Download - Maruti Suzuki- wagonR
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METHODOLOGY FOLLOWED
LITERATURE REVIEW
HYPOTHESIS DEVELOPED
DATA COLLECTION AND ANALYSES
CONCLUSION AND IMPLICATIONS
FUTURE RESEARCH
ROUTE FOLLOWED
MARUTI
SWIFT
AUTOMOBILE SECTOR IN INDIA
MARUTI IN INDIA
MARUTI WAGONR
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0
200000400000600000800000
100000012000001400000
160000018000002000000
2004-05
2006-07
2008-09
2010-11
Domestic Sales Trends
PassengerVehicles
India manufactures over 12 million 2 an
wheeled vehicles and exports about 1.6 m
every year
LITERATURE REVIEW : AUTOMOBILESECTOR IN INDIA
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LITERATURE REVIEW : AUTOMOBILESECTOR IN INDIA
Second fastest growing automobile market in the world
Immense demand for vehicles and a strong growth of the Indian automobile industry
expected due to:
Indias growing per capita income/ higher GDP growth
Increasing road development
Easy availability of finance at relatively low rate of interest
Graduating from two wheelers to four wheelers
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$2.5 billion car giant
Set up initially as a joint venture between Japans Suzuki
Motor Corporation and the Government of India
In 2003, the Government of India divested 27.5% stake
through Initial Public Offering
Now a subsidiary ofSuzuki 54.2% stake with Suzuki, and
18.5% stake with the government of India
R&D hub for Suzuki in Asia
Achieved near monopoly for over a decadeIts product Maruti 800 triggered an auto revolution in the
country
Known across the nation for its after sales services, service
satisfaction, and value for money
CONTD
MARUTI
SWIFT
MARUTI IN INDIA
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SWOT ANALYSISStrengths
Established distribution and after-sales networks
Understanding of the Indian market and ability to liaison wigovernment
Ability to design products with differentiating features
Brand Image
Experience and Know-how in technology
Weaknesses
Lack of experience with the foreign market
Inexperience with foreign workforce
Heavy Import tariffs
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Opportunities
Increased purchasing power of Indian middleclass category
Govt. subsidies
Tax benefits
Foreign collaboration
Threats
Emerging competition
Increasing cost of inputs
Rapid change in customer preference
Possible labour unrest
SWOT ANALYSIS
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PEST ANALYSISPolitical
Maruti ltd. Acquired by Indian Govt.
Govt. provided various concessions for Maruti 800
In May 2002, cabinet committee of disinvestment approved the exit of
joint venture
Pro labour/ pro investor government
Economical
High GDP growth
Rising Disposable Income
Early 2003 Maruti made an IPO
Entry of new players in the Indian market
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Social
6.8 million population has annual income > 12 lakh
Changing consumer preference
Changing life style in urban India
Technological
Transfer of technologies from Suzuki Japan to India
Development of new models in India rather than import from
Automation of manufacturing assembly
Rapid change in environmental standard e.g. Bharat I,II,III
PEST ANALYSIS
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PORTERS FIVE FORCES MODELThreat of new Entrants : Increasing
Most of the global players are attracted toward Indian marke
Welcoming government policies
Power of supplier : low
Large no. of automobile component suppliers
Bulk buyer can bargain high
Economies of scale
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Power of buyer : Increasing
Increasing awareness among the consumer
High expectation
Threat of substitute : Low to medium
Consumer could shift to hybrid and electric cars
Industry Rivalry : High
New player are entering in market
Competition in selected segments are very high e.g. small and
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PORTERS GENERIC STRATEGY
Differentiation
Performance
Mileage
Best match with Indian road conditions
Less Maintenance cost
Resale price
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MARUT
ISWIFT
Indian car
Inspired by avant-garde European design in an innovative
box shapeBuilt to typical Indian precision and attention to detail
Adapted and tested to the unique Indian road conditions andcustomer requirements
An example of the growing recognition of Indian intellectual
and engineering capability as 25 Indian engineers from Marutihave worked with their Japanese counterparts in Suzuki for two
years to design this vehicle
MARUTIWAGON R
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MARUTISWIFT
HYPOTHESIS DEVELOPED
Maruti Wagon Rs saleability arises from the valuesof its features and not from its own brand.
Values of the umbrella brand responsible for the
success of Maruti Wagon R are after comfortablesitting space, mileage, ease of availability of the spare
parts, and value for money.
Maruti Wagon R is one product from the MarutiEmpire that has achieved success and popularityamong the middle class Indian families and youth
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METHODOLOGY FOLLOWED
To test the hypotheses
Primary source of data: a questionnaire containing a set oquestions centred on:
Purchasing decisions of consumers
Desirable features
Competition
Target audience of the research: urban middle class and yoforms the bulk of Wagon customers
Secondary source of data:
Data available on internet and in literature
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DATA COLLECTION AND ANALYSIS
1. Which car do you own?
Maruti Hyundai Honda Mahindra Other
2. Would you like to go for Maruti WagonR as your new car, if you dont already ow
3. How would you rate Maruti WagonR in the following areas:
After sales service Mileage
Maintenance Performance
Driving
4. Do you find it easy to get the spare parts of Maruti wagonR?
5.How do you Maruti WagonR based on the following parameters:
AC cooling Ride on a bumpy road
Noise of the car Comfort
Gear shift Steering
Cost of purchase
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DATA COLLECTION AND ANALYSIS
6.Which car type do you prefer?
Diesel Petrol Electric Other
7. Which car would you buy from the following:
Hyundai Santro Hyundai i-10 Chevrolet Beat
8. Why would you buy the above mentioned car:
Brand value/ status attached
Utility & comfort
Value for money
Ease in maintaining & getting services
Cheaper maintenance & service (spare parts)
9. Would you buy Maruti WagonR even if its after sales service provider is not Mar
10. How do you rate services provided by Maruti?
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MARUTISWIFT
ANALYSIS
0
20
40
60
80
Yes
No
May be
020406080
100120
How would yourateMaruti
WagonRin thefollowing areas
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MARUTISWIFT
ANALYSIS
020406080
100120
Excellent
Very Good
GoodSatisfactory
Poor
0
5
10
15
20
25
30
35
Fuel Variant
How do youMaruti Wagon
based on thefollowingparameters
Whichcar typedo youprefer?
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CONCLUSION
A success story for: WagonR
Easy availability of spare parts
High quality after sales service
Excellent mileage & performance
Smooth drive even on a bumpy road
Low cost of purchase
Successful AC cooling
Negligible noise of car
Smooth gear shift and power steering
CNG or petrol variant preferred to others
EasyAvailabili
of spareparts
Low
maintenae
Valuefor
money
MARUTISWIFT
Biggest competitor - H
Major reasons for drifting
design
brand value
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IMPLICATIONS
Maruti WagonR - Peoples car
Bottle neck competition between Hyundai and Maruti -necessary to take measures to overcome the area of downfall
Factors to be improved:
Design
Style Brand status
Utility
Luxury at usual prices
No car in the premium segment cars available only inthe compact to midsize segment
Further product enhancements
less pollution producing
power-driving engines
more seating space
Brand image enhancements through powerful brand
endorsements and advertisements
MARUTISWIFT
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FUTURE RESEARCH
Maruti Suzuki should do proper quality check
before launching new model e.g. recall of A-star
Maruti Suzuki has to need launch new model in
MUV and SUV segment
Company has to have tight cost control for
competing TATA and Hyundai in A car segment
MARUTI SWIFT
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T
HANKY
OU
!!
MARUTI SWIFT