A Report on Communication Strategies of Maruti Suzuki

A Report on Promotional Strategies of Maruti Suzuki

Submitted by:Bipin AmatyaMadhukar DanuwarKrishna PokhrelBiru GhaleSubmitted to:Bhawana Subedi Yam sirKranti Shah

INTRODUCTION OF THE COMPANY

MARUTI UDYOG LIMITEDMaruti is India's largest automobile company. The company, a joint venture with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry.Today, Maruti is India's largest automobile company. This feat was achieved by the missionary zeal of our employees across the line and the far-sighted vision of our management.

The Company Mission:

To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export markets.

The Company Vision:

We must be an internationally competitive company in terms of our products and services. We must retain our leadership in India and should also aspire to be among the global players.

HistoryMUL was a joint venture created in February 1981 between JapansSuzuki Motor Companyand the Indian Government when the latter decided to produce small, economicalcars forthe masses. The intention from the beginning was to produce a peoples car. On December 14, 1983, MUL launched the first Maruti vehicle the Maruti 800. The first model was the SS80, a 796cchatchback carpriced at Rs. 47,500. Available in vibrant colours when Indias passenger car population comprised mainly Ambassadors and Fiats in black and white, M800 gave Indians the first taste of global quality and reliability.In the years that followed, MUL consolidated its position with a line of Indian classics, such as the eight-seat Omni, the rough-terrain Gypsy, and, in October 1990, a 3-box Maruti 1000. MUL took the lead in the green drive by launching its CNG-run Omni and Maruti 800 in 1999.MUL redefined the premium compact segment with the launch of the Zen in October 1993. It was the companys first world car, selling across multiple markets. A year later, the Zen had won several awards, including No. 1 car in Europe (Auto Week, 1994), No.1 import in Europe (1997) and most fuel-efficient car (ADAC). Since its launch, the Zen has sold over 624,979 units. This true Indian globetrotter was followed by 1300cc Esteem, which was an exact replica of the Maruti 1000 since discontinued with more power and a new exterior. In 1999, MUL launched Baleno and WagonR. Baleno targeted the premium mid-segment while WagonR was positioned as a multi-activity vehicle. In 2000, MUL announced that it would launch a new model every six to twelve months. Accordingly, in 2000, Maruti Suzuki introduced Alto a premium small car targeting the export market and in October 2001, Versa, amultipurposevehicle.

As competition intensified, MUL launched various initiatives to improvecustomer service. In 1999, it established a chain of model workshops and soon after, set up customer call centres in the metros. Traffic on Maruti Suzukis interactive website, which provided information and practical help to customers, increased three-fold by March 2002.

In April 2003, MUL rolled out its latest offering, the Grand Vitara XL-7, a luxury SUV imported from Suzuki Motor Corporation. The Grand Vitara was a concept that was radically different from the models that comprised the bulk of MULs sales. Since its launch, Suzuki Grand Vitara has sold over 157 units.

Market

The Indian car market is one of Asias largest and most competitive. Over 1,030,068 passenger cars, multi and sports utility vehicles were sold during 2003/04, growing the market by 32% (Source: Society for Indian Automobile Manufacturers SIAM).With models in every segment of the automobile market, Maruti Udyog Limited (MUL), is well positioned to see how demand is shifting. Due to drop in prices and lowinterest ratesthere has been a sharp migration of car buyers to the compact car or B segment from the entry-level A segment.

This segment now accounts for 52% of the total passenger car market (excluding MUVs/SUVs). Compactcar saleshave raced ahead in January 2004 by 82% to touch 40,649 units. This is more than 22,297 units sold in December 2003. These segments are two of the success stories for the car industry.

AchievementsIn the 1980s, the Maruti 800 (M800) was Indias first peoples car. It caught the fancy of the middle class. Maruti Suzuki has never looked back since. In fact, in 2004, MUL will mark its 21st year of leadership in the Indian car market. The M800, first manufactured in1983, has sold over 2.1 million units. Even though competition predicts that the A segment is dying, the M800 continues to sell an average 12,000 units per month.It is not just the M800 that has kept MUL at the top of the car market; the versatility of the Omni has also made it an attractive buy in Kenya, Mozambique, Cyprus and Nepal. The rugged Gypsy is a front-runner in the 4WD segment in Africa, and the Alto in Europe has won several awards overseas. Recently conferred the Business Standard Motoring Jury Award 2004 for its latest offering, the Grand Vitara XL-7, MUL has proved that it can straddle two extremes from a tiny 796cc commuter to a large V6-powered flagship.MUL has made great strides in customer satisfaction. It is the only car company in the world to be ranked highest in customer satisfaction for the fourth year in a row (Source: J.D. Power Asia Pacific India Customer Satisfaction Index Study, 2000/03).The companys latest offering, the Grand Vitara XL-7, heralds a new era in safety, customer value and driving comfort. It is the first car in its class to offer an intelligent protection system comprising a high-tensile steel ladder-box frame, three-point outboard seatbelts, dual airbags, anti-lock brakes, side-impact beams and front/rear crumple zones for total passenger protection.

ProductMUL manufactures leading models in all segments of the car market. Maruti 800 rules the A1 segment. In the A2 segment, it has the Zen, WagonR and Alto, whose combined sales rose to 176,132 units in 2003/04, up 46% as compared to 2002/03. In the A3 segment, it offers the Esteem and Baleno, while Omni and Versa stake out MULs presence in the MUV market. The Gypsy King marks Maruti Suzukis presence in the rough-terrain sector, and up a couple of notches in the luxury SUV market is the Grand Vitara.

MUL PRODUCT LINECARS

Maruti 800 Maruti 800 STD BS III Maruti 800 AC BS III Maruti 800 DuoOmni 5 seater Maruti Omni 8 seater Maruti Omni LPG Maruti OmniMaruti Alto Alto Alto Lx Alto Lxi

Maruti Zen Estilo Maruti Zen Estilo Lx Maruti Zen Estilo Lxi Maruti Zen Estilo VxiWagon R WagonR Lx WagonR Lxi WagonR Vxi WagonR Ax WagonR DuoVersa 5 seater 8 seater ( DX & DX2)

Maruti Esteem Maruti Esteem Lx Maruti Esteem Lxi Maruti Esteem VxiBaleno Baleno Sedan VXi Baleno Sedan LXiSwift Swift LXi Swift VXi Swift ZXi Swift DieselLdi Swift Diesel Vdi

Maruti Gypsy Hard top Soft topMaruti SX4 Maruti SX4 Vxi Maruti SX4ZxiMaruti Zen Classic

Grand VitaraSwift DZire

COMMERCIAL VEHICLES

AMBULANCE

Omni Ambulance

AWAITED MODELS

MarutiEscudoMaruti KazshiMaruti Suzuki Splash

Maruti A-Star

Recent DevelopmentsMUL recently enhanced its product range with the introduction of the new Zen, new WagonR, Grand Vitara, Versa and Baleno models. The strategy is based on meeting customer needs. In the last 21 years, the company has launched twelve models and over 50 variants.A strikingnew lookfeaturing a more daring approach to design began with the launch of the Zen Predator and has been gradually rolled out to encompass key models in the Maruti Suzuki family. Keeping in mind the NFO Report, which illustrates that the key reasons forcar purchasetoday are brand image and price, the Zen Predator has been designed to give a perception of greater width and lower slung to highlight the strong, sleek and sexy image.In addition to cosmetic changes, the Grand Vitara XL-7 boasts of a 2.7 litre V6 engine that churns out a massive 166 bhp, making it themost powerful SUV in the Indian market. Baleno Lxi, which went on sale in January 29, 2004, was launched in response to customer feedback for a big, safe car, which delivers on performance and is priced below Rs. 6 lakhs. WagonR, which has sold 100,000 units, now features redesigned clear head lamps, clear tail lamps and a flowing chrome grille with provision for front fog lamps.Another significant development is MULs entry into the used car market in 2001, allowing customers to bring their vehicle to a Maruti True Value outlet and exchange it for a new car, by paying the difference. Maruti Suzuki has also taken the lead in other customer related benefits. For instance, Maruti Insurance is a hassle-free way for customers to have their cars repaired and claims processed at any Maruti dealer workshop in India. Maruti Finance is a tie-up with eight major finance companies which allows customers to choose from amongst standardised financing options. Maruti N2N is a fleet management service. Maruti provides complete end-to-end service including insurance, leasing, maintenance, registration, emergency assistance and accident management. The company also provides assistance in fleet re-marketing.

MARUTI SWIFTMaruti has strategised the brand campaign of its newly launched brand Swift. The ad-campaign will be product-centric and no props will be used. The ads will highlight the 'attitude' and a power car concept, by showing the car in some most striking formats.

"The campaign will be across all media - print, electronic (radio and television) and outdoor, as well as on websites such as yahoo and rediff," claims a Maruti executive.Capital Advertising handles the creative while Initiative handles the media. A re-look into ad budgets is on the cards, according to Maruti Udyog Ltd marketing manager Mayank Pareek. It is believed that, ad budgets could be laid on the chopping block since the brand is now quite well-known and respected.Maruti's official release claims that the Swift has been designed and built to meet aspirations of young Indians who want the most contemporary products and international lifestyles. This car has been targeted at the Indian customer who will look at the Maruti-Suzuki brand name and also demand typically Indian attributes like fuel efficiency, reliability and performance along with looks and sports an 'attitude' as well.Maruti Suzuki Swift, the brand that has transformed the Indian car landscape, turns five tomorrow. The Maruti Swift was launched in India on May 25, 2005. The car seemed destined to succeed from the day it was born. Nearly 16,000 customers had placed advance orders for the Maruti Swift even before it was unveiled and its price made public. It won a bagful of awards that year, including all the car-of-the-year awards in India.The international editions of Maruti Swift similarly won awards in markets across the world. In these five years, more than 4.5 lakh Maruti Swift cars have been sold in India.

In the early days of the brand, nearly 5,000 Maruti Swift cars were produced every month; an ambitious number for a car in that segment. In these five years, the Company has had to regularly scale up capacity and production to meet unmet demand for brand Swift.Today, driven by customer demand, Maruti Suzuki manufactures over 12,000 Swift cars in a month (including the diesel versions).Maruti Swift: New Design PhilosophyThe Swift is a landmark model for many reasons. As Suzuki Motor Corporations first World Strategic Model, it ushered in the new design philosophy of the Japanese small car giant. Bold, aggressive, distinctly European, sporty and curvy, it was unlike anything that Suzuki had offered until then. When Maruti Suzuki launched the Swift in India, it was instantly appreciated by Indian customers.The same sporty and dynamic design philosophy is evident in the subsequent four World Strategic Models Grand Vitara, SX4, Ritz and A-star that Maruti Suzuki has launched since then.Maruti Suzukis Managing Executive Officer (Marketing and Sales), Mayank Pareek said, The Swift has captured the imagination of Gen-next. It symbolises Maruti Suzukis efforts to be in step with a changing India. Its sporty styling and peppy performance made it an instant hit, and these attributes remain unsurpassed even today.

Maruti Swift: The Indian storyThe Swift is also special because this was the first time when Maruti Suzuki engineers worked in collaboration with Suzuki engineers in Japan to design and develop this car. Thus, the Swift launched in India was a global model, sensitive to requirements of Indian customers.The knowledge and exposure gained with the Swift enhanced the R & D capability of Maruti Suzuki, and enabled the Company to launch more India-sensitive models and face lifts in these last five years.Maruti Swift: Defining a New SegmentFive years ago, it was hard to conceive that customers of small cars in India would be willing to pay a premium for a small car. The Swift successfully challenged that perception and defined what is now popularly known as the premium A2 segment of the Indian car industry.

Maruti Swift and the New India:Part of the reason for Swifts success is that its journey coincided with a transforming India. In the last five years, customers have become more assertive, aware and demanding. They seek the best the world has to offer, while retaining Indian values of reliability, fuel efficiency and low cost of ownership. The Swift has successfully balanced these demands.

The Maruti Swift Diesel:Brand Swifts defining role is extended to the diesel segment as well. Launched in January 2007, it was instantly lapped up by customers who sought refinement and performance alongside the fuel economy of diesel. With the DDiS engine (Europes Engine of the Year 2005), the Swift Diesel marked Maruti Suzukis re-entry into the diesel car market.

The Cult car:Over the years, customers have conferred an iconic status to brand Swift. Little wonder that the Swift Life online Community is fast gaining popularity. The passionate Swift customers engage among themselves and with their favourite brand online and offline.

Maruti Swift and World Record:As a part of Swifts birthday celebrations and to commemorate the landmark, on Sunday, May 30, Maruti Suzuki will attempt to set a new World Record by bringing together the largest gathering of Swift cars in three cities Delhi NCR at Gurgaon, Mumbai and Sriperumbudur at Chennai simultaneously. This will be a first-of-its kind attempt in India and of its size anywhere in the world.A snapshot of Maruti Swift's sterling performance:1st One lakh units in under 21 months2nd One lakh units in under 13 months, fastest 2 lakh units sales among all cars3rd One lakh units in under 11 months, fastest 3 lakh units sales among all cars4th One lakh units in under 11 monthsOnly car in A2 + segment to achieve over 1 lakh unit sales per year consecutively for last two years.As per the ARAI certified fuel efficiency, the Swift Diesel with its compact 1.3 litre DDiS engine delivers 21 kmpl, while the Swift Petrol with next generation K Series 1.2 litre engine has a fuel efficiency of 17.94 kmpl. Promotion

MUL strongly believes in attribute-oriented advertising. In an attempt to reposition M800 as a choice for those upgrading from a two-wheeler, MULs campaign of a child playing with a toy M800 drives home the fuel-efficiency factor: the car never stops because the fuel never finishes. The future communication strategy that MUL has envisioned for M800 is a snap of a typical middle-class family commuting on their two-wheeler. Next to them is another family except that this one is comfortably ensconced in a Maruti 800. One of MULs most ambitious television campaigns launched the Zen Predator. Positioning it as strong, sleek and sexy, the commercial showcases the variants new styling through the theme of predator and prey in the context of a modern jungle. The theme is one of a chase that ends in willing surrender, brought home in the baseline: Surrender to the new Zen. The Zen Predator is being aggressively promoted in print. MUL bought the entire advertising space on The Weeks first issue of 2004. Additionally, MUL is the first Indian automobile corporate to utilise the internet for a complete branding exercise, using interactive and page domination techniques. Recently, MUL has turned its marketing focus to corporate TV commercials to promote its entire range of vehicles. The company has rolled out a new corporate TV campaign, featuring the Maruti Puttar. The rationale behind a second TVC featuring the same child model as the M800 campaign is to leverage the brand recall of the earlier commercial, driving home the point that A Maruti Suzuki family is a happy family. MUL is involved in a wide range of sponsorship activities, placing particular emphasis on motor sports. It was the founding sponsor of Raid De Himalaya, and in its fifth year continues to be closely involved with it. The company regularly holds car rallies for amateur drivers and aspiring rallyists. MUL now has plans to host golf and polo events.

Promotional strategies:

Road Shows

The company plans to stage road shows, to display vehicles in thepavilions during various college festivals and exhibition. This car will appeal toyoungsters more.

Television advertisements

Advertisements to promote and market our product will be shown on leading television channels. Major music and sports channels will promote and they will reach out to the youth will be promoted through Star,Zee, Sony and Door darshan etc as it has more viewers.

Radio

Radio is the medium with the widest coverage. Studies have recently shown high levels of exposure to radio broadcasting both within urban and rural areas, whether or not listeners actually own a set. Many people listen to other people's radios or hear them in public places. So radio announcements will be made and advertisements will be announced on the radio about the product features and price, qualities, etc.

Print Ads

Daily advertisements in leading newspapers and magazines will be used to promote the product. Leaflets at the initial stage will be distributed at railway stations, malls, college areas and various other locations.

Workshops and Seminars

Workshops and seminars will be held in colleges and big corporate to make people aware about the companies past performance and product features, its affordability and usage, vast distribution network. Road shows will be conducted where free trials of the car would be given.

Banners, neon signsHoardings, banners, neon signs displayed at clubs, discs, outside theatres and shops to promote SWIFT.

Booklets and pamphletsBooklets will be kept at car showrooms, retail battery outlets, etc for the customer to read. These booklets will provide information about our company; the products offered which suits the customers need accordingly.

CONCLUSION

The price of a car is just one-third of what it cost you over its lifetime. Running and maintaining it make up the other two-thirds. Take into account resale value and its real cost becomes clear. Maruti Suzuki stands for value as much as it stands for performance. In spite of rising input costs, we try our best to keep prices down. Their running costs and resale values are unbeatable too. Nothing matches the delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki owners stated that they would definitely recommend the car they drive to someone else. Infact, you dont buy a Maruti Suzuki. You invest in it.

After the rash of new cars launches the past two years, the relative lull in the auto industry is showing up in the customer satisfaction indices. According to the 2005 four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist division of TNS Automotive, the automobile ownership experience or customer ownership experience has declined in all areas compared to 2004. The study is one of the largest syndicated automotive studies in India, representing the responses of more than 7,000 new car buyers. The comprehensive study covers over 50 models with customer evaluations taken in the key areas of sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image, and cost-of-ownership. The TCS index score provides a measure of satisfaction and loyalty a given model enjoys with its customers. According to TNS Automotive, the decline is predominantly for older, small and entry mid-size car models. The ageing of these models seems to be posing a stiffer challenge for manufacturers to sustain past performance levels at a time when customer expectations are rising sharply.

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