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Project on maruti suzuki distribution channel
- 1. Introduction Maruti Suzuki India Limited is a publicly listed automaker in India. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. Its manufacturing plant, located some 25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a capability to produce about half a million3 Free Power point Templates Page Maruti Suzuki is one of the India’s leading automobile manufacturers and the market leader in the car segment. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The company annually exports more than 50,000cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800 till 2004 was the Templates largest selling 4 Free Power point India’s Page compact car ever since it was launched in 1983. Products Maruti Suzuki Swift. Maruti Suzuki Dzire. Maruti Suzuki Baleno. Maruti Suzuki Vitara Brezza. Maruti Suzuki Alto 800. Maruti Suzuki Ertiga.
- 2. Maruti Suzuki Wagon R Maruti Suzuki Celerio. Maruti Suzuki s-cross Maruti Suzuki ciaz Maruti Suzuki Alto K10 Maruti Suzuki Ignis Maruti Suzuki Eeco Maruti Suzuki omni Maruti Suzuki celerio-X Maruti Suzuki gypsy Distribution channels 1. Maruti Suzuki Arena 2. Nexa 3. True value 4. Commercial 1. Maruti Suzuki Arena The new showrooms, christened Maruti Suzuki ARENA, will sport modern looks and offer a warm, friendly and comfortable environment to the customers. Leveraging the power of digital technology Maruti Suzuki ARENA promises to serve and delight customers in several ways. With Maruti Suzuki ARENA in place, the Company will have four distinct retail channels: Maruti Suzuki ARENA, NEXA, Commercial and True Value, addressing needs of all customers. Maruti Suzuki ARENA connotes a place where people come together and experience something exciting.
- 3. Digital integration is a key differentiator at Maruti Suzuki ARENA. Customers can now experience the convenience of booking their cars or even personalizing through an all- new website. This is poised to strongly connect with the young and do-it-yourself generation of customers and delight them. This experience travels seamlessly to the showroom through the advanced navigation portal. 2. Nexa Nexa dealerships are developed to lure customers looking to buy premium cars, as these would offer them a plusher buying experience. The aim of Nexa dealerships is to maintain a premium feel and offer the customers a more personal experience. Exclusive dealerships that retail only the premium offerings from Maruti Suzuki such as the S-Cross and Baleno. Future products could include the Ignis and Ciaz facelift Fully trained ‘relationship managers’ that cater all the needs of the customers. The showrooms are equipped with iPads and Apple TVs in order to visualise every aspect of the cars on sale. Smartphone app to track service history, book servicing appointments, emergency support, accessory purchase, etc. Black and White monochromatic colour theme for NEXA dealerships Dedicated delivery area inside the showroom. The customer drives his/her new car right out of the showroom. Dealerships will also play your favourite music at the time of delivery
- 4. 3. True value Maruti Suzuki True Value is the first major automobile OEM to enter India’s used car market in 2001, Maruti Suzuki True Value is the pre-owned cars arm of Maruti Suzuki that offers buying, selling and exchange of certified pre-owned cars for customers. Maruti Suzuki True Value also provides services like Finance, insurance, as well as accessories, through a countrywide network spanning 1,132 outlets across 880 cities. 4. Commercials Making its entry into the light commercial vehicle segment, Maruti Suzuki has launched the Super Carry LCV with prices starting at ₹ 4.01 lakh (ex-showroom, Ludhiana). Maruti's first ever LCV in recent times, the Super Carry marks the automaker's beginning into the commercial vehicle space and has introduced new dedicated dealerships for retailing the LCV across the country and will carry a new corporate identity. The first three dealerships have been opened in Ludhiana, Ahmadabad and Kolkata respectively, while sales are set to commence in August this year. Maruti is offering the Super Carry in two colours - Superior White and Superior Silver. Advantages of channels Advantages of arena 1. User friendly new website. Unique online experience with DO-it-yourself features. 2. Young, trendy and vibrant new look. A new corporate identity with dynamic façade.
- 5. 3. Advance navigation portal. Seamless integration of online and offline registration. 4. Inclusive product vision screens. Explore car using the interactive touch screens 5. Unique personalisation at your finger tips. Experiment with accessories with the help of stylist. 6. Consultation zone a dedicated café and sitting area for smart conversations. Advantages of nexa 1. Nexa dealership launched for showcasing and selling its premium range of cars such as s cross and baleno 2. The nexa was launched to provide better experience to those who opt for premium vehicles, compared to other maruti showrooms which sell the company’s compact 3. The company is also planning to launch exclusive nexa service outlets for its premium customers who own the nexa range of cars. Advantages of true value 1. As a part of Maruti Suzuki's transformation, a network of independent True Value outlets will be set up across the country, with a larger display area for a variety of pre-owned cars of Maruti Suzuki. 2. These outlets will be digitally integrated through a portal so that customers can access details of all the cars available at True Value outlets nation-wide. This will help customers to make their choice and visit the relevant True Value outlet for a test drive. 3. To ensure quality and reliability, pre-owned Maruti Suzuki cars will be carefully selected, refurbished at Maruti Suzuki
- 6. workshops and offered to customers with warranty and free services. Overall channel strategy Distribution is an important marketing mix. In earlier days the consumers used to book for a car and wait for more than a year to actually buy it. Also the concept of Show rooms was non- existent. Even worse thing was the state of the after sales service. With an objective to change this scenario & to offer better service to customers, Maruti took initiative. To gain competitive advantage, Maruti Suzuki developed a unique distribution network. Presently the company has a sales network of 802 centres in 555 towns and cities, and provides service support to customers at 2740 workshops in over 1335 towns and cities. The basic objective behind establishing the vast distribution network was to reach the customers even in remote areas and deliver the products of the company. The company has formed the Dealer territories and the concept of competition amongst these dealers has been brought about. Periodically corporate image campaigns in all dealership are carried out. In 2003, to increase the competition the company implemented a strategy for its dealers to increase their profitability levels. Special awards were sometimes given by company for sales of special categories. Maruti Suzuki had given an opportunity to dealers to make more profits from various avenues like used car finance and insurance services. In 2001, Maruti started an initiative known as “Non Stop Maruti Express Highway‘. As a part of this initiative Maruti developed 255 customer service outlets along with 21 highway routes by 2001-02. Also with an intention to provide fast service in less time Maruti had offered Express Service Facility. In the year 2008, Maruti had near
- 7. about 2,500 rural dealer sales executives, among the total 15,000 dealer sales executives. How is Maruti Suzuki’s channel stategy different from competitors Maruti Suzuki selling its more expensive models through a separate network as buyers, even first-timers, opts increasingly for larger cars example- nexa. Maruti is trying to change the customer perception by offering NEXA premium showrooms in which only premium Maruti cars will be showcased. The decision to create a separate sales network may have been prompted by consumers choosing other brands over Maruti when buying bigger cars as India’s largest car maker has been traditionally associated with small cars since introducing the Maruti 800 in 1983. New channel for a different category of products. There will be new sets of products and customers and the needs of these customers are different Have the channel witnessed a substantial change? Yes maruti Suzuki witnessed substantial change ‘After the first 50 showrooms were in place and fully operational, we saw the Nexa bet paying off. People were appreciating the [value of the] showrooms. It wasn’t a typical Maruti Suzuki experience Gained footfalls’ The Nexa chain of retail outlets was launched in 2015.The financials have shown a remarkable improvement with 17%
- 8. CAGR in revenue between FY15-FY17 compared with 7% CAGR from FY13-FY15. Margins have also risen from less than 14% in FY15 to more than 15% in FY17. The share price of Maruti appreciated about 40%, and in the last two years it has given about 100% returns.