SUBMITTED TO: SUBMITTED BY: Mrs. PIMA BAINS ABHISHEK GUPTA

MBA 2ND YEAR

TO

MUL(Maruti Udyog Limited) INTRODUCTION

Ingrained in 1981. In 1983 Indian government made a joint venture with Suzuki Motor Corporation of Japan with 26% justness and is India's largest automobile company by unit sales (Indian passenger car market). In December 1983, Prototype Automobile was launched. Followed by the flooded privatisation of Maruti with IPO launch in June 2003

cont…

It’s manufacturing facilities are located at two facilities with capacity

Gurgaon – 4,50,000 units per annum.Manesar – 2,00,000 units per year and a Diesel engine plant with an annual capacity

of 100,000 engines.

Suzuki now owns 53.4% stake in Maruti. Sells every second car in India and

What is the need of Re-positioning?

A product may need to be repositioned only because of poor competitive performance.

Its of four types:-1. Image Repositioning 2. Product Repositioning 3. Intangible Repositioning4. Tangible Repositioning

Which one is used by Maruti? ALL THE FOUR

1. Image Repositioning- Price reduction of Rs.23,000 coupled with Rs.2,599 EMI scheme.

2. Product Repositioning- New design with Upgraded features i.e. power emission and power-steering.

3. Intangible Repositioning- EPS is added to take its “NEXT GEN” ALTO STAR to European market to compete with Santro and i-10 of Hyundai.

4.Tangible Repositioning- Alto Non AC- Rs.2.27 lakh Alto STAR LX- Rs. 2.65 lakhAlto STAR LXI- Rs. 2.85 lakh Alto STAR VXI- Rs. 3.66 lakhAlto Spin- Rs. 2.95 lakhAlto STAR 1.3- Rs. 3.20 lakh

TARGET MARKET Middle-class. Two wheeler aspirants. College going Youth. Women drivers. Maruti 800 owners (exchange scheme) Competitors product users ALTO STAR

at

2008 PARIS MOTOR SHOW

MARKET ENTRY STRATEGIES

Penetration/skimming strategy- Exclusive Pricing and Rs. 23000 cut is

the best penetration strategy used and makes it the only entry-level market leader since decades.

Product Differentiation- becomes the first choice of young car buyers intending to upgrade from a 2 wheeler.

Market Expansion Strategy-

Unparalleled Service Network-

Maruti has 4608 listed

authorized service stations and has 55 Express service stations on 40 highways across India.

Market PenetrationMarket Penetration Market DevelopmentMarket Development

DiversificationDiversification Product DevelopmentProduct Development

OTHER STRATEGIES Maruti 800 to take on Tata’s 1lakh car

with Rs.50,000-60,000 price cut as it plans to source dies from less expensive sources like Taiwan.

Maruti Alto(base model) to be in the Entry level segment.

A-Star to compete with Hyundai Santro and Fait Palio