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PROJECT REPORT
ON
STRATEGIC MANAGEMENT

BCG Matrix to analyze the product portfolio

of a maruti suzuki

SUBMITTED TO –

Miss. JASPREET KUAR SUBMITTED BY-

(LECT.) RAJIV KUMAR

RT1802A10

10805347
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Acknowledgement
First of all I would like to take this opportunity to thank the Lovely
University for having (strategic management) as a part of the
M.B.A.Many people have influenced the shape and content of this
term paper, and many supported me through it. I express my
sincere gratitude to Professor Miss.JASPREET KAUR madam
for assigning me a SEMINAR PROJECT REPORT paper on “BCG

MATRIX OF MARUTI SUZUKI”This is an interesting and exhaustive

subject.He has been an inspiration and role model for this topic.
Her guidance and active support has made it possible to complete
the assignment.I also would like to thank my Friends who have
helped and encouraged me throughout the working of the term
paper.
Last but not the least I would like to thank the Almighty for always helping
me.

RAJIV KUMAR
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TABLE OF CONTENTS

Page no.

 Maruti Suzuki India LTD 4

 Facts about Indian Car Market 5

 Market scenario (2008 -2009) 6

 Objective of the company 7

 4Ps 8-9
 BCG Matrix of Maruti Suzuki 10-12

 SWOT analysis 12-13

 Maruti Udyog limited product profile of Maruti Suzuki India

limited ltd 13-16
 Conclusion
17

 Bibliography
18
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Maruti Suzuki India LTD

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the
lack of an efficient public transport system. It was established with the objectives of -
modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve
scarce resources and producing indigenous utility cars for the growing needs
of the Indian population. A license and a Joint Venture agreement were signed it the
Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the
equity and agreed to provide the latest technology as well as Japanese management
practices. Suzuki was preferred for the joint venture because of its track record in
manufacturing and selling small cars all over the world. There was an option in the
agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years later, in
1992, Suzuki further increased its equity to 50% turning Maruti into a non-government
organization managed on the lines of Japanese management practices. Maruti created
history by going into production in a record 13 months. Maruti is the highest volume car
manufacturer in Asia, outside Japan and Korea, having produced over 5 million
vehicles by May 2005.
Maruti is one of the most successful automobile joint ventures, and has made
profits every year since inception till 2000-01. In 2000-01, although Maruti generated
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operating profits on an income of Rs 92.5 Billion, high depreciation on new model

launches resulted in a book loss.

Facts about Indian Car Market:

Although the Indian automobile industry has come a long way since the deregulation In 1993,
India does not rank well among its global peers in many respects, viz., the Contribution of the
sector to industrial output, number of cars per person, Employment by the sector as a
percentage of industrial employment, number of Months' income required to purchase a car, and
penetration of cars.

Figure:-Passenger vehicle stock per 100 people

India is far behind from other countries with just 6.9 cars per 100 persons, while Unites States
has 76.9 cars on per 100 persons. Among developing countries, Russia also stands ahead than
India and China with 16.3 cars per 100 persons.Two things that stunted growth of the Indian
automobile industry in the past have been low demand and lack of vision on the part
of the original equipment Manufacturers (OEMs). However, the demand has picked up after the
liberalization of the regulatory environment, andGlobal OEMs who enjoy scale economies both
in terms of manufacturing and Research and development (R&D) entered the Indian market.
This has resulted in a significant shift in the way business is conducted bysuppliers, assemblers
and Marketers.

Vision
The leader in the India Automobile Industry, Creating Customer Delight and Shareholder’s
Wealth; A pride of India”
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Mission
To provide maximum value for money to their customers through continuous Improvement of
products and services. Maruti has a network of 391 sales outlets across 230 cities all over India.
The service network covers 1,113 towns and cities, bolstered by 2,142 authorized service
outlets.The company's change in strategy and emphasis on developing effective marketing
communications was their highlights.

MARKET SCENERIO (2008 -2009)

The company vouches for customer satisfaction. For its sincere efforts it has
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Been rated (by customers) first in customer satisfaction among all car makers in India
For ten years in a row in annual survey. Maruti Suzuki India Limited, a subsidiary of
Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for
Over two decades.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were
Exported. In all, over six million Maruti cars are on Indian roads since the first car
Was rolled out on 14 December 1983.

OBJECTIVE OF THE COMPANY

Maruti’s marketing objective is to continually offer the customer new products and
Services that: Reduce the customer’s cost of ownership of their cars; and anticipate and address
the customer’s needs and preferences in all aspects and stages of car ownership,
to
Provide what they refer to as the “360 degree customer experience.”They sell ten models with
more than 50 variants in segments A, B, C, and utility vehicle segment of the Indian passenger
car market. Of these, they manufacture nine models and import the Grand Vitara as a completely
built unit from Suzuki in Japan. Their models and variants are designed to address the
changing demands of the advantage of the brand recognition associated with their products,
they retain the brand name of the product through various stages of product upgrades over time.
For example, the version of the Maruti 800 brand currently sold in the market is a significantly
upgraded version, in terms of technology, design and styling.
Maruti 800 launched in 1983.

GRADE Utility Vehicle

Utility Vehicle
A
A
B
B
B
C
C
C
C
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CAR Esteem
Baleno
Maruti 800
Versa
OMNI
SWIFT
Zen
GYPSY KING
Wagon R
GRAND VITARA
Alto
4Ps:-
 Product

 Price

 Place
 Promotion

Product Strategy:-

 Portfolio of 12 products

 Five product lines

Product Line Products

A1 800

A2 Alto, Zen, Wagon –R, Swift, A-star

A3 D ZiRE, Sx4

SUV Vitara, Gypsy

C - Class Omni, Versa

Price Strategy:-
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, Wagon R, are also the low price car of the company, Zen
& Esteem are the mid price car of the company. But Grand Vitara is the high price model of the
company. The price of car is decided according
To its product variety, quality, design etc.

Place strategy:-
 600 New car sales outlets covering 393 cities.
 265 ‘Maruti True Value’ outlets spread across 166 cities.
 2628 Maruti Authorized Service Stations, covering 1220 cities.
 Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat
Suggested Place strategy:-
 400 new car sales outlets in next three years.
 S150 new true value shops in next three years.
 1200 new Maruti Authorized Service Stations in next three years.
 Tie up with other distributors for Exports.
Promotion Strategy:-
 Advertising
♦ TV Ads
♦ Print Ads
♦ Radio Ads
“Ghar AA Gaya Hindustan”
“India Comes Home in Maruti Suzuki.”
 Information Advertising, alternative Advertising Options
 BTL - Sponsorships
 TV shows - India’s Got talent
 Place Advertising – Bill boards
 Sales Promotions
 Product warranties
 Premiums (gifts)
 Trade shows
 2,628The number of workshops that provide customers with maintenance
support in 1220
Cities.
MATRIX of MARUTI SUZUKI
 MATRIX of MARUTI SUZUKI

STAR:
The Company has long run opportunity for growth and profitability. They have high
Relative market share and high Growth rate. SWIFT, SWIFT DESIRE AND ZEN
ESTILO is the fast growing and has potential to gain substantial profit in the market.

QUESTION MARK:
There are also called as wild cats that are new products with potential for Success but
there cash needs are high and cash generation is low. In auto industry of MARUTI SX4,
GRAND VITARA, ASTAR There has been improve the organization reputation As they
want successful not only in Indian market but as well as in global market.

CASH COW:
It has high relative market share but compete in low growth rate as they generate Cash
in excess of their needs.MARUTI 800, ALTO AND WAGNOR have fallen to ladder 3
& 4 due to introduction of ZEN ESTALIO and A STAR.

DOG:
The dogs have no market share and do not have potential to bring in much
cash.BALENO, OMINI, VERSA There businesses have liquidated and trim down
thusThe strategies adopted are that are harvest, divest and drop. BCG matrix can serves
as a simple tool for viewing a corporation’s business portfolio at a glance and may
serves as a starting point for discussing resource allocation among strategic business
units.
 SWOT ANALYSIS
STRENGTHS
Bigger name in the market
Trust of People
Maruti Udyog Ltd. is the market leader for more than a
Decade.
Has a great dealership chain in the market
Better after sales service
Low maintenance cost of vehicle

WEAKNESSES
Exports are not that good.
 Lesser diesel models in the market compare to others
Global image is not that big
OPPURTUNITIES
Great opportunities to go global with success of Swift and
SX4 allover
 Introduction of more diesel models. The diesel car segment is
Growing
Opportunity to grow bigger by entering into bigger car
Markets
Already a market leader so great opportunity to be the king of
Market in every stage of industry

THREATS
Foreign companies entering market; so a bigger threat from
MNCs.
To the market share, as many big names are coming in the
Industry
There is hardly any diesel models
Rs. 1 lakh – Rs. 1.5 lakh car

MARUTI UDYOG LIMITED

PRODUCT PROFILE OF MARUTI SUZUKI
INDIA LIMITED LTD.
ALTO - LET’S GOS
The alto is a great combination of economy, practicality and styling. A runaway
Success on the roads of Europe, it exemplifies the benchmark in build, quality and
Reliability in a compact car. This is testified by the 24 hour endurance record set on
August 3, 2003 of covering 3082 kms in 24 hours at an average speed of 128 kmph.
BALENO – SURPRISING PERFORMANCE
India’s true performance sedan is upwardly mobility, redefined. The 13 advanced
Noise reduction technologies ensure the cabin is quiet and peaceful. The flat torques
Of 132 Nm allows one to enjoy 94 bhp of refine power. Enjoying a cult following
Among those who appreciate technology as an art form, the Baleno is a truly
Awesome performer.

GRAND VITARA XL – 7 - LIVE THE GRAND LIFE

Live the grand life with the new GRAND VITARA XL –7. This luxurious 7 seater, 4
Wheel drive sports utility vehicle comes equipped with a powerful V6 engine, 166
Bhp of power and 236 Nm of torque. Which enables you to conquer any terrain with?
Utmost ease? Enjoyed by both the adventurous and successful, the new restyled
Grand Vitara XL –7 is now available in India directly imported from Suzuki, Japan.
GYPSY – ADVENTURES UNLIMITED
Be it the wild outdoors or the urban jungle, the Gypsy King glide by with ease. The
Adventurous streak runs through all the gypsy siblings. This 1300 cc off – road
Vehicle combines the raw of 80 bhp (at 6000rpm) with superb 4 – wheel drive
Maneuverability and a rugged frame (it’s available in both soft and hard top
Versions). Its useful fifth gear, of course, delivers over drive for on – road cruising.

OMNI – FITS ALL

The Omni is truly India’s Original Multipurpose Vehicle. Today it is available in six
Avatars – 5 seater, 8 seater, cargo, ambulance, CNG and LPG. It meets diverse needs
Across different user segments and can double up both as a people carrier and a goods
Carrier. This faithful workhouse is easy on the pocket, yet tough on the job.

VERSA - THE JOY OF TRAVELLING TOGETHER

Equipped with twin AC, large sliding doors and flexible seating, the Versa
Encourages families and friends to enjoy long drives and gateways together. In spite
Of being so spacious, its design allows for easy maneuverability in the city.

MARUTI 800 - CHANGE YOUR LIFE

It has gone beyond being just a car; it has actually changed the lifestyles of countless
People, by bringing the joy of motoring to millions across the length and the breadth
Of the country. Standing testimony to this claim is the fact that more than 2 millions
Maruti 800s have been sold till date. Today, India best selling continues to be the
Final word on value and economy at the entry-level segment.

WAGON R-INSPIRIED ENGINEERING

The Wagon R’S original tall body design, spaciousness, ergonomically designed
Interior and flexible seating all set it apart from other cars. It complements the buyers
Unique personality enables him to live a multi-dimensional life by the sheer
Excellence of its engineering and its versatility.

ZEN –SURRENDER TO THE NEW ZEN

If you are looking for a car with drop – dad looks and unmatched performances, then
You need look beyond the Zen. With its new contemporary and aggressive look, the
Zen preserves its core values of driver appeal, unmatched reliability and economy.
600000 satisfied customers in India and around the world bear testimony to this fact.
ESTEEM PERFORMANCE, QUALITY ANDFUEL EFFICIENCY

Undoubtedly one of India’s favorite entry – level “C” class vehicles, the esteem is the
Perfect combination of power, comfort and economy. It’s also the preferred choice of
Rally drivers across the country for its performance and reliability. The Esteem offers
The option of an 85 bhp petrol engine for those who desire power and a 57 bhp diesel
For those who value economy. Not surprisingly, it tops its class in quality surveys.

SWIFT- YOU ARE THE FUEL

The hot looks, sexy interiors, the automatic climate control, the air bags, the power
Steering moreover, all so affordable. The wait is over. Swift has entered MUL’s
Portfolio. What are you waiting for?

A-STAR-STOP @ NOTHING
Powered by state of art 998 cc engine, it’s the best fuel efficient car in its category
with, mileage coming around 20km per liter.

SX-4 – MEN ARE BACK

Revolutionary European design, world class “drive by wire” .Most spacious in its
Class, Steering mounted audio controls; with maximum ground clearance, high on
Safety with dual airbags.
SWIT DZIRE- THE HEART CAR
A car having everything you desire stunning looks, luxurious interiors, enough power
To capture your heart. Just slide in desire and take it for a spin. Its sure steal many of
Hearts including yours.

Ritz - “Live the Moment”

Model of 2009 known by the name Suzuki splash having attractive back with
Maximum ground clearance.
 CONCLUSION

The price of a car is just one-third of what it cost you over its lifetime. Running and maintaining it
make up the other two-thirds. Take into account resale value and its real cost becomes clear. Maruti
Suzuki stands for value as much as it stands for performance. In spite of rising input costs, we try
our best to keep prices down. Their running costs and resale values are unbeatable too. Nothing
matches the delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki
owners stated that they would definitely recommend the car they drive to someone else. Infact, you
don’t buy a Maruti Suzuki. You invest in it.After the rash of new cars launches the past two years,
the relative lull in the auto Industry is showing up in the customer satisfaction indices. According to
the 2005 Four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist
Division of TNS Automotive, the automobile ownership experience or customer
ownership experience has declined in all areas compared to 2004. The study is one of the largest
syndicated automotive studies in India, representing the responses of more than 7,000 new car
buyers. The comprehensive study covers over 50 models with customer evaluations taken in the
key areas of sales satisfaction, product quality, vehicle performance and design, after-sales
service, brand image, and cost-of-ownership. The TCS index score provides a measure of
satisfaction and loyalty a given model enjoys with its customers. According to TNS Automotive,
the decline is predominantly for older, small and entry mid-size car models. The ageing of these
models seems to be posing a stiffer challenge for manufacturers to sustain past
Performance levels at a time when customer expectations are rising sharply.
 BIBLIOGRAPHY

BOOK
Strategic Management and Business Policy by
 Thomas L. Wheelen
 J. David Hunger
 Krish Rangarajan

NEWS PAPERS

THE ECONOMIC TIMES

THE TIMES OF INDIA

MAGAZINES

BUSINESS INDIA
INDIA TODAY

INTERNET WEBSITES

www.google.com
www.marutisuzuki.com