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Product Life-Cycle Stages


Introduction Growth Maturity Decline





INTRODUCTION STAGE - Company builds product awareness and develop market for the product Pricing consider for capture market share or to recover development cost GROWTH STAGE Company build brand preference and increase market share Promotions for the large audience. Distributions channels are added MATURITY STAGE Competition starts. Products come up with new features or face DECLINE STAGE - Sales decline. Firms either reduce cost to continue or quite from the market


Maruti Udyog Limited was established in 1981 Largest automobile company in India located at Gurgaon, Manesar and South of New Delhi. Portfolio of 13 brands and 150 variants, like Maruti 800, Omni, Alto, Wagon-R, A-star, Swift, Ritz, Grand Vitara, SX4 and Swift Dzire Listed on Bombay Stock Exchange and National Stock Exchange Honoured with METI Award from from Govt. of Japan for promotion of Japanese brand in India


MUL launched 1st 800 in the Indian market in December 1983 Collaboration Between Indian State owned Maruti and Suzuki Motor Japan Cheapest car in the Indian market Excellent entry level Also exported to countries in South Asia and South American market First car was presented to Lord Venkateshwara of Tirumala Venkateshwara Temple. First car sold to Harpal Singh at Rs. 48,000/- as a lucky owner and received keys from Prime Minister Indira Gandhi Manage to retain its low pricing in market

GROWTH STAGE ( 1987 1996 )

Maruti 800 come up with new features like AC version and music system Sales increased by 852 units to 20,269 units and reached upto 31,314 First export began in 1987 Sales soared from about 63,763 units to about 1,89,061 units in 1996


Focus on customer care has become a key element for Maruti Increased Maruti service stations every 25km on a highway To increased market share, launched new car models, concentraded on marketing and institutional sales. Become a ideal car for woman drivers as first car was easy to drive and park in the Indian sub-continent

MATURITY STAGE ( 1997 2002 )

In 1997, introduced with new jelly bean shape was not so successful Launched revamped version of Maruti 800 EX, with new engine, shock absorber, coil spring suspension, which was lost their sales value gradually Entry of competitors like General Motors, Ford, Tata Market share beaten by rivals like Hyundai Santro, Daewoo Matiz In 2002, launched Alto with bigger stylish version of the Maruti 800 Introduced LPG and CNG variabts, called Maruti 800 Duo with new facelifts like newer grille and clear lens headlamps


PRICING STRATEGY CATERING TO ALL SEGMENTTS Car priced at Rs. 1,87,000/- is the lowest offer on the road OFFERING ONE STOP SHOP TO CUSTOMERS OR CREATING DIFFERENT REVENUE STREAMS Developed different revenue stream in the form of Maruti Insurance, Maruti Finance, MDS, N2N REPOSITIONING OF MARUTI PRODUCTS Introduced new facelifts model based on market responses or consumer feedbacks or the competitors moves


CUSTOMER CENTRIC APPROACH Successfully shed off the public sector laid back attitude image and the customer friendly approach in the organization Dealers and employees are answerable to each and every customer complaint Call center brings Maruti to closer to its customer

COMMITED TO MOTORIZING INDIA Partnership with State Bank Of India organized finance to small towns enable people to buy cars in Rs. 2599/- scheme

DECLINING STAGE ( 2002 2010 )

Sales of Maruti went down drastically from 1,51,976 units in the year 2000 to about 69,553 in 2007 Buyers attracted by high end luxuries small cars Sales volume is heavily beaten by competitors like Hyundai i10, Maruti Suzuki swift, Chevrolet Spark In 2008-09 experienced sales of only 11,288 units Major competitor Tata Motors launch Tata Nano smaller car yet offer more space than the Maruti 800


Tata Nano has come up to cater middle class and lower middle class Maruti has decided not to infuse new technology or an engine into Maruti 800 from April 2010 They will pull out the Maruti 800 from the Indian Metros which will effect the emission norms Sell will countinue in semi urban and rural areas till the new emission norms reach these places


PRICE :- Maruti 800 Rs. 2L on road Tata Nano - Rs. 1.25 1.5 on road LOOK Maruti 800 has old look, Longer exeterior dimensions than Nano while Nano has 20% extra space than 800 and easy to drive in congested traffic area AVERAGE - Maruti 800 gives 15 18 km/lit Nano gives 22km/lit SAFETY - As fully tested car still fan of maruti believes in it.