CAN MARUTI DO AN APPLESource : Business Standard 13/feb/2017

Presented byVishnu Rajoriya

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WHY MARUTI LAUNCHED NEXA SHOWROOM

1. Till now maruti has been known as value for money cars.

2. They has market share of 51% among compact cars.

3. Swift, Alto , 800 are the few cars which was huge success in past.

TOP TEN BEST SELLING COMPACT CARS IN INDIA (MARCH 2016)1) Maruti Suzuki Alto - 22,101 units

2) Maruti Suzuki DZire - 17,796 units

3) Maruti Suzuki Wagon R - 14,577 units

4) Maruti Suzuki Swift - 14,524 units

5) Renault Kwid - 9743 units

6) Hyundai Grand i10 - 9544 units

7) Maruti Suzuki Celerio - 8859 units

8) Hyundai Elite i20 - 8713 units

9) Maruti Suzuki Baleno - 6236 units

10) Honda City - 5662 units

CHANGING LANDSCAPE OF INDIAN AUTOMOBILE MARKET Over the past few years Indian market has been changed from

“kitna deti hai” to “kesi dikhti hai” and “kya kya features hai”. With the increase in purchasing power of people, changing needs

of consumer, intense competition, auto manufacturers have started positioning themselves in terms of looks, features, aftersales services etc.

Many company’s have started to segmenting market on the basis of variable like gender, age, user status, lifestyle etc.

In past few year a niche segment of second and third time buyer has been emerged in industry who are already having a sedan or SUV at home but want’s to buy a compact cars.

LAUNCH OF NEXA Maruti launched NEXA showroom in 2015 to deliver a “premium

car buying experience” for it’s premium customers. Maruti has launched cars like Ciaz, ignis, s-cross, and baleno to sell

through nexa showroom. Main reason for launch of nexa is to bring back those 55%

customers who are not returning to maruti for second or third car purchase.

Therefor maruti want’s to cater to niche segment of second or third car buyer delivering a premium car buying experience.

Through nexa maruti also looking for repositioning itself from a “value for money mass market car” to “Premium”

SEGMENTATION AND TARGETING:- For segmentation maruti has used variables age, Income, user

status, lifestyle etc. Maruti is currently targeting following segment.

Segmentation variable

Targeted segment

1. Age 25-35,35-55,55+2. Income 500000-800000,800000+3. User status First time, Second Time,

Third Time4. Lifestyle Tech Savvy, Achievers,

hedonist, Social rational and Self Directed

PRODUCTSCar Ciaz Ignis baleno S-crossSegment Sedan, First

time and Second Time Buyer, 800000+, Social rational and achievers

Compact, Young, first time buyer, tech savvy, 500000-800000

Hatchback, First time and second time buyer, 800000+, Achievers and social Rational

Mini Suv, First time buyers, 800000+, high income

Competitor Honda City, Amaze, Verna

Swift, Renault Kwid, I10

Duster, kwid, grand i10, elite i20

Ecosport, vitara, I20 active

PRICING AND FEATURESCar Price FeaturesCiaz 8-10

lakhsKeyless push start system · Smartplay System · Rear AC vents · 360° view · Navigation System

Ignis 4-5.5 lakhs

Android auto, Apple CarPlay & Mirror link with Auto Gear Shift

Baleno 6-7 lakhs Dual Air bags, Navigation System, Seat Belt Pretensioner and ABS

S-cross 10-12 lakhs

Dual Airbags, Seat Belt Pretensioner And ABS

PLACE(NEXA)

• They are differentiating themselves using place.

• They want to deliver a premium experience to customer while purchasing of car.

• Maruti have names it as NEXA.

• Only premium model are to be sold though these NEXA showroom

PROMOTION NEXA Music Lounge:- they are collaborating with various singers to

records tracks. Also launching these tracks through live performances in various cities. These tracks are uploaded on their websites. Various artist like vishal dadlani, alanis morisette etc. have already recorded songs with them.

Baleno Wicked Weekend:- Maruti also organizing DJ nights, music toors in various cities to promote baleno based on theme “Enjoy your Bold Side”.

They are also promoting their products in various sports events, malls.

They are using YouTube, Facebook, and other social marketing platform to reach their market segments.

COMPETITORS

CONCLUSION Baleno has been quite successful in past 6 months with overall average sell

of 10,000 cars but still not able to achieve a status symbol like apple iphone. Main reason behind launch of Nexa is Image building rather than of driving

Volume. It could have achieved status like apple. apple if the positioning could have

been little sharper. Maruti already have high market share now they can increase their profit

only by increasing margin. For which they have to charge premium. That’s why they have launched nexa to charge premium price from premium customer for premium cars

These cars are mainly targeted at Second time buyers. Maruti can also differentiated on the basis of Accessories, After Sales etc.