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Marketing of Maruti Suzuki

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Marketing of Maruti Suzuki

  1. 1. 10/5/2014 1
  2. 2. Content Company Profile Evolution of Maruti Market Share STP 4 P’s SWOT Analysis 1 2 3 4 5 6 7 Sales Volume And Profit
  3. 3. Company Profile • Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament • Joint Venture agreement signed with the Suzuki Motor Company of Japan in Oct 1983 • 1992 Suzuki increased its equity to 50% turning Maruti into a non-government organization. • Maruti is the 3rd highest volume car manufacturer in Asia 10/5/2014 Group No.5 (Omega) 3
  4. 4. Evolution Of Maruti 10/5/2014 Group No.5 (Omega) 4
  5. 5. Sales Volume 0 200 400 600 800 1000 1200 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 Export Domestic (000) Units Source- www.marutisuzuki.com 10/5/2014 Group No.5 (Omega) 5
  6. 6. Financial Position 2011-12 2010-11 % change Net Sales Rs. 347,059 Mn Rs. 358,490 Mn Down by 3.2% Net Profit Rs. 16,351 Mn Rs. 22,887 Mn Down by 28.6% Total Volume 1,133,695 nos 1,271,005 nos Down by 10.8% Domestic 1,006,316 nos 1,132,739 nos Down by 11.2% Exports 127,379 nos 138,266 nos Down by 7.9% 10/5/2014 Group No.5 (Omega) 6
  7. 7. Market Share By Volume 48.75% 4% 4.25% 20% 5% 5% 8% 3% 2% MARUTI INDIA LTD HYUNDAI TATA MOTORS HONDA TOYOTA FORD GENERAL MOTORS VOLKSWAGEN OTHERS Source: Company data, Macquarie Research, April 2012 10/5/2014 Group No.5 (Omega) 7
  8. 8. Market Share In Export 10/5/2014 Group No.5 (Omega) 8
  9. 9. Financial Results(Rs Millions ) 2010-11 2009-10 Gross total income 375,224 301,232 Profit before tax 31,088 35,925 Tax expense 8,202 10,949 Profit after tax 22,886 24,976 Balance brought forward 100,499 80,042 Profit available for appropriation 123,385 105,018 Appropriations: General reserve 2,289 2,498 Proposed dividend 2,167 1,733 Corporate dividend tax 351 288 Balance carried forward to balance sheet 118,578 100,499 10/5/2014 GROUP NO.5(DELTA) 9
  10. 10. Competitors 10/5/2014 Group No.5 (Omega) 10
  11. 11. Closest Competitor 10/5/2014 Group No.5 (Omega) 11
  12. 12. Company Profile NAME HYUNDAI MOTORS INDIA LIMITED TYPE PUBLIC INDUSTRY AUTOMOTIVE FOUNDED 1946 HEADQUARTERS NEW DELHI PRODUCTS AUTOMOBILES REVENUE RS60,661CRORE,(US$11.09 billion) NET INCOME RS3,481CRORE(US$644.32 MIL)  EMPLOYEES 5930(2011) 10/5/2014 Group No.5 (Omega) 12
  13. 13. 10/5/2014 Group No.5 (Omega) 13
  14. 14. Segmentation  Demographic (Income Wise) Entry Level(2.5-5) lakhs Maruti Hyundai Alto 800 Eon Alto K10 Santro Zen Estilo i-10 Wagon-R 10/5/2014 Group No.5 (Omega) 14
  15. 15. Segmentation Mid Segment(5-10) Maruti Hyundai Swift i-20 Swift Desire Verna SX-4 Ertiga Premium Segment(10-25) Grand Vitara Santa Fe Kizashi Elantra Sonata 10/5/2014 Group No.5 (Omega) 15
  16. 16. Targeting Middle Class Middle Class 10/5/2014 Group No.5 (Omega) 16
  17. 17. Positioning Car of India Value for Money Low Maintenance Cost Car of young generation Innovative Products Largest car exporter 10/5/2014 Group No.5 (Omega) 17
  18. 18. Marketing Mix 10/5/2014 Group No.5 (Omega) 18
  19. 19. Product Portfolio 10/5/2014 Group No.5 (Omega) 19
  20. 20. Product Portfolio 10/5/2014 Group No.5 (Omega) 20
  21. 21. Eon v/s Alto 800 10/5/2014 Group No.5 (Omega) 21
  22. 22. i-10 v/s wagon-R 10/5/2014 Group No.5 (Omega) 22
  23. 23. i-20 v/s Swift 10/5/2014 Group No.5 (Omega) 23
  24. 24. Verna v/s SX4 10/5/2014 Group No.5 (Omega) 24
  25. 25. Santa Fe v/s Grand Vitara 10/5/2014 Group No.5 (Omega) 25
  26. 26. Price • Maruti Suzuki • The lowest price car is Alto • The highest price car is Grand Vitara with Rs . 2363840 • Hyundai • The lowest price car is Eon with Rs.278910. • The highest price car is Santa Fe with Rs. 2269561.
  27. 27. Maruti Suzuki Price Hyundai Price Low High Low High Maruti Suzuki Alto 800 250148 363815 Hyundai Eon 278910 382362 Maruti Suzuki Zen Estilo 352077 442235 Hyundai Santro Xing 293956 408200 Maruti Suzuki Wagon R 1.0 362077 449525 Hyundai i10 374214 623897 Maruti Suzuki A-Star 387513 470399 Hyundai i20 482412 789733 Maruti Suzuki Ritz 434425 643898 Hyundai Accent 523603 562840 Maruti Suzuki Swift 460874 698534 Hyundai Verna 723517 1146308 Maruti Suzuki Swift DZire 505790 756813 Hyundai New Elantra 1273088 1612272 Maruti Suzuki Ertiga 612735 890533 Hyundai Sonata 1885525 2096638 Maruti Suzuki SX4 737119 968917 Hyundai Santa Fe 2269561 2576740 Maruti Suzuki Kizashi 1697517 1799330
  28. 28. Place 10/5/2014 Group No.5 (Omega) 28
  29. 29. Place (Maruti) 1100 801 409 1305 1653 2958 1408 0 1000 2000 3000 4000 CITIES COVERED BY SERVICE NETWORK TOTAL SERVICE POINTS MASS'S DEALER'S WORKSHOPS MARUTI TRUE VALUE OUTLETS CITIES COVERED BY SALES NETWORK TOTAL SALES NETWORK 10/5/2014 Group No.5 (Omega) 29
  30. 30. Place (Hyundai) DEALERSHIP 451 0 100 200 300 400 500 600 700 SERVICE CENTER CITIES COVERED 647 340 10/5/2014 Group No.5 (Omega) 30
  31. 31. 10/5/2014 Group No.5 (Omega) 31
  32. 32. Promotion (Maruti) • Advertising - Tv ads- “Ghar Aa Gaya Hindustan” - Print ads - Radio Ads • Trade shows • Premiums (gifts) • Place Advertising – Bill boards • TV shows - India’s Got talent • Motor Sports- Reid De Himalaya • Brand Ambassador R.Madhvan 10/5/2014 Group No.5 (Omega) 32
  33. 33. Promotion 10/5/2014 Group No.5 (Omega) 33
  34. 34. Social Network Promotion 10/5/2014 Group No.5 (Omega) 34
  35. 35. Brand Ambassador 10/5/2014 Group No.5 (Omega) 35
  36. 36. Advertisement • ..DesktopmarutiTV Commercials for Maruti Suzuki - Branded Cars - Brands.flv 10/5/2014 Group No.5 (Omega) 36
  37. 37. Promotion (Hyundai) • Advertising - Tv ads- New Thinking New Possibilities - Print ads - Radio Ads • Place Advertising – Bill boards • Official Sponsor Of ICC T-20 World Cup 2012 • Brand Ambassador Shahrukh Khan 10/5/2014 Group No.5 (Omega) 37
  38. 38. Promotion 10/5/2014 Group No.5 (Omega) 38
  39. 39. Social Network Promotion 10/5/2014 Group No.5 (Omega) 39
  40. 40. Brand Ambassador 10/5/2014 Group No.5 (Omega) 40
  41. 41. Advertisement • ..Desktopmarutivideoplayback.FLV 10/5/2014 Group No.5 (Omega) 41
  42. 42. SWOT 10/5/2014 Group No.5 (Omega) 42
  43. 43. Strengths Maruti Suzuki Hyundai 1 2 Brand loyality & Brand Image 3 4 5 6 1 2 3 4 5 6 Reliablity. Experience in Indian market. Established distribution & after sales networks Diversified market Initiator in second hand vehicle sales through its True-value entity New Innovative design and technology Established name in Premium segment Brand Equity Largest exporter of car in Asia Quality products Strong financial position
  44. 44. Weakness Maruti Suzuki Hyundai 1 2 Low quality interiors when compare other major players 3 4 5 1 2 3 4 5 Maruti hasn’t proved itself in SUV Segment like others Still considered as lower segment brand Depend only on their successful products Long waiting period Costly maintainance Prices are slightly higher then competitors No presence in Utility vehicle (like Omni, Eeco) Not successful in SUV segment Quality products
  45. 45. Opportunity Maruti Suzuki Hyundai 1 2 Fast growing automobile industry 3 4 5 1 2 3 4 5 Increase in Potential Income of People Change in the lifestyle of people Developing hybrid cars for future. Opportunity to enter commercial vehicle Tapping emerging markets across the world. People preferring more innovative and new design Opportunity to enter commercial vehicle market Fast growing automobile industry Developing hybrid cars for future.
  46. 46. Threats Maruti Suzuki Hyundai 1 2 Labour Union Issues 3 4 1 2 3 4 Increasing fuel prices China entering Indian Automobile market. More Competition from foreign players More Competition from foreign players Government policies for automobile sector Government focusing more on Public transport China entering Indian Automobile market.
  47. 47. Conclusion • Still possessing the largest market share in terms of sale units, Maruti’s growth rate is declining day by day • It has to work a lot to stand on the top position and create a name in premium segment
  48. 48. References 1. Principles of Marketing (Kotler.Philip, Armstrong Gary). 2. Marketing Management AND case studies (ICMR publication). 3. The TIMES OF INDIA (Internet editions and New Delhi Edition-11.06.07) 4. www.surfindia.commarketingstartgiesautomobileindustries.ht ml 5. www.goi.govdisinvestments.pdf 10/5/2014 Group No.5 (Omega) 48

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