A BRAND DOSSIER – MARUTI SUZUKI SWIFT
PROJECT SUBMITTED TO: PROF. SRINIVAS GOVINDRAJAN
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE
COUSE
Submitted By:
Rachit Agarwal
Krishnakant Goenka
Shivam Gupta
Sneha Rungta
[B13045]
[B13028]
[B13055]
[B13057]
Part One – Literature Review
Brand Dossier on Maruti Suzuki Swift
PHASE ONE
LITERATURE REVIEW
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Part One – Literature Review
Brand Dossier on Maruti Suzuki Swift
TABLE OF CONTENTS
Title
Page No.
1.0.
A Preamble on Maruti Suzuki……………………………………....04
2.0.
The Brand – An Introduction…………………………………….…05
3.0.
Brand History & Evolution…………………………………………06
4.0.
Brand Positioning………………………………………………..….07
5.0.
Brand Repositioning………………………………………………...08
6.0.
Advertising……………………………………………………….....10
7.0.
Sales Promotion……...…………………………………………......10
8.0.
Brand Segmentation…………………………………………….….10
9.0.
Product Analysis & Competition…………..………………...……10
10.0. Competition Tackling Strategy…………………..………………..12
11.0. Distribution Strategy………………………………………………14
12.0. Future Directions…………………………………………………..14
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Part One – Literature Review
Brand Dossier on Maruti Suzuki Swift
1.0.
A PREAMBLE ON MARUTI SUZUKI
Maruti Udyog Limited (MUL) was established in February 1981, though the
actual production commenced in 1983 with the Maruti 800, which at the time
was the only modern car available in India. The only competitors during that
time for this car in India was - the Hindustan Ambassador and Premier Padmini,
they were both around 25 years out of date at that point of time. Through 2004,
Maruti Suzuki has produced over 5 Million vehicles.
The company has domestic sales of 730,000 cars annually. Its manufacturing
facilities are located at two places Gurgaon and Manesar in Haryana, south of
New Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of
900,000 units per annum. The Manesar facilities, launched in February 2007
comprise a vehicle assembly plant with a capacity of 550,000 units per year and
a Diesel Engine plant with an annual capacity of 100,000 engines and
transmissions. Manesar and Gurgaon facilities have a combined capability to
produce over 14,50,000 units annually.
About 35% of all cars sold in India are made by Maruti. The 54.2% of
company’s share is owned by the Japanese multinational company Suzuki
Motor Corporation. The rest is owned by public and financial institutions. It is
listed on the Bombay Stock Exchange and National Stock Exchange of India.
During 2007 and 2008, Maruti Suzuki sold 764,842 cars in India. In all, over six
million Maruti Suzuki cars are on Indian roads since the first car was rolled out
on 14 December 1983. Maruti Suzuki offers 15 models, Maruti 800, Alto,
Maruti Alto 800, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni,
Eeco, Gypsy, Grand Vitara, Kizashi and the newly launched Ertiga. Swift, Swift
DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi
are imported from Japan as completely built units (CBU), remaining all models
are manufactured in Maruti Suzuki's Gurgaon Plant. The company is believed to
be moving towards introduction of a new version of Maruti 800 by November
2012, which will be more fuel efficient, though slightly costlier than Alto and
existing Maruti 800. The Suzuki Motor Corporation, Maruti's main stakeholder,
is a global leader in mini and compact cars for three decades. Suzuki’s strategy
is to utillise light-weight, compact engines with stronger power, fuel-efficiency
and performance capabilities. Nearly 75,000 people are employed directly by
Maruti Suzuki and its partners. It has been rated first in customer satisfaction
among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.
Maruti Suzuki will be introducing new 800 cc model by Diwali in 2012.The
model is supposed to be fuel efficient, hence more expensive.
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PRAXIS BUSINESS SCHOOL
Part One – Literature Review
Brand Dossier on Maruti Suzuki Swift
2.0.
THE BRAND – AN INTRODUCTION
In 2004 Maruti Suzuki launched its new car “ Maruti Suzuki Swift ”. Swift is a
hatchback model of Maruti Suzuki, which is a copy of an American Model Car
with more boot space. Earlier Maruti was using FIAT engine in its car but now
Maruti has launched its own manufactured K-series engine. In swift its using
1.2L K-series engine which is running successfully. Swift is Available in Petrol
and Diesel variants.
Specification :
Engine Capacity - 1,298cc (diesel) 1,197cc (petrol)
Number of Cylinders - 4 (16valve)
Maximum Power - 75ps @ 4,000rpm
Maximum Torque - 190 Nm @ 2,000rpm
Fuel Tank Capacity - 43 litres
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Brand Dossier on Maruti Suzuki Swift
Part One – Literature Review
3.0 BRAND HISTORY & SUBSEQUENT EVOLUTION
The Maruti Suzuki Swift was launched in India in May 2005 with a 1.3-litre
petrol engine.
Later, in early 2007, Maruti introduced the Swift with a Fiat-sourced 1.3 L
DDiS engine.
In 2010, due to the new BS IV emission norms, Maruti replaced the 1.3 L
petrol engine with a 1.2 L K-series engine.
In August 2011, Maruti launched the all-new third-generation Swift, with 1.2 L
K-series petrol and 1.3 L DDiS engines.
Hence Maruti Suzuki Swift design is derived from the previous Suzuki Swift
which was already in foreign market. Maruti Suzuki launched limited edition
Swift RS. It is available on the VXi and VDi variants of the hatchback.
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Brand Dossier on Maruti Suzuki Swift
Part One – Literature Review
4.0 BRAND POSITIONING
Competing with the other cars of Maruti, Maruti Swift is gradually making its
position in the Indian market of hatchback cars.
Most fuel efficient car: In Swift Diesel and Petrol variant DDiS and K-Series
engine is used that delivers completely new levels of power , refinement,
response and fuel efficiency.
Environment friendly: The combination of a 16 valve cylinder head and a 5
Step Multi Injection System gives efficient combustion leading to cleaner
emissions.
Lowest maintenance cost: It is the only engine with a Chain Drive Timing
System, which is maintenance-free for the entire life of the engine. Trust worthy
car .
Features: Air conditioner, Power door locks, Body Color Bumper, Rear
Defogger, Cup Holder, Tinted window glass, Power windows, Power steering,
Roof antenna, Wheel Covers.
Color: Mid night black, Arctic white, Silky silver, Blazing Red, Orange,
Glistening Grey.
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Brand Dossier on Maruti Suzuki Swift
Part One – Literature Review
5.0 BRAND REPOSITIONING
Features:Interior: Driving posture is excellent as the driver’s seat has a height adjuster
and a slide range that ensures driving comfort. The material and textures used
for the dashboard and the car interiors are of good leather finish. The climate
control system has an easily-operable large circular dial. The currently located
instrumentation display includes a tachometer, speedometer and digital
odometer as well as a clearly visible digital clock. Air conditioner, Power door
locks, Rear Defogger, Cup Holder, Power windows, Power steering.
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Brand Dossier on Maruti Suzuki Swift
Part One – Literature Review
Exterior: Turn indicators integrated into outside rear view mirrors, automatic
climate control system, new front and rear bumper with chrome finish grill.
New design for wheel covers/ 15” alloy wheels for top variants centre console
with dashboard integrated music system, round shaped fog lights, peeled back
tail lamps, bigger and better looking head lamps, Roof antenna, Tinted window
glass.
Color: Mid night black, Arctic white, Silky silver, Blazing Red, Torque Blue,
Glistening Grey.
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Part One – Literature Review
Brand Dossier on Maruti Suzuki Swift
6.0 ADVERTISING
The company did their adverting through T.V. Advertisements, advertising
through radio, and other alternative options like T.V. shows like” India’s Got
Talent” and through place advertising - Bill Boards.
7.0 SALES PROMOTION
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Product Warranties.
Premium Gifts.
Trade Source.
There are 2628 workshops that provide customers with maintenance in
1220 cities across India.
8.0 SEGMENTATION
There are six types of variants available in the brand Maruti Swift through
which the sales person can segment the car according to the requirement of the
customer.
 Maruti Suzuki Swift LXi - Rs 4.79 lakhs
 Maruti Suzuki Swift VXi - Rs 5.25 lakhs
 Maruti Suzuki Swift ZXi - Rs 6.12 lakhs
 Maruti Suzuki Swift LDi - Rs 5.95 lakhs
 Maruti Suzuki Swift VDi - Rs 6.45 lakhs
 Maruti Suzuki Swift ZDi - Rs 7.27 lakhs
9.0
PRODUCT ANALYSIS & COMPETITON
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Strengths:
Distributor network with brand loyalty
Japan technology and service distribution
After sales service
Cost-effective
Low maintenance
Low price
High fuel Efficiency
Knowledge of the market
Strong partnership
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Part One – Literature Review
Brand Dossier on Maruti Suzuki Swift
Weakness:
 Low resale value
 Low engine capacity
 Government bureaucrats have made MUL unaccustomed to international
standards and keen competitors
 Relatively new in the diesel car segment
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Opportunities:
High end car segments
Overseas Market
Improve Handling
Add extra features to small segment cars
Attracting youth
Threats:
 Global players
 Worker’s strike
 High competition
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Part One – Literature Review
Brand Dossier on Maruti Suzuki Swift
10.0 COMPETITORS TACKLING STRATEGY
Hyundai i10 is a main competitor of Suzuki Swift with best fuel
efficiency. Best service network and having Best resale value.
Hyundai i10 comes into two variants i.e., petrol and diesel versions.
The price of Hyundai i10 is also economical, starts from 3,45,000 to
5,25,000 approx. Fiat Grande Punto- Fiat Grande Punto is again a
major competitor of Maruti Suzuki in India. Punto is quite spacious
and broad as compared to Swift and i10.
It has two variants i.e., petrol and diesel. The price range of petrol
version starts from 4,35,565 to 6,08,294 and diesel version starts from
5,19,000 to 6,90,000 . Ford Figo – Ford Figo is a newly launched car
with Dura Tec 1.2 (petrol) and 1.4 Dura Torque 68bhp (diesel) motor which
is extremely responsive at low speeds and highly economical which suit the city
driving conditions , is again a tough competitor of swift . Ford Figo Diesel price
start from 4.20 to 5 lakhs approx. and Ford Figo petrol prices starts from 3.5 to
3.80 lakhs.
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Brand Dossier on Maruti Suzuki Swift
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Part One – Literature Review
PRAXIS BUSINESS SCHOOL
Brand Dossier on Maruti Suzuki Swift
Part One – Literature Review
11.0 DISTRIBUTION STRATEGY
Maruti Suzuki is one of the companies in India which has a huge distribution
network. Today it has 802 dealerships across 555 towns and cities in India. To
ensure proper after sales service Maruti Suzuki has 2,740 workshops (including
dealer workshops and Maruti Authorised Service Stations) in 1,335 towns and
cities. It has 30 Express Service Stations on 30 National Highways across 1,314
cities in India.
12.0 FUTURE DIRECTIONS
Maruti Suzuki has a strategy for the future:
 Maruti Suzuki which controls slightly over half of the domestic car
market in the country has said that it would design small cars suitable for
the Indian conditions as a strategy to beat the stiff competition with the
entry of global auto makers.
 It would be launching compact S2 cars which will be the new modified
version of the brand Maruti Swift with more features to meet the needs
of the customers locally.
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