Maruti Suzuki India Ltd.

S U B M I T T E D B Y: - S E C T I O N C , G R O U P 1

H I M A N S H U K U M A R ( 17 P G P 17 7 )
C H A I TA N YA D W I V E D I ( 17 P G P 174 )
S H A N TA N U D I K S H I T ( 17 P G P 1 9 2 )
Y U G A M B A N S A L ( 17 P G P 202 )
R A H U L U I K E Y ( 17 P G P 1 8 8 )
How to Expand Demand

• Increase focus on rural markets, search for more financing options

• Reduce cost through technological innovation
• Focus on expanding middle class and youth
• Start exploring options in electric vehicle segment

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How to Expand Demand
Variable Top 20 cities Top 21-50 Top 51-200 Beyond
cities cities 200 cities

Price 9 10 10 10
Reliability 7 8 9 10

Fuel 7 7 8 8
Efficiency

Interior Space 7 8 9 10

Importance of different product attributes

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Strategic Options
To maintain market share have to introduce new product in one of the
following segments:-
• Entry Hatch Segment
• Mid-Hatch Segment
• Premium Hatch Segment

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Entry Hatch Segment
• ~₹ 2,50,000 • 10% more fuel efficient
• Market beyond top 50 cities • Value for money
• Nissan Datsun, Tata Dolphin

Price, Target Market & Competition Value Proposition

Strategic Role Limitations

• Can dominate as competition is less • Lower profit margins

• Difficult for competitors to achieve this • If not successful, can even not meet
price level break even

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Mid Hatch Segment
• ~₹ 3,75,000 • 10% more interior space
• Top 100 cities • Convenience and total cost of ownership
• Nissan small cars, Ford small cars

Price, Target Market & Competition Value Proposition

Strategic Role Limitations

• Large customer base upgrading from • Positioning was middle of segment so

entry to mid hatch cars limited target market
• Product for family; still large potential • Not expected to have a high contribution
market margin

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Premium Hatch Segment
• ~₹ 5,00,000 • Stylish
• Top 50 cities • Technologically advanced
• Ford Fiesta hatch, Full model changes • High performance
of current products

Price, Target Market & Competition Value Proposition

Strategic Role Limitations

• Can act as differentiator • High investment for technologically

• Can create brand image for company advanced features
• Can create new demand potential • Intense competition from global brands

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 Product Life Cycle

Introducti Growth Maturity Decline

on Stage Stage Stage Stage

Establish a Gain Profit Loss of

market share Customer Maximisation Market share
Preference and Reduced
Profits

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 Introduction Stage

• Market share and growth in the introduction stage is very slight

• Substantial and research costs have been incurred

• Marketing costs was in order to test the market

• MISL has spent large amount of money on targeting early adopters

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 Growth Stage

• Rapid growth in sales and profits

• Increase in output

• Cheaper for businesses to invest in increasing their market share

• Significant promotional resources

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 Maturity Stage
• Significant moves are copied by competitors

• Competition is the most intense as companies fight to maintain their

market share

• MSIL Zen faced competition from Santro

• Wagon R was brought back from its Maturity Stage to Growth Stage
when they roped in Madhavan as brand ambassador

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 Decline Stage
• Market is shrinking, reducing the overall amount of profit

• Technological advances and increased competition lead to reduction

in sales

• For some of the models like Esteem and Zen the decline was slow

• For some models like Kizashi and Grand Vitara XL 7 the decline was
rapid

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Market Expansion is the Way Ahead
Current Product
• Ad Campaigns with taglines
Current like “Kitna deti hai?” and
“Khatam hi ni hunda”
Market • Legacy advertising with the
movie “Mere Dad Ki
Maruti”
• Additional features added to • Vitara Brezza provided
Swift and Dzire pushed them
from Mid size hatch to
New Premium Hatch and Entry
Market level sedan to Mid level
Sedan, respectively
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New Product
• Introduction of new car,
Baleno to the Premium
Hatch Category and Celerio
in the Mid Size Hatch
Category
• Launching of Nexa as an
exclusive retail store
entry into the Urban SUV
Category in competiton
against Ford’s EcoSport,
Hyundai’s Creta and Honda’s
BR-V
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