Maruti Suzuki in Indian Premium Car Segment

MARUTI SUZUKI & INDIAN PREMIUM CAR SEGMENT Interim Report - Marketing Management INTRODUCTION: Indian automobile perseverance generally contributes 5% to India’s general GDP of $1. 4 trillion. The proposed bigness in 2016 of the Indian automotive perseverance varies between $ 122 billion and $ 159 billion including USD 35 billion in exports. This translates into a aid of 10% to 11% towards India’s GDP by 2016, which is balance than embrace the general aid. We can safely appropriate the tourist car dispense as a perfect grows in the selfselfcorresponding appearance if not balance than mentioned balance. Passenger cars keep sub descriptions folldue a timeliness in them and they are as follows: SEGMENTATION OF INDIAN CAR MARKET: As per SIAM (Society of Indian Automobile Manufacturers) The description of members are performed as per protraction of the conduct, (Passenger car member) 1. A1 - Mini - Up to 3400mm (M800, Nano) 2. A2 - Conglomerebuke - 3401 to 4000mm (Alto, wagon r, Zen,i10,A-star,Swift,i20,palio,indica etc) 3. A3 - Midbigness - 4001 to 4500mm (City,Sx4,Dzire,Logan,Accent,Fiesta,Verna etc) 4. A4 - Executive - 4501 to 4700mm (Corolla,civic,C rank,Optra,Octavia, etc) 5. A5 - Guerdon - 4701 to 5000mm (Camry,Eclass,Accord,Sonata,Laura,Superb,etc) 6. A6 - Epicurism - Balance 5000mm (S rank,5 train etc) 7. B1 - Van - Omni, Versa, Magic etc 8. B2 - MUV/MPV - Innova, Tavera, Sumo etc 9. SUV - CRV, Vitara etc A member, B member etc. were used antecedent. But now the memberation in India is performed on the discuss of protraction. Maruti Suzuki India Limited, the imported tourist cars action, generally holds a dispense distribute of encircling 45% in the tourist conducts member. The dominant distribute of the general 45% has principally end from tourist cars that appertain to the Mini/Compact hatchback or midbigness sedan. As Maruti Suzuki started its operations in 1981 the demands of the country’s automotive industries were supplyable/memorandum raze cars which Maruti very achievementeasily catered to. But very of-late the executive, guerdon and epicurism member cars are grdue balance than 20% integral year which is rectify than the augmentation of the conglomerebuke tourist cars. Here is a axioms which reiterates the augmentation of guerdon member cars in India. The axioms illusions the sum of cars whose rebuke is in the ramble of 15lakh to 30 lakh. Model| 2004/05| 2006| 2007-08| 2008| 2009| 2010| 2011| Skoda magnificent| Na| 769| 586| 694| 541| 2078| | BMW 3 train| -| -| 946| 1,075 (FY09)| 1,155| 2,220 (Jan-Nov)| | Audi A4| -| -| 102| 1,050| 1,658| 3,003| 4,210 (Q1-Q3)| Mercedes c rank| 785| 883| 1,127| 1,765| 1,607| 5,109 ( Jan-Nov)| 3,233 (Jan-May)| The balance axioms distinctly illusions there is a sinewy augmentation in the guerdon member that is substance seen in the Indian tourist member. So how far can Maruti Suzuki, a head in inferior car member, address the changing trends of Indian car dispense. Can it invert the achievement of inferior car sales in to the guerdon member to-boot? In ordain to test the demands and the rebukes of the epicurism rank and their lights and expectations on Maruti penetrateing guerdon car member we conducted the forthcoming interviews which are fond beneath INTERVIEWS WITH POTENTIAL CUSTOMERS: INTERVIEW 1: What is your mark? I am Prakhar Sharma. I am an electronics engineer and had been agoing for BEL for the terminal one year. At offer I am a learner in IIM Bangalore. Do you own a sedan? If yes, which car? My father would be the rightful enjoyor of the cars that we enjoy. He is a Government conductor. We generally own a SX4 petrol announcement. It is the ‘easily loaded’ petrol announcement, and we own it for balance a year. Do you own any other car? We do own a Maruti 800, which is environing 20 years old. Apart from that, my father has his function car as courteous-mannered. We reflection encircling buying a new car due the Maruti 800 was very old. What are the multitudinous factors you cogitateed antecedently you bought the car? Generally when a peculiar is contemplateing to buy a sedan, it is his avoid or third car acquisition. There are multitudinous factors fellow-creatures cogitate timeliness buying a car. Personally, the factors I reach that swing my excellent are Style, Power, Ergonomics and driving experiment. This is of road leading into representation that urban restriction requirements are met by the cars in this kind. What other cars did you assimilate folldue a timeliness antecedently buying the SX4? There are a sum of libertys usepotent in this rebuke ramble. We had basically zeroed down up on SX4 and Honda City. The Honda City is a truly amipotent car as courteous-mannered. The best romance I approved encircling it was the experiment. It is exceedingly mitigate folldue a timeliness a palm arrive-at sway steering. The artifice and inlands are truly scrupulous as courteous-mannered. What made you prime the SX4 balance the Honda City? We had a urban budget assigned towards the car, folldue a timeliness a flexibility of environing 1 lakh. Within that budget the two cars I truly approved was SX4 and Honda City. However, the Honda City dishonorpotent artfulness would absorb us as attendpotent as the SX4 easily loaded artfulness (folldue a timeliness all features already naturalized). So we felt that it was rectify rebuke for coin, and went parallel to buy the SX4. Apart from that, some other factors which swingd our determination was that livelihood absorbs of Maruti is very low, thin rivalncy are beforehand usepotent and don’t truly absorb that tall either. If you are contemplateing to upgrade to a rectify end sedan, would you go for a Maruti frequently? Say Kizashi? If I appropriate that I do not keep any budget constraints, then I probably would not go for a Maruti. The new Kizashi seems amipotent as far as artifice and technical peculiarations are disturbed, but the indicate Maruti has a cognizance attached to it. Maruti is the car that was trusted by your parents and grand-parents, it is the car that approximately integral Indian owns. If I nonproduction to own a tall end sedan, I would nonproduction to illusion it off as courteous-mannered. I reach that would not be feasible folldue a timeliness the Maruti tag friendd folldue a timeliness it. It does not keep that alliance of exclusivity. So I would administration out Maruti in the leading settle and go for a stigma which is not enjoyed by too abundant fellow-creatures. INTERVIEW 2: What is your mark? I am Vaibhav Singh, I graduated from IIT Kanpur. Currently am a PGP-I learner at IIM Bangalore. Prior to confederacy IIMB I worked at National Instruments for approximately 3 years. Do you own a car now? If yes what is the car Yes, I own a Maruti 800. What are the axioms you affect and disaffect encircling your general car? I reach a import of protection in contingency of Maruti principally due it’s a trusted stigma chiefly in India. Secondly it’s low on livelihood and its thins are beforehand useable. Also Maruti has a sinewy use network. What I don’t affect encircling Maruti, I get disordered as there are abundant cars in the selfselfcorresponding member and it’s very intricate to prime. Do you keep any other cars in the nativity? Which one do you affect comparatively? Yes we to-boot own a Ford Figo. I affect Figo balance Maruti 800 as it is newer and has abundant balance features. Are you planning to upgrade your car now? What are the key features you contemplate for in the car? I may upgrade folldue in a alien of years from now and in-great-measure to a sedan. The key features I gain contemplate for would be i. Stigma rebuke. How it’s seed in the dispense. ii. Quality iii. Rebuke iv. Features If Maruti ends up folldue a timeliness a new car would you be gaining to cogitate it? Why or why not? I gain in-great-measure not cogitate Maruti as my liberty. The discuss is that I friend Maruti folldue a timeliness low absorb so there is a stigma dissociate. I would rather cogitate a Honda or Toyota. What do you apprehend encircling the new car Maruti has systematic Kizashi? When I saw the car it was portrayed as a sports sedan but I apprehend the contemplates could keep been rectify. Basically, I don’t see Maruti car as a sports sedan. When a car is that extravagant it should to-boot add standing which I apprehend Maruti does not add. What can Maruti do so that you gain cogitate it as an liberty? I apprehend what most other companies keep performed by separating the stigma peculiar for epicurism cars, Maruti should do someromance resembling. If feasible leverage on some stigma that concentrates on epicurism member unmatched. If not anyromance else, they should atleast use sound ‘Suzuki’ and not ‘Maruti Suzuki’ to enwide a car in targeted member. Finally what are the two ocean discusss why you gain not buy a Maruti in the epicurism member? 1. There gain not be any standing reinannouncement 2. I do not friend Maruti folldue a timeliness tall operation. I barely apprehend it is low absorb and veritable. INTERVIEW 3: What is your mark? I am Shobhit Agrawal from Delhi. I completed my precedency from St. Stephen’s College. Currently am a PGP-I learner at IIM Bangalore. Do you own a car? If yes, which? Yes, we own a Volkswagen Polo for balance a year. We to-boot own a Maruti 800 but it’s not in a senior use now. What you affect and disaffect encircling your general car? We bought Polo due it was one of the rectify cars in provisions of operation in that rebuke ramble. We electred a top-end announcement of hatchback balance a low-end announcement of a bigger car. Polo has abundant features and most gravely we nonproductioned a car that is new and incongruous from the ones generally offer in fellowship. So Polo met most of our demands. There’s noromance peculiar which I don’t affect so far. If you nonproduction to upgrade your car in advenient what gain it be to? What are the key features you would contemplate for in the car? If I upgrade my car in advenient, it jurisdiction be to a sedan. Key features I would cogitate are i. Operation (engine) and mileage ii. Rebuke for coin – The car should be ergonomically cozy, it should keep amipotent features, rectify peculiarity and amipotent inland artifice & aesthestics iii. Brand – It should frame a announcement. iv. It should to-boot keep a amipotent dealership network and servicing network. Suppose you would nonproduction a epicurism sedan, and Maruti enwide cars it that member. Would you cogitate Maruti as your liberty? Why or why not? As I mentioned the key features I would be contemplateing for in a new epicurism sedan car, If I reach that a Maruti sedan meets my requirements, I may cogitate it as my liberty. But gone such an bombardment is cogitateably wide and tallly excellent, stigma gain to-boot indicate an grave role in primeion as it is a standing record. What’s your light encircling Maruti Suzuki SX4 and Kizashi assimilated to competitors in their member? When I see SX4 frequentlyst Honda City, SX4 seems to be inferior in rank although it is not. Similarly if I assimilate Kizashi folldue a timeliness Accord or Camry, Kizashi seem to be partially inferior. This I apprehend is principally due fellow-creatures friend Maruti folldue a timeliness inferior cars than sedans and epicurism cars. What do you Maruti lacks to be in epicurism sedan member? What should it do? I apprehend Maruti lacks an vision of epicurism car framer. It is generally friendd folldue a timeliness inferior cars due to its commencement in that member. In ordain to be balance achievementful, Maruti gain keep to expand expertise and faculty to rival in that member. SURVEY ANALYSIS So from the discussions folldue a timeliness the consumers we keep end to the forthcoming falsifications respecting whether they would elect to buy a Maruti in the sedan member the forthcoming falsifications can be drawn. 1) The senior discuss is that Maruti is friendd folldue a timeliness a low absorb car. It is a very trusted stigma as abundant of the fellow-creatures interviewed were either enjoyors or had owned a Maruti car in the spent and were very pleasant folldue a timeliness the consequence. However the stigma is not friendd folldue a timeliness a standing record so fellow-creatures upgrading gain most probably not elect a Maruti equalize if the consequence and the rebuke is selfselfcorresponding of rivalry. 2) Another discuss for non-acceptance is that there a existent as courteous-mannered-mannered as seed dissent between the competitors and Maruti. When we assimilate rectify end cars by Maruti folldue a timeliness others in the member, it fails to belabor the systematic standards by other stigmas. For e. g. In a 2. 4 Lit engine car member, it is seed by the consumers that Toyota and Honda cars gain keep a eminent engine than Maruti’ s engine. Also they are seed to yield a rectify peculiarity in provisions of aesthetics to the buyer. For this discuss, equalize though, Maruti Suzuki SX4 was systematic in the selfselfcorresponding member as Honda City, it was constantly cogitateed to be inferior than City. 3) One discuss for fellow-creatures not to cogitate the car is that they reach the resale rebuke gain not be amiable. As abundant fellow-creatures in these members buy cars and switch between 3-5 years resale rebuke is an grave cogitateation and this is where Maruti lags subsequently a lot assimilated to a Honda or a Toyota SOME POINTS WERE ALSO IN FAVOUR OF MARUTI: ) Most of the fellow-creatures keep already owned a Maruti and were very pleasant folldue a timeliness the consequence and keep a tall impression of its folldue sales use and cheaper thin rivalncy so they apprehend that assimilated to the others the livelihood absorb gain be low. Therefore folldue analysing the 4 interviews we can end to the falsification that Maruti cannot be seen as a standing record that most fellow-creatures upgrading to rectify end cars contemplate for. However this member is grdue at a very sboard rebuke assimilated to the mean perseverance so this is a member Maruti cannot supply to disown. The advertisements and promotions for their extreme car Kizashi to-boot could not generebuke attendpotent turbidity disgeneral the customers affect what Mahindra Scorpio’s advertisements did so this could be one area they could contemplate at. So the key doubts going afront for us gain be: * Maruti has penetrate the member folldue a timeliness its general stigma the forthcoming board illusions the peculiarations of Maruti Kizashi and its competitors Technical Specification and Pricing * As illusionn in the board balance equalize folldue a timeliness resembling peculiarations and competitive pricing Kizashi was not potent to catapult its sales figures as performed by Accord (3324 units– 2005-06) and Camry (794 units– 2005-06). So the enduring doubt is does it demand a new stigma either easily made by themselves affect Toyota did folldue a timeliness Lexus or should they end into collaboration or win a epicurism stigma and penetrate into the dispense * Gain Maruti be potent to use the general distribution agent to effectively dispense the cars? Folldue a timeliness the selfselfcorresponding dealership network having two types of customers, one targeting an memorandum raze hatchback and the other targeting a epicurism sedan served effectively? Or gain they demand a new dealership network for tall members cars for peculiar target consumer which can be a absorbly subject.