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Marketing Plan of MSIL Jitendra kumar A 4027842
Table of contents
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Marketing Plan of MSIL Jitendra kumar A 4027842
1 Marketing Plan: - µA strategic plan is a plan which cover a period beyond the next fiscal
year. Usually this is between 3 and 5 years. A tactical plan covers in quite a lot of detail the
actions to be taken, by whom, during a short term planning period. This is usually for one year or
less¶ by M. Mc Donald Source [from class notes ]
Product
*ere we will discuss about the Marketing plan of Grand Vitara model of µMaruti Suzuki
India ltd¶ (MSIL). Grand Vitara was launched in ndia in 2004, but it could not find it pace
with current competitive market, after re-launching it in July 2009 MS is trying to gain
competitive edge in Sport utility vehicle known as (SUV) car segment as in small car because
MS is the Market leader in ndia in small or medium car segment.
2 INTRODUCTION
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Marketing Plan of MSIL Jitendra kumar A 4027842
The company plans to expand its manufacturing capacity to 1.75 million by 2013. îor this the
company will be investing around Rs. 60 ×illion (Rs 6,000 ërores) over the period till 2013.
The company offers a wide range of cars across different segments. t offers 14 brands and over
150 variants - Maruti 800, people movers, Omni and eco, international brands Alto, Alto-K10,
A-star, WagonR, Swift, Ritz and stilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4 and
Swift DZire n an environment friendly initiative, in August 2010 Maruti Suzuki introduced
factory fitted ëNG option on 5 models across vehicle segments. These include eco, Alto,
stilo, Wagon R and Sx4.
n fiscal 2009-10 Maruti Suzuki became the only ndian company to manufacture and sell One
Million cars in a year.
Maruti Suzuki has employee strength over 7,600 (as at end March 2010),
n 2009-10, the company sold a record 10, 18,365 vehicles including 1, 47,575 units of exports.
With this, at the end of March 2010, Maruti Suzuki had a market share of 53.3 per cent of the
ndian passenger car market (including ë segment).
Maruti Udyog Ltd. (old logo) Maruti Suzuki India Ltd. (current logo)
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Marketing Plan of MSIL Jitendra kumar A 4027842
n all, over six million Maruti Suzuki cars are on ndian roads since the first car was rolled out
on 14 December 1983.
Maruti DNA
Just two years back, Maruti Suzuki inaugurated its state-of-the-art new engine plant at Gurgaon.
This new technology plant churns out K-series engines that are lean, highly fuel efficient and
environment friendly. The introduction of new technology engines is in line with the company's
commitment to offer latest technology in full range of models. The K-series engines presently
power the Alto K10, A-star, Ritz, stilo, WagonR, Swift and Swift Dzire models. The K-series
engines would soon be extended to other models in the Maruti Suzuki range. Maruti Suzuki will
be investing around Rs 1,250 ërore (Rs 12.5 billion) on capacity expansion of the K-series
engines. The expanded annual capacity will be over 7 lakh units from the present 5 lakh units.
This will be a progressive investment to be completed by 2012.
Over the quarter century of its existence, Maruti Suzuki's contribution as the growth engine for
the ndian automobile industry is widely acknowledged. Maruti Suzuki has impacted the lifestyle
and psyche of an entire generation of ndian middle class through the quality of its products and
services that are in direct sync with the needs of the ndian populace.
http://www.marutisuzuki.com/about-us.aspx
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Marketing Plan of MSIL Jitendra kumar A 4027842
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Marketing Plan of MSIL Jitendra kumar A 4027842
AWAITED MODELS
Maruti Escudo Maruti Kazshi Maruti Suzuki Splash
4 Vision :-
To be the eader in the ndian Automobile industry by creating ëustomer Delight, Shareholder's
Wealth; a pride of ndia.
Maruti Suzuki believes their core values drive them in every endeavor.
Core Values
ëustomer obsession
Source http://www.marutisuzuki.com/newsroom.aspx
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Net Sales
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GURGAON
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6 SWOT ANALYSIS
STRENGTHS :- WEAKNESSES
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cco
RTZ
SWîT Dzire
LO
W
Busi
ness
Gro
wth SX4
rate CASH COWS DOGS
HIG Omni Versa
H
A TO
Grand Vitara
Wagon R
Swift
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Marketing Plan of MSIL Jitendra kumar A 4027842
Product Strategies
Cash cow - ëash cows provide the bread and butter profits of a company. ×ecause the market is
relatively static they require few fresh injections of capital and the net effect is a positive cash
flow. Advertising and promotion will be required to put fresh life into them from time to time.
Whilst they enjoy competitive positions today, their markets are mature and may not be
attractive in the longer term. Maintain a profitable position, and look at today's earnings rather
than growth examples are Alto, Wagon R and Swift.
Stars - Stars have competitive positions in high growth markets. They take up large sums of cash
for investment purposes, but also yield high cash returns. ou need to take an aggressive
marketing approach and if possible increase market share, as stars have the potential to generate
significant earnings now, and in the future examples are Ecco, Swift Dzire and SX4.
Dogs - Dogs have a low market share in a slow growing market. They are likely to generate a
negative cash flow. *ow you deal with these products depends on how much cash you need to
spend to maintain profits. ou could remove them, minimize marketing spend or raise/maintain
prices examples are Omni, Versha, Grand Vitara.
Question marks - Question marks have relatively low market share in fast growing markets.
ou need to decide which of these are most promising and worth investing in, and which you
should manage for cash today examples are A Star, Ritz.
8 Competitors: - As Maruti is the market leader in small car segment so there are so many
competitors in small & medium car segment like *yundai, Tata, Mahindra, îord, GM, *onda.
×ut for SUV it is having different competitors as listed in Table
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Marketing Plan of MSIL Jitendra kumar A 4027842
x show
Maker & Transmission ngine
Model hoto îuel conomy room Delhi
Model Type power
price in Rs.
10.3 km/l for
variant with
MARUT 5-speed manual automatic
16.4 akh
SUZUK transmission or a transmission 119.5
to
Grand 4-speed automatic and 11.2 km/l bhp
18.6 akh
Vitara transmission for variant
with manual
transmission
Competitors
Turbocharged
diesel VGT nline-
îORD 7/10 km/l 14.72
4 engine, 5-speed 141 bhp
ndeavour (city/highway) akh
manual
transmission
Turbocharged
MTSU×S diesel VGT nline-
8/11 km/l 19.80
* 4 engine, 5-speed 117bhp
(city/highway) akh
ajero manual
transmission
17 akh
*ONDA 2.0 i-VTë and 10/1.51 km/l 141-151
to 19
ëR-V 2.4 i-VTë (city/highway) bhp
akh
http://www.carazoo.com/suv/suv0701200806/*onda-ëR-V
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Marketing Plan of MSIL Jitendra kumar A 4027842
1 Cost leadership: - Attempts to control the market through being low cost producer. Maruti is
having costing advantage over its competitors as it is expertize in low cost production by the
production of M800, Alto and Ritz, because Maruti is having good manufacturing capability in
terms of Quantity, Quality, nnovation as it is using state-of-the-art technology to produce car.
×enefits are in terms of time saving, cost saving, Good quality, ×rand image.
2 Differentiation: - This aims to offer products, which are recognize as unique in areas, which
are highly valued by the customer. Grand Vitara is the differentiation product of Maruti Suzuki
in terms of ×rand image & value for customers as it is a unique product in SUV segment with 5-
speed manual transmission or a 4-speed automatic transmission and with a fuel efficiency of 10.3
km/l for variant with automatic transmission and 11.2 km/l for variant with manual transmission
and with 119.5 bhp power generation.
3 Focus:-This uses either costs or differentiation but rather than concentrating on the entire
market. Maruti Suzuki main focus is cost reduction but apart from cost reduction image now
Maruti also want to earn profit from its brand value which very strong in ndian market by
entering SUV market
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Marketing Plan of MSIL Jitendra kumar A 4027842
Zen, WagonR,
10 Product Life cycle A-Sta , WagonR, Swift
Swift Dzi e
and Vita a,
Baleno, Omni
Ecco, Ritz
The 'roduct ifecycle' demonstrates that the profitability and sales position of a product can be
expected to change over time thus helping us to make sales and volume forecasts.
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Marketing Plan of MSIL Jitendra kumar A 4027842
The marketing mix of a company consists of the various elements as follows which form the core
of a company¶s marketing system and hence helps to achieve marketing objectives. The Service
marketing mix in the case of MARUT SUZUK is as below
Product: - MARUT SUZUK places considerable emphasis on developing new products which
customers want. Market research establishes exactly what this is. *owever, customers¶
requirements change over time. n order to meet these changes, MARUT SUZUK has
introduced new products like SWîT Dzire, RTZ, A-STAR, and phased out old ones like
OMN, ×A NO, M 800 and will continue to do so. ëare is taken not to adversely affect the
sales of one choice by introducing a new choice, which will increase sales from the existing one
(trade off). MARUT SUZUK knows that its car model will vary in popularity. Their ability to
generate profits will vary at different points in their cycle. n ndia McDonalds has a diversified
product range focusing more on the medium & small car segment as most consumers in ndia are
within 7 ack range.
Price: - The customer¶s perception of value is an important determinant of the price charged.
ëustomers draw their own mental picture of what a product is worth. A product is more than a
physical item. The danger of using low price as a marketing tool is that the customer may feel
that quality is being compromised. t is important when deciding on price to be fully aware of the
brand and its integrity. On the other hand if price are too high beyond the reach of customer than
there will also be difficulty to attract customers to buy the products as Maruti is selling cars from
Rs. 260520 (MARUT A TO X ×S V) to Rs. 1826660.07 (GRAND VTARA AT)
,majority are small & mid segment & within 8 ack rupee cost but only GRAND VTARA is
having cost above 15 ack .This has been done to satisfy consumers which want different price
perceptions.
Promotion :- The promotions aspect of the marketing mix covers all types of marketing
communications One of the methods employed is advertising, Advertising is conducted on TV,
radio, in cinema, online, using poster sites and in the press for example in newspapers and
magazines. Other promotional methods include sales promotions, point of sale display,
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Marketing Plan of MSIL Jitendra kumar A 4027842
merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing
communications is to develop a campaign which uses several of these methods in a way that
provides the most effective results. îor example, TV advertising makes people aware of car and
press advertising provides more detail about the products. This may be supported by in-show
room promotions to get people to try the product and a collectable promotional device to
encourage them to keep on buying the item. Now a day¶s live demo is in used for test drive
romotion can be done on small car screen by stylish sticker as ³My next will be GRAND
VTARA¶¶ .So more people will be aware by this type of advertisement. romotion can be done
by digital media like hording sign on public places.
Place: - lace, as an element of the marketing mix, is not just about the physical location or
distribution points for products. t encompasses the management of a range of processes involved
in bringing products to the end consumer. MARUT SUZUK outlets are very evenly spread
throughout the whole country making them very accessible to every ndian. ong network dealer
chain of MARUT SUZUK products further convenient to the consumers in small cities as well.
GRAND VTARA should be available on all dealership stores in all ndia network.
Process:-The car manufacturing process at MARUT SUZUK is completely lean. They are
using most recent technology to manufacturing car in ndia; some of them are very latest as
Suzuki is not using in urope also as fully robotic paint shop, Welding robot for body. oke
yoke installed on every work station, people are encouraged to participate in suggestion scheme
or Kaizen activity.
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Marketing Plan of MSIL Jitendra kumar A 4027842
Physical evidence: - Maruti Suzuki ndia imited, the largest passenger car manufacturer in the
country, was awarded with the "Significant Achievement in Sustainability Award" in ë Të
Sustainability award ceremony. The Sustainability Awards, instituted by the ë-Të ëentre of
xcellence for Sustainable Development, recognize companies for their achievement in the
sustainability parameters of social, economic and environmental
er vehicle electricity consumption of Gurgaon plant reduced by 20% since 2000-01 and of
Manesar plant by 38% since 2007-08
er vehicle water consumption of Gurgaon plant reduced by 60% since 2000-01 and of
Manesar plant by 54% since 2007-08.
Maruti Suzuki is a zero waste water discharge company.
9 car models comply with nd of ive vehicles ( V) 85% of components can be recycled.
The Award acknowledges Maruti Suzuki's ardent efforts to continuously better its social and
environmental performance. Maruti Suzuki has gone all out to introduce environmental friendly
technologies: fuel efficient K-series engine, launch of 5 factory fitted ëNG models with i-G engine
technology. n addition, 9 car models of the company comply with nd of ife Vehicles ( V)
recycling norms, which means over 85% of the vehicle, is recyclable. The V norms are yet to be
adapted in ndia.
Maruti Suzuki constantly focuses to reduce the impact of its manufacturing activity on the environment.
t uses ëompressed Natural Gas for power generation to meet its needs Gurgaon and Manesar
manufacturing plants. Maruti Suzuki achieved significant reduction in per vehicle electricity and water
consumption over the years.
Road Safety is Maruti Suzuki's flagship ëorporate Social Responsibility focus area. The company has
set up over 100 Maruti Driving Schools across ndia. Maruti Suzuki also operates four nstitutes of
Driving and Traffic Research (DTR) in partnership with state governments. Over 700,000 people have
been trained in safe driving by Maruti Suzuki.
Maruti Suzuki has engaged with communities surrounding its Manesar plant and is running several
community developmental programmes there. The company has adopted four villages in Manesar. The
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Marketing Plan of MSIL Jitendra kumar A 4027842
company will soon start similar community developmental work in villages around its upcoming R&D
text track facilities in Rohtak district of *aryana.
Maruti Suzuki voluntarily shares its performance on the triple bottom line parameters i.e. social,
economic and environmental by all this Maruti proves that it really cares people environment and
economic value.
Source http://www.marutisuzuki.com/Maruti-Suzuki-wins-accolades-for-Significant-
Achievement-in-Sustainability.aspx[accessed on 20 Dec2010]
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Marketing Plan of MSIL Jitendra kumar A 4027842
Table -1
Source http://www.moneycontrol.com/news_html_files/news_attachment/2010/Maruti%20-
%20*em.pdf [accessed on30Dec2010]
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Marketing Plan of MSIL Jitendra kumar A 4027842
13 Plan B
1. Repositioning
2. Exiting not an option
Q-2 Explain the reasons why you feel that the product entered its decline stage in the first
place
14 Here are some reasons that¶s why Grand Vitara was fail in the market
1 People perception about brand: - As in ndia Maruti Suzuki were making small (*atchback)
& medium (Sedan) segment car from its inception since 1983 so people were having general
perception that Maruti is only expertize only in small car & cannot make (SUV) car like
GRAND VTARA . So people do not want to buy GRAND VTARA due to their set perception
that it will not be good as MARUT is not expertize in Sport utility Vehicle or (SUV). Small car
brand image was hurting Maruti Suzuki in (SUV) segment .îor changing people perception
Maruti not done anything before launching GRAND VTARA as they can launch campaign for
their SUV before one year of its launch in digital media or on public places as bus & railway
station.
2 High cost: - Maruti Suzuki is market leader in ndian market in small car segment with low
cost vehicle. Maruti Suzuki is selling majority of its car from starting price 2.60 lack to 8 lacks
except GRAND VTARA. As in NDA per person income is low so people are more
comfortable with buying a car within a range of 2~8 acks. ×ut the cost of GRAND VTARA
was just more than doubled from its small car price, starting price 16.5 ack rupees. Due to high
price majority of people those who want to buy were not able to buy. eople were thinking that
this cost is not value for their money; in this cost they can buy some other luxury or SUV models
like *onda Accord, îord ndeavour, GM ëaptiva, Mitsubishi ajero & other models available in
ndian market in same cost range.
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Marketing Plan of MSIL Jitendra kumar A 4027842
3 Interior & Exterior Quality:- As Maruti is making small car from last 25 years in ndia so
they are expertize in making small car but when they design GRAND VTARA they could not
keep focus on good design of interiors & exteriors as in other competitive vehicle like realize
*onda Accord, îord ndeavour, GM ëaptiva, Mitsubishi ajero. eople are not feeling
comfortable with the interiors & exteriors of GRAND VTARA. nteriors & exteriors are just
above the level of sedan car segment but not up to the level of SUV vehicle. So poor designing
of interior & exterior is one of cause failure of GRAND VTARA.
4 Marketing & Advertising:- Maruti strategy for marketing of GRAND VTARA was totally
different as for their small car segment they are having more than 2740 dealership & service
store they are doing a lot of advertisement for their small & middle car segment , Maruti choose
selective store only for high class people so in majority of store GRAND VTARA was not
available to sell. As economic conditions were changing people in small cities were having
enough courage to buy but GRAND VTARA was not available in their city. Now people cannot
wait for a long time to buy, that after six month they will get it, on the other hand competitor are
ready to give car delivery on the booking day like *yundai, but Maruti is having a booking
system for 6 months before buying. Selective marketing is one the reason of GRAND VTARA
failure.
15 My Expectations & Experience: - was having very high expectations not only for
getting good marks but gain knowledge for solving the business world problem also. As in our
module we have read different type of marketing tools & techniques like Marketing as a
competitive tool, ×randing, Marketing mix, Marketing channels, roduct life cycles, Marketing
research, Marketing plan, ëorporate social responsibility , After completing my module when
will be in business world can apply the marketing tools & technique in the real world like 8s
of marketing mix, marketing plan, SWOT analysis, Ansoff matrix, for finding solutions of
complex problems which will face in real business world.
Now am able to identify & providing solutions to the problems related to marketing
management. Now am able to revitalize the sales of a sales decline product either by adding
some more features in the product or by adding some discount like ×OGOî or by doing extra
promotion or by searching new avenues for the products. Now am gone through the process of
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Marketing Plan of MSIL Jitendra kumar A 4027842
16 Conclusion: -
While competition is increasing for Maruti, we believe that with its competitively priced strong
product portfolio and wide distribution and service Networks, the company should be able
defend its market share.
îor Grand Vitara Maruti segmentation strategy is for ndia in Geographic region is whole ndia
& on Demographic , age group for 18 years and above, gender for Male & îemale, ncome for
Upper class & rich, sychographic lifestyle for succeeder.
Marketing mix will be useful for increasing sales of product by doing some change in interior of
the product, by doing promotion on targeting current & new users, by communicating ×rand
image, ×y advertising on TV (On prime news & business channels, by the help of media (by
giving add in main Newspaper current affairs magazine), by giving add on internet on dedicated
web sites or auto websites.
×y sales promotion: - ëontest games, premiums & gifts, fairs and trade show
vents and experience: - ×y sponsoring cricket series & some other games, by hosting events
like Quiz competition
×y extended warranty upto 5 years
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Marketing Plan of MSIL Jitendra kumar A 4027842
17 References:-
David D. class notes on Marketing mix & marketing lan , ë
Kotler hilip & Keller Kevin ane Marketing Management, 12th dition by rentice *all
Porter E. Michael ë
ë
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