Maruti Suzuki Assignment

By – Rahul Munjal
(18BSP0875)

Maruti Suzuki is one of the most trusted brand and customers are emotionally attached with
Maruti Suzuki Brand. This is quite evident that Maruti Suzuki is leading in its variety of
‘Hatchback’ cars. These for all this while they were targeting the group of people who are
middle income, but Maruti Suzuki has slowly entered and is steadily growing into the category
of ‘Sedan’ Vehicles. Though Maruti has launched luxury cars as well it is still considered as
middle man’s brand. Maruti Suzuki is giving very tough competition to its competitors like
Tata Motor, Hyundai Motor etc.

Competitive advantage in the Marketing strategy of Maruti Suzuki –

With over 30 years of presence in the country, there’s a brand trust among the customers. Also,
with two manufacturing unit in the country, one in Gurugram and Manesar gives the brand
edge over its competitors.

Factors which sets apart Maruti Suzuki from its competitors include

 The Quality Advantage

 Brand Trust- A Buying Experience Like No other
 Quality Service Across 1036 Cities
 The Low cost of Maintenance Advantage
 Lowest Cost of Ownership
 Technological Advantage

MSF continues its strong domination both in Indian market and in exports as well with the
company selling over 1.64 million vehicles to bring its market share close to 50% in the
domestic market and exporting 4-wheelers to over 125 countries globally to become the largest
passenger cars exporter from India last year, dethroning Hyundai Motors India Ltd. which now
stands fourth after Volkswagen and General Motors.

The company exported 57,300 units in the April-September period last year with a growth of
6% from 54,008 unit a year ago. MSI has also not only managed to sustain its huge sales
numbers but has also increased its market share both in the urban and rural market.

Various models of maruti suzuki in market: -

 Hatchback: – Maruti 800, Wragon R, Alto, Swift, Estilo, Ritz, A-star
 Sedan: – SX4 & Dzire
 SUV: - Grand Vitara, Maruti Gypsy, EECO
Brand positioning –
 Remarkable Growth
If we observe Maruti as a brand over the years we can note a remarkable phenomenon or
strategy from their growth in past years. It first became popular and still is with its launch of
Maruti 800 many years back. They targeted middle income groups, who were first time car
buyers, looking for low ownership cost with basic need of a family vehicle and the price was
approx. 2lacs. After this they never looked back. Then came the other various hatchback
models of Maruti like Zen, Wagon, and Alto etc. These Cars again targeted the middle-income
groups, but this time the positioning was not as the basic need, it was comfort at comparatively
lower price, of 4 – 5 lacs. Then putting Yet another Step forward, they came into Sedan’s with
a price of 8-9 lacs these Sedans targeted SEC A as well as B (up till a certain extent) MARUTI
KIZASHI. It has been positioned as the sports sedan; it is fairly high on cost with a Price of
approx. 17 to 19 Lacs. This Sedan is targeted towards the SEC A with a luxury touch to it. By
this way, Maruti Suzuki has been able to target and provide a solution to various types of car
buyers, who basically are the different targeted groups according to its Database. Maruti Suzuki
seems to have efficiently planned and structured to connect its brand to masses as not only an
‘Economic Brand’ but also a ‘Luxury Brand’ turning it into an all-rounder.
 Price is no longer king: Maruti’s different strategy

Cars are no longer just about 'kitna deti hai' (fuel efficiency) and therefore market leader Maruti
Suzuki has changed its launch strategy. Showcasing the vehicle weeks ahead of the launch
without talking about the pricing and mileage is getting important to communicate in details
the evolving features and design to the target segment in a crowded car market.

Brand repositioning –
 Maruti Suzuki on a major image makeover drive to woo the GenNext
The country’s oldest car maker is trying hard to get younger. From changing its design
language to jazzing up showrooms and integrating latest technology with its vehicles, Maruti
Suzuki is going all out to become a trendy, youthful brand.
That’s the auto major’s vision for 2020. But the big question is: can Maruti do it?
“Being an affable brand was important in the past. Now you also need to appeal to the flashy
guy who wears his brand on his sleeve. I don’t think we are shy of the mass market tag. We
have to show to people that there is aspiration in this tag,” says Vinay Pant, Associate Vice-
President (Marketing), Maruti Suzuki.
While Maruti has been trying to attract young customers for a long time, what lends urgency
to its efforts is the rapidly reducing average age of car buyers.
For the company itself, the average buyer is now 37 years old compared to 43 years old in
2010. And what should worry Maruti is the fact that the average buyer is much younger for
rivals like Hyundai India and Honda Motors.
 Four-pronged strategy
In contrast, Maruti’s buyers have stayed with it for three decades, upgrading their vehicles. But
their children are not necessarily patronising brand Maruti. And it is this younger audience that
Maruti wants to tap through its four-legged strategy. “We are focusing on design, technology,
engineering and experience,” Pant says.
The change in Maruti’s strategy is already visible in its design language. Its Vitara Brezza,
rolled out in March 2015, comes in a range of dual tone colour schemes, a first of its kind in
the segment.
Baleno, launched in October last year, is based on the liquid flow design – curvy, smooth and
flows in a natural progression from front to back.
 Digital connects
“Our newer designs are showing repercussions,” Pant says.
Maruti’s other focus area is technology and its integration with vehicles to catch the eyeballs
of GenNext. It is the first car maker in India to offer Apple CarPlay, an interface that allows
the driver to use one’s iPhone through the car’s in-built display and voice control system to get
directions, make calls, send and receive messages and listen to music and audio books.
“The younger buyer is looking at vibrancy, digital connect and this is what we are offering
him,” Pant says.
 Nexa showrooms
For improving the experience of customers considering a Maruti car, the company has set up
upmarket Nexa showrooms, which offer luxury car buying experience. Between Baleno and S-
cross, 10 per cent of the total volume is coming from Nexa.
V G Ramakrishnan, MD and managing partner, Avanteum Advisors, says Maruti needs to have
a robust portfolio of cars between ₹6 lakh and ₹10 lakh as that is the range within which buyers
in their mid to late twenties usually make car purchases.
And that has been a traditionally weak point for Maruti, best known for its entry level cars.
“The right products can convey youthfulness. A company can attract younger clients on the
basis of product features that are relevant for today’s customers,” he says, adding that Maruti
seems to be speaking the language of the youth going by the design and features of its recent
launches.
“The youthful look oriented on styling, top-end audio system, options for infotainment and
interconnectivity have led to a fantastic package,” he adds.
But while products may exist in its portfolio, brand consultants believe Maruti’s marketing and
advertising strategy needs to be more comprehensive.
“Maruti is a brand you trust but it is also fuddy duddy – a brand meant for the older lot,” says
Sunil Alagh, founder and chairman of consulting firm, SKA Advisors.
Their advertising, compared to others, is not contemporary and trendy at all.
“Their ads look old and straightforward,” he says, adding that there is no point in having great
products without creating the right imagery around them.
So, he advocates a 360-degree approach encompassing, TV, digital, and so on.
“It won’t give immediate results as image building takes a minimum of 18-24 months. It is a
strong company and a strong brand and there is no reason why they can’t do it,” Alagh says.
And when Maruti can master that strategy, not only will it have younger customers, it can hope
to increase its market share well beyond the present 47 per cent.