Sushil Mma Final

8/14/2019 Sushil Mma Final

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5/11/2009

GROUP ASSIEGNMENT | SUSHIL KUMAR AND NAIMISH

JOSHI


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CONTENT

THE CHALLENGE AND GOALS.... 03

SITUATION ANALYSISCOMPANY ANALYSIS.. 03GOALS..FOCUS.. 06MARKET SHARE 07

COMPETITOR ANALYSIS... 08MARKET POSITION..... 08STRENGTHS.. 09WEAKNESSES. 09

CLIMATE KEY TRENDSPOLITICAL, ECONOMIC AND LEGAL ENVIRONMENT. 10

TECHNOLOGICAL ENVIRONMENT.. 10

SWOT ANALYSIS.. 11

MARKET SEGMENTATION. 13

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CHALLENGES AND GOALS

According to MARUTI vision statement, its goals include maintaining leadership in the

Indian automobile industry, creating customers delight, increasing shareholder wealth

and being a pride of India. The company has ranked highest in the India sales satisfaction

study. These challenges pointed directly to a produce lifecycle management solution with

capabilities for information management, process management, knowledge capture and

support for global collaboration: a palm solution directly addressing MARUTIs business

challenges. For example, information management capabilities address the issue of the

many platforms, local variants and export destination. Process management permits

concurrent development and faster change management and provides a platform for the

process improvements- for faster vehicle development. Knowledge capture increases

innovation and also reduces costs by increasing part re-use. Palm collaboration

capabilities permit global development by ensuring fast and accurate dissemination of

product information.

SITUATION ANALYSIS

Company analysis

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Marti Suzuki is one of India's leading automobile manufacturers and the market leader in

the car segment, both in terms of volume of vehicles sold and revenue earned. Until

recently, 18.28% of the company was owned by the Indian government, and 54.2% by

Suzuki ofJapan. The Indian government held an initial public offering of 25% of the

company in June 2003. As ofMay 10, 2007, Govt. of India sold its complete share to

Indian financial institutions. With this, Govt. of India no longer has stake in MARUTI

Udyog.

MARUTI Udyog Limited (MUL) was established in February 1981, though the actual

production commenced in 1983 with the Marti 800, based on the Suzuki Altokei car

which at the time was the only modern car available in India, its' only competitors- the

Hindustan Ambassadorand Premier Padmini were both around 25 years out of date at

that point. Through 2004, Marti has produced over 5 Million vehicles. Marutis are sold

in India and various several other countries, depending upon export orders. Cars similar

to Marutis (but not manufactured by Marti Udyog) are sold by Suzuki and manufactured

in Pakistan and otherSouth Asian countries.

The company annually exports more than 50,000 cars and has an extremely large

domestic market in India selling over 730,000 cars annually. Marti 800, till 2004, was the

India's largest selling compact car ever since it was launched in 1983. More than a

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http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/May_10http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/May_10http://en.wikipedia.org/wiki/May_10http://en.wikipedia.org/wiki/May_10http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Government_of_India


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million units of this car have been sold worldwide so far. Currently, Marti Alto tops the

sales charts. Marti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of

Japan, has been the leader of the Indian car market for over two decades. During 2007-

08, Marti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six

million Marti cars are on Indian roads since the first car was rolled out on December 14,

1983.

SALES FIGURE -2009

Segment ModelsApril

2009 2008 % change

April'08 -

march'09

A1 M800 2345 4458 -47% 49383

C Omni, versa 7724 7705 0% 77948

A2

Alto, wagon-r, zen,

swift, a-star 46817 43121 9% 511396

A3 Sx4, dzire 7066 4187 69% 75928

Total passenger cars 63952 59471 8% 714655

Muv Gypsy, vitara 905 68 1231% 7489

Domestic 64857 59539 9% 722144

Export 6891 2797 146% 70023

Total sales 71748 62336 15% 792167

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http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/December_14http://en.wikipedia.org/wiki/1983http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/December_14http://en.wikipedia.org/wiki/December_14http://en.wikipedia.org/wiki/December_14http://en.wikipedia.org/wiki/1983http://en.wikipedia.org/wiki/1983http://en.wikipedia.org/wiki/1983


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For the full year ended march 2009, MARUTI recorded revenues in line with our

expectations of rs. 24244.9 cars as against rs. 22569.4 cars in fy2008, a rise of 7.4%. The

operating profit stood at rs. 2469.0 cars as against rs. 3212.5 cars in fy2008, a decline of

23.1%. The net profit for the year was rs. 1224.3 cars as against rs. 1799.5 cars in

fy2008, a decline of 32%. The net profit was down basically due to the losses incurred

due to the foreign currency fluctuations in q1 and q2 fy09 which have a lagging effect

and is visible in the q4fy09 results. The hedge reserve of the company stands at a

negative rs. 170 cars as on 31st march, 2009

PRUDUCT ANALYSIS

The swift super-compact is designed to be a very affordable motor car. The swift model

looks sharp, well-built and robust. The cockpit is simple, highlighted by a sporty three-

spoke steering wheel framing attractive silver-ringed instrumentation. The styling of the

swift is distinctively European and closely mimics the styling cues of the concept s and

s2 show cars: it looks bang up-to-date with a wide air dam, flared wheel arches, rear roof

spoiler and smart contouring around the shoulders. The centre stack has a satin finish

with very legible and logically laid-out controls. Suzuki is serious about winning new

buyers to the brand with good equipment levels and attention to the little things. The

level of equipment makes the swift far from a poverty pack and the quality of materials

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and assembly looks and feels very good. The engine is a gem which is a carryover unit

from the esteem. A slick five-speed manual transmission is one of the lightest in recent

memory and the light clutch and short gate make gear-changing a pleasure.

It's the ride that really impresses though as it is quiet and well controlled without

compromising road holding or handling. The swift has a very predictable chassis with

not too much under steer. There isn't too much body roll and it seems unaffected by

crosswinds.

Overall the swift is an impressive vehicle with excellent economy, more than a hint of

sportiness, stand out styling and lots of thoughtful touches. It shows that Suzuki has

really sweated the detail on this car and come up with a truly competitive and value

product that is well worth considering.

GOALS

No. 1 in Initial Quality Study

Total Customer Satisfaction

Best Value for Money Car

Best Design and Styling

Viewer's Choice.

Number one premium compact car in.

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FOCUS

Major milestone ahead.

Manisar plant on schedule.

Diesel car on the way

South India sales have outperformed.

MARKET SHARE

Currently Suzuki holds 54.2% stake of Marti, the balance being held by variousQIBs, PCBs and

Public. On BSE, Marti has the highest market capitalization in the auto sector.

We are the largest car company in the country. So far, we have produced more

than 6.6 million cars.

We are Suzuki's largest manufacturing facility, outside Japan offering 11 models

in over 150 variants.

The turnover last year was USD 3.37 Bn employing more than 6700 employees. The high localization of parts within India is one of our distinct strengths.

Where the company has 3 plants in Gurgaon facility, 4th plant was added with

the capacity of 1

Hundred thousand at Manesar in 2006-07.

COMPETITOR ANALYSIS

i20 is a car of the era, compact yet spacious, technologically advanced yet environment

friendly from the pioneer of small car manufacturers MARUTI Suzuki, christened as

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MARUTI Swift. But then as MARUTI was making inroads into the mindset of compact-

car category, Hyundai made no mistake to capitalize on MARUTIs success with launch

of Hyundai i10 and now with more advanced and spacious Hyundai i20. If spacious is

synonymous with MARUTI Swift, Hyundai i20 promises value for money with no

compromise on comfort and space.

MARKET POSITION

Available in five variants and six shades of metallic hue, price of MARUTI Swift ranges

from Rs 4 lacs to Rs 5.6 lacs. While Hyundai i20, launched in eight vibrant shades is

priced at Rs 4.79 lacs for Magna version, Rs.5.59 lacs for the Asta and Rs.5.82 lacs for

Asta (O), New Delhi, ex-showroom.

STRENGTHS

Hyundai i20 comes with an extended wheelbase measuring 2525mm. This aspect gives

greater stability to Hyundai i20 as compared to MARUTI Swift with wheelbase of

2390mm. The size does matters and rightly so Hyundai i20 stands with 3940 mm in

length and 1710 in width. Hyundai i20 a bit shorter to Swift but in its look Hyundai i20

reflects sturdier appeal. Hyundai i20 with differential gear ratio clocks 0-60km in 12.9

seconds. Hyundai i20 is good for the Indian roads. The 5-year warranty puts the Hyundai

head and shoulders above most of the competition.

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WEAKNESSES

There are strings attached with every new invention and improvement on products.

These strings are Tata Motors weaknesses and what other groups perceive as their

weaknesses. One weakness that Tata Motors faces is its inability to meet safety

standards. Tata Motors only have been making passenger cars for the approximately

last ten years. This can be viewed as a weakness from a customer standpoint since a

decade does not seem like a lot to consumers and therefore they will think that Tata

Motors is inexperienced car manufacturing. Another weakness that Tata Motors faces is

within its domestic market. Car sales in India are less than 1 million annually.

MARKET SHARES (USING CURRENT DATA NOT CASE DATA)

POLITICAL, ECONOMIC AND LEGAL ENVIRONMENT

A high economic growth (over 7.6% GDP growth running since last five years)

Favorable taxation & duty structure (along with excise duty seeing a downward

trend, import duties on components has also been reduced recently)

More number of and newer models available

Developing road infrastructure

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Widening reach of finance companies

Underlying changes happening in the demographic profile of the country as

represented by a rising middle class; favorably skewed age profile and the huge

two-wheeler population presents good opportunities.

TECHNOLOGICAL ENVIRONMENT

Chiseled shoulder line to complement muscular flared wheel arches and

skills

Bumper integrated centre fog lamps under an international styled rear

boot lid.

Rich chrome styling for an imposing grille and an impressive rear.

Classy vertically oriented headlamps and integrated fog lamps.

Chic wraparound tail lamps.

Fully integrated stereo.

Steering mounted audio control.

Automatic Clemet control

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Multifunctional functional display.

SWOT ANALYSIS

This swat analysis company profile is the essential source for top level data and

information. The report examines the company's key business structure and operations,

history and products, and provides summary analysis of its key revenue lines and

strategy.

STRENGTHS

The quality advantage

Fewer problems

No. One in the premium compact car segment

A buying experience like no other

MARUTI Suzuki has a sales network of 307 state of the art showrooms across 189

cities.

High sales and customers care standards.

Quality service across 1036 cities

WEAKNEASS

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Commodity price risks

Muls commodity price risks relates to higher costs due to changes in prices of

inputs.

Exchange rate risks

OPPURTUNITIES

Leading growth

THREEATS

Risk factors

Business risks

COMPETITORS

Hyundai Santro

Hyundai i20

Tata indica

Hyundai getz

MARKET SEGMENTATION

DEMOGRAPHIC

Age group : 20-34SUSHIL KUMAR

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Gender : male, female

Family : 3-4, 4+

Income : Rs 20000-30000, 30000-50000, 50000 and above

Occupation : professional, officials, supervisors, home makers, youngsters

PSYCHOGRAPHIC

Social class : middle class, working class, upper lowers

Lifestyle : strives, achievers.

BEHAVIORAL

Benefits : quality, service, economy, speed

Readiness stage : interested, intending to buy

Maruti swift has an international technology and it comes under small car segment.

Thats why Indian consumers putting their nearest on maruti swift. The price of swift is

affordable for upper middle class family. Also it has rich look and its also targeting to

rich people.

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