Marketing Strategy of Maruti Suzuki – Maruti Suzuki analysis: It was established in 1983 as a joint partnership with the Government of India and Suzuki Motor Corporation, Japan, to motorize India, Maruti Suzuki India (MSI) is the leading producer of four-wheelers in India.
The company was initially established by having the Government of India holding major stakes in the business. At present, the Government has withdrawn its stakes in the company and handed the company over to Suzuki Motor Corporation. Two manufacturing units situated in Gurugram and Manesar located to the south of Delhi Maruti Suzuki employs more than 75,000 people. Read Article: What Is Marketing Strategy? Definition
Did You Know About Maruti Suzuki?
Company : Maruti Suzuki
CEO: Kenichi Ayukawa
Founder: Government of India
Year founded: 1982
Headquarters: Gurugram, India
Annual Revenue: US$10 billion
Profit | Net income: US$740 million
Products & Services: hatchbacks, sedans, MPVs and an SUV. Popular Maruti Suzuki cars include the Alto, S-Presso, Wagon R, Celerio, Swift, Dzire, Baleno, Ertiga, Vitara Brezza and Ciaz
Competitors: Honda Motors | Toyota Motor Corporation | Nissan Motors | Hyundai Motors | Fiat | Mitsubishi Motors | Chevroletn | Tata Motors.
Maruti Suzuki Fun Fact: Maruti consumes about 70,000 litres of paint every day to colour the 5,000 cars manufactured daily by the company at its two manufacturing units in Haryana’s Manesar and Gurgaon. Sixty five robots work to paint the bumpers alone.
Marketing Strategy of Maruti Suzuki – Segmentation, Targeting, Positioning
Offers a variety of models available in nearly every sector of the automotive industry. Maruti Suzuki has more than 150 models and 16 brands that cover all segments, consisting of Maruti 800, Maruti Zen EstiloMaruti Omni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A Star, Maruti Wagon R, Maruti Swift, Maruti SX4, Maruti Kizashi, Maruti Eeco, Maruti Ertiga, Maruti Grand Vitara. This allows them to serve a wide range of customers. A brand’s products approach is geared toward catering to the demands of nearly all segments from the middle class to the upper class.
With vehicles in the budget segment, the mid-range segment high-end and super-premium segments. The target segment for the brand is anyone over four Lakh p.a. wage, people looking to make the switch from a two-wheeler to a 4-wheeler, millennials working as managers and professionals. Middle class upper middle class, high class, and Affluent classes, the 21-65 age bracket years is the main targeted group.
MSI places all of its 16 brands in a variety of ways to satisfy the various needs and needs of consumers, like:
Alto Let’s go! Positioned as India’s best fuel-efficient vehicle that can be financed by people with lower incomes as well.
Wagon R Inspiring EngineeringPositioned as a brand that works well for those who wish to live economic and fascinating lives that reflect confidence and multifaceted character.
Swift The fuel you’re using is yours you’re the car that has a contemporary style, modern design, and youthful outlook.
Swift DzireThe heart car is the heart of the car positioned as a sedan that is entry-level to the aspirational class.
SX4 Men are backThe most strong car for males.
Ertiga “A Feeling called LUV” The Life Utility vehicle is designed as a seven-seater compact vehicle, one with a tiny footprint and a narrow turning radius.
Maruti Suzuki Mission Statement
“With no mission statement mentioned as such, still brands mission since its inception has been “To motorize the country”.
Maruti Suzuki Vision Statement
“The Leader in the Indian Automobile Industry, creating customer Delight and Shareholder’s wealth; A pride of India” Core Values of MUL
- Customer Obsession
- Fast, Flexible, and First Mover
- Innovation and Creativity
- Networking and Partnership
- Openness and Learning
Maruti Suzuki Tagline
“Way of Life”
Marketing Strategy of Maruti Suzuki – Competitive Advantage
With more than 30 years of existence in the United States, the brand has earned that is trusted by customers. In addition, two manufacturing units located in India, one located in Gurugram and the other in Manesar provide the brand with an edge over its rivals.
Things that differentiate Maruti Suzuki from its competitors are
- The Quality Advantage
- Brand Trust – A Buying Experience Like No Other
- Quality Service Across 1036 Cities
- The low cost of maintenance Benefit
- Lowest Cost of Ownership
- Technological Advantage
MSF maintains its dominance in both the Indian market as well as in exports, with the company selling more than 1.64 million vehicles, bringing its market share close to 50 percent in the domestic market. It also exports 4 wheelers to more than 125 nations worldwide, making it the world’s largest exporter of passenger cars from India this year, surpassing Hyundai Motors India Ltd. which is now in fourth place, just behind Volkswagen as well as General Motors.
The company sold 57,000 units between April and September last year. This was an increase of 6% over 54,008 units in the same period a year ago. MSI is not just been able to maintain its massive sales figures, but also increased its share of the market both in the rural and urban markets.
Marketing Strategy of Maruti Suzuki – BCG Matrix
The majority of the brands from MSI are well-liked by consumers and they are preferred to competitors within the identical market due to their low maintenance costs therefore Brands such as Celerio, Alto, Alto K10, Eeco, Vitara Brezza, Baleno, Ignis, S-Cross, Ertiga
The brand has an impressive market share in its segments and therefore is considered to be Stars for the company.
Then Swift, Swift Dzire, and Wagon R have been the Cash Cow for the company in their respective categories. In contrast, Ciaz as an entity hasn’t managed to stand out in the Sedan segment, Gypsy together with Omni have seen their market share in the past so all three remain is a concern in the brand’s future.
Certain brands such as Zen Estilo, Versa, SX4, and A-Star over time began to be introduced into the Dog segment, and it has been taken off by the company over the past couple of years.
Marketing Strategy of Maruti Suzuki – Distribution Strategy
With its two manufacturing facilities that have a combined production ability of around 14,50,000 automobiles a year, Maruti Suzuki has a strong dealer network that it can enhance. Maruti Suzuki was among the first companies in the world to understand the significance of after-sales services for high-involved products like automobiles.
The company boasts the largest distributorship and after-sales service system consisting of more than 400 showrooms for sales and 1900 authorized service stations that span over 1190 cities and thirty Express Service Stations located on thirty National Highways across 1,314 cities and more than 600 dealer workshops, which are unmatched in the nation.
The company also operates 280 Nexa showrooms that are exclusively for high-end cars. To improve customer interaction in rural areas of the country, where the setting up of the entire dealership was difficult, the company has launched extension counters, which are run by a dealer located within the city.
Marketing Strategy of Maruti Suzuki – Brand equity
Maruti Suzuki has managed to make it into the global top 10 charts of brands in the auto industry, and it ranks 9 the most valuable brand in the auto industry globally, close to Volkswagen and just behind Tesla.
Furthermore, Maruti Suzuki India is ranked 99 the th as well as 70 st on Forbes’ list of the World’s Top Innovative Businesses as well as the Top-Respected Companies list of 2018. Maruti Suzuki is also ranked 366 on the Global 2000 companies of Forbes 2018.
Marketing Strategy of Maruti Suzuki – Competitive Analysis
The Automotive market in India is believed to be an ocean of red with the present crop of National and International players like Hyundai, Fiat, Tata Motors, Mahindra, Honda & Toyota providing an intense rivalry to the brand every one of them trying to take advantage of the other’s market share.
Maruti Suzuki over the years has been heavily associated with smaller cars that have allowed its rivals to gain an enormous advantage in the luxury car category. Customers who purchase entry-level vehicles are different from those who choose premium vehicles. premium isn’t just about price but also features and feel for customers.
Maruti Suzuki is a company that has a wide range of brands. The company’s collection in 2015 decided to introduce Nexa to preserve its top brands that in the past had not reached the heights they deserve, such as Kizashi SX4 and Baleno. The introduction of Nexa for Maruti Suzuki is a move to expand its market share in premium cars through the re-branding of the branding. Nexa currently has 280 showrooms across the United States and has sold more than 3,000 vehicles and expects to sell more than 3,00,000. year.
Marketing Strategy of Maruti Suzuki – Market Analysis
Maruti Suzuki achieved a market share of 50% in the passenger vehicle segment for the very first time in 2017-18, with its utility vehicle sales exceeding those of its competition. The company for the first time during more than three decades of existence has sold over 1.5 million units. The numbers reached 1.65 million. This was one-fourth more than what it was in the year prior.
In the wake of Hyundai Motors deciding to stop selling Santro and customers’ decreasing desire for The TATA Nano, it has helped the company’s position in the small car market. Maruti Suzuki India hopes to remain at the top of the utility vehicles in the financial year 2019, with the company intending to introduce its brand-new Ertiga in the coming calendar year andBrezzawith its popularity among customers continues to boost sales in numbers.
Marketing Strategy of Maruti Suzuki – Customer Analysis
Profile of customers that the manufacturer comprises middle – to high-income categories that range from those trying to transition from a four-wheeler to a 2-wheeler, to those planning to buy a second car or a luxurious car that will be used by their loved ones. This means that it covers customers a range ages from 22-to 60 and professional professionals in the high-end market who want affordable maintenance, or new and fashionable world-class vehicles that come equipped with the latest security features.
Marketing Strategy of Maruti Suzuki – Promotional Strategy
Maruti Suzuki carries out its promotion strategy in two ways:
Above the Line ( ATL)
- TV, Radio
- Print ads in newspapers (advertisements in local newspapers, that are run by dealers in the local area) dealer)
- Magazine advertisements
Under the Line, (BTL) Promotions include:
- Corporate display activities
- Fair for exchange or Melas
- Loan and Rural Fair,
- Rural fair
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