Maruti Suzuki

(Kizashi)

PGDM – C
Integrated Marketing Communications
Faculty – Neha Singh

Prepared By
Naran Vejani
(02-12-18)
 Table of Content
Sr. No Particulars Page
No.

1 Executive Summary 3

2 Integrated Marketing Communication Plan for Maruti Suzuki 3-4

3 Context Analysis 5-6

4 SWOT Analysis 6-7

5 Marketing Strategy 7

6 Communication Strategy 7-8

7 Communication Mix 8-9

8 Evaluation 9

9 Conclusion 10
 Executive Summary

The marketing communication has a significant function for Maruti Suzuki plan since we need to manage
the concept and make all aspects of marketing communication such as advertising, sales promotion,
public relations, and direct marketing work together as an integrated force. Furthermore, it is general
argue that the branding is related to get companies’ target audience to select their brand over the highly
competition, but it is about capture the prospects to recognize their brand as the only one in their mind
and perception that could deliver them the best solution to their problem. However, to succeed in doing
that, we must to realized and understand the needs and wants of our customers and prospects. As a
consequence of integrate marketing communication is very important to our branding, advertising and
marketing strategies in all attribute areas of public contact. Brand like Maruti Suzuki has instituted a
strong in the premium segment market, consequently; company has to invest in communications due to
the fact that Maruti Suzuki needs to formulate prospects to aware its product and emphasis on its key
though “VALUE” by communicating through functional and emotional of its product attribute.

Campaign for Kizashi will convey attributes like successful, authoritative, fun, performance.

In addition, developing communications strategies could provide company’s knowledge and help Maruti
Suzuki understand its market potential in a premium segment effectively.

1.0 Integrated Marketing Communication Plan for Maruti Suzuki

1.1 Company Background

Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company, accounting
for over 50 per cent of the domestic car market. The company offers full range of cars from entry level
Maruti Alto to stylish hatchback Alto k10, celerio, Swift, Wagon R, baleno and sedans DZire, S-Cross,
Ciaz, and Sports Utility vehicle Brezza. The company is a subsidiary of Suzuki Motor Corporation of
Japan. The Japanese car major held 56.21% stake in Maruti Suzuki as on 31 December 2018.

1.3 Company Values

 Responsible
 Dynamism
 Open
 Efficient
 Reliable

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

SIAM or Society of Indian Automobile Manufacturers divides the Indian passenger vehicles in the
segments A1, A2, A3, A4, A5, A6, B1, B2 and SUV. The classification is done solely based on the length
of the automobiles. The details of the segments are mentioned as below

Car Segment Length of the car/Model type Car model belonging to the segment

A1 Up to 3400mm Nano

A2 3401 to 4000mm Alto, Hyundai i10, Wagon R

A3 4001 to 4500mm vento, Ciaz, Dzire, honda City

A4 4501 to 4700mm Corolla, Octavia,

A5 4701 to 5000mm Accord, Camry, audi a7

A6 More than 5000 mm Mercedes S class

B1 Vans Versa, Omni

B2 MUV/MPV XL6, Innova

SUV SUV Brezza, CRV, Compass, XUV 500

Present Situation

Maruti Suzuki is the market leader in the A2 and A3 segments. In the A2 segment Maruti has a market
share of 53.3% and in the A3 segment it has a market share of 42.7%. Maruti is currently is exiting the
A1 segment by phasing out its 800 model. It wants to become a company which is capable of satisfying
the needs of customers across segments (Full market coverage, segment by segment invasion plan). The
next logical step that Maruti should take to achieve this objective is to enter into the A4 segment.
Breaking into the segment may take time but with the high growth rates expected in this segment it is
an opportunity that should not be wasted. Maruti Suzuki would be following a product development
strategy where they would be introducing a new product into the existing market.

[Source: www.thehindubusinessline.com/iw/2009/09/13/stories/2009091350441100.html]

1.4 Key Issues

The challenge from the biggest carmaker in India comes at a time when the company's product portfolio
is all set to transition to BS6 and this will also change the outlook of the offerings in the country. While
diesel engines have taken a back seat as far as Maruti Suzuki is concerned, the company is looking to
push for hybrid cars in the country, for which local technical know-how as also manufacturing will prove
to be beneficial.
2.0 Context Analysis

India motor vehicle industry overview

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 Rs.1,49,424 crore (US$ 21.38 billion) between April 2000
and March 2019.

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) centres as
well as a National Automotive Board to act as facilitator between the government and the industry.
Under (NATRIP), five testing and research centres have been established in the country since 2015.
NATRIP’s proposal for “Grant-In-Aid for test facility infrastructure for Electric Vehicle (EV) performance
Certification from NATRIP Implementation Society” under FAME Scheme which had been approved by
Project Implementation and Sanctioning Committee (PISC) on 3rd January 2019.

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. On 29th July 2019, Inter-ministerial has sanctioned 5,645 electric buses for 65 cities

Overall automobile exports reached 4.63 million vehicles in FY19, implying a CAGR of 8.11 per cent
between FY13-19. 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.

2.1 Consumer Behavior

In the developed countries today, consumers are demanding for more customized and luxurious
automobiles each day. The total worldwide sales of luxury automobiles are about 1.5 million units with
major markets being U.S.A, Japan and Germany (Newman 2010)

Though the developing countries are yet to catch up with this trend of more customized automobiles,
there has been a notable increase in demand for less expensive models with low fuel consumption rates
( Littman 2010)

Research also that consumer behavior in this industry directly depends on promotion of products
(Smith). The way in which products are promoted directly influences consumer behavior, with the
internet being believed to have the most impact (Davis 2010).

3.0 SWOT Analysis

Strengths

 Maruti Suzuki is the largest passenger car company in India, accounting for around 45% market
share
 Over 12,000 people are employed with Maruti
 Good advertising, product portfolio, self-competing brands
 Largest distribution network of dealers and after sales service centres
 Strong brand value and strong presence in the second hand car market
 Having different revenue streams like Maruti finance, Maruti Insurance and Maruti driving
schools
 Over 700,000 units sold in India annually including 50,000 exports
 Maruti Suzuki launched NEXA showrooms to cater to its premium cars market
 The company has been recognized by several awards in the automobile segment in India

Weaknesses

 Low interior quality inside the cars when compared to quality players like Hyundai and other
new foreign players like Volkswagen, Nissan etc.
 Inability to penetrate into the international market
 Employee management, strikes, worker wage problems have affected Maruti's brand image in
the past

Opportunities.

 Developing hybrid cars and fuel-efficient cars for the future can be an opportunity for Maruti
Suzuki
 Maruti can target tapping emerging markets across the world and building a global brand
 Fast growing automobile market and increased purchasing power

Threats

 Government policies for the automobile sector across the world

  Ever increasing fuel prices
 Intense competition from global automobile brands and cheaper brands can hurt Maruti
Suzuki's business
 Substitute modes of public transport like buses, metro trains etc

4.0 Marketing Strategy

With the Automotive market in India appears to be a red ocean market with the present lot of National
and International players companies like Toyota, Maruti Suzuki, MG, Volkswagen, Jeep, Hyundai, Fiat,
Tata Motors, Mahindra, Honda & Maruti Suzuki are giving a stiff competition to the brand with everyone
biting upon each other’s market share.

Maruti Suzuki over the years has very strongly been associated with small cars which have helped its
competitors take a massive edge in the premium car segment. People buying entry-level cars are very
different from the ones preferring premium vehicles as Premium is not just price but also feel and
features for the customers.

The launch of Nexa for the company is a step to increase market share in premium car segment through
re-branding. Nexa now has 280 showrooms in the country and has already sold 3,00,000 vehicles and is
expecting to sell 3,00,000 more vehicles this fiscal year.

with Nexa Maruti Suzuki could show Kizashi as premium model which sets a benchmark in its Class, with
that level of power output it could clearly stand out amongst competitors.

5.0 Communication strategy

Identifying the target audience

Based on the usage of the product I feel that Maruti Suzuki should target both current and new users in
the segment.

Brand Awareness

Ensure that the customer identifies the name “Kizashi” with the A4 segment cars in India so that it could
lead to future purchase

Brand Attitude - Ensure that the customer perceives that the brand would be able to satisfy his/her
current relevant needs. The communication strategy should ensure there is an alignment between what
the company is selling (an emotionally appealing sedan for active people) and what the customer
perceives the product to be.

5.1 Communication design

 Message strategy

The primary of Maruti Suzuki is to enter the A4 segment and in the long run be a car
manufacturing company which can cater to the needs of the consumers in all the car segments.
 Emphasis should be given to both the parent brand Maruti Suzuki and the brand Kizashi. More
emphasis should be given to the points of difference that Kizashi has over its competitors.

 Creative Strategy

The creative strategy should be a combination of both informational appeals and

transformational appeals. The company should communicate the benefits of the car such as
power, speed and superior technology at the same time it should also communicate the kind of
person who would use this car. (successful, professional, exciting, fun)

 Message Source

Communicating through unknown people would be the ideal strategy for this segment. The
customer must be able to see him/herself in the shoes of the source. Communicating through a
celebrity is not required.

6.0 Communication Mix

Advertising

TV advertising

 Ads should be played during prime time in English news channels, popular English TV serials.
This is working on the assumption that the probability of the target customer viewing the ad is
the highest during prime time.
 The ads should also be played during non-prime time hours in the nation’s top business
channels. These ads should be more towards the transformational appeal of the customer

Print ads

 Ads should be published in English newspapers and popular English business and current affairs
magazine. These ads should stress on the actual product benefits

Internet ads

 Internet is a major source of information for the customer. The company needs to promote its
car in various automobile websites and have a dedicated site for handling all the potential
customers.

Sales promotions

 Contests games
o The Company should sponsor certain contests in cricket or football shows. The contest
should be in line with the image the brand wants to portray
 Premiums and gifts
 o All the purchases that happen in the 1st year should be accompanied with a gift basket.
The contents of the gift basket should have some value to the potential buyer.
 Fairs and trade shows
o This is something Kizashi has already done. It was showcased in the 2010 Auto expo in
Delhi.
 Events & Experience
o The calendar year is filled with sporting events such as IPL and the T 20 cricket world
cup. Kizashi should sponsor the man of the series award in one of these events.

6.1 Activities to be undertaken by the marketing staff

The marketing staff shall have the responsibility of doing the following:

Ensuring that the official company website is up to date with the current products and services of Maruti
Suzuki and any other issues affecting the company.

Giving press release on a continuous basis and in case of any crises, the frequency of such would be
increased to address the maters at hand.

Developing effective catchy and attractive media adverts to be distributed to different global and
regional media houses and national or regional newspapers.

Developing, printing and distributing company magazines, brochures, catalogues and fliers regionally
and globally.

Carrying out a market survey to find out the consumer perceptions on the company products and their
needs.

Organizing seminars and forums where the current and new company products are showcased.

Mounting billboards and LCD screens in major cities around the world that advertise the company
products.

Sending target emails to potential customers or clients.

7.0 Evaluation

Since this is an annual market plan, it will be evaluated wholesomely at the end of the year. However,
there shall be quarterly evaluations in terms of projected sales, market share gained and consumer
confidence achieved for each quarter. Evaluation shall be in terms of:

 The market share gained

 Volumes of sales achieved
 Client feedbacks
 Responses produced as a result of the marketing activities; whether positive or negative and the
extent of each.
 Any changes in the sales conversion rates
 Returns on investment; whether positive or negative.
9.0 Conclusion

Thought the company has undergone hard moments caused by the massive recalls, loss of consumer
confidence, global economic crisis among other factors, the above marketing plan will put Maruti Suzuki
Motor Corporation at a competitive edge in comparison to its main competitors such as Toyota,
Hyundai, Volkswagen and Skoda to have its global image and gain consumer confidence in premium
products and in turn increase its sales margins. With this Integrated marketing communication strategy
Maruti Suzuki could penetrate premium segment.