Operating Strategies Case Study

Case Title:

Maruti-Suzuki's Swift Move

Abstract:
Maruti Udyog Ltd., a joint venture between the Government of India and the Suzuki Motor Corporation of Japan was India’s largest automobile company in 2005. It operated in the passenger vehicle market and manufactured affordable and fuel efficient cars for the Indian masses. Maruti 800 was its flagship small sized car and was the best selling car in India since decades. In 2005, Suzuki launched their global car ‘Swift’ in international markets and later in India. Swift was the first stylish compact car from the stable of Maruti and was a differentiator from its earlier products. The launch of Swift had brought Maruti in lime-light and various global international automobile manufacturers announced their plans to boost their investments in India and launch competing cars. The competition was expected to intensify to grab the burgeoning customer base.

The case describes the Indian Passenger car industry and the presence of Maruti in each of the categories. It traces the origin, growth and evolution of Maruti and the role played by Suzuki in enabling it to achieve dominance. The case highlights the global strategy of Suzuki and the marketing strategy of Maruti in launching Swift. It describes the 5 P’s of marketing around the launch of Swift in an endeavor to change the image of Maruti as a manufacturer of fuel-efficient but non-stylish cars only. The case finally talks about the plans of other competitors and their strategy to gain dominance and the plans of Maruti to sustain its dominance in all segments.

Pedagogical Objectives:

• To analyse the passenger vehicle market in India and the presence of Maruti Udyog Ltd, in the various segments
• To examine the marketing strategy of Maruti Udyog Ltd, based on the 5 P’s, around the launch of the car Swift
• To discuss where India figures in the global strategy of Suzuki and debate on the future potential of the Indian passenger vehicle market.

Keywords :  Maruti; Suzuki; Swift; India; Asia; Research & Development; New product introduction; global strategy; marketing; promotion; media; advertising; new entrants; competition; market leader; Operating Strategies Case Study; 5 P’s of marketing; passenger vehicle industry