A Case study on Maruti Suzuki

India: Rural Strategy

(08) Alisha Anand
(23) Jaydeep Kumar Singh
(24) Kamlesh Porua
(45) Prince Sharma
(58) Shambhawi Kumari
(80) Vinay Pathak
(105) Meghna Mukherjee
(130) Shubham Jain
Indian Automobile Market
• Till 1970 Indian Automobile Industry was in sleeping mode.
• In year 2000, there were several policy changes which brought Indian
Automobile Industry at a dominant position in the world market.
• The Indian Automobile Industry turnover touched $40 billion dollars
and is expected to reach $115 billion in 2020-21.
Indian Automobile Market
As per the Confederation of Indian Industry (CII)
• Largest three wheeler market
• Second largest two wheeler market
• 4th largest tractor market
• 5th largest CV market
• 10th largest passenger car market
Barriers
• License Raj system, expansion restriction
• Low economic profile of Indian consumer
• Quantitative restrictions on imports
• Cultural barrier
Offshoring
• Maruti Udyog Ltd (MUL) was established as a government company
• Suzuki Motor Corporation (SMC) of Japan entered into joint venture
agreement with MUL in 1982.
• Maruti chose Suzuki due to unparalleled expertise in small cars.
• Suzuki choose India taking following factors into consideration:
• Indian economy had a steady growth rate
• Car per capita ratio was among the lowest in the world
• Rising income of the Indian population
Market Share
Market share 2018 Market share 2017
2.9 2.4 1.2 1.7
2.7 3.5
4.5 4.3
5.2 5.5
7
5.9

51 49.7
7.3 7.5

16.2 16.4

Maruti Suzuki Hyundai M&M Maruti Suzuki Hyundai M&M

Tata Honda Toyota Tata Honda Toyota
Ford Renault Nissan Ford Renault Nissan
Consumer Buying Behaviour
• Buying a car is the second most important purchase decision that
people usually make.
• Parameters of consumer behaviour
• Product and Technology Parameter
• Demographic Parameter
• Psychographic Parameter
• Economic Parameter
• Political Parameter
• Social Parameters
Consumer segment in Passenger
Car
• Sports Utility Vehicles and Multi Utility Vehicle segment
• Luxury and Coupe Subsegment
• Compact Car Segment
• Micro Car Segment
 Strategies employed by Maruti
• According to census 2011, 68.84% population resides in rural area .
• According to Govt. urban area is defined as:
• A minimum population of 5000 persons.
• 75% and above of the male main working population being engaged in non-
agricultural pursuits.
• A density of population of at least 400 persons per sq.km.
• To penetrate this rural market,
• Cost effective market coverage (Ghar Ghar Mein Maruti )
• Efficient distribution channel (Mera Sapna,Meri Maruti)
• Targeting the right market (Video on Wheels)
• Exchange Sales
• Role of family in consumer behaviour:
• Size
• Marital Status
• Culture/Attitude/Opinion
1st preference to influence the
choice of purchasing car
Percentage
35
30
25
20 Percentage
15
10
5
0
Cost Feul eff. Exterior Safety Brand
 Interiors Safety measures
40
35 10 Central locking
30 (manual)
25 Central locking
20 37.5 with remote
20
15 Percentage Low feul
10 warning lamp
5 Day & light
mirror
0
Child safety
AC w xit at l t
d o /e Se Be locks
win rt y 7.5 25
n
er E
w
Po