PROJECT REPORT ONMARKETING STRATEGY OF MARUTI SUZUKI

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF COMMERCE (HONS.)

SUBMITTED BY INTERNAL GUIDEDIKSHA KWATRA MR. RAJENER SINGHCOLLEGE ROLL NO. 12/92091

SHIVAJI COLLEGE UNIVERSITY OF DELHI

CERTIFICATE

This is to certify that the project report course code: B.COM (H) entitled MARKETING STRATERGIES OF MARUTI SUZUKI done by DIKSHA KWATRA Enrolment No- 12071204068 is an authentic work carried out by her under guidance and supervision of Mr. RAJENDER SINGH the matter entitled in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the guideMR. RAJENDER SINGH

Date:

ACKNOWLEDGEMENT

I would like to take this opportunity to express my gratitude towards all the people who have in various ways, helped in the successful completion of my project. I must convey my gratitude to MR. RAJENDER SINGH for giving me the constant source of inspiration and help in preparing the project, correcting my work and providing encouragement throughout the project. I also thank all my faculty members for steering me through the tough as well as easy phases of the project in a result oriented manner with concern attention.

DIKSHA KWATRA 12071204068 B.COM (H) SHIVAJI COLEGE (12/92091)

INDEX

S.No. PARTICULARPage No.

1.Chapter-1 Introduction History5

2.Chapter-2 Research Methodology Research Objectives Types of Research13

3.Chapter-3 Data Analysis Interpretation18

4.Findings27

5.Conclusion28

6.Bibliography29

7.Annexure 30

CHAPTER-1 INTRODUCTION

Introduction about Indian Automobile IndustryThe automotive industry is one of the largest industries worldwide and in India as well. The automotive sector is a vital sector for any developed economy. It drives upstream industries like steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries like advertising and marketing, transport and insurance.

The automotive industry can be divided into five sectors:- Passenger Cars Multi- Utility Vehicles (MUVs) Two- and Three- Vehicles Commercial Vehicles - Light Commercial Vehicles (LCVs) / Medium and Heavy Commercial Vehicles (MHCVs) Tractors

We will be looking at the Passenger car industry in India.Despite a head start, the passenger car industry in India has not quite matched up to the performance of its counterparts in other parts of the world. The primary reason has been the all-pervasive regulatory atmosphere prevailing till the opening up of the industry in the mid-1990s. The various layers of legislative Acts sheltered the industry from external competition for a long time. Moreover, the industry was considered low-priority as cars were thought of as unaffordable luxury.

The following table presents a comparative view of the extent of motorization in India vis--vis certain other countries in the worldCountryPassenger Cars in Useper Thousand Persons Two-Wheelers in Useper Thousand Persons

Developed Countries

U.S.A 478 14

United Kingdom 373 12

Japan 395 115

Germany 508 36

Emerging Economies

China 3 8

Indonesia 14 62

Philippines 10 14

South Korea 167 59

India 5 27

Porter Five Forces Model in the Indian Automobile Industry

Threat from New Players: IncreasingMost of the major global players are present in the Indian Market; a few more are expected to enter.Financial strength assumes importance as high investments are required for building capacity.Access to distribution network is important. Although important for all segments, having a distribution network in rural areas is vital for two-wheeler makers.Lower tariffs in the post-World Trade Organization era may expose Indian companies to threat of imports (however, the threat may be mitigated by non-tariff barriers that may still exist).

Market Strength of Suppliers: LowA large number of automotive component suppliers are present in the Indian automotive industry.Automotive players are rationalizing their vendor base to achieve consistency in quality.Rivalry within the Industry: HighThere is keen competition in select segments (such as the compact and Mid-size segments in passenger cars, and the motorcycle segment in two-wheelers).New multinational players may enter the market.Market Strength of Consumers: IncreasingIncreases awareness among consumers has raised expectations. Thus, the ability to innovate (technology being the enabler) is critical.Product Differentiation via new features, improved performance and after sales support is critical.Increases competitive intensity has limited the pricing power of manufacturers.

Threat from Substitutes: Low-MediumWith consumer preferences changing, inter-product substitution is taking place (scooters are being replaced by motorcycles, and Mini cars by Compact Mid-size cars.

S.W.O.T Analysis

StrengthsBrand NameLarge Distribution NetworkWide product offering at different price pointsCheapest Cars in corresponding segmentsEncouraging exportsAwarded many awardsEconomy with technologyWeaknessLack of in house R & DNew model introduction limited to only cosmetic changesDominance mainly at lower level only (Swift)OpportunityRise of Indian middle class and small citiesA booming economyRising exportsThreatsMany players fighting for the same cakeEntry of new playersCannibalism

StrengthsBrand Name: Maruti Suzuki has emerged as a strong brand name in recent times. Backed with the parent company Maruti Suzuki this is recognized as a strong player in worldwide automotive market, Swift has definitely a value associated with it any individual will like associatd with.

Large Distribution Network: With a strong dealer network of around 3000 dealers al around the country, Maruti Suzuki has made its presence felt in each and every corner of India.

Wide Product offerings at different price points: Maruti Suzuki has launched various models in various segments and hence has a very good product mix of offerings as different price points.

Cheapest cars in respective segments: Maruti Suzuki has always followed an aggressive pricing policy. As a result it has its cars priced at lowest possible rates in respective segments.

Encouraging Exports: Backed by a strong production and a global setup at Gurgaon, Maruti Suzuki is exporting a lot. An export of worth Rs. 1,325 crores has been achieved in last six months.

Awarded Many Awards: Maruti Suzuki has been awarded with many awards and recognitions like The Star Company amongst unlisted companies by Business Standard this year. Its various models like Swift has achieved many awards, thereby increasing the brand value of the company.

Economy with technology: Maruti Suzukis cars have always seen as a company producing cars blending economy with technology. Swifts initiative of putting a 16-bit microprocessor on board has proved as one of the major reasons for its success and that too for the lowest price in its segment.

Weaknesses

Lack of in house R & D: Maruti Suzuki do not have a comprehensive R & D department. New model introduction to only cosmetic changes: There is no major design changes incorporated in Maruti Suzuki products. Only some cosmetic changes have been made. Dominance mainly at lower level: Maruti Suzuki dominance in Indian market is only at its lower level segments like Swift in B-Segment and Accent n C-Segment. It has to focus on its upper segment models to strengthen its position in Indian car industry.

Opportunities Rise of Indian middle class and small cities: As a phenomenonal growth is seen in recent times in Indian middle class and the purchasing power of working class individuals. Also a rise in small cities across the country has given a great opportunity to Maruti Suzuki for achieving a higher growth rate in coming times. A Booming Economy: Indian economy is growing at a rate of on an average of 7% every year thereby giving an opportunity of larger sales in each and every segment. Rising exports: With a export of Rs. 1,325 crores in last six months, Maruti Suzuki has a great opportunity of achieving a export target of Rs. 2,700 crores in this fiscal year.

ThreatsMany players fighting for the same cake: There a many major players in the B-Segment and since the size of market is not expanding rapidly, Maruti Suzuki has a major threat in form of tough competition.

Entry of new players: with coming of Tata Indica and other players planning to come out with much more models in B-Segment, the competition is just getting hotter.

Cannibalism: to some extent the Zen is affecting Swift because of its price. Thus Maruti Suzuki has to focus more on its positioning strategy of Zen and Swift.

CHAPTER-2

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:

MEANING OF RESEARCH Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information as a specific topic. In fact, research is an are of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge.Redman and Mory define research as a systematized effort to gain new knowledge. Some people consider research as movement, a movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. D.Slesinger and M Stephenson in the encyclopedia of Social Sciences define research as the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art Research is , thus, an original contribution to the existing stock of knowledge making for its advancement. It is pursuit of truth with the help of study, observation , comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also research. As such the term research refers to the systematic method consisting of enunciating the facts and reaching certain conclusions either in the from of solutions(s) towards the concerned problem or in certain generalizations for some theoretical formulation.

DEFINING THE RESEARCH PROBLEMA researcher must find the problem and formulate it so that it becomes susceptible to research. Like a medical doctor, a researcher must examine all the symptoms (observed by him) concerning a problem before he can diagnose correctly.And therefore, I have also defined the research problem i.e. to study consumer trends, behavior, preferences and level of satisfaction in Airtel communication Ltd.

RESEARCH METHODOLOGYAfter defining the research problem the foremost step will be planning for the further investigation. Preparing the blue print to undertake the research called research design. In other words,

A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure".

Under this chapter methodological step has been adopted in the study of consumer trends, behavior, preferences and level of satisfaction in Airtel communication Ltd. The research procedures followed are described as under:

RESEARCH OBJECTIVES

The present study of the marketing strategy of the Maruti Suzuki (Pvt.) Limited revolves around the following broad objectives:

To study the evolution and growth of the Maruti Suzuki (Pvt.) Limited in the context of the automobile revolution in India; To study the growth strategy of the Maruti Suzuki (Pvt.) limited and the marketing methods followed by it in this regard. To study the small car revolution in India and the contribution of the Maruti Suzuki (Pvt.) limited to it.

RESEARCH APPROACHThe research approach for the purpose was secondary research to collect the information on the subject.

RESEARCH INSTRUMENTI used direct observation, customer data & survey as research instrument.

RESEARCH DESIGNIn this project use exploratory research design and for data collection fill-up the questionnaires from the customer of mobile, survey of the market and some information collect by interview of the users of the cellular at West Delhi

AREA OF RESEARCHWest Delhi region

SOURCES OF DATA

RESEARCH DATAData is the key activity of marketing research. The design of the data collecting method is backbone of research design.

Data constitute the foundation of statistical analysis and interpretation. Hence the first step in statistical work is to obtain data. Data can be obtained from two important sources, namely: 1. Primary Data2. Secondary Data

PRIMARY DATA:Primary data are gathered for the specific purpose or for a specific research project, consist of original information for the fulfillment of project objective. When the data are required for the particular study can be found neither in the internal record of the enterprises nor in published sources. In some cases it may become necessary to collect original data. Primary data can be collected in four ways:-1. Observation2. Focus3. Survey4. Experiment

SECONDARY DATASecondary data are the data, which already exists somewhere. Secondary data provide starting point for research and after that the advantage of low cost and ready availability. Secondary data can be divided into two types:1. Internal data2. External dataWhen researcher uses the data that has already been collected by other data are called secondary data. Secondary data can be obtained from journals i.e. internal sources report, government publication and books, professional bodies etc.Internal data are reports and memos generated within an organization to facilitate its operations. External data are those specially produce for outside consumption.Sources from which I have taken the secondary data are as under: 1. Direct observation2. Airtel website3. Books for marketing management4. Surveys and customer data & report

In this report,Sample Size: 65Sampling Area: West DelhiTypes of Data Used: Primary Data & Secondary Data

Sources of Data: 1. Primary Data- Questionnaire 2. Secondary Data- Magazines, Internet.

Instrument of Research Used: Questionnaire, Consisting of 8 Questions. The questionnaire was given to the Customers of the Company.(For QUESTIONNAIRE, See ANNEXURE A).

CHAPTER-3DATA ANALYSIS &INTERPRETATION

1) Are you aware about the Present boom in Market?ParticularNo. of respondentPercentage

Yes4582%

No2018%

Total65100%

INTERPRETATION:-As regard to market boom and the respondents awareness level about this, nearly 82% of the respondents are aware about the market boom in the present economy, while the rest 18% are not aware about any market boom

2) What method do you follow for marketing of your products?ParticularsNo. of RespondentsPercentage

Direct sales3028%

Indirect sales1518%

Both2054%

Total65100%

INTERPRETATION: - 28% of the respondents follow direct sales method, 18% follow indirect sales method and 54%of the respondent follow both of the marketing strategies

3) Do you think Advertisement is an effective method of selling your automobile products?ParticularsNo. of RespondentPercentage

Yes4045%

No1018%

Cant Say1527

Total65100%

INTERPRETATION: - 45% of the respondent agree that advertising is an effective method for sealing their automobile produts,18% disagreed the statement and 27% cant say 4) What type of advertising will be helpful in increasing salability of your auto products?particularsNo. of RespondentPercentage

Product specific3034%

Company specific1222%

Personality specific717%

Cant say1527%

Total65100%

INTERPRETATION:- 34% of the respondent said product specific, 22% said company specify, 17% said personality specific and 27% said cant say about the increasing salability of their auto products.5) Do you think that branding helps in the marketing of your automobile products?ParticularsNo. of respondentPercentage

Yes2434%

No1727%

Cant say2439%

Total65100%

NTERPRETATION:- 34% of the respondent said yes about the branding helps in the marketing of the auto products, 27% of the respondent said no and 39% of the respondent said cant say.

6) Do you think that auto fairs are effective methods of sale promotion?ParticularsNo. of respondentPercentage

Yes4555%

No612%

Cant Say1433%

Total65100%

INTERPRETATION:- 55% of the respondent said yes about the auto fair on effective method of marketing, 12% of the respondent said no and 33% of the respondent said cant say

7) Do you think that Foreign Direct Investment (FDI) should be allowed in the auto mobile sector in India?

ParticularsNo. of respondentsPercentage

Yes2034%

No2232%

Cant say2334%

Total65100%

INTERPRETTION:- 34% of the respondents said yes to the allowance of foreign direct investment in the auto mobile industry in India, 32% of the respondents said no and 34% of the respondent said cant say.

8) Do you follow branding of products as a Marketing strategy?ParticularsNo. of RespondentPercentage

Yes4074%

No55%

Cant say2021%

Total65%100%

INTERPRETATION:- 74% of the respondent said yes about the branding of the product as marketing strategy, 5% said no and 21 % of the respondent said cant say

FINDINGS As regard to market boom and the respondents awareness level about this, nearly 82% of the respondents are aware about the market boom in the present economy, while the rest 18% are not aware about any market boom. 28% of the respondents follow direct sales method, 18% follow indirect sales method and 54%of the respondent follow both of the marketing strategies 45% of the respondent agree that advertising is an effective method for sealing their automobile produts,18% disagreed the statement and 27% cant say 34% of the respondent said product specific, 22% said company specify, 17% said personality specific and 27% said cant say about the increasing salability of their auto products. 34% of the respondent said yes about the branding helps in the marketing of the auto products, 27% of the respondent said no and 39% of the respondent said cant say. 55% of the respondent said yes about the auto fair on effective method of marketing, 12% of the respondent said no and 33% of the respondent said cant say 34% of the respondents said yes to the allowance of foreign direct investment in the auto mobile industry in India, 32% of the respondents said no and 34% of the respondent said cant say. 74% of the respondent said yes about the branding of the product as marketing strategy, 5% said no and 21 % of the respondent said cant say

CONCLUSIONMaruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor Corporation of Japan was Indias largest automobile company in 2005. It operated in the passenger vehicle market and manufactured affordable and fuel efficient cars for the Indian masses. Maruti 800 was its flagship small sized car and was the best selling car in India since decades. In 2005, Suzuki launched their global car Swift in international markets and later in India. Swift was the first stylish compact car from the stable of Maruti and was a differentiator from its earlier products. The launch of Swift had brought Maruti in lime-light and various global international automobile manufacturers announced their plans to boost their investments in India and launch competing cars. The competition was expected to intensify to grab the burgeoning customer base.

The Indian car market currently appears to be at a crossroads, where car marketers are attempting to change customer perceptions of their brands and where specific buying motivations appear to be replacing generalities. This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and safety, not necessarily in that order, before finalising a purchase. Its smarter to think about emotions and attitudes, if marketers are to do a better job of marrying what a car offers to the consumers image of the offerings.The mindset of the Indian consumer is such that he is delighted if he buys a pen a little cheaper than his neighbour. Things are, however, slowly changing and customers at the upper end of the market are now ready to pay more for more. I hope that this approach will soon enter the small car segment, maybe not with the same intensity. Success will largely be determined to the extent a company can differentiate itself in terms of intangibles that go with a car. Thus, success could well hinge on the best of bundle of services that a carmaker can provide. Maruti Suzuki grew from zero to the 500,000 mark and the number One sales spot in India in just five years. Positioning: The Battle for your mind by Al Ries & Jack Trout

BIBLIOGRAPHYBooks & Journals

Marketing Management by Phillip Kotler Brand positioning by Subroto sengupta Ahluwalia, I.J. (1996). "India's Opening up to Trade and Investment" in I.J. Ahluwalia, Rakesh Mohan and Omkar Goswami, Policy Reform in India . Edited by Charles Oman. Paris: OECD, pp. 17-41 AIAM (1999). Recommendations for Developing Indian Automotive Policy. Association of Indian Automobile Manufacturers, New Delhi

Newspapers, Journals & Magazines

Business World The Economist Economic Times Autocar Indias

ANNEXURE

1. Are you aware about the Present boom in Market? Yes No.

2. What method do you follow for marketing of your products? Only Direct sales Method Only Indirect Dealership Method Both 3. Do you think Advertisement is an effective method of selling your automobile products?

Yes No Cant say

4. What type of advertising will be helpful in increasing salability of your auto products?

Product Specific Company Specific Personality oriented Cant say

5. Do you think that branding helps in the marketing of your automobile products? Yes No Cant say

6. Do you think that auto fairs are effective methods of sale promotion? Yes No Cant say

7. Do you think that Foreign Direct Investment (FDI) should be allowed in the auto mobile sector in India?

Yes No Cant say8. Do you follow branding of products as a Marketing strategy?

Yes No Cant say

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