1. Q : explain about Maruti SuzukiIndia and its car segments & marketstrategy in
brief ?
Introduction to Maruti Suzuki
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobilemanufacturer in India.It
is a 56.21%-owned subsidiary of Japaneseautomobileand motorcycle manufacturer Suzuki Motor Corporation.As
of January 2017,it had a market shareof 51% of the Indian passenger car market. Maruti Suzuki manufactures and
sells popularcarssuch as theCiaz,Ertiga, Wagon R, Alto, Swift, Celerio, Swift Dzire, Omni, Baleno and Baleno RS.
The company is headquartered at New Delhi. In February 2012,the company sold its ten millionth vehiclein India
(https://en.wikipedia.org/wiki/Maruti_Suzuki#Products_and_services)
Maruti Suzuki`s car segments
With increasing competition, Maruti Suzuki decided to cater to all the segments of the Indian car
market. The company not only launched new models but also upgraded its existing
models drastically.
Market segmentation is the vital step in marketing strategy. Considering the growing demand for passenger
cars from various segments, Maruti Suzuki offers cars for different segments - like the small, the less costly
Maruti 800, Maruti Omni, the middle level Maruti Zen, Swift and the higher level Swift Dzire, SX4 to Sports
Utility Vehicle Grand Vitara.
Maruti knew that the strategy of segmentation allows companies to avoid head-on competition in the market
by
differentiating their product offerings, not only on the basis of price but also through styling, packaging,
promotional appeal, distribution methods and superior service.
(http://shodhganga.inflibnet.ac.in/bitstream/10603/76185/14/15_chapter%205.pdf)
On the basis for follwoing four major Segmentationlets
see how maruti cater their customers .
2. Geographical Segmentation
geographic target market can be consumers in a city,state, or country.
Maruti has Country wisereach.
Maruti makes Cars for Urban and Semi Urban areas.
Maruti to rev up rural drive, targets 1.5 lakh villages
(http://www.livemint.com/Companies/NfH1LLf0hfbhmKBF4Kt8mM/Mar
uti-to-rev-up-rural-drive-targets-15-lakh-villages.html)
Demographic segmentation
Demographic segmentation is market segmentation accordingto age, race, religion,gender, family size,ethnicity,
income, and education.
Age and income
3. For every lifecyclebut above age of 18 years.
Family size
For example :Maruti Suzuki Ertiga has 7 seats for large families
5. NEXA brand of the company is for premium customers
.
Company also has sports oriented cars.
http://www.nexaexperience.com/
Behavioral Segmentation
Buying on occasions, benefits sought , loyalty ,heavy usage, moderate usageor lesser usage, Price, Genration are
counted as Behavioral segmentation .
Maruti also makes product for this segment as well
e.g
For less modrate usagePetrol Cars
For heavy usage disel Cars
New year offers etc
6. MarketStrategies of Maruti Suzuki India Limited
strategy
A strategy is a long term plan to achieve certain objectives. A market strategy is therefore a marketing plan
designed to achieve marketing objectives.
The success of market strategies depends largely on producers understanding their markets and activities or practices involved in
marketing.
Market strategies also helps organizations to focus their attention to complete resource utilization to increase sales and win over
their competitor
Marketing Strategies of Maruti Suzuki IndiaLimited
Maruti Suzuki India Limited is a leading manufacturer of passenger vehicles in India.
Lovingly referred to as the people’s car maker, over the past three decades Maruti
Suzuki has changed the way people in India commute and travel. Over three decades,
Maruti Suzuki has won the hearts of customers through high quality products and
services. Today due to innovative marketing strategies Maruti Suzuki India Limited
has become the leading car manufacturers in India.
The strategy of the company was to offer a compact, modern and fuel efficient car. Marutireleased its first
Maruti 800 on 14 December 1983 to fulfill the needs of Indian customers. Since 1983 till date Maruti Suzuki
gradually offered several choices to the customer .
company is acting on following strategies
Competitive strategy
As a part of competitive strategy, Maruti Suzuki broadened its product portfolio and
expanded its sales and service network to reach all over India. With increasing
competition, Maruti Suzuki decided to cater to all the segments of the Indian car
market. The company not only launched new models but also upgraded its existing
models drastically.
Brand PositioningStrategy
Commenting on Maruti brand Mr.Pareek said that brand Maruti
stands for reliability, flexibility, trust and fun. It is an Indian icon as many Indians had
their first motoring experience in it. We put the nation on the wheel. He stated that
Maruti have transformed from being a sales-driven organization to a totally customer-
centric organization
AdvertisingStrategy
Maruti’s advertising strategy focused both on
building up its corporate image and promoting its cars. Maruti’s campaigns
emphasized different aspects of its cars including fuel efficiency, looks, space et
7. Sales Promotional Strategies
to attract the customers Maruti Suzuki launched attractive campaign like “Change Your Life”. The company
also offered vehicle insurance for One rupee only.
In year 2011, Maruti Suzuki, launched ‘Eeco Meal’ promotion offer. Under this promotion campaign, Maruti
Suzuki collaborated with McDonalds.
Dance India Dance is a brand that is a favorite with viewers of all ages, especially the youth.This reality show
was presented by Maruti Suzuki India Limited. With an object to promote the Maruti brands .
PricingStrategy
Maruti Suzuki’s pricing strategy helps both its customers and Maruti. The company offers its different model
just at a price difference around Rs.10,000 /- for cars ranging between Rs. 3.25 lakhs to Rs.4.50 lakhs. Maruti
offers five different cars in
this range and different versions of each car. This pricing strategy helps makes more option available to a
customer.
DISTRIBUTION STRATEGY
Maruti Suzuki developed a unique distribution network which gave a company a distinctive competitive
advantage.
The strategy and idea behind establishing the vast distribution network was to reach the customers in remote
areas and deliver the products of the company.
Service Feedback & After Sales Service
he company has also provided a toll free number where customer complaints can be registered. This service
feedback facility
helps Maruti Suzuki to identify the customer satisfaction level.
(http://shodhganga.inflibnet.ac.in/bitstream/10603/76185/14/15_chapter%205.pdf)
Q2 :explain 'Nexa' brand of Maruti Suzuki India
In 2015 Maruti Suzuki launched NEXA, a new dealership format for its premium cars.
Maruti currently sells the Baleno Baleno RS, SCross, Ciaz and Ignis through NEXA outlets. S-
Cross was the first car to be sold through NEXA outlets. Several new models will be added to
both channels as part of the Company’s medium term goal of 2 million annual sales by 2020
(https://en.wikipedia.org/wiki/Maruti_Suzuki#Products_and_services)
8. NEXA – the next generation showroom is Maruti’s earnest chance to win over a generation
of customers who are tech savvy and care a lot about Brand image.NEXA is a differentiated and leadingIndian
brand which is acquiring a good amount of reputation and huge amount of sales in the Indian Market, which
was the main target market from the inception of NEXA.
( Brand Analysis of Nexa : Dr Komal Chopra Symbiosis Institute of Management Studies).
Suzuki SX4 S-Cross 1.6 DDiS (2016)
10. Q2 : Why it was opened ?
MSIL Managing Director & CEO, Kenichi Ayukawa said: “NEXA provides a new experience of
hospitality from Maruti Suzuki. Indian market and Indian society are rapidly changing and new
segments of customers are emerging. We have to take new initiatives to meet diversifying
expectations from our customers”.
Customer feedback and surveys have shown there is a growing segment of car buying Indians who
desire and value personal care, warmth and attention in their car buying and ownership experience.
They want people, technology, showroom ambience and processes to come together and offer them
a “premium experience”. These customers want to be pampered! NEXA is designed for this segment
of customers.
(Maruti NEXA dealership - Press release New Delhi, July 23, 2015 )
Q:3 who all car makers are its competition ?
ANS : Almost all foreign subsidiaries could pose
tough competetion to NEXA Maruti .These
include
Ford India
(Presently, Ford has more than 376 sales and serviceoutlets in 209 cities acrossIndia)
12. In October 2012, General Motors-Chevrolet announced that ithas increased stakein its Indian subsidiary
to 93% by buying43% from its Chinesepartner SAIC for an undisclosed sum.
https://en.wikipedia.org/wiki/General_Motors_India)
Honda India
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India.
( https://en.wikipedia.org/wiki/Honda_Cars_India)
Hyundai India
HMIL has 475 dealers and more than 1,226 servicepoints across India .With exceeding 2,50,000 sales in
firstquarter of 2017 Hyundai aims to target half million sales in domestic market in 2017.
13. ( https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited)
Volkswagen Group Sales India
VGSIPL's vehiclebrands have a combined dealership network of more than 153 dealerships in morethan 56 cities
all over India.Skoda and Audi alonehavingin total around 120 dealerships acrossthecountry today.
( https://en.wikipedia.org/wiki/Volkswagen_Group_Sales_India)
Renault Nissan India
14. As of 2015, Renault India has 224 outlets in India . As of September 2015, Nissan Motor India has 201 dealerships
across 148 cities in India.
( https://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limited)
Toyota India
As of April 2011,it has more than 205 dealerships in 98 cities across22 states and 3 union territories of India
In Local followingCompanies can posetough competition.
(https://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor)
15. Tata Motors
Tata Motors has been ranked 5th in 2017 ResponsibleBusinessRankings [2] developed by IIMUdaipur.
(https://en.wikipedia.org/wiki/Tata_Motors)
Q 5 : Make competition comparison which each car of
Nexa with its competition cars based on
below :
- Compare Nexa cars model with features (take a top & base
model)
- Compare prices of each car
- Compare distributionpresence (count of showrooms
presence)
- compare pre & post sales customer experience .
19. For more features kndly go to the link : https://www.cardekho.com/compare/ford-ecosport-and-hyundai-creta-
and-maruti-sx4-s-cross-and-renault-duster.htm
Comparan of prices
(https://www.cardekho.com/compare/ford-ecosport-and-hyundai-creta-and-maruti-sx4-s-cross-and-renault-
duster.htm)
20. Compare distribution presence (count of
showrooms presence)
Maruti sazuki Nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Ford distribution presence
Presently, Ford has more than 376 sales and serviceoutlets in 209 cities acrossIndia.
https://en.wikipedia.org/wiki/Ford_India_Private_Limited
Renault distribution presence
As of 2015, Renault India has 224 outlets in India.
https://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limited
compare pre & post sales customer experience
22. For more features go to the link : https://www.cardekho.com/compare/ford-ecosport-and-hyundai-creta-and-
maruti-sx4-s-cross-and-renault-duster.htm
23. Comparasion of prices
https://www.cardekho.com/compare/
Compare distribution presence (count of
showrooms presence)
Maruti sazuki Nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Ford distribution presence
24. Presently, Ford has more than 376 sales and serviceoutlets in 209 cities acrossIndia.
https://en.wikipedia.org/wiki/Ford_India_Private_Limited
Renault distribution presence
As of 2015, Renault India has 224 outlets in India.
https://en.wikipedia.org/wiki/Renault_Nissan_Automotive_India_Private_Limited
compare pre & post sales customer experience
https://auto.ndtv.com/ford-cars/ecosport
27. For detailed features go to following link
(https://www.cardekho.com/compare/fiat-linea-and-honda-city-and-hyundai-verna-and-maruti-ciaz.htm)
Price comparasion
(https://www.cardekho.com/compare/fiat-linea-and-honda-city-and-hyundai-verna-and-
maruti-ciaz.htm
comparasion of distribution chanel
28. Fiat distribution prsence
161 Fiatcar dealers and showrooms availablein India
https://www.cardekho.com/Fiat/cardealers
Honda distribution presence
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India
https://en.wikipedia.org/wiki/Honda_Cars_India
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.HMILalso operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after maruti.
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
compare pre & post sales customer experience
31. 4.comparasion of Ciaz petrol (top model ) Maruti
with competitors .
Features comparasion
32. For more detailed features go to following link :
https://www.cardekho.com/compare/fiat-linea-and-honda-city-and-hyundai-verna-and-
maruti-ciaz.htm
Price Comparasion
Distribution channel comparasion
fiat distribution prsence
161 Fiatcar dealers and showrooms availablein India
https://www.cardekho.com/Fiat/cardealers
33. Honda distribution presence
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India
https://en.wikipedia.org/wiki/Honda_Cars_India
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.HMILalso operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki.
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Pre and Post sales Comparasion
Autoportal .com
35. 5.comparasion of Ciaz diesel (base model )
maruti with competitors .
features comparasion
36. For detailed features go to followinglink : https://www.cardekho.com/compare/fiat-linea-and-honda-city-and-
hyundai-verna-and-maruti-ciaz.htm
Price comparasion
https://www.cardekho.com/compare/fiat-linea-and-honda-city-and-hyundai-verna-and-maruti-ciaz.htm
Comparasion of distribution chanel
fiat distribution prsence
161 Fiatcar dealers and showrooms availablein India
https://www.cardekho.com/Fiat/cardealers
Honda distribution presence
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India
https://en.wikipedia.org/wiki/Honda_Cars_India
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
37. Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.[4]
HMIL also operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki.[5]
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Pre and Post sales comparasion
40. For detailed features go to followinglink : https://www.cardekho.com/compare/fiat-linea-and-honda-city-and-
hyundai-verna-and-maruti-ciaz.htm
Price Comparasion
41. https://www.cardekho.com/compare/fiat-linea-and-honda-city-and-hyundai-verna-and-maruti-ciaz.htm
Distribution chanel comparasion
fiat distribution prsence
161 Fiatcar dealers and showrooms availablein India
https://www.cardekho.com/Fiat/cardealers
Honda distribution presence
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India
https://en.wikipedia.org/wiki/Honda_Cars_India
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.HMILalso operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki.
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
42. Pre and Post sales comparasion
https://www.youtube.com/watch?v=tOQPcoarSMk
https://www.youtube.com/watch?v=tOQPcoarSMk
44. 7.comparasion of baleno petrol (base model )
maruti with competitors
Price comparasion
https://www.cardekho.com/compare/honda-jazz-and-hyundai-i20-active-and-maruti-baleno-and-volkswagen-
polo.htm
features comparasion
46. For detailed fetureatures go to followinglink : https://www.cardekho.com/compare/honda-jazz-and-hyundai-i20-
active-and-maruti-baleno-and-volkswagen-polo.htm
Distribution comparasion
Volkaswagen distribution presence
Volkswagen India has 119 showrooms and 113 servicecenters across 101 cities.
https://en.wikipedia.org/wiki/Volkswagen_India
Honda distribution presence
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India
https://en.wikipedia.org/wiki/Honda_Cars_India
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India HMILalso operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Pre and post sales comparasion
49. 8.comparasion of baleno petrol (top model )
maruti with competitors.
Price comparasion
https://www.cardekho.com/compare/honda-jazz-and-hyundai-i20-active-and-maruti-baleno-
and-volkswagen-polo.htm .
features comparasion
51. Distribution presence
Volkaswagen distribution presence
Volkswagen India has 119 showrooms and 113 servicecenters across 101 cities.
https://en.wikipedia.org/wiki/Volkswagen_India
Honda distribution presence
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India
https://en.wikipedia.org/wiki/Honda_Cars_India
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India HMILalso operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
55. For more detaiiled features go to followinglink : https://www.cardekho.com/compare/honda-jazz-and-hyundai-
i20-active-and-maruti-baleno-and-volkswagen-polo.htm
56. Comparasion of distribution chanels
Volkaswagen distribution presence
Volkswagen India has 119 showrooms and 113 servicecenters across 101 cities.
https://en.wikipedia.org/wiki/Volkswagen_India
Honda distribution presence
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India
https://en.wikipedia.org/wiki/Honda_Cars_India
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India HMILalso operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Pre and post Sles comparasion
61. Distribution chanel comparasion
Volkaswagen distribution presence
Volkswagen India has 119 showrooms and 113 servicecenters across 101 cities.
https://en.wikipedia.org/wiki/Volkswagen_India
Honda distribution presence
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India
https://en.wikipedia.org/wiki/Honda_Cars_India
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.[4]
HMIL also operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki.[5]
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
65. Distribution comparasion
Mahindra distribution presence
483 Mahindra car dealers and showrooms availablein India
https://www.cardekho.com/Mahindra/cardealers
ford distribution presence
314 Ford car dealers and showrooms availablein India
https://www.cardekho.com/Ford/cardealers
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.[4]
HMIL also operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki.[5]
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Pre and Post sales comparasion
Maruti ignis 1.2 sigma petrol
66. Mahindra Kuv 100 m falcon g80 k review
https://www.youtube.com/watch?v=uPbMUzPsQZY
Hundai grand 110 review
67. Ford figo 1.2 basemt petrol review
https://www.youtube.com/watch?v=tt-lgEGcyFI
71. Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India HMILalso operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Pre and Post sales comparasion
http://www.mouthshut.com/cars-suvs/Maruti-Suzuki-Ignis-Alpha-1-2-MT-reviews-925876923
75. Distribution comparasion
Mahindra distribution presence
483 Mahindra car dealers and showrooms availablein India
https://www.cardekho.com/Mahindra/cardealers
ford distribution presence
314 Ford car dealers and showrooms availablein India
https://www.cardekho.com/Ford/cardealers
Maruti sazuki nexa
the total dealership count under the NEXA brand has touched the 200 mark..
https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India HMILalso operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Pre and Post sale customer comparasion
81. https://www.rushlane.com/maruti-nexa-dealership-12201464.html
Hundai Disttributshion presence
HMIL has 475 dealers and more than 1,226 servicepoints across India.[4]
HMIL also operates its own dealerships
known as Hyundai Motor Plazas in large metros across India.HMILhas the second largestsales and service
network in India after Maruti Suzuki.[5]
https://en.wikipedia.org/wiki/Hyundai_Motor_India_Limited
Pre and Post customer comparasion
http://www.mouthshut.com/cars-suvs/Maruti-Suzuki-Ignis-Alpha-1-3-MT-reviews-925876927
83. https://autoportal.com/newcars/ford/figo/titanium-plus-15-tdci.htm
Q :
Stage 1:
Collect data on chosen company and product/service brand and
identify the existing segmentation and targeting strategy
PESTLE analysis
Analyze the data and extract the SWOT current applicableto
the chosen product/brand
Ans : identify the existing segmentation and targeting strategy
of NEXA .
Who then are these customers for whom NEXAis being launched?
84. Comprising of young Indians who are increasingly global citizens and have achieved success early in life, the
clientele at NEXA will be digitally savvy and avid users of contemporary technologies, including social media.
They are well travelled, well read and have bought a car before - their aspirations and expectations mirror their
rising success in life. They are used to style and convenience and believe in nothing short of best in class
services when it comes to a buying experience.
(https://www.marutisuzuki.com/background-material-nexa-for-analysts.aspx)
The strategy to ensure that the NEXA premium retailing network evolves as a model to offer updated merchandise to
customers and grow existing relationships while ensuring higher than average levels ofcustomer experience is starting
to showresults.
(http://www.agencyofstrategy.com/blog/the-nexa-experiment-segmentation-is-everything)
PESTLE analysis
Political
Protectionisim could Raise the brand image
Protectionism in developed nations to affect India, China, South Africa the most: IMF
(http://www.livemint.com/Politics/c7T7dWE4KMwv6F7m6KWB2O/Protectionism-in-developed-nations-to-
affect-India-China-S.html)
MaDE in INDIA INTIATIVE could Increase NEXA Revenue
http://www.makeinindia.com. Make in India is an initiative launched by the Government of India to
encourage national, as well as multi-national companies to manufacture their products in India. It was
launched by Prime Minister Narendra Modi on 25 September 2014
Economical
Developing glopbal Economy could benefit the NEXA
Internation trade teriff affect e.g trade with china
Raise in oil prices internaionally will affect the company
Global financial crisis will reduce the companny`s share value in stock market
Developing Domestic Economy could also benefit the NEXA and Country both
Opening of new nexa showrooms will increase the employment apportunities both in industrial
and showroom sector. And increase NEXA revenue too.
85. Company will pay more tax wich will enhance domestic economy
Monetary policy can affect the inflation and indirectly NEXA
Echange rate will affect NEXA import and Exports
deVlaueation in rupee can affect the purchasing power
46% share in automobile industry
Social
Engagging in social issues
Customer Requiement and social value
87. At NEXA, technology will be the other name of convenience – while wall mounted display connected to iPads
give you all the information on the automotive industry, smartphone applications reduce paper work. If upon
entering a NEXA store a customer wishes to view competition models, a touch on an iPad connected to a wall
mounted display enables an informed buying decision.
(https://www.marutisuzuki.com/background-material-nexa-for-analysts.aspx)
NEXA is working on R&D for improving the CAR models and fuel Efficiency
Maruti is using green technology for making CARS as low enviroment Damage
NEXA using Innovations like CAR health service and Mobile updates
Refernce : Maruti Sustainability report
Legal
Passanger safty laws
88. NEXA is following Enviromental laws
NEXA is following Taxes and duty LawS of the country
NEXA is following Labour laws as reported by company in sustainability report
Refrence : Sustainability report Maruti 2016
Enviroment
Over the years company is rducing its dependencies on ground water
According to the company`s sustainability report company uses 96 % clean energy rsourses
which is very good.
89. According to report company has 0 waste
Company has also reduced it CO2 emission immensely
90. SWOT of NEXA
Strengths
1. NEXA Belongs to Maruti Suzuki which is the largest passenger car company in India,
accounting for around 46% market share .( Company’s 8th Sustainability Report which is
for the period, 1st April, 2015 to 31st March, 2016) page 8.
2. The Company has established a Risk Management process which consists of an
Enterprise Risk Management Committee (ERMC). NEXA is talking advantage of
this(Company’s 8th Sustainability Report which is for the period, 1st April, 2015 to 31st
March, 2016)page 4
3. Largest distribution network of dealers and after sales service centres of Maruti can be
used to grow NEXA .
4.A large Product portfolio under NEXA with varience and budget help to increase sales
(www.nexaexperience.com/)
91. 3. Good advertising, product portfolio, self-competing brands
4. Strong brand value and strong presence in the second hand car market
6. Having different revenue streams like Maruti finance, CAr Insurance and Maruti
driving schools
7. Over 700,000 units sold in India annually including 50,000 exports
8. The company has been recognized by several awards in the automobile segment in
India
10.Company has improved customer satiffaction index
Refrences : Maruti sustainability report 2016
Weaknesses
1. NEXA is not a international brand or satisfy international customer .
2. Employee management, strikes, worker wage problems have affected Maruti's brand
image in the past so it could also happen with NEXA .
92. 3. premium characteristic of the brand NEX are not luxurious as other brands within its
range.( research paper : Brand Analysis of Nexa Dr Komal Chopra Amit Singh Kamit
Malhotra Dhruv Duggal Symbiosis Institute of Management Studie)
4. Parent Brand - Maruti Suzuki. Can harm the brand nexa .
5. Company has gone below to average 809 points this is a alarming singnal
Sales satisfaction performance is reported as an index score based on a 1,000-point scale,
with a higher score indicating greater satisfaction with the new-vehicle sales and delivery
processes. Overall satisfaction for mass market brands averages 809 in 2016.
94. ( http://www.jdpower.com/press-releases/2016-india-sales-satisfaction-index-ssi-study)
Opportunities
1. Developing more fuel efficient cars and hybrid cars by considering next genrations of
the future can be an opportunity for NEXA.
2. NEXA can target tapping emerging markets across the world and building a global brand
3. Fast growing automobile market and increased purchasing power will bost NEXA
objectives .
4. Considering Electric Cars could also act to target enviroment friendly segment .
Threats
1. Government policies for the automobile sectoracross the world
2. Ever increasing fuel prices
3. Intense competition from global automobile brands and cheaper brands can hurt Maruti Suzuki's business
4. Substitute modes of public transport like buses,metro trains etc
Stage 2:
Based upon PESTLE and SWOT identifygaps or opportunities
that the company can target afresh
95. Identify and qualifysegments by applyingthe segment
attractiveness measures (such as – measurability;accessibility;
substantialityetc.)
Ans :
Gaps or opportunitiesthat the company can target afresh are
these
1.NEXA is a domestic brand it could cater the foreign markets there is a huge
potential in international market .Company could launch Nexa showrooms in
other countries like pakistan , Bangldesh , Nepal etc
2.As one research says thatnexa showrooms arenotoffering the 100 % premium
characteristic which they claim they are made for , customer did not find it to be
as luxurious as other brands within its range . NEXA should improvetheir servises
for a long time customer. (Brand Analysis of Nexa Dr Komal Chopra Amit Singh
Kamit Malhotra Dhruv DuggalSymbiosis Instituteof Management Studies )
3.Nexa showrooms could beopen for prime cutomers of bikes/motorcycles
4.NEXA should introduce new models and design instead of Varients of the same
model . New car extririors
5.Customised Cars
6.Nexa should allso introduce Electric Cars
7.Nexa should use makein india campaign in their favour
8.Somepeople wantGood Mileage(the ratio of the number of miles traveled
to the number of gallons of gasoline burned ) in city due to traffic
problems . more fuel efficient hybrid cars
9.Two types of showroomaredamaging the luster of existing showroom
10.Nexa should mobile car repaing servicing to capture busy customers and
genrate more revenues
11.Onlinecustomer mrket.
96. 12.Nexa should make plan to avoid strikes and other as last time happened
should not repeat
13.Prentcompany should analysethe international reports and ractify the
problems
14.Nexa should use existing marutidealer network appropriatly
15.Nexa should focus on
……………………………………………
Identified segments after applying the segment
attractiveness measures (such as – measurability;
accessibility; substantiality etc.)
An attractive market segment is one that offers solid current or long-term profit potential for your
business. Companies typically consider the various segment options they have to market to and may
target one or multiple markets depending on how much money they have available to invest in marketing.
smallbusiness.chron.com/attractive-marketing-segment-22378.html
Segment 1
Identifiable (Geographicalsegment )
As Since the inception of NEXA it remained successfulso it should also
explore some foreign markets to genrate more revenues for the company.
Accessible
International buyer , online customer , Launching NEXA show room in the desired country
97. Substantial
As the new market will levrage the sales it will incrase the value of the company and its share
value will increase.
NEXA showrooms are exclusive . so very less competition .
Segment2
Identifiable (Behavirol Segment )
these are those people who have used or checked out other brand`s cars physically or online
when they use NEXA they find some lopeholes and missinformation so if they buy the car
once they avoide coming again or spread wrong word of mouth for the brand .
Accessible
By giving diffrent discount/benefit offers these buyers could be captured.
Firstly you can find these people online on the websites which facilitate in car comparasion .
Secondly while they come to your brand showroom . make a mchanism to identify that person
has used other brands or not.
Profitable
As due to these persons` bad reviews company bear big losses to satisfying other customers so
company should try to make them happy in reverse they will promote the brand free of cost
A large number of people behave in this way as on Black Friday offers so these could fetch the
company a good revenue.
Growth rate
This segment has huge potential as youtube and other social websites are expanding .
Segment 3
Identifiable (Demographic )
98. Midel and upper class could be the target .
Accessible
Same as Maruti has opened the NEXA for CARS it can Open NEXA showrooms for bikes as
well as . There is a big apportunity for capturing Prime bike customers.
Profit
bike is a need + style so there is a huge big market of this segment .Bikes are
not so much expensive as CARS but bikes could be sold more than cars
so could be profitable market .
Growth
There is huge potential of growth of this segment and right now there is no
competition too. The industry is growing at a rate of 30% annually.
Segment 4
Identifiable (Psychographic)
Some persons use a productfor few months and tired of that they want new verity
not the varients of same product.
Accessible
By making Exclusive CARS portion in the NEXA showrooms and frequently online promotions
and new exterior design production this segment of customers could be captured . company
can take orders in advance for their upcoming exclusive models for super premimum
customers .
Profit
99. Company can charge a little bit more for exclusive and limited
Cars.
Growth rate
This segment also has good potential if appropriatly focused and
advertised well.
Segment 5
Identifiable ( Demographic / Behavirol)
Some secular and tech lover buyers now want Electric cars but
almost no company in India is focusing on this NEXA could
make a hybrid engine of Electricity and CNG and become no1
brand through inception.
Accessible
These customers could be access through online car portals
data and advertisng on TV and social media.
Profit
New technology always sold on high prices and I think premium
customers can afford it too.
Growth
Some of the European countries have announced to
compeletly eliminate hzardous gas emiting cars. Which
100. means developing countries can aslo take such initiatives. So
there is a huge potential in this segment.
Segment 6
Identifiable (Demographic)
Some nationalist and conservatives always support the
product of their country NEXA can use the sentiments of
these people for their CAR sales e.g by launching a CAR in
the name “ Kirshina CAR “ could incrase the sales of the
company .
Accessible
These people could be accessed at religious places like
Temple and Nationalist processions and meetings and by
advertising on nationalist chanels as punjabi chaneli,hind
chanel etc.
Profitable
Launching a Product by featuring some culture or custome
will hit the sentiments of the people in this segment like
texture,Name and interrior will not be burden on the
company production line .
101. As company will launch the product for this
particular segment its sales could increase if
apprpriatly advertised.
Growth rate
This segment has great potential as there is
one dominated religion in the country so
cutomers can bost immesly.
Segment 7
Identifiable (Demographic)
Mileage lover : while considering the reviews of different NEXA Cars Models most people
were prefering and focusing on mileage so by providing good mileage car at reasonable price
this segment of customers can be captured.
Accessible
These customers could be found in middel classs some time in
lower middel class . ( access through TV ,Social media )
Profitable
AS most of the population belongs to middel class fulfilling the needs of this segment can
incrase the sales.
As other companies are already providing less mileage as
compared toNEXA in the same range of Price so NEXA
can improve revenue .
Growth rate
102. There is a huge potential in this sector is appropritly
addressed because middle class is maximum than upper and
lower class.
Segment 8
Identifiable (Geographic /Demographic )
Beyond the CAR selling NEXA can offer Primium CAR servicing which would be able to
collect the out of order CAR from any point within the range or provide car mobile servicing .
Accessible
Busy Persons , Ladies and almost all kind of people who can drive could be target customers .
and access through Social media and TV and bilboards.
Profit
Nexa has already established Its name this servicing could help in genrating more revenues by
usingthe name of NEXA. Company can easily afford the subsidiary business as it is already
running some others e.g CAR finance and insurance srvices.
Growth rate
Huge potentail of groth as there is CAR , car owner need a service firm too,no competitor and
CARS always rquire service so never ending business.
Segment 9
Identifiable ( Behavirol)
Most of the customer now purchase products online or take decisions by visiting online
webportals.company should focus on online advertising and good web experience.
Accessable
Found Online , for accessing this segment use google adsen advertise ,youtube , facebook
Profit
Online satisfaction will lead to purchase the product offline thus result in large profits.
103. Not so much expensive company can bear the easily expenses of managing online website and
ads .
Growth rate
Huge market immense groth rate. No need to explain
Segment 10
Identifiable ( Demographi)
Most customers want customised CARs for fulfilling their wants NexA could provide semi
customised cars for thses customers .
Accessible
No need to access them they will come to you just need to
promote the tag line “ we make what you want “
Profit
Only super premium customers can use the service and will
ready to pay what you demand.
Growth rate
Depend upon Country Economy and develpoment and purchasing power
Stage 3:
From the segments above, select ones that you
propose to target (Targeting)
104. Propose positioning strategy for chosen target
segment(s)
ANS :
I suggest the third segment (bike NEXA showroom)
Same as Maruti has opened the NEXA for CARS it can Open
NEXA showrooms for bikes as well as . There is a big
apportunity for capturing Prime bike customers .
Identifiable (Demographic )
Target market
1.Midel and upper class could be the target .
2.Target Market should be youngsters age group of above 18 and below 30 .
112. https://www.researchgate.net/publication/306373985_A_STUDY_ON_CONSUMER_BUYING_BEHAVI
OR_TOWARDS_TWO_WHEELER_BIKES
_IN_CONTEXT_TO_INDIAN_MARKET
by using above data make a NEXA bike
Growth
There is huge potential of growth of this segment and right now there is no
competition too.The industry is growing at a rate of 30% annually.
https://www.researchgate.net/publication/306373985_A_STUDY_ON_CONSUMER_BUYING_BEHAVIOR_TOWARD
S_TWO_WHEELER_BIKES_IN_CONTEXT_TO_INDIAN_MARKET
Profit
Bikes are not so much expensive as CARS but bikes could be sold more
than cars so showroom .
Affinity
Local or conservative factor could be fruitful in
this
USP (unique selling proposition)