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Presented To:

Dr. Sanjay JainPresented By:

Mayank Jaggi ( BM-09105)

Megha Pant ( BM-09110)

Naveen Pandey ( BM-09113)Navneet Kumar ( BM-

09114)

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� Maruti Udyog Limited (MUL) was establishedin Feb 1981 through an Act of Parliament, tomeet the growing demand of a personal mode

of transport caused by the lack of an efficientpublic transport system.

Today, it is the largest automobile company inIndia

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� Market leader in the car segment, both in termsof volume of vehicles sold and revenue earned.

� 18.28% of the company is owned by the Indiangovernment, and 54.2% by Suzuki of Japan.

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� Caters to all segment and has a productoffering at all price points

� Their pricing strategy is to provide an option toevery customer looking for up gradation in hiscar

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� Advertisements targeting different segments

� Promotional offers through out the years

�

Psychographics is used :� Wagon-R : Smarter people (executives)

� Omni : People who need to transport goods

� Alto : Small car : small family

�

Zen Estillo : Young trendy people� SX4 : corporate people with the tagline

´Men are Backµ

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� Maruti Finance

� Maruti Insurance

� Maruti Driving School (MDS)

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� In order to demand a premium price fromconsumers

� By attempting to distinguish organizationalproducts or services from other competitors

� Organization offers employees incentives andcompensation for creativity

� HR strategy focus on external hiring of uniqueindividuals, and on retaining creativeemployees

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� Dealer network across the countryA wide dealership network allows the company to service customers over a wider

geographical area than competitors. Currently, MUL has 500 sales outlets thatcover 312 cities, as compared to 162 outlets of Hyundai Motors and 140 outlets ofTata Motors

B True Value OperationsMUL providing its customers an opportunity to resale their car to MUL or exchange

with a new Maruti car under its ´True Valueµ network has proven really beneficial.In FY07 True Value network touched 10000 units a month and more than 90% ofthat resulted in the exchange of a new car

C Presence across segments

In a car manufacturing plant, the press shop, paint shop, engine and transmissionassembly, and machine shop are used for manufacturing different modelsA presenceacross various segments ensures that the company retains its existing customers byoffering them upgrades from its portfolio of models.

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� Higher localizationIt has rationalized vendors from 370 in 1999-00 to

225 in 2005-06 has resulted in MUL enjoying the

highest operating margins amongst its peers

� Commonality of platforms-Commonality between the platforms of various

models lead to lower product developmentefforts and higher benefits of economies ofscale. It uses only two platforms

.

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� Investment plans

Maruti is going to invest around $ 1.8 billion for researchand development and marketing purposes. Maruti has atarget of producing one million cars by the year 2010-2011.

Expansion Strategy Growth and expansion is a way oflife and that is why Maruti has decided to set up a R & D

facility within an area of 500 acres in Haryana ,India. Thisis going to be the largest R & D center after Japan.

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