Submitted by Kartikey Anupam Priyanka Rani Reshma Rutvick

In

1982, Government of India entered into a joint venture with Suzuki motor corporation of Japan.(P-103,para-1st)
was established at Gurgaon in Haryana.

Plant

corporation of Japan n 1982, Government of India entered into a joint venture with Suzuki motor corporation of Japan n 1982, Government of India entered into a joint venture with Suzuki motor corporation of Japan

 Its

launched the first model M-800 on December14, 1983.

Suzuki

takes over control in Maruti Udyog by hiking its stake in the company from 50% to 54.2%, Maruti Udyog becomes the subsidiary of Suzuki in 2002. (P-105, Para 1st).

In

2004- 05, its share of the indian passenger vehicle market dropped to below 50%.(P-100, para, 1st).

 In

may 2005, Maruti launched its hatch-back model swift to compete with foreign players like Hyundai, ford, fiat.. declared Best selling car in India in 2004.

Alto

Launched 2599 offer,

2499 &Teacher plus schemes to increase sales of M-800.(P-108,Para 4th).

Quality Advantage

A Buying experiencer like no others Quality service across 1036 cities Low cost maintenance

Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India. Maruti Suzuki has a sales network of 307 states and a workforce of 6000 trained personnel. In a study conducted, Maruti scored the highest across all the 7 parameters they had. It is in the economy segment that the affordability of spares is most competitive and it is here where maruti shines.

A segment is unattractive when there are actual or potential substitute product. In pre liberalization they had competition with premier automobiles, Hindustan motors only.(P-103 para 1). Liberalization in 1991 resulted in coming of general motors, Honda, Daewoo, and Korean giant Hyundai. Competition in certain segments is very high e.g., small and mid-car segment. The recent past Volkswagen, Honda, Ford has also given competition to the premium car.

MuL faced stiff competition in india with the entry of foreign players. Like Hyundai , Ford, Mitsubishi. (p-105,para -1). Due to these new entrants Mul , Incured a loss of Rs 2,694 million As now in current market all the major players are there but some are still expected to come.

Mul has three compact car model alto,wagonR,and zen competing with hyndai santro,tata indica and fiat palio. At same time gm were planning to launch chevy spark and chevy aveo.

competition is likely to intensify in the SUV segment in India following the launch of new models at competitive prices.

Some of substitute products for maruti models are 1. Alto-chevy spark,i10,tata nano. 2. swift(launched in 2005)-i20,beat,polo,punto etc 3. Sx4-verna,honda city,etc

The growing bargaining power of the suppliers has low.

There are a large number of automobile component suppliers whose switching costs are very high. (P- 101, Para 2nd). ( because of limited stock of diesel variants).

The bargaining power of buyers for Maruti is high.

Increasing awareness among consumers. They have many homogenous number of choice.

Buyers have high expectation.

Pricing Strategies:

Maruti very well understood the mindset of the Indian customers. This made them go for the psychology pricing. As part of this they have cut down the price of M800 from 2,25000 to 1,99,000. This made the price come below 2 Lakh category. From the year 2004 the discount phenomenon was introduced.
Model M800 Alto Wagon R Zen Discount (Rupees) 8,000 5,200 21,800 23,500

Promotion strategy
MUL introduced various promotional offers to gain back their market share. Some of the offers are: Change your life Campaign Television campaigns 2599 offer Maruti True Value

Maruthi s consistent performance in studies has resulted in a steady increase in the percentage of its customers who say they intend to remain loyal to the brand. Mul s WagonR and zen were ranked 1st and 3rd in the compact segment. Mul s profit after tax stood at rs 8536 million for the period april 2004 to march2005,as compared to the losses of rs 2694 million for april 2000 to march 2001.