Case Study on Maruti Suzuki

Introduction:

Maruti's history can be traced back to the 1970s, when the Indian government decided to develop an affordable small car, named the 'people's car.' The car would target the middle class in India. In 1971, Maruti Limited was set up. However, in 1978, the company was liquidated. In the early 1980s, the small car project was brought back to life by the government.

Since the late 1980s, Maruti had been the market leader in the passenger car industry in India. However, after the liberalization of the Indian economy in 1991, the Indian passenger car industry became extremely competitive. From the mid 1990s, foreign automobile companies started entering the Indian passenger car market. Maruti started losing market share as its competitors launched new models that proved very popular with Indian buyers. Between the financial years 1997-98 and 1999-2000, Maruti's market share declined from 83.1 percent to 60.8 percent.

In an effort to fulfill its target of selling one million vehicles in the domestic market by the fiscal 2011-12, Maruti aimed to generate sales of 0.25 million cars annually from rural India. In May 2009, the company announced that it would increase its rural outlets from 231 to 450 over the following two years.

Maruti was founded in 1981. The company has been the market leader in the passenger car industry in India. The liberalization of the Indian economy in 1991 allowed the entry of foreign automobile companies in the Indian passenger car market from the mid 1990s. To prevent the erosion of its market share by competitors, the company started a restructuring exercise in 2001. Along with restructuring, Maruti needs a new marketing strategy to help maintain its position as market leader.

As Maruti launched a K-series engine which was a response to Hyundai launched I10 with High Average and pick up.

Questions:

-          Explain the growth strategies of Maruti over the years.

-          What Advertising strategy must be adopted by maruti to uniquely position its brand.