MARUTI SUZUKI TITAN

The marketing plan

2010-2011

About the Auto Industry

The automobiles industry, for many years operated in a seller's market.

Little or no attempt was made to control costs or to offer new products.

Lack of innovation restricted the consumer’s options to the models offered by these companies.

Maruti Suzuki has been the leader of the Indian car market for about two decades. Its manufacturing
plant, located some 25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per
annum, with a capability to produce about half a million vehicles.

Maruti's contribution as the engine of growth of the Indian auto industry, in the generation of the
middle class is widely acknowledged.

The company's service businesses including sale and purchase of pre owned cars (True Value), lease and
fleet management service for corporate (N2N), Maruti Insurance and Maruti Finance are now fully
operational.

Besides providing total mobility solutions to customers in a convenient and transparent manner, have

helped improve economic viability of The company's dealerships .

 History

Maruti Udyog Limited (MUL) was established in Feb 1981, to meet the growing demand of a personal
mode of transport

Suzuki Motor Company was chosen from seven prospective partners worldwide.  

A license and a Joint Venture agreement was signed between Gov. of India and Suzuki Motor Company
(now Suzuki Motor Corporation of Japan) in Oct 1982.

  Competitor

Hyundai Santro 1.1 CRDi

When Hyundai launch the Santro’s replacement in 2007, it will come with the surprise addition of a 1.1
liter common rail diesel. Likely to be the cheapest car on sale powered by a CRDi engine

Hyundai Getz 1.5 CRDi

Not as attractive as the Titan, but more practical, with greater rear seat comfort and more useable
space, Hyundai’s diesel assault continues up the range with its large hatch.

Tata Indica 1.3 Multi jet

Tata will borrow engines from Fiat with, you guessed it, the 1.3 liter Multi jet being the engine of choice.
Thoroughly localized, cheaply assembled and very capable,  
 Product

• Maruti 800
– Specifications  Transmission Type Manual Fuel Type Petrol Seating Capacity5 Gearbox5
Speed Engine Description0.8L 47bhp FC engine Displacement796 ccMileage-City14.6
kmplMileage-Highway18.9 kmpl Maximum Power47@6,200 Maximum
Torque6.32@3,000

– :Rs. 2,37,372 to Rs. 2,88,512

– ALTO

– Specifications   Transmission Type Manual Fuel Type Petrol Seating Capacity4 Gearbox4
Speed Engine Description0.8L 37bhp 4-stroke cycle, water cooled Engine
Displacement796 ccMileage-City15.7 kmplMileage-Highway19.9 kmpl Maximum
Power37.5@5,000 Maximum Torque6@2,500

– Ex-Showroom Price : Rs. 2,02,505 to Rs. 2,33,236

• Zen-estilo
– Specifications   Transmission Type Manual Fuel Type Petrol Seating Capacity5 Gearbox5
Speed Engine Description1.1L 64bhp 32x4 hyper tech engine Displacement1,061
ccMileage-City12.5 kmplMileage-Highway16.9 kmpl Maximum Power64@6,200
Maximum Torque8.5@3,500 .

• ESTEEM
– Specifications   Transmission Type Manual Fuel Type Petrol Seating Capacity5 Gearbox5
Speed Engine Description1.3L 85bhp 4-stroke cycle, all-aluminum water cooled Engine
Displacement1,298 ccMileage-City11.5 kmplMileage-Highway14.5 kmpl Maximum
Power86.18@6,000 Maximum Torque11.21@4,500

– Rs. 4,15,629 to Rs. 4,93,850

• versa
– Specifications   Transmission TypeManual Fuel Type Petrol Seating Capacity5 Gearbox5
Speed Engine Description1.3L 82bhp 4-stroke cycle, all aluminum water cooled Engine
Displacement1,298 ccMileage-City11.0 kmplMileage-Highway13.6 kemps Maximum
Power83.1@6,000 (PS@rpm)Maximum Torque10.4@3,000 (kgm@rpm)

– Ex-Showroom Price : Rs. 3,54,321 to Rs. 4,43,66

• Wagon-R
– Specifications   Transmission Type Manual Fuel Type Petrol Seating Capacity5 Gearbox5
Speed Engine Description1.1L 64bhp 4 cal. In-line, FC engine Engine Displacement1,061
ccMileage-City13.9 kmplMileage-Highway17.3 kemp Maximum Power64@6,200
(PS@rpm)Maximum Torque8.6@3,500 (kgm@rpm)

– Ex-Showroom Price : Rs. 3,21,137 to Rs. 4,49,138

• SWIFT
– Specifications   Transmission Type Manual Fuel Type Petrol Seating Capacity5 Gearbox5
Speed Engine Description1.3L 87bhp AlTec32 engine Engine Displacement1,298
ccMileage-City12.2 kmplMileage-Highway16.1 kmpl Maximum Power88.2@6000
(PS@rpm) Maximum Torque11.5@4,500 (kgm@rpm)

– Ex-Showroom Price : Rs. 3,94,466 to Rs. 4,20,974

• Grand-Vitara
– Specifications   Transmission TypeAutomatic Fuel TypePetrol Seating Capacity5
Gearbox4 Speed Engine Description2.0L 120bhp Series engine w/ Variable Induction &
Drive by Wire technology Engine Displacement1,995 ccMaximum Power121.16@5,500
(PS@rpm)Maximum Torque17.33@3,500 (kgm@rpm)

– Ex-Showroom Price : Rs. 14,80,000 to Rs. 15,28,711

 Promotion

• The advertising is mainly done in the form of different T.V. channels, newspaper, hoardings etc.

• main promotion is done by celebrity endorsement, sportsmen, etc.

• Maintain customer relationship.

• Direct marketing.

Place
Maruti Udyog Limited decides its own distribution channels for selling car.

– They show the permanent location for selling the car.

– They provide many useful inventory, they define the transport facility of the company
for company to market and market to consumers.

• Maruti Suzuki has over 452 dealers and 253 cities in India

• MUMBAI - Showrooms
 Summary

• In March 2011, Maruti will begin selling its low cost car “The Maruti TITAN”.

• The Titan brings the comforts of a car within the reach of thousands of families that previously
could not afford one.

• It is the one of the cheapest car in the world today, with the standard version priced not more
than Rs. 2.5 lac, premium version 3.5

Situation analysis

People need:

• The Low Cost Maintenance Advantage

It is in the economy segment that the affordability of spares is most competitive, and it is here
where Maruti Suzuki shines.

• Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among all models are all
Maruti Suzuki vehicles.

• Technological advantage

Suzuki owner gets the ideal combination of power and performance from their car.
• In 2008 the Financial Times reported: "if ever there were a symbol of India’s ambitions
to become a modern nation, it would surely be, the tiny car with the even tinier price-
tag. A triumph of homegrown engineering, the 2.5 lakh priced Maruti “TITAN”
encapsulates the dream of millions of Indians groping for a shot at urban prosperity.
 Strengths

• Maruti tops customer satisfaction again for sixth year in a row according to the J.D.
Power Asia Pacific 2005 India Customer Satisfaction Index (CSI) Study.

•
The company has also ranked highest in India Sales Satisfaction Study.

• The company's quality systems and practices have been rated as a "benchmark for the
automotive industry world-wide" by A V Belgium, global auditors for International
Organization for Standardization

• Domestic market growth.

• 15-20% annual growth

 Weakness

• No technology research

• Royalty for research to Suzuki in June 2010 476 cr

• As the Steel prices are increasing the cost of raw materials will increase thus the profit
margin will increase.

Opportunities

• Booming market

• 1 lkh car per month

• Other companies lacks economy of scale.

• Importing new technology is controlled by Govt. so there is plenty of untapped market.

•  Only 4% of population have their own vehicle

• FII investing in automobile sector

• Maruti is now gearing up for the diesel version of the Titan which is expected to debut
by October.
 Threats

Heavy Competition :

• Hyundai

• Tata

• A number of new Technology driven players and manufactures are in market.

• The Govt. is reducing support and cutting down the Gas supply quota.

Marketing strategy

• Promotion Tag line

‘Have Fun, Pay Less, get more with Maruti Titan’

• Maruti titan and feel happy in all way with Maruti titan. Maruti titan is safety and you
can travel

• everywhere by Maruti titan with your family or friends with fun, but you just need to
pay all of

• this at lower price –Pay Less & Get More.

• Beside that we can enjoying special fun with Maruti titan, our earth also will feel happy
with

• Maruti titan because Maruti titan also is the environment friendly car.
• Television Advertisement
• Television advertisement is very expensive but this is the most powerful to perform the

• Maruti titan to the public by demonstrating Maruti titan attributes and persuasively
explaining their

• corresponding consumer benefits. By lower advertising budget, we cannot do the TV

• advertisement in whole day, so we just choose the prime time (7pm – 11pm) to place
the

• advertisement. By properly designed and executed TV advertisement can improve brand

equity

• and affect sales and profits.

• Radio Advertisement
• Most of the Indians listen to the radio daily. Now a day have many facilities such as

• MP3, hand phone and so on, is convenience for the people to listen the radio anytime at

• anywhere, This is a cheap and pervasive medium for us to create the brand awareness
by

• repeatedly listen the advertisement and the brand name. Advantages of the radio
advertisement

• are flexibility, quick response and also more effective media for reaching teens.
 • Newspaper and magazines Advertisement
Beside that the radio, most of the Indians also will saw a newspaper everyday. So this is good
market coverage. From here, Maruti titan can get the broad acceptance and good reputation
from Indians. Newspaper advertising is inexpensive.

• Newspapers such as:

• Times of India

• Auto magazines

• Sports magazines

• Auto car

Why Suzuki Titan….

• The desire for small and Compaq cars have always been in demand.

• With many small cars now in the market, the demand for Maruti has never been
affected.

• We have captured the market of small but affordable cars for all segments, according to
a customer:

“ Maruti has always been my priority for cars, and the 800 model served my purpose, now as
it has stopped the production, I’m looking for the new model Maruti Suzuki TITAN”
 • PROFIT/ VOLUME RATIO
It expresses the relationship between contribution & sales.

• BREAK EVEN POINT

It is the point at which total revenue is equal to total cost.

• MOS
MOS is the excess of actual sale of production volume over the Break-even point
 Financial projections

Particulars Rupees lac (3 months)

Advertising 14,82,000
Newspapers (12 incisions) TOI, HT, ET 7,50,000
Railway mini hoardings 15,000
BEST hoardings 12,00,000
Radio 60 incisions one month 30,00,000
T.V 60 incisions one month

TOTAL 64,47,000

Seminars (Sunday) 40,000

Brouchers 200 20,000

Manufacturing cost 3,75,00,000
Average transportation cost 90,00,000

NET TOTAL 5,30,00,700

 • BREAK EVEN POINT (BEP)

• For 2008

• BEP = ( 954.10 / 15.6) = Rs. 6116.02

• For 2007

• BEP = ( 583.5 / 18.17) = Rs. 3211.34

• An increase of 90% from last year, main

• reason behind being decrease in PVR which

has led to an increase in BEP indicating that
the company will now have to sell more in
order to cover at least its fixed cost.

Sales Forecast:
Total units expected to be sold is 25,000.

Break Even Analysis

=Total expenditure/Revenue per unit

=5,300,7000/2,50,000

=2120

So the breakeven can be achieved after 2120 units are sold

 Return on Investments
ROI= 62,50,00000 – 53007000

= 57,46,93000

APPROXIMATELY 108% PROFIT ON AND AGAINST THE INVESTMENT