MINOR PROJECT REPORT- I ON

Market Analysis Of Maruti Udyog

Submitted in Partial Fulfilment F

BBA 2023-2026

Under The Guidance of:

Vaishali

SUBMITTED BY:
Saiyam Otwal
Enroll No. 02025501723

Jims Engineering Management Technical Campus

(Affiliated to Guru Gobind Singh Indraprastha University, New Delhi)
 INDEX
S.no Title Page No.

1 Certificate i.

2 Declaration ii.

3 Tables of content iii.

4 Executive Summary 5

5 Chapter 1 Introduction to the Company and Industry 6-13

6 Chapter 2 Introduction to topic 14-25

7 Chapter 3 Literature Review 26-31

8 Chapter 4 Research Methodology 32-33

9 Chapter 5 Data analysis 34-46

10 Chapter 6 Conclusion and Recommendation 48

11 Bibliography 49

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EXECUTIVE SUMMARY
The following project is made on the topic “A STUDY OF MARKETING STRATEGIES OF
MARUTI UDYOG (Maruti Suzuki India Limited)”.
In this project you will get to know about what marketing strategy is and what are the
marketing
strategies of MARUTI UDYOG (Maruti Suzuki India Limited).
Marketing Strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of their products or services. A marketing
strategy contains the company’s value proposition, key brand messaging, data on target
customer demographics, and other high-level elements. A thorough marketing strategy covers
"the four Ps" of marketing—product, price, place, and promotion.

The basic aim of the Marketing Strategy of Maruti Udyog is to give you deep insights into
Maruti Suzuki’s journey from a mere collaboration between Maruti Udyog (A
governmentowned entity) and Japan’s Suzuki Motor Corporation in the early 1980s to being
at the top of the auto industry presently.

For this particular project secondary data followed by descriptive research design is followed.

And in conclusion we have found that The Maruti Suzuki has a huge market and has left no
stone unturned to satisfy the customers. It has models in every segment of the automobile
market. Maruti Suzuki stands for value as much as it stands for performance. In spite of rising
input costs, the company tries their best to keep prices down. Their running costs and resale
values are unbeatable too. Competitive strategy of this company facilitated healthy profit and
customer satisfaction and its recognition as a company which stands for environmental
concerns. Nothing matches the delight their cars deliver. In fact, customer they don’t buy a
Maruti Suzuki, they invest in it.

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 INTRODUCTION TO COMPANY AND INDUSTRY
The automobile manufacturing industry in India dates back to 1948. At that time there were
just three companies manufacturing passenger cars i.e. Premier Automobiles in Mumbai,
Hindustan Motors (HM) in Kolkata & Standard Motors Products India in Chennai. In early
years the Indian automobile Industry faced several challenges and road blocks to growth
because in those days automobile manufacturing was subject to restrictive tariff structure,
strict licensing and limited avenues for expansion. Due to lack of competition initially the
prices of cars were extremely high. And the customers had to wait for a long period of time
for car. Before Independence India was considered as a market for imported vehicles. In the
1950s the arrival of Tata Motors, Mahindra & Mahindra & Bajaj Auto led to steadily
increasing vehicle production in India. In 1953 the government of India and the private sector
launched efforts to create an automotive component manufacturing industry to supply to the
automobile industry. By the end of 1970s, significant changes in the automobile industry were
witnessed. After 1970 the automobile industry started to grow, but that growth was mainly
driven by scooters, tractors and commercial vehicles.

In 1983, the government of India made a tie-up with Suzuki Motor Corporation of Japan to
manufacture low-cost cars in India. The Maruti 800 which is still known rolled out the factory
of Maruti Udyog Limited in December 1983 and changed not just India‘s automobile industry
but also the way people commuted and travelled. In 1990s through liberalization initiatives
India opened its gates for all the countries and in 1993, the government followed up its
liberalization measures with noteworthy reductions in the import duty on automobile
components. Today the Indian automobile market has a mix of large domestic automobile
players like Tata Motors, Mahindra & Mahindra, Bajaj, Hero Motocorp, Ashok Leyland and
major international giants including Suzuki, Honda, BMW, Audi, DaimlerChrysler, Volvo,
Hyundai, Toyota, Nissan, General Motors and Ford etc.

It is a subsidiary of Suzuki Motor Corporation, Japan and has been the leader of the Indian car
market for over two decades. Maruti Suzuki revolutionized the industry and put a country on
wheels. Since inception Maruti is credited with having catalyzed and led the modernization of
the Indian passenger car industry. Over its 26 years of journey, Maruti Suzuki transformed

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itself from a successful Public Sector Company (PSU) to a vivacious and listed MultiNational
Company (MNC), sustained its leadership position and remained profitable despite tough
competition. In October 2, 1982 the company signed the license and joined venture
agreement with Suzuki Motor Corporation, Japan. It was the first company in India to mass
produce and sell more than a million cars. In the year 1983 the company started their
productions and launched Maruti 800. In the year 1987 the company forayed into the foreign
market by exporting first lot of 500 cars to Hungary. In the year 2005 company launched
world strategic car model popularly known as Maruti Suzuki Swift which hit the Indian car
market. The core values of company include: Openness and learning Innovation and
Creativity Fast, Flexible and First mover Customer Obsession Networking and Partnership
Currently Maruti Suzuki India Ltd offers 14 brands which include Maruti 800, Omni, Eeco,
Zen Estilo, Alto, Alto-K10, A-Star, Wagon-R, Swift, Ritz, Swift Dzire, Sx4, Gypsy, and
Grand Vitara. Maruti Suzuki has a market share of 44.9% of the Indian passenger car market
as of March 2011. Today Maruti Suzuki has built a strong sales network of 600 outlets spread
over 393 towns and cities. The maintenance support is offered to the customers through 2628
workshops spread over 1200 towns and cities.

Joint Ventures

Relationship between the Government of India, under the United Front (India) coalition and
Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian
media until Suzuki Motor Corporation gained the controlling stake. This highly profitable
joint venture that had a near monopolistic trade in the Indian automobile market and the
nature of the partnership built up till then was the underlying reason for most issues.

Founded in 1983 as a joint venture between Government of India and Suzuki Motor
Corporation, Japan, with a motto of motorizing India, Maruti Suzuki India (MSI) is currently
a leading manufacturer of four-wheelers in India.

Initially, the company started with Government of India holding major stakes of the company.
As of present Government has disinvested its stakes in the company completely handing it
over to Suzuki Motor Corporation. With its two manufacturing units located at Gurugram and
Manesar, both south of Delhi Maruti Suzuki employs more than 75,000 employees.

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The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987,
and to 50% in 1992, and further to 56.21% as of 2013. In 1982, both the venture partners
entered into an agreement to nominate their candidate for the post of Managing Director and
every Managing Director would have a tenure of five years.

About and How it Works?

Maruti Suzuki India Limited is a holding company. The Company is engaged in the
manufacture, purchase and sale of motor vehicles, components and spare parts
(automobiles). The other activities of the Company comprise facilitation of pre-owned car
sales, fleet management and car financing.

Its geographical segments include the domestic segment, which includes sales to customers
located in India, and the overseas segment, which includes sales to customers located outside
India. The Company's product portfolio includes Alto 800, Alto K10, Wagon R, Celerio, Ritz,
Swift, DZire, Ertiga, Omni, Eeco, Gypsy, Ciaz, etc.

Its service offerings include Maruti Finance, True Value, Maruti Genuine Parts, Maruti
Genuine Accessories, Maruti Suzuki Auto Card and Maruti Driving School. It has
approximately five plants, located in Palam Gurgaon Road, Gurgaon, Haryana, and at
Manesar Industrial Town, Gurgaon, Haryana, with an installed capacity of over 1.5 million
vehicles per year.

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Logo and its Meaning

The present variant of Suzuki logo is designed in red and blue colours. The red colour (the
letter S of Suzuki) represents passion, integrity and tradition, while the blue(the letter M of
Maruti) stands for excellence and grandeur.

Figure 1.3 logo of Maruti suzuki

Founder and History

Maruti Udyog Limited was founded by the government of India on 24 February 1981,
only to merge with the Japanese automobile company Suzuki in October 1982. The first
manufacturing factory of Maruti was established in Gurugram, Haryana, in the same year.

The company was formed as a government company with Suzuki as a minor partner to make
a people's car for middle class India. Over the years the company's product range has widened
ownership has changed hands and the customer has evolved.

On October 2, 1982 the company signed the licence and joint venture agreement with Suzuki
Motor Corporation Japan. In the year 1983 the company started their productions and
launched Maruti 800. In the year 1984 they introduced Maruti Omni and during the next year

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they launched Maruti Gypsy in the market. In the year 1987 the company forayed into the
foreign market by exporting first lot of 500 cars to Hungary.

In the year 1990 the company launched India's first three-box car Sedan. In the year 1992
Suzuki Motor Corporation Japan increased their stake in the company to 50%. In the year
1993 they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the
market.In the year 1995 the company commenced their second plant. In the year 1997 they
started Maruti Service Master as a model workshop in India to look after sales services.

In the year 1999 the third plant with new press paint and assembly shops became operational.
In the year 2000 the company launched Maruti Alto in the market. In the year 2002 Suzuki
Motor Corporation increased their stake in the company to 54.2%.

Mission

Maruti Suzuki's mission statement says, "To be The Leader in the Indian Automobile
Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India."

Recent Acquisition

Maruti Suzuki India on 13 May 2020, said its board took a slew of decisions, including
acquisition of Delhi-based JJ Impex, and supply of Vitara Brezza to Toyota Kirloskar Motor
(TKM). The car major on said its board has approved acquiring 39.13% equity stake held by
Sumitomo Corporation, Japan and 10% held by Sumitomo Corporation India in JJ Impex
(Delhi), a company engaged in automobile service and repair business.

The cost of acquisition or the price at which the shares are to be acquired is fixed at Rs 21.73
crore, the company said.

After the acquisition, the company shall become the wholly-owned subsidiary of MSIL.
MSIL shall have the right to nominate/ appoint all the directors on the board of the company.
The nominee Directors of Sumitomo Group shall resign from the board of the company,
Maruti Suzuki India (MSIL) said. The acquisition does not require any government approvals,
it added.

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Business Model

Maruti Suzuki's product range extends from entry level small cars like Alto 800, Alto K10 to
the luxury sedan Ciaz. Other activities include facilitation of pre-owned car sales fleet
management, car financing. Its Business Segments are divided into : Operating Income from
sales of cars and Interests from Investments.

• Maruti Suzuki offers 17 models of cars

• Company focuses on catering to the needs of almost all the segments from the middle
class to high class through wide range of products

Revenue and Growth

Auto major Maruti Suzuki reported 2.05 per cent year-on-year growth in consolidated profit
at Rs 1,419.6 crore for the September quarter of FY21 (Q2FY21) while revenue rose 10.34
per cent to Rs 18,755.6 crore. In comparison, the company had posted revenue of Rs 16,997.9
crore and profit of Rs 1,391 crore in the corresponding quarter of last year.

Maruti Suzuki - Competitors

The top 10 competitors in Maruti Suzuki's competitive set are Tata Motors, Honda, Hyundai,
Mahindra, Toyota, Chevrolet, Ford, Volkswagen, Ashok Leyland and Mercedes-Benz.

PERFORMANCE OF MARUTI SUZUKI INDIA LIMITED

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A. The Sales trend of Maruti Suzuki from year 97 to 2008 is illustrated in Figure 1.4

Fig 1.4,Source: CMIE Prowess Database (97-2007) (Rs.in Crore)

From the above pie chart it is observed that in the March 2008 Maruti Suzuki‘s sales was
21221 Crore which is 21.55 % more than March 2007.

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B. The Industrial Sales trend of Maruti Suzuki from year 97 to 2008 is illustrated in Figure
1.4

Fig 1.5, Source: CMIE Prowess Database (97-2007) (Rs.in Crore)

As observed in the above chart it is revealed that the Industrial sales grew for the period Mar
04 to Mar 08. The Industrial sales of Maruti Suzuki in the year March 2008 was 20070.9
Crore which is 23.26 % greater than previous year.

INTRODUCTION

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WHAT IS MARKET?

A market is a place where parties can gather to facilitate the exchange of goods and services.
The parties involved are usually buyers and sellers. The market may be physical like a retail
outlet, where people meet face-to-face, or virtual like an online market, where there is no
direct physical contact between buyers and sellers.

WHAT IS MARKETING STRATEGY?

A marketing strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of their products or services.marketing strategy
covers "the four Ps" of marketing—product, price, place, and promotion.

A clear marketing strategy should revolve around the company's value proposition, which
communicates to consumers what the company stands for, how it operates, and why it
deserves their business.

There are four elements that make up the marketing mix, in which the 4P’s of marketing are
found to shape the crucial strategies to generate profits in the company and boost sales:

• Product strategies
• Pricing strategies
• Placing strategies
• Promotion strategies

BENEFITS OF A MARKETING STRATEGY

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The ultimate goal of a marketing strategy is to achieve and communicate a sustainable
competitive advantage over rival companies by understanding the needs and wants of its
consumers.

Whether it's a print ad design, mass customization, or a social media campaign, a marketing
asset can be judged based on how effectively it communicates a company's core value
proposition.

Market research can help chart the efficacy of a given campaign and can help identify
untapped audiences to achieve bottom-line goals and increase sales.

WHAT DOES A MARKETING STRATEGY LOOK LIKE?

A marketing strategy will detail the advertising, outreach, and public relation campaigns to
be carried out by a firm, including how the company will measure the effect of these
initiatives.

They will typically follow the "four P's". The functions and components of a marketing plan
include market research to support pricing decisions and new market entries, tailored
messaging that targets certain demographics and geographic areas, platform selection for
product and service promotion—digital, radio, Internet, trade magazines, and the mix of
those platforms for each campaign, and metrics that measure the results of marketing efforts
and their reporting timelines.

WHAT DO THE 4P’S MEAN IN A MARKETING STRATEGY?

The 4 P's" are product, price, promotion, and place. These are the key factors that are
involved in the marketing of a good or service. The 4 P's can be used when planning a new
business venture, evaluating an existing offer, or trying to optimize sales with a target
audience. It can also be used to test a current marketing strategy on a new audience.

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 Figure-1.1 4 P’s of marketing

1. The First P of Marketing: Product

When you think about your product, consider exactly what you're selling. Is it a specific
product? Or is it a service? Your product can be a physical product, an online app, or a
service such as house cleaning. Really, anything that you're selling is the product.

Then, think of your brand messaging, the services you offer, and even packaging. When you
define your product, think about what problem your product solves for your customers.

Consider how your product is different from competing products. What features are unique
to your product?

It's important to know your product intimately so you can market it.

Product Example

We’ll use Marketing Hub as an example.

What is it? “Marketing automation software to help you attract the right audience, convert
more visitors into customers, and run complete inbound marketing campaigns at scale — all
on one powerful, easy-to-use platform.”

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Who is it for? Modern marketers who juggle too much data and who are stuck with
impossible-to-use software solutions that make their job harder, not easier.

Which features does it have? Marketing Hub offers blogging, SEO, social media
management, email marketing, and ad tracking tools in a single, intuitive platform.

What problem does it solve? Marketing Hub simplifies the marketing automation process
for busy marketers by bringing all data and tools under one roof.

2. The Second P of Marketing: Price

When it comes to price, you have to consider how much you're going to charge customers
for your products or services. Of course, you need to make a profit.

When coming up with your pricing strategy, you also need to think about what competitors
are charging for the same product or service and how much customers are willing to pay.
You can also think about what discounts or offers you can use in your marketing.

When you decide on a price, you want to think about perception. Do you want to be known
as a cost-effective option in your industry? Or perhaps you're a luxury brand and the price is
slightly higher than competition on the market. Keep in mind that pricing SaaS products is
a little different than pricing physical products.

Either way, the language you use to market your product will be greatly impacted by the
price of your product.

Download a sales pricing calculator for free.

Price Example

Marketing Hub is priced to grow with you as you grow.

We offer the following subscription tiers:

• $0/month (Free)

• $45/month (Starter)

• $800/month (Professional)
• $3,200/month (Enterprise)

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3. The Third P of Marketing: Place

When it comes to place, this might mean the physical location of your company, but it could
also be defined as anywhere you sell your product, which might be online.

The place is where you market and distribute your product.

Remember that not every place makes sense for every product. For example, if your target
market is seniors, then it won't make sense to market on TikTok. It's important to choose the
right places to market your product and meet your customers where they're at.

Think about possible distribution channels and outlets you could use to sell your product. Be
sure to take into account whether your business is B2B or B2C.

At this point, you'll need to think about how to market your product on all the various
channels that make sense for your company.

Place Example

As a provider of a SaaS product, we offer Marketing Hub directly on our website.

Marketers can sign up for Marketing Hub by creating an account directly on our platform.
We’ve created a convenient sign-up page for free subscriptions — or they can request a
demo from our friendly sales team.

4. The Fourth P of Marketing: Promotion

Promotion is the bread and butter of marketing. This is when you'll think about how to
publicize and advertise your product.

Additionally, you'll discuss brand messaging, brand awareness, and lead generation
strategies

When it comes to promotion, keeping communication in mind is of the utmost importance.

What messages will resonate with your target market? How can you best promote your
product to them?

Think about where, when, and how you'll promote your brand.

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Promotion Example

We want to be where marketers are. Most importantly, we want to help them grow in their
careers — as well as grow their businesses.

Our inbound marketing strategy will focus primarily on organic acquisition. We’ll promote
Marketing Hub over the following channels:

• The HubSpot Marketing Blog

• HubSpot Academy

• Facebook

• Twitter

• Instagram

• YouTube

• LinkedIn

HOW TO DEVELOP AN EFFECTIVE MARKETING STRATEGY?

For an effective marketing strategy, it is necessary to know your competition and know that
what you offer to your clients has the added value that the competition does not have (FAB
ANALYSIS- features, advantages, and benefits).

After this define your target market in a demographic and psychographic way, this will help
to know why they need to buy product/services from you.

There are several ways to make marketing strategies effective, so it is necessary to focus on
the most important communication channels (traditional and virtual media) and to be able to
carry out the strategies with a successful follow-up of the implementation of the strategies.

Establish the objectives and the process:

• Analyse the position in the market: Identify the target audience, the competition and what
is happening in the company. In addition, define which are the strong aspects and those
that you should optimize.

• Establish goals: create achievable brand and sales objectives and determine the time
frame to reach them.

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• Design and tactics: after you examine the landscape, create the lines of action based on
strategies you know.
• Implement controls: Define how you will measure goal achievement and how you expect
performance to gradually improve

TYPES OF MARKETING STRATEGY

Portfolio Marketing Startegy

Segmentation Marketing
Startegy

Brand Positioning Marketing

Strategy

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 Functional Marketing Strategy

Loyalty Marketing Strategy

Content Marketing Startegy

Direct Marketing Startegy

Digital Marketing Startegy

Marketing Startegy With

Competition

Figure-1.2 types of marketing strategy

1. PORTFOLIO MARKETING STRATEGY-:

Analyse which products are sold, and which are not in order to decide which ones are still on
the market and continue with their manufacturing process since keeping the products that are
not generating economic income must be discarded.

2.Segmentation Marketing Strategy-:

This strategy is to decide which segments the market has been classified into. The
segmentation can be of three types:

• Differentiated: when addressing each of the market segments that have been identified
with a different offer and positioning. This strategy has a higher cost, but it will allow
to satisfy the specific needs of each selected segment

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 • Undifferentiated: segments with different needs are identified, but the company
chooses to address them with the same offer, in order to try to get the largest number
of customers
• Concentrated: only one of the market segments is chosen. This avoids making efforts
in other segments and allows the campaign to be focused. This is the most effective
strategy for companies that are growing

The segmentation strategy is derived from previous market research in order to classify the
segments and make good decisions about them.

3.Brand Positioning Marketing Strategy-:

The main marketing strategies on positioning are:

• Benefit: this strategy is based on positioning the product for the benefit it offers
• Quality/price: offering the highest quality at a competitive price
• Attributes: position the product by the attributes it has
• Use/application: position based on the use or application given to the product
• Categories: position yourself as a leader in a product category
• Competitor: compare your products with those of your competitors, this is a classic
strategy

When we talk about positioning strategy as a concept, we must consider that we are designing
three different strategic marketing keys: the positioning of the company, the positioning of the
brand and the positioning before the consumer.

4. Functional Marketing Strategy-:

This strategy is formed by the strategies of the marketing mix or also called the 4Ps of
marketing are variables of great importance to achieve the commercial objectives that the
organization has. The 4 variables are product, price, distribution, and promotion.

• Product: brand, image, warranty, after-sales services among others

• Price: modification of prices, discount scales, payment conditions etc.
• Distribution: packaging, storage, order management, inventory control, point of sale
location and transport
• Promotion: internal and external communication, supports and media.

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5. Loyalty Marketing Strategy-:

It will maintain customer loyalty. It will prevent them from leaving with the competition
thanks to the constant creativity and good customer service that the company will provide to
its consumers. It can include discounts, promotions, gifts, etc.

6.Content Marketing Strategy-:

This strategy is based on the creation of content such as: articles, computer graphics, eBooks.
This type of strategy can be used as a blog where you can:
• Publish news, trends and information about the company or specific product
• Reviews
• Educate the customer about the product/service

7.Direct Marketing Strategy -:

A direct-customized message is implemented with the client. The consumer values the fact
that the company communicates in a personal way for him/her as close ties are created.
8. Digital Marketing Strategy-:

Today most companies do digital marketing something that was not common several years
ago.
Being just one click away from information makes this strategy popular.

The following can be applied:

• Inbound marketing, used to attract and convert customers organically through useful
content
• Mailing where segmented communication can be established
• Social networking to connect your posts with customers
• Web search engines to make the brand appear in the first options, among others

With the type of strategies mentioned you can visualize what objectives you want to achieve
and what results you want to bring to your company in a short term.

9. Marketing Strategy with Competition-:

This strategy focuses on competitive value. You must define where you are in the market
compared to your competition.

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 • If you are above your competitors, maintain that position.
• If you are below the competition, scale your position.
• If you are below, you can also stay there, in case fighting for a higher place is
counterproductive.

OBJECTIVES

OBJECTIVE OF THE STUDY

• To understand the marketing strategy followed by Maruti To analyse how

Maruti is different from its competitors.

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• To study the SWOT Analysis of Maruti Suzuki India Limited.

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LITERATURE REVIEW

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LITERATURE REVIEW FOR THE MARKETING STRATEGIES OF MARUTI UDYOG

Sumit Jain & Dr.R.K.Garg (2010), in their research paper described about current scenario
of automobile industry and challenges facing by Industry. They pointed that, the companies
have to shorten product lifecycles in order to react to the expectations of individualize and
fast changing consumer demands with innovative products, and the integration of strategic
partners with more responsibility into the value chain should be intensified. Exim bank‘s
occasional paper highlighted that the global financial meltdown of the year 2008 has created a
precarious condition across various sectors, which has forced countries and industries to take
a fresh look at their future strategies. The paper also pointed out that the Indian automotive
industry holds significant scope for expansion, both in the domestic market, where the vehicle
penetration level is on the lower side as compared to world average and in the international
market, where India could position itself as a manufacturing hub.

Rajkumar Gautam & Sahil Raj (2009), in their research paper depicted the scenario of
automobile sector of the world and India. In their paper they have investigated that the
globalilzation process has affected the sector in all the areas of manufacturing, sales, personal
research & development and financing. They also concluded that, in order to meet the
challenges posed by globalization the Indian automobile manufacturers need to ensure the
technological advancement, appropriate marketing strategies and adequate customer care
feedback system in their organizations.

P Krishnaveni(2009)in her article focuses on the current details and some future plans of
Maruti Suzuki India Ltd. The article also highlighted the various innovation of company like
introduction of Electronic power Steering (EPS), introduction of superior quality of 16*4
hypertech engines.

Menon Balkrishnan & Dr.Jagathy Raj V.P, (2012) in their research paper, ―Model
development and validation for studying consumer preferences of car owners‖ highlighted on
various consumer purchase behavior patterns of passenger car owners in the state of Kerala.
Their findings indicate that customer focus is a major differentiator in the passenger car
industry, wherein the customer looks for personalized care for his after sales service with the
manufacturer. The study also reveals that for the youths, peer group is the greatest influencing
factor, of their car purchase decision.

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Manmohan N & Dr. Ganapathi R, (2012) in their research paper, ―Customer preferences
and attitudes towards Maruti cars in Pollachi taluk‖ highlighted on customer preferences,
attitude and satisfaction regarding Maruti cars. The authors stated that Maruti 800, Omni, Zen
and Wagon R are popular models of Maruti Suzuki. The authors suggested that Maruti Suzuki
should concentrate and enhance their services like timely delivery, after sales service,
handling customer enquiries etc. They also suggested that the company should launch its car
with some added features with competitive prices.

Suganya R, (2012) in her research paper highlights the effect of brand equity on consumer
purchasing behavior on car. The paper speaks that brand plays vital role in car sales, not only
to attract but also to retain customers. The author concluded that brand awareness and
perceived quality proved to influence the brand loyalty. Also brand loyalty and brand
association affect customers‘ attitudes towards brand.

Phule Mohan, (2012) in his Ph.D thesis, ―Exploring Marketing strategies and customer
satisfaction in automobile industry: a comparative study of Aurangabad and Pune city‖ found
that telephone, internet are the most preferred sources of collecting feedback. He also
suggested that the company should use advanced technology and try to increase the efficiency
of car. He also suggested that with an object to minimize the complain of car regarding after
sales service, the automobile companies should have direct linkage with the customers
through email, and the company should focus that whether the customers are really satisfied
with after sales service or not.

Vidyavathi K, (2012) in her research paper, ―Consumer lifestyle influence of consumer

behavior with reference to automobile industry in Chennai‖, throws light on growth of Indian
automobile industry along with various features that the manufacturers should concentrate on
to attract the prospective buyers. The author also suggested that the automobile manufacturers
should find out the needs, wants, tastes and preferences of the consumers in order to design
the products. The study reveals that the middle class population has risen to 13 percent of the
total population. Hence the brand image and brand loyalty could be boosted by selling quality
automobiles at a reasonable price to suit the needs of the middle income group. As far as after
sales service is concerned, the author lastly suggested that the services rendered or to be
rendered should be properly explained, friendly approach and reliability in service are to be
further improved.

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Lokhande & Rana (2013) discussed about the various Brand positioning, Advertising,
Distribution strategies adopted by Maruti Suzuki to capture the market. They also highlighted
the unique promotional strategies executed by the brand which included Teacher Plus
Scheme, 2599 scheme, Change your life campaign etc.

Fatma & Kumari (2013) discussed about the promotion strategies applied by the Company
which includes road shows to display vehicles in the pavilions during various college
festivals and exhibition, radio advertisements to convey about the product features, price,
qualities, etc. and print advertisements in leading newspapers. They also discussed about
other print promotion tactics such as brochures, leaflets, banners and posters at public places
to reach the customers. Workshops and seminars are also used to display various models of
Maruti Suzuki at the same time offering test drive.

McCabe & Malefyt (2010) analyzed two past advertising campaigns for luxury cars,
Cadillac and I nfiniti, to show how these brands were stabilized as cultural forms at one
moment in time and why one was accepted and the other rejected by consumers. They
concluded that interactivity lies in the contested and negotiated meaning of things in lived
experience.

Mariel & Sandonís (2004 ) developed a dynamic duopolistic model of advertising and price
competition, in which they concluded that advertising accumulates a stock of goodwill which
enters directly into the demand functions and both the cooperative and predatory effects of
advertising are considered. They also presented estimations of the demand using data from
the German automobile industry finally concluding that advertising plays an important role in
the automobile market and has a predatory nature.

Greuner, Kamerschen & Klein (2000)examined the effect of advertising on competition in

the US automobile industry. With a diverse set of data including advertising, sales, profit, and
market-share figures for General Motors, Ford, and Chrysler over a 25-year period from 1970
to 1994, they concluded that advertising serves primarily to transmit information, not to
create entry barriers.

Mohmed Irfan, C. Sumangala, and Lancy D’Souza (2018)identified the significance given
to physical products in the automobile sector than other marketing mix elements, to know the
relative strength of product related Green Marketing Mix Strategies against other Green

27
Marketing Mix Strategies and to determine the comparative strength of other Green
marketing Mix Strategies i.e. Price, Promotion and Place. The study found that product
related Green marketing Mix Strategies played significant role than other Green marketing
Mix Strategies, particularly with regard to place and price related Green marketing Mix
Strategies.

Ekta Chakravarty(2018) conducted a study to know the different strategic implementation

done to increase the sale in automobile company. The study is been scoped to north eastern
region of India. The data followed with primary as well as secondary means. The researcher
tried for the betterment of sales and also initiated recommendation in view of marketing
strategies to help to increase sales. The study found that good dealer networks, after sales
services, customer relationship management, branding, and celebrity endorsement were key
marketing strategies that organization uses for success in automobile industry.

As stated by Lokhande, Murlidhar A, and Rana Vishal Sunil(2018), today, due to

increased competition and revolutionize in customer needs, automobile companies are very
much conscious about structuring a different strategy. According to authors companies
realized that innovative branding and marketing strategies are keys to capture the market.

Govind Shinde, and Manisha Dube conducted a study on Indian Automobile industry and
performance of key players during the years2005 to 2010. According to study, regardless of
economic slowdown, the Indian automobile sector has revealed high growth. However, study
suggested that strict quality standards, services and use of latest technology can provide
added competitive edge over competitors in an automobile sector.

Chu Chai Henry Chan(2018) presented a new approach that combined customer targeting
and customer segmentation for campaign strategies. The study identified customer behavior
using a Recency, Frequency and Monetary (RFM) model and then used a customer Life Time
Value (LTV) model to evaluate proposed segmented customers. The study results
demonstrated that the proposed method is more effectively target valuable customers than
random selection.

Koen Pauwels, Jorge Silva-Risso, Shuba Srinivasan and Dominique M.

Hanssens(2018)investigated the short- and longterm impact of marketing strategies on
financial metrics, including top-line, bottom-line, and stock market performance. The authors
applied multivariate time-series models to the automobile industry, in which both new

28
product introductions and promotional incentives were considered important performance
drivers. The study found that marketing increases increase top-line firm performance;
however, long-term effects strongly differ for the bottom line. The study also found that new
product introductions increase long-term financial performance and firm value, but
promotions fails to increase longterm financial performance and firm value.

Andreas F. Grein, C. Samuel Craig and Hirokazu Takada(2018) provided insight into
how automobile firms plan strategies that respond to the conflicting pressures for local
responsiveness and integration. The authors developed a conceptual structure to test
integration-responsiveness in terms of marketing-mix responses and market conditions. The
findings indicated that automobile firms are successfully following standardization strategies
rather than fully combining integration and responsiveness.

Dae-Ho Byun(2018) presented a methodological extension of the analytic hierarchy process

which provides a structure on decision-making procedure wherever there are a restricted
numbers of choices but each has a number of attributes. The study found that it was important
to include elements that offer characteristics that make consumer decision-making easier,
comfortable and lead to a car purchase. The study also found that demand for innovation
provides better customer service and strategic competition in the business management.

According to Andreas F. Grein(2018)formulation of finest marketing mix is quite complex

when that mix must be effectual across multiple international markets. Author examined the
marketing mixes of more than thirty automobile companies competing in the five major
markets in Western Europe. The study resulted that easily changed marketing mix elements,
such as prices and advertising reflect market similarity, interdependence, and productmarket
conditions. The study revealed that the number of models offered does not appear to reflect
any of these types of conditions.

Eric Lapersonne, Gilles Laurent and Jean-Jacques Le Goff(2018) argued that building
consideration set by consumers; consumers decide to stop if a further search for possible
solutions is not perceived to be potentially cost-effective. Authors presented the results of an
empirical exploratory study of about 1000 recent buyers of a new car. The study found that,
seventeen percent considered the brand of their previous car, and had therefore a
consideration set of size one.

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 RESEARCH METHODOLOGY

Research methodology simply refers to the practical “how” of any given piece of research.
More specifically, it’s about how a researcher systematically designs a study to ensure valid
and reliable results that address the research aims and objectives.

For example, how did the researcher go about deciding:

• What data to collect (and what data to ignore)

• Who to collect it from (in research, this is called “sampling design”)

• How to collect it (this is called “data collection methods”)

• How to analyse it (this is called “data analysis methods”)

Research design

A research design is a framework of a blueprint for conducting the research project. It

specifies the details of the procedure necessary for obtaining the information needed to
structure or to solve the research problem. There are two prominent research designs that are
used widely, namely, descriptive design and experimental design.

Descriptive design

Descriptive research designs help provide answers to the questions of who, what, when,
where and how associated with a particular research problem; a descriptive study cannot
conclusively ascertain answers to why.

30
Descriptive research is used to obtain information concerning the current status of the
phenomena and to describe “what exists “with respect to variables or conditions in a
situation.

Experimental design

A blueprint of the procedure that enables the researcher to maintain control over all factors
that may affect the result of an experiment. In doing this, the researcher attempts to determine
or predict what may occur.

Experimental research is often used where there is time priority in a causal relationship (cause
precedes effect), there is consistency in a causal relationship (a cause will always lead to the
same effect), and the magnitude of the correlation is great. The classic experimental design
specifies an experimental group and a control group. The independent variable is
administered to the experimental group and not to the control group, and both groups are
measured on the same dependent variable. Subsequent experimental designs have used more
groups and more measurements over longer periods. True experiments must have control,
randomization, and manipulation.

The type of research design used is descriptive research.

Data collection

Data Collection is a term used to describe a process of preparing and collecting business data
– for example as a part of process improvement or similar project. Data can be collected by
two methods: -

• Primary data

Primary data is to be collected by the concerned project researcher with relevance to his
problem. So, the primary data is original in nature and is collected first hand.

• Secondary data

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It is the data already existing, which has gone through some standard analysis. Under the
secondary data, the company’s annual reports, broachers, pamphlets, newspapers, journals,
and internet were taken into consideration.

SOURCES OF DATA COLLECTION-:

• Secondary data

ANALYSIS AND FINDINGS

Segmentation, targeting, positioning in the Marketing strategy of Maruti Suzuki – About
Maruti Suzuki India:

In earlier days when the market was dominated by only few brands like Ambassador &
Premier Padmini, Maruti Suzuki India Limited entered the Indian market with different
strategy. The strategy of the company was to offer a compact, modern and fuel efficient car.
Maruti released its first Maruti 800 car on 14 December 1983 to fulfill the dreams of Indian
customers and became the market leader. Since 1983 till date Maruti Suzuki gradually offered
several choices to the consumer. Due to aggressive competitors today Maruti Suzuki believes
in Innovative Marketing Strategies. With the changing needs, wants & requirements of
customers and markets, Maruti Suzuki is altering their Brand Positioning, Advertising and
Distribution strategy.

Subsidiary of the Japanese automotive manufacturing company Suzuki, Maruti Suzuki India
Ltd was founded in 1981 and is headquartered in New Delhi. Beginning a new chapter in the
history of automobiles in India, Maruti Suzuki India launched the 800, a runaway success
which stood for reliability and ease of ownership.

Also known as the people’s car manufacturer, it faces stiff competition from other automotive
giants such as Hyundai, Ford, Honda, Tata etc. Customer satisfaction, low cost of ownership
and high resale value are some of the major characteristics associated with Maruti Suzuki.

Having the wide range of models in almost every segment of the automobile market Maruti

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Suzuki offers 16 brands and 150 variants spanning across all segments consisting of Maruti
800, Maruti Zen EstiloMaruti Omni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A Star,
Maruti Wagon R, Maruti Swift, Maruti SX4, Maruti Kizashi, Maruti Eeco, Maruti Ertiga,
Maruti Grand Vitara. Thus serving the diverse range of customers. Brand product strategy
focuses on catering to the needs of almost all the segments from the middle class to high
class.

With cars in the economy segment, mid-range segment luxury and super premium segment
Target group for the brand includes anyone above 4 Lakh p.a. salary, people looking to switch
from 2-wheeler to 4-wheeler, millennials employed as professionals and managers. The
middle class, Upper middle class, High class, and Affluent class the age bracket of 21-65
years comprises of its target group.

MSI positions all its16 brands in almost as many ways to serve different wants and desires of
consumers such as:

Alto– Let’s go- Positioned as India’s most fuel efficient car which can be afforded by lower
income groups as well.

Wagon R– Inspired Engineering- Positioned as a brand which goes well with people who
want to lead economic and interesting lifestyle, reflect confidence and have the multifaceted
personality.

Swift– You’re the fuel– Positioned as the car with style, modern looks, and young attitude.

Swift Dzire– The heart car- Positioned as an entry-level sedan for the aspirational class.

SX4– Men are Back– Positioned as the powerful car for men.

Ertiga– “A Feeling called LUV” – Life Utility Vehicle– Positioned as a compact seven-seater,
one which will have a small footprint and a tight turning radius.

MARUTI SUZUKI BRAND POSITIONING STRATEGY:

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Brand Positioning is the most vital concept in a brand‘s strategy. Brand Positioning is also
linked with managing a brand‘s meaning. Today several brand of cars are positioning
themselves on the features like Price, Comfort dimensions, Safety, Mileage etc. Currently
Maruti Suzuki followed a very effective multi-segmentation strategy to grab the different
segments of the market with different versions of its brands. About brand positioning Mayank
Pareek says that, Maruti Suzuki believe in research and before launching a product the Maruti
team does an extensive research on the needs of the customer. Maruti try to understand the
customer‘s demography and psychology to position a brand. Also the company follows the
suggestions made by existing customers.

1. Maruti 800

Considering the middle class & small families the Maruti 800 was launched. The car was
also targeted at the urban professionals. It was projected as a car with minimum maintenance
needs and with greater fuel efficiency. Later the company added some features like MPFI
(Multi Point Fuel Injection) technology & few changes in front grill, head light, and rear
light.

2. Omni:

Earlier the Omni was known as Van. The van was targeted more at businessman, tourist taxis
and large families. It was positioned as a vehicle offering benefits of a car with more space.
But due to some different perceptions of consumers regarding van, after some time the van
was renamed as Omni and was repositioned as the most spacious car. Recently Maruti Suzuki
launched new variant called Omni Cargo which has been positioned as a vehicle for
transporting cargo and meant for small traders.

3. Alto:

Maruti launched Alto with tagline ‗Let‘s Go‘. In the TVC of Alto, a young married couple
goes to different destinations in their Alto. By this TVC Maruti positioned Alto as a car for
young people. Also the car has highlighted as fuel efficient car.

4. Wagon R:

Maruti Suzuki launched the Wagon R brand in February 2000. This is one of the successful
brand from Maruti portfolio in the premium segment of compact cars. Wagon R was initially

34
positioned on the basis of the functionality platform. Earlier this car was promoted as a family
car with the baseline, ‗Feel at Home‘. Then as per the changing pattern of market ,
competition and customers Maruti altered the positioning of Wagon R from Feel at Home to
‗Inspired Engineering‘ to ―As Interesting as you are‖ and finally to ―For a Smarter Race‖.

5. A-Star:

While speaking about A-Star Mr. Shashank Srivastav says that the A-Star was the only car in
the Indian market that was targeted at the urban youth. ―It is about the new generation of
Indians who are confident‖. Also in the second campaign, which was done around July 2009,
the company‘s focus was to inform the consumers about the AStar‘s K-Series engine. The
current campaign of A-Star focuses on self belief and confidence. Considering the fact that
self belief and confidence are the attributes of youths, Maruti has positioned A-Star very well.
In the current ad campaign a focus has given to a young person who goes for an Interview &
with his confidence and self belief he impresses all.

MARKETING STRATEGIES OF MARUTI SUZUKI INDIA LIMITED

Marketing Strategy of Maruti Suzuki analyses the brand with the marketing mix framework
which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing
strategies like product innovation, pricing approach, promotion planning etc. These business
strategies, based on Maruti Suzuki marketing mix, help the brand succeed.

Maruti Suzuki marketing strategy helps the brand/company to position itself competitively in
the market and achieve its business goals & objectives.

Let us start the Maruti Suzuki Marketing Strategy & Mix to understand its product, pricing,
advertising & distribution strategies:

MARUTI SUZUKI PRODUCT STRATEGY:

The product strategy and mix in Maruti Suzuki marketing strategy can be explained as
follows:

Maruti Suzuki India has a diverse product portfolio and is present in such categories of cars as
hatchback, supermini, SUV, sedan and van. The entire product portfolio of automobiles are a

35
part of the products in the marketing mix of Maruti Suzuki. Its products are Maruti Alto,
Celerio, Wagon R, Maruti Swift, Baleno, Maruti Gypsy, Eeco, Maruti Ciaz, Ertiga, Dzire, S
Cross, Ignis and Maruti Omni. In most categories its cars are segment leaders and priced
competitively.

Maruti Suzuki manufactures 1.5 million cars each year with 15 car models and a total of 150
variants. In January 2016, Maruti Suzuki India had a total market share of 47% amongst all
passenger cars sold.

Maruti also offers services such as Maruti finance, Maruti Insurance, Maruti True Value (used
cars), Maruti Accessories and Maruti Driving School to promote the growth of its bottomline.

Figure1.6 Maruti Swift design

MARUTI SUZUKI PRICE/PRICING STRATEGY:

Below is the pricing strategy in Maruti Suzuki marketing strategy:

One of the key drivers of volumes of sale for Maruti Suzuki has been its ‘value for money’
strategy.

This comes from its low cost learning from years of engineering in India. By providing light
weight yet safe cars, Maruti is able to cut down on costs and price its cars competitively, in

36
some cases undercutting the competition by 7-10 percent. Maruti’s low cost of ownership,
affordable spares, long service intervals ensure that the pricing strategy of Maruti is
implemented not just at the time of sale but also after the car has been bought. This gives
Maruti an edge and makes it such a popular car company. Thus the pricing strategy in the
marketing mix of Maruti Suzuki is dependent upon the competitors, market dynamics and the
segment catered to.

MARUTI SUZUKI ADVERTISING STRATEGY:

The promotional and advertising strategy in the Maruti Suzuki marketing strategy is as
follows:

Having decades of presence in India enables Maruti to leverage its barand value and brand
perception well. It also helps Maruti cut down on promotional costs. Maruti uses unique
advertising methods to promote its cars and often ropes in stars and celebrities as brand
ambassadors for various cars models. Maruti has utilized heavily the online promotion space
for the launch of its Brezza, Ignis and S Scross. Maruti also uses traditional advertising
spaces such as newspapers, television, radio, ATL etc. Maruti Suzuki also used pint of sale
and mobile promotions and the message across all the above platforms is focussed on fuel
efficiency, looks, comfort and space for its cars. Hence, a 360 branding approach is followed
in the promotional strategy of marketing mix of Maruti. The ad campaigns often highlight the
huge service network of the brand. Thus, this summarizes the marketing mix of Maruti
Suzuki.

Advertising is one aspect of brand building. Whenever Maruti launched any brand, it
supported that brand with an ad campaign. Maruti‘s advertising campaigns included TVCs,
Radio and Print ads, Point of Sale, Mobile promotions, online marketing, Outdoor
promotions. 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, etc. In the late 1990s, Maruti‘s advertising campaigns were handled by Lowe India

37
(later known as Lowe Lintas & Partners, India) and Rediffusion DY&R. While advertising
related to Esteem, Zen and Baleno were handled by Lowe India and the ad campaign of
Maruti 800, Gypsy, Omni and Wagon-R were handled by Rediffusion. With an intention to
promote the all brands effectively, in 2000 Maruti decided to appoint Capital Advertising. In
2003, Maruti Suzuki came up with an innovative advertising that became popular for its
simplicity and clear message. In this ad one child plays with his toy car & when the father
asked him, he replies, ‗Kya karoon papa petrol khatam hi nahi hota‘. This ad depicted the
fuel efficiency of Maruti Suzuki.

BRAND RELATED ADVERTISMENTS OF MARUTI SUZUKI INDIA LIMITED:

Maruti segmented the customers by designing its brand specific advertisements. The
advertising of Maruti was targeted towards the needs and wants of a particular consumer
segment.

1. Wagon R

Maruti launched Wagon R in 2000 and launched an ad campaign with the tagline, ‗A Car
Full of Ideas‘. In May 2009, Maruti launched an outdoor campaign for Wagon R using
billboards, mobile vans, unipoles etc. The outdoor ads of WagonR were placed on 23
outdoor sites in and around airports of several cities across India. In the ads different
backgrounds were highlighted and each ad displayed a landmark structure from each city
with different messages. For e.g, in Mumbai it was,‘ Welcome to the city of film stars and

WagonR‘, in Hyderabad, the message was ‗Welcome to the city of Charminar &
WagonR‘.

2. Swift

In 2005, Maruti came up with an ad campaign for its new Swift. The ad campaign
included print ads, teaser TV ads and a TVC. In the TVC ad a Maruti Swift car being

38
 driven by a young couple at high speed on the road without stopping & car stopped only
after chased by a traffic police.

3. A-Star

Maruti has always been advertised A-Star with the tagline of ‗Stop at Nothing‘ which
shows the attitude that this car has always stood for. In this ad Farhan Akhtar was the
brand ambassador during the launch and the launch TVC also shared elements with the
Bollywood hit film ‗Rock On‘ to make it more relatable to the young adult seeking an
expression for his passion. According to Mayank Pareek, Head of Marketing, Maruti
Suzuki India Ltd says that Cyber media is the best Marketing tool. The company has
displayed their banners on various internet sites. And due to boom of Cineplex‘s and
Malls, marketing has become easy.

MARUTI SUZUKI PLACE AND DISTRIBUTION STARTEGY:

Distribution is an important marketing mix. In earlier days the consumers used to book for a
car and wait for more than a year to actually buy it. Also the concept of Show rooms was
nonexistent. Even worse thing was the state of the after sales service. With an objective to
change this scenario & to offer better service to customers, Maruti took initiative. To gain
competitive advantage, Maruti Suzuki developed a unique distribution network. Presently the
company has a sales network of 802 centres in 555 towns and cities, and provides service
support to customers at 2740 workshops in over 1335 towns and cities. The basic objective
behind establishing the vast distribution network was to reach the customers even in remote
areas and deliver the products of the company. The company has formed the Dealer territories
and the concept of competition amongst these dealers has been brought about. Periodically
corporate image campaigns in all dealership are carried out. In 2003, to increase the
competition the company implemented a strategy for its dealers to increase their profitability
levels. Special awards were sometimes given by company for sales of special categories.
Maruti Suzuki had given an opportunity to dealers to make more profits from various avenues
like used car finance and insurance services. In 2001, Maruti started an initiative known as

39
‗Non Stop Maruti
Express Highway‘. As a part of this initiative Maruti developed 255 customer service outlets
along with 21 highway routes by 2001-02. Also with an intention to provide fast service in
less time Maruti had offered Express Service

Following is the distribution strategy in the Maruti Suzuki marketing mix:

Maruti ‘s service network spans most states of India and is spread across 1400+ cities
manufactured at 2 factories, Manesar and Gurgaon with an annual capacity exceeding 15 lakh
cars per annum. Maruti plans to set up another plant in Gujarat for which it has acquired 600
acres of land. Maruti has around 1800+ sales outlets in all the cities combined and has a
dealership which is wider than such competitors as Hyundai, Tata and Mahindra, even in the
rural landscape.

The place strategy in the marketing mix of Maruti covers not only its presence of dealers but
also service centres, Service is a major revenue generator for the company, thanks to its wide
network.

Facility. In the year 2008, Maruti had near about 2,500 rural dealer sales executives,
among the total 15,000 dealer sales executives.

MARUTI SUZUKI PROMOTIONAL STRATEGY:

Every company is it a big or small needs an innovative promotional strategy because

promotional campaigns tend to have a huge effect on the reception of the product. Maruti
Suzuki India Ltd has a formidable line-up of vehicles in its stable and has been quite
aggressive about promoting each of its automobile brands. With an intention to face with
cutthroat competition and due to declining market shares, in 2000 Maruti Suzuki cut the
prices of few models like Wagon R, Omni and Maruti 800 because Maruti knew very well
that the Indian consumer is very sensitive about price & this price cut will definitely
beneficial for company. In Jan 2002 to attract the customers, Maruti decided that some of its
corporate assets in Delhi including Maruti‘s manufacturing plant and children‘s park should
be promoted. With an intention to promote road safety and efficient driving the company held
‗carnivals‘ periodically at IDTR. In 2003, to attract the customers Maruti Suzuki launched
attractive campaign like

40
―Change Your Life‖. The company also offered vehicle insurance for One rupee only. In this
campaign the customers were asked to write down the chassis and engine number of their
vehicles on the entry form and had to answer the question. In this contest the winners were
chosen by a draw of lots and were entitled to gifts worth Rs.50 million. In 2004, Maruti
introduced the ‗2599‘ offer under which by paying an EMI of Rs. 2599 for seven years after
a down payment of Rs.40000, a consumer could buy a Maruti 800. In 2004 Maruti introduced
the ‗Teacher Plus‘ scheme, in a tie up with SBI. In this scheme the bank offered reduced rates
of interest for teachers who were interested in buying a new car. Rural India is a fast
emerging as a focus area in the country‘s economy. Maruti knew that there is a great potential
in rural markets & in rural markets, the endorsements of opinion makers takes precedence
over an informed objective Judgment. Considering this fact, Maruti Suzuki launched a
panchayat scheme for such opinion makers which covers the village Sarpanch, doctors and
teachers in government instititutions, rural bank officers where in an extra discount is given to
make a sell. As a part of customer engaging strategy and to attract the potential customers
Maruti organized various melas wherein local flavor is added by organizing traditional social
activities like Gramin Mahotsava are conducted round the year. As a part of promotional
approach Maruti Suzuki promoted Swift & other brands through sponsoring various live
programmes (Dancing shows) like Dance India Dance.

SWOT ANALYSIS OF MARUTI UDYOG:

In this section of the report, we will be conducting SWOT analysis on MARUTI UDYOG, in
which we will analyse the brand by its strengths, weaknesses, opportunities & threats.

SWOT analysis of Maruti Suzuki analyses the brand by its strengths, weaknesses,
opportunities & threats. In Maruti Suzuki SWOT Analysis, the strengths and weaknesses are
the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Maruti
Suzuki to benchmark its business & performance as compared to the competitors. Maruti
Suzuki is one of the leading brands in the automobiles sector.

To better understand the SWOT analysis of Maruti Suzuki, refer to the info graphic below:

41
 Figure1.7 infographic of swot analysis of maruti suzuki

Now first let’s begin with the strengths of the company from the SWOT analysis of Maruti
Suzuki.
Strengths of Maruti Suzuki
The strengths of a company are the unique qualities that provide it with an advantage in
acquiring more market share, attracting more customers, and maximizing profitability. Maruti
Suzuki’s strengths are as follows:

• Market Share: Maruti Suzuki has a large market share with a share value of 45
percent which is comparatively more if compared to its competitors and this is one of
the biggest strengths of Maruti Suzuki.
• Number of Sales: Maruti Suzuki registered the highest number of domestic sales in
the previous fiscal year, with 9,66,447 units. This has recently surpassed the national
sales mark of 10 million.
• Brand Value: Maruti Suzuki has high brand recognition and a large consumer base.
Also earned a good reputation for selling second-hand vehicles of good quality
through its true value chain.

42
 • Strong Advertising & Reliable Suppliers: Effective approaches of advertising, good
product range, largest dealers network to attract people. It has a strong base of reliable
suppliers of raw material thus enabling the company to overcome any supply chain
bottlenecks.
• Product Quality: Maruti Suzuki engine capacity is supreme which provides more
mileage as compared to its competitors, their cars require less maintenance and
service cost is the lowest in the market. These advantages give Maruti Suzuki a
complete edge over its competitors in terms of capturing the market of the lower and
middle class which percentage is more as compared to the rich class.

Weaknesses of Maruti Suzuki

Weaknesses are elements of a company or brand that can be strengthened. The following are

Maruti Suzuki’s flaws:

• Weak Interior Quality: Maruti Suzuki’s interior quality is weak in comparison with
the high-quality interior of Hyundai, Maruti Suzuki, Volkswagen etc. Also, the build
quality of Maruti Suzuki cars is a little bit low compared to these competitors.
• Government Intervention: Government intervenes because of having a share in
Maruti Suzuki as it’s owned by the government and a public company. Strategic
decisions are dependent upon government approvals.
• Penetration Inability: Maruti Suzuki’s one of biggest inabilities is not being able to
penetrate the world market. The company is only popular in India and some of the
Asian regions other than this Maruti Suzuki’s presence in Europe and the North
American market is not that fascinating.

• Weak Managerial & labour Relationship: The relationship between management

and labour unions is not good. Employee strikes, worker’s wages strikes have
declined the reputation of Maruti Suzuki in terms of being the best working place.
• Diversification in the Workforce: The workforce at Maruti Suzuki Motors is
analyzed with mostly local workers, and low amounts of workers from other ethnical
backgrounds. Lack of diversification makes it difficult for employees from different
ethnical backgrounds to adapt at the workplace, leading to loss of talent.

Opportunities for Maruti Suzuki

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Potential areas of attention for a corporation to enhance results, expand sales, and, ultimately,
profit are known as opportunities. Maruti Suzuki’s opportunities are
• LPG Version of Cost-Effective Hatchbacks: Maruti Suzuki is popular among the
taxi sector and most of the taxis are connected with LPG. A recently positive move by
Maruti Suzuki is that it introduced its LPG version of Wagon R which is a smart move
taken by the company.
• Collaborations: Maruti Suzuki can jointly work with big car manufacturers to bring
innovations in the market by improving relations. Just like recently, Maruti Suzuki is
working with Toyota on a project to launch small electric SUVs in the market.
• Technological Developments: Technology succeeds with numerous advantages
among many departments. Operations can be automated to diminish costs.
Technology enables better data to be obtained from customers and improves trading
accomplishments.
• Immense Production Potential: Maruti Suzuki has immense potential in foreign
markets and it is a rapidly growing market for automobiles. It can tap into European
and other untouched markets where growth potential is even more.
• Transport Industry: The transportation industry has been thriving in recent years
and has significant growth potential in the future. This has reduced transportation
costs, which benefits Maruti Suzuki by lowering its overall costs.

Threats to Maruti Suzuki

Environmental variables that can damage a company’s growth are known as threats. Maruti

Suzuki’s threats include the following:

• Fall in Market Share: Maruti Suzuki has experienced a great fall in its market share
because of the higher increment in market share of other brands, such as Figo, Ford,
and Volkswagen. Also, Maruti Suzuki registered a sales drop in January 2022.

44
 • Intense Competition: China intends to join the Indian car market which can create
immense competition. Also, Maruti Suzuki has other competitors from global
automotive brands.
• Controversies: Maruti Suzuki is facing certain controversies such as its cars are
failing accident tests and safety benchmarks which is one of the most important
aspects customers look into before purchasing any car.
• Costs and Expenses: Higher fuel costs including demonetization expenses and
economic recession has caused decreasing purchases by customers.

This ends our extensive SWOT analysis of Maruti Suzuki. Let us conclude our learning
below.
To Conclude
Maruti Suzuki is a well-known automaker with a significant global presence. In the SWOT
Analysis of Maruti Suzuki, we observed that the company is heavily reliant and enjoys strong
brand recognition and trust with its customers. It has a strong logistical basis and has reached
across all the markets it serves, but suffers from an increasing number of manufacturers in the
same space and better R&D efforts by its competitors.

LIMITATIONS

THE FOLLOWING ARE THE LIMITATION OF THE STUDY OF MARKETING

STRATEGIES OF MARUTI UDYOG (MARUTI SUZUKI INDIAN LIMITED):

45
 1. The data and information collected and analysed for the study is secondary data which
only allows us to draw conclusions based on the study and findings of theoretical data.
2. Time is an important limitation. Due to time constraints, only a limited population is
taken for the study.
3. Documents may lack authenticity– parts of the document might be missing because of
age, and we might not even be to verify who actually wrote the document, meaning
we cannot check whether its biased or not.

CONCLUSION AND RECOMMENDATIONS

CONCLUSION

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Automobile market today is very dynamic & competitive with a range of players and
products. There are many reasons for the impressive growth of the Indian passenger car
Industry. Some of these are easy availability of vehicle finance, attractive rate of interest

and convenient installments. In today‘s cutthroat competition it is very difficult to

survive. Stiff competition has forced manufacturers to be innovative and responsive to
customer demands and needs. Maruti Suzuki India Limited is a leading company in
Indian Automobile sector which occupies prominent place due to its innovative strategic
marketing, promotional, Brand positioning, advertising strategies. In today‘s scenario the
success of company lies in structuring and restructuring the marketing strategies and
continuous innovation of product and services.

Maruti Suzuki India Limited was established in February 1981 and started the production
in 1983. It has three manufacturing plants with presently total production capacity is 17,
50,000 Vehicles per year. It has 53% market share and establish market leadership in
Indian market. The present marketing strategy is good enough to sustain the competition.
MSIL follows the political, economical, societal and technological norms and helps us to
increase our national economy.

RECOMMENDATIONS

The study shows that MSIL has the largest market share in the field of four wheelers in
India. Marketing strategy used by MSIL is satisfactory and appropriate to sustain in the
competitive era. MSIL’s marketing strategy is good enough to take the competitive
advantage. The technology used by MSIL is as per economic needs and the positive
EXIM policy of India help to enhance the export of cars. Aggressively, MSIL moves
towards present opportunities that is rise of Indian middle class and small cities with
booming economy. As far as the suggestion is concern, it is necessary for MSIL that it
maintains the present status in the Indian market. MSIL keeps close look on different
threats and do the needful to prevent it from threats and immediately eliminate the
weaknesses and should establish a separate R & D department. And need to think about
question mark group products and I think, it is necessary to stop the dog group products.

BIBLIOGRAPHY

1 WEBSITES/WEBPAGES

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 1. https://www.marutisuzuki.com/
2. https://www.marketing91.com/swot-analysis-brands/

3. https://scholar.google.com/scholar?q=literature+review+of+markerting+strategy+of+
maruti+udyog&btnG.x=0&btnG.y=0&hl=en

4. https://www.academia.edu/9106893/Marketing_Strategies_of_Indian_Automobile_C
ompanies_A_Case_Study_of_Maruti_Suzuki_India_Limited?from=cover_page

5. https://www.ipl.org/essay/Marketing-Strategy-Of-Maruti-Suzuki-FKXXQR7ESCFR

6. https://iide.co/case-studies/marketing-strategy-ofmarutisuzuki/
#Content_Marketing_Strategies

7. http://vslir.iima.ac.in:8080/jspui/handle/11718/7466

8. https://www.aha.io/roadmapping/guide/marketing-roadmaps/portfoliomarketingroadmap

2 BOOKS

9. Bhargava R.C, ―Assembling a Dream‖, The Maruti Story, Collins Business

(HarperCollins Publishers), 13, 2010.

10. Dr.Garg R.K & Jain Sumit, Business Competitiveness: Strategies for Automobile
Industry, Global Competition & Competitiveness of Indian Corporate, Kozhikode,
Kerala, India, 2009, retrived from dspace.iimk.ac.in

Questionnaire On Maruti Suzuki India Ltd.

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