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Product and market analysis of Maruti Suzuki

3416 words (14 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Maruti Suzuki is a leading automobile manufacturer in India and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries.

Maruti Suzuki offers 15 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara. Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki’s Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is 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 Suzuki Wagon R is a kei car first introduced in Japan in 1993, and is still in production by Suzuki. The R stands for Recreation. It is one of the first cars to use the “tall wagon or tall boy” design in which the car is designed to be unusually tall with a short bonnet and almost vertical hatchback and sides in order to maximise cabin space while staying within the kei car dimension restrictions.

The Wagon R has been the best-selling kei car in Japan since 2003;[1] and in 2008, Suzuki expected to produce its three-millionth Wagon R.[2]

It has been a profitable car for Suzuki even in the International market, mainly since introducing the car in India

Maruti Suzuki Wagon R in India

In India, Suzuki has launched Wagon R as a joint venture with Maruti and the car is known as Maruti Suzuki Wagon R. Maruti Suzuki has launched six variants of Wagon R in the Indian auto market. Four of its variants are powered by the company’s well known K series engine. This K series petrol engine is endowed with 5 speed manual transmission gearbox that helps to perform the engine very smartly without any vibrations even at high speed. The aluminum KB10 engine of Maruti is very light and produces a power of 68 PS (50 kW; 67 hp) at 6200 rpm and a torque of 90 N·m (66 lb·ft) at 3200 rpm.

This powerful engine of Maruti Wagon R is very fuel efficient and the manual transmission gearbox is also a very good performer and offers an impressive mileage of 14.4 kmpl in the city roads and 19.3 kmpl on the highways.

Rest two variants of Maruti Wagon R are powered by the Maruti F10D 1061 cc four cylinder, sixteen valve, multipoint fuel-injected engine producing 64 bhp (47.7 kW) at 6200 rpm and 84 newton-metres (62 ft·lbf) of torque at 3500 rpm. These two variants come with company fitted LPG kit.

Maruti Suzuki Wagon R Models in India[3]

Maruti Wagon R LX DUO

This is the base model of the Maruti Wagon R, packed with 1.1L petrol engine with 5 speed manual transmission gearbox. It is packed with LPG kit.

Maruti Wagon R LXI DUO

This variant is also packed with LPG kit. It offers some additional features as compared to the previous one that are door trim fabric, chrome finish in instrumental panel, silver finish in inside door handles, electronic power steering, front power windows, driver seatbelt warning lamp, etc.

Maruti Wagon R LX

This is the base model for the new Wagon R, packed with 1.0L petrol engine and 5 Speed manual transmission gearbox and many comfort features..

Maruti Wagon R LXI

This is the upgraded version of Wagon R LX with extra features like door trim fabric, chrome finish in instrumental panel, silver finish in inside door handles, electronic power steering, front power windows, driver seatbelt warning lamp, etc.

Maruti Wagon R VXI

This is the top most model with extra features like tilted steering, rear power windows, electrical ORVM, front passenger under seat tray, keyless entry, dual srs airbag (optional), ABS (optional), security system, body colored outside door handles, etc.

Maruti Wagon R VXI with ABS

This variant offers same features as “Maruti Wagon R BS IV”, additional features are airbags and ABS.

Initial launch

The Wagon-R was born out of Japanese kei-jido-sha restrictions which dictated a limited length and engine size. This boxy, tall-boy design has now completed nine years of presence on Indian roads.

Maruti’s launch of the car was ill-timed. Despite being one of the world’s first tall-boy designs (along with models from Daihatsu and Daewoo), the Wagon-R was not first-to-market in India.

The Hyundai Santro (Hyundai Atos in Europe) was the first tall-boy design to hit the Indian roads. It preceded the Maruti-Suzuki Wagon R by a two year lead. Hyundai santro is the main competitor.

[edit] Design and trim options

The car comes with a variety of trim levels. These include the LX (sans power steering), LXi (power steering) and VXi (fully loaded). The car is available with a 5-speed manual transmission and seats 4 (including the driver) comfortably.

The Wagon R’s bread-box shape did not immediately cut ice with the Indian consumer and the car saw slow sales initially.

[edit] Specifications

The car is powered by the Maruti F10D 1061 cc four cylinder, sixteen valve, multipoint fuel-injected engine producing 64 bhp (47.7 kW) at 6200 rpm and 84 newton-metres (62 ft·lbf) of torque at 3500 rpm.

The LPG version, christened DUO, was recently launched; this runs on petrol as well as on LPG. Also the internal controls have been given a more sportier look with bright metal finish.

Other features new in the Vxi (the top end manual transmission model) are Electrically adjustable outside Rearview mirrors. This is the first on any B-Segment car in India.

The latest Indian model (2010) called Wagon-R 1.0, is powered by the new, more efficient 3-cylinder 998 cc K10B engine, which can also be found on the Maruti-Suzuki A-Star, Maruti-Suzuki Estilo, and more recently the Maruti-Suzuki Alto. The engine delivers 68 PS (50 kW; 67 hp) at 6200 rpm, and 90 N·m (66 lb·ft) at 3500 rpm.

It is built on a newer platform, and claims more interior space, and new features such as an under-seat tray below the front passenger seat (top-end only)

[edit] Driving impressions

Light kerb weight (750-775 kg) makes for a nimble car with good acceleration and a top speed of 160 km/h (99 mph). The car’s fuel economy is somewhere in the range of 12 to 13 km/l (7.7 to 7.1 l/100 km) in city driving and 16 to 18 km/l (5.6 to 5.0 l/100 km) on the highway. Though the car has 13 inch wheels, the tyres are in different sizes for LXi & VXi variants. The recent launch (3rd version) in India comes with gas filled suspensions for smoother rides.[4]

The car is priced between Rs. 350,000 (LX) to Rs. 485,000 (AX).

Now the car has found a market for itself, especially among young Indian urban professionals who don’t mind its boxy slab-sided looks, but value its Maruti lineage. The car is currently among India’s second largest selling car, after Maruti Alto. Of late In sales charts it has dropped behind i10 in the last few months.

[edit] Wagon R-Wide/R+

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Wagon R+

The Wagon-R Wide, introduced in 1997, is a slightly larger car, exceeding the kei car specifications, with larger 1.0 (both turbo and naturally aspirated versions) and 1.3 litre engines – this is what was sold as the Wagon R+ in the European market (also introduced in the same year). The only other tall wagon style car sold in Europe around the time of its introduction was the Daihatsu Move

Business Mission:

The company’s mission is to provide maximum value of money to their customers through continuous innovative techniques of product and services. It has a network of 391 sales outlet across 230 cities all over India and covers 1,113 cities and towns. The change in strategy and developing effective marketing communications was their highlights.

What is the mission statement for Maruti Udyog Ltd? The leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder’s Wealth

India’s most favourite family car just got bigger, spacious and more stylish with Maruti Suzuki, the country’s number one automobile manufacturer, launching an all-new WagonR – titled endearingly ‘the blue eyed boy’.

The new WagonR comes with a new, powerful and highly fuel efficient 998 cc K-series engine, delivering a high fuel efficiency of 18.9 kmpl. It also comes with a new transmission with cable-type gearshift, and a superior suspension technology. Thanks to a brand-new platform, the overall length of the new Wagon R is now increased to 3,595 mm (an increase of 75 mm) with a wheelbase of 2,400 mm – the longest in its class. The new WagonR is also wider and taller; the new dimensions are 1,495 mm and 1,700 mm, respectively.

– Spirit of social service and human respect By following the above philosophy, the Group enjoys an excellent corporate image amongst business community, banks, financial institutions, and governmental circles. The market price of Group companies’ shares is the most prominent reflection of this confidence. This section provides corporate overview of Maruti Suzuki India, its vision, quality systems and technology, along with a brief historical perspective. It also offers a link to Suzuki’s global site, information about export operations and details of the company’s social initiatives in the field of road safety, safe driving, Driving Training Institute and environment care. Additionally, this section contains information for those seeking career and business opportunities with Maruti.

Maruti Suzuki is far a dominant player in Indian Automobile Industry which has been enjoying right from the great olden days in India. It would face a slew of Marketing initiatives and new models from global car brands, being brought to Indian market as the year unfolds, which would be a threat to new entrants in industry.

It satisfies the following customer needs:

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An all-new platform

 

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Bold and dynamic exteriors

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New dimensions: Larger with increased cabin space

 

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Large, sweeping headlamp with blue tint

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New Powerful BSIV & E10 compliant K-series engine

 

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Sloping character of roof and upright rear lend a dynamic stance

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Fuel efficiency of 18.9 kmpl

 

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Larger and wider wheels

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Best-in-class front and rear seats

 

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Superior functionality

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Superior drivability

 

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Powerful class leading air-conditioning

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New transmission with cable type gearshift mechanism

 

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New 2-tone interior colour theme for premium look

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Dynamic 3-point suspension for superior ride and handling

 

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Integrated audio system with speakers on 4 doors

 

 

 

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7-colour spectrum

External Marketing Audit:

Economic Forces:

There is a large competition of car manufacturers in India and approximately more than two lakhs buyers. Despite the fact that there are major players like Hyundai, Tata motors and others, the WagonR has found 8.8 lakh homes in India and 55,00,000 worldwide.

Customers buy the car on the basis of aspiration, income, level of lifestyle and other backgrounds like easy availability of finance options. There are stable economic policies. There are economic incentives by local state government. Lower duties and taxes available. There is a huge domestic demand.

The new Wagon R is costing Rs 3.28 lakhs for the LX variant. The LXi variant would cost Rs 3.57 lakhs; VXi would cost Rs 3.81 lakhs and the VXi version with ABS plus Airbags would cost Rs 4.12 lakhs. It’s competitors such as Hyundai Santro, Ford Figo, Chevrolet Beat and others are available in a price range of about Rs 3,40,000 to Rs 3,60,000 ex-showroom Delhi.

In March 2010 had a sales of 11,000 units. Since its launch, the WagonR has found 8.8 lakh homes in India and 55,00,000 worldwide.

The company has invested Rs 290 crore in upgrading the car. Introduction of other variants in different fuel modes will be decided depending upon response from the customers. The company is going to sell the car in the domestic market and later in the neighbouring nations.

(The Economic Times News by Industry)

The WagonR had been on the roads for very long until the new model came along. The recently launched new WagonR has been doing very well on the Indian roads. Compared to its predecessor, the new WagonR is brawnier, more muscular, more macho.

The car has a sparkling shine in its blue eyes. The roof has is slopy and the fenders are all-new. The massive wheels are big in size adding to the athletic character of the new car. The car is a result of the old one undergoing some changes in its exteriors. The headlamp cluster is also new.

The doors have become larger to help occupants easily get in and out of the new car and there’s chrome accentuation everywhere. There is better rear visibility too. Similarly, the new Maruti Wagon R also has a new grille and spanking new front bumpers. The inside has an all-new design and the plastic quality has been enhanced.

The engine has a 1-litre K10B engine capable of delivering 60 bhp. The 98cc 3-cylinder engine is coupled with a 5-speed manual transmission.

The all-new integrated audio with AUX-in and 6-band graphic equalizer in the new Maruti WagonR takes entertainment on the drive to a whole new level. In the interiors there’s silver accentuation all around. There is the new tilt steering-wheel with an ergonomic gear knob and a new speedometer design that let the driver drive comfortably with ease. The cable type transmission and new frame type suspension offer great stability on any type of roads. The front suspension has been worked upon very well this time to ensure better handling.

(Article Source: http://EzineArticles.com/?expert=Deepthi_Alvares)

Technological:

Four lakhs pass out every year

Credible local suppliers of high quality components

India emerging as an automobile hub in automobile manufacturing industry

Ecological factors:

India automotive regulations are closely aligned to worlds standardson emission and safety

Proximity to major export market

Legal factors:

Weighted tax deduction upto 150% on in house R & D activities

Relatively high import duties

SWOT Analysis:

Strengths:

It has a bigger name in the market

Established distribution and after sales network

Understanding of the Indian market

Ability to design products with different features

It has a Brand Image

It has a experience of the latest technology

It has a trust of people

It is a market leader for more than a decade

It has a great leadership chain in the market

It has a better after sales effect

The cars have a low maintenance cost.

Weaknesses:

It has a lack of experience in the foreign market.

It is comparatively new to diesel cars.

People resistant to upper segment models

Heavy import tariff on fully built imported models

The exports of the company are not good

There are less diesel models in the market as compared to others

The global image is not big

Opportunities

Increased purchasing power of middle class family

Government subsidies

Tax benefits

Prospective buyers form two-wheeler segments

Great opportunities to be global

Introduction of more diesel vehicles

Opportunity to grow bigger by entering into bigger car markets

Great opportunity to be the king in the marketing every stage of industry

Threats:

Foreign companies entering the market, so a bigger threat for multi-natinal companies

Competition from second hand cars

Threats from chinese manufacturers

To the market share, as big players are coming in the industry

Very few diesel cars in the market

Strategy:

The company’s strategy is to capture rural market and to hire the women who are belonging to the local community through which their product can reach the local consumers. This also helps to create awareness among confined consumers.

Technology is becoming more and more advanced everyday. The country’s largest carmaker Maruti Suzuki India relaunched WagonR also known as “The Blue-Eyed Boy”. In line with Maruti’s strategy the new WagonR is powered by a K-Series engine (k10B), the same unit which powers the A-Star and generates 68PS. The new WagonR will have Bharat Stage IV emission norms and will be produced from the company’s Gurgaon facility.

“This new launch of WagonR is important to Maruti Suzuki for many reasons. It demonstrates the growing research and development capability of the company.

The company claims a fuel efficiency of 18.9 kmpl. In addition, the car also sports a new suspension and transmission. Maruti also claims that its all new Heating Ventillation and Air Conditioning (HVAC) unit provides a temperature reduction of four degrees than the existing model.

Overall looks have been tweaked to give the car a more modern and a curvier look. Based on a new platform the overall length has increased and the wheelbase has been lengthened by 40mm to 2,400mm, thereby allowing for increased space and better space management within the car. The safety enhancements have been implemented in the form of ABS, airbags and fog lamps, these are limited only to the top variant.

The WagonR was first introduced in India in 2001 and took some time to find favour among buyers due to its non-conventional design for that time. The car was at time powered by a 1061cc engine producing 64bhp. In 2006, Maruti gave the car a facelift including a new nose job. In the same year Maruti also launched the Wagon R Duo which could run on LPG apart from petrol.

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