CASE STUDY ON MARUTI 800

Company (MUL) Introduction: MUL was a joint venture created in February 1981 between Japans Suzuki Motor Company and the Indian Government when the latter decided to produce small, economical cars for the masses. The intention from the beginning was to produce a peoples car. To get the project off the ground MUL took over the assets of the erstwhile Maruti Ltd., which was set up in 1971 and closed in1978 Product (Maruti 800) Background: On December 14, 1983, MUL launched the first Maruti vehicle the Maruti800.The first model was the SS80, a 796cc hatchback car priced at Rs. 47,500.Subsequently, in spite of price hikes, the car remained within the reach of the Indian middle class and became a runaway success. Available in vibrant colours when Indias passenger car population comprised mainly Ambassadors and Fiats in black and white, M800 gave Indians the first taste of global quality .In the 1980s, the Maruti 800 (M800) was Indias first peoples car. It caught the fancy of the middle class. Maruti Suzuki has never looked back since. Infact, in 2004, MUL will mark its 21st year of leadership in the Indian car market. The M800, first manufactured in 1983, has sold over 2.1 million units. Even though competition predicts that the A segment is dying, the M800continues to sell an average 12,000 units per month.TheMaruti800 may be based on 1980s technology, but it remains very popular as an entry-level model in India. Its obituary has been written before, but the 800 has defied predictions of its demise. But changes to the regulatory environment in India could finally mean the end of the road for the 800.

Product Life Cycle of Maruti 800

1970 December 1983 1986 1987 1997 1999 2002 Contract to build a peoples car First Maruti out in the Market Air conditioner and music system are introduced First maruti 800 was exported Introduced with a new jelly bean shape Sales touch 100,000 Mark Launched a special edition of the M800

2007

Decline in Sales recorded Introduced '800 Duo' on the occasion of World Environment Day

2008 It can run on petrol as well as LPG kit April 2010 Proposed phase out from 13 major cities

Do you think Maruti 800 has reached the maturity stage?

The dynamics of the consumer marketplace have changed phenomenally in the last few years .In this never ending pursuit to meet customer demand, the manufacturers have been forced to revisit their products and deliver new and better product variants every now and then. Now, the whole marketplace thrives on better and new products ever so frequently that it becomes very difficult to garner a long standing memory of a product. However, there are a few which have an immense connect with the domain they belong to .These products are not even path breaking in the current timeframe but they continue to linger in our minds.

As is clear from the title, we are talking about the Maruti 800, the defector car for the middle class families for a long time .Maruti 800 revolutionized the auto industry in India when owning a car was a dream for many. The car was an engineering genius of its time packing good amount of features in its relatively small frame and to beat it all, a very affordable price tag. So much so, that in a

car market spoilt with choices, Maruti 800 has still managed to hold its fort for 26 long years. But, a few months from now and Maruti 800 will finally be starting its journey into the history books. The government has imposed the new BS IV norms (equivalent of EURO IV) and the car manufacturers will be allowed to sell only EURO IV compliant vehicles in the four metros and the 9 major cities including Bangalore, Hyderabad, Pune, Ahmedabad, Agra and Surat. There were talks about M 800 being retired from 11 cities a few months back but it is indeed going to happen now. The folks at Maruti have decided not to upgrade the current EURO III compliant M-800 to EURO IV and as a result of that, have decided to retire M-800.Maruti 800 has also suffered a steady decline in sales over the last few years and a considerable amount of competition has come from its own in house Maruti Alto which seems to be much in tune with the times in terms of technology and aesthetics .So, it might be a wise decision to retire the Maruti 800 in phases. What strategic will you suggest to keep Maruti 800 the market leader?

Maruti 800 has truly been the car that made India drive .I still get nostalgic recalling that most of the cars that I saw on road during my childhood were indeed dominated by Maruti 800.Everything from the product features ,price, marketing seemed perfectly connected to India and this is one thing I totally feel M 800 managed to stay on the road for 26 years and still counting. The Maruti 800 has been Maruti Suzukis flagship model until the Alto entered the motoring scene. The M800 has revolutionised the Indian car industry. It is said that we are not going to see this iconic Indian car in the metros. Why does not Maruti Suzuki replace the engine of the Maruti 800 according to the EURO IV norms and bring some innovation and relaunched a new version? so that M 800 can sustain its leadership Because However, I wonder if M 800s retirement will make it even easier for the path breaking ,super affordable Tata Nano.Nano has altered the affordability factor for cars by a few notches and with M 800 phasing out, its pricing will beat other car variants fair and square. Nano might see a boost in sales since Alto is priced significantly higher then M800 , hence the buyer will be more than willing to opt for a Nano now, so to keep Maruti 800 is the market with the view of competitors action is important in

the present scenario if the company has to target the middle class consumer of Indian Automobile Industry