Maruti A Subsidiary Of Suzuki Motor Corporation Marketing Essay

Maruti, a subordinate of Suzuki Motor Corporation of Japan, is India ‘s largest rider auto shaper, accounting for a market portion of approx. 55 % in the domestic rider auto market. It has a portfolio of 13 trade names, including Maruti 800, Omni, Zen Estillo, SX4, Alto, WagonR, Gypsy, the mid-size Swift Dzire, the MPV Versa, Swift and Luxury SUV Grand Vitara, covering about all the sections in the rider auto market in India. Maruti has been the leader in the Indian auto market for more than two decennaries. It boasts of the widest client range in India with a strong gross revenues web of 600 mercantile establishments spread over 393 towns and metropoliss. The company besides provides the most extended care support to clients through 2628 workshops spread over 1200 towns and metropoliss. Its fabrication workss, located in Gurgaon and Manesar, have installed capacities of 3.5 lac and 1.7 lac units per annum severally.



Maruti was the unchallenged leader in the car utility-car section sector, commanding about 84 % of the market boulder clay 1998. With increasing competition from local participants like Telco, Hindustan Motors, Mahindra & A ; Mahindra and foreign participants like Daewoo, PAL, Toyota, Ford, Mitsubishi, GM, the whole car industry construction in India has changed in the last seven old ages and resulted in the worsening net incomes and market portion for Maruti. At the same clip the Indian authorities permitted foreign auto manufacturers to put in the car sector and hold bulk bets.

In the aftermath of its decreasing net incomes and loss of market portion, Maruti initiated strategic responses to get by with India ‘s liberalisation procedure and began to redesign itself to confront competition in the Indian market. When Maruti commanded the largest market portion, concern focal point was to “ sell what we produce ” . The earlier focal point of the whole organisation was “ production, production and production ” but now the focal point has shifted to “ selling and client focal point ” . This can be observed from the alterations in mission statement of the organisation:

1984: “ Fuel efficient vehicle with latest engineering ” .

1987: “ Leader in domestic market and be among planetary participants in the abroad market ” .

1997: “ Making client delectation and stockholders wealth ” .

Focus on client attention has become a cardinal component for Maruti. Increasing Maruti service Stationss with the range of one Maruti service station every 25 kilometer on a main road. To increase its market portion, Maruti launched new auto theoretical accounts, concentrated on selling and institutional gross revenues. Institutional gross revenues, which presently contributes to 7-8 % of Maruti ‘s entire gross revenues. Cost decrease and increasing operating efficiency were another redesign variable. Cost decrease is being achieved by making an indigenization degree of 85-90 per centum for all the theoretical accounts. This would salvage foreign currency and besides stabilise monetary values that fluctuate with exchange rates. However, alteration in the mentality was non every bit fast as required by the market. Maruti planned to cut down costs, increase productiveness, quality and upgrade its engineering ( Euro I & A ; II, MPFI ) . In add-on, it followed a high volume production of about 400,000 vehicles / twelvemonth, which entailed a smooth relationship between the workers and the directors.








( 1 ) The Quality Advantage

( 2 ) A Buying Experience Like No Other

( 3 ) Quality Service Across 1036 Cities

( 4 ) One Stop Shop

( 5 ) The Low Cost Maintenance Advantage

( 6 ) Lowest Cost of Ownership

( 7 ) Technological Advantage


OA The following menace Maruti faces is the turning competition in compact autos. Companies like Toyota, Ford, Honda and Fiat are be aftering to come out with little section autos in close future.Ford is establishing Focus and Fiesta, GM is establishing Aveo in 2006, Chevrolet is establishing Spark in 2006, Hyundai is establishing its new compact auto in 2006, Honda is establishing Jazz in 2006, GM is has reduced monetary values of its Corsa, Fiat is coming up with Panda and new Fiat Palio, Skoda is establishing Fabia. All this will present a major menace to Maruti leading in compact autos.

OA Rise in gasoline monetary values and turning popularity of other utility fuels like CNG will be another menace to Maruti.


Whenever a trade name has grown old or its gross revenues start dunking Maruti makes some face lifts in the theoretical accounts. Other alterations have been made from clip to clip based on market responses or consumer feedbacks or the rival moves. Here are the certain alterations observed in different theoretical accounts of Maruti.

Omni has been given a major face lift in footings of insides and outsides two months back. A new discrepancy called Omni Cargo, which has been positioned as a vehicle for transporting lading and meant for little bargainers. It has received a really good response from market. A discrepancy with LPG is having a really good response from clients who look for low cost of running.

Versa monetary values have been slashed and right now the lowest discrepancy starts at 3.3 lacs. They decreased the engine power from 1600cc to 1300cc and modified it once more sing consumers perceptual experience. This was a consequence of intensive study done all across the state sing the consumer perceptual experience of Versa.

Esteem has gone through three face lifts. A new expression last twelvemonth has helped hike up the declining gross revenues of Esteem.

Baleno was launched in 1999 at 7.2 lacs. In 2002 they slashed monetary values to 6.4 lacs. In 2003 they launched a lower discrepancy as Baleno LXi at 5.46 lacs. This was to cut down the monetary value and attract clients.

Wagon-R was perceived as dull boxy auto when it was launched. This made it a large failure on launch. Then farther alterations in engine to increase public presentation and a face lift in the signifier of sporty looking grills on the roof. Now it ‘s of the most successful theoretical accounts in Maruti stable.

Zen has been modified four times till day of the month. They had come up with a limited period discrepancy called Zen Classic. That was limited period offer to hike short term gross revenues.

Maruti 800 has so far been facelifted two times. Once it came with MPFi engineering and other clip it came up with alterations in forepart grill, caput visible radiation, rear visible radiations and with unit of ammunition curves all about.

The latest releases of limited edition of Maruti Suzuki Swift, A-Star and Splash says that Maruti repositings itself by let go ofing new fashionable theoretical accounts of autos into the market and see to that it ‘s market portions does n’t come down. It enables the clients to choose any of their little autos by supplying them a broad choice scope and beats its rivals with monetary value advantage.


Maruti Suzuki chiefly targets at B section and A2 section as their theoretical accounts of little autos chiefly lies in the monetary value scope of those sections. Maruti Suzuki is the most sure trade name by the rural section every bit good and they chiefly target them along with in-between category and lower income category. When we consider the recent theoretical accounts of Maruti Suzuki like Swift, A-Star, Ritz etc all of them are targeted for A2 and B section. So therefore Maruti Suzuki marks middle and lower category.


-HYUNDAI, The New Millenium Leader

Hyundai Motor Company has ever been the taking pioneer of the Korean automotive industry, and is endeavoring to develop vehicles to vie with universe ‘s major car shapers. Our committedness to be the best car manufacturer is non merely reflected in our merchandises, but besides in our related activities. For case, Hyundai Motor Company was chosen as the exclusive functionary spouse for the 2002 FIFA World Cup in the car class.

The subject for the ’99 Tokyo Motor Show, “ HYUNDAI, The New Millenium Leader ” represents the spirit of Hyundai Motor Company ; Hyundai being able to accommodate to the drastic alterations of the universe ‘s car industry and constructing a solid foundation to take the car induatry into the new millenium. For such grounds, Hyundai acquired Kia Motor Company and go oning to seel out and maximise every concern chance from this acquisition.

On show are some of the latest editions of Hyundai Motor Company ‘s line-up. The Trajet, our new European-style mini-van, is doing its expansive introduction at the 99 Tokyo Motor Show.

The Santa Fe is Hyundai ‘s bran-new SUV, which will be launched following twelvemonth. With the add-on of the two new vehicles, Hyundai has achieved a stronger place in set uping a full scope of vehicles from saloons to MPV ‘s and SUV ‘s.

Tiburon is one of the universe ‘s top athleticss coupes, which has gained more and more repute as a winning race auto in assorted World Rally Championships like Portugal, Greece, New Zealand, and China mass meetings. Besides the Sonata, which has been the best merchandising saloon for 10 old ages in Korea, is Hyundai ‘s international flagship auto.

Hyundai Motor Company ‘s base shows for comfort, manner and amusement. Hyundai ‘s base gives high quality feeling by utilizing silver colour and wooden stuff harmoniously, and adds vernal and energetic feeling by integrating 2002 FIFA World Cup related images into the full base. At Hyundai ‘s base, you will happen yourself basking the universe ‘s quality autos in a modern and elegant base.

HYUNDAI Selling Scheme: –

Hyundai took the bull by the horns in this bear market and scored large. It used behavioural cleavage to place what was maintaining chances from purchasing and so developed a scheme that made it easier for clients to portion with their hard-earned dollars. In every market alteration, even a downswing, there is an chance to utilize the power of behavioural cleavage to do your merchandise or service stand out.

Define Segment

Hyundai determined that the fright of losing one ‘s occupation was a high barrier forestalling prospective purchasers from buying a auto.

After specifying the section, the company developed and aligned gross revenues and selling schemes to make this new section. By aiming chances concerned about occupation security, Hyundai broadened its audience and increased the figure of clients who considered its autos.

David Zuchowski, vice-president of national gross revenues for Hyundai noted in a New York Times article, “ It does n’t count how many million dollars you put in discounts, or what APR you give them. If people are worried about their occupation, they do n’t truly care and they ‘re merely non traveling to acquire off the fencing. ”

So how did Hyundai motivate clients to travel off the fencing?

Develop Strategy to Target Segment

Following, Hyundai developed a scheme to ease the frights of this section: The company ‘s Assurance Program releases clients from auto payments without harming their recognition mark.

As Advertising Age editor Jonah Bloom wrote, “ right at that place, is an honest-to-god large selling thought… . Hyundai confronts the recession head-on and does something touchable to undertake its effects. ”

Create Messages

Trade messages to turn to the specific concerns of your clients.

Hyundai advertisement used consecutive talk that resonated with clients: “ We ‘re presenting Hyundai Assurance to demo you the religion we have in you. Right now, finance or rent any new Hyundai, and if in the following twelvemonth you lose your income we ‘ll allow you return it. That ‘s the Hyundai Assurance. ”


With some creativeness, about all new cleavages and schemes can be tested either in a little geographic country or among a choice group of clients. The thoughts is to verify that your scheme is on path before you launch a new plan countrywide. Making so gives you an chance to do corrections to your messages every bit good as validate the scheme to do certain your investing will pay off.

Decision: –

HYUNDAI uses famous persons to market their merchandises and that ‘s how they will link to the clients where as MARUTI connects to the clients by taking the cultural facets of the population in INDIA and they say “ INDIA COMES HOME ON MARUTI SUZUKI ” . On the other manus Hyundai uses their technological promotions from theoretical account to pattern and Maruti purposes at Developing newer fashionable theoretical accounts.