The Marketing mix of Maruti Suzuki analyses the 4Ps of Maruti Suzuki, which includes the Product, Price, Place, and Promotion of Maruti Suzuki. Maruti Suzuki is a subsidiary of a Japanese manufacturing company, Suzuki. This Public Ltd Company, also known as Maruti, deals in the manufacture of automobiles. It was founded in 1981 and has its headquarters in New Delhi. In February 2012, the company’s ten millionth automobile was sold in India. Its chief competitors are as follows-
About Maruti Suzuki
- Type: The automobile manufacturer
- Industry: Automotive
- Founded: February 24, 1981
- Founders: Government of India and Suzuki Motor Corporation
- Headquarters: Gurgaon, Haryana, India
- Area served: India
- Current CEO: Hisashi Takeuchi
- Number of employees: 180,000+
- Major products: Cars, vans, and SUVs
Table of Contents
Maruti Suzuki Product Strategy
Maruti Suzuki occupies a 37% share of the Indian passenger car market. It manufactures various types of cars and sells them on the market. Its various passenger cars are-
- Grand Vitara
One of the key features of Maruti Suzuki products is that they are made with the commoner in mind. None of the products are expensive, and neither have any features that make them pricey. However, the products are known for their durability, service, pick up, car design, and most things you expect from an essential car.
The tertiary product of Maruti Company is its service. Besides its products, Maruti also provides services such as an on-road service by its vehicle that is operated for emergencies round the clock. The company has also opened a call center to serve its internal members and customers. Information centers that provide customer services are open in cities like Bangalore, Hyderabad, and Chennai.
Another service product is annual maintenance contracts and service centers that offer services to Maruti cars. Maruti service centers are present nationwide, with India’s highest number of service centers. This makes a massive difference in decision-making when not in an urban area.
- Hatchbacks: Known for their compact size and affordability, Maruti Suzuki’s hatchbacks, lSuzuki’sAlto, Swift, Wagon R, and Baleno are popular. These models offer good fuel efficiency and are ideal for city driving.
- Sedans: Offering more space and luxury, their sedan line includes models like the Dzire and Ciaz. These are well-suited for families looking for comfort and a bit more room.
- SUVs and MUVs: With the growing demand for SUVs in India, Maruti Suzuki has models like the Vitara Brezza and S-Cross in the compact SUV segment and the Ertiga and XL6 in the multi-utility vehicle (MUV) category. These vehicles are known for their robust design and spacious interiors.
- Vans: Maruti Suzuki offers the Omni and Eeco to target the commercial segment of large families. These are practical options for transporting goods or people in urban and rural areas.
- CNG and Hybrid Vehicles: In response to the increasing environmental concerns and fuel prices, Maruti Suzuki has introduced CNG variants for several models and is also working on hybrid and electric vehicles.
- Commercial Vehicles: The Super Carry is Maruti Suzuki’s entry into Suzuki’s commercial vehicle segment, catering to small businesses for goods transportation.
This diverse product range enables Maruti Suzuki to cater to various customer needs and preferences, from basic transportation to more luxurious and spacious options.
Maruti Suzuki Place Strategy
In the earlier stages, the company Maruti imported all its cars. This caused dissatisfaction in the minds of local manufacturers. In 1983, the Maruti 800 was released in the Indian market, and local production started in December 1983. The plant in Gurgaon extended its capacity to forty thousand units. In 1987, Maruti exported its first batch of nearly five hundred cars to Hungary. In 1995, Maruti opened its second manufacturing plant with a capacity of 200,000 units per year.
In 1988, the capacity of the Gurgaon plan was extended to 100,000 units per year. Presently, the Gurgaon plant has three integrated plants for manufacturing purposes and manufactures 900,000 vehicles annually. The plant also has 150 robots, and the cars that the plant manufactures are Eeco, Gypsy, Omni, Estilo, WagonR, Alto, and 800. By the year 2004-5, Maruti had export deals with at least fifty countries all over the world. In 2006, Maruti Alto and Suzuki decided to build two new plants for manufacturing purposes.
The manufacturing plant at Manesar was opened in 2007. Although its initial capacity was 100,000 vehicles, this increased to 550,000 vehicles. By March 2014, Maruti Suzuki had offered dealerships to nearly nine hundred and thirty-three dealers in India and six hundred and sixty-six cities and towns. It has three thousand and thirteen service stations in its company’s name, extending to nearly thousand four hundred and thirty-six thirty-six cities and various towns. M Maruti also has thirty stations for express services on thirty highways across multiple cities in India.
Maruti Suzuki’s place strategy follows:
- The company has an extensive network of dealerships across India, ensuring that their vehicles are easily accessible to customers in both urban and rural areas.
- Maruti Suzuki also operates numerous service centers and workshops, providing convenient after-sales service and maintenance to enhance customer satisfaction and loyalty.
- They have established state-of-the-art manufacturing facilities in key locations like Gurgaon and Manesar, which aids in efficient production and distribution across the country.
- The company utilizes a mix of direct sales through authorized dealers and digital platforms, catering to traditional buyers and a growing online customer base.
- Maruti Suzuki has also formed strategic partnerships with various financial institutions to provide financing options at their dealerships, making vehicle purchases more accessible for customers.
Maruti Suzuki Pricing Strategy
We can call Maruti’s pricing and marketing strategy both penetrative and competitive. Maruti Suzuki has a pricing policy that is based on many factors. It correctly evaluates the market by studying the most crucial fact: how a customer can pay for a car and his needs. The company’s research team analyzes the current market trends, the competition, the cost of raw materials, the economic factors governing the market, the distribution charges, the cost of advertisement, the dealer’s list, and the company’s profit.
As the pricing policy is a very subjective and sensitive issue, special care is taken to ensure that the pricing policy remains reasonable and affordable. Maruti has always emphasized volume more than prices, which is the reason for their continued success. Despite rising costs, service is also a critical gene ator of revenue for the company. The numerous service stations are handled on a franchisee basis and have become significant revenue earners for Maruti Suzuki.
Maruti Suzuki’s pricing strategy is a cornerstone of its market dominance, blending competitive pricing with a perceived value proposition that appeals to a broad customer base. Here’s an analysis of its pricing strategy:
- Value-Based Pricing: Maruti Suzuki primarily employs value-based pricing, where the price is set based on the car’s perceived value to the customer. This approach allows them to cater to different segments, from budget buyers to those seeking premium features.
- Competitive Pricing: In a market as price-sensitive as Indi, Maruti Suzuki maintains competitive pricing to stay ahead of its rivals. They closely monitor competitors’ pricing competitors to ensure their vehicles are attractively priced, balancing affordability with quality.
- Segmented Pricing: The company employs segmented pricing to cater to different market segments. For instance, their entry-level models like the Alto are affordable. At the same time, their premium offerings, like the Ciaz, are priced to match their higher-end features and target a different consumer segment.
- Psychological Pricing: Maruti Suzuki occasionally uses psychological pricing strategies, like slightly pricing a car under a round number (e.g., ?4.99 lakhs instead of ?5 lakhs). This tactic aims to make the price significantly lower and more attractive to potential buyers.
- Cost-Plus Pricing: For specific models, especially in the commercial vehicle segment, the company employs a cost-plus pricing strategy, adding a standard markup to the cost of manufacturing the vehicle.
- Dynamic Pricing: Maruti Suzuki also adapts its pricing strategy in response to external factors such as changes in government policies, tax rates, input costs, and market demand trends.
Overall, Maruti Suzuki’s pricing strategy is a balanced mix of market competitiveness, customer value perception, and cost efficiency, enabling them to maintain a strong market position and appeal to a wide range of customers.
Maruti Suzuki Promotion Strategy
One of the first things Maruti does to promote its product is to use all types of media when launching a new product or variant. The brand and the service promise of the company do the rest. The brand has been built over decades, and people now know that a Maruti Suzuki product will be reliable. The most prominent way to advertise is the ATL and mainly television, after which newspaper, outdoor, and print take preference.
Maruti uses a very distinctive promotion l strategy to market its products. The main emphasis is on the road safety measures. Advertisements are telecast in visual and print media such as television, radio, newspapers, magazines, shows, seminars, and workshops. The famous actor R Madhavan has acted in promotional campaigns for this company and has been its brand ambassador. Maruti Suzuki’s advertising and promotional strategy has been distinctive and informative. They have continued to touch the hearts of consumers through their products, services, and even their promotional activities.
Maruti Suzuki’s promotion is as follows:
- To reach a broad audience, the company invests heavily in advertising and marketing campaigns across various media platforms, including television, print, online, and outdoor advertising.
- They actively participate in auto expos and organize roadshows and test drive events to engage with potential customers and showcase their latest models and features.
- Maruti Suzuki also extensively leverages digital marketing and social media platforms to connect with the younger demographic and create buzz around new launches and offers.
Some Recent Video ads and Print ads of Maruti Suzuki are:
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