Automobile Assignment

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Introduction
The Indianauto industrybecame the 4thlargestinthe worldwithsales increasing 9.5 per cent year-on-year
to 4.02 million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of commercial
vehicles in 2017.
The Two Wheelerssegmentdominatesthe marketintermsof volume owingtoa growingmiddle class and a
youngpopulation.Moreover, the growing interest of the companies in exploring the rural markets further
aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for the near future.
Automobileexports grew 26.56 per cent during April-July 2018. It is expected to grow at a CAGR of 3.05 per
centduring2016-2026. In addition,severalinitiativesbythe Governmentof Indiaandthe major automobile
players in the Indian market are expected to make India a leader in the two-wheeler and four wheeler
market in the world by 2020.

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Marketingisthe studyandmanagementof exchange of relationships. The American Marketing Association
has defined marketing as “the activity, set of institutions, and processes for creating, communicating,
delivering,andexchanging offerings that have value for customers, clients, partners, and society at large.”
Marketing strategy has the fundamental goal of increasing sales and achieving a sustainable competitive
advantage.
It alsodealswiththe analysisof the initial situationof the company,itsformulation,evaluationandselection
of the market– orientedstrategies.
Fundamental Principle of Marketing Strategy
1. Specialization - This helps in defining the domain, product, service, customer, market.
2. Differentiation –This principle would define your uniqueness. Your differentiation would make you
stand out of the crowd.
3. Segmentation –Segmentation means looking at specific customers in the market who values your
differentiation and will pay more for your area of specialization.
4. Concentration –Once you’ve determined your best market segments, focus all on resources, budgets
and time on acquiring customers from these markets and retaining them.
Marketing Strategies
Basic
Activities
Short Term
- Activities
Long Term
- Activities
Specialization
Differentiation
Segmentation
Concentration

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Market Size
Domesticautomobileproductionincreasedat7.08 percent CAGR betweenFY13-18with29.07 million
vehiclesmanufacturedinthe countryinFY18. DuringApril-July2018, automobile productionincreased16.69
percent year-on-yeartoreach10.88 millionvehicleunits.
Overall domesticautomobilessalesincreasedat 7.01 per centCAGR betweenFY13-18 with24.97 million
vehiclesgettingsoldinFY18.Auto salesinJuly2018 witnessedayear-on-yeargrowthrate of 7.9 per cent
across segments,drivenby46.24 percent growthinthree-wheelersalesintermsof percentage.
PremiummotorbikesalesinIndiacrossedone millionunitsinFY18.Two leadingluxurycarmanufacturers,
BMW and Mercedes-Benz,recordedtheirbest-everhalf yearlysalesinIndiaduringJanuary-June2018. Sales
of BMW grew 13 percent year-on-yearto5,171 unitsand salesof Mercedes-Benzgrew 12.4per centyear-
on-yearto7,171 units.
Salesof electrictwo-wheelersare estimatedtohave crossed55,000 vehiclesin2017-18.
Investments
In orderto keepupwiththe growingdemand,several automakershave startedinvesting heavily in various
segmentsof the industryduring the last few months. The industry has attracted Foreign Direct Investment
(FDI) worth US$ 19.29 billion during the period April 2000 to June 2018, according to data released by
Department of Industrial Policy and Promotion (DIPP).
Some of the recent/plannedinvestmentsanddevelopmentsinthe automobile sectorinIndiaare as follows:
 Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to launch 20 -25 new
models across various commercial vehicle categories in 2018-19.
 Mahindra & Mahindra (M & M) is planning to make an additional investmentofRs 500 crore (US$ 77.23 million)
for expanding the capacity for electric vehicles in its plantin Chakan.
 Hyundai is planning to invest US$ 1 billion in India by 2020.SAIC Motor has also announced to investUS$ 310
million in India.
 Mercedes Benz has increased the manufacturing capacityof its Chakan Plant to 20,000 units per year, highest
for any luxury car manufacturing in India.
Government Initiatives
The Governmentof India encourages foreign investment in the automobile sector and allows 100 per cent
FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are -
 The governmentaims to develop India as a global manufacturing centre and an R&D hub.
 Under NATRiP, the Governmentof India is planning to set up R&D centres at a total costof US$ 388.5 million to
enable the industry to be on par with global standards
 The Ministry of Heavy Industries,Governmentof India has shortlisted 11 cities in the country for introduction of
electric vehicles (EVs) in their public transportsystems under the FAME (Faster Adoption and Manufacturing of
(Hybrid) and Electric Vehicles in India) scheme.The governmentwill also setup incubation centre for start-ups
working in electric vehicles space.

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Achievements
Following are the achievements of the government in the past four years:
 Number ofvehicles supported under FAME scheme increased from 5,197 in June 2015 to 192,451 in March
2018.During 2017-18,47,912 two-wheelers,2,202 three-wheelers,185 four-wheelers and 10 lightcommercial
vehicles were supported under FAME scheme.
 Under National Automotive Testing And R&D Infrastructure Project (NATRIP), following testing and research
centres have been established in the country since 2015
o International Centre for Automotive Technology(ICAT), Manesar
o National Institute for Automotive Inspection,Maintenance & Training (NIAIMT), Silchar
o National Automotive Testing Tracks (NATRAX), Indore
o Automotive Research Association ofIndia (ARAI), Pune
o Global Automotive Research Centre (GARC), Chennai
 SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres are being setup in the country for
promoting smartand advanced manufacturing helping SMEs to implementIndustry4.0 (automation and data
exchange in manufacturing technology).
Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India,
with overseas players gathering the same momentum as the domestic participants.
Every other day, we have been hearing about some new launches, some low cost cars - all customized in a
manner such that the common man is not left behind. In 2009, the automobile industry is expected to see a
growth rate of around 9%, with the disclaimer that the auto industry in India has been hit badly by the ongoing
global financial crisis.
The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and
Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile
manufacturers have spread their operations globally as well, asking for more investments in the Indian
automobile sector by the MNCs.
Potential of the Automobile industry In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan
Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similar plans are for General
Motors.
Segmentation of market share of automobile industry in India
Passenger Vehicle: 15.96%
Commercial Vehicle: 3.95%
Three wheelers: 3.60%
Two wheelers: 76.49%

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Top Automobile Companies in India
Tata Motors
Tata Motors is the largest automobile manufacturing companies in India. Established way back in 1945 Tata
Motors is a multinational automobile company with its headquarters in Mumbai. Previously known as Telco TATA
Engineering and Locomotive Company Tata Motors belongs to Tata Group. This company manufactures compact
medium sized utility vehicles. Over the last few decades it has stood as the undisputed leader in the commercial
vehicles segment. It is also the third largest producer of passenger cars in India. This automobile company in India
is listed on both the Bombay Stock Exchange and the New York Stock Exchange. The revenues earned by Tata
Morts in 2010 accounted to $20.572 billion. Some of the well-known cars manufactured by Tata Motors are: Tata
Indigo, Tata Indica, Tata Sumo Tata Indigo Marina and Tata safari.
Hindustan Motors Limited
Hindustan Motors Limited was founded in the year 1942 by B.M Birla. It is an operative subsidy of the Birla
Technical Services group. This company held the title of the biggest manufacturer of cars in India before Maruti
Udyog. Hindustan Motors was the pioneer in manufacturing automobiles in India. The company accounted for a
sales turnover of Rs 150.66 crore in 2010. Some of the important cars and multi utility vehicles manufactured by
Hindustan Motors Limited include; Mitsubishi Lancer, Trekker, Contessa, Ambassador, Porter, Pushpak and the
Mitsubishi.
Ashoke Leyland
Ashoke Leyland is a leading commercial vehicle manufacturer in India. It was established in 1948. The company
over the years has become synonymous with the production of trucks, passenger buses and emergency military
vehicles. It happens to be the second largest commercial vehicle producer in India holding a market share of almost
30 percent. The company holds a record for selling almost 60, 000 vehicles and almost 7000 engines per years.
Ashok Leyland accounted for consolidated revenues of US$ 1.4 billion in 2009. Some of the popular products by
this company are; Panther BS-II Muti-axle Vehicles, Cheetah Bus-III, Tractors and Ecomet, Lynx BS-II, Diesel and
Natural Gas gensets from 15KVA to 250KVA.
Maruti Suzuki India Limited
Maruti Suzuki India Limited was established in 1981. A part of this company is owned by Suzuki Motor
Corporation of Japan. It is the country's largest passenger car manufacturing company. Credited for having brought
in the automobile revolution in the country Maruti Suzuki India Limited was known as Maruti Udyog Limited till
2007. With its headquarters in Delhi this automobile company in India happens to be the largest producer and
market share holder of cars. The company accounted for consolidated revenues of US$4.8 billion in 2010. Maruti
Suzuki India Limited is credited for manufactures a variety of passenger cars SUVs, and Sedans. Some of Maruti's
most popular cars are: Alto, Gypsy, Omni, Wagon R, Maruti 800, Versa, Zen, Esteem, Baleno and Swift.
Hyundai Motor India Limited
Hyundai Motor India Limited (HMIL) is owned entirely by Hyundai Motors of South Korea. Hyundai Motors
happens to be the largest car manufacturer in South Korea and the sixth largest in the world. This automobile
company in India is also the largest passenger cars exporter in India. Established on May 6 1996 this company in a
short span of time has taken the Indian automobile industry by storm. Some of the popular cars manufactured by
this company are; Santro, Getz Prime, Hyundai i10, Hyundai i20 Accent and the Verna and Sonata.

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Bajaj Auto
Bajaj Auto is another important automobile manufacturing company in India. It is one of the India's most trusted
car manufacturers. It is an operative subsidy of the Bajaj Group. Bajaj Auto happens to be the largest two and three
wheeler manufacturer in India and also ranks in this field across the globe. This automobile company was
established on 2 November 1945. The company was then known as M/s Bachraj Trading Corporation Private
Limited. The company made a modest beginning by importing and then selling two and three wheelers in India.
Today Bajaj Auto has become synonymous with two and three wheelers in the country. Some of its popular two
wheelers are; Pulsar 220DTS and Kawasaki Ninja 250R.
Research Methodology
Research Objectives:
1. To study the various marketing strategies those are employed to sustain and grow by the Automobile
Industry in India.
2. The company taken for the purpose of research are Tata Motors Limited.
3. The following subject matters are discussed in detail for the company:
3.1. 4 P’s of Marketing
3.2. Swot Analysis
3.3. PESTEL Analysis
Research Design:
This research project is a comparative study on two renowned automobile companies, Tata Motors
and Hyundai Motor India Ltd. In this research, secondary sources are used to acquire well-grounded
information.

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Tata Motors Limited
About Tata Motors
Tata Motors LimitedisandIndianmultinationalautomotive manufacturingcompanyheadquarteredin
Mumbai,India,andis a memberof Tata Group. Itsproducts include-
 Passenger Cars
 Trucks
 Vans
 Buses
 Coaches
 Construction equipment
 Military vehicles
Foundedin1945 as a manufacturerof locomotives,the companymanufactureditsfirstcommercial
vehicle in1954 incollaborationwithDaimler-BenzAG.TataMotors enteredthe passengervehicle
marketin1991 withthe launchof the Tata Sierra,becomingthe firstIndianmanufacturertoachieve the
capabilityof developingacompetitive indigenousautomobile.In2008, theylaunchedTataNano,the
world’scheapestcar,amountingonlyRs2.2 lakhs.

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4 P’s of Marketing
Product
• Brand: the products of Tata Motors have many special characteristics to them, but when
consumers think of it, they not only think of its features but also associate it with quality,
performance andclass.All of these are achievedwithadvertising.Consumersfrequentlybuythe
productnot onlyfor itsfunctional features but also associate with the brand. Tata Motors have
created a successful brand image.
• Packaging: A vehicle cannot have material packaging. In here, packaging is referred to as
effective assembly of features.
• Innovation: The various motives behind buying an automobile are need, prestige, comfort,
fashion, novelty. The R&D department continuously strives to bring new innovations in their
product.The experience hashelped them to develop products which fulfil the expectations of
Indian consumers.
• QualityControl:TataMotors have theirQuality Control Standards. The QC Department ensures
that he customer does not face any inconveniences of a defective product.
Price
• PricingStrategy:The prices are fixed keeping in mind a number of factors. Prices have to be at par
with the prices of the competitors. Tata Motors give a relative price advantage as compares to its
competitors. The various determinants of prices are:-
• Discounts:The discountsare decidedby the company every month. These discounts would attract
more customers and raise their profitability.
Marketing
Mix
Product Price Place Promotion
Market
Condition
Cost incurres Profitpercentage DealerProfit

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Place
• Channels of Distribution: Tata Motors have adopted the dealership method of distribution of its
products.The dealerspurchase productsfromthe companyat a negotiatedprice.The price is fixed
by the company and the dealer gets a profit within these prices. As the company deals in
commercial and passenger vehicles, there may be single or distinct dealerships to market its
vehicles in a town.
• Physical Distribution: The commercial vehicles are manufactured at Jamshedpur, Lucknow and
Patnagar, whereas passenger vehicles are manufactured at Pune plant.
From the plant,the finishedproductistransportedtothe dealerships.
Promotion
• Personal Selling: There is minimal personal selling involved. The Sales Officers at the dealerships
collect prospective customer database and perform cold calling to attract customers.
• Advertising:Advertisingisaformof commercial masscommunicationdesignedtopromote the sale
of a product or service. Tata Motors is responsible for the advertising of its own products. The
various media used for advertising are TV, newspapers, magazines, hoardings, internet, etc.
• SalesPromotion:The purpose of salespromotionis to supplement and coordinate advertising and
personal selling;It isdesignedtopersuade consumerstopurchase immediatelybyprovidingspecial
incentives such as rebates, prizes, extra product, etc. The company conducts uses intensive sales
promotion during festivals.
• PublicRelations:PublicRelationsisamanagement function that creates, develops, and carries out
policiesandprogramstoinfluence public’sopinionaboutan idea, product, or an organisation. Tata
Motors takes serious measures to maintain good public relations. It follows business ethics to
ensure that the customers are satisfied and receives good service.

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Indian Automobile Industry SWOT Analysis
Strengths
 Domestic Market is large
 Government provides monetary assistance for manufacturing units
 Reduced Labour cost
Weaknesses
 Infrastructural setbacks
 Low productivity
 Too many taxes levied by government increase the cost of production
 Low investments in Research and Development
Opportunities
 Reduction in Excise duty
 Rural demand is rising
 Income level is at a constant increase
Threats
 Increasing rates of interest
 Too much competition
 Rising cost of raw materials
Disclaimer: All efforts have been made to make this image accurate. However Compare InfoBase Limited and its directors do not own any
responsibility for the correctness or authenticity of the same.

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PEST Analysis
PEST AnalysismeansPolitical,Economic,Social,Technological,Environmental andLegal analysis.Itisa
standardway of analysingmacro-economicforceswhichimpactacompanyor a corporation.
 Political and Legal Analysis: Tata Motors acquired a land of 997 acres for manufacturing Nano
Cars by State Governmentsupport.Butthisacquisitionrequiredthe displacement of farmers. It
attractedheavycriticisms;“Save Farmland”movementwasstarted by opposition leader. On 3rd
October, 2008, Tata Motors closed its plant from Singur. It was later established in Sanland,
Gujarat.
 EconomicAnalysis: TataMotor’s economicscenarioisquite compromisingwithGDPgrowthrate
around 7%. However, high interest rates and low freight availability impacted its financial
infrastructure in first quarter of 2013. During the same time, price pressure from competitors
also marred its financial position. The commercial vehicle segment of Tata Motors gave it an
edge overothersat that time andthe big and mid-sized vehicles helped it to regain its ground.
 Social Analysis: Wherever Tata Motors goes, it hires mostly the local population generating
employment.Due toitsage longhistoryand itswelfare activities,Tataenjoysfull publicsupport.
It is also involved in philanthropy and supports around 600
NGO’s.Tata alsoworks towardsprovidedhighstandardsof educationtostudents.Some of the
institutesopenedandmanagedbyTataare IndianInstitute of Science,TataMemorial Centre,
Tata Institute Social Science,etc.
 Technological Analysis: In order to adapt with the latest technology, the company owns Tata
TechnologiesLimited(TTL).TTL helpsTataMotors in the upgradationof designsandtechnology.
Tata faced a technological hurdle when two units o sots revolutionary Nano cars caught fire in
the year 2009. After forensic investigation, it was assured to the customers that Nano is
perfectly safe.
 Environmental Analysis: TataMotors manufacturesitsvehiclesaccordingto the norms of Indian
and Euro standards of emission. TTL is fostered by Tata to manufacture greener cars with low
fuel consumptionandlowestemission gasses possible. As an eco-friendly company, it has also
invested in various “Green Earth,
CleanEarth” campaigns.Ithas alsoworkedtowardsthe stoppingof deforestationmanyyearsin
a row.

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Automobile Maintenance in India
Automobile Maintenance in India is one of the most necessary services related to the Indian automobile
marketinIndia.All the vehiclesneedregularmaintenance asonlybythis,one can keeptheirvehiclessecure.
Moreover it also indicates the performance and longevity of the vehicle.
Starting from car painting to looking after the auto-parts regularly, everything falls under the policies of
AutomobileMaintenance in India. The automobile components directly related to the performance of the
vehicle. Some of the regular processes of Automobile Maintenance in India are like checking the battery,
changingthe automobile oils,keepingacheckon it,checkingthe electrical systemtoidentifyafew of them.
Some of the most essential tips required for the owner and also the driver to follow seriously for the
wellbeing of the vehicle and for a proper automobile maintenance in India are as under:
 to prevent deterioration of the engines, it is necessary for the engine to maintain the amount of oil it
receives, in order to prevent falling mileage
 to have an accurate knowledgeof the fuse systemwhichwouldsave the vehicle fromgetting stranded due
to a blown fuse
 to focus the lights of the automobile properly
 to check the air pressure of all the tires regularly
 to change the water required for the engine
 to get the automobile serviced only at authorized and efficient service stations
 to check the engine oil level once every two weeks
 to check the coolant and water levels in the radiator and battery
 to use authentic and genuine spare auto parts always
 to provide the vehicle with anti-rust coating before the rainy season
Apart fromthese general tipsonthe automobilemaintenance inIndiaforsafe drive the drivershould
alsofollowsome preventative automobile maintenance policieslike tocheckthe air-filtereverymonth,
to be cautiouswhile handlingthe battery,tocheckthe brake fluidmonthly,togetthe oil filterreplaced
witheveryoil change,andmanyothers.To geta vividideaaboutthe AutomobileMaintenanceinIndia,
the ownerand alsothe driversshouldgothroughthe usermanual of the vehicle veryseriously.
SMALL CAR MARKET IN INDIA:
Small car market in India is increasing by leaps and bounds. The indigenous market for small cars now
occupies a substantial share of around 70% of the annual car production in India of about one million. The
mainplayersinthe car marketlike TataMotors and Maruti Udyog are fiercely competitive and more or less
all the automobile companies in India that have forayed into the production of small cars are trying to out-
do each other in terms of design, innovation, pricing, and technology, in order to gain control of the small
car market in India.
The biggestplayersinthe Indiansmall carmarketare engagingina healthycompetition,whichhas
intensifiedsince the Indiangovernmentdecidedtoboostthe small carsector.In thisregard,a reductionin
the excise dutieshasbeenthoughtof.Eventhe enginecapacitiesare expectedtobe raisedto1500cc. The
newsmall cars inIndiacars may evenbe fueledbygasoline anddiesel inthe future.Withall these facilities,
it hasbeenestimatedthatthe indigenouscarmarketisgoingto move beyondthe 3.5 millionmarkvery
soon.

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Suzuki,whichisnowheadingthe Indiansmall carmarkethasplansto investanadditional US$650 million
for researchanddevelopmentworkinitsManesarPlant.ThisPlantwill alsobe usedformanufacturing
diesel cars.Suzuki hasdecidedtoenterintoajoint-venture withNissantolaunchanew mini car model in
India.
EvenHyundai Motors ison a similarinvestmentspree forresearchworkwithaventure of US$ 700 millionin
India.The twocars fromthe Hyundai stable - Santro and Getzare alreadyinthe marketand have beendoing
exceptionallywell inthe pastfewyears.Itisexpectedthatmore andmore foreigncompaniesare likelyto
jointhe healthyrace inthe Indiansmall car market.
One of the biggestplayersinChina'scarmarket,Volkswagen,hasdecidedtoinvestinthe Indiansmall car
market.It issupposedtoinvestatotal amount of US$ 540 millionandmanufacture nearly100,000 mini cars
on an annual basis.
Reason for growth in the small car segment in India
The increase inthe demandforsmall cars can be attributedtothe aspirational lifestyleof peoplewhich
makesthemstrive fora car earlyonin life.The overall age forowningacar has alsodecreasedinrecent
years.Further,withthe growingaffluence of the rural sector,owningacar, at leasta small car,is a
foregone conclusioninmodernIndia.However,since small carsare more affordable andutilitarian,the
demandforthemhas shotthroughthe roof.This risingdemandforsmall cars isattracting companies
like General MotorswhichhasincreaseditsyearlyproductioninIndiato140,000 vehicles.
The Maruti 800 whichisthe mostpreferredcaramong the Indianmiddle classescannow be boughtat a
lowercost.Tata Motors has decidedtolauncha mini-carin2008, whichwill costaslessas US$ 2,200.
Tata Motors isalsogoingthrougha processof decision-making,tolaunchavarietyof mini-carsin
associationwithFiat.Hondahasalsodecidedtoincrease itsmanufacturingcapacityinIndiato100,000
verysoon.Therefore,the leadersinthe marketforsmall cars inIndiacan be seento engage ina price
war to make more cars available tothe majorityof Indiancitizens.
The small car marketinIndiaiswitnessingthe maximumactivityandisall setformore excitingtimes
ahead,withmore playersfromIndiaandabroad joiningthe race.
Mid-Size Car Market in India:
Mid-size carmarket in India has grown tremendously in the last few years. A mid-size car is an automobile
which have a size that is between a compact and a car of full size. It typically has the capacity to carry 4
passengers.
In Indiathe mid-size carprice rangesbetween3-8lakh.Althoughthe automobile marketinIndiaisgrowing
at 7% peryear,the mid-size carmarketinIndiaisgrowingat the rate of around20% peryear.This shows
howfast the growthis takingplace inthe marketof mid-sizecarin India.Itisno wondertherefore,that

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mostof the latestcar launchesinIndiahave beenin the mid-size segment.
The variousreasonsforthe growthof the mid-sizecarmarketin Indiaare:
 The economyinthe country isrisingleavingthe people withalotof disposable income.Thismoneyisbeing
spent by the people in buying the mid-size car.
 Various loan schemes have been launched by the automobile manufacturers and financial institutions
giving a boost to the market of mid-size car in India.
 The governmentinrelationtothe automobileindustryhave takenoutvariouspolices such as reducing the
importtariffsandalsorelaxingthe equityregulations.Thishasledtothe reductioninthe pricesof the mid-
size cars.
 The youth in the country are earning high pay packages due to the IT boom in the country. This enables
them to buy the mid-size car which further boosts the mid-size car market in India.
The variousautomobile companiesmanufacturingthe mid-size carforIndiaare:
 Ford
 Fiat India
 Hindustan motors
 Maruti udyog
 Tata motors
 San motors
A lotof activityisexpectedinthe mid-size carmarketinIndia.Several carmakersfromacross the worldare
planningtoenterthe Indiancar marketwithcars that belongtothe mid-size segment.Customerscanhence
take theirpickfrom the bestinthe world.
Premium Size Car Market in India:
Premiumcar marketinIndiahas registeredafairamountof growthin the last few years. A premium car is a
luxuriousautomobile whicheffectively blends cargo capacity and passenger space for the sake of style and
grandeur.
Cars belongingtothissegmentusuallyhave acarryingcapacityof 5 passengers.The pricesof the premium
cars in the Indianmarketrange betweenRs7-15 lakhs.Asthe premiumcarsare expensive,the
manufacturersof these carstarget the high-income groupof people andthere are a lotof such takersin the
Indiancar market.
The variousreasonsforthe growthof the premiumcarmarketin Indiaare:
 The economy of the country is rising as a result of which the people have more disposable income which
they are spending on buying premium cars.
 The government have reduced the import tariffs and also relaxed equity regulations with regard to the
automobile industryinIndia.Thishasreducedthe pricesof automobilesgiving a boost to the premium car
market in India.
 The IT boominthe countryhas resultedinthe youth earning high pay packages. This enables them to buy
premium cars, which have further boosted the premium car market in India.

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 Many loanschemeshave beenlaunchedbythe financialinstitutions andautomobile manufacturers, giving
a boost to the market of premium car in India.
The variousautomobile companiesmanufacturingthe premiumcarforIndiaare:
 Toyota Motors which manufactures the Toyota Camry model
 Skoda Auto which manufactures the Skoda Octavia, Superb, and Laura models
 Honda Motors which manufactures the Honda Accord, Civic, and City ZX models
 Ford Motors which manufactures the Ford Mondeo model
 Mitsubishi which manufactures the Mitsubishi Lancer model
 Audi India which manufacturers the Audi A4, A8, and A6 saloon models
The premiumcar marketin Indiahasgrownover the lastfew yearsas a resultof the increasingspending
powerof the aspirational Indianpopulace andthe attractive auto-loanschemeslaunchedbythe car
companiesinassociationwithbanksandfinancialinstitutions.
Luxury Car Market in India:
Luxurycar marketinIndiahas registeredafairamountof growthin the lastfew yearsand isgrowingat the
rate of 25% peryear.A luxurycar is a luxuriouslystyledautomobile whichisdesignedtogive satisfactionand
comfortto its owner.
A luxurycar typicallyhascarryingcapacityof 6 passengers.The luxurycarsinthe Indianmarketare very
expensive,withprice tagsthatstart from ` 20 lakh.Hence,luxurycarscan only be affordedbythe people
whobelongtothe highincome groupandthere are a lotof suchtakers inthe Indianautomobile market
the variousreasonsforthe growth of the luxurycar marketin Indiaare:
 The economyisrisinginthe country whichhas giventhe people more disposableincome whichtheyare
spendinginbuyingluxurycars.
 Variousloanschemeshave beenlaunchedbythe automobile manufacturersandthe financialinstitutions.
Thishas made it veryeasyforthe people tobuyluxurycarsand thishas boostedthe luxurycarmarketin
India.
 Withthe IT boominthe countrymanyyoungstersare earninghighpaypackageswhichenable themtobuy
luxurycars.And thishave furthergivenboosttothe marketof luxurycar in India.
 The governmenthave formulatedmanypolicessuchasthe relaxationof equityregulationsandthe
reductionof importtariffspertainingtothe automobile industry.These have helpedtoreduce the pricesof
the luxurycars, whichinturnhave ledto the growth of the luxurycar marketin India
The variousautomobile companiesmanufacturingluxurycarsforIndiaare:
 BMW manufacturersthe BMW 530i and BMW 760li models
 RollsRoyce manufacturesthe RollsRoyce PhantomV 12 model
 Porsche manufacturesthe 911 Carrera,911 Carrera S,and CaymanS models
 DaimlerChryslermanufacturesthe MercedesBenzCandE classmodels
 Bentleymanufacturesthe BentleyRange andBentleyContinental models
Luxurycar marketinIndiahas grownoverthe last few years.Thatit continuestogrow more effortsmustbe
made by the Indianautomobileindustryandthe governmentof India.Andonlythenthe luxurycarmarketin
Indiawill be able toreachits heights.

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Sport Utility Vehicle Market in India:
Indianautomobileindustryregistered amonstrous68% increase initssalesat 10.05 lakhunitsforthe month
of Dec2009. Like itspassengercar segment,thatwitnessedagrowthof 40.27% at 115,268 units,the upward
trend was also seen its Sports Utility Vehicles or the SUVs market.
Origin of Sports Utility Vehicles
The concept of SUVs or Sports Utility Vehicles was derived from the usage of martial jeeps after the
repercussion period of the World War II. Considering its off-road competence, SUVs gradually became
popular in India as well as abroad. Sensing the business prospects in this segment, majors like Toyota,
Chevrolet,LandRoverlaunched their SUVs in international market. With SUVs gaining recognition in small
towns, the auto market for SUV cars witnessed an escalation in their demand.
Overview of Indian Sport Utility Vehicle Market
Overthe last fewyearsthe IndianSportUtilityVehicle Markethasundergone considerable alternations.
Today itboastsof an entire range of SUVslaunchedbyTata Motors andMahindra & Mahindra ranging from
Tata Sumo andTata Safari to Voyager,BoleroandScorpio.
OtherconglomeratesthatlaunchedtheirSUVsinIndiaare Japan basedToyotaMotors, HindustanMotorsof
Indiaand Hyundai Motorsof SouthKorea.While ToyotahasintroducedPrado,Qualisand InnovatoIndian
highendusers,Hyundai haslaunchedTerracanand Tuscon.HindustanMotors toohave come upwithSUVs
inthe formof Pajero,PushpakandTrekker.
Consideringthe growingdemandforSUVsinIndia,bothlocal andinternational automobile manufacturers
are layingvariousinitiativestointroduce new andadvancedadaptationsof SUVs.
New SUVs launched inIndia In 2018

The biggerand strongerautomobilesinIndiamainlySUVsare widelyadmiredbyIndiancustomersin
comparisontotheirforeigncounterpartswhopreferfuel-efficientandsmall cars.The majorreason
behindthisviewpointisthe lookoutformoneyspinning prospectsbypromotional departmentsin
Indianmarketthatwillinglyspendsonbigcarsdue to an increase intheirdisposable incomes.
The recentAuto Expo2018 witnessedthe displayof savvySUVsbyautobiggieslike BMW,
Volkswagen,Audi,Toyota,Land Rover,etcslatedtobe launchedinthe presentfinancial year.The
makersare planningtostarttheirproductioninIndiaratherthan spendingonimportingtheirgoods.
Thisprovesthat the makersare hopingforbiggerproductionvolumesinIndiabesides triggeringthe

17
nation'seconomy.
Some of the well-establishedSUV modelsinIndianautomobilemarketare Mitsubishi Outlander,
Tata Safari Dicor,Maruti Suzuki GrandVitara,Audi Q7, Toyota Fortuner,MahindraScorpio,Honda
CR-V,Hyundai Tucson,ChevroletCaptivaandFordEndeavour.
To strengthenthe brandbattles,BMW hasnow introducedtwoSUVsnamely - SUV X6 and SUV X1.
Audi whichhasregistered50%growthin theirSUVssalesinIndianmarketbeganthe productionof
itsSUV Q7 and SUV Q5. To give a toughcompetitiontoBMW and Audi,TataMotors is all setto
launchitsLand RoverDiscoveryandTata IndicruzinIndiainthe firstquarterof 2018.
The automobile industry is supported by various factors such as availability of skilled labour at low cost,
robust R&D centres and low cost steel production. The industry also provides great opportunities for
investment and direct and indirect employment to skilled and unskilled labour.
Indianautomotive industry(includingcomponentmanufacturing)isexpectedtoreach Rs 16.16-18.18 trillion
(US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent in 2018.

18
Few habits of the Indian car buyer
Early thisyear,IndiaovertookSouthKoreatobecome the fifthlargestcarmarketand isnow expectedto
overtake Germany(behindChina,USandJapan) to become the fourthlargestby2016-17 end.
Multiplesfactorsare buoyingdemand.While new launchesacrosscategoriesare luringcustomers,
sentimenttooisimproving.Rural demandispickingup,thankstoa goodmonsoon.Increasedsalaryand
SeventhPayCommissionhikesare boostingdisposable income.
Here are few buyinghabitsof anIndianwhenitcomesto four-wheels:
1. Digital Thrust: Accordingto ShobhitMathur,director(strategy),Cardekho.com, 75percent
of Indianbuyersuse the internettoresearchbefore buyingacar. Even better,ahigh54 per
centof the online researcherschange theirbrandconsiderationafterresearch,“significantly
influencingpurchase decisions,”he adds.ButIndiansare mostlyresearchingandnot
transactingonline.
2. She Power:Womentodayaccount for up to12% of car sales,twice asmuch as five years
ago.
While womenworryaboutrunningonflattyres,menlike central lockingsystemontheir
cars. Men lookforpoweredfrontwindows,central lockingandairbagfordriverwhile
womenpreferautomatictransmissionandABS.
3. Rise of the Automatic: Automaticcars are lovedbyyoungmenandwomen.52% of Indian
are consideringbuyinganautomaticastheirnextpurchase.SUV buyersleadthe expected
surge of 'goingautomatic'nexttime.
4. UV ifthe Flavour ofthe Season: Sale of utilityvehiclesisexpectedtogoup by24% inthe
comingyearfrom the current21%.
5. Budget Matters But Not Across Segments: Industrytrendsshow forhatchback buyers,
budget(59%) is the mostcritical whereasforSUV buyers,it'sthe least.Sedanbuyers
considercomfort(28%) overbudget.

19
Car technologies that will drive the future
Arrow’s Corvette Z06
The features Arrow Electronics built into this 2016 Corvette Z06 allowed a former race car driver
paralysed from the neck down to drive again. The driver could control the steering by wearing a pair
of sunglasses equipped with motion-tracking sensors. The speed can be controlled by blowing into
or sucking on a straw attached to the sunglasses.
BMW Vision Next 100
This concept car is loaded with innovative features, but the most interesting are its wheels. The
wheels on the BMW Vision Next 100 concept are essentially one with the car, allowing them to
make beautifully sleek movement when the steering wheel is turned.

20
Tesla’s Model S
Tesla’s latest battery upgrade announcement is a milestone for electric cars. The new battery upg
rade extends the range of the Model S with Ludicrous mode to 315 miles per charge, making it the
first electric car on the market to exceed 300 miles of range.
Chevy Bolt
The Chevy Bolt is the first affordable, all-electric range with a competitive range and will tell us a lot
about the EV market. The Bolt was rated at 238 miles of range by the EPA and is slated to arrive in
dealerships before the end of 2017.

21
Mercedes’ Vision Van
Mercedes will invest $562 million over the next five years to create a network of all-electric vans and
drones for a rapid delivery service. The van has an automated cargo space that loads packages
and alerts the driver when approaching a drop-off location. It will push that package through a hatch
on the roof so a drone can grab it and fly it to the location.
H2
This $2.5 million hydrogen car is entering production. The H2 has an acceleration time of 0-60 mph
in 3.4 seconds and a top speed of 186 mph.

22
Rolls-Royce Vision 100
This futuristic, TRON-esque concept car gives a real look at how car interiors are bound to change.
The Rolls-Royce Vision 100 concept car is a driverless car and the entire interior is a two-seater,
with a silk sofa staring at a beautiful OLED TV screen.
United Nude electric car
Designers from a shoe company dubbed United Nude spent five years building this electric car that
looks like a spaceship. There aren’t any doors, so electric actuators lift the entire body up so you
can hop inside. It comes with a hexagonshaped steering wheel and only has a range of 31 miles.

23
Society of Indian Automobile Manufacturers (SIAM) is the apex Industry body representing
leading vehicle and vehicularengine manufacturers in India
SIAMisan importantchannel of communicationfor the AutomobileIndustrywiththe Government,National
and International organisations.The Societyworkscloselywithall the concerned stake holders and actively
participates in formulation of rules, regulations and policies related to the Automobile Industry.
Withits regularandcontinuousinteraction with international bodies and organizations it aims to facilitate
up gradation of technical capabilities of the Indian Industry to match the best practice worldwide.
SIAM also interacts with worldwide experts to assess the global trends and developments shaping the
Automotive Industry. It has been actively pursuing issues like Frontier Technologies viz. Telematics:
Promotion of Alternative Fuels including Hydrogen Energy for automotive use through cell vehicles and
Harmonisation of Safety and Emission Standards etc.
Dissemination of information is an integral part of SIAM'S activities, which it does through various
publications, reports, seminars and conferences.
SIAM provides a window to the Indian Automobile industry and aims to enhance exchanges and
communicationexpandeconomics,trade andtechnical cooperation between the Automotive Industry and
its international counterparts.
Performance of Auto Industry during 2017-18

24
Production
The industryproduceda total 29,075,605 vehiclesincludingPassengerVehicles,Commercial Vehicles, Three
Wheelers, Two Wheelers and Quadricycle in April-March 2018 as against 25,330,967 in April-March 2017,
registering a growth of 14.78 percent over the same period last year.
DomesticSales
The sale of Passenger Vehicles grew by 7.89 percent in April-March 2018 over the same period last year.
Withinthe PassengerVehicles,PassengerCars,UtilityVehicle and Vans grew by 3.33 percent, 20.97 percent
and 5.78 percent respectively in April-March 2018 over the same period last year.
The overall Commercial Vehicles segment grew by 19.94 percent in April-March 2018 as compared to the
same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) grew by 12.48 percent and Light
Commercial Vehicles grew by 25.42 percent in April-March 2018 over the same period last year.
Three Wheelerssalesgrew by24.19 percentinApril- March 2018 overthe same period last year. Within the
Three Wheelers, Passenger Carrier & Goods Carrier sales registered a growth of 28.65 percent and 7.83
percent respectively in April-March 2018 over April-March 2017.
Two Wheelerssalesregisteredagrowth at 14.80 percentin April-March 2018 over April-March 2017. Within
the Two Wheelers segment, Scooters and Motorcycles grew by 19.90 percent and 13.69 percent
respectively, while Mopeds declined by (-) 3.48 percent in April-March 2018 over April-March 2017.
Exports
In April-March 2018, overall automobile exports increased by 16.12 percent. Two and Three Wheelers
Segmentsregisteredagrowthof 20.29 percentand40.13 percentrespectively,whilePassengerVehiclesand
Commercial Vehiclesdeclinedby(-)1.51percentand(-) 10.53 percentrespectively in April-March 2018 over
the same period last year.

25
Automobile Production Trends
Category 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Passenger Vehicles 32,31,058 30,87,973 32,21,419 34,65,045 38,01,670 4010373
Commercial
Vehicles
8,32,649 6,99,035 6,98,298 7,86,692 8,10,253 894551
Three Wheelers 8,39,748 8,30,108 9,49,019 9,34,104 7,83,721 1021911
Two Wheelers 1,57,44,156 1,68,83,049 1,84,89,311 1,88,30,227 1,99,33,739 23147057
Grand Total 2,06,47,611 2,15,00,165 2,33,58,047 2,40,16,068 2,53,29,383 2,90,73,892
Data collectedfrom: http://www.siamindia.com/

26
Automobile Domestic Sales Trends
Category 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Passenger Vehicles 26,65,015 25,03,509 26,01,236 27,89,208 30,47,582 32,87,965
Commercial Vehicles 7,93,211 6,32,851 6,14,948 6,85,704 7,14,082 8,56,453
Three Wheelers 5,38,290 4,80,085 5,32,626 5,38,208 5,11,879 6,35,698
Two Wheelers 1,37,97,185 1,48,06,778 1,59,75,561 1,64,55,851 1,75,89,738 2,01,92,672
Grand Total 1,77,93,701 1,84,23,223 1,97,24,371 2,04,68,971 2,18,62,128 2,49,72,788

27
Automobile Exports Trends
Category 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Passenger Vehicles 5,59,414 5,96,142 6,21,341 6,53,053 7,58,727 7,47,287
Commercial Vehicles 80,027 77,050 86,939 1,03,124 1,08,271 96,867
Three Wheelers 3,03,088 3,53,392 4,07,600 4,04,441 2,71,894 3,81,002
Two Wheelers 19,56,378 20,84,000 24,57,466 24,82,876 23,40,277 28,15,016
Grand Total 28,98,907 31,10,584 35,73,346 36,43,494 34,79,169 40,40,172

28
A Complete Analysis on Maruti Suzuki India Limited
In today’s competitive era the word ‘Strategy’ is very crucial for all business organizations. Presently
organizationsstartedrealizing that customer centric and aggressive marketing strategies plays vital role to
become successful leader.Thoughglobalizationhasopenedthe doorsof opportunities for all, the market is
still crowded with some unknown risks and lot of competition. Because of this competition, a marketing
strategy must aim at being unique, differential-creating and advantage-creating. To obtain unique and
differentialadvantage,anorganizationhastobe creative in its marketing strategy. Today due to innovative
marketing strategies Maruti Suzuki has become the leading & largest seller of automobiles in India"
Companyhasadoptedvariousbrandpositioning,Advertising,Distribution strategies to capture the market.
Maruti’s few unique promotional strategies include Teacher plus Scheme, 2599 scheme. Change your life
campaign.The objective of thispaperis to focus on various marketing strategies of Maruti Suzuki India Ltd.
INTRODUCTION (HISTORICAL REVIEW)
The automobile manufacturing industry in India dates back to 1948. At that time there were just three
companies manufacturing passenger cars i.e. Premier Automobiles in Mumbai, Hindustan Motors (HM) in
Kolkata & Standard Motors Products India in Chennai. In early years the Indian automobile Industry faced
several challengesandroadblockstogrowth because in those days automobile manufacturing was subject
to restrictive tariff structure,strictlicensing and limited avenues for expansion. Due to lack of competition
initiallythe pricesof cars were extremely high. And the customers had to wait for a long period of time for
car. Before Independence Indiawasconsideredasamarketfor importedvehicles.In the 1950s the arrival of
Tata Motors, Mahindra & Mahindra & Bajaj Auto led to steadily increasing vehicle production in India. In
1953 the government of India and the private sector launched efforts to create an automotive component
manufacturingindustrytosupplytothe automobileindustry.Bythe end of 1970s, significant changes in the
automobile industry were witnessed. After 1970 the automobile industry started to grow, but that growth
was mainlydrivenbyscooters,tractorsand commercial vehicles. In 1983, the government of India made a
tie-upwithSuzuki Motor Corporation of Japan to manufacture low-cost cars in India. The Maruti 800 which
isstill knownrolledoutthe factory of Maruti Udyog Limited in December 1983 and changed not just India‘s
automobile industry but also the way people commuted and travelled. In 1990s through liberalization
initiatives India opened its gates for all the countries and in 1993, the government followed up its
liberalizationmeasures with noteworthy reductions in the import duty on automobile components. Today
the Indianautomobile markethasamix of large domestic automobile players like Tata Motors, Mahindra &
Mahindra, Bajaj, Hero Motocorp, Ashok Leyland and major international giants including Suzuki, Honda,
BMW, Audi, DaimlerChrysler, Volvo, Hyundai, Toyota, Nissan, General Motors and Ford etc.
PROFILE OF MARUTI SUZUKI INDIA LIMITED
Maruti Suzuki India Limited (formerly known as Maruti Udyog Ltd) is a subsidiary of Suzuki Motor
Corporation, Japan and has been the leader of the Indian car market for over two decades. Maruti Suzuki
revolutionized the industry and put a country on wheels. Since inception Maruti is credited with having

29
catalyzed and led the modernization of the Indian passenger car industry. Over its 26 years of journey,
Maruti Suzuki transformed itself from a successful Public Sector Company (PSU) to a vivacious and listed
MultiNational Company (MNC), sustained its leadership position and remained profitable despite tough
competition.InOctober2,1982 the companysignedthe license and joined venture agreement with Suzuki
Motor Corporation, Japan. It was the first company in India to mass produce and sell more than a million
cars. In the year 1983 the company started their productions and launched Maruti 800. In the year 1987 the
company forayed into the foreign market by exporting first lot of 500 cars to Hungary. In the year 2005
companylaunchedworldstrategiccarmodel popularlyknownasMaruti Suzuki Swiftwhichhitthe Indiancar
market.
The core values of company include: Openness and learning Innovation and Creativity Fast, Flexible and
First mover Customer Obsession Networking and Partnership.
Currently Maruti Suzuki India Ltd offers 14 brands which include Maruti 800, Omni, Eeco, Zen Estilo, Alto,
Alto-K10,A-Star,Wagon-R,Swift,Ritz,SwiftDzire,Sx4, Gypsy, and Grand Vitara. Maruti Suzuki has a market
share of 44.9% of the Indian passenger car market as of March 2011. Today Maruti Suzuki has built a strong
sales network of 600 outlets spread over 393 towns and cities. The maintenance support is offered to the
customers through 2628 workshops spread over 1200 towns and cities.
PERFORMANCEOF MARUTI SUZUKI INDIA LIMITED
A. The Salestrendof Maruti Suzuki fromyear1997 to 2008 isillustratedbelow
Source: CMIE Prowess Database (97-2007) (Rs.in Crore)
From the above pie chart it isobservedthatinthe March 2008 Maruti Suzuki‘ssaleswas21221 Crore which
is21.55 % more than March 2007.
B. The Industrial Salestrendof Maruti Suzuki fromyear97 to 2008 isillustratedbelow

30
As observedinthe above chart it is revealed that the Industrial sales grew for the period Mar 04 to Mar 08.
The Industrial sales of Maruti Suzuki in the year March 2008 was 20070.9 Crore which is 23.26 % greater
than previous year.
MARKETING STRATEGIESOF MARUTI SUZUKI INDIA LIMITED
In earlier days when the market was dominated by only few brands like Ambassador & Premier Padmini,
Maruti Suzuki IndiaLimitedenteredthe Indianmarketwith different strategy. The strategy of the company
was to offer a compact, modern and fuel efficient car. Maruti released its first Maruti 800 car on 14
December1983 to fulfillthe dreamsof Indiancustomersandbecame the market leader. Since 1983 till date
Maruti Suzuki gradually offered several choices to the consumer. Due to aggressive competitors today
Maruti Suzuki believesinInnovative MarketingStrategies. With the changing needs, wants & requirements
of customers and markets, Maruti Suzuki is altering their Brand Positioning, Advertising and Distribution
strategy.
BRAND POSITIONING STRATEGY OF MARUTI SUZUKI INDIA LIMITED
Brand Positioning is the most vital concept in a brand‘s strategy. Brand Positioning is also linked with
managing a brand‘s meaning. Today several brand of cars are positioning themselves on the features like
Price, Comfort dimensions, Safety, Mileage etc. Currently Maruti Suzuki followed a very effective multi -
segmentation strategy to grab the different segments of the market with different versions of its brands.
AboutbrandpositioningMayankPareeksaysthat,Maruti Suzuki believe in research and before launching a
product the Maruti team does an extensive research on the needs of the customer. Maruti try to
understandthe customer‘sdemography and psychology to position a brand. Also the company follows the
suggestions made by existing customers.
1. Maruti 800 Considering the middle class & small families the Maruti 800 was launched. The car was also
targeted at the urban professionals. It was projected as a car with minimum maintenance needs and with
greater fuel efficiency. Later the company added some features like MPFI (Multi Point Fuel Injection)
technology & few changes in front grill, head light, and rear light.
2. Omni: Earlierthe Omni was known as Van. The van was targeted more at businessman, tourist taxis and
large families. It was positioned as a vehicle offering benefits of a car with more space. But due to some
differentperceptions of consumers regarding van, after some time the van was renamed as Omni and was
repositioned as the most spacious car. Recently Maruti Suzuki launched new variant called Omni Cargo
which has been positioned as a vehicle for transporting cargo and meant for small traders.
3. Alto: Maruti launched Alto with tagline ‗Let‘s Go‘. In the TVC of Alto, a young married couple goes to
differentdestinationsintheirAlto.BythisTVCMaruti positionedAltoasacar for youngpeople. Also the car
has highlighted as fuel efficient car.

31
4. Wagon R: Maruti Suzuki launchedthe WagonR brand inFebruary2000. Thisisone of the successful brand
from Maruti portfolio in the premium segment of compact cars. Wagon R was initially positioned on the
basisof the functionality platform. Earlier this car was promoted as a family car with the baseline, ‗Feel at
Home‘. Then as per the changing pattern of market , competition and customers Maruti altered the
positioning of Wagon R from Feel at Home to ‗Inspired Engineering‘ to ―As Interesting as you are‖ and
finally to ―For a Smarter Race‖.
5. A-Star: While speaking about A-Star Mr. Shashank Srivastav says that the A-Star was the only car in the
Indian market that was targeted at the urban youth. ―It is about the new generation of Indians who are
confident‖. Also in the second campaign, which was done around July 2009, the company‘s focus was to
inform the consumers about the AStar‘s K-Series engine. The current campaign of A-Star focuses on self-
belief and confidence. Considering the fact that self-belief and confidence are the attributes of youths,
Maruti has positionedA-Starverywell.Inthe current ad campaign a focus has given to a young person who
goes for an Interview & with his confidence and self-belief he impresses all.
PROMOTIONALSTRATEGYOF MARUTI SUZUKI INDIA LIMITED
Everycompanyis ita bigor small needsaninnovativepromotional strategybecausepromotional campaigns
tendto have a huge effectonthe receptionof the product. Maruti Suzuki India Ltd has a formidable line-up
of vehiclesinits stable and has been quite aggressive about promoting each of its automobile brands. The
companyalsoofferedvehicle insurance for One rupee only. In this campaign the customers were asked to
write down the chassis and engine number of their vehicles on the entry form and had to answer the
question. In this contest the winners were chosen by a draw of lots and were entitled to gifts worth Rs.50
million. In 2004, Maruti introduced the ‗2599‘ offer under which by paying an EMI of Rs. 2599 for seven
yearsaftera downpaymentof Rs.40000, a consumercouldbuy a Maruti 800. In 2004 Maruti introducedthe
‗Teacher Plus‘ scheme, in a tie up with SBI. In this scheme the bank offered reduced rates of interest for
teachers who were interested in buying a new car. Rural India is a fast emerging as a focus area in the
country‘s economy.
ADVERTISING STRATEGYOF MARUTI SUZUKI INDIA LIMITED
Advertisingisone aspect of brand building. Whenever Maruti launched any brand, it supported that brand
with an ad campaign. Maruti‘s advertising campaigns included TVCs, Radio and Print ads, Point of Sale,
Mobile promotions,online marketing, Outdoor promotions. Maruti‘s advertising strategy focused both on
buildingupitscorporate image andpromotingitscars. Maruti‘scampaigns emphasized different aspects of
its cars, including fuel efficiency, looks, space, etc. In the late 1990s, Maruti‘s advertising campaigns were
handled by Lowe India (later known as Lowe Lintas & Partners, India) and Rediffusion DY&R. While
advertisingrelated to Esteem, Zen and Baleno were handled by Lowe India and the ad campaign of Maruti
800, Gypsy, Omni and Wagon-R were handled by Rediffusion. With an intention to promote the all brands

32
effectively, in 2000 Maruti decided to appoint Capital Advertising. In 2003, Maruti Suzuki came up with an
innovative advertising that became popular for its simplicity and clear message. In this ad one child plays
withhistoy car & whenthe fatherasked him, he replies, Kya karoon papa petrol khatam hi nahi hota‘. This
ad depicted the fuel efficiency of Maruti Suzuki.
BRAND RELATED ADVERTISMENTS OF MARUTI SUZUKI INDIA LIMITED
Maruti segmentedthe customersbydesigning its brand specific advertisements. The advertising of Maruti
was targeted towards the needs and wants of a particular consumer segment.
1. Wagon R Maruti launched Wagon R in 2000 and launched an ad campaign with the tagline, ‗A Car Full of
Ideas‘. In May 2009, Maruti launched an outdoor campaign for Wagon R using billboards, mobile vans,
unipolesetc.The outdooradsof WagonR were placed on 23 outdoor sites in and around airports of several
cities across India. In the ads different backgrounds were highlighted and each ad displayed a landmark
structure from each city with different messages. For e.g, in Mumbai it was,‘ Welcome to the city of film
stars and WagonR‘, in Hyderabad, the message was ‗Welcome to the city of Charminar & WagonR‘.
2. SwiftIn2005, Maruti came up withanad campaignfor itsnew Swift.The ad campaign included print ads,
teaser TV ads and a TVC. In the TVC ad a Maruti Swift car being driven by a young couple at high speed on
the road without stopping & car stopped only after chased by a traffic police.
3. A-Star Maruti has always been advertised A-Star with the tagline of ‘Stop at Nothing‘ which shows the
attitude that this car has always stood for. In this ad Farhan Akhtar was the brand ambassador during the
launch and the launch TVC also shared elements with the Bollywood hit film ‘Rock On‘ to make it more
relatable to the young adult seeking an expression for his passion.

33
Literature Review
Research Papers
1. MarketingStrategiesof IndianAutomobile Companies:A Case Study of Maruti Suzuki India Limited.
Written by – Dr. M. A. Lokhande and Vishal Singh Rana
In this research paper, the automobile market has been described as very dynamic and
competitive with a wide range of players and products. Some of the reasons for the growth of
this industry are easy availability of finance, attractive rate of interest, and convenient
instalments.Rigidcompetition has forced the manufacturers to innovate and be responsive to
customer’s demands and needs.
2. Automobile Industry: A Review
Written by – Amarjit Singh, Dr. Vinod Gupta
CMJ University, Shillong, Meghalaya, India
India has the potential to develop into a significant market for automobile manufacturers. Indian
automotive industryholdssignificantscope forexpansion, both in the domestic market, where the
vehicle penetrationlevel isonthe lowerside ascomparedtoworldaverage,andinthe international
market, where India could position itself as a manufacturing hub.

34
CONCLUSION
Automobile market today is very dynamic & competitive with a range of players and products. There are
many reasons for the impressive growth of the Indian passenger car Industry. Some of these are easy
availability of vehicle finance, attractive rate of interest and convenient instalments.
In today‘scutthroatcompetitionitisverydifficultto survive. Stiff competition has forced manufacturers to
be innovative and responsive to customer demands and needs.
Therefore Maruti Suzuki India Limited is a leading company in Indian Automobile sector which occupies
prominent place due to its innovative strategic marketing, promotional, Brand positioning, advertising
strategies. In today‘s scenario the success of company lies in structuring and restructuring the marketing
strategies and continuous innovation of product and services.
BIBLIOGRAPHY
Several sources have been used in completing the particular report:
 https://www.scribd.com/
 http://www.siamindia.com/
 https://www.marutisuzuki.com/
 https://www.marketresearch.com/
 https://www.tatamotors.com/
Thank You

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