Quote:
Originally Posted by GTO Hahaha, such kind of articles always have me Classic case of pain being on the left hand and balm being applied to the right hand.
Maruti's bigger sedan (i.e. SX4) and 10+ lakh products failed NOT because of image, but because of product. Facts:
1. The SX4 was actually a good seller in the initial years. It was launched against the 2nd-generation Honda City (dolphin shape). Eventually however, the SX4's sales slowly declined, and it became a flop. Why? The product got too old! In the time that Maruti sold the SX4, Honda brought out two new generations of the City, VAG got the Vento / Rapid & Hyundai its successful Verna. The SX4 diesel also came much too late. And, by current standards, the interior quality is too cheap. Even the less expensive Dzire has better interiors than the SX4.
2. Maruti's premium products were destined to fail. The Kizashi was overpriced by 5 lakhs and didn't have a diesel option, while the Grand Vitara saw consistent price hikes and didn't have a diesel either. The Grand Vitara today is a 10 year old design! Who on earth buys a 10 year old overpriced product today? You're right....no one!
Hyundai didn't do anything magical to its image, neither did Mahindra. Yet, both these manufacturers saw success (Elantra, XUV500 etc.) in the 15 lakh segment, on the strength of the product alone.
Maruti's strategists must be smoking some pretty heavy stuff if they think image or fancy sales talk will sell their expensive cars. Ever bought an XUV500 lately? In fact, Audi showrooms are notorious for offering the worst sales experience, yet their cars sell. It's the product, stupid. And the product strategy is what you got all wrong (SX4 & up).
Call one section 'ELITE' means the other becomes 'CHEAP'. Not a good strategy. You don't discriminate between customers in the same showroom.
Lexus' success formula lies in opening separate showrooms altogether, not separating customers in the same showroom. |
Perfectly summed up everything, and I think this analysis should be forwarded to Maruti, if they are really serious about cracking the premium market. I seriously request GTO sir to kindly do so, as you might be having interaction with Maruti's head bosses.
I am a 4th year B.Tech student, still I don't need to go to a B-school to understand why premium Marutis have failed. I can guarantee, that even with a 10+ yr old design, Maruti can still make GV or for that matter, Kizashi a success. What Maruti needs to do-
1. Dump that ideology, that you'll test waters by launching a CBU and start production locally if demand is good. Unless pricing is good(unlikely with a CBU), a product will fail, and then you'll blame image for its downfall, really?
So, to make GV or Kizashi a success, start local production and price it competitively from Day 1. Indian market is too ruthless to give second chance-classic examples being Baleno and New Fiesta.
2. Plonk in a good diesel, like the 1.9 DDiS. A good product to sell consistently needs to have a differentiating factor.
3. Improve interior quality- Kizashi has a great interior, but GV looks seriously old inside. Spruce up the interiors periodically, like maruti does on its hatches(bread and butter models). SX4 was virtually unchanged while Swift had a full generation change after 6 years.
Just follow these simple steps, and see your premium offerings flying from the showroom. Even the GV and Kizashi
WILL sell, which have been called as failures.
I can't believe that India's largest car maker is unable to understand such a simple thing.
![DeadHorse](https://www.team-bhp.com/forum/images/smilies/deadhorse.gif)