1. PRESENTED BY – Section C - Group 5 Aseem Shandilya (1301-036) Sankalp Saxena (1301-192) M Nikhil Teja (1301-360) Prateek Chaturvedi (1301-550) Mahashweta Chaudhri (1301-111) Venkatesh L (1301-433) Company – Maruti Suzuki India Ltd. Brand – Alto Product – Alto 800 Variants – LX, LXi, VXi Brand - AltoAlto 800StdLXLxiVxiAlto K10LxiVXi

2. Demographic Psycho- graphic Benefits Sought Behavioral Age (years) Annual Individual Income ('000 INR) Annual Family Income ('000 INR) Location Family Life Cycle No. of Family Members OccupationLifestyle Needs/ Motivation Occasion/ Event Buying Stage Usage Loyalty Status Product Knowledge Involvement Level 18-24 Nil 0-200 Metro/Non- Metro Unmarried2 Student (UG/PG) Family Price Marriage Gathering Information OccasionalLoyalNoneLow 24-30 0-100 200-300 Urban/ Semi- Urban/ Rural Recently Married 3Service ClassSocial Running Cost/ Mileage AnniversaryReady to buyRegular Occasional Switcher LittleMedium 30-35 100-200 300-500Hilly/ Plains Married + Young Kids 4FarmersSporty Brand FestivalHeavy Regular Switcher StrongHigh 35-40 200-300 500-7505 Artisans/ Craftsmen Travel Features/ Style Achievement 40-50 300-400 750-1,0006 Self- employed (start-ups) Education Exteriors/ Interiors Year end discounts 50-58 400-500 1,000-1,500More than 6Shopkeepers Performance/ Speed Harvest time over 58 500-750 over 1,500 Technology 750-1,000 Spaciousness over 1,000 Availability of Service/ Spares About the Product – Alto 800 People’s Car Launched in October 2012 137,406 units sold (till Aug 2013) Manufactured in 60 variants Best in class mileage Low cost of ownership

3. ParameterDescriptionTarget SegmentCharacteristics of Segment Demographic Age 18-24 Learning to drive First time buyers Upgrading from 2-wheelers to 4-wheelers Working individuals Need is governed by impulse View car as social symbol 24-30 Annual Individual Income (INR) 500,000 - 750,000 2-4 years work experience Buy on loan/ credit (3-5 years) Don't change frequently First timers or driving 2nd Hand vehicle Annual Family Income (INR) 750,000 -1,000,000 Family Lifecycle UnmarriedStaying with parents/ or on rent with friends Recently Married Both husband & wife earning No or at most one child Occupation Students Use for socializing activities Dependent on parents for finances Artisans/ Craftsmen Have ready cash No immediate need for ownership of car Niche Buyers Shopkeepers ParameterDescriptionTarget SegmentCharateristics of Segment PsychographicLifestyle Sporty Social Family Changing over from 2-wheelers Use for shopping and traveling Benefits Sought PriceLow Price Rising inflation leading to a demand for lower prices Customers want more features at lesser price Running Cost/ Mileage High Mileage Rising price of petrol has led to a demand for better mileage/ efficiency Service & Spares Low Cost and Easily available Need for nearby & easily accessible service stations Cheap spares and low cost of repairs Can be repaired by local mechanics FeaturesBetter in-car experience Need for AC, Power Windows, Power Steering Music System & Navigation Body accessories Behavioral Occasion Marriage Festivals (Navratras,Diwali) Year End discounts Car as a gift in marriage Auspicious occasion & perception of society Heavy discounts at year end Usage Occasional Regular Need for less ownership & monthly running cost Need for ownership governed by comfort & ease of travel Switch over from use of Public transport

4. Sales Comparison Alto sales are 30% of Total sales by Maruti Suzuki which almost equals the total sales by closest rival Hyundai Out of 308,000 Alto sold, 30% were sold in Rural Areas Source – MSIL Annual Report 2012

5. Budget Generic Nano, Santro, Eon, Spark, Alto K10 Product Form Product Category Jazz Wagon R Estillo Brio Fabia i10, i20 Figo Liva A-star Swift, Ritz Beat City, Accord Verna, Accent Dzire, SX4 Ertiga Vento Optra Xylo, XUV, Duster Scooters Bikes Pre-owned Cars Non- geared Scooters Public Tpt Taxis Furniture Foreign Trip House Renovation Higher Education Consumer Durables Gold Jewelry Branded Apparel Investment

6. Product Manufactured in 60 variants Petrol and CNG versions Fresh and Spacious interiors Wave front design Easy drive and handlingPrice Offers good value for money Best in-class mileage Easy EMI options Festival discounts Exchange Offers (TrueValue) Loyalty bonusPlace Regional marketing – Niche segments (7% of sales) 2971 service stations across 1425 cities Standardized spares – MGPPromotion “Kitna Deti Hai” campaign to emphasize mileage Tagline “Let’s go-Khisko” & TVCs to highlight the youthful design Marketing Mix

7. * The aim of the “Kitna Deti Hai” series of advertisements – The customer should always associate the word “good mileage” with Maruti Suzuki * The advertisement which says “Let’s go”, effectively communicates the youthful and contemporary positioning * The advertisement again highlights the mileage provided by the Alto. 22.7 Kmpl * This is another attempt to position the brand as a mileage car * Launching of the car’s CNG variant affirms low running cost & environment friendliness

8. * This advertisement highlights exteriors/ interiors * Appeals more to youth who are more interested in this aspect of the product * Also “popularity” and “sales no.s” are mentioned generate confidence in product

9. * This perceptual map has been generated using the responses of potential customers that visited the Dealers (Regent Automobiles & DD Motors) * The customers perceive Alto 800 as – * High Value for Money product * Almost mid-way between Style & Functionality * This perception resonates with the marketing strategy of the company of portraying the product as a high mileage & efficient car with stylish features * The nearest competitor Eon (by sales) scores more on style but is lower on the value for money mainly due to its higher price (24% more) and lower mileage (7% less) * Tata Nano the cheapest car scores slightly lower on value for money owing to inferior quality, lesser features and smaller engine capacity. * However, it scores more than Alto in terms of functionality due to higher mileage (12% more) but is significantly lower in terms of Style

10. * Only 27% of Alto Car buyers are less than 29 years of age  Huge potential for marketing * Target distribution network to cover 100,000 Villages by 2014 (55% increase over 2012) Total no. of villages in India is 650,000  Current Alto Sales are just tip of the Iceberg ! (Source - http://www.business-standard.com/article/markets/maruti-suzuki-demand-revival-hinges-on-festival-sales-rural-volumes-113092600065_1.html) * New strategy to target cash rich niche buyer from diverse vocations (e.g. Orchard owners in Nagpur, turmeric cultivators and granite stone traders in Tamil Nadu, blue pottery makers from Jaipur and fisheries’ owners in West Bengal) * Increased R&D budget on Diesel and Electric Variants considering the soaring Petrol Prices