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MB0046 : Consider the company, Maruthi Udyog Limited. Elaborate on the company’s marketing mix and give examples related to the 4 P’s.

Posted on: October 19, 2011

MB0046  : Consider the company, Maruthi Udyog Limited. Elaborate on the company’s marketing mix and give examples related to the 4 P’s.  
Answer : MUL was a joint venture created in February 1981 between Japan’s Suzuki Motor Company and the Indian Government when the latter decided to produce small, economical cars for the masses. The intention from the beginning was to produce a ‘people’s car’. To get the project off the ground MUL took over the assets of the erstwhile Maruti Ltd., which was set up in 1971 and closed in 1978.

Market

The Indian car market is one of Asia’s 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%

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 low interest rates there has been a sharp migration of car buyers to the compact car or ‘B’ segmentfrom the entry-level ‘A’ segment. This segment now accounts for 52% of the total passenger car market (excluding MUVs/SUVs). Compact car sales have 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.

Maruti Udyog Limited Company’s marketing mix

Product

MUL 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 MUL’s presence in the MUV market. The Gypsy King marks Maruti Suzuki’s presence in the rough-terrain sector, and up a couple of notches in the luxury SUV market is the Grand Vitara.

Pricing

The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti – 800 is the lowest price car of this company. Alto, Omni, Wagonr, are also the low price car of the company. Zen and Esteem are the mid price car of the company. But Grand Vitrara is the high price model of the company. The price of car is decided according to its product Varity, quality, design etc.

Place

The place of the car is in the whole world. Maruti udyog Limited decides its distribution channels for selling car, like use some time on level or some time two level marketing channels. They decide areas in which they deal with customers. They show the permanent location for selling the car. They provide the many useful inventories. They define the transport facility of the company for company to market and market to consumers. Many showroom of Maruti Udyog limited is in our India.

Promotion

MUL strongly believes in attribute-oriented advertising. In an attempt to reposition M800 as a choice for those upgrading from a two-wheeler, MUL’s 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 MUL’s most ambitious television campaigns launched the Zen Predator. Positioning it as ‘strong, sleek and sexy,’ the commercial showcases the variant’s 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 Week’s 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.

Brand Values

In 1983, Brand Maruti Suzuki was defined as ‘the people’s car’. These values have remained consistent ever since.

Over the years, MUL has set the stage for the successful launch of Suzuki’s international range in the Indian market, all backed by the inherent value proposition of high quality, fuel efficiency and, compared with competition, low price. This formula has been largely responsible for a new generation of Indian car users swearing by the Maruti Suzuki brand name.

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3 Responses to "MB0046 : Consider the company, Maruthi Udyog Limited. Elaborate on the company’s marketing mix and give examples related to the 4 P’s."

Thank u very much for this information. It will help many students of SMU-DE. I am very grateful and thankfull. There are yet many people, who share their efforts to other.

This is going to be extremely helpful for working professionals who won’t be able to take time to complete their assignments on time. Thank you so very much for sharing!

thank you so much ,this will help me to prepare a good and innovative lesson plan for teaching marketing mix…

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