Impact of hundai motors on marketing strategies of maruti suzuki in india
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In India, there are certain organizations that are operating in the car manufacturing and selling industry. Two of the organizations are Maruti Suzuki and Hyundai Motors. Maruti Suzuki is a collaboration of Indian company Maruti and Japanese organization Suzuki. Maruti Suzuki is there in the country for various years and it has a very good share in Indian car market. Hyundai has entered in Indian car market only recently and it is putting pressure of existing care manufacturing companies in Indian including Maruti Suzuki. It is to be determined whether, the impact of Hyundai Motors is huge on marketing strategies of Maruti Suzuki or whether, the later company is able to have its position intact in the market without any kinds of issues.
Research methods including primary and secondary research have been considered in order to determine actual impact of Hyundai Motors on Maruti Suzuki in India. In primary research, questionnaire has been considered. On the other hand, in secondary research, websites, journals, magazines and reports have been considered.
The current research is related to two particular organizations in car manufacturing industry in India. The organizations include Maruti Suzuki and Hyundai Motors. These two organizations are one of the major organizations in the country and have been performing well in last many years. The organization Maruti Suzuki is a subsidiary of Japanese automaker Suzuki Motor Corporation (Maruti Suzuki, 2012).
This organization has a major share in Indian passenger car market with the percentage of share reaching to the level of 44.9%. This organization was founded in year 1981. Since, then, it has taken a major share in Indian car market (Hyundai Motor Company, 2012).
On the other hand, Hyundai is a South Korean organization and it was founded in year 1947. This organization is not only engaged in manufacturing of cars but, there are various other areas also in which, organization is working. Areas include heavy industry, finance and insurance, construction, engineering and retail etc. It can be argued that to take large market share in India, Hundai Motors Corporation has to do a lot, as Maruti Suzuki has established a strong presence in Indian Market.
Relevance of Proposed Research
Maruti Suzuki enjoys more than 44% share in Indian market, therefore, it is very difficult for any other organization to enter into the Indian market and have the same level of growth in the country like Maruti Suzuki due to its marketing strategies. At the same time, it can be also said that if marketing strategies are developed effectively in a sustainable framework, it is possible to challenge Maruti Suzuki position in India. The current research will help in understanding whether, the organization has done well in the Indian market in spite of existence of Maruti Suzuki in the country or not. The people in the business industry always look to find out whether a particular organization is performing well in spite of competition and if, it is doing so then, what are the reasons for its success in the market. Due to above mentioned things; the relevance of proposed research is relevant to the business research (Fernando, 2011).
Proposed Study in Context
The study is suitable in current context, as it will help in developing knowledge about the impact of Hundai Motors on marketing strategies of Maruti Suzuki. This study will be helpful for marketing students to develop knowledge about marketing strategies of Hundai Motors and Maruti Suzuki in India.
Justification of Chosen Topic
There are certain reasons due to which, this research topic has been taken into consideration. There are only few researches conducted over this research topic. Along with this, I am a marketing student, so it will be helpful for me to develop knowledge about strategies and their impact over organizations. Furthermore, the findings of this research can be used by other students to conduct similar researches in future. In this way, it will be imperative to find out whether, Hyundai has actually made an Impact on Indian market of Maruti Suzuki by reducing its market share or it is still struggling to come in terms with car industry in India.
The research questions will help the reader to find out various facts and things included in the research.
The objectives of research study are as below:
According to Rajalakshmi and Ramachandaran (2006), foreign direct investment in automobile industry in India has increased its pace in the last few years. The organizations such as Toyota, Hyundai etc have come to the Indian market and have seen consistency in their market share. There is some data which is provided regarding sales of Hyundai in Indian comparison to sales of Maruti Suzuki (Ramchandaran and Rajalakshmi, 2011). In year 2003-04, sales of Maruti Suzuki was at the level of Rs. 10355.30/- and that of Hyundai was Rs. 5490.52. This figure has increased considerable and sales of Hyundai has quadrupled to reach to the level of Rs. 20565.81/- and it is not far away from sales of Maruti Suzuki which is at the level of Rs. 29602.10/-. These figures are in Crores. Cars of Hundai like Verna, Santro, i 10, I 20, Accent have established a strong presence in Indian market (Hyundai Motor Company, 2012). It can be argued from these marketing strategies taken by Hundai Motors that Maruti Suzuki has to alter its strategies in order to address the challenges posed by Hundai.
Marketing strategies of Maruti Suzuki have been changed after the entry of Hundai models in India. It can be argued that marketing strategies used by Hundai in terms of product, price, place, promotion etc have influenced the marketing strategies of Maruti Suzuki. Product strategy used by Hundai Motors for its i10 and i 20 models affected the product strategy of Maruti Suzuki and it introduced innovative models like, Ritz in India to address the challenges. It shows the marketing tactics used by Hundai Motors in India have a direct impact over the marketing strategic tools of Maruti Suzuki (Maruti Suzuki, 2012).
There are basically two forms of research designs. First form of research design is exploratory research design and second form of research design is descriptive research design (Creswell, 2003). In exploratory design, only basic information is gathered regarding the research. On the other hand, in case of descriptive research design, various key points and topics in relation to the research shall be taken into consideration. For this research, exploratory research design will be used, as there is need to conduct in-depth investigation for the research. At the same time, descriptive research design is rejected due to its lack of suitability with the research context.
In relation to collection of data, both primary and secondary methods will be taken into consideration (Kang, 2007). The primary methods are the methods that include questionnaires and interviews. On the other hand, secondary data collection methods are the methods which include use of reports, magazines and newspapers for the purpose of collecting information (Jupp and Sapsford, 2006). For primary data, questionnaire will be used that will include both open ended and closed ended questions. Sample size of the research will be 100 employees of Hundai and Maruti Suzuki in India. The sample size will be accessed through mails and phones. To collect secondary data, company websites, annual reports, journal, articles, newspapers, magazines books etc will be used.
Advantage of primary research methodology is that this form of research helps organization in ensuring that first hand information is obtained. In contrast, there is a possibility of increased cost in case of primary research (Goddard and Melville, 2004). So, researcher has to consider this aspect, otherwise the budget of research may increase that is not positive. Secondary research methodology also has certain advantages and disadvantages. In relation to the advantages, secondary research is conducted by way of use of high profile research profile which is authentic and provides a strong base for conduct of research. On the other hand, disadvantage of secondary research is that the research conducted by other researchers could be challenged due to authentic issues. Therefore, researcher has to take only credible database to collect secondary data.
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