From a high of above 90%, Maruti’s market shares are now down to the mid 40s. Is Suzuki focused more on making Maruti a globally selling company? Has Suzuki decided to relegate the ‘Maruti’ brand – and India sales – to a second tier? In the rarest inside scoop, Karan Meherishi of 4Ps B&M meets all top brass at Maruti for a spectacular analysis...
I fathomed it immediately. Evidently, a conceited,
arrogant feeling welcomes you at the Maruti Suzuki office in New Delhi as soon as you enter their premises. Were they trying to forcefully portray a nuance generally associated with their professed invincibility and confidence? That, I couldn’t quite a lay a hand on; but I could say this that the ambience of the office, even though copied hook, line and sinker out of the sets of ‘That 70s Show’ (don’t bother if you’ve not seen it) was as straight in your face as Groucho Marx spouting, “Take it or leave it!” Well, I’ve seen the competition (I mean their offices). Modest, agreeable, comforting? Surely! Explicitly overpowering? Umm, no!
Amused and ‘curiouser’ like Alice from these subtle – and obviously useless – differences in wonderland, I gatecrash into a meeting with Mayank Pareek, Executive Officer, Maruti Suzuki. Mayank is right there at the top of Maruti, fourth in line after R. C. Bhargava (Chairman), S. Nakanishi (MD & CEO) and S. Oishi (Director, Marketing). Pleasantries aside, I jump directly to ‘the’ question, “Mayank, aren’t you threatened by your competition’s strides in your way?” His answer was definitely a shot from the hip, “Last year in 2007-08, we gained by about 1%, Tata lost by 5% and Hyundai lost by 1%. Our share is more than the sum total of all put together [well, almost: Ed]. So what strides are you really talking about? In the A2 segment, everybody is there and our market share is 62%. We can’t be more competitive than that or can we?” Uhh... Did I start with a wrong question?
Despite my undercurrent of disapproval, it is a fact that Maruti’s Rocky Balboa-in-your-face superiority complex seems to be completely and rightfully earned. Visibly, there is obviously a timeline between the two top selling models of Maruti, the radical SX4/Swift and the 800. The timeline not only represents an epoch of automotive evolution but also a legacy that defines a great consumer-manufacturer relationship. Maruti Suzuki has been in existence for two and a half decades, subsequently earning a rock solid reputation and market goodwill few can match. With a market share hovering close to 47%, Maruti has been the undisputed leader of the Indian auto manufacturing fraternity for eons now. However, the entry of South Korean major Hyundai and home grown Tata Motors is clearly mounting pressure on Maruti; and hostilities are now more pronounced than ever. I knew that my argument could be considered dismissive, but the question is a hitting one, “Will Maruti continue its utter dominance of the Indian market in the near future? Or will the forces of competition pre-emptively catch up with this behemoth?” Like the ad nauseum debate on ESPN whether Federer or Sampras is the greatest tennis player of all times, my question was directly oriented at how well were Maruti’s brands (statistics aside) emotionally targeted at different segments; and my investigations had just started...
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
I fathomed it immediately. Evidently, a conceited,
arrogant feeling welcomes you at the Maruti Suzuki office in New Delhi as soon as you enter their premises. Were they trying to forcefully portray a nuance generally associated with their professed invincibility and confidence? That, I couldn’t quite a lay a hand on; but I could say this that the ambience of the office, even though copied hook, line and sinker out of the sets of ‘That 70s Show’ (don’t bother if you’ve not seen it) was as straight in your face as Groucho Marx spouting, “Take it or leave it!” Well, I’ve seen the competition (I mean their offices). Modest, agreeable, comforting? Surely! Explicitly overpowering? Umm, no!Amused and ‘curiouser’ like Alice from these subtle – and obviously useless – differences in wonderland, I gatecrash into a meeting with Mayank Pareek, Executive Officer, Maruti Suzuki. Mayank is right there at the top of Maruti, fourth in line after R. C. Bhargava (Chairman), S. Nakanishi (MD & CEO) and S. Oishi (Director, Marketing). Pleasantries aside, I jump directly to ‘the’ question, “Mayank, aren’t you threatened by your competition’s strides in your way?” His answer was definitely a shot from the hip, “Last year in 2007-08, we gained by about 1%, Tata lost by 5% and Hyundai lost by 1%. Our share is more than the sum total of all put together [well, almost: Ed]. So what strides are you really talking about? In the A2 segment, everybody is there and our market share is 62%. We can’t be more competitive than that or can we?” Uhh... Did I start with a wrong question?
Despite my undercurrent of disapproval, it is a fact that Maruti’s Rocky Balboa-in-your-face superiority complex seems to be completely and rightfully earned. Visibly, there is obviously a timeline between the two top selling models of Maruti, the radical SX4/Swift and the 800. The timeline not only represents an epoch of automotive evolution but also a legacy that defines a great consumer-manufacturer relationship. Maruti Suzuki has been in existence for two and a half decades, subsequently earning a rock solid reputation and market goodwill few can match. With a market share hovering close to 47%, Maruti has been the undisputed leader of the Indian auto manufacturing fraternity for eons now. However, the entry of South Korean major Hyundai and home grown Tata Motors is clearly mounting pressure on Maruti; and hostilities are now more pronounced than ever. I knew that my argument could be considered dismissive, but the question is a hitting one, “Will Maruti continue its utter dominance of the Indian market in the near future? Or will the forces of competition pre-emptively catch up with this behemoth?” Like the ad nauseum debate on ESPN whether Federer or Sampras is the greatest tennis player of all times, my question was directly oriented at how well were Maruti’s brands (statistics aside) emotionally targeted at different segments; and my investigations had just started...
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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