A Project Report On “Marketing Techniques Of Maruti Suzuki”

Dear students, this project report aims to provide an in-depth perspective on the Marketing Techniques Of Maruti Suzuki that have enabled Maruti Suzuki to attain market leadership in the Indian automobile industry. By studying this report, you will gain insight into how a company develops its product portfolio, pricing, promotion and distribution strategies to appeal to consumers across segments. The report analyzes Maruti’s journey from inception to becoming India’s largest passenger vehicle manufacturer. It also explores the company’s customer relationship practices, rural market growth plans and responses to emerging industry trends. Additionally, it covers findings from primary research to understand customer perceptions and purchase behavior regarding Maruti Suzuki cars.

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Instructions For Students to Create Project on “Marketing Techniques Of Maruti Suzuki”

This Project report on Marketing Techniques Of Maruti Suzuki should provide a good foundation for you to understand automotive marketing concepts. You can use it for your own secondary research projects on Maruti Suzuki or any car brand by:

Referring to the company details, marketing approach and consumer survey findings covered in the report

Conducting more primary quantitative and qualitative research through customer interviews, questionnaires etc.

Developing your own competitor analysis, SWOT frameworks and marketing strategy suggestions

Creating segmented customer profiles supported by data and your proposed value propositions for each

Authoring the final project report applying marketing principles learned in class. Add relevant charts, tables where applicable.

You can choose any car brand besides Maruti and replicate a similar structured analysis. Compare marketing strategies across two players. The scope for research is vast – product localization, digital marketing, advertising etc. Make it an engaging project harnessing your creativity!

Brief Summary of Project

Introduction

The passenger vehicle industry in India has undergone immense transformation over the past two decades. From a closed, licensed regime till the 1990s, the automotive sector was opened up for competition and foreign participation in the 2000s. This proved to be an inflection point, as rising household incomes and availability of affordable car models catalyzed massive demand across urban and rural markets.

India became the 5th largest car market globally with annual sales exceeding 3 million units. The presence of manufacturers like Maruti Suzuki, Hyundai, Mahindra led the expansion by understanding consumer needs and aligning manufacturing plus go-to-market strategies accordingly. As a result, India is on track to become the 3rd largest automobile industry worldwide by 2025.

This project report focuses on analyzing the marketing mix, techniques and strategies deployed by Maruti Suzuki India Limited to attain undisputed leadership in the Indian passenger vehicle space. With 6 out of 10 cars on Indian roads being a Maruti model, the company has shaped buyer perceptions regarding family mobility.

The Automobile Sector in India

The advent of motor vehicles in India happened in the late 19th century during British rule. But growth remained slow till the middle of the 20th century. Barriers like high import duties, lack of manufacturing capabilities, low income levels and underdeveloped road infrastructure constrained automobile penetration across the population.

Post-independence in 1947, the Socialist regime focused more on public transportation. Cars were perceived as an elite possession affordable only to the rich businessmen or senior government officials. Players like Hindustan Motors and Premier Automobiles had a few models on offer without much motivation to innovate or expand production volumes.

The protectionist policies continued till the 1980s with a strict license permit system for manufacturing facilities and model launches. Waiting period extending upto years for models like the Hindustan Ambassador or Premier Padmini was common due to limited supply amidst growing demand. The sector was finally opened up in the 1990s which enabled foreign companies like Daewoo, Peugeot, Mercedes-Benz to enter either independently or through JVs.

However, the turning point came with the entry of Maruti Udyog in 1983 backed by Suzuki of Japan. It revolutionized the market by launching the Maruti 800 model on a mass scale at an affordable price point. This fuel-efficient and durable car became India’s first people’s car for the middle class nuclear families.

Liberalization in 1991 coupled with rising disposable incomes attracted more players both Indian business groups like Tatas and M&M as well as foreign auto majors. Competition intensified through the 2000s across hatchbacks, sedans and SUV categories catering to an expanding customer base. From a luxury or lifestyle symbol earlier, cars were now seen as a necessity for personal commute and family transportation. Higher customer affordability coupled with flexible financing options made the automobile dream realizable for millions of households.

India became the 2nd fastest growing car market registering a CAGR of 12% over the past decade. Annual production volumes touched 37 million units across passenger and commercial vehicles. Rising awareness regarding latest technologies, safety norms, emissions regulations etc. made consumers also more discerning in purchase behavior. This spurred manufacturers to differentiate offerings through frequent feature enhancements and model launches. They started deploying global platforms and supply chains to deliver value plus experience comparable with international standards at rational price points.

Today cars have become integral not just for inter or intra city travel but also for livelihoods through cab aggregators, merchandizing businesses etc. The success of Maruti Suzuki in tuning to market trends and consumer sentiment over the past nearly four decades provides key learning for analyzing marketing strategy.

Top 5 best-selling automobile models in India (new passenger and commercial vehicles), 1985–2023

Year	1st	2nd	3rd	4th	5th
1985	Maruti 800	Premier Padmini	Hindustan Ambassador	Mahindra Jeep	Maruti Van
1986	Maruti 800	Premier Padmini	Hindustan Ambassador	Maruti Van	Mahindra Jeep
1987	Maruti 800	Premier Padmini	Maruti Van	Mahindra Jeep	Hindustan Ambassador
1988	Maruti 800	Premier Padmini	Maruti Omni	Mahindra Jeep	Hindustan Ambassador
1989	Maruti 800	Premier Padmini	Maruti Omni	Mahindra Jeep	Hindustan Ambassador
1990	Maruti 800	Premier Padmini	Maruti Omni	Mahindra Jeep	Hindustan Ambassador
1991	Maruti 800	Maruti Omni	Premier Padmini	Mahindra Jeep	Tata 407/608/609
1992	Maruti 800	Mahindra Jeep	Maruti Omni	Tata 407/608/609	Hindustan Ambassador
1993	Maruti 800	Mahindra Jeep	Maruti Omni	Tata 407/608/609	Hindustan Ambassador
1994	Maruti 800	Mahindra Jeep	Maruti Omni	Tata 407/608/609	Hindustan Ambassador
1995	Maruti 800	Mahindra Jeep	Tata 407/608/609	Maruti Esteem	Maruti Omni
1996	Maruti 800	Mahindra Jeep	Tata 407/608/609	Maruti Omni	Maruti Zen
1997	Maruti 800	Mahindra Jeep	Maruti Zen	Maruti Omni	Tata Sumo
1998	Maruti 800	Maruti Zen	Maruti Omni	Mahindra Jeep	Tata 407/608/609
1999	Maruti 800	Maruti Zen	Maruti Omni	Hyundai Santro	Mahindra Jeep
2000	Maruti 800	Hyundai Santro	Maruti Zen	Maruti Omni	Mahindra Jeep
2001	Maruti 800	Hyundai Santro	Maruti Zen	Maruti Omni	Tata Indica
2002	Maruti 800	Hyundai Santro	Tata Indica	Maruti Zen	Maruti Omni
2003	Maruti 800	Hyundai Santro	Tata Indica	Maruti Zen	Maruti Omni
2004	Maruti 800	Maruti Alto	Hyundai Santro	Tata Indica	Maruti Wagon R
2005	Maruti Alto	Hyundai Santro	Tata Indica	Maruti 800	Maruti Wagon R
2006	Maruti Alto	Hyundai Santro	Tata Indica	Maruti Wagon R	Maruti 800
FY07-08	Maruti Alto	Tata Indica	Maruti Wagon R	Hyundai Santro	Maruti Swift
2008	data unavailable
2009	Maruti Alto	Maruti Wagon R	Hyundai i10	Tata Indica	Maruti Swift
2010	Maruti Alto	Hyundai i10	Maruti Wagon R	Maruti Swift	Tata Indica
2011	Maruti Alto	Maruti Wagon R	Hyundai i10	Maruti Swift	Tata Indica/Vista
2012	Maruti Alto	Maruti Swift	Maruti Swift Dzire	Maruti Wagon R	Mahindra Bolero
2013	Maruti Alto	Maruti Swift	Maruti Swift Dzire	Maruti Wagon R	Mahindra Bolero
2014	Maruti Alto	Maruti Swift Dzire	Maruti Swift	Maruti Wagon R	Hyundai i10
2015	Maruti Alto	Maruti Swift Dzire	Maruti Swift	Maruti Wagon R	Hyundai i20
2016	Maruti Alto	Maruti Swift Dzire	Maruti Wagon R	Maruti Swift	Hyundai i10
2017	Maruti Alto	Maruti Dzire	Maruti Baleno	Maruti Swift	Maruti Wagon R
2018	Maruti Dzire	Maruti Alto	Maruti Swift	Maruti Baleno	Maruti Vitara Brezza
2019	Maruti Alto	Maruti Dzire	Maruti Swift	Maruti Baleno	Maruti Wagon R
2020	Maruti Swift	Maruti Alto	Maruti Baleno	Maruti Wagon R	Maruti Dzire
2021	Maruti Wagon R	Maruti Swift	Maruti Baleno	Maruti Alto	Hyundai Creta
2022	Maruti Wagon R	Maruti Baleno	Maruti Swift	Tata Nexon	Maruti Alto
2023	Maruti Swift	Maruti Wagon R	Maruti Baleno	Maruti Brezza	Tata Nexon

Company Profile – Maruti Suzuki

Maruti Udyog Ltd. was founded in 1981 as a Government of India enterprise to accelerate automobile adoption and indigenous production in sync with national priorities. The first manufacturing facility came up in Gurgaon with Suzuki as the technical partner owning 26% equity at that time.

The iconic Maruti 800 model was first launched in 1983 based on Suzuki’s latest offering in the Japanese market then. Priced affordably at Rs. 45,000 coupled with superior fuel efficiency and lower maintenance cost, it became an instant hit with over a million cumulative sales in just 8 years.

Maruti created history through several landmarks – 50 lakh cumulative sales by 1997, 1 crore sales in 2003, launch of Swift and other contemporary high demand models from 2004 onwards. By 2005, the brand captured nearly 70% market share in India’s passenger vehicle space. In line with the changing industry dynamics, government divested its stake gradually leading to Suzuki increasing ownership to 56% by 2013.

Today Maruti Suzuki India Ltd. is the subsidiary managing operations related to automobile manufacturing, sales plus services for the Indian market. The Gurgaon facility started in 1983 has been supplemented by an integrated manufacturing plant in Manesar from 2006 onwards having an annual production capacity exceeding 1.5 million units. Together they have rolled out over 22 million cars in India so far.

With over 150 variants across 15 car models currently being offered, Maruti has an unmatched line-up suiting aspirations across price segments. From Alto to Swift, Baleno to Brezza – its extensive portfolio reflects deep consumer insights and ability to lead market trends. No competitor comes close to matching Maruti’s extensive reach of 3,750 sales and service touchpoints covering 1,950 towns and cities nationally. It exports to over 100 countries showing capability to manufacture for diverse global requirements too.

Maruti Suzuki Financial Performance

Maruti Suzuki has delivered an excellent financial performance year on year similar to its track record in market expansion.

Revenues: Grew from 16,500 crores in FY 2008 to ~70,000 crores in FY 2019 representing a CAGR of 12.3% over a decade. This sustained growth came from maximizing sales from portfolio models coupled with periodic launches to tap evolving preferences.

Bottomline: Profit after tax zooming from 1000 crores to over 7500 crores during the above period. High capacity utilization, greater operating leverage.

Market Share: Despite intensifying competition, the company has maintained above 50% share in the Indian passenger vehicle category since 2008 onwards. This shows customer trust in brand Maruti reflecting virtues like affordability, fuel efficiency, lower servicing needs etc.

The consistent performance establishes Maruti Suzuki’s deep understanding of Indian automobile space and ability to align its business strategy accordingly.

Marketing Mix for Maruti Suzuki

Analysing the marketing mix gives insights into the product, pricing, promotion and distribution strategies deployed by Maruti Suzuki India Ltd. to cement market leadership over decades.

Product/Service Portfolio

Maruti Suzuki offers the widest range of car models in Indian market currently to meet diverse needs of modern families. It classifies the portfolio into following segments:

1) Mini segment – Represented by Alto, old workhorse 800

2) Compact segment – Fastest growing segment with major contribution. Includes Swift, Dzire, Baleno, Ignis, Celerio models

3) Mid size segment – Models like Vitara Brezza and Ertiga

4) Mid size sedan segment – Ciaz

5) Utility vehicle segment – Gypsy, Eeco

The high volume models like Alto and WagonR cater to first time buyers or replacing existing cars with budget options. Brands like Swift and Baleno target youth who see cars as lifestyle products beyond being just utilities. The mid size plus MPV segments aim at growing families while Ciaz appeals to senior executives upgrading from small sedans.

Thus the portfolio mapping reflects Maruti’s segmentation approach aligning product propositions with pocket considerations for diverse target groups. Frequent styling overhauls and contemporary in-cabin experience ensure enduring customer connect. For example, Baleno redesigned in 2015 embodies the company’s Nexa retail identity targeting premium urban buyers.

Pricing

An optimal pricing strategy balancing affordability and profits is key to Maruti Suzuki’s sustained dominance. Models are launched targeting gradual upgrades for growing middle class based on pricing value perceptions.

For instance, the Alto 800 priced around 3 lakh is positioned as the most sensible starter car for young urban buyers. The older Alto then serves as upgrade for rural or lower income customers seeking no frills transportation over next 3-5 years. 

Swift marked a shift as the first premium hatchback expanding Maruti’s reach among youths seeing cars as lifestyle enablers beyond functional benefits. Its attractive design language, smart features and competitive pricing created a new segment pushing competitors to launch their variants over the years.

Maruti has been able to retain over 50% market share as its brand continues to signify sensible yet aspirational four wheel mobility with minimized total cost of ownership. From a pricing perspective, it straddles the pyramid adeptly tapping entry, middle and premium segments based on psychographic considerations too apart from just price bracket filters. 

Promotion Channels

Maruti deploys a judicious media mix across mass platforms to maximize awareness and consideration for respective target audiences. Television and print together drive nearly 80% of total ad spends focused on building model familiarity and brand imagery. Lighthearted family-led storytelling via TVCs conveys desirable attributes like spacious interiors, stylish looks, smart features and fuel economy. Icons like

Conclusion

Through this extensive project report, students would have understood the sophisticated “Marketing Techniques of Maruti Suzuki” that have earned the company undisputed leadership in India’s passenger vehicle market for over 30 years. By leveraging deep consumer insights to devise its product portfolio, pricing, promotion strategies and dealer network, Maruti Suzuki has delivered outstanding growth and profitability despite intensifying competition. The company’s investment in frequent model launches and brand building aligned to evolving customer aspirations show why no player comes close to its sales dominance nationally.

While the “Marketing Techniques of Maruti Suzuki” serve as an exemplary case study, students can build further perspective by evaluating practices followed by its competitors as well using frameworks like SWOT analysis. For instance, comparing critical success factors vs weaknesses across Maruti and Hyundai or Mahindra. Through primary research, students may uncover specific gaps in “Maruti Suzuki’s Marketing Techniques” from a consumer needs standpoint too. The scope to enrich understanding is immense, be it brand positioning, digital marketing or emerging trends like electric vehicles where “Maruti Suzuki’s Marketing Techniques” face renewed test. By brainstorming ideas beyond this project through additional research and creative thinking, students can shape into strategic marketing leaders driving success for automobile brands in future.

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