Type of marketing channel:
The place strategy in the marketing mix of Suzuki Dzire is not only in its presence of dealers and sales outlets but also its service centres. Providing services is a major source of revenue for the company. Also, major focus is laid on emerging outlet and rural expansion considering the fact that automobile sector has yet not penetrated into rural India.
Distribution intensity (intensive):
Maruti Suzuki India (MSI) has more than 2000 sales outlets PAN India. The number of sales outlets includes the company’s total sales network – Maruti Suzuki dealerships, Nexa showrooms, and Maruti Suzuki True Value. The company has sharply increased the level of its sales network in the last five years in order to grow from 1100 outlets to 2000 outlets, thereby its sales network in the country doubled. Maruti’s service network is spread across most states of India and exists in 1400+ cities. They are manufactured at 2 factories i.e. Manesar and Gurgaon with an annual capacity exceeding 15 lakh cars per annum. The initial capacity of factory was 100,000 vehicles which increased to 550,000 vehicles. By March 2014, Maruti Suzuki had offered dealerships to close to 930 dealers in India and in 660 cities and towns of the country. It has 3013 service stations in the name of its company that extends to nearly 1430 cities and various towns. Maruti also has 30 stations for express services on 30 highways across various cities in India.
E-outlet and R-outlet:
E-outlet stands for emerging outlet and R-outlet stands for rural outlet. Maruti plans to set up another plant in Gujarat for which it has acquired 600 acres of land. Maruti now has 2000+ sales outlets in all the cities combined and has a dealership which is wider than its competitors even in the rural landscape. The rural market is a relatively untapped area for automakers. In the next two years Maruti Suzuki plans to double the number of outlets in rural India. At present it is 231 and target is around 450. Rural outlets will soon account to nearly 50% of Maruti’s network (550 will be located in urban centres) compared with just around 35% now.
Maruti Suzuki has also registered in GEM. It is the Government E-Marketplace which was initiated because many businesses, manufacturers & service providers, believe that selling to the Government is safer than actually searching for buyers. This marketplace helps the sellers get better prices for their goods and services. It also helps the government departments to get a one-stop-solution to all their needs. This has become the National Procurement Portal of India. By registering in GEM, Maruti has ensured minimum marketing efforts, lesser waits and manpower to materialize government tenders, minimum compliance procedures and timely payment. Along with that, they can change pricing seasonally or occasionally based on the market conditions with no interferences based on competition and also, they will stay updated about government requirements and purchase plans.
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