Monday, March 18, 2013

Mastering all Laws of High-Speed Motion?

Maruti’s Adoption of a New Three-Pronged Strategy fuelled its Topline Growth in FY2009-10. Can it Manage a Repeat this Year?

It was meant to be a huge loss for Maruti. The month: February 2010. The event: phasing-out of the Maruti 800 – the original people’s car of India – from 13 top cities across India, as the newly applied BS4 emission norms disallowed the company from selling the vehicle in those cities. The news made headlines, threatening to damage Maruti’s topline to a great extent. But it turned out be only an emotional loss for the company. The 800 meant no more than a trophy, a symbol that Maruti had “once” become the #1 in the domestic circuit. It still is. Most critically, the Indo-Jap has other cards to bet on. Actually, Aces.

The 20-year-old JV between Maruti and Suzuki, has never failed to spring sweet surprises. Launches like the SX4, the Swift, the Ritz et al, have taken handsomely to the roads. In fact, the carmaker, for delivering “just what the Indian consumer desires” has never failed to make it to the top of the recall list. Result: Maruti’s financial scorecard has always read pretty. Even for FY2009-10, in terms of absolute increase in revenues, amongst all Indian companies, Maruti features at #3 (after RIL & Tata Motors), with a y-o-y increase of Rs.86.45 million (growth of 42.27%). So what bet paid off to produce the numbers for it?

Maruti began FY2009-10, with a three-pronged plan. It started focussing on the rural market, tied-up with PSUs and appointed resident local marketing executives in tier III & small towns. For instance, the company launched an offering in the A2 segment called the ‘A-star’, which was originally meant to be sold primarily in Uttar Pradesh.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Posted by at
Labels: , , , , , , , , , , , ,