Final Project: Research Report

3

MARUTI SUZUKI INDIA

Maruti Suzuki India

Chellyn Jones

Southern New Hampshire University

01/22/2021

Introduction

Maruti Suzuki has dominated the Indian automotive industry without leadership challenges in the A-segment since its inception. Four, hatch sedan, SUV, and the van are divided into the Indian market. The hatch segment is considered the A-segment and comprises the entry, hatch, mid-size hatch, and premium hatch segments. MSIL competition then made entries into the market and made unique products, the MSIL A-segment shares to drop from 61% to 49%. MSIL failed to defend its products, and due to poor product management, it lost some of its customers to its competitors, making a loss in its sales. The issues that resulted included poor product management, lack of product diversity, and poor innovations. This research intends to determine the problems hindering the Maruti Suzuki and its impacts on Maruti Suzukis operation. Using the data provided by Maruti Suzuki Company, the paper will analyze the data and use it to come up with conclusions on how product management has affected the company and come up with feasible recommendations that the company can use in the future to improve their sales.

Data Analysis

Descriptive Statistics

Descriptive statistics includes analyzing data that has patterns and trends. From the data provided by Maruti Suzuki, qualitative and quantitative data have been provided. The use of quantitative data will be used in the descriptive statistics. In the use of measures of central tendencies (mean, median, and mode ) will be used, analysis of data will use measures of dispersion ( standard deviation), and variation,

Exhibit 2: sales of passenger cars in (000 cars)

The exhibit indicates sales of passenger cars, in the year 2008 to 2013.To interpret the data, data analysis using descriptive statistics and indicators of central tendency will be used. Standard deviation will be employed as well. In segments and times, the details will be analyzed

Mean data for segment A.

Segment –A comprises the entry hatch, mid-size hatch, and premium hatch. The exhibit also comprises the sedan, SUV/MUV, and van. The total sales for the passenger in segment A were

2008/2009

Segment India MSIL

Entry-hatch 294.5 262.0

Mid-hatch 497.6 188.8

Premium-hatch 128.2 110.1

Totals 920.3 560.9

Mean sales 306.77 186.97

SD 185.01 75.97

2009/2010

Segment India MSIL

Entry-hatch 340.9 268.2

Mid-hatch 581.2 218.7

Premium-hatch 262.7 179.3

Totals 1148.8 666.2

Mean sales 382.93 221.1

SD 165.98 44.55

2010/2011

Segment India MSIL

Entry-hatch 478.4 373.3

Mid-hatch 628.8 252.1

Premium-hatch 438.9 209.6

Totals 1546.1 835

Mean sales 515.37 278.33

SD 100.20 84.94

2011/2012

Segment India MSIL

Entry-hatch 486.7 331.5

Mid-hatch 527.4 177.3

Premium-hatch 499.8 218.3

Totals 1513.9 727.1

Mean sales 504.63 242.37

SD 20.77 79.86

2012/2013

Segment India MSIL

Entry-hatch 435.1 284.6

Mid-hatch 415.1 156.2

Premium-hatch 531.8 244.0

Totals 1381 684.8

Mean sales 460.33 228.27

SD 62.41 65.63

The above data shows an analysis of the A-segment and is represented by mean and standard deviations. By use of mean, the data analyses the numbers of sales of passengers’ cars in the years 2008 to 2013. The SD is used to indicate dispersion in the sales of passenger cars. In this case, the mean data will be used to analyze the sales of passenger cars in the Maruti Suzuki company since it indicates the mean differences in sales from one year to another. From the analysis, there is generally a decline in passenger cars' sales from the years 2008 to 2013.

In 2012/2013, the number of sales has made fewer sales compared to 2008/2009. The mean for the years 2008/2009 and the years 2012/2013 indicate that the Maruki Suzuki Company made more sales in 2008/2009. The company’s sales increased in the years 2009/2010, 2010/2011, and there was a significant drop in the years 2012/2013 (Jaydeep Makuherjee, 2015). A drop in the year 2012/2013 could indicate poor management and the MSIL Company's failure to protect and defend its market, its market shares, and product positioning, resulting in losses. The company lost its customers.

Exhibit 3: year-wise market share projections of major car manufacturers in India.

The main focus is on the MSIL mean percentages for market shares over the years. From the data, the means in 2008/2009 are at 46.51 and 39.12 in the year 2012/2013. Generally, this indicates a drop in the rates of shares of MSIL in the market. The use of the differences in percentages for each year will determine the differences and trends in the market shares over the years.

Years 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013

MSIL 46.51% 44.63% 45.28% 38.27 % 39.12%

Mean gain/loss - 1.88% loss 0.65% gain 7.01% loss 0.85% gain

The trend indicates a decline in the market demand and shares of Suzuki compared to the other companies. In the year 2008/2009 and the years 2011/2012, the company made a significant loss in 2009/2010, 2012, and 2013 MSIL made again compared to its previous years. Overall the company is making more losses than profits.

Exhibit 4: Tata Nano Sales Figures and some explanations

In the year 2010, there is a drop in the sales of November. The reasons being safety reasons pay first drive later model that did not work out as expected and discourages down payments. In the years 2011, there is an increased sales figure, in the month of May, which has been attributed to extended warranty and zeroes down payment versions. The company is a major MSIL competitor, and the data indicates that it was able to increase its sales by identifying the problem.

Exhibit 6: Profile of existing A-Segment Consumers in India

It indicates the average household income of the people. In the entry hatch, 61% of the people are first time buyers. The self-employed are the majority of the buyers. The family’s with average size and disposable incomes make up the higher percentage of car buyers.

Exhibit 10: Motivation for A-segment Cars Purchased from Maruti Suzuki

Most consumers will come by their first car from Maruti Suzuki and will later purchase their second cars from other companies. This could be a result of the lack of diversity in the car products of Maruti Suzuki.

Exhibit 11: Sales Trends for Diesel and Petrol Vehicles

The statistical analysis shows that petrol vehicles will dramatically decrease from 5 percent to 2 percent at the entry and hitch stage, while diesel vehicles will increase from 5 percent to 25 percent.

Graphs or Tables to display data.

Exhibit 2

The graph below the x-axis represents the years, and the y-axis represents the number of sales of the passenger's cars. The sales increase in the first two years and then starting dropping in the third year. They also drop in the years 20102/2013. The drop in sales could signify poor management and a lack of product diversity.

Series 1 –India

Series 2-MSIL

Exhibit 6: Profile of existing A-Segment Consumers in India graph

Series 1-entry hatch

Series 2-mid hatch

Series 3-premium hatch

As depicted in the graph above, most of the buyers are buying the cars for the first time and are mostly self-employed. People with a higher income also form the major consumers. It also indicates that cheap cost also attracts consumers in all the batches.

Inferential statistics

Indicate the general information that goes beyond the data that has been provided. A company's failure to come up with new strategies will cause the company to have stiff competition from its competitors. With the changes in the market, the company needs to form strategies to help them adopt or keep up with the market changes (Jaydeep Makuherjee, 2015). In exhibit 4, the TATA Nano Company identifies the problem that caused a drop in sales and found solutions to it this way. They were able to increase their sales. Maruti Suzuki needs to improve its products through cost and fuel, and product effectiveness in order to remain at the top and retain its customers.

Meaning of the Results

The results indicate that Maruti Suzuki is making more losses than profits; it has lost some of its customers to other companies and has also lost its shares. To recover its A-segment, the company needs to improve its products. The company has low performance and hence needs to make improvements for better sales in the future.

Ethics of analyzing data

The data that is analyzed was extracted from the companies records; hence it's true and reliable. The data analyzed relates to the company and indicates the MSIL A-segment and its overall performance compared to other automotive companies. The data has been analyzed fairly and is objective.

Conclusions and Recommendation

Research findings

The findings indicate that the company is making losses. The sales are low, and it's losing market shares. It also indicates that the company is facing stiff competition from its competitors.

Research problem

The data has indicated other research areas, such as the consumer mode and the shifting customer preferences depending on the cost and the product.

Recommendation

The company should diversify its products to offer various products that meet the preferences of the consumers. Maruti Suzuki should manufacture cost-effective products that are cheap to maintain and consider the fuel preferences.

Questions and concerns for stakeholders

The stakeholder is concerned about the company and making profits since they benefit from an organization.

What are the strategies being put in place to improve the products?

What are the strategies to ensure customer satisfaction, an increase in sales, and shares in the market?

References

Jaydeep Mukherjee, G. M. (n.d.). MARUTI SUZUKI INDIA: DEFENDING MARKET LEADERSHIP IN THE A-SEGMENT. Ivey Publishing.

Leykun, F. (2019). MARUTI SUZUKI INDIA LIMITED STRATEGIC MANAGEMENT:(A CASE STUDY). International Journal of Research In Commerce and Management Studies (ISSN: 2582-2292), 1(3), 16-43.

Saranga, H., Mudambi, R., & Schotter, A. P. (2017). Mastering the Make-in-India challenge. MIT Sloan management review, 58(4), 59.

Sundararajan, V. (2020). Conjoint Analysis of Strategic Preferences by Managers and Latent Class Regression Modeling of Firm Performance in Consumer Goods Industries in India. International Journal of Modern Agriculture, 9(3), 1809-1848.

YASODHA, M., SHARMILA, G., SUBASHREE, A., & YAMUNADEVI, K. A STUDY ON TREND ANALYSIS OF MARUTI SUZUKI INDIA LIMITED.