Marketing mix for Maruti Suzuki

1851 words (7 pages) Essay in Marketing

18/05/17 Marketing Reference this

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Maruti Udyog Ltd. (MUL) is the first automobile company in the world to be honoured with an ISO 9000:2000 certificate. The company has a joint venture with Suzuki Motor Corporation of Japan. It is said that the company takes only 14 hours to make a car. 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 Suzuki’s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increasedits equity to 50% turning Maruti into a non-government ganization managed on the lines of Japanese management practices.

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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. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. 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.  

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) passenger car units annually. 

The company plans to expand its manufacturing capacity to 1.75 million by 2013. For this the company will be investing around Rs. 60 Billion (Rs 6,000 Crores) over the period till 2013. 

The company offers a wide range of cars across different segments. It offers 14 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 and Swift DZire 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 7,600 (as at end March 2010),

In 2009-10, the company sold a record 10,18,365 vehicles including 1,47,575 units of exports. With this, at the end of March 2010, Maruti Suzuki had a market share of 53.3 per cent of the Indian passenger car market (including C segment). 

Maruti Suzuki’s revenue has grown consistently over the years.

India’s Most Trusted Brand 2010: The Economic times 

Maruti Suzuki has been ranked India’s most Trusted Brand in Automobile Sector by India’s leading Business newspaper The Economic Times.

2000-2010: JD Power Customer Service Index Award – India

The biggest draw for the past eleven years has been the award for highest recognition by the customer. In 2009-10 again, for the tenth consecutive time, Maruti Suzuki ranked the highest in J.D. Power Asia Pacific 2010 India Customer Service Index (CSI) study

Maruti Suzuki

Mission statement

The leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder’s Wealth, A pride of India.

Objective

The three declared objectives of MUL are modernization of the Indian Automobile Industry, Production of fuel-efficient vehicles to conserve scarce resources, and Production of large number of motor vehicles

Product

Product which I will going to have a marketing plan on Maruti Suzuki 800 which is in declining product for the company. Maruti 800 is the second longest Indian production car, next only to another legend, Hindustan Motors’ Ambassador. The launch of this car in a way was symbolic of the euphoria and pride that India was collectively going through as a nation, initially sparked by India’s triumph at the 1983 world cup.

Marketing Mix

Product

Brand

As of now Maruti Suzuki 800 which is in declining stage , sales are declining consistently. This product was doing well for many years but now it is in declining stage because technology is step forward what Maruti Suzuki is using in Maruti 800 it’s a entry level car which means its price is cheap and lower middle class family can afford it but as competitors are launching new cars for the same or even low price with higher fuel economy than Maruti Suzuki 800 and that’s the reason this product is going down.

So they can Re-launch Maruti Suzuki 800 with visual and engine upgrades.For the past 20 years of Maruti Suzuki 800 nothing dramatically change is needed to this car which company needs to do,design is same as of early years as when it was launch minor changes are upgraded only so company can make overall changes to this car like modification in chassis , suspension setup, changes to headlight and backlight to competent with new generation cars. Interior should get new look and also which should be simple as well as elegant and most of all engine should be changed to higher capacity engine with delivers good fuel economy and most of all Company can give some safety features in it which this car lacking for several years. As company objective is to Modernization of Indian automobile industry by these steps company can help to achieve that.

Price

Price was never an issue with Maruti Suzuki as it is a cheap car to buy but from the past few year after the launch of TATA NANO whos price is lower than Maruti Suzuki 800 and gives more value for money car in its segment, Maruti Suzuki 800 era is coming down.

Company can make price competitive with TATA NANO or can give more features to the product at same price which will make their sales higher, by this step Maruti Suzuki 800 can become more value for money car in its segment

Place

As Maruti Suzuki 800 car is an entry level car so company should focus their attention to rural areas which will show their product interest in the market and they should also focus on metropolitan areas as well like Delhi, Mumbai, Banglore Etc.

Promotion

Promotion is the key aspect for the product to be successful. As Maruti Suzuki is a very familiar brand in india so following promotion activity can be followed to achieve success of the product-

Advertising-As advertising is a very cost efficient promotional method because it reaches a vast number of people at low cost per person. The visibility that product product gain through advertisement enhances product image in public eyes.

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Maruti Suzuki should launch 800 through Press release and then advertise through Ad in Television and newspaper because both are used by almost everyone which will give significant impact on promotion of Maruti Suzuki 800.

Internet

Maruti Suzuki can promote Maruti 800 through internet as more and more people are their on internet so delivery of information is very fast and internet can enables frequent and customised changes of information targeted to specific customer.

People

An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organisation wants to obtain a form of competitive advantage. 

Process

An efficient service will foster consumer loyalty and confidence in the company.

Physical Evidence

Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organisation. Physical evidence is an essential ingredient of the service mix, consumers will make perceptions based on their sight of the service provision which will have an impact on the organisations perceptual plan of the service.

SWOT Analysis

 

 

 

 

 

 

 

 

 

 

 

 

Strength

 

 

 

Weakness

 

 

 

Price-Inexpensive

 

 

Outdated Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand

 

 

 

Value for money

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel efficient

 

 

Product Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loyalty

 

 

Product Design

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Opportunity

 

 

Threats

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Innovative thinking of new product

Competition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase product quality

 

Product Image

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product awareness to public

 

 

 

 

 

 

 

 Big Market(Domestic and abroad)

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