Q : explain about Maruti Suzuki India and its car segments & market strategy in brief ? Introduction to Maruti Suzuki Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It is a 56.21%-owned subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor Corporation. As of January 2017, it had a market share of 51% of the Indian passenger car market. Maruti Suzuki manufactures and sells popular cars such as the Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Swift Dzire, Omni, Baleno and Baleno RS. The company is headquartered at New Delhi. In February 2012, the company sold its ten millionth vehicle in India (https://en.wikipedia.org/wiki/Maruti_Suzuki#Products_and_services ) Maruti Suzuki`s car segments With increasing competition, Maruti Suzuki decided to cater to all the segments of the Indian car market. The company not only launched new models but also upgraded its existing models drastically. Market segmentation is the vital step in marketing strategy. Considering the growing demand for passenger cars from various segments, Maruti Suzuki offers cars for different segments - like the small , the less costly Maruti 800, Maruti Omni, the middle level Maruti Zen, Swift and the higher level Swift Dzire, SX4 to Sports Utility Vehicle Grand Vitara. Maruti knew that the strategy of segmentation allows companies to avoid head-on competition in the market by differentiating their product offerings, not only on the basis of price but also through styling, packaging, promotional appeal, distribution methods and superior service. (http://shodhganga.inflibnet.ac.in/bitstream/10603/76185/14/15_chapter%205.pdf ) On the basis for follwoing four major Segmentation lets see how maruti cater their customers .
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Transcript
Q : explain about Maruti Suzuki India and its car segments & market strategy in
brief ?
Introduction to Maruti Suzuki Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It
is a 56.21%-owned subsidiary of Japanese automobile and motorcycle manufacturer Suzuki Motor Corporation. As
of January 2017, it had a market share of 51% of the Indian passenger car market. Maruti Suzuki manufactures and
sells popular cars such as the Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Swift Dzire, Omni, Baleno and Baleno RS.
The company is headquartered at New Delhi. In February 2012, the company sold its ten mill ionth vehicle in India
For example : Maruti Suzuki Ertiga has 7 seats for large families
https://www.carwale.com/marutisuzuki -cars/
Psychographic Segment Psychographic segmentation involves dividing your market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers.
In 2015 Maruti Suzuki launched NEXA, a new dealership format for its premium cars.
Maruti currently sells the Baleno Baleno RS, SCross, Ciaz and Ignis through NEXA outlets. S-Cross was the first car to be sold through NEXA outlets. Several new models will be added to
both channels as part of the Company’s medium term goal of 2 million annual sales by 2020
NEXA – the next generation showroom is Maruti’s earnest chance to win over a generation of customers who are tech savvy and care a lot about Brand image.NEXA is a differentiated and leadingIndian brand which is acquiring a good amount of reputation and huge amount of sales in the Indian Market, which was the main target market from the inception of NEXA.
( Brand Analysis of Nexa : Dr Komal Chopra Symbiosis Institute of Management Studies).
Suzuki SX4 S-Cross 1.6 DDiS (2016)
Suzuki Baleno (2015)
FF21S; 2016–present
Q2 : Why it was opened ? MSIL Managing Director & CEO, Kenichi Ayukawa said: “NEXA provides a new experience of
hospitality from Maruti Suzuki. Indian market and Indian society are rapidly changing and new
segments of customers are emerging. We have to take new initiatives to meet diver sifying
expectations from our customers”.
Customer feedback and surveys have shown there is a growing segment of car buying Indians who
desire and value personal care, warmth and attention in their car buying and ownership experience.
They want people, technology, showroom ambience and processes to come together and offer them
a “premium experience”. These customers want to be pampered! NEXA is designed for this segment
of customers.
(Maruti NEXA dealership - Press release New Delhi, July 23, 2015 )
Q:3 who all car makers are its competition ?
ANS : Almost all foreign subsidiaries could pose
tough competetion to NEXA Maruti .These
include
Ford India
(Presently, Ford has more than 376 sales and service outlets in 209 cities across India)
In October 2012, General Motors-Chevrolet announced that it has increased stake in its Indian subsidiary to 93% by buying 43% from its Chinese partner SAIC for an undisclosed sum.
HCIL has 331 dealership outlets across 121 cities in 20 states and 3 Union Territories of India.
( https://en.wikipedia.org/wiki/Honda_Cars_India)
Hyundai India
HMIL has 475 dealers and more than 1,226 service points across India . With exceeding 2,50,000 sales in first quarter of 2017 Hyundai aims to target half mill ion sales in domestic market in 2017.
VGSIPL's vehicle brands have a combined dealership network of more than 153 dealerships in mor e than 56 cities all over India.Skoda and Audi alone having in total around 120 dealerships across the country today.
As of April 2011, it has more than 205 dealerships in 98 cities across 22 states and 3 union territories of India In Local following Companies can pose tough competition.
HMIL has 475 dealers and more than 1,226 service points across India. HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki .
HMIL has 475 dealers and more than 1,226 service points across India.[4] HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki.[5]
HMIL has 475 dealers and more than 1,226 service points across India.HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki .
HMIL has 475 dealers and more than 1,226 service points across India HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki
HMIL has 475 dealers and more than 1,226 service points across India HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki
HMIL has 475 dealers and more than 1,226 service points across India.[4] HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki .[5]
HMIL has 475 dealers and more than 1,226 service points across India.[4] HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki .[5]
HMIL has 475 dealers and more than 1,226 service points across India HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki
HMIL has 475 dealers and more than 1,226 service points across India.[4] HMIL also operates its own dealerships known as Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and service network in India after Maruti Suzuki .[5]
Collect data on chosen company and product/service brand and identify the existing segmentation and targeting strategy PESTLE analysis Analyze the data and extract the SWOT current applicable to the chosen product/brand
Ans : identify the existing segmentation and targeting strategy of NEXA . Who then are these customers for whom NEXA is being launched?
MaDE in INDIA INTIATIVE could Increase NEXA Revenue
http://www.makeinindia.com. Make in India is an initiative launched by the Government of India to encourage national, as well as multi-national companies to manufacture their products in India. It was launched by Prime Minister Narendra Modi on 25 September 2014
Economical
Developing glopbal Economy could benefit the NEXA
Internation trade teriff affect e.g trade with china
Raise in oil prices internaionally will affect the company
Global financial crisis will reduce the companny`s share value in stock market
Developing Domestic Economy could also benefit the NEXA and Country both
Opening of new nexa showrooms will increase the employment apportunities both in industrial and showroom sector. And increase NEXA revenue too.
Company will pay more tax wich will enhance domestic economy
Monetary policy can affect the inflation and indirectly NEXA
Echange rate will affect NEXA import and Exports
deVlaueation in rupee can affect the purchasing power
46% share in automobile industry
Social
Engagging in social issues
Customer Requiement and social value
Company is spending on csr
Technological
At NEXA, technology will be the other name of convenience – while wall mounted display connected to iPads
give you all the information on the automotive industry, smartphone applications reduce paper work. If upon
entering a NEXA store a customer wishes to view competition models, a touch on an iPad connected to a wall mounted display enables an informed buying decision.
Identify and qualify segments by applying the segment attractiveness measures (such as – measurability; accessibility; substantiality etc.)
Ans :
Gaps or opportunities that the company can target afresh are
these
1.NEXA is a domestic brand it could cater the foreign market s there is a huge
potential in international market .Company could launch Nexa showrooms in
other countries like pakistan , Bangldesh , Nepal etc
2.As one research says that nexa showrooms are not offering the 100 % premium
characteristic which they claim they are made for , customer did not find it to be
as luxurious as other brands within its range . NEXA should improve their servises
for a long time customer. (Brand Analysis of Nexa Dr Komal Chopra Amit Singh
Kamit Malhotra Dhruv Duggal Symbiosis Institute of Management Studies )
3.Nexa showrooms could be open for prime cutomers of bikes/motorcycles
4.NEXA should introduce new models and design instead of Varients of the same
model . New car extririors
5.Customised Cars
6.Nexa should allso introduce Electric Cars
7.Nexa should use make in india campaign in their favour
8.Some people want Good Mileage(the ratio of the number of miles traveled
to the number of gallons of gasoline burned ) in city due to traffic
problems . more fuel efficient hybrid cars
9.Two types of showroom are damaging the luster of existing showroom
10.Nexa should mobile car repaing servicing to capture busy customers and
genrate more revenues
11.Online customer mrket .
12.Nexa should make plan to avoid strikes and other as last time happened
should not repeat
13.Prent company should analyse the international reports and ractify the
problems
14.Nexa should use existing maruti dealer network appropriatly
15.Nexa should focus on
……………………………………………
Identified segments after applying the segment
attractiveness measures (such as – measurability;
accessibility; substantiality etc.)
An attractive market segment is one that offers solid current or long-term profit potential for your business. Companies typically consider the various segment options they have to market to and may target one or multiple markets depending on how much money they have available to invest in marketing.
As Since the inception of NEXA it remained successful so it should also explore some foreign markets to genrate more revenues for the company.
Accessible
International buyer , online customer , Launching NEXA show room in the desired country
Substantial
As the new market will levrage the sales it will incrase the value of the company and its share
value will increase.
NEXA showrooms are exclusive . so very less competition .
Segment 2
Identifiable (Behavirol Segment ) these are those people who have used or checked out other brand`s cars physically or online
when they use NEXA they find some lopeholes and missinformation so if they buy the car once they avoide coming again or spread wrong word of mouth for the brand .
Accessible
By giving diffrent discount/benefit offers these buyers could be captured.
Firstly you can find these people online on the websites which facilitate in car comparasion .
Secondly while they come to your brand showroom . make a mchanism to identify that person has used other brands or not.
Profitable As due to these persons` bad reviews company bear big losses to satisfying other customers so
company should try to make them happy in reverse they will promote the brand free of cost
A large number of people behave in this way as on Black Friday offers so these could fetch the company a good revenue.
Growth rate This segment has huge potential as youtube and other social websites are expanding .
Segment 3
Identifiable (Demographic )
Midel and upper class could be the target .
Accessible
Same as Maruti has opened the NEXA for CARS it can Open NEXA showrooms for bikes as well as . There is a big apportunity for capturing Prime bike customers.
Profit
bike is a need + style so there is a huge big market of this segment .Bikes are not so much expensive as CARS but bikes could be sold more than cars so could be profitable market .
Growth There is huge potential of growth of this segment and right now there is no competition too. The industry is growing at a rate of 30% annually.
Segment 4
Identifiable (Psychographic)
Some persons use a product for few months and tired of that they want new verity
not the varients of same product.
Accessible
By making Exclusive CARS portion in the NEXA showrooms and frequently online promotions and new exterior design production this segment of customers could be captured . company can take orders in advance for their upcoming exclusive models for super premimum
customers .
Profit
Company can charge a little bit more for exclusive and limited
Cars.
Growth rate
This segment also has good potential if appropriatly focused and
advertised well.
Segment 5
Identifiable ( Demographic / Behavirol)
Some secular and tech lover buyers now want Electric cars but
almost no company in India is focusing on this NEXA could make a hybrid engine of Electricity and CNG and become no1
brand through inception.
Accessible
These customers could be access through online car portals
data and advertisng on TV and social media.
Profit
New technology always sold on high prices and I think premium
customers can afford it too.
Growth
Some of the European countries have announced to
compeletly eliminate hzardous gas emiting cars. Which
means developing countries can aslo take such initiatives. So
there is a huge potential in this segment.
Segment 6
Identifiable (Demographic)
Some nationalist and conservatives always support the
product of their country NEXA can use the sentiments of
these people for their CAR sales e.g by launching a CAR in
the name “ Kirshina CAR “ could incrase the sales of the
company .
Accessible
These people could be accessed at religious places like
Temple and Nationalist processions and meetings and by
advertising on nationalist chanels as punjabi chaneli,hind
chanel etc.
Profitable
Launching a Product by featuring some culture or custome
will hit the sentiments of the people in this segment like
texture,Name and interrior will not be burden on the
company production line .
As company will launch the product for this
particular segment its sales could increase if
apprpriatly advertised.
Growth rate
This segment has great potential as there is
one dominated religion in the country so
cutomers can bost immesly.
Segment 7
Identifiable (Demographic) Mileage lover : while considering the reviews of different NEXA Cars Models most people were prefering and focusing on mileage so by providing good mileage car at reasonable price
this segment of customers can be captured.
Accessible
These customers could be found in middel classs some time in
lower middel class . ( access through TV ,Social media )
Profitable AS most of the population belongs to middel class fulfilling the needs of this segment can
incrase the sales.
As other companies are already providing less mileage as compared toNEXA in the same range of Price so NEXA
can improve revenue .
Growth rate
There is a huge potential in this sector is appropritly
addressed because middle class is maximum than upper and
lower class.
Segment 8
Identifiable (Geographic /Demographic ) Beyond the CAR selling NEXA can offer Primium CAR servicing which would be able to
collect the out of order CAR from any point within the range or provide car mobile servicing .
Accessible Busy Persons , Ladies and almost all kind of people who can drive could be target customers . and access through Social media and TV and bilboards.
Profit
Nexa has already established Its name this servicing could help in genrating more revenues by usingthe name of NEXA. Company can easily afford the subsidiary business as it is already running some others e.g CAR finance and insurance srvices.
Growth rate Huge potentail of groth as there is CAR , car owner need a service firm too,no competitor and CARS always rquire service so never ending business.
Segment 9
Identifiable ( Behavirol) Most of the customer now purchase products online or take decisions by visiting online
webportals.company should focus on online advertising and good web experience.
Accessable Found Online , for accessing this segment use google adsen advertise ,youtube , facebook
Profit Online satisfaction will lead to purchase the product offline thus result in large profits.
Not so much expensive company can bear the easily expenses of managing online website and ads .
Growth rate Huge market immense groth rate. No need to explain
Segment 10
Identifiable ( Demographi)
Most customers want customised CARs for fulfilling their wants NexA could provide semi customised cars for thses customers .
Accessible
No need to access them they will come to you just need to
promote the tag line “ we make what you want “
Profit
Only super premium customers can use the service and will ready to pay what you demand.
Growth rate
Depend upon Country Economy and develpoment and purchasing power
Stage 3:
From the segments above, select ones that you
propose to target (Targeting)
Propose positioning strategy for chosen target
segment(s)
ANS :
I suggest the third segment (bike NEXA showroom)
Same as Maruti has opened the NEXA for CARS it can Open
NEXA showrooms for bikes as well as . There is a big apportunity for capturing Prime bike customers .
Identifiable (Demographic )
Target market
1.Midel and upper class could be the target .
2.Target Market should be youngsters age group of above 18 and below 30 .