Decoding Maruti’s Success

Maruti a household name in India.Maruti symbolizes people car in India.From layman to business tycoon everybody recognizes Maruti.Even though Indian government has no stake in the automobile still Suzuki motor corporation has kept the name because of strong brand recall and mindshare that maruti possess .Automobile sector is one of business which depends on  lot of parameters to be successful .I  believe that one of key parameters is volume or variety.Volume is how much cars that automobile is able to manufacture.While variety refers to the different kind of vehicles that a brand can offer.Automobile sector is more of volume driven business.But Maruti Suzuki thought else wise and followed variety than volume.

Let us focus on some of the models that it has launched.You have entry level cars such as Maruti 800,Esteem and Alto while hatchback car segment Ritz,A-Star,Swift,Wagon R and Sedans like Ertiga,Dzire,SX4.Multipurpose vehicles like EECO,Omni etc.Not to forget the models that company has rolled out such as Baleno.I wondered this many models so there will be huge cannibalization.Cannibalization   refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.But Maruti thinks otherwise their thought is that if any potential lead/customer walks into the showroom then he/she should choose Maruti.Customer has so many options that he can choose Maruti has mastered this strategy .It is rare automobile  manufacturer which follows variety over volume.Maruti Suzuki claimed that in Feb 2012 sold its 10million vehicle .Maruti Suzuki analyses models present in the market and discontinues the models which are not in profit.Models like 1000,Zen,Esteem,Baleno,Versa and Grand Vitara were discontinued.

Maruti Suzuki cars are specifically designed  for India roads.Maruti’s brand name and Suzuki’s technology is a deadly combination for the success & with decision of buying a new plant in Gujarat Maruti would like to continue on its road to success and become one of the most trusted brands in India .The models that Maruti has launched made me to count on them.