Price Point Strategy

In this post I would like to highlight the strategy adopted by Maruti Udyog Limited (MUL) to dominate the market. It follows a price-point-strategy where in they have products available in almost all possible price points. If one were to study the number of variants and products available

1. Maruti800 from 198460 to 222272 (4 variants, including the metallic & non-metallic)
2. Alto from 239029 to 294175 (6 variants, including the metallic & non-metallic).
3. Zen Estilo from 325626 to 383162 (6 variants, including the metallic & non-metallic).
4. WagonR from 332982 to 456815 (14 variants, including the metallic & non-metallic).
5. Versa from 368162 to 479419 (3 variants)
6. Esteem from 451374 to 516 (3 variants)*
7. SX4 from 625000 to 731000 (3 Variants)
8. Swift from 405763 to 531458 (7 Variants)
9. Grand Vitara from 1393805 to 1493085 (2 Variants)

* Withdrawn

A total of 46 variants covering the price range from sub 2 Lakh to 7310000, and two variants in the 14-15 lakh bracket....

And further the news paper reports on the future plans of the company says that it has plans to introduce Swift Sedan shortly , which will be priced lower than SX4, It also plans to launch a big car in the range of 10-12 lakhs which seems to be an apparent whole in the price range offered by the company.

The logic provided by the company is that this strategy enables them to ward-off competition, retain customers in their fold when they want to upgrade and to give a feeling to the customers that MUL can provide them with variants at all price points.

The question which comes to my mind is this based on understanding the needs of the customers of a strategy driven by competition and market forces.....??