Product Management at Maruti Udyog Limited

Details

Case Code : CLMM018
Publication date : 2005
Subject : Marketing Management
Industry : Automobiles
Length : 04 Pages
Price : Rs. 100

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Key words:

Maruti Udyog Limited (MUL), Suzuki Motor Company, Government of India (GoI), Premier Automobiles Ltd (PAL) and Hindustan Motors (HM), Maruti Esteem, Maruti Zen, Maruti 800, Indian Automobile Market, Passenger Car Market, Supplier Base, Small Car Segment, Daewoo, Matiz, Hyundai, Santro, Tata Engineering, Tata Indica, Mid-Size, Luxury Cars, Fuel Economy, Indian Consumer, Wagon R, Alto, B Segment, Niche, Indigo

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet provides an overview of Maruti Udyog Limited's (MUL) product mix strategy since its inception to early 2000's. The caselet describes the product mix adopted by the company during 1990's. It examines the changing competitive environment in the Indian automobile industry during late 1990's especially in the small car segment where MUL has a strong presence. This segment has seen the launch of three models Matiz (Daewoo), Santro (Hyundai), and Indica (Tata Engineering). Finally, it discusses MUL's response to the increased competition.

Issues:    » Product management and new product development    » Importance of understanding competitive environment    » Analyzing product mix    » Indian automobile market Introduction Maruti Udyog Limited (MUL), one of the leading passenger car manufacturers in India, was established in Feb 1981 to develop a small car that meets the need for a personal mode of transport.

After thoroughly studying seven major automobile players in the world, the Government of India (GoI) selected the Suzuki Motor Company (now Suzuki Motor Corporation of Japan) as a strategic partner.

Apart from being reckoned as the leader in the small car segment, Suzuki's offer to transfer the latest technology and management practices to MUL encouraged GoI to choose Suzuki. In October 1982, the GoI signed a licence and a Joint Venture agreement with Suzuki Motor Company. This gave Suzuki 26% share of MUL's equity...

Questions for Discussion:

1. What are the various factors that led to the success of the Maruti 800 (M800)?

2. Why did a majority of the new entrants choose to enter India by targeting the B segment car market?

3. What are the factors that led to the launch of Alto by Maruti? What is the role of Alto in the product mix of Maruti?