3 .

ASSIGNMENT

Mgt-635, rural marketing

Submitted by submitted to
Nirmal Singh mr.hitesh jhani
Rt-1901 b 55
Reg-10900570

TOPIC- ‘maruti Suzuki in haryana ’

INTRODUCTION
In this project we have undertaken to study the most important aspect of
marketing, the marketing mix strategy, of India’s largest automobile industry,
Maruti Suzuki India limited. Maruti is considered to be a leader in the passenger
car industry in India that proves the fact that it has efficiently complied with all the
marketing strategies. The industry envisions creating customer delight, increase
Share holder’s wealth, invoking customer obsession, becoming fast, flexible, &
fast mover, adopting innovation and creativity, support networking and partnership
and applying openness and learning. In this project we have incorporated an
overview of the product mix, pricing strategy, promotional activities and
distribution networks followed by Maruti which has helped them in attaining their
core values and mission thus becoming the Pride of India In 1970, a private limited
company named 'Maruti technical services private limited' (MTSPL) launched on
November 16, 1970. The stated purpose of this company was to provide technical
know-how for the design, manufacture and assembly of "a wholly indigenous
motor car". A year later, a company called Maruti limited was incorporated and
Sanjay Gandhi was appointed Managing Director. In 1977, that company was
liquidated. At the behest of Indira Gandhi, the Indian Government salvaged Maruti
Limited and started looking for an active collaborator. Maruti Udyog Ltd. was
formed in 1981. A year later, a License and Joint Venture Agreement (JVA) signed
between Maruti Udyog Ltd. andSMC of Japan Suzuki Motor Corporation kept on
increasing their stake until on September 17, 2007 it was renamed to Maruti
Suzuki India Ltd...

sCurrently headed by Mr. Shinzo Nakanishi, Maruti has always had luck with
leaders. From Jagadish Khattar to RC Bhargava, these men took Maruti to the
heights it has attained today. The future looks only brighter
DATA OF RURAL INDIA
• Total number of village in Haryana 6,955

• Number of district 106

• Average number of village per district 366

• Number of towns 106

• Average of population per town 57,681

• Number of hats 0

• Urban population 6,114,139

• Rural population 14,968,850

• Total Types of house 2,434,455

 Permanent house 58%,

 Semi Permanent house 35% and

 Temporary 7%

• Rural literacy rate 64%

• Per capita income in urban sector 18,134 Rs/annum

• Per capita income in rural sector 14,855Rs/annum

• Total number of Mandis:- 284

• Famous melas in Haryana :-

 Pihowa mela
  Gangor mela

 Surajkund mela

 Kishan mela

 Dlehati mela

 Kopalamochan mela

Pathri mata ka mela

INTERPRETATION

Maruti has a bigger name in the market.

It has trust of people.
Maruti Udyog Ltd is the market leader for more than a decade.
It has a great leadership chain in the market.
It has better after sales service.
Low manufacturing cost of vehicle.

Creation of value and benefit from the product at different markets

Maruti is an automotive industry but the changing scenario and competitive

environment has forced it to shift from the product based industry to a service
provider to take up a competitive advantage and wholly ensure customer
satisfaction. Besides, their usual operation in the car selling and manufacture
Maruti also provides auxiliary services to enhance complete satisfaction from the
point of view of its customers. It provides additional facilities of financing,
servicing, accessories which are discussed below:

About 80% population of the State is engaged in agriculture, directly or indirectly.

Mainly the maruti suzuki of Haryana . The western Yamuna canal and the Bhakra
canal system brings benefits to the cultivators of Haryana in a big way. The state
has extensive tube well system. This irrigation net work has made Haryana into
one of the front line states of India interms of good maruti suzuki. The state is not
only surplus in automobile but also makes large quantities available . High yielding
varieties of maruti suzuki produced. Against the all-India average 31.6% of net
irrigated area to the next sown area Haryana has a high average of 79.8%. The state
is noted in respect of cultivation of as much of the land as is available. In Haryana,
out of 100 hectares as much as 3/4 is cultivated and nearly 30% of the area under
crop is irrigated. The out put of food grains per hectare is much higher in Haryana
than the rest of the country and the state is a kind of granary. The Basmati rice
produced in Haryana finds an easy market abroad. The State has Asia's biggest
agricultural University known as Chaudhry Charan Singh Haryana Agricultural
University at Hisar, which has already made a significant contribution in ushering
'Green Revolution'. Electricity is supplied on subsidised rates to the agriculture
sector. As a result of the various incentives being provided to the farmers, picking
up. An ultra-modern fprocessing complex of international standard is being
developed at Rai near Delhi to provide marketing and materials facilities to the
farmers and entrepreneurs of the northern region.

MARKETING MIX
A Marketing mix is the division of groups to make a particular product by pricing,
product, branding, place, and quality. Although some Day1 marketers have added
other P's, such as personnel, packaging and physical evidence, the fundamentals of
marketing typically identifies the four P's of the marketing mix as referring to:

"Marketing Mix" is set of correlated tools that work together to achieve company's
objectives, they are: product, price, promotion, place.

The set of controllable tactical marketing tools, product, price, place and
promotion - that the firm blends to produce the response it wants in the target
market:

The marketing mix is to continually offer the customer new product and service
reduce the customer’s cost of ownership of their car’s and anticipate and address
the customer’s needs and preferences in all aspects and stage of the car’s owner
ship to provide what they refer to as the “360 degree customer’s experience”
The sell ten models with more than 50 variants in segments A, B,C utility vehicle
segment of the Indian passenger car markets. Of these they manufacture nine
models and import the grand vitara as a completely built unit form Suzuki in Japan.
Their models and variants are designed to address the changing demand of the
market and the periodically upgrade in technology ,styling and features . to take
advantage of the brand recognition association with their products ,they retain the
brand name of the product through various stage of the product upgrades overtime.
For example of maruti 800 brand currently sold in the market is a significantly
upgraded version, in term of technology ,design and styling of the maruti 800
launched

4p’s
• Product

• Price

• Place

• Promotion

Product strategy
• Portfolio of 12 product

• Five product lines

GRADE CAR
PRICE
A MARUTI 800
1,95,028
A OMNI
2,51,911
B ZEN
3,26,172
B WAGON-R
3,69,240
B ALTO
2,58,658
C ESTEEM
2,50.000
C BALENO
7,00000
C VERSE
3,63,390
C SWIFT
4,49,294
UTILITY VEHICLE GYPSY KING
607,036
UTILITY VEHICLE GYPSY VITARA
19,19,070

Product line Products

A1 800
A2 Alto ,zen wagon-
R,swift,A-star
A3 DZIRA,Sx4
SUV Vitara,Gypsy
C-CLASS Omni,versa
Price strategy
The price of maruti car is between 210000 to 1500000 .Maruti- 800 is the lowest
price car of this company .Alto, Omni ,wagon-R, are also the low price car of the
company Zen &Esteem are the mid price car of the company. But grand vitara is
the high price model of the company. the price of the car is decided according to its
product variety ,quality, design etc.

Place strategy
• 300 new cars sales outlets covering 393 cities.

• 265 maruti ture value outlets spread across166 cities.

• 2628 maruti authorized service station, covering 120 cities.

• Tie up with adani group for exporting mundra port Haryana.

Suggested Place strategy

• 400 new cars sales outlets in next three years.

• S150 maruti ture value shop in next three years.

• 1200 new maruti authorized service station in next three years.

• Tie up with other distributors for exports

Promotion strategy
• Advertising

• TV ads

• Print ads

• Radio ads

“Ghar aa gaya Hindustan”

“India comes home in maruti Suzuki’

• Information advertising, alternative advertising option

• BTL –sponsorships
 • TV-shows- India gots talent

• Place advertising-billboards

• Sales promotion

• Product warranties

• Premium gifts

• Trade shows

• 2682the number of worker that provide customer with maintainers support

in 1220 cities

RURAL MARKETING STRATEGY OF HARYANA

Rural Market covers around 3/4th population of the country. So, every sector has a
lot of scope including the automobile industry. Automobile penetration in the rural
Indian market is negligible. Overall vehicle penetration figures in India are also not
all that encouraging either with only 19 in every 1,000 people having a personal
mode of transport. Seeing a huge potential in villages and smaller towns where
incomes are increasing thanks to good monsoons and high minimum support price
for government procurement, Maruti increased its focus on the rural markets in the
last couple of years. So, in order toskim the benefit of the potential customer
existing in these areas various positioning strategies is being followed by the
company.

• Apart from recruiting people for the R&D operations,Maruti is also looking
to hire people for sales & marketing with an aim to penetrate rural areas in
an effective way. The company plans to add another 600 people to its
present tally of 7,200 employees of which over half will be engaged in sales
and marketing.

• To attract rural customers, Maruti Suzuki India is tying up with public sector
banks that have both a branch network in these areas and the resource base
to make loans. “Due to the economic slowdown, private sector banks are
 going slow on vehicle finance, hence Maruti is moving closer towards public
sector banks for providing easy credit to customers the officials are in talks
with Bank of India and Punjab National Bank among others for this purpose.

• Reiterating that Maruti 800 would not be competing with Tata Nano, which
is in the ultra low cost segment, Siddiqui said that Maruti 800 was still a
very popular car in the rural areas. It still continues to be among the most
popular brands in India and there are no plans to compete in the ultra low
cost segment.

The contribution of rural sales has more than doubled during the present calendar
year. According to SY Siddiqui, managing executive officer of Maruti Suzuki
India the end of 2009 calendar year as much as 8 per cent of sales will come from
rural areas, up from 3.8 per cent last year. Apart from the major car demands from
the ever growing city population, rural India is the key area to increase the business
in India and Maruti has rightly targeting on this idea. The company has witnessed a
significant 17% sales contribution from the rural market and it will continue to
strengthen its presence over there.

DEALERS AND AUTHORIZED CENTERS

The company has a sales network of 802 centers in 555 towns and cities, and
provides service support to customers at 2,740 workshops in over 1,335 towns and
cities (as on March 31, 2011). The company is
focused on rapidly expanding the sales and service further across the country.

The company's Chief General Manager Mr. Shashank Srivastava informed that
Maruti's intention is to take these number upto 1,000 service centres in this fiscal
year. Maruti, India's No.1 Car maker is all set to widen its business. The auto
maker is celebrating its peak sales constituting more than 1lakh cars in May alone
and at the same time getting ready to increase the dealerships to ease the
distribution of its value for money products

Each Company is making their way to Rural India. Most of them have studied the
market and Analyzed the things over there and ready to fight at Rural India. There
are some of the companies which have already written their success stories in
Rural market. Company like maruti suzuki have given a new format for rural
marketing. They have done a great job. So, the marketing is always have the
difference in Urban and rural, which makes the companies to think over the
Marketing mix. Marketing mix is such an element in rural market which gives the
sense to think of marketing activities. This 4A model is similar to the 4P model of
Marketing mix, the difference it shows is main streamline and Rural Market. 4A
perceived to be more customer oriented. The 4A's are Affordability, Availability,
Awareness, and Acceptability.

AFFORDABILITY: Here Affordability does not mean that cheaper

products should me made and marketed, the meaning is to reach the customer by
satisfying their needs. The designing of the product should match the needs of the
customer. The Customer should not think that they cannot buy it, that means it
should be in their buying capacity. The income earned in rural markets is from
different ways , so by keeping this in mind most of the companies should design
the product in such a way that it reaches the customer.

AVAILABILITY: The greatest problem in the rural market is to reach the

customer or retailer. Its the logistics way to make the product available there .
Once it reaches the retailers shelf then there will not be any problem. This is
because there will be lesser number of brands available at market and the Influence
or image/ Relationship of the makes the difference. The companies should work
out to reach the customer in time. Most of the products are promoted well but by
the time it reaches the customer it gets late. So reaching the market should be
considered.
AWARENESS: The Awareness program should be in such a manner that it
should reach the customers mindset. The main way of reaching the customer is
through the commercials on media like TV, Radio and Outdoor. The awareness
programs should be conducted at the area where the village heads meet or in other
way the meeting place at the villages. The awareness program should be in such a
way that it should contain some message to the audience, there should be some
concern for them and their place.
Apart from this there are some things which the company should think of, such as
Colour of the product, Packaging , logo and slogan so on. This should be in such a
way that by looking at the product only the customer should feel that they can go
for that , and they should be in such a position to differentiate the product .

ACCEPTABILITY: The most important theme of Marketing Mix is

Acceptability. The customer should think that they can buy the product by putting
an extra money on that. They should feel that the product is designed as per their
needs and it should deliver a great solution to the customer. They should think that
the product gives some value to them , and it should serve the purpose what they
are planning to buy for. The customer should feel the comfort with the product and
there should not be any hesitation to go for it.
So, by these four components of Marketing mix the company can reach the rural
market. The companies which have worked it well they have done their best in the
rural market. The company maruti suzuki have changed the dynamics of rural
market. So it is important for the companies to think on their marketing mix and
make a competitive analysis to go for the market.

Analysis

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan,

is India's largest passenger car company, accounting for over 45% of the domestic
car market. The company offers a complete range of cars from entry level Maruti-
800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans
DZire, SX4 and Sports Utility vehicle Grand Vitara.

Since inception in 1983, Maruti Suzuki India has produced and sold over 7.5
million vehicles in India and exported over 500,000 units to Europe and other
countries. The company’s revenue for the fiscal 2008-2009 stood over USD 4
billion and Profits After Tax at over USD 243 million

Maruti Suzuki India limited has effectively and efficiently used the various
marketing mix tools to survive the growing competition in the automobile industry
for more than three decades thus making it a leader in its sector. Its success has
been highly credited and acknowledged by many accolades and awards in various
categories of pioneering.Thus, the industry has portrayed an example of fine
balance between its product offered and meeting customer need obtained by the
mixture of proper decision making process and adaptability to the changing
environment.

we have comprehensively analysed the current marketing practices that companies

undertake in order to effectively lure the rural consumer into buying the consumer
durables. Along with the marketing practices, we also analyse the effectiveness of
the current practices by means of a subjective survey of three families . We then
conducted a 4A analysis and thus have a complete picture of the current marketing
practices in consumer durables and its effectiveness. After researching consumers’
wants and needs, automakers begin designing models which are tailored to
consumers’ demands.

The design process normally takes five years. These companies have
manufacturing units where engines are manufactured and parts supplied by first
tier suppliers and second tier suppliers are assembled. Automakers are the key to
the supply chain of the automotive industry. Examples of these companies are ,
Maruti Suzuki, . Innovation, design capability and branding are the main focus of
this company. Determinants of demand for this industry include vehicle prices
which are determined largely by wage, material and equipment costs and exchange
rates, preferences, the running cost of a vehicle mainly determined by the price of
petrol, income, interest rates, scrapping rates, and product innovation :

It is evident that high population of India has been one of the major reasons for
large size of automobile industry in India. Factors that may be augment demand
include rising population and an increasing proportion of young persons in the
population that will be more inclined to use and replace cars. Also, increase in
people with lesser dependency on traditional single family income structure is
likely to add value to vehicle demand.

Movement in oil prices also have an impact on demand for large cars in India.
During periods of high fuel cost as experienced in 2007 and first –half of 2008,
demand for large cars declined in favour of smaller, more fuel efficient vehicles.
The changing patterns in customer preferences for smaller more fuel efficient
vehicles led to the launch of maruti suzuki – one of world’s smallest and cheapest
cars. .

Even with this rapid growth, the maruti suzuki contribution in global terms is very
low. This is evident from the fact that even thought passenger and commercial
vehicles have crossed the production figures of 2.3 million in the year 2008, yet
India’s share is about 3.28% of world production of 70.53 million passenger and
commercial vehicles. India’s maruti suzuki constitute only about 0.3% of global .

The concept of attaining competitiveness on the basis of low cost and abundant
labour, favourable exchange rates, low interest rates and concessional duty
structure is becoming inadequate and therefore, not sustainable. A greater
emphasis is required on the development of the factors like innovation which can
ensure competitiveness on a long-term basis

REFERENCE
Maruti Suzuki India limited”, wikipedia,
http://en.wikipedia.org/wiki/Maruti_Suzuki ”Maruti India strategic evaluation”,
Ankit Jhamtani,

http://www.slideshare.net/ankit7/maruti-india-limited-strategic-evaluation- ankit-
jhamtani Official website of Maruti Suzuki India limited,

http://www.marutisuzuki.com

http://www.google.com ”Maruti Suzuki India limited”,

http://www.scribd.com/doc/12864193/Maruti-Suzuki

http://www.scribd.com/doc/17254306/Marutis-Strategic-Evaluation

Maps and charts

http://www.mapsofindia.com/mu