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 Contd...

'2599' offer

In 2004, MUL introduced the '2599' offer under which a consumer could buy an M-800 by paying an EMI of Rs 2,599 only, for a period of seven years. The down payment was fixed at Rs 40,000. MUL entered into an agreement with the State Bank of India (SBI), the largest bank in India, to promote this scheme...

'Teacher Plus' scheme

To further penetrate into the market, MUL continued to focus its efforts on the rural markets and specific target groups. In 2004, it introduced the 'Teacher plus' scheme, in a tie-up with SBI, aimed at teachers who were interested in buying a new car...

Maruti 'True Value'

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...


The company's change in strategy and emphasis on developing effective marketing communications began to yield results. In the J.D. Power Asia Pacific 2004 India APEAL study, WagonR and Zen were ranked first and third in the premium compact segment; Esteem was picked as the best entry level car in the mid-size category.

MUL also topped the J.D. Power Asia Pacific 2005 India Sales Satisfaction Index in terms of customer satisfaction with the new vehicle sales process.

As per the J.D. Power Asia Pacific 2005 India Customer Satisfaction study , MUL ranked highest in customer satisfaction with after-sales service for the sixth consecutive year.

"Maruti's consistent performance in the study over the past several years has resulted in a steady increase in the percentage of its customers who say they intend to remain loyal to the brand," said Mohit Arora, India director, J.D. Power Asia Pacific...


Exhibit I: Performance of Passenger Vehicle Industry and MUL: April 2003 to March 2005
Exhibit II: Classification of Passenger Cars*
Exhibit III: Impact of the Union Budget on the Indian Automobile Industry
Exhibit IV: Buying Behavior of Indian Car Buyers
Exhibit V: MUL's Major Competitors in India
Exhibit VI: The Discount Phenomenon
Exhibit VII: Price List of MUL's Car Models
Exhibit VIII: Milestones at MUL

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