Maruti 800 Marketing Project

Topics: Suzuki, Maruti Suzuki, Automobile industry in India Pages: 18 (6696 words) Published: August 16, 2011

Submitted to:Submitted By:
Prof. P. BharadwajHitesh Babbar 2010079
Jhanvi Thakkar 2010086
Kanupriya Kohli 2010090
Nirmal Modh 2010099
Kiran Karkera 2010093
Topic for the study:
Maruti 800 Model car of the MUL company.
Justification and Relevance:
* Maruti 800 was a revolution of sorts in the 4-wheeler area in India. * It was the first small car to be launched in India.
* It basically put India on wheels.
* The strategies used by MUL from time to time to maintain/increase the sales of Maruti 800 were exemplary. * It was the leader in market sales for nearly 20 years.

All these points make for a good case-study.

Company (MUL) Introduction:
MUL was a joint venture created in February 1981 between Japan’s Suzuki Motor Company and the Indian Government when the latter decided to produce small, economical cars for the masses. The intention from the beginning was to produce a ‘people’s car’. To get the project off the ground MUL took over the assets of the erstwhile Maruti Ltd., which was set up in 1971 and closed in 1978. It was the fag-end of 1983, in the cold winter of North India, when one Harpal Singh of New Delhi was handed the keys to a small, never-seen-before-in-India, hatchback by the then Prime Minister, the late Indira Gandhi. What in any other circumstances would have been just an ordinary car launch turned out to be the start of the automobile revolution in India.

Product (Maruti 800) Background:
On December 14, 1983, MUL launched the first Maruti vehicle – the Maruti 800. The first model was the SS80, a 796cc hatchback car priced at Rs. 47,500. Subsequently, in spite of price hikes, the car remained within the reach of the Indian middle class and became a runaway success. Available in vibrant colours when India’s passenger car population comprised mainly Ambassadors and Fiats in black and white, M800 gave Indians the first taste of global quality and reliability. In the 1980s, the Maruti 800 (M800) was India’s first ‘people’s car’. It caught the fancy of the middle class. Maruti Suzuki has never looked back since. In fact, in 2004, MUL will mark its 21st year of leadership in the Indian car market. The M800, first manufactured in 1983, has sold over 2.1 million units. Even though competition predicts that the ‘A’ segment is dying, the M800 continues to sell an average 12,000 units per month. The Maruti 800 may be based on 1980s technology, but it remains very popular as an entry-level model in India. Its obituary has been written before, but the 800 has defied predictions of its demise. But changes to the regulatory environment in India could finally mean the end of the road for the 800.

The past: Limited choices better left alone
India's protected market meant that until the early eighties Indians had essentially three model choices in terms of automobiles: the Morris Oxford derived Hindustan Ambassador, the Fiat 1100 derived Premier Padmini and the Standard Herald derived Gazel. With all three products obsolete, quality construction more of an afterthought and attributes like power, safety and comfort being last on a manufacturer's to-do-list, the Indian automobile industry was going through what might be termed its anthracite period in history. The company Maruti Udyog was conceived by the Indian government in 1981 as a means of providing affordable personal transportation to Indians. Named after Hanuman, the name of the God of Wind in Hindu mythology, Maruti was the brainchild of the late Sanjay Gandhi, son of the then Prime Minister Indira Gandhi. After toying with the idea of a joint venture with Volkswagen, Renault, Daihatsu and some other majors, Suzuki was short-listed because of the Japanese major's expertise in small cars. The Maruti 800 based on the European Alto IV (SS80 in export markets) was launched in December 1983 in a four-door, two-box...

References: * Philp Kotler
* Prof. Bharadwaj’s Slides
* Wikipedia
* Google
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