Restructuring / Turnaround Strategies Case Study

Case Title:

Maruti-Suzuki's Zen: Will the Legacy Last?

Abstract:

Maruti Udyog Ltd (Maruti) is one of India's leading automobile manufacturers in the car segment, with a market share of over 60% in the car industry in the country. The term ‘Maruti’, in popular Indian culture, is associated with the Maruti 800 model. Maruti’s product portfolio range from Zen, Alto, Wagon R, Gypsy, Esteem/Swift, Versa and the Baleno, all backed by the inherent value proposition of high quality, fuel efficiency, and compared with the competition, low cost. Maruti Suzuki rank highest in customer satisfaction in India for a Seventh Consecutive Year, and also ranked at 91 in the Forbes' list of the World's Most Respected Companies.

Zen was the second largest selling model of Maruti. Despite being the leader in B2 segment, Zen was losing market share in India due to increasing competition. Even after its re-launch, Zen sales continued to decline. To reverse the declining sales trend in the competitive market, the company decided to phase out Zen and launch a new version. The case talks about initiative taken by Maruti to reverse its declining sale.

Pedagogical Objectives:

• The automobile industry in India and its local players
• Product life cycle of Maruti Suzukis Zen
• Exit of Maruti Suzukis Zen
• Reincarnation of Maruti Suzuki Zen.

Keywords : Car industry; B2 segment; Sales; Hyundai; Re-launch; New design; Speed; Estillo; Tarun Tahiliani; Restructuring / Turnaround Strategies Case Study; Anti braking system; Attractive look; Wagon-R; Alto; New model; competition