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SALES AND DISTRIBUTION STUDY

MARUTI SUZUKI

A Car Market Leader’s Sales Story!Narayanan Palani(009)

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Background of Maruti

Maruti Suzuki India Limited ("Maruti") is the country's largest passenger car manufacturing company with a market share of 46%.

The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India

It offers 15 brands and over 150 variants

It reported consolidated revenues of $4.8 billion in 2010 and manufactures cars in all segments - passenger cars, hatch backs and sedans

The company is currently making 1.2 million vehicles annually and it has target of expanding to 1.75million by the year 2013

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What all goes into maintaining the numero uno position? 

Maruti always creating favorable conditions for customers' to be able to come and buy our products.

It have a specialized focus on different markets and are always the first company to tap every single source for incremental sales.

It develop portfolio catering to various segments. Like Maruti have seen that one-third of the customers' are fresh buyers.

It is a tough task to get them to our showrooms and persuade them to buy. they offer compelling reasons for them to buy now.

-R.C.Bhargava 

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Company Philosophy:

Spreading the countrywide network to reach out to more and more customers in tier-II, tier-III cities.

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Distribution Channel Expansion Plan(Next 5 years)

Network expansion is strategic to Maruti’s business and it would continue to focus on it.

Market target to double it’s sales network in next five years, in line with the company's sales plan.

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Dual-fuel strategy to increase sales

WagonR Duo (the LPG variant) is a success story!

Reason: Opted for LPG in place of the much

common and cheaper fuel CNG as a long-term strategy to have a all India presence.

While CNG is available in few number of cities, LPG has a wider availability and is a more acceptable fuel option, while retaining the advantages of petrol.

Source:http://economictimes.indiatimes.com/features/auto/the-man-behind-marutis-sales/articleshow/3122060.cms

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Ongoing activities to increase sales:

Maruti Suzuki continues to enhance the customer experience through its sales outlets and targets to take it to the next level.

In this endeavour, the company has undertaken a unique initiative of upgrading its three year old showrooms under project 'Nav Nirman'.

The objective of 'Nav Nirman' is to provide customers uniform buying experience across the country.

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Positioning cars to increase sales:

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March 2012 Latest Sales Figures:

Source: http://www.marutisuzuki.com/Maruti-Suzuki-Sales-in-March-2012.aspx

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Latest Report(2nd April 2012) The company sold a total of 125,952 units in

March 2012 reflecting a growth of 3.3 % over March 2011. This includes 13,228 units for exports, a growth of 14.7%.

The total sales in March 2012 are the highest ever monthly sales in the Company's history. The previous high in total sales was in March 2011 at 121,952 units.

The domestic sales in March 2012 are also the highest ever monthly domestic sales in Company’s history!

Source: http://www.marutisuzuki.com/Maruti-Suzuki-Sales-in-March-2012.aspx

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SALES

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DISTRIBUTION

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Stages of the Life Cycle for Maruti Esteem

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Sales Strategy(Learning's from Maruti’s previous years success story)

Maruti offer a combination of schemes to maintain a consistent growth in sales.

One of the most interesting one is the pan India campaign - Mera Sapna Meri Maruti - targeting rural markets and panchayat functionaries.

We have a strong brand value there and vast chunk of prospective car buyers prefer Maruti products.

While the employee referral scheme called 'Lalkaar, 'Wheels of India' scheme for state government employees, 'First Class Offer' for railway employees, vendors scheme 'Hum Sath-Sath Hai' and 'Power Deal' for NTPC employees have also been successful in generating incremental sales in the past. 

Source:http://economictimes.indiatimes.com/features/auto/the-man-behind-marutis-sales/articleshow/3122060.cms

15• Inputs : Raw materials and purchased

components. • Raw material : Rubber, glass, steel,

plastic, aluminium,• Components : Tyres, windshields, and

airbags. • Just In Time supply logistics.

• Comprehensive supplier development program.

• Incentives for far away suppliers to move near its plants.

• Supplier JV’s with local suppliers

Inbound Logistics

Operations Outbound Logistics

Marketing and sales Services

VALUE CHAIN

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Inbound Logistics Operations Outbound

LogisticsMarketing and

sales Services

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Jointly developed special Auto Wagons to support

high capacity, high speed and safer

transportation.

To support exports ,Roll-On-Roll-Off car terminal

at Mundra sea port in partnership with

MPSEZL(Mundra Port and Special Economic Zone

Ltd.)

Inbound Logistics

Operations Outbound Logistics

Marketing and sales Services

VALUE CHAIN

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Offer Customer new products and services that

Reduce customer’s cost of ownership

360 degree customer experience

Aggressively cutting prices to provide

cars at low prices.

Largest network of dealers amongst car

manufacturers

Inbound Logistics

Operations Outbound Logistics Services Marketing

and Sales

VALUE CHAIN

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2 year warranty at the time of purchase

Extended paid warranty program under the brand

“Forever Yours” for the third and fourth years

24 hour mobile service under the name “Maruti

Onroad Service”

Service stations on highways in India under the

brand “Express Service Stations”

Inbound Logistics

Operations Outbound Logistics Services Marketing

and sales

VALUE CHAIN

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Attractive Exchange Offers

Why exchange with Maruti Suzuki? Best Price for your car, transparent evaluation Best deals on new cars

Exchange bonus of Rs.5000 Zero down payment Low EMI Clean Documentation

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Sales Forecasting Method at Maruti Suzuki:

Sales potential: - It is an estimation of maximum sales opportunities present in a particular market segment open to a specified company during stated future period

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Educating Customers:

The company has made an educational Audio Visual film for customers.

The film communicates those factors that help in increasing fuel efficiency.

The film also explains the test procedures adopted to arrive at the fuel efficiency of a car. 

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Target Setting

Mission 255 in March 2012

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Territory Allocations

Rural India Outlets Target in the next two years:450

Maruti Suzuki plans to double the number of its outlets in rural India from the present 231 to around 450 in the next two years. By this time, the total number across the country will be closer to 1,000, up from the existing 680 dealerships.

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Dealers & Distributors-Mumbai Spectra Motors Pvt. Ltd Sai Service Vittesse Fort Point

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Motivation Sales People Target Setting Territory

Allocations

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Policies

Unsold Goods New Product Launches Withdrawal of old goods Reverse Logistics

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Unique features in Distribution Connecting

distributors though transportation channels for equipments like Body colored bumper, Green tinted glass etc.

Eg Alloy Wheels

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Customer Service

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Advertising & Communication Strategy As part of the restructuring exercise, Maruti also laid

emphasis on its advertising strategy to help maintain its position as a market leader.

The advertising campaigns of Maruti included TVCs, print and radio ads, outdoor promotions, point of sale and mobile promotions.

The company also organized different promotional events to attract prospective consumers.

Maruti also offered special schemes for specific professional and income groups.

The ad campaigns of Maruti emphasized on various aspects of its cars, including fuel efficiency, space, looks etc, to strengthen its brand image, and to promote its widespread network and services.

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Thank You!