SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF
BACHELOR OF COMMERCE

ON
MARKETING STRATEGY OF MARUTI SUZUKI (PVT) LIMITED

Guided By: - Submitted By: -

Snigdharani Panda (Lect. In Commerce) K Sachin Patra
Madhusudan Suna (Internal Trainer) Roll N.o-S17317COM051

Vikash Degree College

Affiliated to Sambalpur University

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 ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors who

graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly approach.
It would have been difficult to achieve the results in such a short span of time without their
help.
I deem it my duty to record my gratitude towards the Internal project supervisor Miss.
Snigdharani Panda who devoted her precious time to interact, guide and gave me the right
approach to accomplish the task and also helped me to enhance my knowledge and
understanding of the project.

K Sachin Patra
S17317COM051
BCOM

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 DECLARATION

I hereby declare that the following documented project report titled "MARKETING
STRATEGY OF MARUTI SUZUKI (PVT') LIMITED." is an original and authentic work
done by me for the partial fulfillment of Bachelors of Commerce degree program.

I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and
original to the best of my Knowledge & I have not submitted it earlier elsewhere.

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 TABLES OF CONTENS

CHAPTER TOPIC PAGE NO

1 INTRODUCTION OF THE CONCEPTS 5-14
2 HISTORY OF AUTOMOBILE INDUSTRY IN INDIA 15-17
3 COMPANY PROFILE 18-29
4 MARKETING STRATEGIES OF MARUTI SUZUKI 30-31
5 CONSUMER BEHAVIOUR 32
6 MARKETING MIX OF MARUTI SUZUKI 33-34
7 SWOT ANALYSIS OF MARUTI SUZUKI 35-36
8 BCG MATRIX OF MARUTI SUZUKI 36-37
9 RESEARCH METHOLDOGY 38
10 DATA ANALYSIS 39-41
11 OBJECTIVE OF STUDY 41
12 SOURCE OF DATA 42
13 CONCULSION 42
14 BIBILIOGRAPHY 42
15 QUESTIONAIRS 43

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 INTRODUCTION OF MARKETING
The term “marketing” refers to identifying and meeting the human and social needs profitably. The success
of any organization depends mainly upon its marketing competency. All company has sufficient demand
for its offerings to generate profits.
The world economy has undergone a radical transformation in the last three decades. Geographical and
cultural distance have shrunk significantly with the advent of latest modern and fast means of transport and
communication. Such advancements and development have allowed companies of the whole world to
widen their markets. Globalization has changed the concept of marketing. The field of marketing is being
rapidly transformed into a much broader and more significant field in the recent years. It is no longer, mere
the exchange function or transfer of ownership. Rather, it is a total system of various business activities
designed to discover and translate consumer needs and wants into products and service specification,
creation of welfare and standard of living, increase the nation's income and maintain economic stability.
Marketing is an ancient art since the days of Adam and Eve. It is one of the oldest professions of the world.
It is practiced today in all nations regardless of their political philosophy.
Now a days, marketing has widely been accepted as societal process as its importance extends to society as
a whole. It plays a vital role in establishing new products that make the lives easier or enrich lives by way
of inspiring innovations. In this unforgiving business environment, constant efforts are required for the
enhancement of the existing products to sustain or improve position in the market by every company. The
true sense of marketing lies in meeting the needs and wants profitably. OLX.com created online exchange
of second hand goods as or used, items to enrich people's lives as well as improving the life cycle of the
products. Similarly, Quiker Cars offers the online facility to buy and sell well details to satisfy needs and
wants of customers.

MEANING OF MARKETING: -
Marketing is a comprehensive term which includes all resources and a set of activities necessary to facilitate
the flow of goods and services from producer to consumer. In other words, marketing is a total system of
business activities designed to plan, price, promote and distribute want satisfying products to achieve
organizational objectives. Marketing has been defined differently by different authors.

DEFINITIONS OF MARKETING: -
 The American Marketing Association has provided a formal definition- "Marketing is the activity,
set of institutions, and processes for creating, communicator, delivering and exchanging offerings
that have value for customers, clients, partners, and society at large.
 " According to Cundiff, Still and Govani, "Marketing is the managerial process by which products
are matched with markets and through which the consumers are enabled to use or enjoy the
products."
 According to Enis, "Marketing is a fundamental human activity, which encompasses exchange
activities Conducted by individuals and organizations for the purpose of satisfying human wants".

IMPORTANCE OF MARKETING: -
Marketing plays an important role for a firm, consumers, economy and society as a whale as discussed
below.

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A. Importance to the Firm
1. Helpful in planning and decision making: The ever-changing marketplace due to advancement of
technology. globalization and deregulation have made marketing complex and tedious task. Marketing has
emerged as a new specialized activity along with production. A businessman is confronted with many
problems in the form of when, how much and for whom to produce? As a result, producers are depending
largely on the mechanism of marketing to decide what to produce and sell. With the help of marketing
techniques, a producer can regulate his production accordingly. It is very important for any firm to decide
what can be sold before producing a product. Marketing helps in taking such decisions.
2. Increase in profit: Primary motive of every firm is to earn maximum profits. Intense competition- both,
domestic and foreign has forced brand manufacturers to go for high promotional expenditures. Further,
greater price sensitivity has forced shrinking of profit margins. Maximization of profits is possible only if
a firm adopts good marketing strategies and its marketing department functions successfully. Marketing
helps in reducing the cost of production by curtailing distribution expenditure. Integrated marketing
focusing on functional departments help, in increasing demand of the product when managed by
multidisciplinary teams. As a result, sales increase and consequently the profits of the firm increase.
3. Helpful in communication between society and firm: The world is dynamic. Needs. attitudes. fashion,
liking and disliking of people keep on changing. To keep pace with these changes, firms should have
information regarding changing preference, changing fashions and changing demands. Marketing helps in
providing such information to the top management further, focusing on buying experience leads to building
long-term profitable customer relationships. It also helps in providing extensive information to the society
regarding availability of products, their characteristics, prices and utility.
4. Company reputation: The success of a company depends on its solid reputation. Technology has paved
the way to intelligent shopping_ The buyers are now increasingly demanding higher quality and service as
well as some customization. Marketing helps to build brand name recognition of a company with some real
product difference. When a company reaches high expectations of the public. its reputation stands on firmer
ground. As the reputation grows, the business expands and sales increase. The reputation of the company
is built through active participation in community programs. Effective communication and quality products
or Services, which are created or supported by marketing efforts.
5. Healthy competition: Marketing also fosters an environment in the marketplace for healthy competition.
opposed to companies that have a monopoly on products and services that can charge almost any price,
marketing helps in keeping the prices competitive for a business to try to win over consumers before its
competition does. Without competition, well-known companies would continue to sell while lesser known
companies or new companies would have little chance of ever becoming successful. Marketing facilitates
healthy competition that allows small and new businesses to enter successfully and grow in the marketplace.
6. Helps to boost product sales: Marketing helps to boost sales from spreading awareness about the
products and helps in the revenue growth of the company. Marketing creates desire among the general
public to buy the product through effective strategic marketing plans including integrated marketing
communication. The more people hear and see the products. the more they are interested to buy them.
Marketing is an important tool for helping the business to grow. Without marketing, it can be difficult for
the business to stand out from the competition.
B. Importance to the Consumers
1. Global research: marketers through Internet is able to satisfy more customers across the globe.
Marketers recognize the role of websites and the blogs, online communities. SMS, e-mail etc. which
facilitates marketing exchange. For example: Today, to buy a refrigerator, the buy r can visit the sites for
new and old refrigerator. compare them and can find the best value.
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 2. Promotes product awareness: The primary objective of mobile of marketing is getting the product
recognized by the market. Customers never thought of mobile phones, personal computers or laptops.
Marketing is considered as most effective tool not only to create awareness but to educate customers about
the utility of various products. Thus, marketing helps to enact the knowledge of customers and to improve
the quality of life.
3. Creating utilities: Marketing creates product utility (form timber into desired furniture), place utility
(moving product closure to customer), time utility (product being made available when it is needed),
information utility (informing of availability of a particular product at a particular place and particular price)
and possession utility (through transfer od ownership).
4. Marketing acts as a source of new ideas: The concept of marketing is dynamic in nature. it has changed
with the passage of time. Such changes have fur reaching effects on production and distribution. Marketing
aims at generating valuable insights by understanding the ever-changing needs and desire of the buyers,
thereby providing product accordingly.
5. Consumer decision making: With so much competition already present in the market and with a
powerful medium like internet being used, there is too much noise far the customer to make a sound
decision. Thus, today the focus of the company is on the complete marketing mix as well as on
manufacturing products which are unique. It helps consumers to understand real product difference while
their search for value. Marketing can create or re-install excitement about a product or service.
C. Importance to the Society
1.Delivery or standard or living to the society: Marketing creates. maintains and increases the demand
of new and existing products in the market and thus improves the standard of lilting 0f the society.
Prof.Malcorn Menair has rightly said, "Marketing is the creation and delivery of standard of living to the
society."
2. Increasing employment opportunities: Increase in employment opportunity. have a direct link with the
development of marketing. Continuous production needs continuous marketing. Continuous marketing
requires the service of many organizations dike wholesalers. retailers) transportation, storage. finance and
insurance, advertisement etc. Such organizations provide employment m a large number of people.
3. Increase in national income: Successful operation of marketing activities reduces the production cost
to the minimum which results in lowering of prices. Decrease in price, increases the purchasing power of
consumers. This, in turn, increases the national income.
4. Balances demand and supply: Marketing function involves creation of product, time, place information,
and possession utilities. This helps in removing the imbalances of supply by transferring the surplus to
deficit areas lending to balanced growth.
5. Protection against evil effects of depression: It is through marketing that the spending is continued by
the consumers and the state of depression is kept under control. Marketing can create demand within a
population. If a product or service is marketed effectively, people will believe that it is necessary and will
demand it for themselves.
6. Availability of various products.: Today, there are hundreds of new products and too many variants of
every product are available only because of marketing. Today’s economic environment is tough. Consumer
spending is low and at same time consumers have become very knowledgeable and selective about the
product they buy. Decision making is happening mainly based on word of mouth, though advertising is also
playing a crucial role in decision making.

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7. Marketing is helpful in the development of an economy: Adam Smith has remarked that “nothing
happens in our country until somebody sells something’’. Marketing is the force that seta the economy
revolving. Scientific and systematic marketing organization makes the economy stronger and stable. If a
marketing campaign is positive and successful, it can stimulate economic growth in a given area making it
an important part of modern economics.

Meaning of Marketing Mix: -

The term ‘marketing mix’ refer to a unique blend of product, place, price and promotion. popularly
known four P's. The four Ps marketing mix can be regarded as the ‘core’ of the company's marketing
system. Marketing manager can control each component of the, marketing mix as these are controllable
variables of marketing. But the strategies for all the components must be blended to achieve organizational
objectives. These four elements are, adjusted until the right combination is found that serves the needs of
the product ‘s customers, while generating optimum income. For example, an excellent product with a poor
distribution system will likely fail.

Definition of Marketing: -
 According to Borden, “The marketing mix refers to the appointed of efforts, the combination, the
designing and integration of the element marketing into a programme of mix which, on the basis of
an appraisal of the market forces will best achieve an enterprise at a given time”.
 According to Stanton, “Marketing mix is the term used to describe the combination of the four
inputs which institute the core of a company’s marketing system -the product, the price structure,
the promotional actives and the distributional system”.
 In the words of Dawer, “Group of virous policies used by producer to succeed in market can be
said as marketing mix.”

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 1.PRODUCT MIX: -
Product is the first, element of marketing mix. Product refers to what the business or non- profit organization
offers to its customers. Customer often expect more than a tangible product from an organization.
Therefore, it is important for companies to offer a 'total product" to customers in order to satisfy them.
'Total product' includes not only the basic product but also many services attached to it including package.
brand, shape, design, style, warranty and service. Subsequent to sale etc.
Product mix concerns with following decisions: -
I. Development and introduction of new product.
II. Matching the products with needs and wants of target consumers.
III. Modifications (in term of qualities, features. and performance) on existing products.
IV. Product- related strategies including branding, packaging, labelling, colour, weigh, grading. etc.
V. Product line decisions including different varieties or models, and product mix decisions including
width, depth. length. and consistency.
VI. Product-related services like after sales services. home deliver, guarantee, warrantee, and
demonstration.
VII. Study of competitive (or comparative) advantages of products.
VIII. Product life cycle, relevant strategies for each of the stages of product life cycle, and consumer
adoption process.

2.PLACE (DISTRIBUTION) MIX: -

Place (Distribution) mix strategies concerned with making products available when and where customers
want them. It comprises of many activities or many decisions related to channels of distribution,
transportation, warehousing and inventory control so that they arrive in usable condition at designated
places when needed. The middlemen is a link between a producer and a consumer. So, a firm has to choose
a proper channel of distribution of products which can provide various services - financing, gathering
market information, marketing the products, distribution etc. Wholesalers and retailers assist manufacturers
in distributing products to ultimate consumers because every organization does not have the resources or
ability to manage all the activities required in the distribution process.

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 Place decisions involve:
I. Studying geographical concentration of customers.
II. Studying types of distribution channels and channel members.
III. Analyzing various relevant factors affecting channel decisions.
IV. Selecting suitable channel of distribution.
V. Strategic decisions related to distribution activities.
VI. Physical distribution including transportation, communication warehousing, inventory control,
insurance, banking etc.
VII. Balancing distribution costs and selling price.
VIII. Designing a suitable distribution network, and long-term distribution strategies.
IX. Developing and adopting logistics management for effective distribution of products.

3.PRICE MIX: -
Price is what a buyer must give up to obtain a product. It is the most flexible of the four components of
the marketing mix because marketers can increase or decrease the price, Marketers must determine the
best price for the, products. They must ascertain a product’s value to customers. In order to attract the
buyers and deal with the competition baste price alternations can be made by manufacturer in the form of
discounts. allowances and terms of credit.
Before setting the pricing policy, a company has to consider many factors. First and foremost, factor is
that a company must clear about its objectives i.e. whether company want maximum current profit or
maximum sales growth or maximum market skimming or product quality leadership. After selecting the
pricing objectives, company will determine demand and then estimate cost.
The next step afterwards is analysis of competitor's costs, prices and offers. Keeping into consideration
all these factors, company has to select pricing method. The pricing method will then lead to a specific
price.
Companies usually do not fix a single price but adopt different pricing strategies depending upon
geographical demands and costs, market segment requirements, purchase timing, order levels, delivery
frequency and service contracts etc. Most of the companies modify their basic price to reward customers
for early payments, volume purchases and offseason buying. The most commonly used pricing strategies
are Cost Plus. Competition based, Skimming, Penetration etc.
Trade Discounts are given to wholesalers and retailers as a consideration for performing marketing
function on behalf of manufacturers. During slack seasons dealers sometimes allow seasonal discount to
reduce storage cost.
Special types of allowances are offered to retailers who are expected to perform promotional activities to
push up the sales like advertisement allowance, window-display allowance, free samples etc.
4.PROMOTION MIX: -
Promotion it the, persuasive communication by the marketer to existing customers and potential buyers.
Promotion includes advertising, sales promotion, personal selling and publicity. Through these activities of
promotion marketers inform, educate, persuade and remind the customers about the product, its benefits
and about an organization.

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A good promotion strategy sometimes dramatically increases a firm's sales.
Advertising has the ability to communicate to a large number of people at once. It is indirect and non-
personal method of persuading consumers. Most commonly used methods of advertisement are Television
and Magazines. Direct mailing of catalogues, and electronic media advertisement (buying through
computers) are becoming popular these days.
Personal selling is face-to-face interaction between seller and buyer. No other tool of promotion has strong
convincing power as personal selling. Due to face-to-face interaction of buyer and seller, personal selling
alone can provide immediate feedback of information which is absent in advertisement and publicity. It
enables a salesman to understand properly the buyer's mind, his problems, his needs and his preferences.
Publicity is similar to advertisement because like advertisement, publicity is done through same mass
media. The only difference is that publicity involves an unpaid message whereas advertising is a paid form
of message delivery. When information about a company, a product or an event is newsworthy, mass media
may communicate that information 'for free'. Defective products, unfair trade practices, anti-social activities
often result in unfavorable publicity.
Sales Promotion plays very important role in lubricating the marketing efforts. Sales promotion is a direct
and open persuasion to the customer to try the product immediately. It stimulates consumer purchasing and
dealer effectiveness. Sales promotion is done through exhibitions, trade fairs, displays, demonstrations, free
samples, coupons and contests etc.

Scope of Marketing: -
1. Goods:
Physical goods constitute the major part of a country’s production and marketing effort. Companies market
billions of food products, and millions of cars, refrigerators, television and machines.
2. Services:
As economies advance, a large proportion of their activities is focused on the pro-duction of services.
Services include the work of airlines, hotels, car rental firms, beauticians, software programmers,
management consultants, and so on. Many market offerings consist of a mix of goods and services. For
example, a restaurant offers both goods and services.
3. Events:
Marketers promote events. Events can be trade shows, company anniversaries, entertainment award shows,
local festivals, health camps, and so on. For example, global sporting events such as the Olympics or
Common Wealth Games are promoted aggressively to both companies and fans.
4. Experiences:
Marketers create experiences by offering a mix of both goods and services. A product is promoted not only
by communicating features but also by giving unique and interesting experiences to customers. For
example, Maruti Sx4 comes with Bluetooth technology to ensure connectivity while driving, similarly
residential townships offer landscaped gardens and gaming zones.
5. Persons:
Due to a rise in testimonial advertising, celebrity marketing has become a business. All popular
personalities such as film stars, TV artists, and sportspersons have agents and personal managers. They also
tie up with PR agencies for better marketing of oneself

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6. Places:
Cities, states, regions, and countries compete to attract tourists. Today, states and coun-tries are also
marketing places to factories, companies, new residents, real estate agents, banks and business associations.
Place marketers are largely real estate agents and builders. They are using mega events and exhibitions to
market places. The tourism ministry is also aggressively promoting tourist spots locally and globally.
7. Properties:
Properties can be categorized as real properties or financial properties. Real property is the ownership of
real estates, whereas financial property relates to stocks and bonds. Properties are bought and sold through
marketing.
Marketing enhances the need of ownership and creates possession utility. With improving income levels in
the economy, people are seeking better ways of saving money. Financial and real property marketing need
to build trust and confidence at higher levels.
8. Organizations:
Organizations actively work to build image in the minds of their target public. The PR department plays an
active role in marketing an organization’s image. Marketers of the services need to build the corporate
image, as exchange of services does not result in the owner-ship of anything. The organization’s goodwill
promotes trust and reliability. The organization’s image also helps the companies in the smooth introduction
of new products.
9. Information:
Information can be produced and marketed as a product. Educational institutions, encyclopedias, non-
fiction books, specialized magazines and newspapers market information. The production, packaging, and
distribution of information is a major industry. Media revolution and increased literacy levels have widened
the scope of informa-tion marketing.
10. Idea:
Every market offering includes a basic idea. Products and services are used as platforms for delivering
some idea or benefit. Social marketers widely promote ideas. Maruti Udyog Limited promoted safe driving
habits, need to wear seat belts, need to prohibit children from sitting near the driver’s seat, and so on.

Needs of Marketing: -
1. Identifying problem and opportunities in the market:
It helps in identifying new market opportunities for existing and new products. It provides
information on market share, nature of competition, customer satisfaction levels, sales performances
and channel of distribution. This helps the firms is solving problems.
2. Formulating market strategies:
Today, markets are no more local. They have become global. Manufactures find it difficult to contact
customers and control distribution channels. Competition is equally severe. The consumer needs are
difficult to predict. Market segmentation is a compli-cated task in such wide markets. The marketing
intelligence provided through marketing research not only helps in framing but also in implementing the
market strategies.
3. Determining consumer needs and wants:

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Marketing has become customer-centric. However, large-scale production needs intermediaries for mass
distribution. Due to prevalence of multi channels of distribution, there is an information gap. Marketing
research helps in collecting information on consumers from structured distribution research and helps in
making marketing customer oriented.
4. For effective communication mix:
In an era of micro- rather than mass-marketing, communica-tion plays a vital role. Marketing research uses
promotional research to study media mix, adver-tising effectiveness and integrated communication tools.
Research on such aspects will help in promoting effectively a company’s product in the market.
5. Improving selling activities:
Marketing research is used to analysis and evaluate performances of a company within a market. It also
studies effectiveness of a sales force. It helps in identify-ing sales territories. Such information helps the
companies in identifying areas of shortcoming in sales. It also examines alternative methods for distribution
of goods.
6. For sales forecasting:
The most challenging task for any production manager is to keep optimum levels of inventory. However,
production is undertaken in anticipation of demand. Therefore, scientific forecast of sales is required.
Marketing research helps in sales forecasting by using market share method, sales force estimate method
and jury method. This can also help in fixing sales quotas and marketing plans.
7. To revitalize brands:
Marketing research is used to study and find out the existing brand position. It finds out the recall value of
brands. It explores the possibilities of brand extension or prospects of changing existing brand names. The
main purpose of marketing is to create brand loyalty. Marketing research helps in developing techniques to
popularize and retain brand loyalty.
8. To facilitate smooth introduction of new products:
Marketing research helps in testing the new products in one or two markets on a small scale. This helps in
finding out consumer response to new product and develop a suitable marketing mix. It reveals the problems
of the customers regarding new products. Thus, it controls the risk involved in introducing a new product.
9. Determine export potentials:
The development in transport and communication has helped in globalization and digitalization of world
trade. This has helped in boosting the growth of international markets. Marketing research helps in
conducting market survey for export. It. collects information on marketing environ-ment prevailing in a
country. By collecting data on consumers from different countries, it indicates export potentials.
10. Managerial decision-making:
Marketing research plays a vital role in the decision-making processes by supplying relevant, up-to-date
and accurate data to the decision-makers. Managers need up-to-date information to access customer needs
and wants, market situation, technological change and extent of competition.

Difference between Marketing and Selling: -

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 SELLING MARKETING
1. Emphasis of selling is on profit. 1. Emphasis of marketing is on customer
satisfaction.

2. It emphasizes on product and production is done 2. It emphasizes on customers needs and

without knowing customers' needs. production Is done after knowing customers’ needs
and requirements.

3. Conversion of goods into cash is the major 3. Conversion of consumer needs into goods cash
activity performed in selling. is the major activity performed in marketing.

4. Price is determined on the basis of cost incurred. 4. Price is determined by consumers and then on
basis of price, cost is determined.

5. It has a narrow scope and covers only transfer of 5. It has a wider scope, and besides selling it covers
goods from seller to buyer. product planning, pricing, advertising and
marketing research.
6. Management is sales-volume-oriented in Selling. 6. Management is profit-oriented in marketing.

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 HISTORY OF AUTOMOBILE INDUSTRY IN INDIA
The automobile industry in India is world’s fourth largest, with the country currently being the world's 4th
largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in 2018. Indian
automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion
(US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the industry and made up 81 per cent share in
the domestic automobile sales in FY19. Overall, Domestic automobiles sales increased at 6.71 per cent
CAGR between FY13-18 with 26.27 million vehicles being sold in FY19. Indian automobile industry has
received Foreign Direct Investment (FDI) worth US$ 20.85 billion between April 2000 and December
2018.
Domestic automobile production increased at 6.96 per cent CAGR between FY13-19 with 30.92 million
vehicles manufactured in the country in FY19.
In FY19, commercial vehicles recorded the fastest pace of growth in domestic sales at 17.55 per cent year-
on-year, followed by three-wheelers at 10.27 per cent year-on-year.
The passenger vehicle sales in India crossed the 3.37 million units in FY19, and is further expected increase
to 10 million units by FY20.
The government aims to develop India as a global manufacturing as well as a research and development
(R&D) hub. It has set up National Automotive Testing and R&D Infrastructure Project (NATRiP) centers
as well as a National Automotive Board to act as facilitator between the government and the industry. Under
(NATRIP), five testing and research centers have been established in the country since 2015.
The Indian government has also set up an ambitious target of having only electric vehicles being sold in
the country. Indian auto industry is expected to see 8-12 per cent increase in its hiring during FY19. The
Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction
of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The first phase of the scheme has been
extended to March 2019 while In February 2019, the Government of India approved the FAME-II scheme
with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22. Number of vehicles supported
under FAME scheme has increased to 192,451 units in March 2018 from 5,197 units in June 2015.
Automobile exports grew 14.50 per cent in FY19. It is expected to grow at a CAGR of 3.05 per cent during
2016-2026. Domestic two-wheeler industry is expected to grow at 8-10 per cent during FY19. Also, Luxury
car market in India is expected to grow at a 25 per cent CAGR till 2020. The Government of India expects
automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023.

Market Size: -
Domestic automobile production increased at 7.08 per cent CAGR between FY13-18 with 29.07 million
vehicles manufactured in the country in FY18. During April 2018-January 2019, automobile production
increased 9.84 per cent year-on-year to reach 26.26 million vehicle units.
Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-18 with 24.97 million
vehicles getting sold in FY18. During April 2018-January 2019, highest year-on-year growth in domestic
sales among all the categories was recorded in commercial vehicles at 22.79 per cent followed by 14.79 per
cent year-on-year growth in the sales of three-wheelers.
Premium motorbike sales in India crossed one million units in FY18. During January-September 2018,
BMW registered a growth of 11 per cent year-on-year in its sales in India at 7,915 units. Mercedes Benz

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ranked first in sales satisfaction in the luxury vehicles segment according to J D Power 2018 India sales
satisfaction index (luxury).
Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18.
Investments: -
In order to keep up with the growing demand, several auto makers have started investing heavily in various
segments of the industry during the last few months. The industry has attracted Foreign Direct Investment
(FDI) worth US$ 20.85 billion during the period April 2000 to December 2018, according to data released
by Department of Industrial Policy and Promotion (DIPP).
Some of the recent/planned investments and developments in the automobile sector in India are as follows:
 Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to launch
20-25 new models across various commercial vehicle categories in 2018-19.
 Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also announced to
invest US$ 310 million in India.
 Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to 20,000 units per
year, highest for any luxury car manufacturing in India.
 As of October 2018, Honda Motors Company is planning to set up its third factory in India for
launching hybrid and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31 billion), its largest
investment in India so far.
 In November 2018, Mahindra Electric Mobility opened its electric technology manufacturing hub
in Bangalore with an investment of Rs 100 crore (US$ 14.25 million) which will increase its annual
manufacturing capacity to 25,000 units.
Government Initiatives: -
The Government of India encourages foreign investment in the automobile sector and allows 100 per cent
FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are:
 The government aims to develop India as a global manufacturing center and an R&D hub.
 Under NATRiP, the Government of India is planning to set up R&D centers at a total cost of US$
388.5 million to enable the industry to be on par with global standards
 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for
introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster
Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government
will also set up incubation center for start-ups working in electric vehicles space.
 In February 2019, the Government of India approved the FAME-II scheme with a fund requirement
of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.
Achievements: -
Following are the achievements of the government in the past four years:

 Number of vehicles supported under FAME scheme increased from 5,197 in June 2015 to 192,451
in March 2018. During 2017-18, 47,912 two-wheelers, 2,202 three-wheelers, 185 four-wheelers and
10 light commercial vehicles were supported under FAME scheme.
 Under National Automotive Testing And R&D Infrastructure Project (NATRIP), following testing
and research centers have been established in the country since 2015
16
  International Centre for Automotive Technology (ICAT), Manesar
 National Institute for Automotive Inspection, Maintenance & Training (NIAIMT), Silchar
 National Automotive Testing Tracks (NATRAX), Indore
 Automotive Research Association of India (ARAI), Pune
 Global Automotive Research Centre (GARC), Chennai
 SAMARTH Udyog – Industry 4.0 centers: ‘Demo cum experience’ centers are being set up in the
country for promoting smart and advanced manufacturing helping SMEs to implement Industry 4.0
(automation and data exchange in manufacturing technology).
Road Ahead: -
The automobile industry is supported by various factors such as availability of skilled labor at low cost,
robust R&D centers and low-cost steel production. The industry also provides great opportunities for
investment and direct and indirect employment to skilled and unskilled labor.
Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18
trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent in 2018.

17
 MARUTI SUZUKI LTD.
COMPANY HISTORY
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile manufacturer in
India. It is a 56.21% owned subsidiary of the Japanese car and motorcycle manufacturer Suzuki Motor
Corporation. As of July 2018, it had a market share of 53% of the Indian passenger car market. Maruti
Suzuki manufactures and sells popular cars such as the Ciaz, Ertiga, Wagon R, Alto K10 and Alto 800,
Swift, Celerio, Swift Dzire, Baleno and Baleno RS, Omni, Baleno, Eeco, Ignis, S-Cross and Vitara Brezza.
The company is headquartered at New Delhi. In May 2015, the company produced its fifteen millionth
vehicle in India, a Swift Dzire.
History: -
Maruti was established in February 1981 with production starting in 1983 with the Maruti 700, made
entirely in India. The second model is the Maruti 800 DX, a copy of the Suzuki SS80, made by Suzuki and
imported from Japan. As of May 2007, the Government of India, through Ministry of Disinvestment, sold
its complete share to Indian financial Institution and no longer has any stake in Maruti Udyog.
Chronology: -
Under the name Maruti
"Surya Ram Maruti Technical Services Private Ltd" (MTSPL), a private company, was launched in 1970,
to provide technical know-how for the design, manufacture and assembly of "a wholly indigenous motor
car". Under the Companies Act, Maruti Limited was incorporated in June 1971. Maruti Limited went into
liquidation in 1977. Further, Maruti Udyog Ltd was incorporated through the efforts of Dr. V.
Krishnamurthy.
Affiliation with Suzuki: -
In 1982, a license and joint venture agreement (JVA) was signed between Maruti Udyog Ltd, and Suzuki
of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed market, Maruti received
the right to import 40,000 fully built-up Suzuki in the first two years, and even after that the early goal was
to use only 33% indigenous parts. This upset the local manufacturers considerably. There were also some
concerns that the Indian market was too small to absorb the comparatively large production planned by
Maruti Suzuki, with the government even considering adjusting the petrol tax and lowering the excise duty
in order to boost sales. Local production commenced in December 1983. In 1984, the Maruti Van with the
same three-cylinder engine as the 800 was released and the installed capacity of the plant in Gurgaon
reached 40,000 units.
In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was launched. In 1986, the original
800 was replaced by an all-new model of the 796-cc hatchback Suzuki Alto and the 100,000th vehicle was
produced by the company. In 1987, the company started exporting to the West, when a lot of 500 cars were
sent to Hungary. By 1988, the capacity of the Gurgaon plant was increased to 100,000 units per annum.

Market Liberalization: -
In 1989, the Maruti Suzuki 1000 was introduced and the 970cc, three-box was India’s first contemporary
sedan. By 1991, 65 percent of the components, for all vehicles produced, were indigenized. After
liberalization of the components, for all vehicles produced, were indigenized. After liberalization of the
Indian economy in 1991, Suzuki increased its stake in Maruti to 50 percent, making the company a 50-50
JV with the Government of India the other stake holder.
18
In 1993, the Zen, a 993cc hatchback was launched and in 1994 the 1928 cc Esteem was introduced. Maruti
produced its 1 millionth vehicle since the commencement of production in 1994. Maruti’s second plant was
opened with annual capacity reaching 200000 units. Maruti launched a 24 hours emergency on-road vehicle
service. In 1998, the new Maruti 800 was released, the first change in design since 1986. Zen D, a 1527 cc
diesel hatchback, and Maruti’s first diesel vehicle, and a redesigned Omni were introduced. In 1999, the
1.6-liter Maruti Baleno three box saloons and Wagon R were also launched.
In 2000, Maruti became the first car company in India to launch a Call Centre for internal and customer
services. The new Alto model was released. In 2001, Maruti True Value, selling and buying used cars was
launched. In October of the same year the Maruti Versa was launched. In 2002, Esteem Diesel was
introduced. Two new subsidiaries were also started: Maruti Insurance Distributor Services and Maruti
Insurance Brokers Limited. Suzuki Motor Corporation increased its stake in Maruti to 54.2 percent.
In 2006, Suzuki and Maruti set up another joint venture,” Maruti Suzuki automobiles India” , to build two
new manufacturing plants, one for vehicles and another for engines. Cleaner cars were also introduced,
with several new models meeting the new “Bharat Stage III” standards. In February 2012, Maruti Suzuki
sold its ten millionth vehicles in India. In July 2014 it had a market share of more 45%.
Maruti Suzuki is now looking to shift its current manufacturing facility located in the downtown Gurgaon
as apparently it is short of space and logistics. It is hunting for a huge 700 acres of plot of land.
On 25 April 2019, Maruti Suzuki announced that it would phase out production of diesel cars by 1 April
2020, when the Bharat Stage VI emission standards come into effect. The new standards would require a
significant investment from the company to upgrade its existing diesel engines to comply with the more
stringent emission standards. Chairman R.C. Bhargava stated, ‘‘We have taken this decision so that in 2022
we are able to meet the Corporate Average Fuel Efficiency norms and higher share of CNG vehicles will
help us comply with the norms. I hope the union government’s policies will help grow the market for CNG
vehicles”. Diesel cars accounted for about 23 % of Maruti Suzuki’s annual sales.
Joint venture related issues: -
Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor
Corporation over the joint venture was a point of heated debate in the Indian media until Suzuki Motor
Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic
trade in the Indian automobile market and the nature of the partnership built up till then was the underlying
reason for most issues. The success of the joint venture led Suzuki to increase its equity from 26% to 40%
in 1987, and to 50% in 1992, and further to 56.21% as of 2013. In 1982, both the venture partners entered
into an agreement to nominate their candidate for the post of Managing Director and every Managing
Director would have a tenure of five years.
Industrial relations: -
Since its founding in 1983, Maruti Udyog Limited has experienced problems with its labour force. The
Indian labor it hired readily accepted Japanese work culture and the modern manufacturing process. In
1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly
thereafter, conflict between the United Front Government and Suzuki started. In 2000, a major industrial
relations issue began and employees of Maruti went on an indefinite strike, demanding among other things,
major revisions to their wages, incentives and pensions.
Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel,
after elections and a new central government led by NDA alliance, India pursued a disinvestment policy.
Along with many other government owned companies, the new administration proposed to sell part of its
stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds

19
that the company will lose a major business advantage of being subsidised by the Government, and the
union has better protection while the company remains in control of the government.
The standoff between the union and the management continued through 2001. The management refused
union demands citing increased competition and lower margins. The central government privatized Maruti
in 2002 and Suzuki became the majority owner of Maruti Udyog Limited.

20
Products and Services: -
Current Models: -
MODEL LAUNCHED CATEGOY IMAGE OUTLET
Omni 1984-present Minivan Arena

WagonR 1999–present Hatchback Arena

Swift 2005–present Hatchback Arena

DZire 2008–present Sedan Arena

Eeco 2009–present Minivan Arena

21
Alto 800 2014-present Hatchback Arena

Alto K10 2010–present Hatchback Arena

Ertiga 2012–present Mini MPV Arena

Celerio 2014–present Hatchback Arena

Vitara 2016–present Mini SUV Arena

Brezza

22
CelerioX 2017–present Hatchback Arena

Ciaz 2014–present Sedan NEXA

Baleno 2015–present Hatchback NEXA

S-Cross 2015–present Mini SUV NEXA

Ignis 2017–2019 Hatchback NEXA

23
Discontinued models: -
Model Launched Discontinued Category Image
800 1983 2010 Hatchback

Gypsy E 1985 2000 Mini SUV

1000 1990 2000 Sedan

Zen 1993 2003 Hatchback

Esteem 1994 2010 Sedan

24
Alto 2000 2012 Hatchback

Versa 2000 2010 Minivan

Grand 2003 2007 Mini SUV

Vitara
XL7

Grand 2007 2015 Mini SUV

Vitara

Zen 2007 2013 Hatchback

Estilo

25
A-star 2008 2014 Hatchback

SX4 2008 2014 Sedan

Swift 2008 2017 Sedan

Dzire

Ritz 2008 2016 Hatchback

Kizashi 2011 2014 Sedan

26
Gypsy 1985 2018 Mini SUV
King

Baleno 2000 2002 Station

Altura Wagon

27
Sales and Service Network: -
Maruti Suzuki has 1,820 sales outlets across 1,471 cities in India. The company aims to double its sales
network to 4,000 outlets by 2020.[60] It has 3,145 service stations across 1,506 cities throughout
India.[61] Maruti's dealership network is larger than that of enough known companies combined.
Service is a major revenue generator of the company. Most of the service stations are managed on
franchise basis, where Maruti Suzuki trains the local staff. Also, The Express Service stations exist,
sending across their repair man to the vehicle if it is away from a normal service center.
NEXA: -
In 2015 Maruti Suzuki launched NEXA, a new dealership format for its premium cars.
Maruti currently sells the Baleno, Baleno RS, S-Cross, Ciaz and Ignis through NEXA outlets. S-Cross was
the first car to be sold through NEXA outlets. Several new models will be added to both channels as part
of the Company's medium-term goal of 2 million annual sales by 2020.
Maruti Insurance: -
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was
set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt.
Ltd and Insurance Brokers Pvt. Limited.
This service started as a benefit or value addition to customers and was able to ramp up easily. By
December 2005 they were able to sell more than two million insurance policies since its inception.
Maruti Finance: -
To promote its bottom-line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the
start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti
Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.[70]
Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard
Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again,
the company entered into a strategic partnership with SBI in March 2003[71] Since March 2003, Maruti
has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in
166 cities across India.
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog
Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki
vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment
Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance
India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%.GE Capital, HDFC and
Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance
program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from
the market rates.
Maruti True Value: -
Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki
Vehicles. One can buy, sell or exchange used Maruti or non-Maruti vehicles with the help of this service
in India. As of 10 August 2017, there are 1,190 outlets across 936 cities.
28
N2N Fleet Management: -
N2N is the short form of End to End Fleet Management and provides lease and fleet management to
corporates. Clients who have signed up of this service include Gas Authority of India Ltd, DuPont, Reckitt
Benckiser, Doordarshan, Singer India, National Stock Exchange of India and Transworld. This fleet
management service includes Leasing, Maintenance, Convenience services and Remarketing.
Maruti Accessories: -
Many of the auto component companies except than Maruti Suzuki started to offer compatible
components and accessories. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti
Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories
like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car
care products. These products are sold through dealer outlets and authorized service stations
throughout India.
Maruti Driving School: -
As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi.
Later the services were extended to other cities of India as well. These schools are modelled on
international standards, where learners go through classroom and practical sessions. Many international
practices like road behavior and attitudes are also taught in these schools. Before driving actual vehicles,
participants are trained on simulators.
At the launch ceremony for the school Jagdish Khattar stated "We are very concerned about mounting
deaths on Indian roads. These can be brought down if government, industry and the voluntary sector
work together in an integrated manner. But we felt that Maruti should first do something in this regard
and hence this initiative of Maruti Driving Schools."
Awards and Recognition: -
The Brand Trust Report published by Trust Research Advisory, a brand analytics company, has ranked
Maruti Suzuki in the thirty seventh position in 2013[79] and eleventh position in 2014[80] among the
most trusted brands of India.

29
 MARKETING STRATEGY OF MARUTI SUZIKI LTD
In earlier days when the market was dominated by only few brands Eke Ambassador & Premier Padmini,
Maruti Suzuki India Limited entered the Indian market with different strategy. The strategy of the company
was to offer a compact, modern and fuel-efficient car. Maruti released in the first Maruti 800 car on 14
December 1983 to fulfil the dreams of Indian customers and became the market leader. Since 1983 till date
Mama Suzuki gradually Offred several choices to the calmer. Due to aggressive competitors today Maruti
Suzuki believes in innovative Marketing strategies. With the changing needs, wants & requirements of
customers and markets. Maruti Suzuki is altering their Brand Positioning, Advertising and Distribution
strategy.
Brand Positioning Strategy: -
Brand Positioning is the most vital concept in a brand’s strategy. Brand Positioning is Also linked with
managing a brand’s meaning. Today several brands of cars are positioning themselves on the feature like
Price, Comfort dimensions, Safety, Mileage etc. Currently Maruti Suzuki is followed a very effective multi-
segmentation strategy to grab the different segments of the market with different versions of its brands.
About brand positioning Mayank Pareek says that, Maruti Suzuki believe in research and before lunching
a product the Maruti team does an extensive research on the needs of the customer. Maruti try to understand
the customer’s demography and psychology to position a brand. Also, the company follows the suggestions
made by existing customers.
Promotion Strategy: -
Every company is it a big or small need an innovative promotional strategy because promotional campaigns
tend to have a huge effect on the reception of the product. Maruti Suzuki India Ltd has a formidable line-
up of vehicles in its stable and has been quite aggressive about promoting each of its automobile brands.
With an intention to face with cutthroat competition and due to declining market share, in 2000 Maruti
Suzuki cut the prices of few models like Wagon R, Omini and Maruti 800 because Maruti knew very well
that Indian consumer is very sensitive about price & this price cut will definitely beneficial for company.
In Jan 2002 to attract the customers. Maruti decided that some of its corporate assets in Delhi including
Maruti’s manufacturing plant and children’s park should be promoted. With an intention to promote road
safety and efficient driving the company held ‘carnivals’ periodically at IDTR.
In 2003, to attract the customers Maruti Suzuki launched attractive campaign like -Change Your Life. The
company also offered vehicle insurance for One rupee only. In this campaign the customers were asked to
write down the chassis and engine number of their vehicles on the entry form and had to answer the
question. In this contest the winners were chosen by a draw of lots and were entitled to gifts worth Rs. 50
million.
In 2004, Maruti introduced the ‘‘2599’’ offer under which by paying an EMI of Rs. 2599 for seven years
after a down payment of Rs,40000, a consumer could buy a Maruti 800. In 2004 Maruti introduced the
‘Teacher Plus scheme, in a tie up with SBI. In this scheme the bank offered reduced rates of interest for
teacher who were interested in buying a new car.
Rural India is a first emerging as a focus area in the country’s economy. Maruti knew that there is a great
potential in rural markets & the endorsements of opinion marker takes precedence over an informed
objective judgment. Considering this fact, Maruti Suzuki lunched a panchayat scheme for such opinion
makers which covers the village Sarpanch, doctors and teachers in government institutions, rural bank
officers where in an extra discount is given to make a sell as a part of customer engaging strategy and to
attract the protentional customers Maruti organized various melas where in local flavor is added by
30
organizing traditional social activities like Garmin Mahotsav are conducted round the year . As a part of
promotional approach Maruti Suzuki promoted Swift & other brands through sponsoring various live
programmes (Dancing shows) like Dance India Dance.
Advertising Strategy: -
Advertise is one aspect of brand building. Whenever Maruti launched any brand, it supported that brand
with and campaign Maruti’s advertising campaigns included TV, Radio and Print ads, Point of Sale, Mobile
Promotions, online marketing, Outdoor promotions. Maruti’s advertising strategy focused both on building
up its corporate image and promoting its cars. Maruti’s campaigns emphasized different aspects of its cars,
including fuel efficiency, looks, space etc.
In the late 1990s, Maruti advertising campaigns were handled by Lower India (later Known as Lowe Lintas
& Partners, India) and Re diffusion DY&R. While advertising related to Esteem, Zen and Baleno were
handled by Rediffusion. With an intention to promote the brands effectively, in 2000 Maruti decided to
appoint Capital Advertising In 2003. Maruti Suzuki came up with an innovative advertising that became
popular for its simplicity and clear message. In this ad one child plays with his toy car& when the father
asked him, he replies, ‘Kya karoon papa petrol Khatam hi nahi hota’. This ad depicted the fuel efficiency
of Maruti Suzuki.
Distribution Strategy: -
Distribution is an important marketing mix. In earlier days the consumer used to book for a car and wait
for more then a year actually buy it. Also, the concept of showroom watches non-existent. Even worse thing
was the state of the after sales services. With an objective to change this scenario & to offer better service
to customer, Maruti took initiative. To gain completive advantages, Maruti Suzuki developed a unique
distribution network. Presently the company has a sales network of 802 centers in 555 towns and cities,
provide service support of customer at 2740 workshops in over 1335 towns and cities.
The basic objective behind establishing the vast distribution network was to reach the customers even in
remote areas and deliver the products of the company. The company has formed the Dealer territories and
the concept of competition amongst these dealers has been brought about. Periodically corporate image
campaigns in all dealership are carried out. In 2003, to increase the competition the company implemented
a strategy for its dealers to increase their profitability levels. Special awards were sometimes given by
company for sales of special categories. Maruti Suzuki had given an opportunity to dealers to make profits
from various avenues like used car finance and insurance services. In 2001, Maruti started an initiative
known as ‘Non-Stop Maruti Express Highway’. As a part of this initiative Maruti developed 255 customer
services outlets along with 21 highway routes by 2001-2002. Also, with an intention to provide fast services
in less time Maruti had offered Express Services Facility. In the year 2008, Maruti had near about 2500
rural dealer sales executives, among the total 15,000 dealers’ sales executives.

31
 CONSUMER BEHAVIOUR
For any company it is important to know about the needs and requirements of their customers. It has been
found that the most searched car in India is Maruti Suzuki and it sells more than half the cars India. Maruti
Suzuki also enjoys 70 percent repeat buyer which in tune with its claim of being consumer friendly.
There are serval aspects that consumer look at with varying degree:
1. Price: - People look for affordable price. They have their budget that they can spend on a car. For
middle class Indian price is a very important factor. Maruti has been successful in catering to their
needs.
2. Mileage: - Consumers look at mileage in this scenario of rising petrol prices mileage becomes a very
important characteristic. Fuel efficiency of car is demanded by all categories of buyers.
3. Brand Recognition and Association: - Consumer likes to be associated with an established brand. It
gives them a sense of security.
4. Durability and Warranty: - A car is not purchased very often. Customers look for durability.
5. Appearance and Style: -Car is status symbol for many customers. It’s a form of portraying their class
and current financial condition. These customers give a lot of importance on the appearance and style.
Relatively young customers look more style than old ones.
6. Reliability and Trust: - A brand should be associated with trust and reliability; only then will it be
positioned on the minds of the people for a longer time and can succeed in the market.
7. Availability: - With the explosion of choices, products should be easily available otherwise
prospective customers will shift to the competitors. Easy of availability can also bring competitors
customers to our brand if they fail in this category.
8. Resale Value: -People like to change cars after certain number of years which depends on several
parameters. New car purchase is often accompanied by exchange of old car. Hence a high resale value
is what customers look for and Maruti provide this.

32
 Marketing Mix of Maruti Suzuki
The basic element of marketing mix of a company is the 4 p’s (Product, Price, Place and Promotion). The
4 p’s of marketing helps in determining the various marketing strategies adopted by the company.
Product: -
Maruti Suzuki has divided its product line into five segments as per the following table
Product Line Products
A1 (Mini) 800
A2(Compact / Hatchback) Alto, Swift, Ritz, Celerio
A3(Mid - size) Swift Dezire, SX4
Multi -Purpose Vehicle Utility Vehicle Gypsy, Grand Vitara
Omini, Eeco

The cars have also been divided into its various variants depending on the type of fuel used. Some cars
have been rolled out for use with both petrol and diesel with rising prices of petrol, there is a sharp demand
for diesel run vehicles. Also, Maruti Suzuki has two of its cars with CNG fitting too. These are vehicles
that run on CNG. Examples of CNG. Examples of CNG run cars are Alto800, Eeco, Wagon R, Celerio,
Ertiga and SX4. By the year 2015, Maruti Suzuki is planning to lunch an electronic car bye the name Swift
Hybrid, which will be a Hatchback car.
Price: -
The prices of the cars of Maruti Suzuki have generally been set to target the lower middle class and middle-
class families in India. There pricing strategy is based on their continuing vision of “Putting India Four
Wheels”. Their prices are so designed as to enable people to upgrade from 2 wheelers to 4 wheelers and
already 4 wheelers offered by the company.
In 2007, though the company changed its price strategy as it was being labeled as low- price small car
manufacturer. They lunched plans of a new car in the premium car segment, Maruti Suzuki Kizashi to
remove this label attached to the company’s reputation.
Place: -
This is one part of the marketing mix where Maruti Suzuki has an advantage over all of its competitors due
to their presence in the country for the largest time as compared to rivals. They enjoy a well distributed and
an extensive network of car sale outlets. Maruti Suzuki has two state of the art manufacturing facilities
setup in Gurgaon and Manesar to the south of Delhi. The combined capacity for the two plants 1.2 million
vehicles of an annual basis.
Some numbers showing the extensive network for Maruti Suzuki are: -
 Showroom and Car Sale Outlets - 933 covering 66R cities
 Authorized Service Stations — 1845 covering 1395 cities
 Dealership Outlets — 1101
 True Value Outlets — 151 covering 108 cities
 Express Service Stations on Highways -30
The True Value outlets were started with a view to retain the customers under exchange programs enabling
customers to upgrade their existing car models. Later these outlets were converted to be a different vertical

33
business unit of Matti Suzuki Ltd. to capture the market for pre-owned car in India based on the high resale
value of Maruti Suzuki cars giving up to 70 percent return on resale.
Promotion: -
The company has for most of its years of operation targeted the Indian middle-class families as their main
consumer. That's why promotional strategy has. always been to create an emotional connect with the
audience. Maruti Suzuki Ltd. has used various media of promotion.: -
 TV -There has been a lot of advertisement through this media as most of target audience connects
to Maruti Suzuki through its emotional TV commercials company touches everyone inspective of
their demographics, age, occupation etc. There is always an advantage when an connection is made
with the audience though audio- visual means as it is supposed to leave an ever lasting impact on
the consumer.
 Print Media — The Company has also used newspaper. magazines to promote is product to the
consumers.
 Radio —The Company also uses radio as an important media for advertising its product line. It
sponsors certain shows on air events for all radio listeners etc.
Apart from this, Maruti Suzuki Ltd, has also partner with certain TV shows like “India Got Talent” and
also provides sponsorship to certain famous events to make its Presence felt. The company is also involved
in certain CSR activities mostly around its manufacturing units to make people grow with the company.
This all helps in creating a visibility and goodwill for the company for non-existing customers and hence,
increasing the sales.

34
 SWOT analysis of Maruti Suzuki

Strength: -

 Maruti Udyog limited (MUL) is in a leadership position in the market with a market share of 48.74
 Major strength of MUL is having largest network of dealers and after sales service centers in the
country.
 Good promotional strategy is adopted by MUL to transfer its thoughts to the people about its
products.
 Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units from 7,65,533 units
in the previous fiscal. It recently attained the 10million domestic sales mark.
 Strong Brand Value and Loyal Customer Base are big strengths for MUL
 There are around 15 vehicles in Maruti Product portfolio. Has good product lines with good fuel
efficiency like Maruti Swift, Diesel, Alto etc.
 Alto still beats the small car segment with highest number of sales
 MUL is the first automobile company to start second hand vehicle sales through its True-value
entity.
 MUL has good market share and hence it’s after sales service is a major revenue contributor.

Weaknesses: -

 Low interior quality inside the cars when compared to quality players like Hyundai and other new
foreign players like Volkswagen, Nissan etc.
 Government intervention due to having share in MUL.
 Younger generations started getting a great affinity towards new foreign brands
 The management and the company’s labor unions are not in good terms. The recent strikes of the
employees have slowed down production and in turn affecting sales.
 Maruti hasn’t proved itself in SUV segment like other players.

Opportunities: -

 MUL has launched its LPG version of Wagon R and it was a good move simultaneously
 MUL can start R&D on electric cars for a much better substitute of the fuel.
 Maruti’s cervo 600 has a huge potential in tapping the middle-class segment and act as a strong
threat to Nano

35
  New DZire from Maruti will capture the market share and expected to create the same magic as
Maruti Esteem (currently not available)
 Export capacity of the company is giving new hopes in American and UK markets
 Economic growth of the country is constantly increasing and the government is working hard to
increase the GDP to double digit.

Threats: -

 MUL recently faced a decline in market share from its 50.09% to 48.09 % in the previous year
(2011)
 Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many small players
like Volkswagen- polo. Ford has shown a considerable increase in market share due to its Figo.
 Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to its respective
competitor’s segment
 China may give a good competition as they are also planning to enter into Indian car segment
 Launch of Hyundai’s H800 may result in the decline of Alto sales.

BCG Matrix of Maruti Suzuki

 BCG growth share matrix developed by Boston consulting group of USAs in the early 1970’s and
popularly known as BCG Matrix takes a two-dimensional view.

I. Industry growth rate.

II. Relative market share.

Stars: -
 Stars are the unit with a high market share in a fast-growing industry.

36
  Star represent the best profits and growth opportunities in the organizations.
 Generates high revenues and also requires huge cash for sustaining the STAR position.
 The star products of Maruti Suzuki are: - Celerio, Alto, Alto K10, Eeco, Vitara Brezza, Baleno,
Ignis, S-Cross, Ertiga etc.
Cash Cows: -
 They are the business with low growth rate and high market share.
 Generating cash more than its requirement which can be used by other units.
 The Cash Cow products of Maruti Suzuki are: - Swift, Swift Dzire and Wagon R etc.
Question Marks: -
 Question Marks are the units with low market share in a fast-growing industry.
 They required large amount of cash to grow their market share. for e.g.: Promotional expenses.
 These can be Stars or Dogs.
 The question mark products of Maruti Suzuki are: -Ciaz, Gypsy, Omni etc.
Dogs: -
 Dogs often have little future and are big cash drainer on the company.
 Generating cash just to BREAK-EVEN. It is a self-sustaining unit.
 They do not generate any profit for the overall business and hence can be sold off and hired off.
 Product is in decline stage, with no chance of revival.
 Product may be Repositioned or killed.
 The dog products of Maruti Suzuki are: -Zen Estilo, Versa, SX4, A-Star.
BCG Matrix of Maruti 800

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 RESEARCH METHODOLOGY
The purpose of methodology section in the report making is to describe the research process that is flowed
while doing the main part. This would however include the research design, the sampling procedure and
the data collection method. This section is perhaps difficult to write as it would also involve some technical
terms and may be much of the audience will nor be able to understand the terminology used. The
methodology followed by the researcher, during the preparation of the report was:
Research Design: -
A research design is purely and simply the framework or plan for a study that guides the collection and
analysis of data. The survey research was used in this project, because consumer's feedback was necessary
for obtaining the data.
Research Instrument: -
For doing the survey research, structured questionnaire with both open-ended and closed-ended questions
was used.
Mode of Survey: -
The mode of survey was personal interview with the respondents during the filling up of the questionnaires.

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 DATA ANALYSIS

1. “Maruti Suzuki is aware about the present boom in the market.” Are u agree with the statement?
a) Strongly agree
b) Agree
c) Somewhat agree
d) Disagree

10

15
45

30

strongly agree agree somewhat agree disagree

As regard market boom at the respondent’s awareness level about this nearly 45% of the respondent are
strongly agree that Maruti Suzuki is aware about the market boom in the present economy, 30% of
respondents are saying that Maruti Suzuki is aware about the market boom and the rest 25% are not agree
that Maruti Suzuki is not aware about the market boom. The awareness level is high among the middle and
upper middle class and particularly among the business class and the traders. One of the interesting findings
of the study was that many respondents confuse between inflation and market growth.

2. What method do you follow for marketing of your products?

a) Only direct sale method
b) Only indirect dealership method
c) Both

28

54

18

direct sale method indirect sale method both

39
According to the data 28% of the total employees are saying that Maruti Suzuki is applying direct sale
method for marketing. Whereas 18% of the total employees are saying that Maruti Suzuki is applying
indirect sale method for marketing. And the rest 54% of employees are saying that Maruti Suzuki is
applying both of these methods.
3. “Advertising is an effective method of selling the automobiles product.” Are you agree with this
statement?
a) Strongly agree
b) Agree
c) Somewhat agree
d) Disagree

10

15

55
20

strongly agree agree somewhat agree disagree

According to the data 55% of the employees are strongly agree that advertising is an effective method of
selling the automobiles product. 20% of the employees are agree with the statement. And the rest 25% of
the employees are disagree with the statement.
4. What type of advertising will be helpful in increasing sales ability of your auto products?
a) Product specific
b) Company specific
c) Personality oriented
d) Do not say/cannot say

27
34

17
22

product specific company specific personality oriented can not say

40
According to the data 34% of the respondents are saying that the advertising must be about product.
Whereas 22% of respondents are saying that the advertising is about company, 17% of respondents are
saying that the advertisement must be personality oriented.
5. Do you think that branding helps in the marketing of your automobile’s products?
a) Yes
b) No
c) Cannot say

34
39

27

yes no cannot say

According to the data 34% of employees are saying that branding helps in the marketing of automobiles product.
27% of the employees are saying that branding does not helps in the marketing of automobiles product. The rest
39% of the employees does not respond.

OBJECTIVE OF THE STUDY

The present study of the marketing strategy of the Maruti Suzuki (Pvt.) limited revolves around the
following broad objectives: -
I. To study the evolution and growth of the Maruti Suzuki (Pvt.) Limited in the context of the
automobile revolution in India.
II. To study the growth strategy of Maruti Suzuki (Pvt.) Limited and the marketing methods followed
by it in this regard.
III. To study the small car revolution in India and the contribution of the Maruti Suzuki (Pvt.) Limited
to it.

41
 SOURCE OF DATA
Primary Data: -
Primary data is that kind of data which is collected directly by the investigator himself for the purpose of
the specific study. Primary Data is collected by the investigator through interviews of company employees,
vendors, distributor etc. Data such collected is original in character. The advantage of this method of
collection is the authentic. A questionnaire of about 50 questions was made and it was given to the dealers
to fill it up for our research. The research was a kind of conclusive research as it helps in the testing of
hypothesis. The method of sampling was the Random method as it is unbiased.
Secondary Data: -
When an investigator uses the data that has been already collected by others, is called secondary data. The
secondary data could be collected from Journals, Reports, libraries, magazines, fair & conference and other
publications. The advantages of the secondary data can be —ft is economical, both in terms of money and
time spent. The researcher of the report also did the same and collected secondary data from various internet
sites like www.google.com, www.airtel.com, www.hutch.co.in and many more. The researcher of the report
also visited various libraries for collection of the introduction part.

CONCLUSION
Automobile market today is very dynamic & competitive with a range of pairs and products. There are
many reasons for the impressive growth of the Indian passenger’s car industry. Some of these are easy
availability of vehicles finance, attractive rate of interest and convent installments in today’s cutthroat
competition it is very difficult to survive. Maruti Suzuki India Limited is a leading company in India
automobile sector which occupies prominent place due to its innovative strategic marketing promotional,
brand positioning, advertising strategies.

Bibliography
Books Referred: -
 Principles of Marketing by Philip Kotler
Websites: -
 www.scribd.com
 www.slideshare.net
 www.google.com
 www.wikipedia.org
 www.marutisuzuki.com\

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 Annexure
Maruti Suzuki (India) Limited
Odyssey Motors, Sambalpur

Questionnaire
1. “Maruti Suzuki is aware about the present boom in the market.” Are u agree with the statement?
a. Strongly agree
b. Agree
c. Somewhat agree
d. Disagree

2. What method do you follow for marketing of your products?

a. Only direct sale method
b. Only indirect dealership method
c. Both

3. “Advertising is an effective method of selling the automobiles product.” Are you agree with this
statement?
a. Strongly agrees
b. Agree
c. Somewhat agrees
d. Disagree

4. What type of advertising will be helpful in increasing sales ability of your auto products?
a. Product specific
b. Company specific
c. Personality oriented
d. Do not say/cannot say

5. Do you think that branding helps in the marketing of your automobile’s products?
a. Yes
b. No
c. cannot say

43