IMPACT OF SOCIAL MEDIA ON

B2B BRANDING FOR

MARUTI SUZUKI
B2B Assignment



Group: 2
VARUN TRIPATHI (118)
AZIZ BHATIA (119)
PANKAJ MADAAN (122)
J PRABHAT (123)
MANVI ARORA (124)
ANSHUL (126)
NITIN SINGHAL (127)


Table of Contents


1. Marketing Strategy Analysis ............................................................. 2
A. Boston Growth Share Matrix .................................................................. 2
B. GE/ Mckinsey Matrix - Multi factor Attractiveness/strength matrix .................... 4
2. Existing/possible value chain for its product(s)/service(s) considering both
"upstream" & "downstream" activities? ..................................................... 6
C. Primary activities at Maruti Suzuki .......................................................... 7
i. Inbound Logistics ............................................................................ 7
ii. Operations ..................................................................................... 8
iii. Outbound Logistics .......................................................................... 8
iv. Marketing and Sales ......................................................................... 9
v. Service ....................................................................................... 10
D. Secondary activities at Maruti Suzuki ...................................................... 10
vi. Procurement ................................................................................ 10
vii. Technology Development ............................................................... 11
viii. Human Resource Management ......................................................... 11
ix. Firm Infrastructure ......................................................................... 12
E. MARUTI SUZUKI SUPPLY CHAIN MANAGEMENT ............................................. 12
x. UPSTREAM: SUPPLY CHAIN DESCRIPITON & ROLE ...................................... 13
xi. MIDSTREAM: Automakers/Vehicle Manufacturers/Original Equipment ............. 14
xii. DOWNSTREAM: LAST PHASE OF SUPPLY CHAIN ...................................... 14
F. KEY FACTS OF NEW SCM ...................................................................... 15
3. Recommendations ...................................................................... 16







1. Marketing Strategy Analysis

A. Boston Growth Share Matrix

Business portfolio matrix that uses market growth rate and relative market share as the
indicators of the firms strategic position-
Market growth rate:
A measure of the annual growth percentage of the market in which the business operates.
Relative market share:
The firms market share divided by the market share of its largest competitor.
This model classifies SBUs into either:
Question marks (high growth + low market share).
Stars (high growth + high market share).
Cash cows (low growth + high market share).
Dogs (low growth + low market share).


STARS
Zen
Estilo,Swift,Dzire
QUESTION
MARKS
Ertiga,Celerio
Cash Cows
Wagon R, Alto
Dogs
SX4,Zen
Estilo,Omni,A
Star
Ritz,
Strengths of the BCG Model:
The BCG Matrix allows for a visual presentation of the competitive position of all units in a
business portfolio. The BCG model allows companies to develop a customized strategy for
each product or business unit instead of having a one-size-fits-all approach. It works well for
companies with multiple divisions and products. It is used to identify how corporate cash
resources can be best allocated to maximize a companys future growth and profitability.
Useful for the development of investment, marketing and operating decisions:
a) Investment in the business unit in order to build its market share
b) Sufficient investment to maintain the business unit's market share at the current level
c) Determine which business unit/product will function as a cash cow to provide
necessary cash flow for the other business units/products
d) Divest a business unit
Weaknesses of the BCG Model:
The BCG model assumes that high market share and market growth are the only success
factors. Based on numerous real life examples, we can conclude that high market share does
not always lead to profitability. Businesses with low market share can be highly profitable as
well. Relative market strength is also determined by the following factors which the BCG
does not take into account:
a) Technological competence
b) Ability to maintain low manufacturing costs
c) Financial strength of competition
d) Distribution capabilities
e) Human resources
The BCG model focuses on major competitors when analysing the relative market share of a
company. However, it neglects some small competitors with fast growing market shares. It is
a rather short-term model that doesnt fully show how characteristics of business units change
over the long term.It does not take into consideration other important factors such as: market
barriers/restrictions, market density, profitability, politics with this or any other such
analytical tool, ranking business units has a subjective element involving guesswork about
the future, particularly with respect to growth rates.






B. GE/ Mckinsey Matrix - Multi factor Attractiveness/strength matrix

It is a form of portfolio analysis used for classifying product lines or strategic business units
within a large company It was developed by McKinsey for the US General Electric
Company
It assesses areas of the business in terms of two criteria:
The attractiveness of the industry/market concerned
The strength of the business
Market attractiveness is measured through questions like-
Is the industry growth rate high?
Is the market size large enough to sustain many competitors?
Are industry sales susceptible to cyclical, seasonal or other fluctuations?
Is the rate of product obsolescence high?
Does extensive government regulation cause problems?
Is the industry demand high/low compared to industry capacity?
Is there a risk or raw material or component shortage?
Are there a large number of well financed competitors?

Business Strength is measured through questions like-
Are our production facilities modern & efficient?
Do we possess competitive technology?
Do customers have a positive image of our products?
Are we cost competitive?
Are our distributors well established & supportive?
Do we have stable and reliable suppliers








The GE/McKinsey Matrix, as an extension of the BCG framework, shares the
aforementioned advantages of the BCG model. Though the GE/McKinsey Matrix is more
sophisticated than the BCG matrix and can provide higher value information for the
executive management, it has several flaws and limitations:
No proven relationship between market attractiveness and business position.
The relationships between different units are not taken into account.
The core-competencies that lead to value creation are not taken into consideration.
The approach requires extensive data gathering.
Scoring is personal and subjective (risk of bias)
There is no hard and fast rule on how to weight elements.
The GE/McKinsey Matrix offers a broad strategy and does not indicate how best to
implement it. For the above limitations and issues, the GE/McKinsey Matrix can serve more
as a quick strategic visual framework rather than as a resource allocation tool.


2. Existing/possible value chain for its product(s)/service(s)
considering both "upstream" & "downstream" activities?

Value Chain of Maruti Suzuki


The term value chain was coined by Michael Porter. The value chain is a comprehensive set
of activities that are required to bring a product from a concept stage to marketing and
consumption of end products.
In competitive terms, value is the amount buyers are willing to pay for what a firm provides
them. A company is profitable if the value it commands exceeds the costs involved in
creating the product.
Porter distinguishes between primary activities and support activities. Primary activities are
directly concerned with the creation or delivery of a product or service. Each of these primary
activities is linked to support activities which help to improve their effectiveness or
efficiency.

FIRM
INFRASTRUCTURE


HUMAN
RESOURCE
MANAGEMENT

TECHNOLOGY
DEVELOPMENT


PROCUREMENT











INBOUND OPERATIONS OUTBOUND MARKETING SERVICES
LOGISTICS LOGISTICS & SALES

Production Management
System
MARGIN
Team building activities Variable- pay e-learning
Electronic Data Processing Data Management Software
Product Life Cycle Management Solution
Vendor quality system audits Maruti Center for Excellence Supplier Club
MARGIN
Partnership approach with
all stakeholders

JIT
Effective
Material
Handling
Presence in
500 cities
with 1500+
distributors

True Value
model
Maruti
Finance
Anytime
Maruti
Maruti on
road

Sales operating Standards

Motor training
Schools

Cashless
insurance
Lean
Manufact-
uring
Value
Added
Value
Engg.
(VAVE)
Focus on
Cost,
Quality &
Safety

Maruti Suzuki vendors:
1) BIMETAL BEARINGS LTD., COIMBATORE
They manufacture Engine Bearings, Bushes and Thrust Washers.
2) AMALGAMATION VALEO CLUTCH LTD., CHENNAI
Leading manufacturer of Clutch Assemblies in India for the new generation vehicles.
3) I.P. REPCO LTD., CHENNAI
A member of Amalgamations Group. Manufacturing Flywheel Ring Gears for entire range of
vehicle
4) KALYANI BRAKES LTD, PUNE
Manufacturers of complete brake systems for automotive applications
5) LUMAX INDUSTRIES LTD
Biggest manufacturers of Automotive Lights in India
6) PRICOL LTD, COIMBATORE
Automotive instruments & speedometer cables in India.
7) FENNER INDIA LTD, CHENNAI
Largest manufacturer of Belts and OIL Seals in India


C. Primary activities at Maruti Suzuki

i. Inbound Logistics

Inbound Logistics i.e. the receiving and warehousing of raw materials, and their distribution
to manufacturing.
Maruti Suzukis inputs primarily comprise raw materials and purchased components. Raw
material includes rubber, glass, steel, plastic, aluminum. Tyre, windshields, and airbags are
example of parts or components. The company has implemented tierization of suppliers and
Just in Time supply logistics.

In order to improve quality and generate economies of scale, MUL has reduced the number of
vendors of components in India from 370 as of March 31, 2000 to about 100 as in 2005. By
lowering the time and cost involved in dealing with more vendors, they have increased their
supply chain efficiencies In case of repair and replacements, costs of defective components
supplied are borne by the vendor.
Information systems - Vendors are linked through the Internet-based information
network, which maintains online information regarding order status and delivery
instructions. These have helped in reducing both inventory levels and lead times
required for the supply of various components.
The Company worked hard along with its vendors on cost reduction initiatives. The
key initiative was a raw material yield improvement program with a micro focus on
each component on the lines of Suzuki philosophy. Called One Component One
Gram, this program calls for weight reduction of one gram for every component.
Over 76% of the companys 246 suppliers are located within 100 kilometers of radius.
This has facilitated cost reduction in supply chain.
Maruti-Suzuki gets involved in establishing suppliers, supplier JVs with local
suppliers and asks Japanese suppliers to do the same. For instance, Maruti Suzuki
formed a joint venture with 'Futaba Industrial Co., Ltd.' (Futaba) for manufacture of
Exhaust Systems Components (ESCs).
ii. Operations

Transform inputs into final product form through machining, packaging, assembly,
equipment maintenance, testing, printing and facility operations.
Production process at Maruti Suzuki:
Maruti Suzukis manufacturing facility consists of fully integrated plants with
flexible assembly lines located at Gurgaon. The scale and complexity of the
Company's manufacturing operations have now moved to a different league. The
Company reached a capacity of one million cars annual production in 2008.
Maruti Suzuki has implemented Production Management System, which is a
strategy to achieve Manufacturing Excellence evolved through participative
approach


iii. Outbound Logistics

Are the activities required to get the finished product to the customer, including collecting,
storing, physically distributing, material handling, delivery vehicle operation, order
processing and scheduling.
The Company has jointly developed with the Indian Railways, special Auto Wagons, to
support a high capacity, high speed and safe car transportation system.
To support its export shipments, the Company commissioned a dedicated Roll-on Roll-off car
terminal at Mundra sea port in partnership with MPSEZL (Mundra Port and Special
Economic Zone Limited).

iv. Marketing and Sales
Provide means by which buyers can purchase the product and inducing them to do so, such as
advertising, promotion, sales force, quoting, channel selection, channel relations, and pricing.
Marutis marketing objective is to continually offer the customer new products and services
that:
Reduce the customers cost of ownership of our cars; and
Anticipate and address the customers needs and preferences in all aspects and
stages of car ownership (MARUTI SUZUKI refers to this as the 360 degree
customer experience
Maruti Suzuki has been aggressively cutting prices of its models. The rationale
behind the price cuts is the focus on offering new upgraded vehicles at a low
price.
Maruti Suzuki offers a two-year warranty on all the vehicles at the time of sale.
The dealers are required to address any claim made by a customer, in accordance
with practices and procedures prescribed by MARUTI SUZUKI, under the
provisions of the warranty in force at that time.
Maruti car for a new Maruti car or upgrade to a new Maruti car.
True Value Solutions Limited (TVSL), which was incorporated on January 14,
2002 as a wholly owned subsidiary of Maruti, provides value-added services to
owners and users of motor vehicles on matters relating to manpower services with
regard to recruitment, training and development. The company also intends to
promote the business in the areas of pre-owned cars, lease and fleet management,
finance and insurance.
MARUTI SUZUKI has the largest network of dealers amongst car manufacturers
in India. Sales network is linked with the MARUTI SUZUKI through the secure
extranet based information network
The performance of the dealers is followed and improvements are suggested
frequently. In order to assist the dealers in enhancing their performance and
capabilities, MARUTI SUZUKI has introduced a concept of Balanced
Scorecard. Using this tool, the performance of a dealership in several areas of
operations, including sales, service, spares and accessories, financial management
and management systems is measured.


v. Service

Aims to enhance or maintain the value of the product, such as installation, repair, training,
parts supply, and product adjustment.
Maruti Suzuki is one of the companies in India which has a huge distribution network.
Today it has 802 dealerships across 555 towns and cities in India.
To ensure proper after sales service Maruti Suzuki has 2,740 workshops (including
dealer workshops and Maruti Authorized Service Stations) in 1,335 towns and cities.
It has 30 Express Service Stations on 30 National Highways across 1,314 cities in
India.
Over the last few years, the company strengthened the existing practices and
experimented with many new initiatives by way of kaizens (continuous
improvements) to delight its customers. These initiatives ranged from product design
and quality to network expansion, and included new service programs to meet unsaid
needs of customers
As a benchmark for dealers with respect to service quality and infrastructure facilities,
MARUTI SUZUKI has launched service stations under the brand Maruti Service
Masters or MSMs.
MARUTI SUZUKI also has service stations on highways in India under the brand
Express Service Stations. To promote sales of spare parts and the availability of
high quality, reliable spare parts for its products, spares are sold under the brand name
Maruti Genuine Parts, or MGP.
In recent years, the Company has used IT to enhance interface with the customer. It
has deployed a world class Dealer Management Solution across its vast network of
dealers throughout the country.

D. Secondary activities at Maruti Suzuki

vi. Procurement

About three fourth of the car, by value, is outsourced. Any improvement in the car
in terms of technology and design, quality or cost has to essentially include the
Company's vendors and their support. In the year 2007-08, the Company signed
two joint venture agreements with global component manufacturers for cost
reduction through localization of components for Maruti Suzuki cars. The
Company has set up a Suppliers Park in Manesar, close to its car plant on an area
of 100 acres for Just-In-Time supplies.

The second focus area for component cost reduction is raw material yield
improvement across all manufacturing processes, like sheet metal, castings,
forgings and machining. Every component is studied in detail and innovative ideas
are tried, to reduce the input material weight for the same component output. The
total cost of raw material as a percentage of net sales ranges from 15% to 20%.

vii. Technology Development

Technology development includes research and development, process automation, and other
technology development used to support the value chain.
Specific areas in which R&D has been carried out by the company:
Building Full Mode Change Capability
Vehicle Design and Development
Technology absorption, adaptation and innovation :
Localization, development and testing of parts for existing and new models.
Capabilities strengthened in component and vehicle evaluation, benchmarking
and design optimization
Global sourcing and advanced sourcing to get the advanced technologies into
India at lower costs. (Efforts made towards technology absorption, adaptation
and innovation by either local vendors or helping world-leading component
suppliers to set up shop in India).

viii. Human Resource Management

Activities associated with recruiting, training, development and compensation of employees.
The Company's key strength is its human capital. The Company has, during 2012-13,
spent about Rs.10 crores on training of its employees. The Company conducts
programs such as "Bulandi" and "Chunauti" for the workmen and technicians to
enhance pride in being an employee of the Company and also to create team synergy.
The Company goes further and trains its dealers' and vendors' workforce. 3200
programs have been conducted covering more than 13000 dealers' sales persons. The
Company's "Maruti Centre of Excellence" (MACE) is a team dedicated to the
development of vendors' employees. In programs like "Family Connect" and "Parivar
Milan", family members of the employees are invited to interact with top management
to get a feel of the workplace and environment
The Company strengthened the concept of Stay Interviews (as opposed to exit
interviews); to understand employee aspirations, delight factors and areas for
improvement.


ix. Firm Infrastructure

Firm infrastructure consists of general management, planning, finance, accounting, legal,
government affairs and quality management
The Company has again been awarded ISO: 27001 Certification by STQC Directorate
(Standardization, Testing & Quality Certificate), Ministry of Communications and
Information Technology, Government of India after re-assessment. The Company is
thus certified to meet international standards for maintaining information security.

Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities
have a combined production capacity of 14,50,000 vehicles annually. During a recent
meeting of the Gujarat chief minister with Suzuki Motor Corp chairman & CEO
Osamu Suzuki,the Chairman had said that the work on car manufacturing plant at
Mandal near Ahmedabad would be started soon. Maruti Suzuki to set up second plant
in Gujarat; acquires 600 acres.

Maruti Suzuki was certified with ISO: 9001:2000 in 2001 and aim to achieve the TS-
16949 certification.




E. MARUTI SUZUKI SUPPLY CHAIN MANAGEMENT

Maruti Suzuki is one of the most successful stories in supply chain management in the Indian
automobile market. The company has 246 local suppliers and 20 global onesThey all function
in a seamless manner



MARUTI SUZUKI SUPPLY CHAIN PROCESS

x. UPSTREAM: SUPPLY CHAIN DESCRIPITON & ROLE



xi. MIDSTREAM: Automakers/Vehicle Manufacturers/Original Equipment

Manufacturers (OEMs)
Researching consumers wants and needs, automakers begin designing models.
Companies have manufacturing units where engines are manufactured and parts
supplied by first tier suppliers and second tier suppliers are assembled.
Automakers are the key to the supply chain of the automotive industry.

xii. DOWNSTREAM: LAST PHASE OF SUPPLY CHAIN

Dealers: Vehicles after ready are shipped to the authorised dealers of the companies.
The dealers then sell the vehicles to the end customers.

Parts and Accessory: These companies provide products like tires, windshields, and
air bags etc. to automakers and dealers or directly to customers.

Service Providers: Services to the customers include servicing of vehicles, repairing
parts, or financing of vehicles. Many dealers provide these services but, customers
can also choose to go to independent service providers.



Third Tier
Suppliers
Companies provide basic products like rubber, glass, steel,
plastic and aluminium to the second tier suppliers.
Second Tier
Suppliers:
These companies design vehicle systems or bodies for First Tier
Suppliers and OEMs. & Services which include welding,
fabrication, shearing, etc.
First Tier
Suppliers:
These companies provide major systems directly to assemblers.
First tier suppliers are responsible management of second-tier
suppliers
MARUTI SUZUKI NEW SUPPLY CHAIN
To support the growing business, Maruti needed a transparent system to interact with
its partners abroad.
Started using a combination of Unix Shell programming, Oracle forms, .Net, and
Windows FTP technology.
The project covers the entire process from when a distributor orders a vehicle to
production to shipment.
Provided all stakeholders complete visibility of an order's progress.
Updated distributors' systems to facilitate their dispatch planning.
Facilitates electronic transfer of orders and acknowledgements.
Communicates the daily progress of a production plan, and dispatch status to the
distributor

F. KEY FACTS OF NEW SCM

The entire process is IT driven and any exception during production, planning,
and factory dispatch can be traced and corrective action made with no delay.
The new supply chain has helped it achieve substantial cost reduction, from
production to distribution.
Prime driver with the supply chain project was to increase customer base in the
current economic downturn.












3. Recommendations

Most B2B decision makers turn to social media, particularly Facebook and LinkedIn to chat
with/exchange information with other individuals rather than to access links to published
content, says the Buyersphere survey report 2012 by Base One, which polled 800 B2B
decision makers. On the other hand, Twitter seems to be popular for both purposes.


1. Aligning itself to the Governments vision of adopting and strengthening usage of
solar power, car market leader Maruti Suzuki India Limited has commissioned its 1-
MW mono-crystalline photovoltaic solar power plant at its Manesar facility. Built
with an investment of INR 10.3 crore, the 1-MW photovoltaic solar power plant will
help the company offset CO2 emissions to the tune of over 1200 tonnes annually.
a. Showcasing such an initiative on social media will help Maruti increase
awareness among its stake holders that not only it is one of the huge
automobile producer but also an organization which cares about the
environment.

2. To develop a meaningful and commercially rewarding social media enterprise, B2B
companies have to move away from the departmentalization of social media as just
marketing for PR exercises, and embrace the social networks right across their
businesses. Social media today needs to be part of the DNA of every B2B
organization

3. No need for third party vendors: Martell Home Builders is an Atlantic Canadian
custom homebuilder. In the past, Martell relied heavily on realtors to keep their
business moving forward. However, once they embraced social media, they were able
to create a direct-to-consumer model where they were no longer reliant on a
middleman to bring them business

4. Ford communicates directly with retailers via marketing and sales, making social
media an easy fit.

5. Other areas in which social media is typically used are human resources, investor
relations. Maruti Suzuki can certainly take advantage of these two areas.

o
I nvestor relations:
The task of investor relations is essentially to provide company information to
current and potential investors. Social media is quickly adapted as another way for
such executives to accomplish their goals. The medium allows for succinct, real-
time posts on quarterly earnings, stock prices, and strategic moves. The 140-
character limit on Twitter forces experts to post concise statements about the
financial state of the company, benefiting investors who want just the highlights,
not pages of formal reports. The format also helps provide simpler translations for
newcomers to investing.

Another asset for both investors and investor relations executives is StockTwits,
which was named one of the Top 50 best websites by Time in 2010. The site aims
to organize information related to stocks and markets to be used by investors,
analysts, and media.


6. Avoid post or tweets which are SALES CENTRIC
It is definitely frustrating to see a Maruti Suzuki constantly promoting its products or
services rather than really taking efforts to engage with the fans or followers through a
good story. It isnt a crime to promote your product or services but its a crime if it is
right in the face of a reader. Build a nice story and then subtly promote their brand. The
impact would be 2x than a normal sales post.
Key point: Maruti Suzuki will be noticed more if it is promoted through a nice story.
7. Explore an Integrated Campaign Idea and not social media specific idea.

Addition:

The other challenge manufacturers face in adopting social media is the very
distributed, complex nature of manufacturing itself. If a manufacturer has 500,000
parts that end up in thousands of OEM products, how does it craft global messages
to encompass all of those products?
To overcome this challenge, manufacturers can use social media to tell "stories" that
indirectly promote their businesses, without getting into the details of individual parts
or products