INSTITUTE OF MANAGEMENT TECHNOLOGY

HYDERABAD
Frontispiece

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 A REPORT ON

ANALYSIS OF MARKETING MIX- MARUTI SUZUKI SWIFT

AT

INSTITUTE OF MANAGEMENT TECHNOLOGY

A REPORT SUBMITTED FOR

MARKETING MANAGEMENT

Course Instructor: Prof. Sivagnana Sundaram

Submitted by: Fantastic Five

Rakesh SK (15A3HP611)

Abhishek Telukunta (15A1HP020)

Rohit Koppineni (15A1HP073)

Anjani Krishna (15A1HP012)

Nikhil Narla (15A1HP019)

Hyderabad

31-December-2015

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 COPYRIGHT NOTICE

Copyright © 2015 by Group # Fantastic Five

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in
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Coordinator,” at the address below.

Institute of Management Technology

Hyderabad

Survey No. 38, Cherlaguda Village, Shamshabad Mandal,

RR District

Hyderabad- 501218

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 Acknowledgement

We, Group Fantastic Five would like to express our deepest appreciation to all those who have
provided us the possibility to complete this report. A special gratitude we give to our Marketing
Management instructor, Prof. Sivagnana Sundaram, whose contribution in stimulating
suggestions and encouragement, helped us coordinate ourselves better, especially in writing this
report.

Furthermore, we would also like to acknowledge with much appreciation the crucial role of our
seniors in clearing our doubts regarding the report writing project,

We have to appreciate the critic given by our batch-mates, thanks to their comment and advices
that helped us refine our report further and better.

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 Table of Contents
Acknowledgement ....................................................................................................................................... 5
An Overview of Maruti Suzuki Swift ........................................................................................................ 7
1. Target market and their positioning strategy for their product “Maruti Suzuki Swift”. ........................... 8
2. The product strategy adopted by Maruti Suzuki for ‘Swift’. ............................................................... 10
3. Evaluation of the pricing strategy adopted by the Maruti Suzuki Swift. ............................................ 13
4. Evaluation of the promotion-mix followed by Maruti Suzuki for ‘Swift’. .......................................... 14
5. Evaluation of the distribution strategy adopted by Maruti Suzuki for ‘Swift’..................................... 17
List of Awards crowned to MARUTI SUZUKI SWIFT ............................................................................ 19
List of References ....................................................................................................................................... 20

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 An Overview of Maruti Suzuki Swift

It is only a few months ago, when Maruti Swift hatchback series received a new variant in the
form of 'LXi Option'. Now, just a few days ahead of the upcoming launch of Ertiga MPV, MSIL
has rolled out an exclusive version in this hatchback series to stay in the news. It is christened as
'Swift Glory Edition' and is being offered on VXi and VDi variant platform. Among these, the
VDi trim additionally gets anti-lock braking system with electronic brake force distribution and
brake assistance as standard. However, these versions haven't got the important dual front
airbags. This glory edition gets a range of exterior and interior styling features making it very
striking to look. This latest version is in white body color with red roof, coupled with racing
stripes. Also, it gets red colored skirts all-round the body, complementing its exhilarating appeal.
As for the insides, it gets a dual tone red and black colored upholstery for seats, a cover for
steering wheel along with gear knob and new set of floor mats. The manufacturer has also added
Bluetooth enabled audio system with steering mounted audio controls. Besides these, all the
other facilities have been retained from the existing V grade versions.

This premium hatch, like other vehicle, is available with two engine options. One is the 1.2-litre
petrol motor, which is capable of giving away 20.4 Kmpl mileage. The other one is the 1.3-litre
diesel power plant that can deliver an impressive mileage of 25.2 Kmpl. This hatchback series
recently gets a minor cosmetic tweak with a redesigned bumper featuring pronounced air dam
and silver inserts on fog lamp console. Apart from this, it gets a new honeycomb radiator grille
with newly designed alloy wheels. In addition to these, this model series was also made available
with three new exterior paints including Mysterious Violet, Granite Grey and Fire Red. Its
interiors too have been changed with an improved color scheme, which is emphasized by sporty
silver accents. The seats have been tweaked with improved support for back and thighs. As far as
its comforts are concerned, the entry level trim is available with split folding rear bench seat that
is incorporated with a couple of adjustable headrests. While the mid-range trims now have a
music system and electrically adjustable outside mirrors. In terms of safety aspects, its mid-range
trim has been blessed with the proficient anti-lock braking system along with EBD as a standard
fitment. This refurbished range is placed against the likes of Toyota Etios Liva, Volkswagen
Polo, Fiat Punto Evo and Ford Figo in the Indian automobile market. It is being offered with a
standard warranty period of 24 months or 40,000 kilometers, which can be extended at an
additional cost.

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 1. Critical evaluation of Maruti Suzuki’s choice of target market and their positioning
strategy for their product “Maruti Suzuki Swift”.

TARGET MARKET:

Maruti Suzuki segments its consumers on the demographic basis with an age group of 20 to 34
years, family size of 4 to 5 and an annual income of 20000-30000, 30000-50000 and above
including professionals, officials, supervisors and youngsters. The psychographic segmentation
comprises of Middle class, working class and upper middle class.

Swift’s target market comprises of the segment of 4-6 lakh range targeting the small car A2
segment focusing on middle and working class people with an aim to satisfying both the
European and Indian markets. It mainly focuses on the younger audience.

POSITIONING:

 Swift was positioned in the minds of the consumers as the most fuel efficient car (In new
Swift Diesel and Petrol variant DDiS and K-Series engine is used that delivers
completely new levels of power, refinement, response and fuel efficiency)
 With a sporty design and maximum customer satisfaction with Diesel and petrol variants.
 Environment friendly approach (The combination of a 16 valve cylinder head and a 5
Step Multi Injection System gives efficient combustion leading to cleaner emissions) was
also promoted.
 Swift is also positioned as the low maintenance cost car (It is the only engine with a
Chain Drive Timing System, which is maintenance-free for the entire life of the engine).
"I am confident that the new Swift will create new benchmarks with its improved fuel
efficiency, stylish and sportier looks and high performance," said Maruti Suzuki
managing director and chief executive Shinzo Nakanishi.

Positioning of Various Small Car players based on POD (Point of Difference) & POP (Point of Parity)

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CRITICAL ANALYSIS OF THE CHOICE OF TARGET MARKET AND
POSITIONING:

 Middle class, upper middle class and working class comprises of 300 million people and
youth comprises of 65 %. Thus, the idea behind targeting the youth by Maruti Suzuki
Swift is factual focusing the exact probable customers.
 The car is sporty looking which helps the youth connect but at the same point is not too
large to handle therefore making it a viable option for both the males as well as females.
 The car was promoted as a sporty car for the young but at the same point of time because
of its hefty outlook it was perceived as strong and reliable.
 The age group targeted was 20 to 34 years. This primarily comprised of unmarried
individuals as well as families. Thus, the positioning was done as sporty for young and
unmarried and a family reliable car for families.
 The car was further assumed to be the car for the middle class because of the pricing.
Thus, supposed not to be too difficult to purchase.
 Moreover, it was also promoted to be fuel efficient, low cost maintenance cars which
further sufficed he ideology of the middle class.

In short, we can put the above details in the following table.

Year Positioning Strategy Forces Target Consumers

2005 Family Car, with most A car in competition with the best-selling A 35-45 years aged
fuel efficiency, with Hyundai i10 and Tata Indica. family person
tagline “You are the
fuel”
2007 A smart car for young The average age of a car owner had declined Anyone for whom
people and families with from around 35-40 three years ago, at that buying a car was a
new features. time, to 25-30, primarily because of status symbol.
changing lifestyles, cheap and easily
available finance, etc.
2012 Focused on young Changes in strategy and positioning by rival Age group of 25-30
consumers with a sports competitors like Hyundai and Toyota. years and First time
edition. buyers.
The tagline was “For the
players

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 2. The product strategy adopted by Maruti Suzuki for ‘Swift’. Detailed analysis
about the product mix, Product line length and the product map of Maruti
Suzuki Swift.

Product strategy of Maruti Suzuki Swift:

 Maruti Suzuki Swift known to position itself just above the lower priced segment of cars
like A-Star, Alto, Wagon R, Ritz.
 Maruti Suzuki Swift has involved in continuous line modernization, through featuring
new styling with minimal price. Swift has always undergone minor changes to encourage
customer attraction.
 Maruti Suzuki Swift is comparatively superior to its lower priced segments considering
its length, width, height and ground clearance and engine capacity.
Comparing Swift with A-star and Alto:
Parameter Swift A-Star Alto
Length 3850mm 3500mm 3395mm
Width 1695mm 1600mm 1490mm
Height 1530mm 1490mm 1475mm
Ground Clearance 170mm 160mm 160mm
Engine Volume(cc) 1248cc 998cc 796cc
 Maruti Suzuki Swift provides the customers with better styling and a sporty look,
connecting with the younger generation and younger families on a better note with
respect to aggressive and adrenaline rush, style statement and better comfort.
 Swift is considered to be an Augmented Product (fuel mileage with best drivability and
lower emissions) against other lower priced segment cars such as A-Star, Wagon R, Ritz
etc. which are classified as Expected Products (good fuel mileage).
 Swift is also said to be more than just a need.

Product strategy of Maruti Suzuki Swift DZire

 The main strategy of Swift DZire was to cater to families who needed more boot space
and a little more length with the similar offerings that swift provided.

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  With this strategy, Swift DZire created more value among the customers with less price
as compared to their competitors like Etios, Honda City, Ford Fiesta etc. who charged
higher prices with the same value propositions.

PRODUCT MIX:

 Maruti Suzuki Swift’s Product Mix comprises of Hatchback and Sedan models with
Swift and Swift Dzire forming a part of them respectively.
 Further ahead the cars are offered in Petrol as well as diesel models.
 There are further three models in each category along with variations in colors.

HATCHBACK SEDAN
Swift Dzire

LENGTH OF PRODUCT MIX: It refers to the total number of items in each of the mix.

Length of Maruti Suzuki:

 HATCHBACK: Swift
 SEDAN: Dzire

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DEPTH OF A PRODUCT MIX: How many variants are offered of each product in the line.

Talking only about Maruti Suzuki Swift, the depth is as follows:

PRODUCT LINE LENGTH:

 Swift has neither upstretched nor down stretched. In fact, Line filling and Line Pruning
have also not been done.
 Product modernization has been done from time-to-time only to keep up with the
customer preferences.
 New models have been launched in order to keep pace with the competitors and to ensure
benefit to the customers.

ANALYSIS OF THE PRODUCT MIX:

 The product mix of Swift not only offers all the possible stock keeping units but also has
taken into consideration the choices and preferences of the consumers.
 In a country like India, consumers have varied choices. Therefore, Swift offered
Hatchback and Sedan, diesel and petrol and different colors. This was done so that the
consumers perceive swift as a car that offers everything as per their needs.
 Swift before its launch did not want to launch it in white colour because the makers
thought that it would not complement its design. But considering in mind the association
of Indian consumers with the colour white they invented Pearl Metallic Artic White to
compliment the design and uphold the preferences in terms of colour White.

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  Thus, the Product Mix caters to all the needs and therefore upholds a positive impact in
the minds of consumers.

PRODUCT MAPPING:

 Maruti Suzuki Swift has already survived in the market for more than 10 years now. It
comes among the top three offering by the company. Market share of Maruti Suzuki
reached heights because of Swift. The company gained huge profits through the sale of
this car. But now swift is almost close to its maturity stage. Maruti Suzuki’s new car
Baleno is expected to take over the market share of swift and soon Swift will reach its
declining stage.
 This can be justified by saying that swift initially had a waiting period of 6 to 7 months
but now has come down to just 1 month.

Perceptual Map – Maruti Udyog Limited

3. Evaluation of the pricing strategy adopted by the Maruti Suzuki Swift.

THE PRICING STRATEGY

 Pricing strategy and customer value are the two sides of the same coin. Therefore,
considering customer purchasing power and needs are a prerequisite in deciding the
pricing strategy.
 In order to achieve this, Swift offers three variants in petrol as well as in diesel category
within the price bracket of 4-6 lakhs.

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  Since the top end target is the audience with a desire for best comfort, exclusive safety, a
multitude of features and styling, these attributes have been offered.
 Companies offering such features generally charge higher because of the features offered
but Maruti Suzuki believe in Cost Leadership which is so achieved by producing in mass
and cost optimization through lean production.
 The pricing strategy of swift comprises of getting maximum market share by providing
best value at best price. Swift’s launch helped Maruti Suzuki expand its market share,
pricing strategy contributing much to it.
 Apart from the above mentioned steps, the strategy also includes pricing through
promotion where the acceptance of the car by the people is given priority.
 One major aspect that needs to be considered is as to how is the product perceived by the
customers. Swift should not be perceived as overpriced or underpriced. The appropriate
pricing for the appropriate features is the ultimate goal which was so achieved since it is
supposed as a car with the best value for money in comparison with the competitors like
i20 or Polo.
 It also comprises of the different associated product offerings. E.g.: Winning a price
amount of 4 lakhs in a contest is astounding but instead of the cash price, the offering was
the car. It not only materialized and elevated the winning prize but also instilled in the
minds of the consumers that Swift is a car that is easily acquirable.
 The pricing strategy aimed at making the customers understand the value proposition the
company offered in comparison to the competitors.
 This includes the after sales services and providing service parts at least cost promoting
Swift as a Low maintenance car.
 Thus, the strategy is penetrative and competitive.
 To sum up, the main basis of deciding the pricing strategy is research for analyzing the
current market trend, raw material costing, market governing economic factors,
distribution charges, advertising costs, dealer profits and company margin profits.

4. Evaluation of the promotion-mix followed by Maruti Suzuki for ‘Swift’.

PROMOTION STRATEGY:
 Maruti Suzuki has a very distinctive and informative promotional strategy to promote and
market its product.
 It uses all types of media while launching a new product or a new variant.
 The advertisements include telecast in audio visual media and the print media like
television, radio, magazines, workshops, etc.

A) TELEVISION ADVERTISING:
 Almost 30% of the advertising budget is allocated to television advertising.
 Television advertising helps in product awareness, brand building, patent technology
awareness, etc.

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 This type of advertising is very costly but it is also the impactful means of
communication.
 Channels like Star, Sony and Zee, etc. along with other major music and sports channels
has more amount of viewers (specially the youth), hence, heavy promotions are done
here.

B) ROAD SHOWS:
 Maruti Suzuki tries to promote stage shows vigorously by displaying the car in many
college fests and exhibitions.
 The promotion helps to attract a huge amount of youngsters. Free trials are also being
provided to the students.
 By setting these promotional camps, company attracts the prospective students who are
willing to buy a car in the near future. The company provides free test rides which helps
the customers to know about the qualities of the car.

C) PRINT ADS:
 15% of the advertising expenses are allocated to magazines and 40% is used in
newspapers as it helps in competitive advantage, brand building, gives reason for making
it a good purchase, provides detailed knowledge etc.
 Advertisements in newspapers and auto magazines are heavily used to promote the car.
Many leaflets are being distributed at colleges, malls, railway stations, bus stands, etc.
 Newspapers and magazines have huge amount of geographical and demographic reach.
Both newspapers and magazines can also be retained for future references.

D) RADIO:
 Various studies have proved the fact that radio is one of the medium to educate customers
about the product as it has got the widest coverage both in rural and urban areas. Hence,
the targeted customers will be informed about the price, features and other qualities of the
car by radio broadcasting.
 Radio is a bit cost effective and it has a very wide coverage, hence, it is a great medium
of advertisement.

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E) BANNERS:
 Swift is also promoted with the help on hoarding banners and other neon signs which are
being displayed outside theatres and clubs. Hoarding helps the customer to recall the
product again and again.
 Banners and hoarding consists of low cost and is a repetitive exposure. Banners is very
flexible and the advertisements can be altered according to different occasions such as
festivals, season, etc.

F) WORKSHOPS AND SEMINARS:

 Many workshops and seminars are being held in colleges, universities and other big
corporates to educate the people about the company’s past performance and the features
of the car.

G) BOOKLETS AND PAMPHLETS:

 Booklets and pamphlets will be kept at the showroom, service centers, car accessories
shop, etc. for the customers to read about the company and the products that are being
offered that suits the needs of the customers.
 Booklets and pamphlets help to transform or modify customer’s preference. It can
dramatize messages.

H) INTERNET AND ADVERTISING INNOVATIONS:

 Nowadays, internet has become an integral part of an individual’s life; hence, it has
become very necessary to invest in the advertising innovation and internet.

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  One of the innovative strategies is using hydrogen balloons which fly over major cities
in India as a part of Product Awareness Campaign.
 Internet advertisement can be of a wide reach and can also be interactive in nature.

5. Evaluation of the distribution strategy adopted by Maruti Suzuki for ‘Swift’.

The top management of a manufacturing business creates a plan regarding the distribution strategy
that specifies how the firm wishes to transfer the products to intermediaries, retailers and finally
to end consumers.
 There are two manufacturing facilities of Maruti Suzuki in India. Both manufacturing
facilities have a combined production capacity of 14, 50,000 vehicles annually.
 Maruti Suzuki also has a very strong dealer network. It was one of the very first companies
who understood the importance of After Sale Service in high involvement products like
cars. Maruti Suzuki distribution and Service Network comprises of over 400 sale
showrooms, over 600 dealer workshops, and 1900 Authorized Service Stations extended
across 1190 cities unparalleled in the country.it also has 30 Express Service Stations on 30
National Highways across 1314 cities in India.
 Maruti also trains the local staff as most of the service stations are managed on franchise
basis. They also wanted to expand their reach to rural India but they knew setting up a
complete dealership was very difficult so they opened extension counters which are
operated by some dealers in the nearby cities which ensured increased customer touch
points without risking the viability of the dealers.

MARUTI TO EXPAND ITS DISTRBUTION NETWORK

As demand as picked up in the auto sector, Maruti Suzuki, India’s top car-maker is planning to
expand its distribution network and planning to and 200 more dealerships.

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Maruti has 800-plus outlets covering more than 500 cities. Shashank Srivastava, the company’s
Chief General Manager (Marketing) quoted, "Our intention is to take up the number of outlets to
1,000 this fiscal,"

Not only in urban area is the company also betting big on the rural market. Shashank Srivastava
also quoted, "Last year, we did very good sales in rural areas, where the growth was very, very
good. Nearly 17 per cent of our sales were in the rural segment against nine per cent in the previous
year.”
As the company has gained a good ground in the rural market they should continue with it. The
Company is also focusing on the corporate sector as it sees demand going up in this space.

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 List of Awards crowned to MARUTI SUZUKI SWIFT

 iCOTY, Indian Car of the Year 2012

 BBC Top Gear Magazine, Small Car of the Year, 2012
 2012 CNBC TV 18 Overdrive, Compact Car of the Year
 2012 CNBC TV 18 Overdrive, Car of the Year
 Auto Junction, The Auto Awards 2011, Hatchback Car of the Year
 UTV Bloomsberg Autocar Awards 2012, Car of the Year
 UTV Bloomsberg Autocar Awards 2012, Compact Car of the Year
 Carwale.com, Hatchback 2011
 Business Standard Motoring, Car of the Year 2012
 Auto Bild India & CarWale Awards, Hatchback 2011 - Consumer Choice Award
 Swift topped in upper A2 Premium segment in the Total Customer Satisfaction Survey by TNS
Automobile, 2010
 JD Power Asia Pacific 2009 Vehicle Dependability Study
 1st rank in JD power Asia Pacific 2007 -2008 Appeal study
 1st rank in TNS Four Wheeler Total Customer Satisfaction Study, 2007
 1st rank in JD Power Asia Pacific 2007 IQS study
 iCOTY Indian Car of the Year, 2006
 Car of The Year - CNBC TV-18 Autocar, 2006
 Best Value for Money Car 2006 - CNBC TV-18
 Autocar Viewer`s Choice 2006 - CNBC TV-18
 Autocar Best Design and Styling 2006 - CNBC TV-18
 NDTV Profit Car India Automobile of the Year - NDTV Profit Car and Bike Awards
 NDTV Profit India Small Car of the Year, 2006
 Design of the Year 2006 - Top Gear, BBC
 Overdrive Car of the Year - Automobile Magazine, Overdrive
 Most Preferred Car for Enthusiasts - carwale.com

This proves their promotion strategies and distribution channel’s strength. So, the recommendations as
such for present period is to continue the same strategies and sustain the top position in the market.

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List of References

Fatma G., Kumari E. (2013, May). Marketing Strategies of Maruti Suzuki Limited. Retrieved
from http://www.ijaiem.org/Volume2Issue5/IJAIEM-2013-05-17-036.pdf

Raturi P. (2005, July 26). What Is Maruti’s Plan for the Swift. Retrieved from
http://www.rediff.com/money/2005/jul/26maruti.html

Maruti Suzuki Website- http://www.marutisuzuki.com/swift.aspx

Wikipedia- Suzuki Swift, https://en.wikipedia.org/wiki/Suzuki_Swift

Auto Car India (2005, May). Maruti Swift- 10 years and going strong:
http://www.autocarindia.com/auto-features/maruti-swift---10-years-and-going-strong-
395290.aspx

Maruti Suzuki Swift Accolades: http://www.marutisuzuki.com/accolades.aspx

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