Dissertation Project Report

(Project Semester VI Jan –June, 2021)

Marketing and Sales Strategy Of

Maruti Suzuki India Limited

Submitted by:

Under the Guidance of Faculty Dissertation

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 DECLARATION

I hereby declare that the project work entitled Marketing and Strategy Of
Maruti Suzuki India Limited is an authentic record of my own work carried out
for the award of degree

Signature of Student:
Name of Student:

Date:
 PREFACE

Research work constitutes the back bone of any management education

program. A management graduate has to do the research quite frequently during
the entire life span. The idea this research has conceived as a part of the project

This work ” To study what are strategies adopted by MARUTI” has been done
to check the effectiveness are these strategies and know what is effective
promotion strategy of MARUTI and find out the exporting planning for Maruti
Cars. I will be extremely satisfied if the effort is appreciated.
ACKNOWLEDGEMENT
 EXECUTIVE SUMMARY

Maruti Suzuki India Limited is a holding company engaged in the manufacturing,

purchasing and selling of motor vehicles, components and spare parts of four
wheeler cars. It was established in February, 1981, and production started in 1983.

The objective of the study is to know the present status of Maruti Suzuki India
Limited in India. I used both primary and secondary data for the study of
“Marketing Strategy of Maruti Suzuki India Limited”. Primary data have been
collected through in-depth interviews, questionnaires and regular survey of parking
area of Gurgaon Manufacturing Plant. Secondary data have been collected with the
help of websites, National and international journals, magazines and newspapers.

In this study the marketing strategy of Maruti Suzuki India Limited is based on the
marketing mix, the PEST Analysis, the SWOT Analysis and the BCG Matrix. The
study shows that the marketing strategy used by Maruti Suzuki India Limited is
good and appropriate to sustain the present competitive scenario. One thing is
important to keep close eyes on different types of threats and remove the
weaknesses which are mentioned in SWOT Analysis.
 TABLE OF CONTENTS

Serial No Description Page no.

Preface 03
Acknowledgement 04
Executive Summary 05
Chapter 1 Introduction 07-37
I. Company Profile 08
II. Evolution 09
III. Maruti Suzuki - Business Model 11
IV. Products of Maruti Suzuki 12
V. Maruti Suzuki – Future Plan 34
VI. Major functional area of Maruti Suzuki 35
Chapter 2 Methodology 38-49
I. Research Methodology 39
II. Problem Definition 39
III. Research finding 41
IV. Research Problem 41
V. Objective of the study 42
VI. Marketing Strategy of MSIL 42
VII. Sale’s Strategy of MSIL 46
Chapter 3 Data Analysis and Interpretation 50-65
1-7. Charts & Graphs 51-61
8. SWOT Analysis of MSIL 62
9. PEST Analysis of MSIL 63
10. The BCG matrix of MSIL 64
Chapter 4 Conclusion 66-67
Chapter 5 Recommendation and Suggestion 68-69
Bibliography & References 70
Annexure 71
Chapter 1

Introduction
 I. Company Profile

Maruti Suzuki India Limited is a holding company. The Company is engaged in

the manufacture, purchase and sale of motor vehicles, components and spare parts
(automobiles). The other activities of the Company comprise facilitation of pre-
owned car sales, fleet management and car financing.

Its geographical segments include the domestic segment, which includes sales to
customers located in India, and the overseas segment, which includes sales to
customers located outside India. The Company's product portfolio includes Alto
800, Alto K10, Wagon R, Celerio, Ritz, Swift, DZire, Ertiga, Omni, Eeco, Gypsy,
Ciaz, etc.

Its service offerings include Maruti Finance, True Value, Maruti Genuine Parts,
Maruti Genuine Accessories, Maruti Suzuki Auto Card and Maruti Driving School.
It has approximately five plants, located in Palam Gurgaon Road, Gurgaon,
Haryana, and at Manesar Industrial Town, Gurgaon, Haryana, with an installed
capacity of over 1.5 million vehicles per year.

(i) Gurgaon Manufacturing Plant - Gurgaon Manufacturing Plant has three fully
integrated manufacturing plants and is spread over 300 acres (approx 1.2 Km2).
This plant also manufactures 2,40,000 K- Series engines per year. The Gurgaon
Manufacturing Plant manufactures the- Alto 800, Wagon R, Ertiga, S-cross, Vitara
Brezza, Ignis and Eeco.

(ii) Manesar Manufacturing Plant – Manesar Manufacturing Plant was

inaugurated in February, 2007 and is spread over 600 acres (approx. 2.4 Km 2).
Initially it had a production capacity of 1,00,000 Vehicles per year but this was
increased to 3,00,000 per year in October, 2008 and again increased to 5,50,000
Vehicles in March 2014. The Manesar Manufacturing Plant produces the – Alto
800, Alto K10, Swift, Ciaz, Baleno, and Celerio.
(iii) Gujarat Manufacturing Plant – Gujarat Manufacturing Plant was
inaugurated in February 2017. The plant current production capacity is 2,
50,000 Vehicles per year. But the new plan is to increase the production capacity
of this plant up to 7, 50,000 Vehicles per year by 2020.

II. Evolution

Maruti’s history of evolution can be examined in four phases:

Two phases during pre-liberalization period (1983-86, 1986-1992) And two phases
during post-liberalization period (1992-97, 1997- 2002), followed by the full
privatization of Maruti in June 2003 with the launch of an initial public offering
(IPO).The first phase started when Maruti rolled out its first car in December 1983.
During the initial years Maruti had 883 employees, a capital of Rs. 607 mn and
profit of Rs. 17 mn without any tax obligation. From such a modest start the
company in just about a decade (beginning of second phase in 1992) had turned
itself into an automobile giant capturing about 80% of the market share in India.

Employees grew to 2000 (end of first phase 1986), 3900 (end of second phase
1992) and 5700 in 1999. The profit after tax increased From Rs 18.67 mn in 1984
to Rs. 6854.54 mn in 1998 but started declining during 1997- 2001.

During the pre-liberalization period (1983-1992) a major source of Maruti’s

strength was the wholehearted willingness of the Government of India to subscribe
to Suzuki’s technology and the principles and practices of Japanese management.
Large number of Indian managers, supervisors and workers were regularly sent to
the Suzuki plants in Japan for training. Batches of Japanese personnel came over to

Maruti to train, supervise and manage. Maruti’s style of management was

essentially to follow Japanese management practices.

The Path to Success for Maruti was as follows:

 I. Teamwork and recognition that each employee’s future growth and
prosperity is totally dependent on the company’s growth and prosperity.
II. Strict work discipline for individuals and the organization.
III. Constant efforts to increase the productivity of labour and capital.
IV. Steady improvements in quality and reduction in costs.
V. Customer orientation.
VI. Long-term objectives and policies with the confidence to realize the goals.
VII. Respect of law, ethics and human beings. The “path to success” translated
into practices that Maruti’s culture approximated from the Japanese
management practices.
III. Maruti Suzuki - Business Model

Maruti Suzuki's product range extends from entry level small cars like Alto 800,
Alto K10 to the luxury sedan Ciaz. Other activities include facilitation of pre-
owned car sales fleet management, car financing. Its Business Segments are
divided into : Operating Income from sales of cars and Interests from Investments.

 Maruti Suzuki offers 17 models of cars.

 Company focuses on catering to the needs of almost all the segments from
the middle class to high class through wide range of products.
IV. Products of Maruti Suzuki
Model which is current in production line :

Model Production Image Outlet

Wagon R 1999–present Arena

Alto 2000–present Arena

Swift 2005–present Arena

Ertiga 2012–present Arena

Celerio 2014–present Arena

 Ciaz 2014–present NEXA

Baleno 2015–present NEXA

S-Cross 2015–present NEXA

Vitara Brezza 2016–present Arena

Dzire 2017–present Arena

Ignis 2017–present NEXA

XL6 2019–present NEXA

 S-Presso 2019–present Arena

1. Maruti Suzuki Wagon R

The Maruti Suzuki Wagon R has built a formidable reputation for itself as a
sensible, spacious, efficient and reasonably priced city hatchback. The third-gen
Wagon R takes the story forward. Maruti Suzuki Wagon R engine options include
a 1.0-litre, three-cylinder petrol unit and a more powerful 1.2-litre four-cylinder
petrol. Both engines can be had with manual and AMT auto gearboxes. The
Wagon R 1.0 is also available with a factory-fit CNG kit.
 2. Maruti Suzuki Alto

The evergreen Maruti Suzuki Alto 800 received a significant update and has
dropped the ‘800’ from its name in the process. In addition to the exterior and
interior revisions, the refreshed Maruti Alto is now compliant with India’s latest
safety standards. Its 796cc engine has also been made BS-VI emission norms-
ready, ensuring the Alto will remain on sale for a good few more years to come.
The diminutive Alto is available in petrol and CNG versions but there's no
automatic gearbox option. One among the most affordable cars on sale in India, the
Alto offers Maruti’s peace-of-mind ownership experience for relatively little
money.
 3. Maruti Suzuki Swift

Arguably, India’s most-loved car, the Swift is also the model that changed Maruti
Suzuki’s image forever. Now in its third generation, the Swift has grown in size
and seemingly, so has its popularity – the hatch having become a permanent fixture
on the best-sellers list. The Swift’s appeal has also widened after the introduction
of the automatic transmission options. With Maruti having discontinued diesels for
BS6, the Maruti Suzuki Swift is now available only in petrol-manual and petrol-
AMT forms, and for 2021 gets a mildly updated face, dual-tone colour options and
a new 1.2-litre DualJet petrol engine with 90hp.
 4. Maruti Suzuki Ertiga

The second-generation Maruti Suzuki Ertiga is a surprisingly competent seven-seat

MPV that offers much by way of cabin room and practicality – all at a reasonable
price. Sold from Maruti's Arena outlets, the Ertiga can be had in petrol-manual,
petrol-auto and diesel-manual versions. Buyers interested in a more premium
experience also have the option of the six-seat Maruti Suzuki XL6.
 5. Maruti Suzuki Celerio

The Maruti Suzuki Celerio is the model that introduced the Indian car-buying
public at large to the concept of AMT. But the gearbox was just one of many
factors that helped the sensible Celerio click and go on to become one of India’s
best-selling cars. The Maruti hatchback is available in petrol-manual, petrol-AMT
and CNG-manual forms. A two-cylinder diesel-powered Celerio was also available
in the past.
 6. Maruti Suzuki Ciaz

The Ciaz is Maruti Suzuki’s smart and sensible mid-sized sedan. A popular model,
the Ciaz was updated in 2018 with revised styling, more features and a more
powerful mild-hybrid petrol engine. Following the discontinuation of diesel engine
versions, the Ciaz range now only comprises petrol-manual and petrol-automatic
options. The Ciaz is exclusively sold from Maruti Suzuki’s Nexa retail network.
 7. Maruti Suzuki Baleno

In brief, the Baleno is Maruti Suzuki’s largest hatchback. The model retails from
Maruti’s premium Nexa outlets and is available with a choice of petrol and mild-
hybrid petrol engines. Manual gearboxes are standard fitment, though a petrol-
CVT automatic gearbox combo is an option too. In addition to an exterior and
equipment upgrade earlier in 2019, the Maruti Baleno petrol engines have also
been upgraded to BS6 spec.
 8. Maruti Suzuki S-Cross

The Maruti Suzuki S-Cross is a crossover that has the tough job of competing with
mid-sized SUVs. Following a tepid response to the original model, Maruti updated
the S-Cross with a more imposing front-end. The restyle seems to have done the
trick, as sales have picked up since. There’s only one powertrain on offer now – a
1.5-litre petrol mild-hybrid that is available with a 5-speed manual gearbox and a
4-speed automatic. The S-Cross is sold exclusively from Maruti’s premium Nexa
outlets.
 9. Maruti Suzuki Vitara Brezza

The Brezza in its name may mean 'breeze' but the Maruti Suzuki Vitara Brezza
actually took the market by storm. The compact SUV has been a hit from day one.
2020's facelift brings in mildly refreshed styling but marks a major change under
the bonnet. The Brezza's 1.3-litre diesel engine has made way for a BS6-compliant
1.5-litre petrol unit. Now a petrol-only model, the Vitara Brezza is available with
5-speed manual and 4-speed torque converter auto transmission options. Curiously,
Suzuki's efficiency-enhancing SHVS mild-hybrid tech is only part of the package
on the automatic version of the Brezza. Commendably, the Vitara Brezza has been
rated 4 stars by Global NCAP on adult occupant protection.

The Maruti Suzuki Vitara Brezza rivals the Hyundai Venue, Tata Nexon, Mahindra
XUV300 and Ford EcoSport.
 10. Maruti Suzuki Dzire

Now in its third generation, the Maruti Suzuki Dzire is easily the most popular
compact sedan in India. Class-leading cabin space and features as well as a well-
proportioned design in addition to the peace of mind of buying a Maruti sure seem
to have worked in the car’s favour. The Maruti Suzuki Dzire is a petrol-only model
and can be had with either a manual transmission or an AMT auto.
 11. Maruti Suzuki Ignis

The Ignis is a Maruti Suzuki hatchback like no other. Funky and fresh, the Ignis is
also a model that’s polarising in look. Formerly also available with a diesel engine,
the Ignis is now sold in petrol-manual and petrol-AMT forms. It holds the
distinction of being the most affordable car to be sold from Maruti Suzuki’s
premium Nexa network.
 12. Maruti Suzuki XL6

The Maruti XL6 is a premium derivative of the Ertiga MPV. The '6' in the name is
there to emphasise that this is a pure six-seater with captain's chairs taking the
place of the Ertiga's middle row bench. Revised styling and added features also
make the XL6 a very different proposition to the Ertiga. The XL6 is only available
with a petrol-electric hybrid engine that can be had with manual and automatic
gearbox options. In line with its premium positioning, the XL6 retails from
Maruti's Nexa showroom network.
 13. Maruti Suzuki S-Presso

Maruti Suzuki might describe the S-Presso as a mini SUV but the car is best
thought of as a high-riding budget hatchback. The S-Presso is available with a 1.0-
litre petrol engine and can be had with a 5-speed manual and AMT automatic
gearbox options. The S-Presso retails from Maruti’s Arena network.
 14. Maruti Suzuki Eeco

The utilitarian Maruti Suzuki Eeco is among the most affordable ways to transport
five or more people and their luggage. It is basic transportation and it should only
be seen as such. The Eeco is available in petrol and CNG versions and can be had
in five- and seven-seat configurations. 2019's update has added mandatory safety
essentials such as a driver airbag and ABS.
 15. Maruti Suzuki Wagon R EV (upcoming)

Maruti Suzuki has gone public with plans to launch affordable electric cars in
India, and the Wagon R EV will be the first of the type from the carmaker. While
the Wagon R EV launch is only scheduled for October 2020, Maruti has deployed
a fleet of test cars to gather data for the development of the India-specific model.
By extension, the final product might be very different in look and features to the
test cars that have been spotted on Indian roads. The Wagon R's typical ‘tall boy’
shape is, however, almost a certainty.

The upcoming Maruti Wagon R EV will feature standard AC charging that will
take about 7hr to replenish the battery pack. Also expected is DC fast-charging that
will allow juicing up the battery to around 80 percent in under an hour. A real-
world driving range of around 130km is also expected.
 16. Maruti Suzuki Jimny (upcoming)

A long wheelbase version of the Jimny has been spied testing for the first time,
suggesting that the India-spec 5-door model is also in development.

The India-spec model is likely to be offered with a 1.5-litre petrol engine with the
choice of a 5-speed manual and a 4-speed automatic. Its output would likely
remain the same at 105PS and 138Nm. With Maruti working on bringing back its
1.5-litre diesel engine in the BS6 era, it could be an option for the Jimny too.
Maruti will likely offer a 4x2 drivetrain on the India-spec Jimny.

It will go up against the recently launched second-gen Mahindra Thar and the
upcoming second-gen Force Gurkha.
 Model which is discontinued from production line:

Model Released Discontinued Image

800 1983 2014

Omni 1984 2019

Gypsy E 1985 2000

Gypsy King 1985 2017

1000 1990 2000

 Zen 1993 2003

Esteem 1994 2010

Baleno 1999 2007

Baleno
2000 2003
Altura

Alto 2000 2012

Versa 2001 2010

 Grand
Vitara XL7 2003 2007
(imported)

Grand
Vitara 2007 2015
(imported)

Zen Estilo 2007 2013

SX4 2007 2014

A-star 2008 2014

Swift Dzire 2008 2017

 Ritz 2008 2016

Alto K10 2010 2020

Kizashi
2011 2014
(imported)
V. Maruti Suzuki – Future Plan
In an alliance with Toyota, Maruti Suzuki will be targeting the Hyundai Creta
space with a midsized SUV in 2022, and this vehicle will be based on the current
Brezza architecture. A C-segment MPV in 2023 is also planned, and both vehicles
are likely to be produced at Toyota's factory in Bidadi.

Unlike the re-badged Baleno, Ciaz and Ertiga, which will be shared by Maruti and
Toyota in India till 2022, the SUV and MPV under development are likely to have
distinct characteristics or differentiation to ensure that both companies gain from
India’s growing preference for utility vehicles.

“With over a dozen SUVs planned by its rivals, Maruti Suzuki knows it has to
have competitive offerings to retain its 50% overall share. The exit from diesel
makes compact UVs a challenge, but a 1.5-litre diesel engine is not yet ruled out,”
said one of four executives aware of Maruti’s plans. “Plus, Maruti will be relying
on the localised hybrid solutions from Toyota to spruce up its future portfolio.”

The utility vehicle segment is expected to overtake the humble hatchback segment
in India, as an increasing number of buyers prefer the tall and high-seating SUVs
and MPVs that cost as low as Rs 5 lakh and as high as Rs 1 crore. According to
vehicle forecasting firm IHS Markit, utility vehicle sales will close 2019 at 38%, a
tad behind the hatchback segment, before overtaking the latter in 2020. The share
of entry-car or mini-car segment, once Maruti's mainstay, today accounts for just
10% of the overall market as against 25% share it enjoyed 5-7 years ago.

Apart from bringing in the petrol versions of Vitara Brezza and S-Cross, Maruti
created an entrylevel SUV with S-presso. Maruti expects a significant number of
its Swift, Dzire, Ciaz, and Ertiga buyers to eventually upgrade to a bigger SUV
and MPV.
VI. Major functional area of Maruti Suzuki

1) Marketing

This is important functional area of Maruti Suzuki. Marketing is the simple process
of winning customers for product and services. It can be approach by different
marketing strategy. Maruti focus on rural market, plants to double outlets. The
company’s vision & core values are “we believe our core values drive us in every
Endeavour” they have earn reputation from the customers and their employees.
Maruti launch new WagonR with K Series engine. It is more powerful and has
higher fuel efficiency than other cars,
2) Finance

This is another major functional area which, Maruti Suzuki finances marks coming
together of the largest players in the automobile finance business. They are
believed in the benchmarks in quality as well as efficiency. Maruti volumes and
networked dealerships with combined they will offer Maruti finance’s superior
service and competitive rates in the marketplace.
3) Insurance:

This is the major function of Maruti which can protect to the customers by giving
insurance. Maruti launch this area in 2002 with the help of National Insurance
Company, New India Assurance, Bajaj Allianz and Royal Sundaram. According to
the 2005 report company were able to sell more than two million insurance
policies.
Chapter 2

Methodology
 I. Research Methodology

Research methodology simply refers to the practical “how” of any given piece of
research. More specifically, it’s about how a researcher systematically designs a
study to ensure valid and reliable results that address the research aims and
objectives.

For example, how did the researcher go about deciding:

What data to collect (and what data to ignore)
Who to collect it from (in research, this is called “sampling design”)
How to collect it (this is called “data collection methods”)
How to analyze it (this is called “data analysis methods”)

Research is an academic activity and as such, the term should be used in a

technical sense. It comprises defining and as such, the term should be used in a
technical sense. It comprises defining and redefining problems, formulating
hypothesis or suggested solution: collecting, organizing and evaluating data
making deduction and conclusion to determine whether they fit the formulating
hypothesis.

II. Problem Definition

Maruti Suzuki India Ltd, the country’s largest carmaker, will face challenges in
defending its control of half of the domestic market over the next decade because
of various industry disruptions and intensifying competition, said a top executive
at its parent Suzuki Motor Corp.

In addition to subdued sales amid an economic slowdown, the entry of Hyundai

Motor India Ltd, the second-largest carmaker, in the compact sport-utility vehicle
segment with the Venue model and diminishing consumer preference for diesel
engine products, has hit Maruti’s sales and financials in the past year.
Going forward, new emission, safety and fuel efficiency related regulations will
make cars more expensive, which is likely to have an adverse impact on
vehicle sales in India.

“It’s a challenge. Globally, one company has never been able to get 50% share in
one country. The Indian market is very special to us and we will try to keep the
50% share, but there are varied challenges. General Motors in the US has around
16% market share and same is the case with Volkswagen in Europe. But I will try
to keep the 50% market share (in India)," Toshihiro Suzuki, president, Suzuki told
reporters on the sidelines of the Tokyo Motor Show.

Maruti Suzuki has witnessed a sharp fall in wholesales, or factory dispatches, this
fiscal year through March. This led to a decline in its market share to 49.76% in
the fiscal first half from 52.1% a year earlier.

Wholesale dispatches fell 27% year-on-year to 663,522 units in the April to

September period. Consequently, the company reduced production for eight
consecutive months until September.

Maruti’s financial well-being is essential for Suzuki, since the Indian unit
contributes more than 50% of the parent’s revenue and net profit.

Recently, the Hamamatsu-based company cut its net sales forecast by 10.3% to
3,500 billion yen and net profit guidance by 30% to 140 billion yen, for the
current fiscal year, on account of production loss in Japan and a sharp slowdown
in sales in its single-biggest market of India.

Suzuki said the Indian market is posing tough conditions currently but is expected
to recover shortly. He, however, sounded apprehensive on the possibility of
adoption of electric vehicles in India in the near future.

“For electrification of vehicles, conditions in Indian market are tough because

electric power supply is not in a good condition in India," he said, referring to
insufficient and erratic power supply across the country. “Hybrid is a good solution
for the Indian market."
Wholesale dispatches of passenger vehicles slumped 24% year-on-year in
September, the eleventh straight month of such decline, reflecting the slowdown in
the wider economy.

III. Research finding

The stakeholders of MSIL are supposed to be aware that the company is

facing problems that need to be handled immediately. Based off the
research the company is experiencing low sales and that is affecting their
market share. Also the data show that company has challenging
competition who have taken over the market. Customers have decided to
buy products from Tata. The findings indicate that the stakeholders and
the management need to do a lot of work to restore MSIL in the A-
segment. The research also indicates a change in customer preferences.

IV. Research Problem

The data analysis and literature review showed different areas of

research that were not established before. For instances the consumer’s
preference and the switching was clarified by the analysis. The fact that
middle aged consumers are considering cost effective products. The
consumers want improved products that will save them money and be
effective. Consumers have decided to look for products elsewhere like
Tata. Some of the reason are the adopted measures such as cost of living
and responsibilities. Organizations have failed to be more innovative and
lost their market share like MSIL. The aspect of changing customer
preferences has made the research problem of market share and decline
for MSIL.

V. Objective of the study

The objectives of the study of this article “Marketing Strategy of Maruti Suzuki
India Limited is as follows –

(i) To study the growth and strategy for growth of MSIL.

(ii) To know about the marketing strategy used by MSIL.
(iii) To study the role of MSIL in small car revolution in India.
(iv) To know the strength, weakness, opportunities, threats of MSIL in
present scenario.

VI. Marketing Strategy of MSIL

Marketing strategy is the combination of two word that is ‘Marketing’ and

‘Strategy’. Marketing means “the activity, set of institutions and process for
creating, communicating, delivering and exchanging offering that have value
for customers, clients, partners and society at large. P. Kotler defines marketing
as satisfying needs and wants through an exchange process. And strategy
means a plan of action design to achieve a long term or overall aim. These two
words help us to understand the meaning of marketing strategy. Marketing
strategy is the plan of action designed to satisfy the needs and wants of
customers, clients, partners and society. In this study, the marketing strategy of
Maruti Suzuki India Limited is based on the marketing-mix, the PEST analysis,
the SWOT analysis and the BCG matrix.
 1. Marketing-mix of MSIL

‘A combination of factors that can be controlled by a company to influence

consumers to purchase its products’– Marketing-mix. We can say that it is a
foundation model and set of marketing tools that the firm uses to pursue its
marketing objectives in the target market. Thus, the marketing-mix refers to four
broad levels of marketing decisions namely – product, price, place and
promotion. Here is the marketing-mix of Maruti Suzuki India Limited.

i. Product mix of MSIL

Maruti Suzuki India Limited have 53% market share in the Indian market. All
the products of Maruti Suzuki India Limited are made keeping the common
man in mind. Means the product quality is suited for the every segments of the
population either it is urban or rural. It manufactures different types of cars and
sells them in the market –
● Omni
● Wagon R
● Swift
● Dzire
● Eeco
● Alto 800
● Alto K10
● Ertiga
● Celerio
● Celerio X
● Ciaz
● Baleno
● Baleno RS
● S-cross
● Vitara Brezza
● Ignis
 ii. Price mix of MSIL

Price strategy of MSIL is as per both the penetrative stage and the competitive
stage. Pricing strategy of MSIL is based on many factors. It is decided after the
proper analysis of market means the research team of the company analyze the
current market trends, the competition, the cost of raw material, socio- economic
factors, distribution charges, cost of advertisement, the dealers profit and the profit
of the company.

Prices of different cars of MSIL

Car Name Price of cars Category

Omni 2.68 Lacs to 2.70 Lacs Minivan
Wagon R 4.65 Lacs to 6.33 Lacs Hatchback
Swift 5.43 Lacs to 9.84 Lacs Hatchback
Dzire 6.09 Lacs to 10.61 Lacs Sedan
Eeco 3.65 Lacs to 4.79 Lacs Minivan
 Alto 800 2.8 Lacs to 4.17 Lacs Hatchback
Alto K10 3.87 Lacs to 4.92 Lacs Hatchback
Ertiga 9.11 Lacs to 12.72 Lacs Mini MPV
Celerio 4.78 Lacs to 6.06 Lacs Hatchback
Celerio X 5.31 Lacs to 6.16 Lacs Hatchback
Ciaz 9.37 Lacs to 13.52 Lacss Sedan
Baleno 6.07 Lacs to 10.03 Lacs Hatchback
Baleno RS 9.97 Lacs Hatchback
S-cross 10.12 Lacs to 13.64 Lacs Mini SUV
Vitara Brezza 8.45 Lacs to 12.35 Lacs Mini SUV
Ignis 5.34 Lacs to8.19 Lacs Hatchback

iii. Place mix of MSIL

Maruti Suzuki India Limited has three manufacturing units in India and having
combined production capacity of 17, 62,000 Vehicles annually. It has strong dealer
network across India and has largest distribution and after sales service. As far as
the place mix of MSIL is concern, MSIL has 1,820 sales outlets across 1,471 cities
in India but the company aims to increase it to 4,000 outlets by 2020. MSIL has
3,145 service stations across 1,506 cities throughout India and aims to touch 5,000
service stations by 2020. Maruti’s dealership network is larger than Hyundai,
Mahindra, Honda, Tata, Toyota and Ford combined. MSIL has 1,280 showrooms
across 453 cities in India. MSIL transport cars from manufacturing plant to
different dealers point across India through Car carrier (container). In August,
2016, government of India has experimented to send the cars through ships to
control the pollution but the experiment was not succeeded. And then MSIL
included train racks to transport the cars to decrease the pollution level.
 iv. Promotion mix of MSIL –

The MSIL uses all types of media to promote its products. The main focus is
on the road safety measures. The promotion mix consist of four major tools –
- Advertisement
- Publicity
- Personal Selling
- Sales Promotion
Advertisements are telecast in the visual media and the print media such as
Television, radio, newspaper, magazine, road shows, seminars and workshops.
Publicity had played a vital role in the success of Maruti Suzuki India Limited.
The company has used publicity tools –
- News
- Speeches
- Events
- Written Material
- Audio – Visual Materials
- Corporate Identity, etc.

VII. Sale’s Strategy of MSIL

Maruti’s marketing objective is to continually offer the customer new products and
services that:

 reduce the customer’s cost of ownership of cars; and

 Anticipate and address the customer’s needs and preferences in all aspects
and stages of car ownership, to provide what Maruti Suzuki refer to as the
“360 degree customer experience.”
Maruti Suzuki has been aggressively cutting prices of its models since the
beginning of the year. It began the year by slashing the price of Esteems diesel
version followed by a by the reduction on the premium segment Baleno. Then the
midsized Verses price was slashed, Altos price tag was then pruned putting its base
variant at par with the AC version of M800.The rationale behind the price cuts is
the focus on offering new upgraded vehicles at a low price.

Warranty and Extended Warranty Program

Maruti Suzuki offers a two-year warranty on all the vehicles at the time of sale.
The dealers are required to address any claim made by a customer, in accordance
with practices and procedures prescribed by Maruti Suzuki, under the provisions of
the warranty in force at that time. The dealers subsequently claim the warranty cost
from Maruti Suzuki. Maruti Suzuki analyze warranty claims from dealers and
either claim the cost from the vendors, in the case of defective components, or bear
the cost ourselves, in the case of manufacturing defects.

Maruti Suzuki also offers an extended paid-warranty program marketed under the
brand, “Forever Yours” for the third and fourth year after purchase. The extended
warranty program is intended to maintain the dealer’s contact with the customer
and increase the revenue generated from sale of spares, accessories and
automobile-related services. An effort is made during the period of the extended
warranty to encourage the customer to exchange his existing Maruti car for a new
Maruti car, or upgrade to a new Maruti car.
Maruti Suzuki sales in November 2020

Maruti Suzuki India Limited posted total sales of 153,223 units in November 2020.
This is a growth of 1.7% over November 2019.

Total sales include domestic sales of 138,956 units and 5,263 units for other
OEMs. In addition, the Company exported 9,004 units in November 2020.

The Company remains committed to the health, safety and well-being of all
members across the value chain. All manufacturing, sales and service operations
continue to take place fully consistent with all safety requirements for employees
and customers.
The sales figures for November 2020 are given below:
Chapter 3

Data Analysis and

Interpretation
 1. Sales volume of Maruti Suzuki Limited vehicles across India from
financial year 2007 to 2020, by segment

India was expected to become the third largest vehicle market worldwide in the
coming years. With economic development reaching new milestones and a
burgeoning middle class, the passenger car market in the nation is expected to see
some large growth trends. The passenger car market in the south Asian country is
full of competition from domestic as well as international manufacturers. Maruti
Suzuki had emerged as the leading manufacturer in the country. The company sold
over 1.56 million vehicles during fiscal year 2020. In the passenger car market,
four of the top five bestselling units were owned by Maruti.
 2. Year-wise Market Share Projections of Major Car Manufacturers in
India

Manufacturer 2016 2017 2018 2019 2020

MSIL 46.51 44.63 45.28 38.27 39.12
Hyundai 15.72 16.14 14.37 14.78 14.28
Tata 14.86 14.65 13.96 14.12 11.71
Mahindra 6.8 7.72 7.2 9.34 11.57
Toyota 3.02 3.27 3.36 6.09 6.16
General Motors 3.96 4.46 4.28 4.08 3.28
Ford 1.8 1.89 3.94 3.52 2.87
Honda 3.38 3.17 2.38 2.07 2.74
Volkswagen 0 0.21 2.06 2.98 2.44
Renault 0 0 0 0.14 1.95
Nissan 0.01 0.02 0.52 1.26 1.38
Skoda 0.89 0.9 0.92 1.3 1.08
Others 3 2.94 1.73 2.05 1.42

Above is the market share in percentage and it focuses on the trend covered by
MSIL over the years. It also shows the mean market share for each year. MSIL –
45.51%, 44.63%, 45.28%, 38.27%, 39.12% meaning the over the years MSIL
suffered some gain and loss over the years.
 3. Sales of Passengers Cars

The data set below shows the different models of cars in India and also those sold
by Maruti Suzuki India Limited from 2016-2020. Using descriptive statistics, the
most important measures to apply would be mean and the standard deviation.
The data in the case were analyzed using segments in periods. The segments
inculed are entry hatch, mid hatch, and pemium hatch for the A-sgement. Sedan,
SUV etc have all been included in the total car industry. The main focus in the
research is the A segment. The total sales for the A- segment are below.

2016

Segment India MSIL

Entry-hatch 294.5 262.0
Mid-hatch 497.6 188.8
Premium-hatch 128.2 110.1
Totals 920.3 560.9
Mean sales 306.77 186.97
SD 185.01 75.97

2017
Segment India MSIL
Entry-hatch 340.9 268.2
Mid-hatch 581.2 218.7
Premium-hatch 262.7 179.3
Totals 1148.8 666.2
Mean sales 382.93 221.1
SD 165.98 44.55
2018
Segment India MSIL
Entry-hatch 478.4 373.3
Mid-hatch 628.8 252.1
Premium-hatch 438.9 209.6
Totals 1546.1 835
Mean sales 515.37 278.33
SD 100.20 84.94

2019
Segment India MSIL
Entry-hatch 486.7 331.5
Mid-hatch 527.4 177.3
Premium-hatch 499.8 218.3
Totals 1513.9 727.1
Mean sales 504.63 242.37
SD 20.77 79.86

2020
Segment India MSIL
Entry-hatch 435.1 284.6
Mid-hatch 415.1 156.2
Premium-hatch 531.8 244.0
Totals 1381 684.8
Mean sales 460.33 228.27
SD 62.41 65.63
The above analysis of the sales of passenger cars in the A-segment was done using
mean and standard deviation. Standard Deviation has been incorporated to show
the variety and spread of the values of the segments. Additionally, this may not
apply in major way due to its not hugely significant information about the
segments or periods. On the other hand, the mean is appropriate because it shows
the mean changes in sales over the years. The mean sales for MSIL compared to
the rest of India change from one year to the next year. After looking at the statical
anlysis shows that they had downward chabge in the mean sales from 2018-2013.
Overrall from 2008-2009 the data shows that MSIL was making more money than
2012-2013. The mean indicates that the company attracted many customers the
trend continued until 2013 when it drppped due to the problems with management
and product production.
 4. Sales Trends for Diesel and Petrol Vehicle

It shows a trend for the years 2016-2020. The statistical analysis gives the mean for
the years in percentage and indicated that vehicles in the entry and mid hatch will
reduce from 5% to 2%. Also, diesel vehicles are expected to increase significantly
has well. Also, there is reduction in the projected sales of cars as well as diesel cars
for premium hatch. Sedan and SUV/ MUV segments. (Mukherjee, Mathur &
Dhar, 2015) . Overall statistics indicate that the total diesel cars will reduce
significantly because of the petrol cars are really determined on the lifestyle of the
person who wants the vehicle.
 2016 2017 2018 2019 2020

The graph above shows the sales of MSIL are seen to incrase in the second and
third year but drop in the fourth and fifth year. The decrease in sales of the
company is caused by poor product management and poor innovation and high
replacement costs.
 5. Year-wise Market Share Projections of Major Car Manufacturers in
India Graph

The graph below shows the market share. Information about MSIL has been
extracted from the data to show the trend of the market share of the company over
the years. The reduction in market share is a result of the reduction of sales and due
to poor product management.

2016 2017 2018 2019

 6. Profile of exiting A-Segment Consumers of India Graph

The above graph is representation of a profile of the consumers in the A-segment.

The shows the different component of the consumer profile on the different axis.
The graph shows that it is clear the major consumers are people with a higher
income. Majority of the buyers are also first time buyer’s and self- employed.
(Mukherjee, Mathur & Dhar, 2015). The graph also shows that the cheap costs
attracts the first-time buyers for all vehicles and Disposable income is deciding
factor in determining the purchase level. Family size also plays a part as to who is
able to purchase the vehicle.
The above graph shows the percentage of sales made by first time buyers on their
first vehicle. (Mukherjee, Mathur & Dhar, 2015) The sales decrease in the second
vehicle as most the first buyer has no other reason to purchase the same product
because of the lack of innovativeness and the cost for replacement parts is costly
which discourages consumers.
 7. Sales Trends for Diesel and Petrol Vehicles

2016-2018 2018-2020

The graph above shows the percentage of the current and project3d sales for diesel
and petrol cars. Petrol is more expensive than diesel. The graph shows higher
percentage of consumes in the future who will purchase diesel cars. Meaning
consumes are more cautious and they want to save on fuel. Which shows MSIL
that it needs to ensure that the vehicles ae more cost effective to capture the
demand.
 8. SWOT Analysis of MSIL

Here is the SWOT analysis of MSIL:-

i. Strengths

- Brand name.

- Large distribution network.

- Wide product offering at different price points.

- Cheapest cars in respective segments.

- Encouraging export.

- Economy with technology.

ii. Weaknesses

- Lack of separate Research and Development department.

- New model introduction to only cosmetic changes.

- Dominance mainly at lower level.

iii. Opportunities

- Rise of Indian middle class and small cities.

- A booming economy.

- Rising export.
 iv. Threats

- Many players fighting for the same.

- Entry of new players.

- Cannibalism.

9. PEST Analysis of MSIL

In order to understand the conditions under which the MSIL products were
introduced in the Indian market, it is necessary to analyze the factors that
influenced its effectiveness. Here is the PEST analysis of MSIL –

i. Political Factors

- MSIL galloped in India during adoption of new economic policy by govt. of

India. As a result, everyone was very open to the idea of collaboration with foreign
companies.

- The government insisted on the companies using 70% local content in

the manufacture of the cars as they would have generated tremendous revenue
for India.

- Positive EXIM policies also have helped MSIL to boost its top line with
export.

ii. Economic Factors

- The economic conditions during the launch of MSIL were very relaxed and
liberal. So there were no strict norms that the company had to adhere by.
- The resources available in India were utilized by Suzuki which
generated considerable revenue for the government.

- A booming banking sector has made MSIL more affordable.

iii. Societal Factors

- A rise in middle class has propelled a demand of B-segment cars. MSIL

provides an exact choice for this demand.

iv. Technological Factors

- MSIL has the technology to manufacture everything from the smallest of

screws to the biggest of machines in its factory. Therefore, MSIL manufactures
cars under best conditions.

10. The BCG matrix of MSIL

In concern of BCG matrix of MSIL , Celerio, Alto 800, Alto K10, Vitara Brezza,
Baleno, Ignis, Ertiga and s-cross have the high market share and high growth rate
and Swift, Dzire, Wagan R and Eeco have high market share but low growth rate.
Ciaz, Gypsy, Omni and Ritz having high business growth and low market share so
here is a question mark to high market share. Zen Estilo, Versa, SX4, and A-star
are comes under the dog category because both market share and business growth
rate are low that’s why should stopped. Here is the BCG matrix of MSIL:-
Chapter 4

Conclusion
MSIL was established in February 1981 and started the production in 1983. It has
three manufacturing plants with presently total production capacity is 17, 50,000
Vehicles per year. It has 53% market share and establish market leadership in
Indian market. The present marketing strategy is good enough to sustain the
competition. MSIL follows the political, economical, societal and technological
norms and helps us to increase our national economy.

The price of a car is just one-third of what it cost you over its lifetime. Running
and maintaining it make up the other two-thirds. Take into account resale value
and its real cost becomes clear. Maruti Suzuki stands for value as much as it
stands for performance. In spite of rising input costs, we try our best to keep
prices down. Their running costs and resale values are unbeatable too. Nothing
matches the delight their cars deliver. In the JD Power CSI study 2005, 85% of
Maruti Suzuki owners stated that they would definitely recommend the car they
drive to someone else. In fact, you don’t buy a Maruti Suzuki. You invest in it.
After the rash of new cars launches the past two years, the relative lull in the auto
industry is showing up in the customer satisfaction indices. According to the 2005
four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist
division of TNS Automotive, the automobile ownership experience or customer
ownership experience has declined in all areas compared to 2004.

The study is one of the largest syndicated automotive studies in India,

representing the responses of more than 7,000 new car buyers. The comprehensive
study covers over 50 models with customer evaluations taken in the key areas of
sales satisfaction, product quality, vehicle performance and design, after-sales
service, brand image, and cost-of ownership. The TCS index score provides a
measure of satisfaction and loyalty a given model enjoys with its customers.
According to TNS Automotive, the decline is predominantly for older, small and
entry mid-size car models. The ageing of these models seems to be posing a stiffer
challenge for manufacturers to sustain past performance levels at a time when
customer expectations are rising sharply.
Chapter 5

Recommendation and
Suggestion
The best recommendation based of the research problem needs to be actionable,
feasible, and realistic to innovation. MSIL needs to improve its products to ensure
that it is appealing to its consumers. Consumers need product that improved and
efficient and cheap to maintain. MSIL to ensure fuel efficiently, maintenance costs,
and improvement of vehicles to have better market share.

The study shows that MSIL has the largest market share in the field of four
wheelers in India. Marketing strategy used by MSIL is satisfactory and appropriate
to sustain in the competitive era. MSIL’s marketing strategy is good enough to take
the competitive advantage. The technology used by MSIL is as per economic needs
and the positive EXIM policy of India help to enhance the export of cars.
Aggressively, MSIL moves towards present opportunities that is rise of Indian
middle class and small cities with booming economy.

As far as the suggestion is concern, it is necessary for MSIL that it maintains the
present status in the Indian market. MSIL keeps close look on different threats and
do the needful to prevent it from threats and immediately eliminate the weaknesses
and should establish a separate R & D department. And need to think about
question mark group products and I think, it is necessary to stop the dog group
products.
Bibliography & References

1. http://en.m.wikipedia.org>wiki>Maruti

2. http://economictimes.indiatimes.com

3. http://auto.ndtv.com>New

4. http://www.marutisuzuki.com

5. http://www.autocarindia.com

6. http://www.marutisuzuki.com/our-network.aspx

7. http://www.cardekho.com/Maruti/carmodels/pricerange

8. http://www.marutisuzuki.com/Latest- Maruti-company-update.aspx

9. http://www.wikipedia.org/wiki/Marketing-strategy

10. http://www.scribd.com/doc/52392026/Maruti-Suzuki-Advertising-Strategies
Annexure