Marketing Strategies of Indian Automobile Companies: A

Case Study of Maruti Suzuki India Limited

Dr.M.A.Lokhande1, Vishal Sunil Rana2
1
Prof & Head, Dept of Commerce, Dr.Babasaheb Ambedkar Marathwada University, Aurangabad, (M.S)
2
Asst Prof & Head, Dept of Business Administration, S.S.B.T’s College of Engg & Tech., Jalgaon (M.S)
Emails: 1murlidhar_lokhande@yahoo.com, 2vishal.rana1980@yahoo.com
1
Corresponding Author

Abstract— In today’s competitive era the word launched efforts to create an automotive
‘Strategy’ is very crucial for all business component manufacturing industry to supply to the
organizations. Presently organizations started automobile industry. By the end of 1970s,
realizing that customer centric and aggressive significant changes in the automobile industry
marketing strategies plays vital role to become were witnessed. After 1970 the automobile
successful leader. Though globalization has industry started to grow, but that growth was
opened the doors of opportunities for all, the mainly driven by scooters, tractors and commercial
market is still crowded with some unknown vehicles.
risks and lot of competition. Because of this In 1983, the government of India made a
competition, a marketing strategy must aim at tie-up with Suzuki Motor Corporation of Japan to
being unique, differential-creating and manufacture low-cost cars in India. The Maruti
advantage-creating. To obtain unique and 800 which is still known rolled out the factory of
differential advantage, an organization has to Maruti Udyog Limited in December 1983 and
be creative in its marketing strategy. Today due changed not just India’s automobile industry but
to innovative marketing strategies Maruti also the way people commuted and travelled. In
Suzuki has become the leading & largest seller 1990s through liberalization initiatives India
of automobiles in India. Company has adopted opened its gates for all the countries and in 1993,
various Brand positioning, Advertising, the government followed up its liberalization
Distribution strategies to capture the market. measures with noteworthy reductions in the import
Maruti’s few unique promotional strategies duty on automobile components. Today the Indian
include Teacher Plus Scheme, 2599 scheme, automobile market has a mix of large domestic
Change your life campaign. The objective of automobile players like Tata Motors, Mahindra &
this paper is to focus on various marketing Mahindra, Bajaj, Hero Motocorp, Ashok Leyland
strategies of Maruti Suzuki India Ltd. and major international giants including Suzuki,
Honda, BMW, Audi, DaimlerChrysler, Volvo,
Keywords- Strategy, Brand Position, Marketing, Hyundai, Toyota, Nissan, General Motors and
Promotion, Distribution Ford etc.

I. INTRODUCTION II. OBJECTIVES OF THE PAPER

(HISTORICAL REVIEW)
• To Review the progress of Indian
The automobile manufacturing industry in India Automobile Sector
dates back to 1948. At that time there were just • To understand the Marketing Strategies of
three companies manufacturing passenger cars i.e. Maruti Suzuki India Limited
Premier Automobiles in Mumbai, Hindustan
Motors (HM) in Kolkata & Standard Motors III. REVIEW OF LITERATURE
Products India in Chennai. In early years the
Indian automobile Industry faced several • Sumit Jain & Dr.R.K.Garg, in their research
challenges and road blocks to growth because in paper described about current scenario of
those days automobile manufacturing was subject automobile industry and challenges facing by
to restrictive tariff structure, strict licensing and Industry. They pointed that, the companies
limited avenues for expansion. Due to lack of have to shorten product lifecycles in order to
competition initially the prices of cars were react to the expectations of individualize and
extremely high. And the customers had to wait for fast changing consumer demands with
a long period of time for car. Before Independence innovative products, and the integration of
India was considered as a market for imported strategic partners with more responsibility
vehicles. In the 1950s the arrival of Tata Motors, into the value chain should be intensified.
Mahindra & Mahindra & Bajaj Auto led to steadily • Exim bank’s occasional paper highlighted
increasing vehicle production in India. In 1953 the that the global financial meltdown of the year
government of India and the private sector 2008 has created a precarious condition
 across various sectors, which has forced The core values of company include:
countries and industries to take a fresh look • Openness and learning
at their future strategies. The paper also • Innovation and Creativity
pointed out that the Indian automotive • Fast, Flexible and First mover
industry holds significant scope for • Customer Obsession
expansion, both in the domestic market, • Networking and Partnership
where the vehicle penetration level is on the
lower side as compared to world average and Currently Maruti Suzuki India Ltd offers 14 brands
in the international market, where India could which include Maruti 800, Omni, Eeco, Zen Estilo,
position itself as a manufacturing hub. Alto, Alto-K10, A-Star, Wagon-R, Swift, Ritz,
• Rajkumar Gautam & Sahil Raj, in their Swift Dzire, Sx4, Gypsy, and Grand Vitara. Maruti
research paper depicted the scenario of Suzuki has a market share of 44.9% of the Indian
automobile sector of the world and India. In passenger car market as of March 2011. Today
their paper they have investigated that the Maruti Suzuki has built a strong sales network of
globalilzation process has affected the sector 600 outlets spread over 393 towns and cities. The
in all the areas of manufacturing, sales, maintenance support is offered to the customers
personal research & development and through 2628 workshops spread over 1200 towns
financing. They also concluded that, in order and cities.
to meet the challenges posed by globalization
the Indian automobile manufacturers need to V. PERFORMANCE OF MARUTI
ensure the technological advancement, SUZUKI INDIA LIMITED
appropriate marketing strategies and
adequate customer care feedback system in A. The Sales trend of Maruti Suzuki from
their organizations. year 97 to 2008 is illustrated in Figure
• P Krishnaveni in her article focuses on the 1.1
current details and some future plans of
Maruti Suzuki India Ltd. The article also
highlighted the various innovation of
company like introduction of Electronic
power Steering (EPS), introduction of
superior quality of 16*4 hypertech engines.

IV. 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 catalyzed and led the
modernization of the Indian passenger car industry. Fig 1, Source: CMIE Prowess Database (97-2007)
Over its 26 years of journey, Maruti Suzuki (Rs.in Crore)
transformed itself from a successful Public Sector
Company (PSU) to a vivacious and listed Multi- From the above pie chart it is observed that in the
National Company (MNC), sustained its leadership March 2008 Maruti Suzuki’s sales was 21221
position and remained profitable despite tough Crore which is 21.55 % more than March 2007.
competition. In October 2, 1982 the company
signed the license and joined venture agreement B. The Industrial Sales trend of Maruti
with Suzuki Motor Corporation, Japan. It was the Suzuki from year 97 to 2008 is
first company in India to mass produce and sell illustrated in Figure 1.2
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 company
launched world strategic car model popularly
known as Maruti Suzuki Swift which hit the Indian
car market.
 customer’s demography 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:
Fig 2, Source: CMIE Prowess Database (97-2007) Earlier the Omni was known as Van. The van was
(Rs.in Crore) targeted more at businessman, tourist taxis and
large families. It was positioned as a vehicle
As observed in the above chart it is revealed that offering benefits of a car with more space. But due
the Industrial sales grew for the period Mar 04 to to some different perceptions of consumers
Mar 08. The Industrial sales of Maruti Suzuki in regarding van, after some time the van was
the year March 2008 was 20070.9 Crore which is renamed as Omni and was repositioned as the most
23.26 % greater than previous year. spacious car. Recently Maruti Suzuki launched
new variant called Omni Cargo which has been
VI. MARKETING STRATEGIES OF positioned as a vehicle for transporting cargo and
MARUTI SUZUKI INDIA LIMITED meant for small traders.
In earlier days when the market was dominated by 3. Alto:
only few brands like Ambassador & Premier Maruti launched Alto with tagline ‘Let’s Go’. In
Padmini, Maruti Suzuki India Limited entered the the TVC of Alto, a young married couple goes to
Indian market with different strategy. The strategy different destinations in their Alto. By this TVC
of the company was to offer a compact, modern Maruti positioned Alto as a car for young people.
and fuel efficient car. Maruti released its first Also the car has highlighted as fuel efficient car.
Maruti 800 car on 14 December 1983 to fulfill the
dreams of Indian customers and became the market 4. Wagon R:
leader. Since 1983 till date Maruti Suzuki Maruti Suzuki launched the Wagon R brand in
gradually offered several choices to the consumer. February 2000. This is one of the successful brand
Due to aggressive competitors today Maruti from Maruti portfolio in the premium segment of
Suzuki believes in Innovative Marketing compact cars. Wagon R was initially positioned on
Strategies. With the changing needs, wants & the basis of the functionality platform. Earlier this
requirements of customers and markets, Maruti car was promoted as a family car with the baseline,
Suzuki is altering their Brand Positioning, ‘Feel at Home’. Then as per the changing pattern
Advertising and Distribution strategy. of market , competition and customers Maruti
altered the positioning of Wagon R from Feel at
VII. BRAND POSITIONING STRATEGY Home to ‘Inspired Engineering’ to “As Interesting
OF MARUTI SUZUKI INDIA as you are” and finally to “For a Smarter Race”.
LIMITED
5. A-Star:
Brand Positioning is the most vital concept in a While speaking about A-Star Mr. Shashank
brand’s strategy. Brand Positioning is also linked Srivastav says that the A-Star was the only car in
with managing a brand’s meaning. Today several the Indian market that was targeted at the urban
brand of cars are positioning themselves on the youth. “It is about the new generation of Indians
features like Price, Comfort dimensions, Safety, who are confident”. Also in the second campaign,
Mileage etc. Currently Maruti Suzuki followed a which was done around July 2009, the company’s
very effective multi-segmentation strategy to grab focus was to inform the consumers about the A-
the different segments of the market with different Star’s K-Series engine. The current campaign of
versions of its brands. About brand positioning A-Star focuses on self belief and confidence.
Mayank Pareek says that, Maruti Suzuki believe in Considering the fact that self belief and confidence
research and before launching a product the Maruti are the attributes of youths, Maruti has positioned
team does an extensive research on the needs of A-Star very well. In the current ad campaign a
the customer. Maruti try to understand the
focus has given to a young person who goes for an Swift & other brands through sponsoring various
Interview & with his confidence and self belief he live programmes (Dancing shows) like Dance
impresses all. India Dance.

VIII. PROMOTIONAL STRATEGY OF IX. ADVERTISING STRATEGY OF

MARUTI SUZUKI INDIA LIMITED MARUTI SUZUKI INDIA LIMITED

Every company is it a big or small needs an Advertising is one aspect of brand building.
innovative promotional strategy because Whenever Maruti launched any brand, it supported
promotional campaigns tend to have a huge effect that brand with an ad campaign. Maruti’s
on the reception of the product. Maruti Suzuki advertising campaigns included TVCs, Radio and
India Ltd has a formidable line-up of vehicles in its Print ads, Point of Sale, Mobile promotions, online
stable and has been quite aggressive about marketing, Outdoor promotions. Maruti’s
promoting each of its automobile brands. With an advertising strategy focused both on building up its
intention to face with cutthroat competition and corporate image and promoting its cars. Maruti’s
due to declining market shares, in 2000 Maruti campaigns emphasized different aspects of its cars,
Suzuki cut the prices of few models like Wagon R, including fuel efficiency, looks, space, etc.
Omni and Maruti 800 because Maruti knew very In the late 1990s, Maruti’s advertising campaigns
well that the Indian consumer is very sensitive were handled by Lowe India (later known as Lowe
about price & this price cut will definitely Lintas & Partners, India) and Rediffusion DY&R.
beneficial for company. In Jan 2002 to attract the While advertising related to Esteem, Zen and
customers, Maruti decided that some of its Baleno were handled by Lowe India and the ad
corporate assets in Delhi including Maruti’s campaign of Maruti 800, Gypsy, Omni and
manufacturing plant and children’s park should be Wagon-R were handled by Rediffusion. With an
promoted. With an intention to promote road intention to promote the all brands effectively, in
safety and efficient driving the company held 2000 Maruti decided to appoint Capital
‘carnivals’ periodically at IDTR. Advertising. In 2003, Maruti Suzuki came up with
In 2003, to attract the customers Maruti Suzuki an innovative advertising that became popular for
launched attractive campaign like “Change Your its simplicity and clear message. In this ad one
Life”. The company also offered vehicle insurance child plays with his toy car & when the father
for One rupee only. In this campaign the customers asked him, he replies, ‘Kya karoon papa petrol
were asked to write down the chassis and engine khatam hi nahi hota’. This ad depicted the fuel
number of their vehicles on the entry form and had efficiency of Maruti Suzuki.
to answer the question. In this contest the winners
were chosen by a draw of lots and were entitled to X. BRAND RELATED ADVERTISMENTS
gifts worth Rs.50 million. OF MARUTI SUZUKI INDIA LIMITED
In 2004, Maruti introduced the ‘2599’ offer under
which by paying an EMI of Rs. 2599 for seven Maruti segmented the customers by designing its
years after a down payment of Rs.40000, a brand specific advertisements. The advertising of
consumer could buy a Maruti 800. In 2004 Maruti Maruti was targeted towards the needs and wants
introduced the ‘Teacher Plus’ scheme, in a tie up of a particular consumer segment.
with SBI. In this scheme the bank offered reduced
rates of interest for teachers who were interested in 1. Wagon R
buying a new car. Maruti launched Wagon R in 2000 and launched
Rural India is a fast emerging as a focus area in the an ad campaign with the tagline, ‘A Car Full of
country’s economy. Maruti knew that there is a Ideas’. In May 2009, Maruti launched an outdoor
great potential in rural markets & in rural markets, campaign for Wagon R using billboards, mobile
the endorsements of opinion makers takes vans, unipoles etc. The outdoor ads of WagonR
precedence over an informed objective Judgment. were placed on 23 outdoor sites in and around
Considering this fact, Maruti Suzuki launched a airports of several cities across India. In the ads
panchayat scheme for such opinion makers which different backgrounds were highlighted and each
covers the village Sarpanch, doctors and teachers ad displayed a landmark structure from each city
in government instititutions, rural bank officers with different messages. For e.g, in Mumbai it
where in an extra discount is given to make a sell. was,’ Welcome to the city of film stars and
As a part of customer engaging strategy and to WagonR’, in Hyderabad, the message was
attract the potential customers Maruti organized ‘Welcome to the city of Charminar & WagonR’.
various melas wherein local flavor is added by
organizing traditional social activities like Gramin 2. Swift
Mahotsava are conducted round the year. As a part In 2005, Maruti came up with an ad campaign for
of promotional approach Maruti Suzuki promoted its new Swift. The ad campaign included print ads,
 teaser TV ads and a TVC. In the TVC ad a Maruti 2,500 rural dealer sales executives, among the total
Swift car being driven by a young couple at high 15,000 dealer sales executives.
speed on the road without stopping & car stopped
only after chased by a traffic police. CONCLUSION
Automobile market today is very dynamic &
3. A-Star competitive with a range of players and products.
Maruti has always been advertised A-Star with the There are many reasons for the impressive growth
tagline of ‘Stop at Nothing’ which shows the of the Indian passenger car Industry. Some of these
attitude that this car has always stood for. In this ad are easy availability of vehicle finance, attractive
Farhan Akhtar was the brand ambassador during rate of interest and convenient installments. In
the launch and the launch TVC also shared today’s cutthroat competition it is very difficult to
elements with the Bollywood hit film ‘Rock On’ to survive. Stiff competition has forced
make it more relatable to the young adult seeking manufacturers to be innovative and responsive to
an expression for his passion. According to customer demands and needs. Maruti Suzuki India
Mayank Pareek, Head of Marketing, Maruti Limited is a leading company in Indian
Suzuki India Ltd says that Cyber media is the best Automobile sector which occupies prominent place
Marketing tool. The company has displayed their due to its innovative strategic marketing,
banners on various internet sites. And due to boom promotional, Brand positioning, advertising
of Cineplex’s and Malls, marketing has become strategies. In today’s scenario the success of
easy. company lies in structuring and restructuring the
marketing strategies and continuous innovation of
XI. DISTRIBUTION STRATEGY OF product and services.
MARUTI SUZUKI INDIA LIMITED
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