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Marketing plan: Maruti Suzuki in India

Paper Type: Free Essay Subject: Marketing
Wordcount: 4118 words Published: 4th May 2017

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Maruti Udyog Ltd. Has a collaboration with Suzuki Motor Corporation and by this collaboration Company is stated as Maruti Suzuki Ltd. In India . The Company Maruti Udyog is of india while Suzuki motor corporation is of japan. It is Maruti Udyog Ltd. To be honoured with ISO 9000:2000 certificate in the history of automobile industry in world. The Company takes mere14 hours to make a car. Maruti Udyog limited came into existence in feb 1981 through Act of Parliament and License and joint venture agreement were signed with Suzuki Motor Corporation in oct 1983 with Suzuki having 26% of the equity. Suzuki agreed with agreement because of it’s past record and ability of selling small cars all over the world.Later Suzuki Aquired 40% equity as there was an option in the agreement in 1987 and after to 50% in 1992 which turn Maruti into a non government Company.

Maruti Suzuki has the highest car volume in Asia and also outside Japan and korea. Maruti Suzuki is one of the most successful joint venture , although Mauti Suzuki generated profits on an income of Rs.92.5 billion.

The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a mutual ability to manufacture over a 1.2 million (1,200,000) passenger car units yearly. 

Maruti Suzuki offers 14 brands and more than 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 and also CNG variants of most of the model for sake of greener planet. Revenue of Maruti Suzuki is growing tremendously over the years.

Maruti Suzuki Achievement

India’s Most Trusted Brand 2010: The Economic times 

Maruti Suzuki is certified India’s highly Trusted Brand in Automobile Sector by India’s chief Business newspaper The Economic Times.

JD Power Customer Service Index Award 2000-2010: India

The major success in eleven years was the award for highest appreciation by the consumer. Again in 2009-10, for the tenth successive time, Maruti Suzuki was ranked the highest in J.D. Power Asia Pacific 2010 India Customer Service Index (CSI) study

Maruti Suzuki Mission and Objective


To develop into Major brand in the Indian Automobile industry, developing customer pleasure and Wealth for Share holder’s and A pride of India .


There are three declared objective of Maruti Suzuki

1) Modernization of the Indian Automobile Industry

2) Manufacture of fuel efficient vehicles to protect scarce resources

3) Production of Large number of motor vehicles.


Product which I will going to have a marketing plan on is Maruti Suzuki 800 which is a declining product for the company. 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 cricket world cup. After Hindustan Motors Legend Ambassador car, it is Maruti Suzuki 800 which is the second longest Indian production car. Since I’s launch on 1984 Maruti Suzuki 800 was under through numerous cosmetic and internal changes from the old carburetor engine to the MPFI engine (Multi Point Fuel Injection),from four gears to five, countless color options later. As we can see from below chart that sales figure of Maruti Suzuki 800 sales are hitting very low. Due to massive sale of Maruti Suzuki 800 in Indian market the term Maruti is commonly used to refer it’s compact car and Maruti Suzuki is associated with Indian culture.

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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 changed what 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 which delivers good fuel economy and most of all Company should add safety features in it which this car is lacking for several years. As company objective is to Modernization of Indian automobile industry by these steps company can help to achieve that. As Maruti Suzuki is available with LPG kit Company should take a step forward and introduce CNG variant which is more Eco friendly , more secure and capable of giving more mileage as compare it with LPG variant , that will also help company to attain their objective which is Production of fuel efficient vehicles and also customer delight.


Maruti Suzuki should implement on extended warranty for Maruti 800 and also road side assistance which will also acquire their Mission which is Customer delight.


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 who’s 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. Also Maruti Suzuki should bring out exciting schemes Eg-Festive discount, Free limited price asseccories, Attractive interest rates, Easy to finance etc.


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, Bangalore Etc.

Maruti Suzuki is having 600 car sales outlet which covers 393 cities and has a tie up with Adani group to export 200,000 units through Mnudra port Gujarat and suggested place strategy should be 400 new car outlets , 1200 new authorised service stations and tie up with other distributors for export.


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 gain through advertisement enhances product image in public eyes.

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.

Tv Ad- Television advertisement is the most efficient way of catching the mind of the prospective buyers by continuously seeing TV commercial Prospective buyer make an impression for the product and give preference to it


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


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. 

Maruti Suzuki as we know manufacture a car in 14 hours which shows employees dedication to work, They are dedicated because of motivation. Maruti Suzuki excels in this department and they make sure that their employees are motivated regularly and also gets good working environment because of their heavy work flow. This is essential as company has to meet it’s supply with that of demand which is achieved with proper trained employees and sophisticated machinery which Maruti Suzuki has taken into consideration precisely which make them competitive against their rivals.


Process of Maruti Suzuki makes sures that services given to their customer are precise and on time which is an advantage to the company as Maruti Suzuki mission objective is Customer delight which is achieved by giving best possible services to their customer. There are no delays or waiting period for Maruti Suzuki 800 delivery . Maruti Suzuki makes sure that every color and variant are available to every dealer and also provide genuine and affordable accessories to the customer. Company also makes sure that customer receiving valued after sales services.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. Maruti Suzuki should offer timely delivery of their cars without any default and also make arrangement for insurance facilitation department in their respective dealers which will give customer one stop place for all their hassle free claims and renew their car insurance for existing customer; Basically company has such type of insurance agent available but point should be to make separate department for that for quick and hassle free claims. This will make customer believe that the service given by company is at par and they will recommend other prospective buyer. Company should also focus on car service department where car regular service is done. Company should keep a proper check on service department and car service should be done on time and should be worth money the customer has paid. As service of a car take time so arrangement should be there for customer to get relaxed and entertainment facility should also be there like-Television or video games for childrens and reugular updated should be given to the customer about their vechile.

SWOT Analysis




Fuel efficient

Japanese collaboration


Outdated Technology

Value for money

Product Quality

Product Design


Concentration on Government Employees

Increase product quality

Product awareness in rural india

Big Market(Domestic and abroad)



Lack of experience in Foreign Market


Maruti Suzuki is a prominent name in Indian automobile industry and has over 2.5 million of brand loyal customers only for Maruti Suzuki 800 . Maruti Suzuki shares a good brand image. All the cars which Maruti Suzuki builds are fuel efficient cars because it reflect their objective which is to make fuel efficient cars whether it is big car like- Maruti Suzuki SX4 or Grand Vitara they have a good fuel economy moreover these cars are available in CNG or LPG model also which are cheap to run and of Maruti Suzuki 800 it is second fuel efficient car on Indian roads which is a advantage for the product. Price of Maruti Suzuki 800 is also very cheap which is under 3000 pounds or 2 lakhs INR. As Maruti has a joint venture with Suzuki which is a Japanese automobile company has vast experience in automobile products and has it’s own state of art Research department which is a positive sign for the Product like Maruti Suzuki 800 which is decline stage .Company can use it’s strength to overcome Maruti Suzuki 800 to decline.

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The main reason why sales of Maruti Suzuki 800 are going down because outdated technology which company is using in their product . As the strength was Japanese collaboration so they should take advantage of that because Japanese Automobile sector produces more advance technology than Indian automobile. There is not enough changes done in engine department -old carburetor engine to the MPFI engine (Multi Point Fuel Injection),from four gears to five has been changes given to Maruti Suzuki 800 since it’s launch which was way back in1984.As it’s a cheap car company has compromised it with quality with poor plastic interior and lack of safety features this was also a drawback for Maruti Suzuki 800. It’s a value for money car as having a good brand image it shares a great re-sale value car but after the launch of TATA NANO tables turn around ; The price at which TATA NANO delivers features were exceptional.Product design is also the weakness of Maruti Suzuki 800 as nothing much has been changed since it’s launch . Company can overcome these weakness by simple steps like- Introducing Advance technology with the help of Suzuki engineers, Engine should be upgraded with keeping in mind fuel efficiency of the engine as this is the main objective of the company , Product should be re designed with some updated looks which matches cars of this era.


There are various opportunity for this product to succeed as mentioned above in chart Maruti Suzuki should concentrate on Government employees basically there are 18.7 million government employees in india and rest population is around 1020 million about as this segment is rarely taken into consideration by any other automobile sector in india and this sector is full of prospective buyers by giving them special interest rates as government of india also intiate special interest rate for government employees.Company should really focus on Government sector as this sector include many prospective buyers; Also india is full of vast cultures and company should focus on each variety of people living in india and there is a big foreign market and company should focus on developing changes to Maruti Suzuki 800 according to global market and product quality should be increased like using good quality plastic interiors , Plush ride quality and fuel efficient yet advanced engine on their Maruti Suzuki 800 model to compete with foreign automobile makers.


Threats of Maruti Suzuki are Competition and foreign market automobile sector. As Competition is becoming tough because of foreign market entering into Indian market giving tough competition to Maruti Suzuki 800 over Quality , Ride and handling and top most features at affordable price. Maruti Suzuki should plan their product design and technology to overcome these threats company should plan their strategies according to Foreign automobile invasion. Foreign market is another reason to be taken care off as Maruti Suzuki has less experience of foreign market they can overcome this problem by studying in what country the buyer are looking for and what foreign market buyer common demand is this will help them to enter in foreign market with flying colours as this market is full of prospective buyers and Maruti Suzuki can gain their sales figure of their Declining product which is Maruti Suzuki 800.


Rivalry Among Existing Firms

Maruti Suzuki in foreign market is to compete with established automobile industry like-Volkswagen, Hyundai, ford etc. which have strong brand image in foreign market and enjoys millions of customers across global; So Maruti Suzuki strategy will be to develop Maruti 800 with high quality and features should be of global standards to compete with it’s rival. Target customer who are using small cars and promote Maruti Suzuki 800 with fuel efficiency and value for economy car. In Domestic Market, Existing firm will be TATA automobile which Maruti Suzuki has to look upon it is the only automobile firm having product which compete with Maruti Suzuki 800.

Threats of New Entrants

There is no major threats in new entrants as most of the company’s are focusing on small executive class which is not the category of Maruti Suzuki 800 , the only threat is TATA NANO

Bargaining Power of Suppliers

It’s very less as there is very large size of unserved market, As this is a very competitive market and no one supplier can set price. Maruti Suzuki takes different parts from different suppliers like Head lights, Tail light , their glasses and also wiring are supplied by Sun Beam or Minda. Maruti Suzuki has multiple suppliers for same product which redeem the bargaining power of suppliers. In fact, Supplier has to supply their product to company on time with assured quality.

Bargaining Power of Buyers

Currently there are 2 players in the market and Maruti Suzuki is one of them and other is TATA. So Maruti Suzuki can focus on TATA strategies and their development so they can make changes or alter their plans to overcome their rivals which make them to dominate market and bargaining power of buyer will be minimized. As Maruti Suzuki shares large number of loyal customers who have eye closed faith on them because of company consistent delivery of reliable products at cheaper price with product dedicated to fuel efficiency which basically Indian customer are looking for.

Threats of Substitutes

For the price range of below 3000 pound for Maruti Suzuki 800 there is only one substitute which is TATA product NANO which is cheaper then Maruti Suzuki 800 and people are switching over TATA NANO which is a threat for the company which has better product at cheap rate then Maruti Suzuki also as India’s economy is booming drastically so the purchasing power of prospective buyer is increasing and many buyers shifting to another segment for status symbol which Maruti Suzuki 800 does not offer. So there is a threat for substitutes for Maruti Suzuki.


From my point of view, Maruti Suzuki 800 is in declining mode due to number of circumstances-

1) Entrance of New technology

2) Competitors

3) Lack of Strategies in Maruti Suzuki Management Department

Above mention points are the main reason that product is in declining stage ; Almost same engine is remained in Maruti Suzuki 800 from it’s introduction and nothing has been dramaticall changed and by new technology entrance in Indian market the product automatically become outdated Eg- introduction of NEW Generation Engine in india which were KAPPA or K series engines which delivers better power and more fuel economy than Maruti Suzuki 800 old technology engine and Competitors gained advantage of that by installing these new engines and developing better product than Maruti Suzuki 800 by there Research and development center. Small car sector is the largest profit earning sector of automobile industry and each and every company is making car cheapest to keep in the competition not only making cheap cars but giving better features and making car more value for money to the consumer. Eg- Competitor like TATA which have recently launched TATA NANO car in Indian market, TATA has developed their own engine for NANO which lighter and less in displacement than Maruti Suzuki 800 but gives more power and much more fuel economy tham Maruti Suzuki 800 engine that means engine does not feel stress when Air conditioner is on which 800 suffers ,NANO also got power steering, alloy wheels, cabin space is 40% more than it’s rival Maruti 800 and above all less price tag. I strongly believe that there is also a issue with Maruti Suzuki strategies as company is not focusing on their existing product which is 800 and that’s why sales figures are going down. Company should know the demand of the consumer in small car segment, what are their expectation from this segment and then prepare strategies according to the market and also have knowledge about their competitors and about development of new technology.

I have 1 years of experience as an Research Associate at a Pharmaceutical company and I have a very little experience in the field of marketing. Coming from a complete different background the learning of marketing concepts and implementing them to a real world scenario has been a true learning experience. During the project I was also able to explore the marketing strategies and it’s analysis to help product flourish even if the product is in declining stage.

My assumption was that at the start of the module I will have a good theoretical understanding of the marketing concepts. But I was completely wrong. I believe the way the assignment is designed is worth commending. I have not only learned the theoretical concepts of marketing but I am also able to apply them to a practical situation. I feel very confident that I can now take up any product and design a suitable marketing strategy using my knowledge and experience.

The assignment provided me a tremendous learning opportunity to apply the theoretical knowledge I have gained during the marketing course. I have always considered that there are 4 Ps but by this module I was introduced to 7 Ps and by implementing them now I understand concept of 7 Ps and also as a theoretical tool to understand the various aspects of a product. However during my designing phase of the project, where I had to come up with a existing declining product, it became quite clear that how one can use the 7 Ps effectively to design a Marketing strategy. During the process I have gone through a phenomenal change in understanding the concept of 7Ps and applying it practically to a business situation. For instance earlier my idea of a promotion was just advertising. As I progressed in the assignment it became very clear that advertising is only one part of the complete promotion process. There are many different ways from which product can be promoted and can generate buzz and increase the awareness about a product.

The learning and knowledge which I acquired was above my expectation by applying marketing mix and analyzing marketing plan the idea which I know about marketing management was very small as I discovered that to deeply understand marketing, deep analysis of the situation of the product is must as it will explore new opportunities. I also realized that hoe SWOT analysis is important for an organisation because it gives organisation a better idea of its product.

One of my big misconceptions about product placement was cleared during the assignment. I always associated product placement in a hypermarket scenario like Tesco where different products were displayed using various presentation styles. However I came to know that it is visual merchandising and not product placement. Product placement is more is a form of advertisement, where branded or services are placed in a context usually devoid of ads, such as movies, the story line of television shows, or news programs.

Market mix is another aspect which I have thoroughly enjoyed during the assignment. My understanding of marketing mix was limited to only 4 P’s and that too theoretical knowledge about them. The module has opened a whole new dimension in my approach to Marketing mix and its implementation in real scenario.

The assignment assumes that the student is aware of all the marketing concepts and is well equipped theoretically to carry out the project. Without the marketing knowledge I do not think one would be able to do complete justice to the assignment. Therefore it is imperative that one learns or understands all the theory before starting the assignment. They definitely aid the student with the relevant tools to complete the assignment by heading in the right direction.


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