mabdassignment_sumitra iyengar

8/2/2019 MABDassignment_Sumitra Iyengar

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TASMAC GBPL PROGRAMME

Marketing Analysis for Business Decisions(MABD)

WRITTEN ASSAIGNMENT GBPL

TRIMESTER II (Part Time) June Batch 2011

Submitted by: Sumitra Iyengar11 December 2011

Aim: To Showcase Our Understanding of marketing concepts for two competing brands in

automobile industry and identify the customer segment targeted by the chosen brands by

demographics and socio economic factors. Compare the marketing mix elements of the two

brands, analyze and bring out points of parity and differentiations.


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MABD MID-TERM ASSIGNMENT

Title : Business analysis of the Maruti & Hyundai

Subject : Marketing Analysis for Business Decisions

(MABD)

Level / Trimester : 1/1

Programme : GPBL (Part Time)

Subject Tutor :

Name of Student : Sumitra Iyengar

Students Registration Number :

Date of Submission : 11th

December 2011

Word Count : 2200 words (Excluding tables, figures, cover

page, charts, references & checklist)

Word Limit : 2000 words


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Assignment checklist

Student NameSumitra Iyengar

Registration Number

Date for submission of the Assignment. 11 12 - 2011

The cover page is in the correct format as indicated in the Guidelines

of writing AssignmentsYes

Have done a complete spell check of the assignment Yes

Have done a complete word count for the assignment Yes

Does the table of contents include numbers? Yes

Are the pages numbered correctly? Yes

Are the figures numbered correctly? Yes

Are the tables / charts numbered correctly? Yes

Are the captions for the tables and charts proper? Yes

Are the references / bibliography listed in the assignment? Yes

Are the references cited adequately in the text? Yes

Are the references in the text in the proper format as indicated in the

Guidelines to writing AssignmentsYes

A soft copy of the assignment has been enclosed with the assignment Yes

All material written in this assignment is my own and I have not used any material,

content or information of others claiming them to be mine. Wherever materials have been

used, proper citation has been done in the text. I am fully aware of the rules and regulations

governing the plagiarism applicable to the dissertation and should at any point of time my work

is suspected / investigated and established to have plagiarized some other work. I am aware of

the consequences if such cases are detected and have read the Student Handbook in detail.

Signature of the student Date:

(Sumitra Iyengar)


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Maruti 800 the magnificence of the middle class

Santro Xing a small car with optimized luxury again for the middle class


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Table of contents

1. Goal of the assignment62. An Overview of the Indian Automobile Industry..6

3. Maruti Suzuki India Limited....6 4. Hyundai Motor India Limited..7 5.

SWOT analysis of Maruti Suzuki...7 6. SWOT analysis of Hyundai.8

7. Value proposition of Maruti Suzuki8 8. Value proposition of Hyundai9

9. Market places, spaces & Meta Markets11 10.

Segmentation..11

11.Positioning & Branding.12 12.POPs & PODs12

13.Customer value.13 14.Appendix I-References.14


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1. Goals of this assignmenta. To study the two competing brands of automobile industry in Indiab. Indentify, compare, the benefits, total cost to the customerc. Compare the customer value created by each of the brands

2. An Overview of the Indian Automobile IndustryThe government of India announced economic liberalization in 1991 which resulted in

incredible growth especially is automotive industry. Revolutionized competence & unperturbed

restrictions brought sustained growth. Vigorous economic escalation provided an

unprecedented highway for the expansion of inland as well as global markets.

The industry has encouraged foreign investments global leaders in this arena, exceeding

one million passenger cars alone are sold in India in a year. Indian automobile pioneers such as

Tata Motors, Maruti Suzuki and Mahindra and Mahindra are built their capabilities to compete

& excel in line with global automotive standards.

This is one of the premier industries which encompass all steps of mankind as for as

revenue generation is concerned. The vast spectrum comprises of manufacturers, new & used

car dealers & buyers, financing companies, insurance companies, spare part dealers, service

shops, auto magazines, news papers, websites, TV channels the list goes on.

3. Maruti Suzuki India Limited

This revolutionary auto market leader Maruti Udyog Limited now has a new name

"Maruti Suzuki India Limited". in the new name, "Maruti Suzuki" continues to have the

principal position as the largest manufacturer of passenger cars in India. This is one of the

strongest corporate brands; the name generations has grown up with and features prominently

on the Company's products, services and its sales and service network across the country.

Models offered are Maruti 800, Alto, Alto K10, Omni, Gypsy, Estilo, WagonR, Eeco,

A-Star, Ritz, Swift, SX4, DZire, Grand Vitara n& Kizashi. The service network is spread across

country & the most reliable with 802 centers in 555 cities. Added to this there are 2740

workshops spread over 1335 small cities & towns.


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4. Hyundai Motor India Limited

Hyundai Motor India Limited (HMIL) is the second largest and manufacturer in India..

Currently the company markets more than 30 variants of passenger cars in six segments. Some

popular brands of Hyundai are Santroi10, i20, Getz, Accent, Elantra, Sonata Embera and Tucson.

The total capacity of this company is 600, 000 units per annum. To cater to the ever

growing demands & considering the economic growth of the nation, HLIL has established

with315 dealers & 630 service stations across the country.

5. SWOT analysis of Maruti Suzuki

Strength: A house hold name known for giving a common man a luxury of enjoying the

motoring, the number one strength is the service availability across the nation & the costs of

spares means overall operating economy for the customer is unparallel which comprises of

comparatively good fuel efficiency. This brand enjoys a market share of 47% which makes

viable to add customer value.

Weaknesses: In majority of the segments this brand has average styling & lack luxury feeling.

At the higher segment from sedan to SUV, limited variants are available.

Opportunities: As the principles Suzuki-Japan is preparing to develop a JV with German auto

leader Volkswagen to reach global market, this state of affairs may generate great deal of new-

fangled prospects for Maruti Suzuki.

Threats:. If we compare the data from the year 2010, there is an decline in market share which

accounts for 6%, market share as off today stands at 47%. First time in its history of 25 years,

the market share has plunge below 50% level, this loss seen as linear in nature & is due to

direct competition from other auto makers such as Hyundai, Ford GM.


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6. SWOT analysis of Hyundai

Strength: Hyundai has 300 dealers & 112 sales outlets across the nation& has established itself

as a foremost player in the industry. Hyundai is the biggest car exporter and the second largest

car maker with offering a value and resilient assertion to the clientele & second best sought out

brand. The key offering is affordable luxury added through excellent engineering.

Hyundai has signed MOU with financial institutions such as Bank of India, UCO bank,

Allahabad bank ING & Vijaya bank. This strategy is to facilitate financial services to the

customers.

Weaknesses: As Hyundai offers moderate luxury cars, the key input to produce such cars is theraw materials & supply of finished parts from the suppliers. As the market prices behave it has a

greater impact on the companys financials. This is the number one risk the organization is

facing; the second risk is the foreign exchange rates which affects components import & car

export.

Opportunities: As Hyundai is planning to introduce new cars in each of the segments, it can

position itself to compete with domestic as well as international competition. Indian auto

industry is one of the largest & fastest growing in the globe, India is the 7th

largest passenger

car producer also which accounts to 3.7 million units in the year 2010. The forecast t numbers

are 5 million in 2015 & 9 million by 2020.

Threats: Given the incredible growth & forecasts our country & development of road

infrastructure, the number one threat is to retain the position two in the industry & the new

competition from the new entrants is the particular segments such as Volkswagen & Ford.

Financial options available for the buyer as the wide range of cars availability in the

country is the second largest threat Hyundai has to consider, cheap choices such as Tata Nano

is good example.

7. Value proposition of Maruti Suzuki

These cars have the lowest cost of ownership in comparison any other brands in any

particular segment. The cost of operation is another critical angle where these cars edge out

others. Known for best quality enjoys the reputation of loyalty of customer by centrally

controlling the prices of spares & consumables.


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JD Power APEAL conducted a survey in 2004, which ranked WagonR as #1 is premium

compact car. This study covered 8 critical parameters such as design, performance & layout.

Buying & driving these cars are of great delight, across the nation 307 showrooms in 189 cities

backed-up by 6000 trained sales force, and to add the strong customer care. JD Power CSI

reports that 92% car owners have expressed either they are happy or satisfied during a survey

conducted in the year 2004 that is the result of robust service net work & spares availability

across. Low cost of ownership where Maruti cars edge out all the completion across the

segments, this clearly depicted in the chart below.

8. Value proposition of Hyundai: Hyundai with high quality immense reliability are a cut above

by introducing unrivaled product warranty. The five years extended product warranty

alternatively till the top limit of one lakh kilometers, assures the buyer giving sense of protected

interest for the life time of the car, which covers major mechanical & electrical parts &

assemblies. This incomparable value is excellent motive choose the product from Hyundai.

Passenger Safety is the imperative for unsurpassed quality vehicles through which the

buyer gets an assurance of security while enjoying the motoring. Keeping this in mind Hyundaihas featured unique systems such as Electronic Brake-Force Distribution (EDB), Vehicle Dynamic

Control (VDC) &Anti Braking System (ABS). Such life safety technologies has been an integral

parts of all Hyundai cars. Added to that the programs on crash testing & emergency

performance which have been synonymous with manufacturing these cars guarantee the

buyer.


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Hyundai offers 24X7 breakdown services which exceptional in compare with close

competitors, moreover for electrical & mechanical troubles arising out of accidents support

comes free of cost. The picture below depicts the growth of Hyundai over the years with in the

country as well as exports.


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9. Market places, spaces & Meta markets

6.1 Maruti Suzuki: For the just-ended fiscal year, Maruti Suzuki's total sales increased 25% fromthe previous year to 1.27 million vehicles. Exports fell 6.3% to 138,266 units. The showrooms

across the country in every tier3, 2 & 1 cities with the unmatched service capability, positioned

themselves as very near to every customer. Any car buyer will have to spend the most

minimum time to find the details of each of the models & their features & availability.

6.2 Hyundai: For the just-ended fiscal year, Hyundais total sales increased 7.8% by taking the

total sales to 603, 819 units in comparison with the previous year which was 559880. The

overall growth of domestic sales by 23.1% over 2009. Exports numbers are 247102 units against

270017 units for the previous year. There is negative growth of 8.5%. With their state of the art

& well spread over network of showrooms, and uncompromising customer care supported by

highly committed marketing team, Hyundai has carved a niche for its brand value in the urban

& suburban domestic markets. Looking at the consistency in the export department, the

aggressiveness & appetite to expand their foot print beyond the geography of India must be

commendable.

10. Segmentation: The automobile industry is the undisputed evergreen market in the world.

Hence it has got its own segmentation with respect to Premium, luxury, economy & commercialetc.

10.1 Maruti Suzuki: Maruti Suzuki has wide variety of range of segmentation in the domestic

Indian market. The company presents over 150 variants out of 16 different models. WagonR

adjudged as the family car of the decade, for which the company has made a great haul of

capital investment last year. Maruti Suzuki is known for its economic features stands out in

every segment of the passenger car however the SUV segment demands attention on top

priority.

10.2 Hyundai: Hyundai which has a presence in all the segments of the passenger car, and has

given a special touch of luxury in each of its model. This has given the car maker an edge in the

competition. They wanted to be unique in the mid segment hence the i20, as a hatch back

midsized matchless model stands out of the common multitude.


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11. Positioning & Branding

11.1 Maruti Suzuki: this Company mainly focusing on variety of hatchback cars & targets

middle income & who are first time buyers. These buyers top priority is low cost of ownership

& to just meet the requirement of a simple family. Off late, the company strategy pacing

towards sedans in SEC A.

The latest excitement is Kizazhi which positioned as sports sedan, such venture is first

of its kind for Maruti Suzuki, which is in to SECA category with plush luxury.

Well planned & structured brand building of the company, has made Maruti Suzuki over

all image of economic as well as luxury brand thus an all rounder.

11.2 Hyundai: This Company of course to give tiff competition, has come out with hatch backvariants adding plush interiors & specious design which have this brand a cut above the rest.

Knows for adopting well calculated risks, Hyundai positioned in all segments with models such

Santro, Getz, Accent etc.

The brand building saga of Hyundai is really commendable; the great strengths are

product performance & quality, which has resulted as value for money for the customer.

Hyundai regularly revisits the product life cycle using variants & keeps in line with the prospect

of buyer. Thus be in the minds of the mass, which facilitates the most powerful word of mouth

branding & marketing.

12. POPs & PODs

POPs:

12.1 Maruti Suzuki:

Category POP: Functionality, air conditioning, music system with latest features & security

systems.

Competitive POP: Simple & economic design, cost of spares parts & availability of service

12.2 Hyundai:

Category POP: Functionality, air conditioning, music system with latest features & security

systems.

Competitive POP: Life safety systems, air bags, Powerwindows, plush interiors & exteriors.


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PODs:

12.3 Maruti Suzuki: Simplicity, economics & basic requirement of a family are the key points of

this auto maker. Additionally the after sales service & availability of spares are key

differentiators. Association with industry service partners such as insurance, banks etc is a great

comfort for the customer.

12.4 Hyundai : Luxury, performance are the key contributors for Hyundais success. Life safety

systems & 24x7 customer care service are added feathers the cap, which gives experience of

taken-care throughout the ownership for the product.

13. Customer value

13.1 Maruti Suzuki: Has signed MOUs with number of banks & insurance agencie. Through its

used car resale wing Maruti True value, has built an image of taken care throughout the life

cycle of the product.

13.2 Hyundai: Also has tied up with various financial institutions & insurance companies for the

great comfort for the buyer. 24x7 customer care is the most exceptional feature of the

company.


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14. Appendix I-References

http://www.hyundai.com/in

http://www.marutisuzuki.com

http://www.timesof india.com

http://indianautosblog.com

http://www.carazoo.com
http://www.hyundai.com/inhttp://www.hyundai.com/inhttp://www.marutisuzuki.com/http://www.marutisuzuki.com/http://indianautosblog.com/http://indianautosblog.com/http://www.carazoo.com/http://www.carazoo.com/http://www.carazoo.com/http://indianautosblog.com/http://www.marutisuzuki.com/http://www.hyundai.com/in

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