maruti segmentation

SUBJECT: Marketing Management ASSIGNMENT: Report On Maruti Suzuki

SUBMITTRD TO: Mr. Hitesh Manocha sir SUBMITTED BY: Debnath Ganguly G. Chakrapani Gourav sinha Ravindra Pal Marwal Jjitendra Singh FROM GROUP-7 Page 1 of 17

Introduction Maruti Suzuki India Limited a partial 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 hatchback Ritz, A-Star, Swift, WagonR, Estillo and sedans DZire, SX4, in the 'C' segment Maruti Eeco and Sports Utility vehicle. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India, and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. The company's headquarters are located in New Delhi Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800 ,till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Due to the large number of Maruti 800s sold in the Indian market, the term Maruti is commonly used to refer to this compact car model. Till recently the term Maruti, in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. the main Mission is To provide maximum value for money to their customers through continuous improvement of products and services and the Vision is Creating customer delight and shareholders wealth . Maruti Suzuki have more than 45% shares in market and Customer satisfaction among all car makers in India for ten years in a row in annual survey by J D Power Asia Pacific, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan.

The main object of the study is Page 2 of 17

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Maruti Suzuki targeted the 1.90 to 2.30(maruti800), 2 to 3.40(alto, eeco), 4 to 7(swift), 15 to 19 (kizashi). What are the various segmentation maruti followed for these cars Analyze why Maruti don’t have 30 lack range car. What are the Recommendations for these cars? Some of the major cars are given below……..they are maruti 800,A-star,swift,eeco,kizashi.

Maruti 800 Page 3 of 17

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Maruti 800 launched in December 1984. It is First choice for all those who want a value for money like little money and big in performance. Considerable mileage and low maintenance cost. Maruti 800 have different modals i. 800 AC Uniq ii. 800 Duo Std LPG iii. 800 AC - BS III iv. 800 Duo AC LPG Price range is between 1.90 lacks to 2.30 lacks. Maruti 800 have different types of color i. Superior red ii. Bright red iii. Blue

Segmentations….. Maruti targeted various segmentation for maruti 800 Market segmentation Geographic:   

Region: maruti targeted in India region wise based on culture Country: half of the sales of maruti 800 in India only, but it is also exported to other countries including Switzerland, Germany, the Netherlands, and Finland. Rural and urban: maruti 800 concentrate on mostly rural and urban areas because most of the population is living rural and urban areas only, 60% of the Indian population is in rural areas and they have less income for that maruti 800 can available cheaper and quality than others.

Demographic:      

Family size: maruti 800 more flexible, comfortable for small size family based on their income. Income: people falling in category of middle level income and low level income. They are more interest, willing and able to purchase maruti 800. Family status: Middle class and low class family easily can purchase and they can show their family status in society. Occupation: maruti 800 very use full to any employee, student or any other business professionals. Gender: men or women in a family any one can purchase based on their income or profession. Age: In family senior citizens can purchase maruti 800.

Psychological:

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Life style: middle and upper class family wants to leave with their own life styles. Maruti 800 can satisfy middle class family and it is suitable for their life styles. Social culture: people who belong to middle class and upper middle class people social status people can choose maruti 800. Personality: people who have sporty attitude having unique style statement would suitable for maruti 800.

Behavioral:     

Occasions: festival seasons like DIWALI, DHASARA, NEW YEAR because low interest, discounts and financing people can go for purchasing a car. Benefits: on purchasing of a car customer can also look for more benefits like mileage, capacity, structure, price and many more things. Attitude: maruti 800 have innovative technology, brand value and good feedback can change customer attitude towards maruti 800. Brand loyalty: maruti Suzuki have brand value, brand shares in market, it is Indian flavor. Price sensitivity: maruti 800 have lesser price than others. Maruti is giving financing, less interest.

Maruti 800 Vs Tata Nano: Maruti 800 Tried, Tested & Trusted Brand since 25 years. LPG & Petrol. Easy to fill both LPG and Petrol from outside. Lowest maintenance cost. Very economically priced spares. Supported by the largest Service network in India.

Tata Nano Yet to prove itself. Only petrol. Customer needs to open the front bonnet to get the vehicle refueled. Traditionally High Maintenance cost of Tata. Quality of parts compromised to maintain low price - more wear and tear. Less than 20% of the size of Maruti service network.

MARUTI 800 FEATURES: Page 5 of 17

In the present scenario, another challenge has been thrown over Maruti 800 by making European safety norms standard in the country. In terms of safety standards, design and structure of the car takes away the major credit but unfortunately Maruti 800 has a two decades old design. Though Maruti Suzuki is working to rejuvenate its first car with innovative features and better design, the chances of 800 to climb upwards are less. Today, there are many cars in competition with the old horse. Infact, Maruti Suzuki’s own Alto has become a tough competitor of 800. Gradually, as the numbers of small and affordable cars are increasing in the Indian car market, the future of Maruti 800 is becoming misty. The following are the some of the following are the some of them:      

Better pick-up and speed. 3 cylinder engines is more stable. Higher pulling capacity at lower engine speed. Easy to use in city as well as hilly roads. More than 25 lacks M800 customers in India Convenience and Safety.

 The following shows that evident that Maruti-800 is dominantly the first 4wheeler purchase from the respondents.

Is Maruti-800 the First 4-wheeler purchase? 80%

20%

COUNTRY WISE EXPORTS: Page 6 of 17

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Maruti 800 sales in other countries also. The following report shows sales in various country

15%

64%

Asia Africa USA Oceania Europe

9%

2%

10%

SALES REPORT: 

Sales report of Maruti 800 as compared to another maruti product as follows.

3%

36%

4% 28%

Zen M800 Omni Gypsy Alto MARUTI SUZUKI EECO 1%

28%

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This car was launched on 7th January 2010 Focus on “A Big Car” with space and comfort for family Superior functionality and drivability Flexi-seating with 5 and 7 seat options Roomy interiors Sliding doors add to ease entry and exit Air-conditioning BS-IV compliant Superior, in-house developed 1200 cc petrol engine with 73 bhp power First-time ever DSA transmission Petrol Fuel efficiency 15.1 kmpl Beige and grey dual-tone interiors High ground clearance ELV compliant The Eeco is available in three versions including petrol, LPG and CNG. It is more use full for business purposes

MARUTI SUZUKI EECO FEATURES: Variant

Price

Key Specifications Maruti Suzuki Eeco

Eeco 5 seater

3,00,863/Engine: 1196, 5/M gears, Power: 73, A/C, P/S, P/W, 5 seater, Ex-Showroom Mumbai 5 speed manual gear.

Eeco 7 Seater

3,23,032/Engine: 1196/4, 5/M gears, Power: 73, P/S, 7 Seater Ex-Showroom Mumbai

Eeco 5 seater with AC 3,35,631/Engine: 1196/4, Power: 73, A/C, P/S, P/W, 5 seater with AC. Ex-Showroom Mumbai

Segmentation………. Page 8 of 17

Maruti followed some of the segmentation Geographic: 

A car for both rural and urban families.

Demographic:  

Meant for big family Commercially viable, i.e. can be used as school van and other purpose.

Psychological:  

Appealing to the lower middle class joint family. Big car, low price and high comfort.

MARUTI SUZUKI A-STAR 

It is introduced in the year 2008. Page 9 of 17

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It is a concept car because it is for first time that the Suzuki has a concept in india. It is first Japanese Indian concept vehicle. Mostly concentrated on segment-A . MARUTI -ALTO is market leader in this segment. It is available on Expected price, it is mostly suitable for middle class family. A-STARS expected price to be around 3 to 4 lacks. Main compotator is Hyundai i1 0.

Segmentations…… Demographic:     

Age: concentrated on 20-35 age people. Gender: male and female. Family size: small family size people, family having 3 -4+ people. Income: family having income 300000 to 500000 and above. Occupations: professionals, officials, supervisors, home makers, youngsters.

Psychographic:  

Social class: middle class, upper lower, working class. Life style: more comfortable for middle class life style family.

Behavioral:  

Benefit: more quality, providing more services, speed Readiness stage: interested, intending to buy.

MARUTI SUZUKI SWIFT 

Maruti swift launched in the year 2004. Page 10 of 17

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Maruti swift have two various types i. Maruti swift ii. Maruti swift Dzire Price of Swift range is i. Maruti swift-----4,27,635. ii. Maruti swift Dzire-----4, 96,617. New innovative technology as used in design of swift The distinctive Swift design DNA has been retained in the New Swift, while taking it to the next level. High quality materials and upholstery for a premium feel.

Segmentation………. Geographic: 

Delhi NCR is one of the major targeted markets and also concentrated main metro politen areas.

Reason for this segmentation: 

Launching the 4 lakh car will give an added advantage of tax. If a car is launched in Delhi at a price below 4Lakh the road tax will be only 2% otherwise it is 4%

Demographic:  

Premium hatchback segment. 18 to 45 years of age

Psychological:    

Adventure loving Style conscious Mileage conscious Easy handling of veichels

Features:   

Power ……………………………….87bhp @ 6000 rpm Pick up……………………………….60 Km/hr in 6seconds Mileage………………………………12Km/Ltr

MARUTI SUZUKI KIZASHI Page 11 of 17

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It is launched in the year 2010. It is first Maruti car in the D-segment to be launched in India. Kizashi has stunning features user friendly control and attractive looks. It is mainly located in metropolitan areas . The price of the kizashi is between 16.50 lacks to 17.50 lacks. Kizashi have two various types i. Maruti Suzuki kizashi MT ii. Maruti Suzuki kizashi. It is mainly concentrated on high status people only.

Segmentations……….. Demographic:     

Age: In India youngsters have 75% of the population, for that maruti mostly concentrate on 20 to 34 yr aged persons. Gender: as per gender maruti concentrate on both male and female Family size: maruti concentrate on family size having 3 to 4+ members. Income: mostly high income family, range is 50000-1500000 and over. Occupation: professional’s persons, official are workers, youngsters.

Psychographic:  

Social class: mostly concentrate on upper middle class and high class. Life style: highly competitive persons in a society like achievers.

Behavioral:  

Benefits: maruti gives good services, high futures, good quality. Brand loyalty: maruti have brand value and high shares in market.

Target market:   

It is into a Luxury car segment, it is mainly targeted on high class people with its sporty look and comfort. Its main object is will be focus on status. It will target an un-compromised combination of in-expensive and emotional appeal.

Analyze Why Maruti Suzuki Does Not Have 30 Lacks Car? Page 12 of 17

As per the socio-cultural formation of the Indian economy the company did not find it viable as the market for this kind of cars is very small. Only 10% of the Indian population can afford this kind of cars. e.g. Audi sold 555 cars in September 2011in India where as Maruti Suzuki Kizashi had recorded a confirmed booking of 500 cars even two weeks before the car was launched. In order to add on to this situation there are many companies like BMW, Mercedes, Hyundai, who are already catering to this segment for years. These companies also manufacture high technology cars. Thus it is not viable for Maruti to develop such high technology as well as enjoy the economies of scale.

Company Sales Page 13 of 17

The Board of Directors of Maruti Suzuki India Limited approved the financial results for the third quarter of 2010-11 (October- December 2010) here today. The Company achieved Net Sales (net of excise) of Rs 92,767 million during the third quarter of 2010-11, a growth of 26.5 per cent over the same period last year (October-December 2009). The Net sales in Quarter 2 (July-September 2010) was Rs 89,371 million. Net Profit during the third quarter of this fiscal stood at Rs 5,652 million. In Q3 last fiscal (2009-10), the Net Profit was Rs 6,875 million. Net Profit in second quarter of the current fiscal (July-September 2010) was Rs 5,982 million. The third quarter this year compared to the same period last year was marked by pressure on margins primarily due to adverse foreign exchange movement and higher royalty payout. Increase in commodity costs during the quarter also impacted the margins. Unit Sales In the October-December 2010 quarter, Maruti Suzuki's domestic sales volume grew by 36.8 per cent to 299,527 units, led by Alto, Wagon R and Swift. The Company registered its highest-ever sales in the domestic market with 107,555 units in October 2010. In November 2010, the domestic sales touched 102,503 crossing the 1 lakh milestone for the second time in the quarter. During the quarter, all models continued to achieve good sales numbers. The Company's volume in the domestic A2 segment grew by 35.3 per cent, while in the A3 segment, sales volume grew by 26.4 per cent, compared to sales in October-December 2009. The Company's sales in the C segment, comprising Omni and Eeco, grew a robust 78.5 per cent. At the end of the Quarter, sales network stood at 889 outlets, covering 631 cities (end Mar'10: 802 outlets, 555 cities). Service network stood at 2,879 workshops, covering 1,373 cities. (end Mar'10: 2,740 workshops, 1,335 cities).

Recommendations Page 14 of 17

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With launch of a new car model in the market they should stop production of the older versions. This will increase the sale of the new model and will also be more cost effective and profitable. They should launch more sports car versions as Indian population consists of more young people. Cars with feminine colors and easy to handle cars will sale easily as the number of female drivers are on a rise. Advanced features like automatic gears, increased fuel efficiency and safety features are also at a high demand in low price cars. Use of solar panel to supplement fuel partially will boom the market due to the inflation in the petrol prices. Maruti should start producing cars for the lower segment with lower prices. Company should take care of environmental damages due to increase in traffic.

Conclusion Page 15 of 17

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We concluded that more than 45% of the market is captured by the maruti and then remaining Tata and Hyndai. The segment of small cars is captured by Maruti 800 and then Tatanano. The shares in the market are captured by Maruti, Hyndai and Tata. Working people specially those who are front line managers select cars depending upon fuel efficiency and prices. The segment of luxury cars captured by Toyato. Majority of the people find the service centers not adictvate depending upon the increasing number of cars. The segment of commercial cars is captured by both Maruti and Tata. Most of the people are satisfied with the objective they purchased their cars like status or power. Now the world changing because of the standard of the people.

Acknowledgement Page 16 of 17

We heartily thank MR of for sharing his knowledge and experience about Maruti Suzuki without which this project would not have been possible. He not only gave us the information we wanted, but also shared several documents and reports.

Conversations Debnath What are the Different cars do you keep? Manager Swift, Sporty Swift, SX4, R3, Cervo and Kizashi.

Debnath Who Purchases which kind of cars? Manager The sporty cars like swift and R3 are purchased by mainly youngsters where as the Cenevo, Kizashki, Sx4 are purchased by a bit elderly people say 35 or so. Debnath Which income groups do you suppose they belong? Manager If u multiply the price of the car by 2, you will get their annual Income. Debnath Why don’t Maruti have a thirty lack car? Manager In India we don’t have so many so much rich people. On top of that there are so many companies already so I don’t think it will be a great Idea. Since you people are doing project on this topic, you must be aware that Maruti likes to produce in huge numbers so that their cost comes down. Debnath Thank you, sir. Thank you for your time.

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