Economics Project

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Economics Project
Product Profile and Segmentation of Maruti
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Background
Maruti Udyog Limited (MUL) was established in
February 1981, though the actual production
commenced in 1983. Through 2004, Maruti has
produced over 5 Million vehicles. Marutis are
sold in India and various several other
countries, depending upon export orders. Cars
similar to Marutis (but not manufactured by
Maruti Udyog) are sold by Suzuki in Pakistan and
other South Asian countries.
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Maruti Suzuki is one of India's leading
automobile manufacturers and the market leader in
the car segment, both in terms of volume of
vehicles sold and revenue earned. Until recently,
18.28 of the company was owned by the Indian
government, and 54.2 by Suzuki of Japan. The
Indian government held an initial public offering
of 25 of the company in June 2003. As of May 10,
2007, Govt. of India sold its complete share to
Indian financial institutions. With this, Govt.
of India no longer has stake in Maruti Udyog.
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Services Offered

• Sales of automobiles
• Authorized Service Stations
• Maruti Insurance
• Maruti Finance
• Maruti TrueValue
• N2N Fleet Management
• Accessories
• Maruti Driving School
• Maruti Exports

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Maruti Suzuki Products
City Car 800  Zen Estilo  Alto  Wagon-R
Subcompact Swift
Compact SX4
SUV Gypsy  Grand Vitara
MPV Omni  Versa
Historic models Zen  1000  Baleno  Esteem
Upcoming models Splash Aerio
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Maruti 800
Launched in 1983
Due to the large number of Maruti 800s sold in
the Indian market, the term "Maruti" is commonly
used to refer to this compact car model. Till
recently the term "Maruti", in popular Indian
culture, was associated to the Maruti 800 model.
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• Maruti 800 is the most popular entry segment car
  in India.
• With the introduction of Maruti 800 in 1980s,
  Maruti Udyog Limited broke the hegemony of
  Ambassador and Fiat in the Indian car market.
• Maruti 800 has great fuel efficiency and very
  low maintenance cost.
• Easy to drive in the heavy traffic of big
  cities.
• Basic safety features such as collapsible
  steering columns, laminated windshields and high
  mount stop lamp.

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Prices Rs. 1,80,000 to Rs 2,20,000 depending on
metallic and non-metallic or ac and non-ac
models Target Market With Maruti 800 the target
market of Maruti were the people who had
two-wheelers and were looking for an alternative
family vehicle. Maruti catered to their needs
with Maruti 800. Here the Maruti targeted the
huge middle class of India.
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Zen Estilo
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• Zen Estilo is new version of Maruti Zen. The
  Estilo, named after the Spanish word for "style"
  is a combination of Japanese simplicity and
  European sophistication.
• Zen Estilo is roomier than the original Zen and
  sports a bigger engine (1061 cc). Zen Estilo is
  taller and it offers more boot space and superior
  air conditioning.
• Zen Estilo comes with plush, premium interiors.
  It has a two-tone color theme and its seats have
  been redesigned for providing better support and
  sport fresh new upholstery to match the dual tone
  color theme of the interior.

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Price Rs 3,18,000 to Rs. 4,00,000 Depending on
various models with and without certain
specifications such as ABS etc Target market
The market targeted by Maruti with its Zen Estilo
is the customers who can pay little more for
style and comfort. Zen Estilo specially targets
the young women of India.
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Alto
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• Maruti Alto is one of the hottest selling
  compact cars in the Indian market.
• Alto uses Maruti 800's proven and highly
  fuel-efficient, 3-pot motor with a four-valve
  head and its electronic tachometer results in
  unmatched fuel efficiency. It is the most
  fuel-efficient car in its segment.
• Maruti Alto is quite a safe car to drive on
  Indian roads. Its high tensile steel side door
  beams guard against front, rear and side
  collision impact.
• Alto's powerful AC is ideal for Indian climate.

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Price Rs 2,30,000 to Rs. 2,90,000 Depending on
metallic and non-metallic or ac and non-ac
models Target Market The Maruti Alto has
targeted the people who do not mind paying for
looking different then the Maruti 800. It targets
the customers previously targeted by Maruti 800.
So in a way it competes with Maruti 800.
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Wagon R
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• Wagon R comes with1061cc MPFI low friction
  engine that delivers an awesome 64bhp_at_6200rpm
  power for smoother pick-up and faster
  acceleration.
• A 32 bit on-board computer with diagnostic
  capability monitors the air-fuel ratio for
  optimum fuel efficiency.
• Dual Distributor-less Digital Ignition (DDLI)
  ensures an instant, hassle-free start every time
  and a more efficient power distribution.
• Wagon R's tall body, high seats and wide opening
  doors make it easy to get in and get out.

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Price Rs 3,54,000 to Rs. 4,50,000 Depending on
various models with and without certain
specifications such as ABS etc Target market
The Maruti Wagon-R has been created to target the
market which the Maruti was loosing to Santro and
to some extent Matiz. It targets the people who
want a sleek car with its own style statement.
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Swift
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• Maruti Swift brings a feeling of freshness to
  the compact car segment. Its appealing looks,
  spacious interiors, and a whole lot of
  user-friendly features at once catch your
  attention.
• Maruti Suzuki Swift comes with a number of
  safety features such as collapsible steering
  column, front seatbelt pre-tensioners with load
  limiters, and energy absorbing trim all around.
• Active safety technologies include dual front
  airbags, and antilock braking system together
  with electronic brake-force-distribution.

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Price Rs 4,00,000 to Rs. 5,04,000 Depending on
various models with and without certain
specifications such as ABS etc as well as the
diesel variants Target market The Maruti
Suzuki Swift has been targeted to cater the needs
of middle class people as it provides perfect
combination of style, comfort, performance and
security. It targets all ages of humans with its
features and drop dead looks.
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SX4
Men are Back
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• A perfect combination of style, performance,
  safety and comfort.
• Efficient 1.6-litre M-Series engine delivering
  impressive 102 BHP of power
• Features like independent suspension system, Anti
  Lock Braking System (ABS), matching color
  bumpers, electrically adjustable outside mirrors,
  fine quality fabric seats, power windows, rear
  seat center armrest and adjustable head rests in
  the front and rear seats.
• Having the price tag of between Rs.6-6.5 Lacs,
  Maruti Suzuki SX4 will provide tough competition
  to its rivalry models like Ford Fiesta, Hyundai
  Verna, Honda City, and Indigo XL

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Price Rs 6,00,000 to Rs. 6,50,000 Depending on
various models with and without certain
specifications such as ABS etc Target market
The target segment of Maruti SX4 is young people
who do not mind spending few extra bucks for
style ,comfort and performance. Ironically it is
one of the cheapest car in its segment.
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Gypsy
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• Maruti Gypsy is a four-wheel drive vehicle that
  is excellent for the rugged terrain
• It comes equipped with 1300 cc petrol
  engine-lighter than a diesel engine-resulting in
  a higher power to weight ratio. This ensures
  better control, more power and greater
  responsiveness
• Maruti Gypsy has higher ground clearance of 210
  mm to ensure better off-road handling, while
  driving in hills.
• Gypsy's engine is high on thermal conductivity,
  and heats up quickly even under extremely cold
  conditions. Thus ensuring trouble free start even
  in the midst of snow.

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Price Rs 4,97,000 to Rs. 5,20,000 Depending on
various models giving option of hard and soft top
and metallic or non-metallic colors Target
market The Maruti Gypsy targets the people who
do not mind going of the road to have fun. These
powerful SUVs were made for adventures people.
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Grand Vitara
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• With 127KW _at_ 6000 rpm, the 2.7-litre V6 engine
  empowers the Grand Vitara to climb up steep
  terrain, zip effortlessly down the highway. And
  with plenty of torque, this high-performance car
  can take on snowy and muddy track with ease.
• Its four-wheel drive gives Vitara the power to
  go places.
• In the event of a collision, the crumple zones
  act like buffers, deforming in a progressive
  manner to absorb impact energy. The doors are
  equipped with side impact beams to take care of
  side impact. Inside, the occupants are protected
  by dual airbags that help cushion occupant in a
  frontal collision

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Price Rs 18,00,000 to Rs. 19,20,000 Depending
on various models of 4 wheel drive and other
useful features like side impact air-bags
etc Target market The Maruti Suzuki Grand
Vitara targets the people who do not mind empting
their pockets for making a statement. This
powerful SUV is made for adventures people who do
not compromise comfort and luxury for price.
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Omni
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• Maruti Omni is a perfect family car. It has
  enough space for your lifestyle needs-whether you
  are going on a picnic, weekend outing, or for a
  game of golf.
• Omni provides ample headroom and legroom to
  ensure a comfortable and enjoyable journey.
• Omni comes equipped with safety features like
  front safety rod, side impact door beams,
  thermoplastic bumpers, booster assisted disc
  brakes, ELR type front and rear seat belts and
  laminated windshield.
• Maruti Omni has multi-point fuel injected engine
  that helps to lower emissions and achieve greater
  fuel efficiency.

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Price Rs 1,98,000 to Rs. 2,34,000 Depending on
various models which include options like LPG as
fuel, the cargo version, the 8 seater
etc Target market The Maruti Omni was
initially targeting big families with its 8
seater option but now it has started, with its
cargo and LPG versions, targeting people with
small businesses who need to transport a small
amount of goods regularly.
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Versa
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• Maruti Versa is a multi utility vehicle and
  combines features of both the car and van.
• Versa has a most powerful and responsive 16
  valve, 1298 cc engine generating 82 bhp at 6000
  rpm, and controlled by a 16-bit Engine Management
  System. Versa has a higher Power to Weight ratio
  than any MUV, resulting in superior pick up and
  acceleration
• Its flexi seating option enables you to adjust
  space as per your requirement.
• The Twin AC is 2 independent cooling units, one
  in front and one at the rear, for uniform all
  round cooling.

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Price Rs 3,62,000 to Rs. 4,74,000 Depending on
various models with and without certain
specifications such as ABS etc Target market
The Maruti Versa has targeted the families with
6-8 members who love to hang out together and
enjoy a nice long ride. It was a nice combination
of style and performance with a low price.
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Authorised service stations
Maruti is one of the companies in India which has
unparalleled service network. To ensure the
vehicles sold by them are serviced properly
Maruti had 1545 listed Authorized service
stations and 30 Express Service Stations on 30
highways across India Service is a major revenue
generator of the company. Most of the service
stations are managed on franchise basis, where
Maruti trains the local staff. Other automobile
companies have not been able to match this
benchmark set by Maruti. The Express Service
stations help many stranded vehicles on the
highways by sending across their repair man to
the vehicle.
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Maruti Insurance
Launched in 2002 Maruti provides vehicle
insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New
India Assurance and Royal Sundaram. The service
was set up the company with the inception of two
subsidiaries Maruti Insurance Distributors
Services Pvt. Ltd and Maruti Insurance Brokers
Pvt. Limited. This service started as a benefit
or value addition to customers and was able to
ramp up easily. By December 2005 they were able
to sell more than two million insurance policies
since its inception.
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Maruti Finance
To promote its bottom line growth, Maruti
launched Maruti Finance in January 2002. Prior to
the start of this service Maruti had started two
joint ventures Citicorp Maruti and Maruti
Countrywide with Citi Group and GE Countrywide to
assist its client in securing loan. Maruti tied
up with ABN Amro, HDFC, ICICI, Standard
Chartered, and Sundaram to start this venture
including its strategic partners in car finance.
The company entered into a strategic partnership
with SBI in March 2003. Since then, Maruti has
sold over 12,000 vehicles through SBI-Maruti
Finance. It is currently available in 166 cities
across India.
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Maruti Finance marks the coming together of the
biggest players in the car finance business. They
are the benchmarks in quality and efficiency.
Combined with Maruti volumes and networked
dealerships, this will enable Maruti Finance to
offer superior service and competitive rates in
the marketplace".
Jagdish Khattar, Managing director of Maruti
Udyog Limited in a press conference announcing
the launch of Maruti Finance on January 7, 2002
Maruti claims that its finance program offers
most competitive interest rates to its customers,
which are lower by 0.25 to 0.5 from the market
rates
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Maruti True Value is a service offered by Maruti
Udyog to its customers. It is a market place for
used Maruti Vehicles. One can buy, sell or
exchange used Maruti vehicles with the help of
this service in India
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N2N Fleet Management
N2N is the short form of End to End Fleet
Management and provides lease and fleet
management solution to corporates. Its impressive
list of clients who have signed up of this
service include Gas Authority of India Ltd,
DuPont, Reckitt Benckiser, Sona Steering,
Doordarshan, Singer India, National Stock
Exchange and Transworld. This fleet management
service include end-to-end solutions across the
vehicle's life, which includes Leasing,
Maintenance, Convenience services and
Remarketing.
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Accessories
Many of the auto component companies other than
Maruti Udyog started to offer components and
accessories that were compatible. This caused a
serious threat and loss of revenue to Maruti.
Maruti started a new initiative under the brand
name Maruti Genuine Accessories to offer
accessories like alloy wheels, body cover,
carpets, door visors, fog lamps, stereo systems,
seat covers and other car care products. These
products are sold through dealer outlets and
authorized service stations throughout India.
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Maruti Driving School
As part of its corporate social responsibility
Maruti Udyog launched the Maruti Driving School
in Delhi. Later the services were extended to
other cities of India as well. These schools are
modeled on international standards, where
learners go through classroom and practical
sessions. Many international practices like road
behavior and attitudes are also taught in these
schools. Before driving actual vehicles
participants are trained on simulators
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"We are very concerned about mounting deaths on
Indian roads. These can be brought down if
government, industry and the voluntary sector
work together in an integrated manner. But we
felt that Maruti should first do something in
this regard and hence this initiative of Maruti
Driving Schools.
Jagdish Khattar, at the launch ceremony of
Maruti Driving School, Bangalore
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Exports
Maruti Suzuki has helped India emerge as the
fourth largest exporter of automobiles in
Asia. Maruti Exports Limited is the subsidiary of
Maruti Udyog Limited with its major focus on
exports and it does not operate in the domestic
Indian market. The first commercial consignment
of 480 cars were sent to Hungary. By sending a
consignment of 571 cars to the same country
Maruti crossed the benchmark of 300,000 cars.
Since its inception export was one of the aspects
government was keen to encourage.
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Every political party expected Maruti to earn
foreign currency. Angola, Benin, Djibouti,
Ethiopia, Europe, Kenya, Morocco, Sri Lanka,
Uganda, Chile, Guatemala, Costa Rica and El
Salvador are some of the markets served by Maruti
Exports