A Marketing plan good to be used as template and reference.

1. 2011 Marketing Plan for Sporty Sedan “Kizashi”
By
Rakesh Shah
19-May-2011 1

2. 1. Executive Summary
Maruti Suzuki to launch luxury and sporty sedan “Kizashi” in India. Maruti Suzuki is a
leader in Sedan Car segment with 36% Market Share – double in last three years, will
delight customer with Kizashi. A high performance, stylish and luxurious feels, Kizashi
will fit the changing style of Indian consumer.
Kizashi is available in two versions:
1. 6 Speed Manual Transmission (MT) with Price Tag of INR 16.50 Lakh.
2. Continuous Variable Transmission (CVT) with Price Tag of INR 17.50 Lakh.
Kizashi is a Japanese word meaning “a sign of great things to come”. Kizashi is truly a
contemporary masterpiece. With looks that enrapture your senses, Kizashi revs up your
spirit with every drive.
Maruti Suzuki crossed 1 Million vehicles for the 1st time in Financial Year 2009 - 2010
and net sales of INR 289.50 Billion increased by 42.2% compare to Financial Year 2008
- 2009. Addition to this, net profit zoomed by 105% compare to 2008-09. This financial
data reflects sound Indian economy and company’s market dominance.
Maruti Suzuki is ranked No. 1 in Customer Satisfaction for 10th time in row and loyal
customer in car industry is highest for Maruti – 78%.
Passenger vehicles market segment in 2009-10 has grown 26% equivalent to Two
Wheeler market after flat sale in financial year 2008-09.
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3. 2. Current Market Situation
a. Market Description
Indian economy in 2010 has been recovered from slowdown. With Government
calibrating economy by reducing fuel cost, bringing liquidity in market, reducing
Central VAT, has fuelled economy and passenger vehicle segment has seen
unexpected growth.
With Growth, more and more Indian customer is moving towards sporty life style
and looking for world class experience.
Maruti Suzuki dominates Sedan segment in Passenger car vehicle market in 2009-
2010 with 36% share:
Fig. 1 Sedan segment in 2009-2010
In Year 2011-12, passenger car vehicle segment is expected to grow 12 %
compare to 2009-2010.
Currently, India enjoys 7th position in Global Automobile Industry. Expected to
beat Japan in Sales Volume by 2014 and will be No. 3 in 2020.
b. Product Review
Kizashi is a rich sporty sedan (A3) with value for money. Fully imported car with
silent features to stand apart in Sedan segment and rightly priced.
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7. c. Competitive review
Maruti Suzuki has launched two versions of Kizashi to cater global people who
prefer automatic transmission and affluent Indian who are accustomed to Gear.
However other than automatic transmission which leads to price difference, all
other technical specifications and feature are same.
With Sedan (A3) segment increasing in Passenger car vehicle industry, all major
auto players sells A3 Segment models.
Hyundai Sonata Transform Skoda Laura 1.8 TSI
Parameters Maruti Kizashi MT
2.4 VTVT(M/T) Ambiente
Fuel Economy
Mileage (Highway) 13.45 km/liter 12 km/liter 12 km/liter
Mileage (City) 11.45 km/liter 8 km/liter 8 km/liter
Mileage (Overall) 12.45 km/liter 8.8 km/liter 8.8 km/liter
Capacities
Seating Capacity 5 Person 5 Person 5 Person
Fuel Tank Capacity 63 Liters 70 Liters 55 Liters
No of Doors 4 Doors 4 Doors 5 Doors
Performance Engine
Turbocharged petrol
2.4 litre DOHC
J–Series
engine engine, in-line, liquid
Engine Type 2.4 VTVT
cooling system, direct
injection, 16V DOHC,
transverse i
Displacement 2393 2359 1798
Power 178PS @6500rpm 175PS @6000rpm 160PS @4500rpm
Torque 230Nm @4000rpm 234Nm @4000rpm 250Nm @1500rpm
Valve Mechanism DOHC DOHC
Bore 82.5
Stroke 84.2
No of Cylinders 4 4-Cylinder 4
Cylinder
VVT In-line
Configuration
Valves per Cylinder 4 4
Fuel Type Petrol Petrol Petrol
Fuel System Multipoint Injection MPFI Direct injection
Transmission
Transmission Type Manual Manual Manual
Gears/Speeds 6 5 6
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8. Summary:
i. Kizashi leads in Fuel economy. Fuel consumption is going to be a key
factor with soaring price of Petrol/Diesel.
ii. Kizashi compete directly with Skoda in Transmission specification.
iii. Kizashi leads in Engine performance with advance fuel system and leader
in fuel economy.
d. Distribution review
Maruti Suzuki will have Pre-booking through strong dealers’ network. Company
has presence in 555 cities with dealership outlet touching 802.
Additionally, Maruti in later stage will explore Center Store Canteen (CSD) to
get access to Defence personal which accounts to 5% of total population.
3. SWOT Analysis
Maruti Suzuki being a leader in Passenger Car industry has good strength and few
weaknesses.
Strength:
1. Strong Dealer network - Connecting 500+ cities and towns in India with 802
Sales networks.
2. No. 1 in Customer Satisfaction since last 10 years.
3. Highest loyal customer in Industry - 78% loyal customers as per J D Power Asia
Pacific.
4. Largest Service network - Maruti Suzuki has presence in 1300 + Cities and Town
across India with 2700 + Service Outlets. Mission is to have service facility
available at every 25 KM on major highways across India.
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9. Weakness
1. Technology - Maruti Suzuki relies heavily on Technology from Parent Suzuki.
2. Exports – Maruti Suzuki exports to Europe which accounts for 10% of net sales.
This export has declined from 14.5 % (Year 2008-09).
3. Uncertainty of Forex - By importing Sport Sedan car Kizashi as Complete Build
Unit (CBU) will have direct impact on Import cost. With Forex currency Yen and
Euro uncertainty will directly impact export and imports.
Opportunity
With growing higher middle class Indian consumer, market for Sedan (A3) is increasing
Year On Year (YOY) and have touched 36% with Maruti dominating this segment.
Also with growing economy, young Indian travelling and globe totting world over look
for State of the Art technology and luxury Car and Kizashi meets expectation. With
Kizashi imported as Completely Build Unit (CBU), preference will be high towards fully
imported car compare to indigenous or mixed mode passenger car.
Threat
1. Fuel Price Hike - Oil price has always been a threat to Indian consumer and fuel
economy plays a vital role in deciding and riding passenger car vehicle. With Oil
Barrel price $80.00 – $108.00 is causing huge loss to Oil Companies approximately
INR 8,000 Crores. With Petrol Price touching INR 70.00 per liter will be a cost which
customer will have to pay while buying Cars. However this will have less impact on
Sedan (A3) Segment which falls towards luxury segment and buyers is less impacted
with oil prices.
2. Auto loan interest rate – Inflation continue to increase in Indian economy and food
inflation reached double digits, car loan interest falls between 8.50% and 12.00%
across various Banks. With Bank ready to provide 90% loan for Sedan (A3) segment
and young Indian customer (majority) is willing to go by Car vehicle loan for new car
will be a challenge.
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10. 3. Increased competition in Sedan (A3) Segment - Sedan being a fastest growing
segment in Passenger car industry, market is flooded with 10+ models with price
ranges between INR 9.00 Lac and INR 20.00 Lac. Additionally, Maruti has launched
most successful A3 Segment model SX4 in diesel version. In India, Diesel is priced
less than Petrol will be a internal threat to Kizashi.
4. Objectives and issues
i. Objectives for year 2011
India is No 7 in Global Auto market and aggressive target set for 2011 is
sales of 300 Unites in Sedan Segment (A3).
ii. Objectives for year 2012
To sell 20000 Kizashi out of expected 40,000 + A3 Segment with market
expected to grow 12% compare to 2009-2010.
iii. Any major issues
Forex uncertainty with high dependency on Yen as Kizashi will be
imported as Completely Build Unit.
5. Marketing strategy
1. Positioning
Kizashi will be classically positioned in Sedan (S3) segment. Kizashi is
a differentiator in segment and keeping pace with “sportiness” feature
expected from Indian youth /urban customer. By importing Completely
Build Unit, Maruti Suzuki is delighting Indian customer and giving more
value for money.
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11. 2. Product Strategy
Kizashi the name itself classify this product as specialty Product and
associated with Brand. To make this car a special car, headlamps has
connected rings with a silver finish were inspired by jewellery. Luxury
is redefined with rich and specious interiors.
Kizashi differentiate with his competitors in Sedan (A3) segment by:
1. Design - Dynamic contours mirrors an athlete in motion and makes
a bold and powerful impression. Also is distinctive stainless-steel
exhaust covers were inspired by Suzuki’s world-beating sport bike
designs.
2. Performance – a Suzuki rich racing heritage reflected.
3. Reliability – Peace of mind while driving (recipients of highest
safety awards in 2010 )
4. Service – Recipients of J D Power Asia specific award since last
10 years and enjoy 78% loyalty. At present 1335 cities and town
are covered by 2740 Service outlets.
3. Pricing Strategy
Kizashi is target towards up market which largely constitutes of youth and
affluent people. Hence price will be high in segment.
Kizashi is priced above INR 16.00 lac with value for money.
4. Distribution Strategy
Kizashi will be sold across Maruti Suzuki 800+ Sales Outlet across 500+
cities and town in India.
Also Kizashi will be available to Indian Defence personnel via Canteen
Store Department (CSD) across major Defence establishments. This
gives access to 5% of Indian Population.
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12. 5. Communication Strategy
Message will be communicated through Print and digital media. In print
media, leading auto and business magazine will communicate message
to Up market customer.
In Digital media, Satellite Television will be targeted youth crowd
watching night business and talk shows along with major sport event
World Cup being played in India.
In Digital media, Internet will be used for global Indian customer and
there will be separate website dedicated for Kizashi to understand style
and performance of luxury Sporty Sedan.
6. Research
Based on Automobile industry research, Sedan (A3) segment will grow
approximately 50% with Indian Economy growing with fast pace.
Also in Sedan (A3) segment, Indian Consumer looks “Value for
Money”. Kizashi delivered as imported car and priced at Indian car;
definitely will give more value than expected.
7. Organization
Mr. Mayank Pareek, Executive Officer (Marketing and Sales) along with
Mr. S. Oishi, Director (Marketing and Sales) will hold overall
responsibility for marketing strategy and direction. Maruti Suzuki has
hired advertisement company “Dentsu” for all media. Dentsu is a
Japanese Advertising company and have Indian Headquarter in
Bangalore.
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13. 6. Action Programs
i. Quarterly Description
Feb 2011
Advertisement campaign will start on TV and Print media with clear
differentiation from other Maruti Product.
Launch pre-booking of Kizashi with Initial payment of INR 50,000.00
only.
March – April 2011
Launch massive advertisement during world cup period for Kizashi
promotion along with SX4 to get more market share in Sedan (A3)
segment.
May 2011
Close booking for Kizashi for a short period to create demand in market
and start Kizashi delivery. Also continue advertisement in Prime slot and
through Sales Outlet.
7. Budgets
With World Cup round the corner and ideal slot to market product, Maruti Suzuki has set
Advertisement budget of INR 8.00 Crores for Kizashi. The TV commercials for Kizashi
will be on air on March 8 during the world cup cricket match telecast. It will be a
completely product-focused one and it doesn’t have a storyline.
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