OFFERING JUST WHAT THE MARKET WANTS!

Maruti today promises more to its customers than just hatchbacks and a great after-sales service; It offers variety at varied price points. most importantly, it doesn’t go over the edge trying to deliver more than what its customers want.

With Maruti Suzuki, the torchbearer of the Indian automobile brigade and the fifth-most valuable brand on this year’s 4PS B&M Most Valuable Brands list, it has been a consistent drive to build consumer trust and loyalty. But it wasn’t an easy start. When it began its journey on the Indian soil, most would have used their mega-sized scissors to cut short any argument which defended the fact that Indians would prefer hatchbacks. Those were the days of the Ambassadors and the Padminis fitting the pockets of the high-gentry, and the Indian masses had accepted this fact. But instead of shying away, it chose to stick on. Since then (when its first model Maruti 800 was launched in 1983), this Indo-Jap giant has made its way into the hearts of millions in the country. To talk about dominance, today, even a market share shy of the 50% margin bothers Maruti. And when it comes to brand equity, ask a middle-class Indian about the car brand he trusts the most. The answer, in all probability, will be – Maruti! Between its early days when the company pulled the ground from under its competitors feet, till the advent of the likes of Hyundai and Daewoo, the ‘People’s carmaker’ had literally ruled the Indian passenger car market. For this brand, the goodwill building process wasn’t a year-long drill or a scrabble-game lasting a few years. It has been on the task for close to three decades now. Also, while players like Mahindra (which has tied with up Ford and Renault in the past) have had a bitter experience of joining hands with foreign players, Maruti’s JV with Suzuki has not only given it the technology leverage, but has also helped build a perception in the minds of the consumers that the mid-range Maruti car that they are driving, actually runs on a high-quality Japanese engine. Talking about the success of this JV, R. C. Bhargava, Chairman, Maruti Suzuki India says, “This JV has been successful in building a strong brand for us till date because in this case, both the parties are bringing their respective expertise to the table, to work for the benefit of the JV, rather than looking at getting the other party out.”

Till date, all that Maruti has done is play to the gallery. It gives what Indian consumers desire. There is no question of over-delivery and no doubt about its positioning strategy (which has been – selling at affordable pricing points). Forget about its customer-pleasing and brand-building launches in the past (like the 800, the Zen, the Omni, the Alto, the Swift, the DZire and the SX4), even during the past year, this automaker has worked towards retaining the crown in the auto industry. During the past 12 months, besides the launch of another version of its hit Alto (Alto K10), the carmaker has announced plans to roll-out CNG versions of the Alto, the Estillo, the WagonR, the SX4 and the EECO. What more can make the price-sensitive and fuel-cost minimising Indian consumers happy? Such moves also prove that that company is conscious of the fact that 15% of its sales come from Tier II & III locations. “Even in the past 12 months, Maruti has tried to give what the consumer has expected. When they were looking for small cars, the company met the demand. Now we are offering what the evolved consumer wants,”says Mayank Pareek, Managing Executive Officer – Sales & Marketing, Maruti Suzuki. The company has even tried to work towards ensuring that the 21st century customer does not perceive it as a company that makes only hatchbacks. “In recent times, Maruti hastried to reinforce its image as a technologically superior carmaker that offers products at great prices. This has definitely helped the brand,” says Shashank Srivastava, CGM – Marketing, Maruti Suzuki India.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting

IIPM in sync with the best of the business world.......
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management