Automotive industry Essay

Maruti Suzuki India Limited generally famous as Maruti is an ancillary company of the Japanese automaker Suzuki Motor Corporation. It has a foodstuff share of 44.9% of the Indian rider political machine market as of March 2011. Maruti 800 and Alto are their entry level cars. Ritz, A-Star, Swift, Wagon-R, Estilo are their hatch back models. DZire & SX4 are Marutis Sedan clique models. Eeco and Ertiga are Marutis C segment class. Grand Vitara is their Sports Utility Vehicle which is precedely imported from Japan.Maruti is the 1st company in India to turn out and cheat more than a million cars. Maruti Udyog Limited is renamed as Maruti Suzuki India Ltd on 17th September 2007. Maruti companies head quarter is in Nelson Mandela Road, NewDelhi.The company was customary in 1989 however the actual production commenced in 1983 with their Maruti 800. Till 2004 Maruti 800 was the Indias large(p)st selling packed in car ever, since it was launched in 1983. More than a million units of this car confine been sold worldwide so far. Maruti imports diesel engines for all their diesel cars from Fiat motors.Marutis manufacturing plants are located at two amenities Gurgoan and Manesar sulphur of Delhi. Gurgoan plants installed capacity is of 9, 00,000 units per annum and Manesar plant with a capacity of 5, 00,000 units per year and a diesel plant with an annual capacity of 1, 00,000 engines and transmissions.Maruti has 933 dealerships crossways 666 towns and cities in all states and union territories of India with 2,946 gain stations (inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,395 towns and cities all over India. It has 30 Express Service Stations on 30 National Highways crossways 1,314 cities in India. Service is a major source of proceeds to the company. Most of the work stations help many stranded vehicles on the highways by direct across their repair man to the vehicle.1.2 Definition Of MarketingAccording to American Marketing Associ ation (AMA) Board of Directors, Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have prize of customers, clients, partners, and ball club at large.Dr. Philip Kotler defines, marketing as the science and art of exploring, creating, and delivering valuate to satisfy the needs of a signal market at a profit. Marketing identifies unrealised needs and desires. It defines measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and run.1.3 client comprehend prizeCustomer perceived Value (CPV) is the distinction between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternatives.1.3.1 Customer Perceived Value of Maruti Suzuki with credit to Holbrook Model Typology of Customer ValueHolbrook (19 94 p. 27) asserted Value is an interactive relativistic preference experience. Based on this Holbrook proposed a typology of consumer value having tierce polar dimensionsExtrinsic/Intrinsic The consumer perceives value in using or owning a product or services as a fashion to and end versus an end in itself. Self-oriented/Other-oriented The consumer perceives value for the consumers own benefit as against the benefit of others. Active/Reactive The customer perceives value through direct use of an object as against apprehending, appreciating or responding to an object.These three dimensions give rise to eight types of customer valueExtrinsicIntrinsicSelf-orientedActiveEfficiency mulctReactiveExcellenceAestheticsOther-orientedActiveStatusEthicsReactiveEsteemSpiritualityThus for a company like Maruti it would be rattling apt to use this model considering that the products that Maruti Suzuki has to offer fits in quite easily in different dimensions as presented in the typology.1.3.2 Customer Perceived Value of Maruti Suzuki with reference to Monroe ModelMonroe (1990, p. 46) observes, Buyers perceptions of value represent a trade-off between the quality or benefits they perceive in the product relative to the sacrifice they perceived by paying the priceMonroe has expressed the concept of customer perceived value as the ratio between perceived benefits and perceived sacrificeCustomer Perceived Value= Perceived Benefits________________Perceived SacrificeAccording to Monroe perceived benefits has a positive influence on consumers perception of product value at prototypical, and after on it may influence consumers purchase intentions.In contrast, perceived sacrifice first has a negative influence on consumers perception of product value, and ulterior on it may influence consumers purchase intentions.PerceivedBenefitsHere the benefits include customers desired value, e.g., quality (Monroe, 1990). Sacrifices, on the other hand, include monetary (price) (Dodds, et al ., 1991) and non-monetary (time, effort) (Cronin, et al., 2000) considerations. Therefore, value includes three key factors (1) quality, (2) price, and (3) convenience (Lemon, et al., 2001), where convenience is the time and effort expended by the customers (Cronin, et al., 2000)In context to Maruti, the customers desired value is the quality of the car and services rendered there off.Whereas the sacrifices include the price of the car, maintenance cost, etc.1.3.3 Customer Perceived Value of Maruti with reference to woodruffs ModelA Value-Hierarchy ModelWoodruff (1997) proposed that Customer value is a customers perceived preference for and evaluation of those product evaluates, attribute performances and consequences arising from use that facilities achieving the customer goals and purposes in use situations. (p146) thence the customer value hierarchy suggests that customers conceive of desired value in a means-end way.Basically it can be known as a brass to run businesses thro ughout the country by understanding customers goal and satisfaction over it (Lister, n.d.)Desired Customer Customer Satisfaction Value with Received ValueCustomers Goals andPurposesDesired Consequences in Use SituationsDesired Product Attributes and Attribute PreferencesStarting at the bottom of the hierarchy, customers start to figure about products as bundles of specific attributes and attribute performances.While purchasing and using a product they form desire or preferences for a certain attribute based on their ability to facilitate achieving desired consequence experiences.Looking down the hierarchy from the top, customers use goals and preferences to attach importance to consequences.Also the customers use situation plays a critical role in evaluation as well as in desires.Maruti Suzuki, being an automobile manufacturing company faces a lot of competition. Thus such a model would be very essential for their company.1.3.4 Consumer perceived value of Maruti with reference to Z eithaml ModelMeans-End ModelAn adaptation of a model first proposed by Dodds and Monroe (1985), Zeithaml with her study in 1988 about price, quality and value towards consumers defined this into the concept of Means-End model.(Source Means-End Model, Zeithaml, 1988)2. Value proposal of marriageDefinition of Value PropositionA business or marketing speech that summarizes why a customer should buy an item for consumption or use a service. This rehearsal should prove apotential buyer that one meticulous product or service will add more value or disclose solve a problem than other like offerings.Companies use this statement to target customers who will benefit most from using the companys products, and this helps claim an economic moat. The ideal value proposition is concise and appeals to the customers strongest decision-making drivers. Companies pay a high price when customers lose slight of the companys value proposition.2.1 Value Proposition of Maruti SuzukiWay of Life is the Va lue Proposition of Maruti Suzuki. As India is a country where comfort is vital while travelling, Maruti has always been the first option. As mileage is a big criterion with cars for Indians, Suzuki proves to be better than quite a few other names in cars as its vehicles have a higher mileage for example Swift gives 22km/ltr while if you compare a Honda City gives around 12-13 km/litre.2.2 perpetration & Vision of Maruti SuzukiThe Company MissionTo make available a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, twain in domestic and export markets.The Company VisionWe must be an internationally competitive company in terms of our products and services. We must retain our leadership in India and should also aspire to be among the global players.Their focus is onBuilding a continuously improving organization adaptable to quick changesProviding value and satisfaction to the customerAligning and fully involving all our empl oyees, suppliers and dealers to face competition Maximising Shareholders value2.3 Target MarketDefinition of target market A specific group of consumers at which a company aims its products and services.Maruti Suzuki has adopted a focused approach and wisely created segments within a large market to promote their cars. Lower Income Group- Maruti 800, AltoMiddle Income Group- Wagon-R, Swift, Swift DZire, RitzHigh Income Group- Maruti Suzuki Kizashi, Suzuki Grand VitaraSuzuki Grand Vitara would obviously have no takers amongst the lower income group.2.4 Market attractive featureMarket attractiveness is a term that describes the profit possibilities available in a given market or industry. The more attractive a market is, the higher the potential profits.Companies in the process of considering entires into new industries or markets conduct a number of analyses to determine whether or not such a touch on would be good for the business. One such analysis is a market attractiveness analy sis, conducted to find out if entering a particular market or industry would be profitable and how much the company could potentially earn.The automobile industry is a huge and diversified market. It can be divided into different segments each satisfying different needs of the customers. These different segments can be classified as SUVs, Sedans, Hatchbacks, C segments etc.This gives an automobile company ample make out of opportunities. Maruti Suzukiis prevalent in all of these segments and is considered as one of the premium brands in all of these segments.In this very market other than the different segments of automobiles also is the service rendered by the company to the customers.Thus the market is as attractive as one would hope for giving Maruti Suzuki a chance to make the most of it.