Strategic Marketing Of Maruti Suzuki Marketing Essay

Strategic Marketing Of Maruti Suzuki Marketing EssayPlanning to plan includes developing answer to the questions and making the inevitable decisions to the initial questions of the any actual prep bedness process. It is critic bothy important not to rush to the planning process. With reveal clarifying the polar expectation held by tribe in the organization related to plan.The first step in planning to plan is to hasten certain that there is organizational commitment to the planning process. The organizations key scaters is in particular the chief executive officer (CEO) or executive director, who are view the planning process as important and are leadership to invest clock and effort behind the planning process of the organization, without that kind of obvious commitment strategic planning process can not be successful. (Leonard David Goodstein, 1993)Strategic crinkle exemplarThis modeling involves the organizations initial attempt to spell out in some detail with the p aths by which the organizations mission is to be accomplished. In this phase of the modeling process, the planning team is asked to future scenarios and it is also asked to identify the steps necessary fro achieving those scenarios, who go away responsible for those step and when those steps can be accomplished.Moreover, strategic employment modeling is not an extrapolation of the organization is doing now. This models that are developed should reflect the determine and the overall mission which was created on the earlier phases of the planning process. (Leonard David Goodstein, 1993)1(c) basic Frame fashion of the organizationI am going to explain the 7 S list work as followsThis 7-S frame work developed by the McKinsey. This frame work was originally developed by deep approximateing and to a greater extent b drivewayly about effectively organizing a beau monde. Its concept related on dodging implementation as a matter of structure and outline. These seven elements is con junction with a polar of separate elements. theatrical single- entertaind functiond surveysdodgeStructureSystemsSkills provideStyleThe seven S elements divided in two parts, are called hard and soft elements. Hard or veridical elements are strategy, structure and systems.Strategy refers to plan of action to light upon a particular goal or objectives, such as related on certain products and markets and allocating resources. Strategy is the direction and backdrop of an organization over the long term period.Structure it is refers to the organizational structure, hierarchy and co-ordination including division and activities and integration of deputes. A structure provides a convenient way of organizing several(prenominal) related variables as a single unit.Systems are the primary and secondary processes that the organization employees to get things done, for instant manufacturing system supply planning order pickings process etc. systems thinking offers you a powerful peeled p erspective and a set of tools that you can use to address the most stubborn problems in your eachday life and work.Diagram of basic frame work develop strategy (Steven, Wouter, Steve, 2003)Soft elements are style, staff, skills and grappled values.Style refers to the unwritten yet tangible evidence of how management really sets priorities and spends its time. It is a symbolic appearance betwixt bosses and workers. Style is a refection of your speaking and thinking habits.Staff The staff is comprised of the people in an organization, who work for the organization and the employees and their general capabilities.Skills To get paid what you are worth, know your disruptive skills by Whitney Jhonson. When selling yourself in the talent marketplace, it can be all too light(a) too easy to cogitate on the strengths that are required of the job in question. Skills are organizational capabilities that are independent of individuals.Share value called super ordinate goals when the model was first developed. It is proof of existence of the company. Share value is represents their own present company situation.1(d) strategic Marketing Models there are plenty of marketing models I found. I would homogeneous to describe among three of them.1. BenchmarkingBenchmarking is the systematic comparison of organization processes and instruction executions in order to create new improve processes. Benchmarking involves management identifying the best firms in their industry in which organization evaluate various aspects of their processes in relation to best companys processes. There are tetrad general types.Internal benchmarking is the process of within an organization.Functional the process of benchmarking within the broader range of the company.Generic benchmarking comparing operations between unrelated industries.Competitive benchmarking performance and operations with direct competitors.When to use itThere are much has been written on the benchmarking process. Most variations on the basic elements of the methodology are the results of including situational characteristics factors practical issues that rig out in certain industries in between benchmarking partners and analysts. Benchmarking methodology identifies other industries that have same processes, for instance if one were interested to improving hand offs in dependence treatment he or she would try to identify other fields that may also have hand off challenges.Benchmarking entail the following steps. hold back the scope.Select the benchmark partner.Determine measures, units and data collection method.Collect the different dataAnalyze the data and discrepancies to get facts behind the numbers.Analysis and discuss implications fit in to company goals.Make an action plan with procedures.Monitor on benchmark progress. (Steven, Wouter, Steve, 2003)Maruti Suzuki also apply benchmarking plan on new Zen Estilo sports motorcar. Maruti has come with a refreshed version of Zen Estilos sport s edition. It is not much difference with original car , Estilo sports the new MotoGP graphic, sports decal on door panels and full wheels cover on both the wheel. This car also gets electronic ORVM and integrated. By applying, benchmarking can not only provide comparative data that can trigger the need for improvement, that it highlight new improvement opportunities and get good solutions to problems. (http//www.gaadi.com/cars/blog/benchmarking-for-zen-estilo, 2010)Final analysis of benchmarkingBenchmarking is not easy for apply in the organization. All to often benchmarking is carried out by semi-committed managers, without the use of pre determined measures and without the proper tools for analysis and presentation. Most of benchmarking projects may not get good results.Benchmarking is never ending measure continuously in order to get up to date result and company can get lots of new ideas from the benchmarking performance. (Steven, Wouter, Steve, 2003)2 marketing alloyMarketi ng mix method gives priority to the marketing mix consisting of product, promotion, price and place (distribution).This elements also known as 4Ps.ProductPricePromotionTarget Market layClassical Marketing MixAn element creating an effective marketing strategic is the choice of target market. A target market consists of a group of effectiveness nodes with similarity characteristics (e.g. it would be similar demand and unavoidably or processing) that company has chosen to serve. Although the creation of enjoyment among a particular group of potential customers involves is to scores of decision. The objective is to combine the unanimous of market needs as well as company meet their profit.Product strategyProduct is anything that is capable of satisfying customer needs and wants. Customer needs may value, represents, delivery, status, risk, reduction and many much(prenominal) that is all key customer requirements. In the product there are four stages like introduction, growth, maturity, and decline.Growth at this stage company sale the more product and get good profit. Apart from this the demand of product will also increase so customer perches repeat the product. Profit may decline to next stage.Maturity maturity is the stage that gross sales reach at pick point the survivors battle for market share by product improvements, advertising, promotion offer, price cutting and discount. So the result is a company sells more products but profit margins low.Decline sales and profit fall during the decline stage as new technology or change in the consumer task work for reduce the demand of the product. Product and promotional evolution budget may be down and supplier seeks to increase profit margins.Promotion strategyThis strategy is related with decision which focuses on the methods of communication. Key methods including personal selling, door to door, publicity, direct marketing, advertise, exhibition and many more. Promotion strategy is in five stages like identify target audience, set communication objective, create message, select promotion mix and set promotion budge. Sales staff play important role in word of mouth and public relations.Pricing strategyPricing is the chief(prenominal) element of the marketing mix because it is only one way that right off imparts profits. The price is the amount a customers pay for the product. In the price of the porduct include of design, develop and manufacture products, transport and distribution. There is three strategic objectives that affect to the determine decision are build, bold and harvest.PlacePlace represents the location where product can be purchased. It is determined by number of factors including material be, product identify, share market and materials cost. (Egal colin, 1998)3 customer relationship management toolsCustomer relationship management (CRM) is a process which company use for understand their customers groups and respond disruptive on at times and instantly-to sh ifting customer desires. This method allows firms to collect and manage the customer data and arrange on the bases of that information. CRM also provide needs and wants as well as behaviors and allow them to modify products targeted customers segments.This strategy method uses for collect market research on customers at in real time, generate more reliable sales forecasts, improve customers retention and relation and feed data on customer preference and problems related on product designers. The main methodology of CRM is by defining strategic pain point in the customer relationship cycle. (Darrell, 2000)Task 2There are number of strategic marketing option in Maruti Suzuki but I will discuss three of them.Patronage and Loyalty StrategyIn Marketing practice, most alleged(prenominal) customer retention programs that is only focus on behavioral outcomes, such as repeated patronage. Customer loyalty is viewed as the strength of the relationship between an individuals relative and repea t patronage. Maruti udyog limited maintain relationship with customer, so company reduces their original price of the car. Only one travel company in India which is provides number of car service center at different place. According to the companys MD, our customers rated us the best in India in both sales satisfaction and service satisfaction in the survey held JD power. Maruti Suzuki has now the leadership in customer satisfaction for the past ten consecutive years. The main advantage of the strategy is that company attracts more customers for purchase new car. confederacy provides low rang of the car thats way company get lees profit margin.Strategy on International market extensionCompany is exports in Poland, Switzerland, Netherlands, Finland and many more countries. Maruti Suzuki cars ply on the road of these countries and they are soon becoming the fastest selling in those land. As per the financial data Maruti export 147,575 vehicles in 2010. This is the highest number exp ort by the company and translates to growth of 28.5% over last financial year. Company grew 111% in export sales primarily to Western Europe, because of company introduce new fuel efficient car A Star. A company export, entry-level across the globe to over 120 countries and focus has been to identify new market. Every coin has two sides, company can expand their task at international market and customers know about the pock value, on the other hand, main disadvantage is it can spend much time to think abroad culture, system to start business and it is not achieve all of this things. In addition, lack of experience in foreign markets. (www.marutisuzuki.com, 2010)Strategy low cost segmentMaruti Suzuki main strategy is to provide good car with low cost. In India, medium people group stay, so company knows what is requirement of this countrys people. Though, company is nerve-racking to approach this strategy as low cost car. Maruti launch lower-ranking car with different range in th e Indian market as well abroad. Every car value between 250,000 to 450,000 its easy to purchase by medium worth people. Cost leadership in the market due to efficient value chain is the main strength of the company. On the other side, the biggest threat to Maruti is Globalization. With increase in globalization and world being a common market place every automobile company is leading in the small car segment. Latest example, TATA launch Neno car which worth is only one lake.2(b) Key Stakeholders of MARUTIMaruti has number of stakeholders groups in the organization, which are as follows.Employees an employee is any person hired by an employer to do particular job. In this employees include directors, manager, supplier, and worker. Company should be responsible for wages, job satisfaction, security, trade union and condition.Shareholders a stockholder is an individual or organization owing invests in company. Shareholders have a legal claim on a percentage of the companys earnings and assets. If company goes to red at the time shareholder may loss their entire value. (www.investorglossary.com)Suppliers company should be give payment on time and consistent order. Supplier should be knowledge of how maintain the relationship with the customers.2 (c) suppliers can participate in the development of an organization strategy.As a mention above, suppliers have contacts of different customer so company can know what the needs of customer are after word it may fulfill that wants. As well supplier should knowledge of how to behave with the customer and what the strategy for attract more customer to buy particular things. Maruti Suzuki is one of the company in India which have no equal sales and service network. As per the company data currently has 800 plus dealership across more than 500 cities in India. Service is major(ip) revenue of the automobile company. So, company could provide better service as well on time by different suppliers. This supplier strategy can att ract more customers to purchase car. (www.marutisuzuki.com, 2010)2 (d) Strategy and implementation from employees at all levelsThe implementation of strategy is key element of success business. Maruti Suzuki is very concise about employees strategy.Employees play vital role to become successful an organization. When company wants to introduce new strategy at that time company should be involve in every important decision. The implementation of a business strategy, company need specific arsenal of skill necessary. If company wants really success in the business so it should be achieave the employess fulfils like pension, security, good remuneration, children education, job satisfaction. Once employee satisfied with the all requirement after word they will fully support towards the new strategy. wherefore company can achieve their goal with easy.Task 3Laymans language definitionCreating a Vision statement is articulating your dreams and hopes for an organization. It does tell directi on of the business planning and let your imagination go and achieve your dream.Mission statement can guide in bad and good time to the company and it help to make good decisions making for the companys goals.A strategic objective is making decision on allocating its resources to pursue this strategy. Strategic planning includes various techniques like SWOT analysis, oath analysis and STEER analysis.Book definition3(b) Maruti Suzuki vision, mission, objectivesVision is the leader in the Indian automobile industry, creating customer delight and shareholders wealth a pride for IndiaThe company wants to create good image towards the customer and to attract shareholder also. Maruti Company believes in Customer is the king of the market. So, Company is very concise about the heavy(p) good units and service.Taking forwards its commitment to road Safety Maruti Suzuki has adopted a National Road Safety MissionTo fulfill the companys mission, Train 500,000 people in unhazardous driving acr oss India in the next 3 years. In addition, Maruti Suzuki will continue to support to government and industry in their efforts for road safety.Core values is we believe our core values drive us in every Endeavour3(c) important of Culture and ethical values for development of its vision, mission and strategic objective.Culture is the way your organization operates, its customs, attitude, etiquette etc. culture is to teach how to relate to other human beings, how to relate nature and how to relate to time. In organization, when worker work in group at the time face the basic relationship dilemmas. (Paul, 2000)Ethics is about public rules and regulation and that moral are personal, it ethics and morality and ethical and moral can be use interchangeably. Ethics has to do with what my feelings tell me is right or wrong. Ethics is roles of right behavior (Paul, 2000)Maruti Suzuki is very concern about the culture and ethics towards employee and customer Companys vision is We believe our c ore and values drive us every Endeavour. Company is to trying reach their vision statement to provide different activity like run driving school at free of cost and teach safe drive.Company design to give road safety to fulfill the mission by corporate social responsibility program utilizing existing resource and a nation reach, partnership with stakeholders, use of business skills to benefit society, in addition to making a financial contribution. (www.marutisuzuki.com, 2010)Every individual has unique personal values and every origination has its own set of values, rules and organizational ethical culture.3(d) Core competencies and one critical factor of Maruti SuzukiCustomer acquisition is a term used analyze the system and methodologies to manage customer prospects and inquires, it is worked by different marketing techniques. It can be connect between customer relationships and advertise management. By different advertise, company try to attract new customer and aware of the pro duct. To approach this customer acquisition, companies apply two type of marketing, direct and mass marketing. (Darrell, 2000)Brand value of the company is critical success factor for achievement vision, mission and objectives. Maruti Suzuki is fames In India by their brand value. Every one knows about the company and its feature in automobile market. So its enough to explain to launch the new product in the market.Task 4response to recent changes in the current business and economic climateYes, Maruti Suzuki introduce K-series engine in the market, it is run by gas. So we can say that environment pollution will reduce by this type of car. This type of strategy boosts their business in international market. Apart from this company start work with ICICI in insurance sector. So company will provide good insure of the car as well person insurance. Because of this recent changes India has increase their GDP rate.4(b) effectiveness in the environmentYes, I think company introduced new sc heme to attract customer which is the forever yours extended warranty program to approach this program company give better resale value of vehicle and the proper Assurance.This program effect on reduce the road accident and customer get proper compensation against the loss.(C) Three major operating(a) area of Maruti SuzukiMarketingThis is important functional area of Maruti Suzuki. Marketing is the simple process of winning customers for product and services. It can be approach by different marketing strategy. Maruti focus on rural market, plants to double outlets. The companys vision core values are we believe our core values drive us in every Endeavour they have earn reputation from the customers and their employees. Maruti launch new WagonR with K Series engine. It is more powerful and has higher fuel efficiency than other cars,FinanceThis is another major functional area which, Maruti Suzuki finances marks coming together of the largest players in the automobile finance busine ss. They are believed in the benchmarks in quality as well as efficiency. Maruti volumes and networked dealerships with combined they will offer Maruti finances superior service and competitive rates in the marketplace.InsuranceThis is the major function of Maruti which can protect to the customers by giving insurance. Maruti launch this area in 2002 with the help of National Insurance Company, New India Assurance, Bajaj Allianz and Royal Sundaram. According to the 2005 root word company were able to sell more than two million insurance policies. (http//www.gaadi.com/cars/blog/benchmarking-for-zen-estilo, 2010)4(d) providing one function area for the developmentAs per above I mention three function area I would like to introduce marketing function area. Maruti Suzuki car is very fames in the Indian market because of small car with small amount. Maruti launch K-seris Wegnar to compete with TATA Neno car. Maruti brand value is enough in the market although company give right blend of product quality, design, features, costs and prices. Overall, all of that reason Maruti compete with other automobile company in the market.Task5