ROUTE FOLLOWED

LITERATURE REVIEW MARUTI SWIFT AUTOMOBILE SECTOR IN INDIA MARUTI IN INDIA MARUTI WAGONR HYPOTHESIS DEVELOPED METHODOLOGY FOLLOWED DATA COLLECTION AND ANALYSES CONCLUSION AND IMPLICATIONS FUTURE RESEARCH

LITERATURE REVIEW : AUTOMOBILE SECTOR IN INDIA

Domestic Sales Trends
2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 2004-05 2008-09 2006-07 2010-11

Passenger Vehicles

India manufactures over 12 million 2 and 4wheeled vehicles and exports about 1.6 million every year

LITERATURE REVIEW : AUTOMOBILE SECTOR 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

CONTD

MARUTI IN INDIA
$2.5 billion car giant
MARUTI SWIFT

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 of Suzuki 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 decade Its 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

SWOT ANALYSIS
Strengths

 Established distribution and after-sales networks  Understanding of the Indian market and ability to liaison with the
government

 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

SWOT ANALYSIS
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

PEST ANALYSIS
Political

 Maruti ltd. Acquired by Indian Govt.  Govt. provided various concessions for Maruti 800  In May 2002, cabinet committee of disinvestment approved the exit of Govt. from
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

PEST ANALYSIS
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 outside  Automation of manufacturing assembly  Rapid change in environmental standard e.g. Bharat I,II,III

PORTERS FIVE FORCES MODEL

Threat of new Entrants : Increasing

 Most of the global players are attracted toward Indian market  Welcoming government policies
Power of supplier : low

 Large no. of automobile component suppliers  Bulk buyer can bargain high  Economies of scale

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 mid car segment

PORTERS GENERIC STRATEGY

Differentiation

Performance Mileage Best match with Indian road conditions Less Maintenance cost Resale price

MARUTI WAGON R
MARUTI SWIFT

Indian car Inspired by avant-garde European design in an innovative

box shape

Built to typical Indian precision and attention to detail Adapted and tested to the unique Indian road conditions and
customer requirements

An example of the growing recognition of Indian intellectual

and engineering capability as 25 Indian engineers from Maruti have worked with their Japanese counterparts in Suzuki for two years to design this vehicle

HYPOTHESIS DEVELOPED
MARUTI SWIFT

Maruti Wagon Rs saleability arises from the values of its features and not from its own brand.

 Values of the umbrella brand responsible for the

success of Maruti Wagon R are after comfortable sitting space, mileage, ease of availability of the spare parts, and value for money.

 Maruti

Wagon R is one product from the Maruti Empire that has achieved success and popularity among the middle class Indian families and youth

METHODOLOGY FOLLOWED
 To test the hypotheses  Primary source of data: a questionnaire containing a set of 11 questions centred on:  Purchasing decisions of consumers  Desirable features  Competition  Target audience of the research: urban middle class and youth forms the bulk of Wagon customers  Secondary source of data:  Data available on internet and in literature

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 own it? 3. How would you rate Maruti WagonR in the following areas: After sales service Maintenance Driving Mileage Performance

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 Noise of the car Gear shift Cost of purchase Ride on a bumpy road Comfort Steering

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 Maruti? 10. How do you rate services provided by Maruti?

ANALYSIS
80 60 40 20 0

MARUTI SWIFT

Yes No May be 120 100 80 60 40 20 0

How would you rate Maruti WagonR in the following areas

Excellent Very Good Good Satisfactory Poor

ANALYSIS
120 100 80 60 40 20 0

MARUTI SWIFT

Excellent Very Good Good Satisfactory Poor 35 30 25 20 15 10 5 0

How do you Maruti Wagon R based on the following parameters

Which car type do you prefer?

Petrol Hydro Diesel Electric CNG Fuel Variant

CONCLUSION
A success story for: WagonR Easy availability of spare parts

MARUTI SWIFT

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 Value for mone y

Easy Availability of spare parts After sales servic e Low maintenanc e

CNG or petrol variant preferred to others

Biggest competitor - Hyundai i10 Major reasons for drifting of people away: design brand value

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 in the 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


MARUTI SWIFT

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

THANK YOU !!