OVERVIEW ABOUT THE AUTOMOBILE SECTOR IN INDIA

The automotive Industry in India is now working in terms of the dynamics of an open market. Many joint ventures have been set up in India with foreign collaboration. India ranks just behind China with the worlds second largest population at over 1 billion people. Less than 1 percent of the population currently owns automobiles, which is a much smaller proportion than the rest of the Southeast Asia region. India also has one of the fastest growing economies, and many U.S. companies view India as a potentially lucrative market. It is expected that the automotive industry will play an important role in helping the economy to continue this growth. 1970s. Between 1970 and 1984 cars were considered a luxury product; manufacturing was licensed, expansion was restricted; there were Quantitative Restriction (QR) on imports and tariff structure designed to restrict the market but starting in 2000, several landmark policy changes like QR and 100% FDI through automotive route were introduced. In 2003, Core group on Automotive R&D (C.A.R) was set up to identify priority areas for automotive R&D in India. Indian Auto Industry is 2nd in Two Wheelers, 3rd in Small Cars and 5th in Commercial Vehicles among the top 10 in World. India is a global hub of automobile industry having: 15 Manufacturers of passenger cars and multi-utility vehicles 9 Manufacturers of commercial vehicles 16 Manufacturers of 2/3 wheelers 14 Manufacturers tractors 5 Manufacturers of engines The evolution of the automotive component industry predictably followed the evolution of the auto industry itself. With the startup of local production of cars, trucks, and two-wheelers in the 1950s, many of the associated component manufacturers (mainly from Europe) started operations in India.

Over a period of time, many of the major manufacturers had established plants for manufacture or assembly of parts. These included companies like Bosch (fuel injection systems and spark plugs) and Mahle (pistons) from Germany; Lucas (auto electricals), Girling (brakes), and Lockheed (clutches) from the United Kingdom; and Champion (spark plugs), Armstrong (shock absorbers), and Union Carbide-Exide (batteries) from the United States. From the Indian perspective, these units were primarily intended to aid import substitution. In the process, there was gradual transfer of technology from the parent company. The domestic two-wheeler industry has grown steadily at a CAGR of 8.5 per cent from 4.2 million in 2001 to 7.43 million in 2009. The motorcycle segment continues to dominate the market. Entry-level bikes (engine power below 125cc and price in the range of US$ 850 1,000) account for around 80 per cent of sales. The cost of ownership and economics of operations are key purchase criteria. The premium-bike segment (engine power above 150cc and price in the range of US$ 1,2002,000) is growing at a faster pace than entry-level vehicles; this is an indication of the increasing affluence of customers. Recent trends indicate that 100cc bikes are being preferred over 125cc bikes by the market.

Automobile manufacturers are increasing the thrust on fuel efficiency than before; the initiatives are mainly through improvements in technology and introduction of new fuel variants, thereby reducing toxic emissions. It may be mentioned that China, the EU, Japan and the USA have already established fuel economy rules or agreements of varying stringency. The FIAs1 declaration for green motoring has set a fuel economy target of 140 gCO2/km for passenger cars. Such a global fuel economy target could be used as an international benchmark to assess progress in the fuel efficiency of the global fleet of new motor vehicles. Some countries are also undertaking Green Rating of automobiles. Automobile Companies in India Hero Honda: Largest two-wheeler manufacturer in the world. Bajaj Auto: Second-largest two-wheeler manufacturer and largest three wheeler manufacturer in India. TVS Motor Co. Third-largest two wheeler manufacturer in India; has established a manufacturing facility in Indonesia. Honda Motorcycle & Scooter India (Pvt) Ltd. (HMSIL): Has recently entered the Indian market through its own subsidiary (in addition to its joint venture Hero Honda). Suzuki Motorcycle India Pvt. Ltd. The Company started its India operations in February 2006 through this fully-owned subsidiary. Following are the Top Automobile Companies in India: Audi Bajaj Auto BMW

 Chevrolet DaimlerChrysler (Mercedes) Fiat Ford General Motors Hindustan Motors Hero Honda Motors Hyundai Motors Mahindra & Mahindra Maruti Udyog San Motors Skoda Tata Motors Yamaha Motors Forecasts for Indian Auto Industry 1. Passenger vehicle market of India will even cross japan by selling about 5 million vehicles by 201718 2. Indias passenger vehicle production projections: In 2010: 2.6 Million Vehicles By 2015: 5.1 Million Vehicles By 2020: 9.7 Million Vehicles

Future Technological Demands Now from Today, there are some future technological demands which should be fulfill in future, those demands are listed below: Fuel Efficiency Emission Reduction Safety and Durability Cost Effectiveness Innovative Features Some of the innovative features are Key Less Entry, Electrically controlled mechanisms, enhanced driving control, Composites, Long life Components, Soft feel interiors.

Various Challenges

In Indian Automotive Market, there are some challenges by virtue of which automobile industry faces lot of problems. These challenges should be overcome and the challenges are listed below: Growth in input costs Fuel price volatility Slowdown in demand Slowdown in USA Production cuts Growing competition Changing consumer preferences Chinese competition Environmental issues Low R&D orientation India has the potential to develop into a significant market for automobile manufacturers. 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.

CURRENT SCENARIO

In terms of the Auto industry, India is the sixth largest market after China, the US, Germany, Japan and Brazil. Overall the market includes cars, two wheelers, trucks & auto parts and India is expected to become #3 in the automobile market by 2015 as defined by sales volume growth. The auto sector reported a robust growth rate of 26% in the last two years (2010-2012) although this year the growth has slowed down significantly. The BSE AUTO Index outperformed the benchmark Nifty by 79%, 12% and 19% in FY10, FY11 and FY12, respectively. The world standings for the Indian automobile sector, as per the Confederation of Indian Industry in FY 2012, were as follows: Largest three-wheeler market Second largest two-wheeler market Tenth largest passenger car market Fourth largest tractor market Fifth largest commercial vehicle market Fifth largest bus and truck segment

Since the de-licensing of the sector in 1991 and the subsequent opening up of 100% FDI through the automatic route, the industry is one of the key drivers of economic growth of the nation The automobile Industry in India is now working with the dynamics of an open market. Many joint ventures have been set up in India with foreign collaborations. For example Volvo-Eicher, Ashok Leyland Nissan Motors (for LCVs) etc In recent times product innovation and market segmentation have driven growth. Going forward, vehicles based on alternative fuels will be an area of interest for both consumers and auto makers Automobile manufacturers are increasing their focus on fuel efficiency even more today and there are key initiatives being undertaken mainly through improvements in technology and introduction of plastic components and new fuel variants, thereby reducing toxic emissions

Oil shocks affect most industries, but their effects on the Auto sector are even more magnified. On the demand side, customers start to delay their purchase decisions as oil prices and subsequently petrol / diesel prices start to rise. On the supply side, as OEMs see their cost of raw materials / transportation costs increase due to increased oil prices, they start to feel the heat if they cannot pass those costs on to their customers (which is often the case in this highly competitive industry). Goldman Sachs recent report1 on The Indian outlook predicts that oil prices will come down in FY2013 and FY2014 in real

terms, which will not only help reduce the huge fiscal and the current account deficits that India faces today but will also provide a boost to the currently struggling auto industry. This would also help reduce the rate of inflation in the country and subsequently interest rates (with somewhat of a lag), which will also make car financings cheaper and boost auto demand

Vision 2016 By 2016, India will emerge as the destination of choice in Asia for the & manufacturing of automobiles and automotive components. The output of the Indias automotive sector will be $145bn by 2016, (from $34bn in 2006) contributing to 10% of Indias Gross Domestic Product and providing employment to 25 mm people additionally. - According to Draft Automotive Mission Plan 2006-2016 by the Ministry of Heavy Industries & Public Enterprises

Indian EM RECENT MERGERS The Indian Automobile Companies have increasingly acquired businesses overseas (particularly post 2008) to broaden their revenue base, to acquire technology as well as to leverage their distribution network. Also Indian companies are increasingly collaborating with their global associates to enhance their local products and know how

However, the diversification strategy has its risks-: While expanding overseas has enabled OEMs to enhance technology / diversify revenues, it has exposed them to volatile global cycles and global commodity prices While JLR has witnessed a turnaround, Ssangyong continues to face a challenging environment although we are bullish that the M&M will be able to pull of a win here. As the overseas entities require significant capital, the leverage ratios for the local companies as Tata Motors, Motherson Sumi and Apollo Tyres have also risen post the global acquisitions and will provide opportunities for PE and public market investors to enter these blue-chip businesses to help reduce everage and grow further Tata Motors JLR UK US$2.3Bn 2008 100%

 M&M Ssangyong South Korea US$463Mn 2010 70% Bajaj Auto KTM Austria Eur190Mn 2007-2012 47% Motherson Sumi Peguform Europe Eur300Mn 2011 80% Motherson Sumi Visiocorp Europe Eur$35Mn 2009 100% Apollo Tyres Verdestein Europe US$300Mn 2009 100% Hero Motor Corp Erik Buell US Technology Tie-up 2012 NA

RECENT ANNOUNCEMENTS OF AUTOMOBILE COMPANIES: Maruti Suzuki Stated to invest $600million in 2012-13 on capacity expansion, and new model launches alto 800. Hyundai Mulling re-start of $80million diesel engine plant (has been put on hold) GM Mulling production of SAIC (JV from China) products in India Ford Recently increased diesel engine capacity from 0.25mn units p.a. at a capex outflow of $70million Plan to set up diesel engine with 0.2mn units capacity Toyota Increasing capacity by 0.1mn units with atotal outlay of $180million VW Planned investment of $400million (has been put on hold for the time being) Mercedes Planning to invest around $70million at its Chakan plant to expand capacities Honda Invested around $400million already, and planning $200million investment for next year Yamaha Planning $300million worth investment in a 2W plant in Chennai Suzuki Planning $400million investment to setup a new plant. Has invested $100million already Ashok Leyland Plan to invest around $810million, along with its JV partner Nissan. $180million slated for this fiscal Daimler Planning to invest $1000million to setup facilities for BharatBenz trucks Volvo Eicher Slated to invest $200million over the next two year

MARUTI SUZUKI

COMPANY PROFILE

Maruti Suzuki is India and Nepalsnumber one leading automobile manufacturer and the market leader in the car segment, both in terms ofvolume of vehicles sold and revenue earned. Until recently, the

Indian government, and 54.2% by Suzuki of Japan owned 18.28% of the company. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis aresold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling in A2 segment. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model ("Maruti" is another name of the Hindu god, Hanuman). Maruti Suzuki has been the leader of the Indian car market for over two decades. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti Suzukis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities,launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motor

Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. Public and financial institutions own the rest. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.

VISION

The leader in Indian automobile industry, creating customer delight and shareholders wealth; a pride of India OUR CORE VALUES Customer obsession Fast and flexible Innovation and creativity Networking and partner ship Openness and learning

Muzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades.Suzukis technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel-efficient. Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. J D Power Asia Pacific has rated it first in customer satisfaction among all car makers in India from 1999 to 2009.

MISSION Mission is the statement of any organisations purpose , what is want to accomplish in the larger environment and its goal which are specific , realistic, and motivating. Missions are described over Visions and Visions demand certain objectives. The main Objectives / Mission of Maruti Udyog Limited are:-

1. Modernisation of Indian Automobile Industry. 2. Developing cars faster and selling for less. 3. Production of fuel- efficient vehicles to conserve scarce resources. 4. Production of large number of motor vehicles which are necessary for the Economic Growth. 5. Market penetration, Market developments, similar product development and diversification. 6. Parter relation management, value chain, value delivery networks. MARUTI NETWORK

We have a national wide footprint in over 1172 cities in India and export to over 100 countries across the globe. As the Indian economy shifts to higher gear, we believe that maximum reach is very important factor. In the last year, we have also reached to new customer segments through the NRI-Dil Se program. Another segment we targeted was the rural segment through the Panchayat.

OTHER SERVICES Maruthi genuine parts Maruthi finance Maruthi insurance Maruthi true value Maruthi auto card Maruthi Dil se

SUPPLY CHAIN

Maruti Suzuki is one of the most successful stories in supply chain management in the Indian automobile market. The company has 246 local suppliers and 20 global ones They all function in a seamless manner Third Tier Suppliers: Companies provide basic products like rubber, glass, steel, plastic and aluminium to the second tier suppliers. Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier Suppliers and OEMs. & Services which include welding, fabrication, shearing, etc. First Tier Suppliers: These companies provide major systems directly to assemblers. First tier suppliers are responsible management of second-tier suppliers.

Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs) : Researching consumers wants and needs, automakers begin designing models. Companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply chain of the automotive industry.

LAST PHASE OF SUPPLY CHAIN Dealers: V ehicles after ready are shipped to the authorised dealers of the companies. The dealers then sell the vehicles to the end customers. Parts and Accessory: These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers. Service Providers: Services to the customers include servicing of vehicles, repairing parts, or financing of vehicles. Many dealers provide these services but, customers can also choose to go to independent service providers. Maruti Suzuki is one of the most successful stories in supply chain management in the Indian automobile market. Company had adopted the Japanese system, Just In Time (JIT) to achieve higher operational efficiencies and reduce inventory carrying cost. To achieve JIT material supplies, the company has given preference to locally based suppliers. Over 76% of the company's 246 suppliers are located within 100 kms of radius. Maruti supports its vendors in all possible ways. Eg : Finding technology partners, giving financial, technical and management support Quality Circle Competition Fifty four of the top eighty component suppliers of Maruti Suzuki India compete against each other and the top three get a chance to present their cases in Suzuki's Japan facility alongside other global vendors. The idea behind the Quality Circle Competition was for the teams from different vendors to identify, discuss and resolve any one core business issue that will add value to the overall functioning of the company, thereby increasing overall efficiency.

MARUTI SUZUKI NEW SUPPLY CHAIN

 To support the growing business, Maruti needed a transparent system to interact with its partners abroad. Started using a combination of Unix Shell programming, Oracle forms, .Net, and Windows FTP technology. The project covers the entire process from when a distributor orders a vehicle to production to shipment. Provided all stakeholders complete visibility of an order's progress. Updated distributors' systems to facilitate their dispatch planning. Facilitates electronic transfer of orders and acknowledgements.

KEY FACTS OF NEW SCM The entire process is IT driven and any exception during production, planning, and factory dispatch can be traced and corrective action made with no delay. The new supply chain has helped it achieve substantial cost reduction, from production to distribution. Prime driver with the supply chain project was to increase customer base in the current economic downturn.

PRODUCTS OFFERED BY THE COMPANY Maruti Suzuki comes with a large number of products i.e cars ranging from economy cars to luxury cars to super SUVs. The economy cars includes :A) B) C) D) E) F) G) H) Maruti 800 Alto Zen Estilo Wagon R A - Star Ritz Swift Swift Dzire

The Utility Cars of Maruti Suzuki includes :A) B) C) D) Maruti Omni (Van) Maruti Eeco Maruti Gypsy Grand Vitara

The Luxury Cars of Maruti Suzuki includes :A) Maruti Esteem B) Maruti SX4 PRODUCTYEAR IN WHICH LAUNCHED VARIENT Maruti suzuki 800 Maruti suzuki omni Maruti suzuki gypsy YEAR 1983 1984 1985

Maruti suzuki alto

2000

1985

Maruti suzuki wagon r 2002 Maruti suzuki swift Maruti suzuki sx4 Maruti suzuki a star Maruti suzuki swift dzire Maruti suzuki zen estilo Maruti suzuki eeco

1985 2005 2007 2008 2008 2009 2010

PRODUCT CHARACTERISTICS

Maruti 800 Maruti 800 is the most popular entry segment car in India. With the introduction of Maruti 800 in 1980s Maruti Udyog. Limited broke the hegemony of Ambassador and Fiat in the Indian Car market.

Maruti Alto Maruti Alto is one of the hottest selling compact cars in Indian market. Alto uses Maruti 800s proven and highly fuel efficient , 3 pot motor with a four valve head and its electronic tachometer results in unmatched fuel efficiency . It is the most fuel efficient car in A2 Segment. Maruti Omni ( Van) Maruti Omni is popularly known as Maruti Van. Maruti Omni comes in three variants and they are :Omni 5- Seater , Omni 8- seater and Omni LPG. Maruti Omni is a perfect family car. It has enough space for our life style needs whether we are going on a picnic, weekend outing or for a game of golf. We can pick our entire luggage without thinking twice. Omni provides ample headroom and legroom to ensure a comfortable and enjoyable journey.

Maruti Eeco EECO was introduced in India by Maruti Suzuki during 2010. This car is essentially an updated Versa, this is an urgent refresh in lines with Maruti Suzuki not being able to come up with a new minivan. EECO comes with 5 seater and 7 seater options. EECO is equipped with advanced Engine Management System for optimizing fuel efficiency and performance. It is branded by the manufacturer as a perfect car for every occasion-a business trip or a picnic with the loved ones. A new minivan from Maruti Suzuki is expected in 2011 to replace the Eeco/Versa and (possibly) the ageing Omni.

ZEN ESTILO Maruti Zen is a clear leader in the premium compact car segment in India. It has several technology that makes it stand out from other cars in its segment. Maruti Zen comes equipped with 16 x 4 all aluminium hyper tech engines, with its power to weight ratio of 78.4 bhp per tonnes , the highest in its class, the engine also offers optimum fuel economy , excellent pick up and acceleration. The 16- bit Micro processor in Zen delivers ideal combo of speed, power and fuel efficiency. Its electronic power steering ensures effortless maneuverability, more control and a better grip. MARUTI SUZUKI SX4 Designed by GiorgettoGiugiaro'sItaldesign studio, the SX4 (an abbreviation of "Sports Xover 4 all seasons ") replaces the Aerio (some markets called Liana). The "SX 4" designation was used by American Motors (AMC) for a sporty liftback model in its all-wheel drive AMC Eagle passenger cars.

GRAND VITARA Grand Vitara is meant for the people who want to live life grand size. With 127 KW @ 6000 rpm on call, the 2.7 litres DOHC V6 engine can empower the Grand Vitara to climb up steep terrains; Zip effortlessly down the highway and with plenty of low end torque, the high performance vehicle can take on snowy ramps and muddy tracks with equal ease. Its four wheel drive gives Vitara the power to go places.

SWIFT Maruti Swift brings a feeling of freshness to the compact car segment . Its appealing looks , spacious interiors, and a whole a lot of user friendly features at once catch our attention. It comes in three variants :-Maruti Suzuki Swift LXi, Swift VXi, Swift ZXi.

WAGON R Wagon R is a hugely successful car which comes in four variants- Maruti Wagon R LX, Maruti Wagon R LXi, Maruti Wagon R VXi and Maruti Wagon R AX.Wagon R comes with 1064 cc MPFI low friction engine that delivers an awesome 64 bhp @6200 rpm for smoother pick up and faster acceleration. Dual Distributor less Digital Ignition (DDLI) ensures an instant hassle free start every time and a more efficient power distribution. Wagon Rs tall body , high seats and wide opening doors make it easier to get in and out. A-STAR Indian car market leader Maruti Suzuki has launched A-Star in the hatchback car segment in which the company holds ruling position with 55% market share. Maruti has unveiled A Star as a next generation model of its model Alto which is already selling greatly in the segment. Scroll down to know more about the sporty and striking features of all new A Star Car.

PRICES OF MARUTI PRODUCTS

Car market leader Maruti Udyog Limited has announced a marginal increase in price of certain models. .The price increase is due to rise in input costs and freight costs, which increased following the rise in oil prices. In this phase, the company has decided to pass on only a part of the increase in costs to the customers. There is no change in the prices of Swift, Zen, and WagonR (Petrol). Ex-Showroom Prices in Delhi (in Rs) :Models Maruti Suzuki 800 Maruti Suzuki Omni Maruti Suzuki Alto Maruti Suzuki Eeco Maruti Suzuki Zen Estilo Maruti Suzuki Wagon R Maruti Suzuki A Star Maruti Suzuki Ritz Maruti Suzuki Swift Maruti Suzuki Swift Dzire Maruti Suzuki Gypsy Maruti Suzuki SX4 Maruti Suzuki Grand Vitara PRICES 1,94,620 2,09,757 2,28,982 2,84,488 3,31,412 3,39,058 3,63,220 4,09,822 4,27,635 4,96,671 5,28,818 7,08,062 17,19,226

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. Cost leadership Maruti is the price dictator in Indian automobile industry. Its 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 Marutis 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 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.

PLACE

The Place of Maruti cars is in the whole world. Maruti Udyog Limited decides its distribution channel for selling cars like some time or level or sometimes two levels marketing channels. They decide area in which they deal customers. They show the permanent location for selling the cars. They provides many useful inventory they define the transport facility of the company to the market and market to the customers. Many showrooms of MUL are there in our India. PROMOTION

MUL strongly believes in attribute-oriented advertising. In an attempt to reposition M800 as a choice for those upgrading from a two-wheeler, MULs campaign of a child playing with a toyM800 drives home the fuel-efficiency factor: the car never stops because the fuel never finishes. The future communication strategy that MUL has envisioned for M800 is a snap of atypical middle-class family commuting on their two-wheeler. Next to them is another family except that this one is comfortably ensconced in a Maruti 800. One of MULs most ambitious television campaigns launched the Zen Predator. Positioning it as strong, sleek and sexy, the commercial showcases the variants newstyling through the theme of predator and prey in the context of a modern jungle. The theme is one of a chase that ends in willing surrender, brought home in the baseline:Surrender to the new Zen.

The Zen Predator is being aggressively promoted in print. MUL bought the entire advertising space on The Weeks first issue of 2004. Additionally, MUL is the first Indian automobile corporate to utilise the internet for a complete branding exercise, using interactive and page domination techniques.

Recently, MUL has turned its marketing focus to corporate TV commercials to promote its entire range of vehicles. The company has rolled out a new corporate TV campaign, featuring the Maruti Puttar. The rationale behind a second TVC featuring the same child model as the M800 campaign is to leverage the brand recall of the earlier commercial, driving home the point that Maruti Suzuki family is a happy family.

MUL is involved in a wide range of sponsorship activities, placing particular emphasis on motor sports. It was the founding sponsor of Raid De Himalaya, and in its fifth year continues to be closely involved with it. The company regularly holds car ralliesfor amateur drivers and aspiring rallyists. MUL now has plans to host golf and poloevents.

Promotional strategies:

Road Shows The company plans to stage road shows, to display vehicles in thepavilions duringvarious college festivals and exhibition. This car will appeal toyoungsters more.

Television advertisements Advertisements to promote and market our product will be shown onleading televisionchannels. Major music and sports channels will promoteand they will reach out to the youthwill be promoted through Star, Zee, Sonyand Doordarshan etc as it has more viewers. Radio Radio is the medium with the widest coverage. Studies have recently shown high levelsof exposure to radio broadcasting both within urban and rural areas, whether or not listenersactually own a set. Many people listen to other people's radios or hear them in public places. So radio announcements will be made and advertisements will be announced on the radio about the product features and price, qualities, etc. Print Ads Daily advertisements in leading newspapers and magazines will be used to promote the product. Leaflets at the initial stage will be distributed at railway stations, malls, college areas and various other locations. Workshops and Seminars Workshops and seminars will be held in colleges and big corporate to make people aware about the companies past performance and product features, its affordability and usage, vast distribution network. Road shows will be conducted where free trials of the car would be given.

Banners, neon signs Hoardings, banners, neon signs displayed at clubs, discs, outside theatres and shops to promote SWIFT.

Booklets and pamphlets Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to read. These booklets will provide information about our company; the products offered which suits the customers need accordingly.

Advertising strategies Emotional appeal Generates association with the audience Advertising strategy SWIFT: Start advertising two weeks before launch Sponsor cricket matches Promotion at malls Launch around a month before festivals like Diwali and Navratri.