DISTRIBUTION STRATEGY OF MARUTI SUZUKI INDIA LIMITED
Distribution is an important marketing mix. Distribution strategy of a firm is a plan created by the management of a manufacturing business that specifies how the firm wishes to transfer its products to intermediaries, retailers and end consumers. In earlier days the consumers used to book for a car and wait for more than a year to actually buy it. Also the concept of Show rooms was non-existent. Even worse thing was the state of the after sales service. With an objective to change this scenario & to offer better service to customers, Maruti took initiative. To gain competitive advantage, Maruti Suzuki developed a unique distribution network. It has the largest distribution & Service network
…show more content…
In year 2011-12 Maruti Suzuki sold 1006316 vehicles i.e a negative growth of (-) 11.16 percent over 2010-11. In year 2010-11, the company sold 1132739 vehicles.
Maruti Suzuki’s total Net Sales in year 2004-05 was 109108 million whereas the net sales in year 2005-06 were 120,034 million. In year 2010-11, Maruti’s total net sale was 361,282 million whereas the total net sale in year 2011-12 was 347,059 million. In year 2011-12 Maruti Suzuki’s net sale was decreased by (-) 3.93 percent over 2010-11.
EXPORT
Maruti Suzuki India Limited exporting to 98 countries in Europe, Asia, Latin America, Africa and Oceania. Some leading overseas markets of Maruti include Germany, Netherland, France and UK. Presently the company exports various models like A-Star, Ritz, Estilo, etc. In year 2009-10, Maruti Suzuki clocked export sales of 147,575 units its highest ever and in 2011- 12, the company exported 1,27,300 units.
The following are the top ten export destinations of Maruti Suzuki India Limited.
Top Ten Export Destinations of Maruti Suzuki
Sr. No Country Vehicles Exported (In
TATA motors has been a pioneer in indian automobile sector for more than the 60 years, established in 1945 ,today it is valued at over USD 40 Billion.The company now has its presence in almost every continent around the globe ,in about 175 countries.It currently caters to 3 market segments The passenger cars, Utility vehicles and commercial vehicles
This task I am going explain the process of distributing goods through different channels from the manufacturer to the customers. The term distribution means the process of delivering, storing and selling goods, so that they can be used by customers. (Source- Intermediate Retail and Distribution, Delivering is about what types of transport which are used to carrying and delivering goods, the types of transport is going to be Rail, Road, Air, Water for example rivers, ocean cargo and canals and People. Storing is about where the goods are going to come from and where they are going to be stored. Selling is going to be where you are going to sell the goods
There are 200 component, tooling, design and engineering firms in Australia. All three companies are the subsidiaries of major overseas producers. Mitsubishi Motors closed its production in March 2008, though it remains in the market as an importer of a full range of vehicles (AustralianGovernment, 2009). In 2007, the market recorded sales of over one million vehicles for the first time. The number of passenger vehicles sold increased by 1.8% (on month to month basis) to 41,700 in April 2009. The rise was the largest monthly increase since November 2007, and is a sign of improvement instead of rising fuel prices and global economic turmoil.
Distribution is very important in the marketing mix because it deals with making products available when and where customers want them. As with all of the elements included in the marketing mix, place/distribution can be the difference between a successful or an unsuccessful business. The specific characteristics of The Olive Barrel’s place/distribution are the store’s physical location, its product distributors, and its availability to the customers.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983.
BMW North America has also reported that their year-to-date sales of 275,094 vehicles is an increase of 8.2 percent over last year 's total of 254,297 vehicles at this time last year.
Carmakers Fiat Chrysler, Honda, Nissan and Toyota lead the way. According to a report from AutoNews.com, sales climbed 3.9% in June 2014. This trend continues a banner year for light vehicles. June numbers registered below May’s, but above the same month in 2014.
Total combined GM and Old GM worldwide vehicle sales in December 2009 were 7.5 million. Old GM’s total worldwide vehicle sales were 8.4 million December 2008. Substantially all of the cars, trucks and parts are marketed through retail dealers in North America, and through distributors and dealers outside of North America, the substantial majority of which are independently owned (secfilings.nasdaq.com).
Distribution is simply defined that deliver the product or services to the final user. Depend on product company use different method to distribute. Distribution have two methods to use they are - direct method and indirect method. Firstly, direct method defines companies are selling the products directly to the final consumer. Secondly, under the indirect method they have three categories. First of all retail is the sale of goods and services from individuals or businesses to the end-user and wholesale is the
In 2012, Suzuki faced the question of whether or not to continue selling automobiles in the
The latest financial reports found in the Appendix section confirm Harley-Davidson’s successful strategies. Year 2001 sales at $3,363.4 (mil), a growth of 15.7% from previous period. Year 2001 net income at $437.7 (mil), a growth of 25.9%. Harley-Davidson has successfully captured 60% of the motorcycle market.
The distribution channel environment for automobiles in India is different from that of most advanced countries. These differences exist in number of dealers, size and type of dealers, functions of dealer, manufacturer-dealer relationship, car supermarkets, vertical integration, bookings, financing, number of cars sold per dealer, margins, and market environment. Because customer has wide choice, most car dealers would have to adjust to the as per the need of the customer.
An organization focuses on many aspects and strategies that address customers’ needs and wants. The organization develops a product that includes many steps such as, product life cycle, type of brand, packaging and labeling, but the final step is how to have their product accessible to the consumer, which is distribution. A distribution channel is the path where products, including their ownership, flow from producer to consumer. There are many paths an organization can choose to send their product. Physical distribution is the actual movement of products from a producer to consumers.
Production appears to be a constant problem for Tata Motors. Branded production of Tata motors vehicles is geared towards economical cars and not luxury, while it appears that the market is geared more towards luxury. Tata Motors branded car sells fell 31 percent from 2013 to 2014, and in 2015 fell another 24.5 percent from 2014. Production also appeared to have missed a large flaw in the Nano which caused it to catch fire. Marketing also seems to be lacking in other countries. Although Tata Motors is present in many countries, the largest portion of their consumer based is India where the company is mainly located. Although the largest portion of their sales comes from India, Tata Motors holds very little of the market share for passenger vehicles in India.
As far as Manipal and Udupi are concerned mainly the distribution is done via pull strategy. We have two strategies to go for -either a push or a pull strategy. Considering the product and its segmentation, we should go for pull strategy, in which the manufacturer uses advertising, promotion, and other forms of communication to persuade customers. When our target customer group is the youth who are highly exposed to advertising, media and promotion, pull strategy suits better. A marketing channel performs the work of moving goods from producers to consumers. A push strategy uses the manufacturer’s sales force, trade promotion money, or other means to induce intermediaries to carry, promote and sell the product to end users. In case of push strategy the other intermediaries need to have good knowledge about the product, also the product is such that until the customer sees the products performance, he may not be interested to buy it. Also intermediaries’ sales commission is a major issue. Sales via advertisement and promotions will help the customers to understand the product better and penetrate the market better and increase the customer