Nano - Product Management

Observations from the industry in the First Quarter of 2012 – 2013 : * The hatchback segments has totaled to 56 % of the entire passenger car sales in India. This comes to 355857 units. This clearly shows the popularity of smaller cars in the Indian market. Alto continues to be the top selling brand with 17422 in July. It is followed by Swift (11421) and Wagon R (9582) – all Maruti brands. This is an indication of how well the Maruti team has understood the Indian market.

* I 10, I 20, Nano, Beat, Figo, Santro & Polo are some of the high selling models in these segments and these models continue to clock more than 3000 units monthly. * Nano has been a disappointment so far with huge expectations but it is showing some kind of resilience off late. * The Utility segment is showing the maximum growth. In fact, this segment has outclassed the other popular segments of A, B 1 & B 2. With 128110 units under its hood in the 1st quarter, the segment is definitely making some good progress. Maruti’s Ertiga, Mahindra’s XUV 500 & Bolero has been instrumental in pushing the volumes of this segment.

Innova and Omni too are raking in good numbers * Among the sedans, Maruti Dzire continues to lead the pack. With 11413 numbers in July, it is way ahead of its next model Verna (5300). The iconic models of City, Linea, SX4 have been showing consistent de-growth and seriously calls for some introspection by their respective manufacturers. Vento & Rapid also showed some slack but given the aggression of VW and Nissan, it won’t be long before they start to pull in good numbers. The advertisement campaign for Maruti 800 when it was launched stressed on its affordability.

The first TV commercial's tagline "Mera Sapna Meri Maruti" tried to showcase the rise in consumer's disposable income especially the middle class. The TV commercial aimed to cannibalize sales of two wheelers. It aimed to influence consumers to purchase a Maruti 800 instead of a two-wheeler and promoted the car as an esteemed product. Every individual has certain esteem needs according to Maslow's Theory of motivation and consumers were instantly drawn towards the Maruti 800 and felt that it was an upgrade from their two-wheelers.

Maruti's priority was to stress on how the car was an upgrade to the lives of its consumers. The recent TV commercial of Maruti Suzuki 800 was launched with the tagline, "Change your Life". It showcased the 800 as a stylish new product and stressed on its new interiors, smart headlamps and bright rear lamps. It could not continue to rely on its previous ad campaign of showcasing the car as an upgrade from a two-wheeler since competition has arrived from cheaper cars such as the TATA Nano. It hence aimed to discard its perception of being a low-cost car to a stylish and trendy car for status conscious consumers.