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A STUDY OF MARKETING STRATEGIES OF

BY PRATHAM JUNEJA BBA-B TH 4 SEMESTER ROLL NO.113

ACKNOWLEDGEMENT
We wish to express our sincere thanks to Prof. Mr. SANJAY MANOCHA, FACULTY- BHARATI VIDYAPEETH UNIVERSITYS INSTITUTE OF MANAGEMENT AND RESEARCH for giving us the opportunity to work on the marketing plan of a company. This has given us the insight of how the various theoretical concepts are applied in an organization. I got the opportunity to do a challenging project in MARUTI UDYOG LIMITED. The project is the important part of our study and gives us a real practical exposure to the corporate world. I also thank to Dr. Sachin S. Vernekar, Director, BHARATI VIDYAPEETH UNIVERSITY INSTITUTE OF MANAGEMENT & RESEARCH for giving me chance to get such an experience and giving me chance to get an industrial experience.

INDEX
S.No. Topics
1. 1.1 1.2 1.3 2. 2.1 2.2 3. 4. 5. 6. 6.1. 6.2. 6.3. 7. 8. 9. 9.1. 9.2. Introduction Indian Automobile Industry History Overview An Introduction to Maruti Udyog Ltd. Products of Maruti Suzuki Competitors of Maruti Udyog Ltd. Competitors of Maruti Suzuki Swift Marketing Mix Swot Analysis Research Methodology Objectives of the Study Data Collection Tools Limitations Analysis Conclusions & Recommendations Annexure Bibliology Questionnaire

Page No.
5 5 5 6 14 16 18 20 21 25 37 40 41 42 43 47 48 48 49

INTRODUCTION

INDIAN AUTOMOBILE INDUSTRY

One of the major global automotive industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth. Following the economic reforms of 1991 the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. The monthly sales of passenger cars in India exceed 100,000 units

History
In 1953, the government of India and the Indian private sector initiated manufacturing processes to help develop the automobile industry, which had emerged by the 1940s in a nascent form. Between 1970 to the economic liberalization of 1991, the automobile industry continued to grow at a slow pace due to the many government restrictions. A number of Indian manufactures appeared between 1970-1980. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. Timeline of Indian automobile industry:

1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves Company, Mumbai 1901 First Indian to own a car in India - Jamshedji Tata 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata 1905 Fiat Motors 1911 First Taxi in India 1924 Formation of traffic police 1928 Chevrolet Motors 1942 Hindustan Motors 1944 Premier Auto Limited 1945 Tata Motors 1947 Mahindra Motors 1948 Ashok Motors 1948 Standard Motors 1974 Sipani Motors 1981 Maruti Udyog 1994 Rover Motors 1994 Mercedes Benz 1994 Opel 1995 Ford Motors 1995 Honda SIEL 1995 Reva Electric Car Company 1995 Daewoo Motors 1996 Hyundai Motors 1997 Toyota Kirloskar Motors 1997 Fiat Motors (Re-Entry) 1998 San Motors 1998 Mitsubishi Motors 2001 Skoda Auto 2003 Chevrolet Motors (Re-Entry)

Following the economic reforms of 1991, the automobile section underwent delicensing and opened up for 100 percent Foreign Direct Investment. A surge in economic growth rate and purchasing power led to growth in the Indian automobile industry, which grew at a rate of 17% on an average since the economic reforms of 1991. The industry provided employment to a total of 13.1 million people as of 200607, which includes direct and indirect employment. The export sector grew at a rate of 30% per year during early 21st century. However, the overall contribution of automobile industry in India to the world remains low as of 2007. Increased presence of multiple automobile manufacturers has led to market competitiveness and availability of options at competitive costs. India was one of the largest manufacturers of tractors in the world in 2005-06, when it produced 2,93,000/- units. India is also largely self-sufficient in tyre production, which it also exports to over 60 other countries. India produced 65 million tyres in 2005-06.

Overview
Pran Tiku (2008)on the subject of automobile industry in Indiaholds:
Indias car market has emerged as one of the fastest growing in the world. The number of cars sold domestically is projected to double by 2010, and domestic production is skyrocketing as foreign makers are setting up their own production plants in India. The governments 10-year plan aims to create a $145 billion auto industry by 2016. According to McKinsey, the auto sectors drive to lower costs will push outsourcing. The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002. McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indian suppliers, 80 percent have the ISO 9000 certificatethe international standard for quality management.

The production of automobiles in India is largely aimed at local consumers. Several Indian manufacturers also export a diverse variety of auto components. Tiku (2008) predicts a sale of 4.2 million four wheeler automobiles in India by 2015. Indian passenger vehicle exports are also expected to rise from 170,000 in 2006 to 500,000 in 2010. Indian automobile companies
The following are some of the notable Indian automobile manufacturers: 7

Company

Description

Product

Ashok Leyland

Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India. In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The Company's 18 seater to 82 seater doublename changed soon with equity decker buses, 7.5 tonne to 49 tonne participation by British Leyland and in haulage vehicles, special Ashok Leyland commenced application vehicles, and diesel manufacture of commercial engines for industrial, marine and vehicles in 1955. Ashok Leyland genset applications. has six manufacturing plants: a plant at Ennore near Chennai, two plants at Hosur (called Hosur I and Hosur II, along with a press shop), and the assembly plants at Alwar and Bhandara. Gas-cylinder carrier, copied from 3-wheel Vidal & Sohn TempoWerke (German) Hanseat; Matador, a version of Hanomag van and light-truck (1.5 tonne payload); Tempo-traveller, Indian version of Daimler-Benz T-1 transporters; Man-Force Trucks, licensed version of MAN AG trucks; and UV's copied from Daimler-Benz.

Force Motors, formerly Bajaj Force Motors Tempo, is a Pune-based Ltd manufacturer of a number of commercial vehicles

Hindustan Motors

Hindustan Motors is one of the oldest Indian car manufacturers in India. It is perhaps best known for the Ambassador which has remained virtually unchanged for about 30 years. It is still very popular as a taxi and is widely used by Indian politicians.

Trekker (discontinued), Land master (discontinued), Contessa (discontinued)5th generation Vauxhall Victor, and the Ambassadora version of the 1950s Morris Oxford.

Mahindra & The automotive section of Mahindra Mahindra started off when a first Limited batch of seventy five Utility Vehicles (UVs) was imported in

Armada (discontinued), Voyager (discontinued), Bolero. Commander, CL, MaXX, Scorpio, and Mahindra and Mahindra 8

CKD condition from Willys in 1947. It presently manufactures Jeeps along with agricultural equipment and light trucks.

Classic.

Maruti Suzuki

Maruti Suzuki (formerly Maruti Udyog) was formed as a partnership between the Government of India and Suzuki of Japan. It brought India its first "affordable" car, the Maruti 800. It is the biggest car manufacturer in India and especially dominant in the small car sector. Then it brought out the Maruti 1000, made by Maruti Udyog was the first ever 800, Omni, Alto, Gypsy, Swift, contemporary sedan-type car SX4, WagonR, Versa, Zen Estilo, launched in India. The car (which Grand Vitara, and Swift Dzire. Suzuki sold in other countries as the Cultus/Swift/Geo Metro with a 1.3 L or 1.6 L engine) was introduced in October, 1990. Sold at Rs.3.81 lakh, it was back then the costliest car released in the Indian market. Then the company replaced it with Esteem and from those days on a line of Suzuki cars rolled out in the Indian market.

Walchand Hirachand started Premier Automobiles Ltd. (PAL) in 1942. They assembled De Soto and Plymouth cars in 1946 in Premier Padmini (discontinued), 118 NE association with Chrysler from the Automobiles (discontinued), and Premier Sigma. United States. They also manufactured the Premier Padmini which was a version of the Fiat 1100. REVA REVA Electric Car Co. is the producer of the Reva (G-Wiz), an electric car intended for use as a City car. More REVAs have been produced than any other currently selling electric car and sales are increasing. It is currently the REVA (G-Wiz).

world's leading electric car manufacturing company. Tata Motors, formerly known as TELCO, is the largest automobile manufacturer in India and commands more than 70% of the commercial vehicle market in India and has also increased its share of passenger vehicle market. It was Indica, Indigo, Indigo Marina, Tata Motors responsible for developing India's Safari, Sumo, TL, and Tata Nano. first indigenous vehicle, the Indica. It has proved to be a success in the market after initial quality problems. The company also exports the car to many countries. Tata owns major stake in Jaguar and Range Rover. In addition to Bangalore-based Reva, which currently is the only company actually selling EVs today, electric cars made in India includes:

Mahindra & Mahindra: Four-seat model by 2010. Tata: 2008-2009 (Also possibly an air car). Ajanta Group: clockmaker with plans for low-cost EV. Tara: Low-cost EV less than a Tata Nano. Hero Electric: 2013 Electric car.

Multi-national companies in India

Company Description In January 2008, Audi started production with the Audi A4 and A6 at its factory in Aurangabad in the state of Maharashtra. Product

Audi

A4, A6, A8, R8, Q7, and TT.

BMW

BMW is a manufacturer of sport 3 Series, 5 Series, 6 Series, 7 Series, sedans. BMW enjoys good brand X3, and X5. recognition in India. It has set up a plant in Chennai, Tamil Nadu, to manufacture cars locally

10

exclusively for the local market with no plans for export. It set up the plant to circumvent high import duties. The Fiat Uno was one of the first products to be introduced. The Fiat Palio was later introduced and was initially a success with its style and ride comfort coupled with solid build but has slowly lost its sheen due to low fuel efficiency. Other models were introduced such as the Palio Weekend and Siena. Fiat tried re-branding of the Fiat Siena to Fiat Petra without much success. It Uno (discontinued), Palio, Palio Stile, roped in Sachin Tendulkar as one of Siena (discontinued), Siena Weekend its brand ambassadors. Even (discontinued), Petra (discontinued), Michael Schumacher appeared in an Adventure, Fiat Bravosold in ad for the Palio. It has entered now collaboration with Tata Motors, Fiat into an alliance with Tata Motors to 500sold in collaboration with Tata jointly manufacture cars at its plant Motors, and Fiat Lineasold in in Ranjangaon, near Pune. The collaboration with Tata Motors. facility will enable the two companies to make about 200,000 cars per annum, and also house an engine manufacturing unit with a capacity of 250,000 units per annum. The alliance will also see Tata Motors use Fiat's diesel technologythe 1.3 litre multijet diesel enginefor its own vehicles. The two companies also have a distribution and service partnership. Ford entered India in collaboration Escort (discontinued), Ikon, Mondeo with Mahindra & Mahindra in 1995 (discontinued), Endeavour, Fusion, with a plant in Tamil Nadu. The and Fiesta. first model was the Escort. Chevrolet has been a recognized brand in India for several decades. The model line-up consists of vehicles from cheaper sister brands like Daewoo. General Motors initially entered India with the Opel Taverarebadged Isuzu Panther, Forester (discontinued)rebadged First Generation Subaru Forester, Aveosecond Generation Daewoo Kalos sedan, Aveo UV-Afirst Generation Daewoo Kalos hatchback, 11

Fiat

Ford Motors

General Motors

brand, but the Opel brand was dropped in March 2006 because sales were at an all time low due to high prices and General Motors wanted to focus more on their Chevrolet brand. Since the Optrarebadged Daewoo Lacetti, Chevrolet brand was introduced in SRVrebadged Daewoo Lacetti, India, there have been no new Opel Sparkformerly Daewoo Matiz in products. GM's Indian operations India, and Captivarecent launch in were originally a JV between India. Hindustan Motors and GM, with most of GM's vehicles assembled at Hindustan's plant in Halol, Gujarat. Since then, GM India is now wholly owned by GM. Honda Siel Cars entered India in 1995. It sells 4 cars in Indiathe City, Civic, Accord, and CR-V. The manufacturing plant of Honda Siel is located in Greater Noida. The Accord, City, Civic, and CR-V. model of Accord sold in India is the 2003 model. The most inexpensive car from HondaThe City. The most expensiveThe Honda Accord V6. Santosecond generation Hyundai Atos, Accentsecond generation Hyundai Accent sedan, Sonatasold When Hyundai entered India, the as the Sonata Embera, Vernathird brand was virtually unknown in the generation Hyundai Accent sedan, Indian market. But now Hyundai Getzsold as the Getz Prime, Elantra has good market because of its 3rd generation Hyundai Elantra models like SANTRO, Accent etc. sedan, Terracan (discontinued), Tucson, i10brand new small car, global launch in India in 2007, and i20. Logan (in partnership with Mahindra and Mahindra).

Honda

Hyundai

RenaultNissan

Mercedes- Mercedes-Benz has had to cater to C-Class, E-Class, S-Class, ML-Class, Benz the ever gowning luxury segment in SL-Class, CL-Class, SLK-Class, India, especially after the arrival of CLK-Class, GL-Class, and CLS12

the other luxury German manufacturers. Now, MercedesBenz cars are launched in India soon after the worldwide launch and homologation as opposed to earlier, when Mercedes-Benz had monopolized the niche Indian market. In 2007 they launched the SLK-Class and CLS-Class.

Class.

Mitsubishi Motors

Lancer - Sixth Generation Mitsubishi Lancer, Cediaseventh generation Mitsubishi Lancer, Pajerosecond generation Mitsubishi Pajero, Monterothird generation Mitsubishi Pajero, and Outlander.

koda

koda Auto is an important car manufacturer of India. It recently launched the Laura; the Octavia still Octavia, Superb, Laura, and Fabia. continues to exist. koda also offers the Superb in India but it's not too popular. Qualis (discontinued)3rd generation Toyota Kirloskar sells 4 car models Toyota Kijang, Camry7th in India. It stopped producing the generation Toyota Camry (the latest Toyota Qualis to make way for the generation Camry), Corolla9th Toyota Innova, which was launched generation Toyota Corolla, Innova, in India in 2005. The most and Land Cruiser Prado VXlatest expensive car from Toyota is the generation Toyota Land Cruiser Land Cruiser Prado. (PRADO).

Toyota

13

INTRODUCTION OF MARUTI UDYOG LIMITED

Maruti Udyog Limited

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for about two decades. Its manufacturing plant, located some 25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a capability to produce about half a million vehicles.

14

The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7. In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR, Zen and Esteem, completely designed and styled in-house. Maruti's contribution as the engine of growth of the Indian auto industry, indeed its impact on the lifestyle and psyche of an entire generation of Indian middle class, is widely acknowledged. Its emotional connect with the customer continues Maruti tops customer satisfaction again for sixth year in a row according to the J.D. Power Asia Pacific 2005 India Customer Satisfaction Index (CSI) Study. The company has also ranked highest in India Sales Satisfaction Study. The company's quality systems and practices have been rated as a "benchmark for the automotive industry world-wide" by A V Belgium, global auditors for International Organisation for Standardisation. In keeping with its leadership position, Maruti supports safe driving and traffic management through mass media messages and a state-ofthe art driving training and research institute that it manages for the Delhi Government. The company's service businesses including sale and purchase of pre owned cars (TrueValue), lease and fleet management service for corporates (N2N), Maruti Insurance and Maruti Finance are now fully operational. These initiatives, besides providing total mobility solutions to customers in a convenient and transparent manner, have helped improve economic viability of The company's dealerships. The company is listed on Bombay Stock Exchange and National Stock Exchange. The objectives of MUL then were: Modernization of the Indian Automobile Industry. Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth. Production / R & D Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two vehicles roll out of the 15

factory every minute. And it takes on an average, just 14 hours to make a car. More importantly, with an incredible range of 11 models available in 50 variants, there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream.

OTHER PRODUCTS OF MARUTI SUZUKI MODEL Maruti 800

TYPE Small

Maruti 800 STD BS III Maruti 800 AC BS III Small 5 seater Maruti Omni 8 seater Maruti Omni LPG Maruti Omni Small

Omni

Maruti Alto

16

Alto Alto Lx Alto Lxi Mid-Size

Maruti Zen

Maruti Zen Lx Maruti Zen Lxi Maruti Zen Vxi Mid-Size Lx Lxi Vxi Ax

Wagon R

WagonR WagonR WagonR WagonR

Versa

Mid-Size

5 seater 8 seater ( DX & DX2) Mid-Size

Maruti Esteem

Maruti Esteem Lx Maruti Esteem Lxi Maruti Esteem Vxi Mid-Size

Baleno

Baleno Sedan VXi Baleno Sedan LXi

17

BIT ABOUT MARUTI UDYOG LTD. COMPETITORS OF MARUTI UDYOG LTD.

18

19

COMPETITORS OF MARUTI SUZUKI SWIFT 1. HYUNDAI SANTRO 1.1 CRDI: When Hyundai launch the Santros replacement in 2007, it will come with the surprise addition of a 1.1 litre common rail diesel. Likely to be the cheapest car on sale powered by a CRDi engine, this motor is the new Accents CRDi unit less one cylinder. Incredibly powerful for its size, this 1,120cc engine produces a whopping 75bhp. Unconfirmed reports talk of overall figures, city and highway combined, in excess of 20 kilometres a litre. 2. HYUNDAI GETZ 1.5 CRDI: Not as attractive as the Swift, but more practical, with greater rear seat comfort and more useable space, Hyundais diesel assault continues up the range with its large hatch. The Getz will share its motors with the new Accent/ Verna. Hyundai sell the Getz powered 20

by a detuned version of the new Accent motor in the European continent, and its likely to be the case here as well. Producing 87bhp as against 108bhp, using two versions of the same engine will help Hyundai get a handle on costs. The diesel Getz also qualifies for excise sops, meeting both length and engine capacity criteria. 3. TATA INDICA 1.3 MULTIJET: By the time the larger new Indica is out, the Tata-Fiat tie-up will be going full throttle. Tata will borrow engines from Fiat with, you guessed it, the 1.3 litre Multijet being the engine of choice. Thoroughly localised, cheaply assembled and very capable, it will give the new Indica/ Indigo family a huge leap forward as far as overall ability is concerned.

MARKETING MIX
4Ps OF MARUTI SUZUKI SWIFT

PRODUCT PRICE PROMOTION PLACE

PRODUCT

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Features: The all-new Maruti Suzuki Swift is fully loaded with a range of exciting new features. It's a perfect complement to your evolved tastes and lifestyle. And the best way to take your driving pleasure to a brand-new high.

European Styling. Japanese Engineering. Dream-Like Handling.

The new Swift is a generation different from Suzuki design. Styled with a clear sense of muscularity, its one-and-a-half box, aggressive form makes for a look of stability, a sense that it is packed with energy and ready to deliver a dynamic drive. Its solid look is complemented by an equally rooted road presence and class-defining ride quality. New chassis systems allow for the front suspension lower arms, steering, and gearbox and rear engine mounting to be attached to a suspension frame. You get lower road noise and a greater feeling of stability as you sail over our roads with feather-touch ease. There are three variants of Maruti Suzuki Swift: Swift LXi Swift VXi Swift ZXi SWIFT LXI: 3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3 position), console box (lower), cup holders (front 2, rear1), front door trim pockets, green tinted glass window, halogen headlamps, headlamp levelling device, heater and manual Air conditioning, OVRM (internally adjusted), rear fog lamps, wind screen wiper 2 speed plus 1 speed intermittent, tailgate opener key type, trip meter (digital display), sun visors (both sides), brake assist , child lock (rear door), high mounted stop lamp, power steering, rear seat belts etc. are the features available in this model. Swift VXi

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Apart from the features found in other model, striking features of this model are black coloured A & B pillars, 12v accessory socket in centre console, day and night rear view mirror, door ajar warming lamp, driver's seatbelt warning lamp, tachometer, driver's seat belt warning lamp, vanity mirrors (sun visor co-driver side), rear seat head restraints, fabric accented door trims, central door locking (4 door), front and rear electronic windows, front fog lamps, light off/ key reminder, manual air-conditioning, key not removed warning buzzer, etc. Swift ZXi Special features that have made this model more market friendly are rear window demister, rear parcel shelf, rear window wiper, room lamp and luggage room, keyless entry, dual front airbags, coloured outside door mirror cowls, coloured outside door handles, 12v accessory socket in luggage room, driver seat height adjuster, central door locking (5 doors), seat belts 3-point ELR with shoulder adjusters, seat belts front 3-point ELR with pretensioning, tailgate opener electromagnetic type etc. PRICE Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki Swift car. After launching cars for the masses since so many years, Indias largest automobile manufacturer is now targeting the premium segment with their latest model from the Suzukis stable. The analysts predict the pricing of this premium hatchback to start from Rs. 4 lakh. This price range would practically rip apart Hyundais offering in Getz, which is priced at a much higher tag of Rs. 4.5 lakh. Both the companies are known for their value based offerings and Maruti with their extensive service network and brand reputation for making reliable cars should get the customers nod over their competition. The official pricing however is still not out. However, the company is said to be studying the prospects of launching the base model at the 4-lakh price tag. There is another advantage in doing so considering in the capital city of Delhi NCR road tax on the sub 4 lakh priced cars is comparatively lower at 2%. Cars at a price higher than 4 lakh have to pay a 4% road tax. Delhi NCR is one of the major targeted markets and it might get the benefit of this policy. And if they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai Getz, they would quite likely force the competition to rethink their strategy. Variant Non Metalli Metallic Price

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c Price Swift LXi Swift VXi Swift VXi (ABS) PROMOTION When Maruti Udyog launched the Swift in May last year, the automotive industry was agog with expectation that the car had the makings of a real winner. Three versions were launched with the base variant carrying a retail tag of Rs 3.85 lakh, ex-showroom, New Delhi, and this aggressive pricing only reinforced this feeling. A year later, the company says the Swift is now the most-sold car in the first year of any car in the history of the Indian automobile industry, having totted up sales of 61,200 units. This is higher than what Maruti had initially planned to sell. The car recorded an estimated 4,000 bookings at the time of its launch, and the initial output of 200 units a day on a two-shift basis, wasnt enough to cope with demand. In October, the company increased capacity for the Swift which helped cut down on the waiting time from an estimated three months. The company currently makes over 300 units every day. The Swift has made a real impact in the small hatchback segment leaving its closet rival, the Getz far behind. Between April 2005 and April 2006, Hyundai sold 16,872 units of the Getz. Maruti is now gearing up for the diesel version of the Swift which is expected to debut by October. The diesel version will benefit from the excise sops in this years buget, and it remains to be seen how the models fares in the marketplace. PLACE The car manufacturing company, called Maruti Suzuki Automobiles India Limited, is a joint venture between Maruti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30 per cent stake respectively. The Rs.1,524.2 Crore plant has a capacity to roll out 1 lakh cars per year with a capacity to scale up to 2.5 lakh units per annum. The car manufacturing plant will begin commercial production by the end of 2006. 416485 443924 464962 416485 443924 464962

24

The engine and the transmission plant has owned by Suzuki Power train India Limited in which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyog holding the balance. The ultimate total plant capacity is three lakh diesel engines. However, the initial production is 1 lakh diesel engines, 20,000 petrol engines and 1.4 lakh transmission assemblies.

SWOT ANALYSIS OF MARUTI UDYOG LTD.

STRENGTHS WEAKNESSES OPPURTUNITIES THREATS

STRENGTHS The Quality Advantage Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power 25

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. The J.D. Power APEAL Study 2004 proclaimed the Wagon R no. 1 in the premium compact car segment and the Esteem No.1 in the entry level mid - size car segment. This study measures owner in terms of design, content, layout and performance of vehicles across 8 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 our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004. 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 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. WEAKNESSES

26

 OPPURTUNITIES Leading Growth As the market leader, MUL led the growth in the passenger car sector last year. Maruti's sales went up 30% to 4,72,000/units. This is the highest annual sale since the company began operations 20 years ago. Maruti also gained market share, mainly on account of its performance in the competitive A2 segment where it increased its share from 40.3% in 2002-03 to 47.7% in 2003-04. The record sales performance was reflected in the financials. Net Sales (excluding excise) grew by 31% to Rs 93,456 million. Operating Profit Margin increased from 0.8 % in 200203 to 4.7 % in 2003-04. Profit After Tax jumped 2700 million to Rs 5421 million. MUL is committed to motorising India. Towards this end, company's partnership with State Bank of India and its

27

Associate Banks took organised finance to small towns to enable people to buy Maruti cars.

THREATS

THREATS FROM COMPETITORS Tata Motors Limited In the 2004 fiscal year, Tata Motors generated revenues of $3,542.2 million (INR154,935.2 million). The company made a net profit of $185 million (INR8,103.4 million) in the 2004 fiscal year.

General Motors Corporation For the fiscal year ended December 2004, GM generated revenues of $193,517 million, an increase of 4.3% from the previous year. The company reported a net income of $2,805 million for fiscal 2004, down 26.6% from the previous year.

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PRODUCT LIFE CYCLE

Introduction: As a new product much time will be spent by the organisation to create awareness of it presence amongst its target market. Profits are negative or low because of this reason.

Growth: If consumers clearly feel that this product will benefit them in some ways and they accept it, the organisation will see a period of rapid sales growth. Maruti Suzuki Swift stands on Growth Stage. As the sales of Maruti Suzuki Swift is high as compare to Hyundai Getz then the consumer will buy Maruti Suzuki Swift by providing them with great benefits in future and they will accept it.

29

Cash Cows: High Market Share / Low Market Growth Here, youre well-established, so its easy to get attention and exploit new opportunities. However its only worth expending a certain amount of effort, because the market isnt growing and your opportunities are limited. Maruti Suzuki Swift stands on Cash Cows where they have established their brand in the market. Of which they can exploit new opportunities. They have opportunities to expand their product more in the market. As they have expanded globally in the global market.

NEW MODEL OF SWIFT

30

Swift Dzire - is that the name of the Maruti Swift sedan which will replace the Esteem?

Maruti Suzuki Dzire, the replacement for old warhorse Maruti Esteem is on cards. Maruti is expected to unveil the Suzuki Dzire at the Auto Expo in New Delhi. Basically, the Suzuki Dzire will be the sedan version of the hugely successful Suzuki Swift. Maruti has been planning for a while to bring in a 3-box version of the Swift, and the Dzire may be the answer. Though the Dzire will be essentially the Maruti Suzuki Swift in a sedan avatar, the company is planning modifications in the headlamps, front grille and bumper design to make the car not look like a Swift with a tail. Unlike the Suzuki Swift which is made in several countries, Maruti Suzuki plans to build the Suzuki Dzire only in India. The Dzire may be exported to several countries. Maruti Suzuki has been phasing out older 3-box models and bringing in new global products to replace them. The Maruti Suzuki Baleno was the first to go out, to be replaced by the Maruti Suzuki SX4. The next in line seems to be the Maruti Esteem, one of the longest selling cars from the Maruti stable. The car, which initially made a feeble appearance as the Maruti 1000, went in for a complete overhaul and reappeared as the Maruti Esteem. With minor cosmetic changes, Maruti has been successfully selling the sedan for 14 years now. The Suzuki Dzire is likely to offer both petrol and diesel options, in 1.3 litre engines. The car is likely to come with ABS, power steering, fog lamps and automatic climate control systems.

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Maruti Suzuki has launched the Swift Dzire, its seventh model in three years. Priced in the introductory range of Rs.4.49 lakh to Rs.6.7 lakh (ex-showroom, Delhi), the Maruti Suzuki Swift Dzire has both diesel and petrol variants, powered by 1.3-litre engines. While the petrol variant will cost between Rs.4.49 lakh and Rs.5.9 lakh, the diesel version will carry a price tag of Rs.5.39-6.7 lakh.

Complete with an integrated stereo, steering-mounted audio controls, automatic climate control, power windows and dual airbags, The Swift Dzire looks like a terrific buy - for now. This is because the Maruti Suzuki Swift Dzire may prove to be costly for buyers who opt to wait for a bit before buying the Swift Dzire. Rising input costs, especially that of steel and petroleum products, are putting pressure on the margins and it is expected that Maruti Suzuki might hike the price of the Swift Dzire. The Dzire is an India-only model as far as we know. It appeals to the Indian preference for seans over hatchbacks. At the current price, the Dzire will take on the various Tata Indigos, the Mahindra Logan, Ford Fiesta - appropriately enough. After all, it is a car that would replace the ageing Maruti Esteem.

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There are many who have expressed reservations about the looks of the Swift Dzire though. It looks a bit odd, definitely, from certain angles. Not that it is going to matter to an Indian buyer. Maruti Suzuki expects that with growing incomes and better lifestyles, many households would want to upgrade to a sedan. Maruti maintains that the Swift DZire is an entry-level sedan offering style, features and performance at an attractive price. Meanwhile, Maruti Suzuki plans to launch its Maruti A-Star in October 2008. The Maruti A-Star is expected to join Maruti Suzukis existing products WagonR and Zen Estilo. Maruti also plans to export the A-Star model to the European market as well.

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Showrooms of Maruti in Delhi;

Allianz Automobiles: Kamal Cinema Building, Safdarjung Enclave, New Delhi Telephone: 91-11-26104693, 26183785 E-Mail: aalianz@satyam.net.in

Apra Auto India Private Limited: K-804/2 Mahipalpur, Vasant Kunj Road, New Delhi. Telephones: 91-11-42390000, 41009900 Fax: 91-11-52390088 E-Mail: apravk@apraauto.net

Bagga Link Motors Private Limited: 395, Patparganj Industrial Area, New Delhi. Telephones: 91-11-22169111, 22169555, and 22169222 Fax: 91-11-22141133 E-Mail: bim@del2.vsnl.net.in

Competent Automobiles Company Limited: 48, Ring Road, Lajpat Nagar IV, New Delhi. Telephone: 91-11-26917814 Fax: 91-11-26830306 E-Mail: cacllp@mnatraonline.com

Competent Automobiles Company Limited: 14, Competent House, Middle Circle, Connaught Place, New Delhi. Telephones: 91-11-23355285/86/87, 23354572/73/74, 23328009 E-Mail: competent@del6.vsnl.net.in

Competent Automobiles Company Limited: 19, Shivaji Marg, New Delhi. Telephones: 91-11-25925261, 25925329, and 25930611 E-Mail: competent@del6.vsnl.net.in

Competent Automobiles Company Limited: 3, Gazipur, Delhi( East), Delhi.

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Telephones: 91-11-22446551, 22217774, and 22446552 Fax: 91-11-22446553 E-Mail: competent@del6.vsnl.net.in

D D Motors: 100, Mayapuri Phase II, New Delhi. Telephone: 91-11-41845000, 28116502, and 28115403 Fax: 91-11-28113505 E-Mail: ddinfo@ddmotors.net

DDMotors: 5, Wazirpur Industrial Area, Near Wazirpur Bus Depot, New Delhi. Telephone: 91-11-27153999, 41843000 Fax: 91-11-27151466 E-Mail: ddnorth@bod.net.in

D D Motors Private Limited: F 1/9, Okhla Industrial Area, Phase 1, New Delhi. Telephone; 91-11-40523000 E-Mail: dd.south@ddmotors.net

Fair Deal Cars Private Limited: 485-A, Jhilmil, Main G.T.Road, Shahdara, New Delhi Telephone: 91-11-22119626/27 Mobile: 9910894050 E-Mail: fairdealcars@rediffmail.com

Gautam Motors Private Limited: E-46/14, Okhla Industrial Area, Phase-II, Main Kalkaji Road, New Delhi Telephone: 91-11-41613879, 28613880, 28613879 Fax: 91-11-26921189 E-Mail: gautam_sh@eth.net

Krish Automotors Private Limited: Mam Ram Majesty Mall, Plot Number 2, Road Number 43, Guru Harkishan Marg, Pitampura, New Delhi Telephone: 91-11-32435050 E-Mail: krishautomotors@yahoo.co.iN

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Marketing Times Automobiles Private Limited: A-1, Chirag Enclave, New Delhi Telephone: 91-11-26292629 E-Mail: Maruti@marketing-times.com

Marketing Times Automobiles Private Limited: Vishal Cinema Complex, Vishal Enclave, Rajouri Garden, New Delhi Telephone: 91-11-25112222 E-Mail: vishal@marketing-times.com

Maruti Service Master: F-39, Okhla Industrial Area, Phase-2, New Delhi Telephone: 91-11-41612194, 41612195

Pasco Automobiles: A-1, Udyog Nagar, New Rohtak Road, Peeragarhi, New Delhi Telephone: 91-11-25963535 E-Mail: pasco@vsnl.net

Rana Motors Private Limited: Rikhi House A 2/7, Safdarjung Enclave Opposite Bhikaji Cama Place, New Delhi. Telephone: 91-11-26712222 (10 Lines) Fax: 91-11-26711320 E-Mail: ranamotors@vsnl.in

Rana Motors Private Limited: Tis Hazari Metro Station, Boulevard Road, New Delhi. Telephone: 91-11-23972222 E-mail: ranamotors@bol.net.in

Rohan Motors Limited: A-15, Mohan Co-operative Industrial Area, Mathura Road, Delhi Telephone: 91-11-41679303/04, 41678695, Fax: 91-11-51679302 E-Mail: rminewdelhi@touchtelindia.net.in

Saya Automobiles Limited: A-21-22, G.T.Karnal Road, Industrial Road, Industrial Area, New Delhi, Telephone: 91-11- 27231955-57, 27231960, 27251402/03

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Fax: 91-11-27216900 E-Mail: saya@ndb.vsnl.net.in

Sikand & Company: 50, Janpath, New Delhi. Telephones: 91-11-23320450, 23310364, 23326508 Fax: 91-11-23313765 E-Mail: hds@ndf.snl.net.in

T R Sawhney Motors Private Limited: 33 & 34, Harichand Melaram Complex, East Gokulpur, Wazirabad Road, New Delhi. Telephones: 91-11-22816777, 22816533, and 22816733 E-Mail: trsawhney@sawhney.net.in

T R Sawhney Motors Private Limited: B-5, Industrial Area Phase-1, Badli Opposite Sector-18, Telephone: 91-11-27853094 E-Mail: trsawhney2@sify.com

Research Methodology:

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Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods Research design: Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyers behaviour, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance. Type of Research is: Descriptive Research The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more
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variables. The objective of such study is to answer the who, what, when, where and how of the subject under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from a given population. Thus, it may deal with household, dealers, retail stores, or other entities. Data on a number of characteristics from sample elements are collected and analyzed. Cross sectional studies are of two types: Field study and Survey. Although the distinction between them is not clear- cut, there are some practical differences, which need different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. Such studies are done in live situations like communities, schools, factories, and organizations. Another type of cross sectional study is survey result, which has been taken by me. A major strength of survey research is its wide scope. Detail information can be obtained from a sample of large population .Besides; it is economical as more information can be collected per unit of cost. In addition, it is obvious that a sample survey needs less time than a census inquiry. Descriptive research includes survey and fact finding enquiries of
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different kinds of the major purpose. Descriptive research is description of the state of affairs, as it exists at present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. The reason for using such needs to be flexile in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed ever now and then.

OBJECTIVES OF THE STUDY

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1. To find out the market share of Maruti Suzuki swift 2. To study competitors of Maruti Suzuki swift 3. To study the marketing strategies of Maruti Suzuki swift 4. To study the strength, weakness, opportunity, and threats (swot - analysis) of swift. 5. To study the customer satisfaction regarding Maruti Suzuki cars 6. To study the comparison of swift and swift dzire.

Data collection tools:

After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a

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field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data. Primary data: For primary data collection, we have to plan the following four important aspects. Sampling Research Instrument Secondary Data - The Companys profile, journals and various literature studies are important sources of secondary data. Data analysis and interpretation 1. Questionnaires 2. Pie chart and Bar chart Questionnaires: This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. Pie chart: This is very useful diagram to represent data, which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data. Bar chart: This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.

LIMITATIONS:Every study has certain limitations. In my study, also there were certain limitations, which I could not able to solve.

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1. The research was conducted in a very small area. 2. My research work period witness the biggest ups and downs in product sale of only one brand, which affected the perception of the customer. This was biggest drawback of my study. 3. Time factor was also important for me. 4. I had only found the upper-middle class family to fill up the questionnaire, but generally, an average middle class family was required for the study. 5. The sample size is also very small which represent my research on consumer behaviour.

ANALYSIS:43

Q1. Have you ever purchased any car of Maruti Suzuki?

Yes

No

60 50 40 30 20 10 0 Yes No

Q.2

While purchasing car which feature influence you?

15% 10% 25% P ric e P roduc t Feature B rand 30% 20% S ervic e Durability

Price

Product feature Brand Service

Durability

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Q3. From where you prefer buying a second hand car? Through advertisement Dealers Showroom
40 35 30 25 20 15 10 5 0 THROUGH ADVERTISEMENT DEALERS SHOWROOMS

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons
Attractive Price

Service Demonstrations Offers

30% 55%

Attractive Price Service Demonstration Offers

5% 10%

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Q.5.Which Car of Maruti of do you have? SWIFT SWIFT DZIRE ESTEEM

MARUTI800

ALTO
50 40 30 20 10 0 SWIFT DZIRE ESTEEM MARUTI800 ALTO

Q.6. How frequently you change your cars? 1-3 years

5% 15% 1-3 years 3-5 years 5-10 years 35% More than 10 years

3-5 years
45%

5-10 years More than 10 years

Q.7. Which bank do u prefer for financing the car?

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 HDFC ICICI AXIS BANK PUNJAB NATIONAL BANK

50 40 HDFC 30 20 10 0 ICICI AXIS PNB

Conclusion and recommendations

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a) Maruti should improve its after sale service because its hits

badly car market share. b) More detailed customaries service is to be provided.

c) Show room demonstration should be given at frequent time

interval and feed back should be considered positively.

d) The company should look into the matter of person hiring for

in showroom demonstration. A big showroom should have at least 5 such kind of person.
e) As there is a bottle neck competition between Hyundai and

Maruti, it is necessary to take measure steps to overcome the area of downfall in Maruti with respect to Hyundai. f) The marketing managers should make better relations with dealers and reputation of the company. g) Customer considers quality as their first preference, so the company should give more stress on this. h) The product is well aware and it is on top of mind of customer. So company should always improve services and update their technology.

ANNEXURE BIBLIOLOGY 48

www.marutisuzuki.com www.managementparadise.com www.carwale.com Autocar Magazine

QUESTIONNAIRE

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Q1. Have you ever purchased any car of Maruti Suzuki?

Yes

No Q.2 While purchasing car which feature influence you?

Price

Product feature Brand Service

Durability

Q3. From where you prefer buying a second hand car? Through advertisement Dealers Showroom

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Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following reasons
Attractive Price

Service Demonstrations Offers Q.5.Which Car of Maruti of do you have? SWIFT SWIFT DZIRE ESTEEM
MARUTI800

ALTO Q.6. How frequently you change your cars? 1-3 years 3-5 years 5-10 years More than 10 years

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Q.7. Which bank do u prefer for financing the car? HDFC ICICI AXIS BANK PUNJAB NATIONAL BANK

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