainly focus on the middle and workers class people.  It will satisfy both the needs of European and Indian customers. POSITIOINING:

 The A-Star would be launched in other international markets gradually.

 The A-Star is an environmentally oriented concept and would be produced with a very efficient 1-litre , which would have great mileage and low emissions.

 The A-Star might just be the new Alto in India. Porter’s Five Force Model

Potential entrants

 Will impart a spectacular growth to the entire industry by actually widening and deepening it.

 It is doubtful if the current growth rate of over 50 per cent would have been possible but for the entry of these players.

 New entrants into this segment could be with its sub-compact Jazz, or Honda Life as it is called in other markets

with either the Fusion or the Fiesta

Rivalry amongst the existing firms

 And from a second-hand car to cars like the Maruti Zen, , Daewoo Matiz or the .

 Throw in a few more lakhs and you can bite into the wider small segment populated by the Hyundai Santro, Maruti Zen, Maruti WagonR, Tata Indica, and Palio.

 The deluxe version of the Zen, the fully-loaded Santro and the Matiz form another segment along with the . Cont…….

Substitutes

 Maruti swift sedan, Maruti splash, Tata 1 lakh car a small family car actually a substitute for a Maruti A-star.

 The Indica and the Santro due to its high presence in the market can be substitute for A-star

 Due to lower price consumer can shift to motorbikes and scooters launched by TVS, Bajaj and Yamaha. Bargaining power of suppliers

 The cars of Maruti are differentiated to such an extent that it is difficult for buyers to switch over to other products.

 As Maruti is dominant player in the market holding 50% share in the industry, it is highly attractive to buyers.

 Branding- The brand Maruti is strong due to its role of quality and services

 Switching Costs- It’s easy for suppliers to locate new customers. CCoontnt…………..

Bargaining power of buyers

• Usually customers appreciate and look for various features in a car. Often there is a loyal set of customers. Cars enhance social status and there may be a strong association of price with quality and status.

 Switching costs- It’s easy for buyers to locate new suppliers

 Large number of options available

 Well informed customers

 Availability of finance schemes CCoonnccepeptt SplSplasashh

 Segment: B (Next generation Wagon R)  Expected price: Rs 4.5-5.5 lacs  Theme: ‘Family’  The name Splash signifies its desire to create a new sensation.  Splash combines the sportiness of Suzuki's successful model Swift with the technologies and immense know- how  Suzuki unveiled its’ splash’ MPV (Multi Purpose Vehicle) in the Frankfurt Motor Show. SegmSegmententatioation,n, TTaarrgetgetinging andand PPosositioitioningning

SEGMENTATION

DEMOGRAPHIC:

 A) Age- 20-40

 B) Gender- Male, Female  C) Family size- 4-5 , 5  D) Income - RS 25000-35000, 35000-50000, 50000 and above.  E) Occupation- Professionals, Officials, Managers, Sales, Youngsters. PSYCHOGRAPHIC:  A) Social class: Middle class, Upper middle class  B) Lifestyle: Achievers, survivors  C) Personality: Gregarious, Ambitious BEHAVIORAL:

 A) Benefits: Quality. Service, Economy, Speed

 B) Readiness stage: Interested, Intending to buy CCoontnt…………..

TARGET MARKET:

 It will target the B-segment

 The theme of the splash is basically focusing on FAMILY  It signifies its desires to create a new sensation. Its vivid sound creates a sense of freshness and youthfulness.  It will likely appeal to those with small families and low budget. POSITIONING:

 The Japanese major chose the name Splash for the car to “signify its desire to create a new sensation.

 Maruti Suzuki's Splash is orientated strongly towards the European design style. Splash will be marketed for its such high seating position, good visibility and spacious interiors.

 Suzuki's Splash will offer comfortable space for five occupants due to clever packaging Porter’s Five Force Model

POTENTIAL ENTRANTS:

 It is doubtful if the current growth rate of over 50 per cent would have been possible but for the entry of these players.

 CHEVROLET AVIO (AVEO-5) – mp3 enabled audio system, carbon fiber trim, solid fuel economic ratings.

 TOYOTA’S youth oriented spin off: SCION XD- subcompact interior, fuel economy 30mpg, transportation costing <$16000.

 VOLKS WAGEN: POLO-diesel push, sharper price $16990, face lift. RIVALRY AMONG EXISITING FIRMS:

 And from a second-hand car to cars like the Maruti800, Maruti zen, Hyundai santro, Maruti esteem, Maruri alto etc..

 TATA’S low cost car will create a new segment as no cars available in 1lakhs-2lakhs segment.

 HYUNDAI latest small car-pressure on pricing.

 SATURN AURA XB-bidding for mid-size segment. CCoonnt….t…...

BARGAINING POWER OF SUPPLIERS:

 The cars of Maruti are differentiated to such an extent that it is difficult for buyers to switch over to other products.

 As Maruti is dominant player in the market holding 50% share in the industry, it is highly attractive to buyers.  Branding- The brand Maruti is strong due to its role of quality and services  Switching Costs- It’s easy for suppliers to locate new customers. SUBSTITUTES:

 Maruti SWIFT SEDAN, Maruti A-STAR, TATA 1 lakh car a small family car actually a substitute for a Maruti SPLASH..

 Maruti WAGON-R, , HYUNDAI i10.

 PEOPLE can switch over to new bikes launched by Yamaha-R1, BAJAJ, TVS.

 PEOLE can go for Diesel or Cng cars due to high prices of petrol and fuel efficiency eg. SWIFT SEDAN CCoonnt……t……….….

BARGAINING POWERS OF BUYERS:

 SWITCHING COST- buyers looking for new suppliers.

 Consumer going for second hand car market.

 Availability of : a) Finance scheme b) Registration insurance

 Different substitutes available. CCoonnccepeptt KizKizasashhii

 Competitor: Honda’s civic  Segment : D  Theme: “Status”.  With Concept Kizashi, Suzuki Motor Corporation has announced its entry into the D- segment. Segmentation, Targeting and Positioning

SEGMENTATION

DEMOGRAPHIC:

A) Age- 20-34

B) Gender- Male, Female

C) Family size- 3-4 , 4+ D) Income - RS 50000-75000, 75000-100000, 100000-125000, 125000-150000 and over. E) Occupation- Professionals, officials, Youngsters. PSYCHOGRAPHIC: A) Social class: Upper middle class, High class B) Lifestyle: Achievers C) Personality: Gregarious, Ambitious BEHAVIORAL:

A) Benefits: Quality. Service, Economy, Speed

B) Readiness stage: Interested, Intending to buy CCoontnt…………..

TARGET MARKET:

 KIZASHI revealed in Frankfurt represents the beginning of the 3rd phase of world strategy.

 It is into a Luxury car segment. It will mainly target the high class people with its sporty looks and comfort,  Its main objective will focus on status.  It will target an un-compromised combination of affordability and emotional appeal POSITIONING:

 The sportiness that Suzuki wants to deliver in the D-segment will perhaps be most directly expressed by the car's dynamics.

 The design of the new car should have two themes: grace and dynamism.

 Kizashi represents Suzuki's passion for challenges (this is a major aspect of Suzuki's corporate culture), its future direction, and the competitive strengths that are unique to Suzuki. Porter’s Five Force Model

POTENTIAL ENTRANTS:

 BMW-1-series

 Octavia Skoda  Skoda Fabia- engines offered in 4 trims levels- active, classic, ambiente and elegance.  Audi  -LX – 16inch alloy wheel, 166-hp, 2.4-4lt cylinder engine.  - sporty design, luxury features, seating, ride control. SUBSTITUTES:

 TOYATA COROLLA  HYUNDAI SONATA  SKODA AUTO- OCTAVIA  JETTA CCoontnt…………..

Rivalry Amongst the existing players • The growth of the car industry is on a high pace, companies are coming up with new models every six months.

• Rivalry tends to intensify as the number of competitors increases and as they become more equal in size and capacity. • Rivalry is more volatile and unpredictable the more diverse the competitors are in terms of their strategies, personalities, corporate priorities, resources, and countries of origin.

Bargaining power of suppliers

 The cars of Maruti are differentiated to such an extent that it is difficult for buyers to switch over to other products.

 As Maruti is dominant player in the market holding 50% share in the industry, it is highly attractive to buyers.

 Branding- The brand Maruti is strong due to its role of quality and services CCoontnt…………..

Bargaining power of buyers

• Usually customers appreciate and look for various features in a car. Often there is a loyal set of customers. Cars enhance social status and there may be a strong association of price with quality and status.

 Switching costs- It’s easy for buyers to locate new suppliers

 Large number of options available

 Well informed customers

 Availability of finance schemes PPromromootiotionalnal TToooollss BByy MarutMarutii IInn AutoAuto EExpo’xpo’0808

• HUGE BANNERS AND POSTERS • ALLOWING PUBLIC TO TAKE FEEL • FREE INSURANCE FOR ON THE SPOT BOOKING • ATTRACTION THROUGH MODELS • BROCHERS,PAMPHLETS AND CONTESTS Which stall did you like the most?

30 25 12 20 14 15 28 10 7 5 0 4 Maruti Honda Others

- 19% of the people liked Maruti.

- 22% of the people liked Tata.

- 43% of the people liked Honda.

- 10% of the people liked Hyundai.

- 6% of the people liked others. WHAT DID YOU LIKE THE MOST ABOUT MARUTI?

PERFROMANC E RELIABILITY PRICE

LOOKS

25% OF THE PEOPLE ARE SATISFIED WITH THE PERFORMANCE -27% OF THE PEOPLE ARE SATISFIED WITH ITS RELIABILITY -30% OF THE PEOPLE ARE SATISFIED WITH THE PRICE -18% OF THE PEOPLE ARE SATISFIED WITH ITS LOOKS DID YOU LIKE THE PROMOTIONAL STRATEGY OF MARUTI?

YE S NO

- 57% OF THE PEOPLE SAID YES - 43% OF THE PEOPLE DID NOT LIKE IT WHICH OF THE THREE MODELS DID YOU LIKE THE MOST?

30

20

10

0 A STAR SPLASH KAIZASHI

- 27% OF THE PEOPLE LIKED A STAR CONCEPT

- 38% OF THE PEOPLE LIKED SPLASH

- 35% OF THE PEOPLE LIKED KAIZASHI DO YOU MARUTI 800 WILL BE PREFERABLE AFTER THE LAUNCH OF TATA NANO?

YE S NO

 51%OF THE PEOPLE WERE SATISFIED  -49% OF THE PEOPLE WERE UNSATISFIED DO YOU THINK THAT MARUTI WILL FACE COMPATITION FROM OTHER NEW CARS?

YE S NO

 78% OF THE PEOPLE AGREE - 22% OF THE PEOPLE DISAGREE DO YOU THINK THAT THE FEATURES OF MARUTI HAS IMPROVED IN ITS NEW CARS?

YE S NO

 -80% OF THE PEOPLE AGREED  -20% OF THE PEOPLE DISAGREED CCononcclulussioionn

 It can be concluded from the project that Maruti is a brand, which consumers prefer to buy, due to its fuel efficiency and cost effectiveness.  Due to the launch of Maruti’s 3 concept cars that is A-star, Splash and Kizashi customers are willing to purchase and experiment these new cars with its improved features.  Maruti will face stiff competition from others new cars launched in the market  Maruti’s 3 new cars will be successful in the coming market and will be most preferred by the customers. ThThanankk YoYouu