In 1983, its competitors were the outdated Ambassadors and Padminis. Now it competes with the likes of EON, U-VA, Figo and Micra. Tomorrow, it may well compete with the Mercs and the Beamers (who knows?). 4Ps B&M documents the brand journey of Maruti Suzuki in India
Since 1991, India has moved on from being a market that most MNCs considered untouchable to one that has become inevitable for most of them. Although a number of the first movers have felt the heat, a precious few have also been amply rewarded.
Maruti Suzuki is one instance you just can’t miss, and as predicted, it is also the #1 MNC in India in revenues, boasting annual sales of around Rs.362.99 billion with profits of over Rs.46.84 billion (FY2010-11). While names like Nokia and Vodafone are relatively close followers with annual sales of Rs.230 billion and Rs.220 billion respectively, the fact of the matter is that Maruti has been able to dominate the hearts and minds of Indian consumers over the past 28 years despite the competition growing by leaps and bounds. However, the journey has not been easy by any means. 4Ps B&M brings to you how the brand has evolved in the country and what makes Maruti Suzuki big enough to be an unbeatable force in the Indian market.
Small is beautiful
Soon after the Maruti 800 paved its way onto the Indian turf, the price-conscious Indian consumer was instantly enamoured by its value proposition. When pitched against the bulky Ambassadors and the Padminis, it was light in weight. As compared to its gas-guzzling counterparts, it was fuel-efficient. In the era of obsolete technology, it was a performance-driven marvel. And for Indians deprived of excitement and innovation, it was a dream come true from the technology leaders, i.e. the Japanese themselves.
Little wonder then that it turned out to be an outstanding start for this Sanjay Gandhi brainchild, but there was much more to come. Just a few years after Harpal Singh, an ex-Air India employee got the keys of the first Maruti 800 from the-then Prime Minister Indira Gandhi in 1983, Maruti Suzuki realised how marketing could be a critical driver of its success in the automobile industry. “The pre-Maruti era definitely belonged to Ambassadors and Padminis but the technology & price point of Maruti 800 revolutionised the way the business of automotives was done in India,” admits a former employee of Hindustan Motors.
The first campaign from its stable was done by Hindustan Thompson (now JWT) in 1989 for the Omni, which aimed at positioning the car as a passenger vehicle. The company found that the looks and size of the product were giving it a rather commercial appeal. While the campaign, which was shot in the factory premises in Gurgaon, featuring the renowned model Malvika Tiwari, it focused only on the print media. Even then, many in the industry opposed the idea of a marketing campaign; citing it as an unnecessary effort, since there was no practical competitor for the company in the industry. However, Maruti was fully convinced about the potential of the product and didn’t want to take any chance with the same. “It did help in changing the positioning (though partially). Our research shows that 44% of Omni users still use the product for dual purposes (both commercial and personal) while the rest of them are using it for personal purpose,” comments Shashank Srivastava, Chief General Manager – 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.
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Management Guru Arindam Chaudhuri
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IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
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IIPM: Indian Institute of Planning and Management
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Planman Technologies
Since 1991, India has moved on from being a market that most MNCs considered untouchable to one that has become inevitable for most of them. Although a number of the first movers have felt the heat, a precious few have also been amply rewarded.
Maruti Suzuki is one instance you just can’t miss, and as predicted, it is also the #1 MNC in India in revenues, boasting annual sales of around Rs.362.99 billion with profits of over Rs.46.84 billion (FY2010-11). While names like Nokia and Vodafone are relatively close followers with annual sales of Rs.230 billion and Rs.220 billion respectively, the fact of the matter is that Maruti has been able to dominate the hearts and minds of Indian consumers over the past 28 years despite the competition growing by leaps and bounds. However, the journey has not been easy by any means. 4Ps B&M brings to you how the brand has evolved in the country and what makes Maruti Suzuki big enough to be an unbeatable force in the Indian market.
Small is beautiful
Soon after the Maruti 800 paved its way onto the Indian turf, the price-conscious Indian consumer was instantly enamoured by its value proposition. When pitched against the bulky Ambassadors and the Padminis, it was light in weight. As compared to its gas-guzzling counterparts, it was fuel-efficient. In the era of obsolete technology, it was a performance-driven marvel. And for Indians deprived of excitement and innovation, it was a dream come true from the technology leaders, i.e. the Japanese themselves.
Little wonder then that it turned out to be an outstanding start for this Sanjay Gandhi brainchild, but there was much more to come. Just a few years after Harpal Singh, an ex-Air India employee got the keys of the first Maruti 800 from the-then Prime Minister Indira Gandhi in 1983, Maruti Suzuki realised how marketing could be a critical driver of its success in the automobile industry. “The pre-Maruti era definitely belonged to Ambassadors and Padminis but the technology & price point of Maruti 800 revolutionised the way the business of automotives was done in India,” admits a former employee of Hindustan Motors.
The first campaign from its stable was done by Hindustan Thompson (now JWT) in 1989 for the Omni, which aimed at positioning the car as a passenger vehicle. The company found that the looks and size of the product were giving it a rather commercial appeal. While the campaign, which was shot in the factory premises in Gurgaon, featuring the renowned model Malvika Tiwari, it focused only on the print media. Even then, many in the industry opposed the idea of a marketing campaign; citing it as an unnecessary effort, since there was no practical competitor for the company in the industry. However, Maruti was fully convinced about the potential of the product and didn’t want to take any chance with the same. “It did help in changing the positioning (though partially). Our research shows that 44% of Omni users still use the product for dual purposes (both commercial and personal) while the rest of them are using it for personal purpose,” comments Shashank Srivastava, Chief General Manager – 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 Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-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
IIPM RANKED NO.1 in MAIL TODAY B-SCHOOL RANKINGS
Planman Technologies
