Maruti Udyog in 2003


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Case Details:

Case Code : BSTA074
Case Length : 19 Pages
Period : 2003
Organization : Maruti Udyog Limited
Pub Date : 2003
Teaching Note :Not Available
Countries : India
Industry : Automobile

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Early History

In the early1980s, the Indian government decided to produce a small car, which would be within the buying reach of the Indian middle class. The obvious place to shop for technology was Japan, which had developed world-class capabilities in small cars by that time...

Restructuring

In the early 2000s, Maruti introduced various measures to streamline its operational efficiency and marketing effectiveness...

Product development
Product development in the automobile industry was a very capital intensive process. At the same time, car companies had no option but to introduce new models regularly...

Vendor management
Vendor management was a critical success factor in the automobile industry, where many parts were outsourced. Maruti had implemented a system of Vendor Rating that gave timely feedback to vendors...

Manufacturing
Maruti's manufacturing facility comprised three integrated plants with flexible assembly lines at Gurgaon. The first plant was set up in 1984 with an installed capacity of 20,000 vehicles per annum...

Brand Building

Brand building had gained momentum at Maruti since the late 1990s. In 2002, Maruti had a promotional budget of Rs 230 crore. Maruti employed two ad agencies, Lintas and Rediffusion. Lintas handled advertising for Baleno, Esteem and Zen brands while Rediffusion took care of Maruti 800, Omni, Gypsy and Wagon R under its fold. With new product launches, upgradations and increasing competition, the company decided to give Capital Advertising the Rs 15-crore corporate advertising account, in 2000...

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