BHAI PARMANAD INSTITUTE OF BUSINESS STUDIES, SHAKAR PUR, NEW DELHI BACHELORS OF BUSINESS ADMINISTRATION (BATCH 2009-2012) Minor

Project Report BPSM, BBA-302

SUBMITTED TO PALLAV KAUSHIK LECTURER, BBA DEPT BPIBS

SUBMITTED BY SOURABH SHARMA(019) GAURI CHATURVEDI(023)

OBJECTIVE OF THE PROJECT

My main objective of the study on this project is to demonstrate the marketing strategies of Maruti Suzuki India Ltd.

And to arrive at my findings, I have done little study:

SWOT Analysis. Vision and Mission.

Maruti Udyog Limited: Vision, Mission and SWOT analysis

Maruti Udyog limited

1) Companys Portfolio:
Maruti Udyog Limited (MUL), INDIAs finest and Asias largest automobile industry was established in 1981 by an act of parliament.MUL, the first automobile company in the world to be honored with an ISO 9000:2000 certificate, is a subsidiary of Suzuki Motor Corp (holds a 54% equity stake). The Government of India remains a significant equity stakeholder (10%).With its early mover advantage in Indian market; Maruti retains a dominant Market share despite increasing competition.

2) Business Portfolio:
The Group's principal activity is to manufacture, purchase and sale of Motor Vehicles and Spare parts. The other activities of the Group comprises of facilitation of Pre-Owned Car Sales, Fleet Management and Car Financing. The Group also provides services like framing of customized car policies, economical leasing of cars, maintenance management, registration and insurance management, emergency assistance and accident management. The product range includes ten basic models with more than 50 variants. The Group has operations in over 100 cities with more than 150 outlets and also exports cars to other countries.

Vision:
Visions of any company are those values on which company works. As the MUL is started by Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on the other hand Suzukis participation ensures not only need of the profit, but of the need of maximum profit. The only way for this Noras dilemma of selecting principals for companys working vision ,was to maximize profit and reducing cost by maximizing output and sales Hence MUL declared its Vision asThe Leader in the Indian Automobile Industry, Creating Customer Delight1 and Shareholder's Wealth2; eventually become a pride of India Customer Delight1 is making sure that performance, after sales service and customer support are best and beyond expectation. Shareholders wealth2 is the prime concern for running business smoothly.MUL knows this and understands customer is king, he can change the fortune of any company, hence goes companys brand line COUNT ON US!

Mission:
Mission is the statement of an organizations purpose, what it want to accomplish in the larger environment and its goals which are specific, realistic and motivating. Missions are described over visions and visions demand certain objectives. The main objectives/Missions of MUL are: - Modernization of the Indian Automobile Industry. - Developing cars faster and selling them for less. - Production of fuel-efficient vehicles to conserve scarce resources. - Production of large number of motor vehicles which was necessary for economic growth. - Market Penetration, Market Development Similarly Product Development and Diversification. - Partner relationship management, Value chain, Value delivery network.

SWOT ANALYSIS: Consists of analysis of internal environment (Strength and weakness) and external environments (Opportunity and Threat).

STERNGHTHS:

Contemporary technology. Japanese Management practices (that had captured Japan over USA to the status of top Auto manufacturing country in the world)Early mover advantages. Recruitment is done in very tedious manner ensuring talent and best professionals, working culture, after sale services, distribution, diversification, R&D.

WEAKNESS:

Still depends upon SUZUKI COPORATION, Japan For tech. support, 10% components are manufactured outside India. Though MUL has launched luxury cars as well its still considered as poor mans brand. Diversification is not supported with all India presence of Manufacturing Units. Bureaucracy, Technological disadvantages, Decades of isolation, inertia and subservience to the whims of government bureaucrats have made MUL unaccustomed to international standards or keen competition.

OPPURTUNITY:

First company to roll out suitably designed cars before 2008 as per Govt.s Proposal of new ethanol (renewable) mixed fuel. Other companys lacks economy of scale, so market is still open. Importing new technology is controlled by Govt. so there is plenty of untapped market and with increase in Income scale, Demand is rising

THREAT:

Numbers of new Technology driven players and manufactures are in market. Govt. reducing support and cutting down the Gas supply quota.

RESEARCH METHODOLOGY

The nature of the project work has been exploratory as no hypothesis, is taken to be tested. Though the conclusions drawn could be taken as the hypothesis and further tested by the research work undertaken in the relevant field. The reason for choosing the exploratory research design is the fact the project repor t has been primarily based upon the secondary sources of data and whose authenticity could be assured of. The reluctance of the company's personnel in parting with much of information led the project report to be based substantially on the secondary source of data. The sources of data used in data collection are the following:

Secondary sources

Information was collected from secondary sources such as public libraries, newspapers, business magazines. Beside these the use of Internet was also made in collecting relevant information. The data collected from the above mentioned sources has been adequately structured and used at appropriate places in the report. This particular way of data collection was used because of its low cost (except data collected through surfing the internet) and less time consumption.

RESPONSIBILITY OF TEAM MEMBERS

INTRODUCTION

First Indian automobile company to join the million clubs Invests Rs 1,700 Crore in new facility to expand capacity by 2.5 lakh units

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

This project report is entirely based on the market strategies which the Maruti Suzuki company adapts to survive in the Indian market to achieve a sustainable competitive advantage and what are the tools which the company use to sustain in the market which also makes it Indias market leader when it comes to the automobile sector and how the company is standing that much strongly in the Indian market as a leader and the most trustworthy company.

My main objective of the study on this project is to demonstrate the marketing strategies of Maruti Suzuki India Ltd. And to arrive at my findings, I have done little study: SWOT Analysis Vision and Mission

Marketing is important in building customer relationships as well as creating product awareness. Without an effective marketing strategy you stand to not gain customers or lose customers which equates to revenue loss and no growth. For a company to grow, marketing is the vehicle.

INTRODUCTION TO THE COMPANY

Maruti Suzuki India Limited commonly referred to as Maruti, is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It has a market share of 44.9% of the Indian passenger car market as of March 2011.Maruti Suzuki offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift, Wagon-R, Estillo and

sedans DZire, SX4, in the 'C' segment Maruti Eeco and Sports Utility vehicle Grand Vitara. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India, and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. The company's headquarters are located in New Delhi. In February 2012, the company sold its 10th million vehicles in India. Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.2 million (1,200,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013. The company offers a wide range of cars across different segments. It offers 15 brands and over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One Million cars in a year. Maruti Suzuki has employee strength over 8,500 (as at end March 2011)

In 2010-11, the company sold over 1.27 Mnvehicles including 1,38,266units of exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indian passenger car market. Maruti Suzuki's revenue has grown consistently over the years.

Year

Net Sales

Year

Net Sales

2005-06 2007-08 2009-10

1,20,034 1,78,603 3,01,198

2006-07 2008-09 2010-11

1,45,922 2,03,583 3,61,282

(Rupees in millions)

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzukis sequity to 40%, which it exercised in 1987.Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices. Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Marutis one of the most successful automobile joint ventures, and has made profits every year since inception till2000- 01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss. VISION The leader in the India Automobile Industry, Creating Customer Delight and Shareholders Wealth A pride of India. MISSION To provide maximum value for money to their customers through continuous improvement of products and services.

SALES ANALYSIS

The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers) first in customer satisfaction among all car makers in India for ten years in a row in annual survey. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on 14 December 1983.And finally in 2009-10, the nation's number one car manufacturer joined a select club of global automobile makers, when it became the first automobile company in India to produce one million (10 lakh) cars in a year.

MARKET SHARE

HISTORY AND EVOLUTION

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 50 per cent of the domestic car market. Maruti Udyog Limited was incorporated in 1981 under the provisions of Indian Companies Act 1956 and the government of India selected Suzuki Motor Corporation as the joint venture partner for the company. In 1982 a JV was signed between Government of India and Suzuki Motor Corporation. It was in 1983 that the Indias first affordable car, Maruti 800, a 796 cc hatch back was launched as the company went into production in a record time of 13 month. More than half the number of cars sold in India wears a Maruti Suzuki badge. They are a subsidiary of Suzuki Motor Corporation Japan. The company offer full range of cars- from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. Since inception, the company has produced and sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and other countries. They were born as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, its product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is their mission to motorize India. MSILs parent company, Suzuki Motor Corporation, has been a global leader in mini and compact cars for three decades. Suzuki's technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. The same characteristics make their cars extremely relevant to Indian customers and Indian conditions. Product quality, safety and cost consciousness are embedded into their manufacturing process, which they have inherited from their parent company. Right from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy 'smaller, fewer, lighter, shorter and neater' From the Japanese work culture they imbibed simple practices like an open office, a common uniform and common canteen for everyone from the Managing Director to the workman, daily morning exercise, and quality circle teams.

Maruti Suzuki exports entry-level models across the globe to over 100 countries and the focus has been to identify new markets. Some important markets include Latin America, Africa and South East Asia. Interestingly with a brand new offering A-star, Maruti Suzuki is ready to take on European markets. Maruti Suzuki sold 53,024 units during 2007-08. This is the highest ever export volume in a year for the company, and marked a growth of 35 per cent over the previous year. Maruti Suzuki has exported over 552,000 units cumulatively with about 280,000 units to Europe and Israel. Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India. The Gurgaon facility - Maruti Suzuki's facility in Gurgoan houses three fully integrated plants. While the three plants have a total installed capacity of 350,000 cars per year, several productivity improvements or shop floor Kaizens over the years have enabled the company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities. The Manesar facility - Its Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated in February 2007. At present the plant rolls out World Strategic Models Swift, A-star & SX4 and DZire. The plant has several in-built systems and mechanisms. Diesel Engine Plant- Suzuki Powertrain India Limited - Suzuki Powertrain India Limited the diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only plant designed to produce world class diesel engine and transmissions for cars. The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL. This facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be scaled up to 300,000 engines/annum by 2010.

PRODUCTS

Red Bull Maruti Suzuki Swift

Maruti Omni

India's Corps of Military Police personnel patrolling the Wagah border crossing in the Punjab in a Maruti Gypsy.

Maruti Alto

Maruti Suzuki Swift

Maruti Suzuki Zen Estilo

Suzuki SX4

7th Generation Suzuki Alto is sold as Maruti Suzuki A-Star in India.

Maruti Suzuki Swift DZire

Suzuki Splash is sold as Maruti Suzuki Ritz in India.

Current sales of automobiles

1. 800 (Launched 1983) 2. Omni (Launched 1984) 3. Gypsy (launched 1985) 4. WagonR (Launched 1999) 5. Alto (Launched 2000) 6. Swift (Launched 2005) 7. Estilo (Launched 2009) 8. SX4 (Launched 2007) 9. Swift DZire (Launched 2008) 10. A-star (Launched 2008) 11. Ritz (Launched 2009) 12. Eeco (Launched 2010) 13. Alto K10 (Launched 2010)

Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande.[16] In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car.

Maruti XA Alpha will be launched in the year 2014

Imported

Suzuki Grand Vitara

1. Grand Vitara (Launched 2007) 2. Kizashi (Launched 2011)

Discontinued car models

1. 2. 3. 4. 5. 6. 7. 1000 (19901994) Zen (19932006) Esteem (19942008) Baleno (19992007) Zen Estilo (20062009) Versa (20012010) Grand Vitara XL7 (20032007)

Maruti Finance

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India.

"Maruti Finance marks the coming together of the biggest players in the car finance business. They are the benchmarks in quality and efficiency. Combined with Maruti volumes and networked dealerships, this will enable Maruti Finance to offer superior service and competitive rates in the marketplace".

STRATEGY ADOPTED BY MARUTI SUZUKI

Maruti was the first company in india which studied the consumer demand and responded to it well.

Market segment policy was adopted that targeted different type of consumers with different type of models. Maruti 800 targeted medium income group, while the deluxe model targeted to rich income group. Maruti van targeted businessmen and doctors (ambulance). The Gypsy targeted the paramilitary forces and the police. This resulted in complete control of maruti over the market. The company advertised its different products according to customers example maruti van was rechristened as omni. A special cell was made to make direct dealing of gypsy with the government and the army.

Suzuki Motor Corporation (SMC) is pursuing a world strategy designed for long-term growth. Following the launch of its acclaimed fourth world strategic model, the Splash, at the 2007 International Motor Show (LAA) in Frankfurt1 the company is developing the fifth exciting model in its strategy. It will be showing some of the forthcoming model's design themes at Auto Expo 2008 in New Delhi in the form of the Concept A-Star.

9 and 10th January, 2008 press day 11th 17th January, 2008 open to public

The forthcoming production model is an A-segment five-door hatchback reflecting a focus on world-class environmental compatibility and comfort. It will have a newly developed Euro 5compliant 1.0-litre aluminum petrol engine with C02 emissions lower than those of European competitors (target lower than 1 O9gfkm). And like the already-launched Suzuki world strategic models, it will prove that sporty and exciting performance can be enjoyed together with outstanding fuel economy. SMC attaches great importance to India. Suzuki's efforts have greatly contributed to the Indian motor industry's development and have earned Suzuki a more-than 50% share of the burgeoning Indian market for passenger cars. Having been early to recognize India's potential, it partnered with the Government of India to establish Maruti Udyog Limited (now named Maruti Suzuki India Limited, an SMC subsidiary), whose Gurgaon plant began producing cars in December 1983. Thanks to a quarter of a century of technological advances, personnel training, and adoption of superior production systems and quality standards, Maruti Suzuki India builds vehicles of world-class quality. The production model that inherits some of the design themes of the Concept A-Star will be manufactured at Maruti Suzuki India's Manesar plant, to be marketed mainly in Europe and other countries including India. The start of production is scheduled in October 2008. Substantial production for Europe is targeted to start in December 2008, followed by expansion to other markets around the world.

The new 1.0-litre aluminium engine will be produced by Maruti Suzuki India, and a manual transmission for it will be manufactured by Suzuki Power train India, an SMC subsidiary that's based beside Maruti Suzuki India's Manesar plant. Suzuki Powertrain India produces a 1.3-htre diesel engine, but SMC does not plan to use it in the new production car since the new 1 .0-litre petrol engine is environmentally superior. SMC is ready to study options for small diesel engines from Suzuki Powertrain India in future. The Concept A-Star is the first concept car in which designers from Maruti Suzuki India's research-and-development division have been involved from the initial stage for its styling. As such, it's an excellent showcase of Maruti Suzuki India's capabilities.

FINANCIAL ANALYSIS

MARUTI SUZUKI RESULTS FY10 vs FY 09 ANALYSIS AND COMPARISON

FINANCIAL PERFORMANCE :
On a Y-O-Y basis, Maruti Suzuki India Limited has performed Excellently. From the following table, we can see that SALES have registered a significant increase from Rs.20663.84 Cr to Rs.29591.52 Cr on a Y-o-Y basis. However, RAW MATERIAL COST has also increased significantly from Rs.15403.33 Cr to Rs.21988.32 Cr during the period. The NET PROFIT on an annual Basis has increased from Rs.1227.45 Cr to Rs.2624.74 Cr, registering a more than 100 percent increase. The EPS has very handsomely risen to Rs.90.85 per share of FV of Rs.5. The last year EPS was Rs.42.89,which means a more than 100 percent increase in EPS. RESERVES have gone up from Rs.9420.81 Cr to 12038.10 Cr. DIVIDEND proposed is 120 percent against 70 percent last year. The FY10 results are thus EXCELLENT by any standard. But, market price of the share has fallen to Rs.1331 after declaration of the result, presumably on the assumption that the result did not meet the EARLIER expectations of the market. Some analysts seem to be expecting a Profit increase of around 200 percent, based on the stupendous sales registered in March'2010 and earlier. This did not come true. But, this expectation appears to be unreasonable, if we take into account the increase in raw material costs like steel.

4TH QUARTER:
The 4th Quarter sales income was Rs.8280.82 Cr against the 3rd quarter sales of Rs.7372.65 Cr. But, raw material cost was Rs.6127.64 cr against Rs.5491.86 cr in the previous quarter. Hence, total expenditure in 4th Quarter was up at Rs.7536.52 cr against rs.6571.72 Cr in previous Quarter. Thus, Net profit was marginally down from Rs.687.53 Cr to Rs.656.55 Cr. On the equity of Rs.144.46 cr, the quarterly EPS comes to Rs.22.73 - against Rs.23.80 in previous quarter. Despite the increase in RAW MATERIAL COSTS, Maruti has still managed a handsome EPS of 90.95 for the full year (against a EPS of Rs.42.89 for previous year) and a quarterly EPS of Rs.22.80 for the 4th Quarter against Rs. 23.80 for the 3rd Quarter and a mere Rs.8.42 for the 4th Quarter of last year.

OPERATIONAL PERFORMANCE:
Maruti Suzuki sold a total of 10,18,365 vehicles in 2009-10. This is the first time in Indian automobile history that a car company has sold over a million units in a financial year. This included 8,70,790 units sold in the domestic market, the highest ever by the company in a fiscal. The export sales of 1,47,575 units in the year were the highest ever annual exports by the company. The total sales numbers in 2009-10 mark a growth of 29 per cent over last financial year. Maruti Suzuki's total sale in 2008-09 was 792,167 units. The export numbers in the year were led by A-star. This fuel efficient compact car clocked over 1.27 lakh export sales in the fiscal. A-star was exported across Europe including United Kingdom, France, Germany, Italy, Netherlands etc. The major non-European export markets are Algeria, Chile, Indonesia and neighboring countries. South Africa, Hong Kong, Australia and Norway were new markets where Maruti Suzuki cars were exported during the year. On March 23, 2010, Maruti Suzuki rolled out the one millionth car of the year 2009-10. This feat takes the company into a very select group of global automakers with such volumes. Maruti Suzuki is now expanding its production capacity to reach 12,50,000 units (1.25 million) by 2012. In March 2010, the company announced an investment of Rs 1,700 Crore for expansion of the production facilities by 2.5 lakh units at its Manesar plant.

MARKET PRICE PERFORMANCE:

The market price closed on 26.04.2010 at Rs.1331, which, on the EPS of 90.85 gives a P/E ratio of just 14.65, which is NOT A REASONABLE VALUATION for a STAR PERFORMER like Maruti. At a P/E of 18, the Market price comes to Rs.1635. For the present, Sentiment (of not meeting High market expectations) has driven down Maruti price. I presume, soon, Maruti price will find its justified valuations. If we consider next year performance, the forward numbers will be better than FY10 numbers, as the company is coming out with exceptional Domestic and Export sales Performance, month after month.

MARUTI CULTURE
Their employees are their greatest strength and asset. It is this underlying philosophy that has moulded their workforce into a team with common goals and objectives.

Their Employee-Management relationship is therefore characterized by:

Participative Management. Team work & Kaizen. Communication and information sharing. Open office culture for easy accessibility

To implement this philosophy, they have taken several measures like a flat organizational structure. There are only three levels of responsibilities ranging from the Board Of Directors, Division Heads to Department Heads. Other visible features of this philosophy are an open office, common uniforms (at all levels), and a common canteen for all. This structure ensures better communication and speedy decision making processes. It also creates an environment that builds trust, transparency and a sense of belonging amongst employees. 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 Organization for Standardization.

In keeping with its leadership position, Maruti supports safe driving and traffic management through mass media messages and a state-of-the 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 (True Value), lease and fleet management service for corporate (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.

MUL is a Board-managed company. Currently the directors on the Board are:

Name R C Bhargava Tsuneo Ohashi Keiichi Asai Kenichi Ayukawa Pallavi Shroff Davinder Singh Brar

Designation Chairman / Chair Person Director Director Director Director Director

Name Shinzo Nakanishi Shuji Oishi Osamu Suzuki Amal Ganguli Manvinder Singh Banga

Designation Managing Director & CEO Director Director Director Director

ANALYSIS

SWOT analysis of Maruti Suzuki Maruti Suzuki is the market leader in India and has an amazing brand equity. Maruti is known for the service it provides and is synonymous with Maruti 800 the longest running small car in India. Here is a SWOT of Maruti Suzuki, its strengths, weaknesses, opportunities and threats.

Strengths

Maruti Udyog limited (MUL) is in a leadership position in the market with a market share of 48.74

Major strength of MUL is having largest network of dealers and after sales service centers in the country.

Good promotional strategy is adopted by MUL to transfer its thoughts to the people about its products.

Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units from 7,65,533 units in the previous fiscal. It recently attained the 10million domestic sales mark.

Strong Brand Value and Loyal Customer Base are big strengths for MUL There are around 15 vehicles in Maruti Product portfolio. Has good product lines with good fuel efficiency like Maruti Swift, Diesel, Alto etc

Alto still beats the small car segment with highest number of sales MUL is the first automobile company to start second hand vehicle sales through its True-value entity.

MUL has good market share and hence its after sales service is a major revenue contributor.

Weaknesses

Low interior quality inside the cars when compared to quality players like Hyundai and other new foreign players like Volkswagen, Nissan etc.

Government intervention due to having share in MUL. Younger generations started getting a great affinity towards new foreign brands The management and the companys labor unions are not in good terms. The recent strikes of the employees have slowed down production and in turn affecting sales.

Maruti hasnt proved itself in SUV segment like other players.

Opportunities

MUL has launched its LPG version of Wagon R and it was a good move simultaneously MUL can start R&D on electric cars for a much better substitute of the fuel. Marutis cervo 600 has a huge potential in tapping the middle class segment and act as a strong threat to Nano

New DZire from Maruti will capture the market share and expected to create the same magic as Maruti Esteem(currently not available)

Export capacity of the company is giving new hopes in American and UK markets Economic growth of the country is constantly increasing and the government is working hard to increase the gdp to double digit.

Threats

MUL recently faced a decline in market share from its 50.09% to 48.09 % in the previous year(2011)

Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many small players like Volkswagen- polo. Ford has shown a considerable increase in market share due to its Figo.

Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to its respective competitors segment

China may give a good competition as they are also planning to enter into Indian car segment Launch of Hyundais H800 may result in the decline of Alto sales.

VISIONS AND CORE VALUES OF MARUTI SUZUKI INDIA LIMITED

We believe our core values drive us in every endeavour

Customer obsession Fast, Flexible and first mover Innovation and creativity Networking and Creativity Networking and partnership Openness and learning.

CONCLUSION

Maruti Udyog limited had a prime objective to meet the growing demand of a personal mode of transport, which is caused due to lack of efficient public transport system. It changed the 4Ps of marketing mix into 4Cs. Product to Customers Solution Price to Customers cost Similarly Place to Customers convenience Promotion to Customers Communications.

This enabled MUL to become Market leader. Things are now changing with LPG polices and disinvestment the real competitions has already began. The smarter will certainly will be next leader, but till then...MUL will going to the brand, on which customers will always COUNT ON.

Maruti Udyog Ltd is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue. o o o o o o o o o o o o o o Good Technology Uniform Pricing Good Strength More Coverage Area Frequent /Regular Product Launch Market Leader (with 47% share) Oriented Driven Company More Product Offering Healthy Annual Report Brand Image Maximum Dealership as compared to other brands Good Sale Service Spare parts are cheap as compared to any other brand Cheap & reliable quality.

AREAS FOR IMPOVEMENT / RECOMMENDATION

Facade/Quality of Dealership should be improve Uniform of Sales Executives Proper visiting cards should be available to the executives Mostly dealers dont have their specific website All Japanese 5s concept (Seiro, Sieton, Sciso, Seioetse, Shitsuke) should be put into practice at Dealership Maruti should regard as generous discount offers during Festival Season like Navratra, Dusshera, and Diwali to gear-up their sales Maruti should advertise in Sports because sports are increasingly cutting into the share of mass entertainment channels Maruti can start Money Bond Scheme instead of giving Cash Discount with more value. Customers eligible for an income bond, encashable after a 15year period.

BIBLOGRAPHY

1. http://www.marutisuzuki.com/vision-and-core-values.aspx 2. http://en.wikipedia.org/wiki/Maruti_Suzuki#Maruti_Finance 3. http://samaritanonline.blogspot.in/2007/07/marutivisionmission-and-swotanalysis.html 4. http://samaritanonline.blogspot.in/2007/07/marutivisionmission-and-swotanalysis.html 5. http://economictimes.indiatimes.com/maruti-suzuki-india-ltd/fromdate-/todate/frequency-daily/arc-0/prices/companyid-11890,exchangeid-50,numberofdmw30,pagenumber-1,pagesize-25.cms 6. http://wiki.answers.com/Q/What_are_the_Marketing_strategies_of_maruti_suzuki_Ind ia_ltd 7. http://www.scribd.com/doc/12881447/Maruti-Suzuki-Market-Strategy 8. http://www.marketing91.com/swot-analysis-maruti-suzuki/ 9. www.google.com 10. www.yahoo.com 11. www.maruti.com