Friday, August 08, 2008

A global versus a local ?

There is a huge legacy behind that ‘S’ logo you see on the grill of that omnipresent Swift. This is the same piece de resistance adorning the bulging, yet classy tank of that elusive Hayabusa GSX R1300, one of the most powerful street bikes ever! The ‘S’ sign is a symbol of raw power, virility, waiting to be unleashed at a throttle’s notice and is indeed coveted. With such a potent definition, this explosive logo has a brand image which is hard to match when it comes to the ‘must have list for men’; and evidently, Suzuki is proud of its testosterone inducing moniker.

Interestingly, the same logo finds itself globally on Suzuki’s cars as well (which, however, are not perceived in the same league as the bikes); but not in India! Maruti, which is Suzuki’s Indian four wheeler operation and arguably the largest, until recently, had quite resiliently used its own version of Suzuki’s logo. Though the dual-winged logo was the centre piece on the Marutis of yore, now the sign of ‘S’ is back with a vengeance. With a 54% controlling stake, Suzuki now wants its coveted logo to do the honours on Maruti’s vehicles in India; and this is highly visible now. “All questions relating to branding and logos depend on brand image and how you want to use it. Different brands are used for different markets. The company in India has always been branded as Maruti Suzuki, and here, it has become a very strong brand,” said R.C. Bhargava, Chairman Maruti Suzuki, to 4Ps B&M while speaking on the topic of the ‘S’igns. Considering the growing ‘eminence grise’, as a company, Maruti is indeed changing, and the Japanese way of things is more than evident.

Considering cost benefits and unsurpassed market knowledge, Suzuki understands its paragon position in India and like any other effective strategy, would like to leverage this to full potential. But critically, Suzuki should realise that Maruti Suzuki will be under heavy shelling from the competition, whether it likes it or not. And it’s not just projects like Tata’s 1-lakh car that we’re talking about; even companies like Renault/Nissan and Bajaj already have their small car planned (the highly secretive ULC project)! Maruti’s small cars will suddenly find themselves competing against above of 1,000,000 units unleashed into the market against them (combined capacity of the mini cars of these new players). The only solution, according to industry experts, is capacity utilisation and if need be, ‘export oriented’ expansion.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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