Final project

Course: PGDM (GENERAL)

Section : B
Group: VI
Subject: Marketing Management
Topic: Marketing Mix of Maruti Suzuki India limited
Submitted to: Dr. Anurupa Singh
Group members Contact
1. Ashish Jain 9990355338
2. Atul Surana 9719163463
3. Harish Anand 9871184075
4. Preeti Roopanwal 7428064522
5. Ratna Agarwal 9953030974
6. Suruchi Goyal 9891237723
Introduction

In this project we have undertaken to study the most important aspect of

marketing, the marketing mix strategy, of India’s largest automobile industry,

Maruti Suzuki India limited. Maruti is considered to be a leader in the

passenger car industry in India that proves the fact that it has efficiently

complied with all the marketing strategies. The industry envisions creating

customer delight, increase Share holder’s wealth, invoking customer

obsession, becoming fast, flexible, & fast mover, adopting innovation and

creativity, support networking and partnership and applying openness and

learning. In this project we have incorporated an overview of the product mix,

pricing strategy, promotional activities and distribution networks followed by

Maruti which has helped them in attaining their core values and mission thus

becoming the Pride of India.

Company profile

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In 1970, a private
limited company
named 'Maruti technical services private limited' (MTSPL) launched on November 16, 1970. The stated
purpose of this company was to provide technical know-how for the design, manufacture and assembly
of "a wholly indigenous motor car". A year later, a company called Maruti limited was incorporated and
Sanjay Gandhi was appointed Managing Director. In 1977, that company was liquidated. At the behest of
Indira Gandhi, the Indian Government salvaged Maruti Limited and started looking for an active
collaborator. Maruti Udyog Ltd. was formed in 1981. A year later, a License and Joint Venture
Agreement (JVA) signed between Maruti Udyog Ltd. and SMC of Japan Suzuki Motor Corporation kept
on increasing their stake until on September 17, 2007 it was renamed to Maruti Suzuki India Ltd...

Today, Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-wheeler
automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the
company. It was the first company in India to mass-produce and sell more than a million cars. It is largely
credited for having brought in an automobile revolution to India. It is the market leader in India. .

The company annually exports more than 50,000 cars and has an extremely large domestic market in
India selling over 730,000 cars annually. More than half the cars sold in India are Maruti Suzuki cars. It
offers more than 13 brands and over 150 variants of cars.

The success story of Maruti started with the launch of the Maruti 800 in 1984 . Over 2.5 million 800's
have been sold since .It remained India's bestselling car until 2004 , when Alto took over it .
The fact that each successful brand is backed by successful advertising: Maruti has always portrayed as a
very successful promotional strategy planner throughout its long run.

The Maruti Driving School is an example of one such campaign. They have managed to be cost effective
all these years due to their in-house development. Maruti's stay has been marked by constant innovation.
They tied up with SBI and introduced the Auto finance scheme. They also offer insurance services to
their customers at low premium schemes. Maruti mainly targeted the middle – class segment in the early
stages through the 800's .They launched the first ever Sedan in India – Maruti 1000 and targeted the
upper-middle class segment. Constant research and development has played an important role in making
Maruti the giants they are today. In 2010, the company came up with a unique scheme that allows
motorcycle owners to trade their vehicles and avail discounts on Maruti Alto's. It's precisely things like
these which have ensured the fact that Maruti is a success story today.
Currently headed by Mr. Shinzo Nakanishi, Maruti has always had luck with leaders. From Jagadish
Khattar to RC Bhargava, these men took Maruti to the heights it has attained today. The future looks only
brighter.

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The above chart shows the market segmentation of the automobile industry in India of
2008-2009.We can see that Maruti has the largest market share of 47.3% making it the
leader in the passenger car segment
Maruti is a picture of diversity: let it be its products, services, promotional strategies. And the best part
lies in the management of it all in the most effective manner to constitute a marketing strategy which is
sure to benefit them with constant refreshment depending upon the environment. In economic
terms,Maruti has witnessed tremendous growth in every sphere as depicted by the charts below:

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In marketing context, we have discussed herewith the 4 P’s of marketing mix in relation to Maruti
udhyog limited.

Product Mix
Maruti provides Full range of cars- from entry level Maruti 800 & Alto to stylish hatchback A- star,
Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.Along with its
core products, the industry has also taken a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo
systems, seat covers and other car care products. The industry has been incorporating various services
like driving schools, Maruti true value, fleet management facility etc. to ensure a competitive advantage
and sustainability.
The various models of cars available in Maruti are given below:

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 Price Product Pric Engine Gear Power Torque Segme
Power Torque
Product (in Engine Gear Segment e (bhp) (Nm) nt
(bhp) (Nm)
lakhs) in
lakh
Maruti-
Maruti- 3cyl 4cyl
2.1 4M 37 59 C Esteem- 4.3 5M 85 110 B
800-AC 796cc 1298cc
LX
Maruti-
Maruti- 3cyl 4cyl
1.9 4M 37 59 C Esteem- 4.6 5M 85 110 B
800-Std 796cc 1298cc
LXi
Maruti-
Maruti- 3cyl 4cyl
2.7 5M 47 62 C Esteem- 4.5 5M 85 110 B
Alto-LX 796cc 1298cc
VXi
Maruti-
Maruti- 3cyl V6
2.9 5M 47 62 C Grand- 23 5M 166 236 SUV
Alto-LXi 796cc 2736cc
Vitara
Maruti- 3cyl Maruti- 4cyl
2.3 5M 47 62 C 5.2 5M 81 104 Jeep
Alto-Std 796cc Gypsy 1298cc
Maruti- 4cyl - Maruti- 3cyl
3.6 5M 67 90 C 2.5 4M 35 60 Van
Astar 998 CC Omni 796cc
Maruti- 4 Cyl
4cyl Maruti-
Baleno- 5.8 5M 94 131 B 4.6 1197 CC 5M 85 113 C
1590cc Ritz
LXi K12M
Maruti- 4 cyl
4cyl Maruti-
Baleno- 6.6 5M 94 131 B 5.1 1248 CC 5M 75 190 C
1590cc Ritz-D
VXi DDiS
Maruti- 4 cyl
Maruti- 4cyl
Dzire- 5.6 1248 5M 75 190 B 4 5M 87.5 113 B
Swift-LXi 1298cc
Diesel Mjet-CR
Maruti- 4 cyl Maruti- 4cyl
4.6 5M 87 113 B 4.3 5M 87.5 113 B
Dzirel 1298 CC Swift-VXi 1298cc
Maruti- 4cyl Maruti- 4cyl
3 5M 73 101 C 5.1 5M 87.5 113 B
Eeco 1196cc Swift-ZXi 1298cc
Maruti-
4cyl Maruti- 4cyl
Versa- 4.3 5M 82 102 Van 7 5M 102 154 B
1298cc SX4 1586cc
Std
Maruti-
4cyl Maruti- 4cyl
WagonR- 4.6 5M 64 84 Van 4.3 5M 82 102 Van
1061cc Versa-DX 1298cc
AX
Maruti- Maruti-
4cyl 4cyl
WagonR- 3.3 5M 64 84 Van Versa- 4.7 5M 82 102 Van
1061cc 1298cc
LX DX2
Maruti- Maruti-
4cyl 4cyl
WagonR- 3.5 5M 64 84 Van WagonR- 3.7 5M 64 84 Van
1061cc 1061cc
LXi VXi
Maruti- 4cyl Maruti- 4cyl
4 5M 60 78 C 3.76 5M 60 78 C
Zen-LXi 993cc Zen-LX 993cc

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 India is a growing market in terms of automobiles and to adhere to the need of customer and maintain
their market share it is necessary to follow strategies having an upper hand to your competitors. The main
markets competitors of Maruti are the Hyundai, Chevrolet etc.which are other dominant players in the
small car industry. Here, we have shown the comparison of the same type cars of these companies with
maruti and the competitive advantage of Maruti over them:

MARUTI SWIFT VERSUS HYUNDAI I10

FEATURES i10 SWIFT

MILEAGE 16.1 km/litre 16.8km/litre

FUEL TANK 43 litre 35litres

CAPACITY
ENGINE TYPE In line engine IRDE 1:1 4cylinder
petrol
MAX SPEED 60 km/hr 149km/hr

TORQUE 113Nm@4500rpm 99Nm@2800rpm

VOLVES PER 4 3
CYLINDER
POWER 87Ps@600rpm 67Ps@5500rpm

MARUTI RITZ VERSUS CHEVROLET BEAT

FEATURE RITZ BEAT

MILEAGE 16km/litre 18.6 km/litre

FUEL TANK CAPACITY 43litre 0litre

POWER 85 ps@600rpm 80 ps@6200rpm

TORQUE 113Nm@4700rpm 108Nm@4400rpm

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 DISPLACEMENT 1197cc 1199Cc

INTERPRETATION

 Maruti has a bigger name in the market.

 It has trust of people.
 Maruti Udyog Ltd is the market leader for more than a decade.
 It has a great leadership chain in the market.
 It has better after sales service.
 Low manufacturing cost of vehicle.
 Creation of value and benefit from the product at different markets

Maruti is an automotive industry but the changing scenario and competitive environment has forced it
to shift from the product based industry to a service provider to take up a competitive advantage and
wholly ensure customer satisfaction.
Besides, their usual operation in the car selling and manufacture Maruti also provides auxiliary
services to enhance complete satisfaction from the point of view of its customers. It provides
additional facilities of financing, servicing, accessories which are discussed below:

Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was
set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd
and Maruti Insurance Brokers Pvt. Limited.This service started as a benefit or value addition to
customers and was able to ramp up easily. By December 2005 they were able to sell more than two
million insurance policies since its inception.
Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti
Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.
Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,

Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car
finance. Again the company entered into a strategic partnership with SBI in March 2003 Since March
2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently
available in 166 cities across India.

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N2N Fleet

Management
N2N is the short form of End to End Fleet Management and provides lease and fleet management
solution to corporate. Its impressive list of clients who have signed up of this service include Gas
Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India, National
Stock Exchange and Transworld. These fleet management services include end-to-end solutions across
the vehicle's life, which includes Leasing, Maintenance, Convenience services and Remarketing.
The product provided by the industry under Maruti genuine accessories
Many of the auto component companies other than Maruti Suzuki started to offer components and
accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki.
Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer
accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and
other car care products. These products are sold through dealer outlets and authorized service stations
throughout India.

The green approach practicing strategy by Maruti.

India's largest car maker Maruti Suzuki today unveiled its flagship compressed natural gas (CNG) engine
technology, intelligent-Gas Port Injection (i-GPI) in five of its popular models.
The models include SX4, Eeco, WagonR, Estilo and Alto and are being launched in Delhi National
Capital Region (NCR), Mumbai and Gujarat.
The i-GPI bi-fuel technology ensures more power vis-a-vis retro-fitted CNG vehicles and offers a ride
experience on par with that of a petrol-fuelled engine while achieving high fuel efficiency.The i-GPI bi-
fuel technology ensures more power vis-a-vis retro-fitted CNG vehicles and offers a ride experience on

par with that of a petrol-fuelled engine while achieving high fuel efficiency

Maruti true value service.

Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti
Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service
in India. As of 2009 there are 315 Maruti True Value outlets.Maruti True Value is India No.1 organized
pre-owned car brand .True Value is venture of India’s largest automobiles manufacturer “Maruti Suzuki
India Ltd”.It provides :
* India's largest certified used car dealer network.
* 340 outlets in 197 cities and growing.
* All car related services under one roof.
* Professionally trained manpower.
* Complete peace of mind.

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FINANCIAL TIE UPS
 Mahindra & Mahindra Financial Services Ltd (MMFSL), part of the $3.04 billion Mahindra
group has signed an agreement with Maruti Udyog Ltd (MUL) to provide finance to all of the
latter’s products. Under this pact MMFSL will leverage on its strong rural presence to provide
retail finance for Maruti vehicles.
 Maruti has tied up with SBI bank which will benefit both of them.

Other marketing strategy followed when its product sales grew old or sales started dipping was:

 OMNI: interiors and exteriors ,Omni cargo, OMNI CNG

 VERSA: slashed prices by decreeing engine power

 ESTEEM: new look to boost sales.

 BALENO:price slash from 1999(7.2lakh) to 2003(5.46)

 WAGON R:modifications in engine and sporty look

 ZEN: modifies 4 times and special editions.

Thus, Maruti has a range of cars for every person in the market added by services making it a
business success.

Price Mix
The Indian Automobile Sector is a perfect competition market whereby any price movement instigated
by any of the competitors or any change in government policy causes corresponding movements by the
competition and this was the most important point which Marti considers while playing around with

product prices. It has developed strategies taking into consideration the overall macro environment in
order to ensure long term sustainability in terms of cost. Main strategies followed by the company are:
Competitive Advantage
Pricing strategy helps both its customers and Maruti. Maruti offers a different model just at a price
difference of around Rs. 10,000 for cars ranging between Rs. 3.25 lakhs to Rs. 4.50 lakhs. It offers five
different cars in this range and different versions/models of each car. Due to so many options, most of the
time customers have an option within their budget or around their budget.
Diversifying in different sources of revenue stream generation
 Maruti has successfully developed different revenue streams without making huge investments
in the form of MDS, N2N, Maruti Insurance and Maruti Finance.
 Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance

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 companies
to form a
consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI Bank,
HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank Ltd
 Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance
companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti
Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab
and IndusInd Bank Ltd
Playing on cost leadership
 Maruti is the price dictator in Indian automobile industry. It’s the low cost provider of car. The
lowest car on road is from Maruti stable i.e. Maruti 800. Maruti achieves this through continuous
improvements in operational efficiency and productivity.
 The company has set itself (and its vendors) the target of a 50% improvement in productivity and
a 30% reduction in costs in three years. The ability to keep lowering the prices sets Maruti apart
from other players in the league. Maruti spread the overheads over a larger base.
 Maruti also made strides in applying IT to manufacturing. A new Vehicle Tracking System
improved efficiency on the shop floor and enhanced quality control. The e Nagare system,
adopted from Suzuki Motor Corporation, smoothened Maruti’s Just In Time operations.
PRICING STRATEGY - CATERING TO ALL SEGMENTS
Maruti caters to all segments and has a product offering at all price points. It has a car priced at
Rs.1,87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who
earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking
for up gradation in his car. Their sole motive of having so many product offering is to be in the
consideration set of every passenger car customer in India. Here is how every price point is covered.

Despite the rigorous market situation ,Maruti remains a trustworthy name among the users.Here,we
would list down success story of Maruti :

The Quality Advantage

Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in
India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and
the Esteem in the entry level mid - size car segment across 9 parameters.
A Buying Experience Like No Other
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce
of over 6000 trained sales personnel to guide MUL customers in finding the right car.
Quality Service Across 1036 Cities
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least
problems experienced with vehicle serviced, highest service quality, best in-service experience, best
service delivery, best service advisor experience, most user-friendly service and best service initiation

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 experience.
92% of Maruti
Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study
2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of
vehicle, while 90% owners would probably repurchase the same make of vehicle.

One Stop Shop

At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy
finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-
window solution for all car related needs.
The Low Cost Maintenance Advantage
The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car
may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used
spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy
segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.
Lowest Cost of Ownership
The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki
vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

Technological Advantage
It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new
technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create
optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power
and performance from his car.
Maruti has been able to gain a technical, qualitative and strategical advantage while devising their pricing
mix leading to a cost effective ride for the users and growing market share for the company.

Place
Place is another key marketing mix tool, it includes various activities the company undertakes to make
the product accessible and available to the target customer.Maruti makes its entire car accessible through
the direct and indirect channel of distribution i.e. dealers to have a wider geographical coverage. The

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most innovative
approach
followed by Maruti is its True Value Service complemented by a huge network of authorized dealers
positioned in every part of the country.
Maruti True Value Service
Maruti True Value is India No.1 organized pre-owned car brand .True Value is venture of India’s largest
automobiles manufacturer “Maruti Suzuki India Ltd”. Maruti True Value business expands the family of
Maruti customers, providing reassurance to existing Maruti customers about resale of their cars and
further emphasizes Maruti s commitment towards enhancing customer satisfaction by continuous
association during the vehicle ownership life cycle.

No one knows your Maruti car better than Maruti - based on this premise, Maruti chanalises its expertise
to ensure that transactions in pre owned cars are transparent and fair. Through that, the company
endeavors to extend the relationship and emotional connect that it enjoys with the customer.

True Value has transparent and fair evaluation process, which is currently missing in the largely
unorganized market for pre-owned cars. Maruti True Value processes and systems ensure that the seller
gets the right price and is paid promptly.

Under True Value, the seller has the option to be paid in cash, or get a True Value car in exchange or a
brand new Marti Suzuki car in exchange. True Value category cars bought by Maruti True Value dealers
are taken to state-of-the-art workshops.

True Value Category cars are refurbished in state of art workshops using Maruti Genuine Parts and by
skilled technicians. These cars are then sold through Maruti True Value outlets.

As a mark of confidence, and to provide reassurance to customers, every vehicle bought under Maruti
True Value is inspected and certified by Maruti Engineers and the Car carries a one-year warranty and
three free services. Convenient finance options are also offered to buyers of Maruti True Value cars.

Maruti has a wide accessibility by setting up of dealers and service stations and thus has gained wide
acceptability and large number of customers. It also makes sure that there is no delay in processing the
orders and invoicing of the products and the speed of delivery is a major way of gaining competitive
advantage, which MUL has capitalized on.
At Maruti TrueValue they believe that all customers need should be met under one roof. Thus, when they
visit any of the exclusive Maruti TrueValue outlets it is discovered that not only do they get the best
value while buying, selling or exchanging but also all other car related needs. Be it insurance, finance,
service, accessories or anything else related to cars.

MARUTI SUZUKI INDIA”-WINNING THROUGH DESIGNING AND

DELIVERING

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The relationship
between designing
and customer value is one of planning and executing. A customer value proposition consists of the sum
total of benefits which a vendor promises that a customer will receive in return for the customer's
associated payment. Winning through Excellent Customer Service is the only sure formula for winning
more and more customers than competition. Good customer services help the companies in attracting and
Keeping many loyal and committed customers for life.

Today, Maruti Suzuki is the largest automobile manufacturer in South Asia. It is largely credited
for having brought in an automobile revolution to India. Maruti Suzuki has been the leader of the Indian
car market for over two decades. Cars More than half the cars sold in India are Maruti Suzuki cars.

Maruti Suzuki is one of the companies in India which has unparalleled sales and service network. Maruti
Suzuki has a firm belief that the success of car industry is completely based on fulfilling the demands of
excellence in diverse areas including good products, robust sales, support network, and acumen for
logistics and inventory. Increasingly, the company has laid its successful business on a prosperous design
and development capability. Customer delight has always been the first priority for Maruti. In regards to
this priority, the company always keeps the door of past and future open for its customers so that they
can cherish the past and rejoice the upcoming.

Since its inception in the country, Maruti Suzuki India has nurture its supplier base, dealer network and
even the customer base to reach the height it is rejoicing today. The company has always maintained a
disciplined team of skilled and talented professionals. Apart from this, the company has always been
successful in meeting the changing demands of the changing generation. It has just turned out to be
perfect in all operations and endeavors.

Customer delight has always been the first priority for Maruti. In regards to this priority, the
company always keeps the door of past and future open for its customers so that they can cherish the past
and rejoice the upcoming. Over the last few years, Maruti Suzuki strengthened the existing practices and
experimented with many new initiatives by way of kaizens (continuous improvements) to delight its
customers.

RURAL MARKETING STRATEGY:

Rural Market covers around 3/4th population of the country. So, every sector has a lot of scope including
the automobile industry. Automobile penetration in the rural Indian market is negligible. Overall vehicle
penetration figures in India are also not all that encouraging either with only 19 in every 1,000 people
having a personal mode of transport. Seeing a huge potential in villages and smaller towns where
incomes are increasing thanks to good monsoons and high minimum support price for government
procurement, Maruti increased its focus on the rural markets in the last couple of years. So, in order to

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skim the benefit of
the potential
customer existing in these areas various positioning strategies is being followed by the company:

 Apart from recruiting people for the R&D operations,Maruti is also looking to hire people for
sales & marketing with an aim to penetrate rural areas in an effective way. The company plans to
add another 600 people to its present tally of 7,200 employees of which over half will be engaged
in sales and marketing.

 To attract rural customers, Maruti Suzuki India is tying up with public sector banks that have both
a branch network in these areas and the resource base to make loans. “Due to the economic
slowdown, private sector banks are going slow on vehicle finance, hence Maruti is moving closer
towards public sector banks for providing easy credit to customers the officials are in talks with
Bank of India and Punjab National Bank among others for this purpose.

 Reiterating that Maruti 800 would not be competing with Tata Nano, which is in the ultra low
cost segment, Siddiqui said that Maruti 800 was still a very popular car in the rural areas. It still
continues to be among the most popular brands in India and there are no plans to compete in the
ultra low cost segment.

The contribution of rural sales has more than doubled during the present calendar year. According to SY
Siddiqui, managing executive officer of Maruti Suzuki India the end of 2009 calendar year as much as 8
per cent of sales will come from rural areas, up from 3.8 per cent last year. Apart from the major car
demands from the ever growing city population, rural India is the key area to increase the business in
India and Maruti has rightly targeting on this idea. The company has witnessed a significant 17% sales
contribution from the rural market and it will continue to strengthen its presence over there.

Dealers and authorized centers:

The company has a sales network of 802 centers in 555 towns and cities, and provides service support to
customers at 2,740 workshops in over 1,335 towns and cities (as on March 31, 2010). The company is
focused on rapidly expanding the sales and service further across the country.
The company's Chief General Manager Mr. Shashank Srivastava informed that Maruti's intention is to
take these number upto 1,000 service centres in this fiscal year. Maruti, India's No.1 Car maker is all set
to widen its business. The auto maker is celebrating its peak sales constituting more than 1lakh cars in
May alone and at the same time getting ready to increase the dealerships to ease the distribution of its
value for money products.

Exports:
Maruti export ltd is the subsidiary of Maruti Suzuki with its major focus on exports and it does not
operate in the domestic Indian market. The first commercial consignment 480 cars were sent to
Hungary .by sending the consignment 570 cars to the same country Maruti Suzuki crossed the
benchmark of 3lakh car. Since its inception was one of the aspects government was keen to encourage it.
The main international market of Maruti Suzuki includes Angola
,Benin,Dijbouti,EthiopiA,Europe,Uganda,Chile Sri Lanka ,Morocco, Chile ,Costa Rica, EI Salvador.

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The company
exports to Europe
via the newly developed car handling export terminal at Mundra port. It is part of enhancing its port
infrastructure to meet the increasing export demand. This new port facility at Mundra, is developed at an
investment of Rs 100 crore to cater to the larger export volumes.

Promotion
One of the greatest strength of capturing customers is through promotion which deals with the aspect of
creating awareness of the product for the customer and Maruti over the time has used this tool in the
most efficient manner .The various promotional policy undertaken by the industry has helped it
overcome the decreasing market share and ensure loyalty of customers.

Advertisements of Maruti have always revolved around their core strengths of good service network and
mileage. Each of their ad has a fair bit of exaggeration and end with a humorous punchline. Some of the
memorable ads from the past are the young sardarji kid playing with a Maruti 800 looking toy that ends
with a "Petrol khatam hi nahi hota hai" and the ad with Maruti drivers in Ladhak looking for a service
station. Each of them led the viewer to expect a funny intuitive answer and leave you with a counter-
intuitive one. So far none of the answers seem to come through as clichés. To get it right time and again
is really an impressive feat. This year’s Maruti ad too starts with what seems like impossibility and ends
with a punchline that reveals customer insight. There are two versions of this ad and both of them start
with an elaborate presentation out of common-man's reach vehicles- a rocket and a yacht. The
advertisement which is supposedly in response to the recent fuel price hike. The ad is not about any
particular Maruti car, it's about all of them and how they provide superior mileage. The punch line of this
ad is "kina diet hay?" (Translates to "how much does it give?"

16
Every new venture ,every new scheme and every new product or service undertaken by Maruti is
communicated through their advertisement in the most creative way.Maruti also provides road safety
instruction along with a toll free contact number both for its service and road accidents.
MARKETING STRATEGY OF MUL IN LATE 1980’s
In the initial years, the MUL depended more on its M800 model, so when in late 1990’s the new players
like MATIZ, SANTRO, and INDICA came into the market with more space and better comfort, at the
same price, then Maruti lost a major share of market: To gain back its lost share Maruti launched Zen
alto and wagon R, these small segment cars gained huge response for the consumer followed by various
promotional strategies has been thereafter to retain their position in the market.

 Maruti was the first company in India which studied the consumer demand and responded to it
well.
 Market segmentation policy was adopted that targeted different type of consumers with different
type of models.
 Maruti800 targeted medium income group, while the deluxe model targeted rich income group.
 Maruti van targeted businessmen and doctors(ambulance)
 The Gypsy targeted the paramilitary forces and the police.
 This resulted in complete control of Maruti over the market.
 The company advertised its different products according to costumers.
 A special cell was made to make direct dealing of Gypsy with the government & the army.

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Maruti’s active involvement in CSR activities ensured that their consumer base increased with time.
Maruti Suzuki has adopted a CSR policy, which serves as a guiding tool for the management and the
employees in steering Maruti Suzuki towards long term sustained growth in harmony along with the
interests of the stakeholder.
The role of the CSR department is to professionalize CSR activities in Maruti Suzuki and strengthen the
mechanisms involving the activities. Significant efforts have been taken to contribute to society at large,
through its corporate activities, especially in the areas of Road Safety and Vocational Training. Maruti
Suzuki has set up dedicated teams with requisite expertise to steer the social projects.

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Conclusion:
Maruti Suzuki India limited has effectively and efficiently used the various marketing mix tools to
survive the growing competition in the automobile industry for more than three decades thus making it a
leader in its sector. Its success has been highly credited and acknowledged by many accolades and
awards in various categories of pioneering.Thus, the industry has portrayed an example of fine balance
between its product offered and meeting customer need obtained by the mixture of proper decision
making process and adaptability to the changing environment.

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Bibliography

1. “Maruti Suzuki India limited”, wikipedia,

http://en.wikipedia.org/wiki/Maruti_Suzuki
2. ”Maruti India strategic evaluation”, Ankit Jhamtani,
http://www.slideshare.net/ankit7/maruti-india-limited-strategic-evaluation-
ankit-jhamtani
3. Official website of Maruti Suzuki India limited,
http://www.marutisuzuki.com
4. http://www.google.com
5.”Maruti Suzuki India limited”,
http://www.scribd.com/doc/12864193/Maruti-Suzuki
http://www.scribd.com/doc/17254306/Marutis-Strategic-Evaluation
6.Maps and charts
http://www.mapsofindia.com/mul/

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