1. MARUTI SUZUKI

2. Maruti Suzuki India ltd.
Presented By:-
Praveen Sharma
Sec-C 147
NDIM

3. Content
 Introduction
 Michael Porter’s 5 Forces Model for Industry
 PESTLE Analysis
 Glance on Maruti’s Strategies

4. Introduction( Brief)
 Maruti Udyog Limited (MUL) was
established in February 1981, though the
actual production commenced in 1983 with
the Maruti 800
 Maruti Suzuki is India's number one leading
automobile manufacturer and the market
leader in the car segment, both in terms of
volume of vehicles sold and revenue earned
 Until recently, 18.28% of the company was
owned by the Indian government, and 54.2%
by Suzuki of Japan. Later Indian Govt. Sold
its shares to F.I.I.’s .

5. Fig.
Michael Porter’s 5 New
Forces Model for Entrants
Industry Threat of New
Competitiveness Entrants
Industry
Bargaining Competitor Bargaining
Power s Power
Suppliers Buyers
of Rivalry among of
Suppliers existing firms Buyers
Threat of
Substitutes
Substitutes

6.  Threat from the new players: Increasing
• Most of the major global players are present in
the Indian market; few more are expected to
enter.
• Financial strength assumes importance as high
are required for building capacity and maintaining
adequacy of working capital.
 Rivalry within the industry: High
• There is keen competition in select segments.
(compact and mid size segments).
• New multinational players may enter the market.

7.  Market strength of suppliers: Low
• A large number of automotive components
suppliers
• Automotive players are rationalizing their vendor
base to achieve consistency in quality
 Market strength of consumers: Increasing
• Increased awareness among consumers has
increased expectations. Thus the ability to
innovate is critical
• Product differentiation via new features, improved
performance and after-sales support is critical
• Increased competitive intensity has limited the
pricing power of manufacturers

8. Threat from substitutes : Low to medium
•Consumer preference is changing (Mini cars are being
replaced by compact or mid sized cars)
•Setting up integrated manufacturing facilities may
require higher capital investments than establishing
assembly facilities
•India is also likely to increasingly serve as the sourcing
base for global automotive companies, and automotive
exports are likely to gain increasing importance over the
medium term
•competition is likely to intensify in the SUV segment in
India following the launch of new models at competitive
prices

10. The policies & objectives laid down by the Indian
Government regarding the automobile sector are:
 Exalt the sector as a lever of industrial growth and
employment and to achieve a high degree of value
addition in the country
 Promote a globally competitive automotive industry and
emerge as a global source for auto components
 Establish an international hub for manufacturing
small, affordable passenger cars and a key center for
manufacturing Tractors and Two-wheelers in the world
 Ensure a balanced transition to open trade at a minimal
risk to the Indian economy and local industry

11.  Sales of Passenger car has been increased to 8.45% per
year.
 Maruti now plans to tap the rural market, 60 per cent of
which runs on cash .
 Maruti has appointed 2,000 sales executives to target
customers in the rural areas.
 The manufacturing sector has grown at 8– 10 per cent per
annum in the last few years.
 More than 70 per cent of the VEHICLES purchase is on
credit.

12. Welfare Camps
Medical support & welfare
Education to
underprivileged
Road Safety
Maruti Driving Schools
Greening of Supply Chain
Adopting energy saving
technologies
Reducing water wastage
Green Growth

13.  Launched CNG kit for Alto, its highest selling
small car.
 The company as a proactive move is all set to
make its entire fleet of cars adhere to ‘end of
life vehicles’ (ELV).
 The company is involved with the
development of small and fuel-efficient car
engines.
 In future, the company has high plans to
increase the engine development work in
India along with other R&D operations

14.  The company uses next generation KB series
Engine in its new Hatchback car A-star.
 The company added Virtual Design Review to
its R&D activity to enable virtual validation to
reduce cycle time and development cost.
 In the field of alternate fuel technology, the
company developed LPG/CNG/HYBRID
system for MPI engine.

15.  3R- reduce, reuse, and recycle.
 Continuous process of promoting 100%
recyclable and reusable car parts.
 Targets reducing fresh water consumption and
implement rain water harvesting.
 Physical infra structure such as roads and
bridges affect the use of automobiles. If there is
good availability of roads or the roads are smooth
With the development or evolution of alternate
fuels, hybrid cars have made entry into the
market.

16.  Follows highest standards of Corporate Governance
 Customer can contact the Secretarial & Legal Department for
any questions/clarifications.
 Legal compliance reporting
The board periodically reviews reports of compliance with all
laws applicable to the Company, as well as steps taken by the
Company to rectify instances of non-compliances.
 The Company has developed comprehensive legal compliance
scheduling and management software by which specific
compliance tasks are assigned to each individual. The software
enables in planning and monitoring all compliance activities
across the Company.

17. Major Restructuring Exercise.
 The company focused on improving its
OPERATIONAL EFFICIENCY by upgrading
manufacturing using new manufacturing
techniques
 INCREASING CAPACITY, using information
technology in manufacturing
 Focus on NEW PRODUCTS at regular
intervals
 Venturing into OTHER RELATED
BUSINESSES like car finance , insurance
, buying and selling of used Maruti cars

18. New Strategy
 UPGRADED its manufacturing facilities to
meet the foreign challenge. ( CRDI, VVTI
engines)
 BROADENED its product portfolio( LUV -
ERTIGA)
 EXPANDED its sales and service network to
reach all over India.
 VENTURED into new associated businesses.

19. New Strategy
 PROMOTIONAL strategies including price
cuts, promotional offers, launching
campaigns
 VALUE ADDED SERVICES offering to its
customers

20. Upgrading manufacturing
facilities
 The company started its new car plant &
diesel engine facility at Manesar
 In 2008,Maruti increased its manufacturing
capacity from 800,000 to one million units
annually.
 The company inaugurated the new fuel
efficient KB engine plant at Gurgaon.
 In April 2009 Maruti launched K12M engine.
 In addition, it also increased its diesel engine
manufacturing capacity by 100,000 units
annually.

21. Large product portfolio
Maruti decided to cater all the segments of
Indian car market.
The company launched new models and
also upgraded its existing model at a
faster pace.
Maruti launched Alto in 2000.
In 2001,it launched a new model Maruti
Versa.
In 2003 ,New Zen and New Esteem were
launched.

22. Large product portfolio
 Maruti’s strategy to offer product at
every price point meant it had a
product whenever a customer wanted
to upgrade his car.
 The consumer did not have to buy a
competitor’s product , as Maruti
already a product at the relevant
price

23. Expanding business portfolio
Maruti also expanded its business
portfolio by starting new but related
businesses such as
-Maruti Driving School
-Maruti True Value
-Maruti Finance
-Maruti Insurance
Maruti plans to invest Rs-700 million by
2010 in the institute of Driving Training &
Research.
In 2001 Maruti established Maruti True

24. Promotional Strategies
In 2000, in an effort to regain its market
share, maruti slashed the prices of three ot
its models Maruti 800 ,Omni , Wagon R.
The company also offered vehicle
Insurance for Rs one only.
The company also started rewarding its
customers by giving them loyalty bonus
between Rs 8000 & Rs 25000 if they
exchange their cars for Zen,Wagon R,Alto
or Baleno.

25. Promotional strateges
Maruti started marketing Maruti 800 in
small towns targeting two wheeler owners
who could upgrade their two wheelers to
cars.
In 2004 Maruti started ‘2599’offer in which
consumers could buy Maruti 800 by paying
an EMI of Rs 2599 for seven years.

26. Distribution Network
 In 2001 it started an initiative called
‘Non stop Maruti express highway’.
Maruti developed 250 customer service
outlets along 20 highway routes by 2001-
02
The company also started ‘express service
facility’ to ensure service in minimum time.
It also offered a shuttle service and pick &
drop facility when the car was given for
servicing.

27. Distribution Network….. ( contd)
 it was the distribution network of Maruti
which set the company ahead from its
competitors.
In 2008-09,the service network of Maruti
covered 1314 cities across India.
Maruti has plans to cover 1700 cities by
2010,and also to increase the number of
service stations & workshops to over 3800
by 2010.

28. sold over 10million
cars.. !!!!
Thank you