A cultural approach to marketing strategy: Maruti Udyog Limited: the pricing dilemma

Docs en anglais | 5 pages | 27-06-2008 | Format : | Note : Non noté |

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Résumé

Maruti Udyog Limited (MUL), a joint venture between Indian Government and Suzuki Motor Corporation of Japan is India's largest automobile company in 2005. It operates in the passenger vehicle market, manufacturing affordable fuel efficient cars for the Indian masses. Its "flagship product", Maruti 800 small sized car, has been its best selling car in India since decades until 2005 when it has been overshot by Maruti Alto, a model which could dangerously cannibalize the traditional M800 that used to be the only car in the entry-level segment in Indian automobile industry.
Hence, this ECCH case study subtitled "the pricing dilemma" highlights the new challenges that Maruti's pricing, marketing and overall strategy will have to face to remain coherent vis-à-vis market needs and its mission, if they want to remain leader in the Indian passenger car industry: Which future for the M800? How should Maruti adapt its pricing and marketing strategies to keep a sustainable healthy growth regarding fierce competition?

After exposing a key information concerning Indian automobile industry and MUL positioning on the market, we will analyse the reasons of the thorny pricing issue that MUL is facing today because of the M800-Alto duo, and we will expose the main threats that MAruti is facing in 2005. Eventually, we will propound some recommendations regarding MUL's pricing, marketing and overall strategy for the future.

This reflection has been guided thanks to a Harvard case study.

Table of contents:

I) Context overview: key points to understand the issue

1.1. Car industry in India, Maruti's positioning & Competition overview
1.2. MUL product portfolio

II) Challenges met by MUL and new threats

2.1. M800 pricing strategy to fight competition: cutting cost and price down
2.2. Internal threat: M800-Alto duo, a pricing dilemma
2.3. External threat: growing competition

III) Analysis and strategic recommendations

3.1. Revising the Communication and Advertising strategy
3.2. Jumping on new business opportunities
3.3. M800: "To keep or not to keep?"
3.4. Improve customer relationship management

Conclusion

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