Maruti Suzuki’s Marketing Strategies in the Automobile Industry

Questions

1. Describe the theory relates to adoption, Aggregation and Arbitrage of success of Maruti Suzuki?

2. Describe the theory relates to adoption, Aggregation and Arbitrage of success of Etihad Airways?

A better thinking, better process helps in better technology. It is what helps us create better cars and of course, a better way of life. In this way, cars and planes were made to ease the transportation system, but now it has become a very wide market. So there is a very big competition takes place. To promote and sell the products & services in the market, companies make some marketing strategies and plans.

There were two journal articles found about Maruti Suzuki, which can be discussed here as under:

1. Maruti Suzuki touches cloud nine!
2. Buy Maruti Suzuki: Deepak Mohoni

(Retrieved from: https://articles.economictimes.indiatimes.com/keyword/maruti-suzuki)

The first article relates to Singapore which shows that Maruti Suzuki ranks number one in customer satisfaction. With the new sales of new vehicles for second year it satisfies JD power Asia Pacific 2005. Mr Mohit Arora says, performance of Maruti Suzuki reflects its approach to building & promoting effective sales processes that are based on the voice of the customer.

The second article says that while speaking to ET, Deepak Mohoni who is the Director was asked few questions on his stock recommendations. What stocks will you be recommending for today? Maybe today is not a brilliant day for trading. He said, Like yesterday, Two-way swings would stop out most things. But only on the long side and I suggest to go with Maruti Suzuki which had made fairly good moves at that time. And then he said, Maruti would be the preferred long term investment.

Theory relates to adoption, Aggregation and Arbitrage of success of Maruti Suzuki

(Source: serco.com)

Adoption for Maruti Suzuki is creating a global value with changing in a company’s offer to the meet local requirements or you can say preferences. This is probably the most widely used global strategy in the world. In the earlier time when market was covered by only main brands like the Ambassador and Premier Padmini, and when Maruti Suzuki Ltd entered the market of India with a very different strategy. The main strategy of the company was making compost by making an offer, modern & fuel efficient car. Maruti released its first car which was Maruti 800 on December 14, 1983. It fulfilled the dreams of Indian customers and Maruti Suzuki became the market leader. From 1983 till now Maruti Suzuki has gradually offered a lot of choices to the consumer.

Due to these heavy competitors today, Maruti Suzuki works with Innovative and New Marketing Strategies. With the continuing changing in needs, wants of people & requirements of customers and also the markets, Maruti Suzuki’s Brand Positioning, Distribution & Advertising strategy is altering. In today‘s world’s view the success of a company lies in restructuring & structuring the strategies of market and innovation of services & product continuum (Dr. K. Rajeswari & Stella,  ‘11).

Rajkumar Gautam and Sahil Raj also decided that, to meet the challenges which are taken by globalization, plus the Indian automobile manufacturers who need to ensure about the technological advancement & also appropriate marketing strategies & adequate customer feedback system in the organizations (Maruti Suzuki | Innovation is About Progressive Improvement, 2013)

JD Power Asia Pacific 2005: Maruti Suzuki Ranks Number 1

Maruti was the only that leader in the utility-car segment sector of automobile industry, which controlled around 85% of the whole market by 1998. Because of increasing competition from local companies like Hindustan Motors, Telco, Mahindra and Mahindra & other foreign companies like PAL, Daewoo, Ford, Toyota, Mitsubishi, the complete structure of the auto industry in India changed in the last decade and consequence of which was the decline of the profits as well as the market share for Maruti. At the same time Indian government permitted to foreign producers of cars to invest their money in automobile sectors. And also hold majority stakes. At the start of its decreasing profit/ loss of share of market, Maruti initiated some strategic replies to keep up with the liberalization process of India and started redesigning it, in order to face the competition in the market of India (Stephens Balakrishnan, 2011)

There are two other journal articles, which have been found about Etihad and are as follows:

1. Etihad Airways record profit in 2012
2. “Fly Higher” from Etihad Airlines

( Retrieved from: https://articles.economictimes.indiatimes.com/keyword/etihad-airways)

The first article relates to Dubai. Etihad Airways is an Abu Dhabi based airline, which was again profitable in the year of 2012 after the profit of $14 million. James Hogan who is the president and CEO of Etihad Airways said that further details would be declared next month. He also said this while addressing the Conference of Global Airfinance. Hogan has talked about the portfolio of finance with more than around $6 billion used in funding. (Maruti Suzuki Celerio – Frugal Technologies Drive Growth,  ‘14)

The second article relates to Kochi. It was specified in the article that in September, the Etihad Airways have a big record of loading to & from its hub of Abu Dhabi. Etihad Cargo, which is also part of Etihad Airways, has been seen to make a monthly record with 45,180 tons in Sept from 31,820 tons in the last year in the same month, with the increase in 43 per cent. The real reason of increase in it is strong demand from countries like India and Hong Kong (Sharma, 2014)

Etihad Airways has a habit of being the winner of the Passenger Service Award of Air Transport World from time to time and last time was 2012. It has been recognized the excellent customer of the carrier, service, product and a premium level offerings of service across the cabins. Etihad Airways are also noted as it maintains a very genuine philosophy of service which is combined with the one of the best hospitality and comfort level with the help of all employees from almost more than 121 nationalities. Apart from that, it is also significant that Etihad maintained as well as improved its level of service towards its customers, particularly to its Far East customers. An important move by Etihad in the industry is the launch of its first services for its customers from Bangkok and Hong Kong, for providing options of personalized travel by using the fleet of executive jets of a modern luxurious kind. New private suites are named to next generation seatings by upgrading in First Class and Business Class.

Another turnover of the industry when Etihad Airways had started operating the scheduled flights between Abu Dhabi & Shanghai, China. Then it operates a non-stop commercial  type of passenger flight,  between two main hubs,  in Shanghai & Abu Dhabi with its first class world leading suites and with on-board chefs and entertainment system which is called as an E – box. Etihad Airlines ensured that all the travelers will have limitless access to the First as well as the lounge of Business Class in all of the airports in major cities of Thailand, China, Indonesia and Malaysia. Bangkok was Etihad’s first ever long destinations in the Eastern countries & the route’s & 7th year.

In general, it is possible that Etihad Airways was rated below the average overall; it was better received by European audiences rather than by Asian audiences. The overall score was effected low ratings from Korea because of a lack of local language knowledge and content offered to them. Etihad Airways has always received big ratings in Visual Designing, like the usage of symbols & animations  (Al-Ali and Ahmad, 2014).

Conclusion

In the end, it can be said that there is a lot more to discuss about both companies according to AAA framework. This world is full of competitions. A company should be making strategies and plan so that they can work through it in order to achieve their goals. There are always need of innovations and new plans that is why every company keeps working on it.

References

Maruti Suzuki | Innovation is About Progressive Improvement. (2013). Auto Tech Rev, 2(1), pp.4-4.

Maruti Suzuki India — Reducing Carbon Footprint. (2013). Auto Tech Rev, 2(6), pp.50-52.

Maruti Suzuki | Innovation is About Progressive Improvement. (2013). Auto Tech Rev, 2(1), pp.4-4.

Sharma, R. (2014). Social Media Challenge: Analysis of sentiment in Maruti Suzuki India Ltd. GSTF Journal of Psychology, 1(2).

Stephens Balakrishnan, M., Jayashree, P. and Michael, I. (2011). Etihad: contributing to the UAE vision through Emiratisation. Emir Mkts & Case Studies, 1(1), pp.1-7.

Etihad Airways: growth by successful & strategic partnerships

Al-Ali, H. and Ahmad, S. (2014). Etihad Airlines: growth through successful strategic partnerships. Em Mkts Case Studies, 4(5), pp.1-17.

Stella, A. and Dr. K. Rajeswari, D. (2011). Appraisal of Marketing Practices of Maruti Udyog A Case Study of Maruti Udyog Limited. IJAR, 3(5), pp.97-99.

Stephens Balakrishnan, M. (2011). Etihad Airways: reputation management – an example of the Eyjafjallajökull Iceland volcano. Em Mkts Case Studies, 1(4), pp.1-17.