Market Expansion Strategies of Maruti Udyog


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Case Details:

Case Code : MKTG113
Case Length : 21 Pages
Period : 1999 - 2005
Pub Date : 2006
Teaching Note : Available
Organization : Maruti Udyog
Industry : Automobiles
Countries : India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Maruti Udyog Limited

MUL's M-800 was ideally suitable for Indian customers as it was reasonably priced, fuel efficient and was sleek and easy to drive when compared to the models then available. With the success of its M-800, MUL soon replaced Hindustan Motors as the leader in the passenger car market...

Government of India - Suzuki tussle

In August 1997, there was a major difference of opinion between the GoI and SMC regarding the appointment of the Managing Director (MD) for MUL. SMC did not support the appointment of R. S. S. L. N. Bhaskarudu (Bhaskarudu), holding that he was incompetent to hold the post...

Decline in market share

There was a gradual decline in the market share of MUL over the years from 1999 to 2004. This happened even though MUL had slashed prices of certain models on a couple of occasions...

Maruti Strikes Back

Launch of new variants and models

Despite analysts predicting that the M-800, the bread and butter model of MUL, would be phased out, the company asserted that it would take necessary steps to maintain its leadership position. MUL had three compact car models -- Alto, WagonR, and Zen -- competing with Hyundai Santro, Tata Indica, and Fiat Palio...

Increasing dealer profitability

During 2003 and 2004, MUL visualized and implemented a strategy for its dealers to increase their profitability levels in view of increased competition. According to the strategy, the 300-odd dealers of the company were asked to strengthen their manpower, increase the salaries of their sales agents, and offer them better incentives...

Promotional offers

Faced with stiff competition and declining market shares, MUL focused its promotions strategy on targeting two-wheeler owners...

'Change Your Life' campaign

In 2003, MUL launched novel offers like "Change Your Life" campaign and also offered vehicle insurance 'for Rupee One only', to attract customers...

Television campaigns

In 2003, MUL came out with a toy car advertisement that became popular for its simplicity and straightforward message. The advertisement depicted a child playing with a toy car. When reprimanded by his father the child replies, 'Kya karoon papa petrol khatam hi nahin hota' (What should I do? The petrol never finishes)...

Excerpts Contd...>>



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