Maruti Versa

Automobile Sector in India

E > According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015. > Global Players > resulting in price reduction

S > Price sensitive customers > Fuel efficient carsT > NATRIP (National Automotive Testing and R&D Infrastructure Projects)

CONTEXT

Automobile Sector in IndiaCONSUMER BEHAVIOUR

DECISION MAKING PARAMETERS:

SOCIAL•Road infrastructure•Life style

ECONOMIC

•Income•Loans

POLITICAL

•Govt budget•Taxation

Automobile Sector in IndiaCONSUMER BEHAVIOURDECISION MAKING PARAMETERS:

PRODUCT & TECHNOLOGY

•Road infrastructure•Life style

DEMOGRAPHIC

•Gender •age

GEOGRAPHIC

•Population density

PSYCHOGRAPHIC

•Interests•Opinions

SEGMENTATION BY UTILITY

Family carPremium carUtility vehicle

In 2001, the segment MPV-Multi Purpose Vehicle was new to the Indian customers.

Maruti Versa

Petrol engine 5 seater to 8 seater 4 variants std, DX, DX2,

SDX 1298 cc engine Twin AC

PRODUCT

5.15 Lakhs to 6 lakhs Matched the price of

entry level sedans, Maruti Esteem.

PRICE

Well established distribution channels and show casing

Direct sales

> exchange offers > discount for large

families

PLACE

Advertisements - ‘BIG B’s in 2001 costing 8 crore INR

Promoting test drives Road shows + Exhibitions Print media ads - leading

national newspapers

PROMOTION

PROBLEMS

1. PRICE Basic model Versa std - 5.15 Lakhs high price ! High end model Versa SDX - 6 Lakhs

• Poor initial sales 808 units/year in 2002

• Average sales of M800 then 95,924 units/year

PROBLEMS

Price reducedJune 2003 - - - 4 Lakhs INRApril 2004 - - - 3.27 Lakhs INR

2002-03 2003-040

500100015002000250030003500400045005000

1950

4291SALES (UNITS)

2. POSITIONING

Initial Launch 2001:

“Two luxury cars at the price of one”

TV ad endorsed by Amitabh and Abhishek Bachan

PROBLEMS

Re Launch 2004:

" Travelling in company in a car has its own kind of fun"

RECOMMENDATIONS1. During Initial Launch

RECOMMENDATIONS

2. During Re-launch: Only price change and no feature change. So

features could have been improved3.External appearance: Not Appealing4. Economic value to customer: with more mileage, diesel model launch5. First mover advantage