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Old 12th March 2014, 16:46   #16
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Default Re: Maruti to set up 'Brand Centers' at upmarket locations across India

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Originally Posted by ad3952n View Post
Dear Mate, To be very frank, for me as an individual, the definition of an up market brand is not confined to it's sales and infrastructure rather up-market brand is one whose cars can be repaired even at road-side shop.
Mate, Tell me one brand which does not have a history of failures. In my view bring any brand into Indian car market and it will fall like a pack of cards when one shall compare it's stats with that of Maruti. Talking about Honda; I as a owner would throw away my City Ivtec because of it's sub standard built quality and terming them as up-market is too good to be true.
Mate, Maruti has earned a reputation for itself by serving the people for decades and in the process it has made itself so strong in financial terms that it can spend on these lavish outlets. Maruti vehicles have been over-booked and I can bet on GTO sir's remark on Maruti's potential as a brand.

Gone are the days when a 800 (ac or non-ac) was the only car one could afford because now the Maruti line-up can give any brand a run for their worth and people pan-India happily own Maruti's different vehicles. Unlike Daewoo whose cars are now mostly found with scrap dealers; Maruti even in worst condition can sell at a better price than any old Italian or German brand.

My above statements are not biased rather I have tried to pacify your thoughts.

Thanks

AD
Totally Agree but i am pretty sure the top managers in Maruti would think about the premium segment for 15-20 lacs and above only. To me even an 8 lac car is upmarket. I am a middle class salaried man and 8-10 lacs is a luxury for me. The main aim of Brand stores would be to push upmarket models in the 1.5 million mark.

It is also typical of managers higher up that chain that they cannot be satisfied. MAruti is india's no 1 car manufacturer. Now they want to go more upmarket. Even if Maruti suceeds in the 1 crore segment, the top management will say "why cant we compete in 2 crore segment".

To the average person, a Toyota badge or honda badge holds more premium than the S badge. This is eveident by poor kizashi sales. Kizashi has sold fewer numbers than CRV. I dont think service station availability plays a too important role. I see so many audis/bmws/mercs on the road even though these service centers are just 5% compared to Marutis.

I have a friend who was looking to spend 20 lacs and was choosing between Aria/Kizashi/Innova. He finally settled for Innova. He told he was not comfortable sharing the lounge with an Indica cabbie. The Same friend was okay to share the lounge with the Innova cabbie. This is how the world looks at a brand.

Maruti has been competitive upto the SX4 and ertiga segment but failed above that. If they need to complete, they could probably start a new upmarket brand like the Toyota-Lexus or Honda-Acura or Nissan-Infinity
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Old 12th March 2014, 19:44   #17
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Default Re: Maruti to set up 'Brand Centers' at upmarket locations across India

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Originally Posted by scopriobharath View Post
I am pretty sure the top managers in Maruti would think about the premium segment for 15-20 lacs and above only. The main aim of Brand stores would be to push upmarket models in the 1.5 million mark.
Dear Mate, After reading the opening post of this thread I would like to say that these brand outlets shall make the customers focus on the new technologies and products. It is to be understood from Maruti's point of view i.e at a brand outlet the Ciaz and the Celerio shall share the same platform. The outlets will be product and technology specific as an entity; not segment specific in my view. Also, At these brand outlets the Alto A.M.T and a Celerio AMT will be seen under the same roof. Brand Outlets will highlight the brand as a whole.

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MAruti is india's no 1 car manufacturer. Now they want to go more upmarket. Even if Maruti suceeds in the 1 crore segment, the top management will say "why cant we compete in 2 crore segment".
It is but natural that a brand wants to grow and explore new markets and segments. I dont see any harm in it.

Quote:
To the average person, a Toyota badge or honda badge holds more premium than the S badge.
It is a individual's choice. And having said this, I dont think that a brand becomes bad or good by the view and choice of one person. The actual respect that a brand earns over the years is based on many more factors like technology, pricing, and after sales.

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This is eveident by poor kizashi sales. Kizashi has sold fewer numbers than CRV.
Firstly, Here you are comparing two different segments. Every segment has it's own buyers. Secondly; Brand image does play an important role here but more important is the positioning of a product. Kizashi suffered not because of poor technology or after sales; it suffered due to wrong positioning which led to low sales figures. And as I said earlier, In India or in the world there is no brand which does not have a history of failures.

Quote:
I dont think service station availability plays a too important role.
No brand can survive without after sales support. Today SKODA is facing the customer's anger because of poor after sales to say the least.

Quote:
I see so many audis/bmws/mercs on the road even though these service centers are just 5% compared to Marutis.
I know people fall for luxury brands but how many? Say out of 100 only 40. Where as the stats of customer base is much higher in the case of Maruti i.e out of 100 atleast 60 people own a Maruti (irrespective of model). So, Economically saying, The luxury brands know their percentage of customers hence they develop their infrastructure accordingly.

Quote:
I have a friend who was looking to spend 20 lacs and was choosing between Aria/Kizashi/Innova. He finally settled for Innova. He told he was not comfortable sharing the lounge with an Indica cabbie. The Same friend was okay to share the lounge with the Innova cabbie. This is how the world looks at a brand.
Again, You are quoting a particular person's idea. But this cannot be a general statement with respect to any brand.

Quote:
Maruti has been competitive upto the SX4 and ertiga segment but failed above that. If they need to complete, they could probably start a new upmarket brand like the Toyota-Lexus or Honda-Acura or Nissan-Infinity
See, Maruti's future plans can not be commented upon but if failures are to be seen then many respected automotive brands have failed in some or the other segments. Example; Toyota failed with Liva (Hatchback) and the Etios (Sedan) and Mahindra-Renault failed with Logan.

I hope I have solved all your queries mate.

Thanks

AD

Last edited by ad3952n : 12th March 2014 at 20:13. Reason: formatting
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Old 12th March 2014, 20:20   #18
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Default Re: Maruti to set up 'Brand Centers' at upmarket locations across India

Seeing the monthly sales figures that are for Maruti, a BIG 45%,

Now with these brand centres what are they looking at? The rest of the 54%?!

Poor Hyundai stands at 16% IIRC, I feel such need the brand centres to gain more market share but Maruti is stable and sowed in the market for life until something tragic happens that uproots them which will never happen.

I am not saying Hyundai or any other company is bad but Maruti needs to focus elsewhere (As BHPian Swiftnfurious said): They need to get the rattles (Trademark of Maruti) off their cars.

Anurag.
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Old 12th March 2014, 21:36   #19
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Default Re: Maruti to set up 'Brand Centers' at upmarket locations across India

I tend to disagree here.

Mahindra too had brand centre but its success is purely because of products like Scorpio and XUV5OO.

If i were the decision maker in Maruti my straightforward decision would be to spend 1000 crore on product development and compete with the japanese levels of quality. the cost should be much much less as Maruti already has a Japanese partner(Suzuki).

If the motto is to buy some real estate with shareholders money then brand centers are the best choice. IF motto is to increase brand value, product quality and upmarket value, dedicated service stations/Relationship Managers are the order of the day.

I, as an informed customer, will select an XUV5OO over the Kizashi anyday just because Mahindra pampers the customer with RM, purple club and other preferential treatment programmes compared to other players. I am perfectly okay with issues and niggles. It is just that i need prefferential service as a premium customer.

Last edited by scopriobharath : 12th March 2014 at 21:42.
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Old 13th March 2014, 00:24   #20
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Default Re: Maruti to set up 'Brand Centers' at upmarket locations across India

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Originally Posted by scopriobharath View Post
Mahindra too had brand centre but its success is purely because of products like Scorpio and XUV5OO.
Dear Mate, Mahindra as an individual entity is doing a great job. But, I pointed out the failure that took place when it was in collaboration with Renault.

Quote:
If motto is to increase brand value, product quality and upmarket value, dedicated service stations/Relationship Managers are the order of the day.
Maruti has got a dedicated service network pan-India. Secondly; Having a Relationship Manager will not give you the surety of a good service.

Quote:
I, as an informed customer, will select an XUV5OO over the Kizashi anyday just because Mahindra pampers the customer with RM, purple club and other preferential treatment programmes compared to other players.
An informed customer will not fall for freebies from any brand. Rather, the aim of that customer/owner will be to get the vehicle serviced properly and be aware of the various technicalities of the vehicle so that he/she cant be taken for a ride by the service station. I disagree on making important decisions just by falling for the short-term materialistic benefits.

Quote:
I am perfectly okay with issues and niggles. It is just that i need prefferential service as a premium customer.
I actually cannot digest the fact that a informed and responsible owner is OK with the issue in his vehicle. As an owner myself; I don't care for prefferential service because in the long run these treatments will be of no use rather what will matter the most is your vehicle. So, instead of all these treatment preferences for myself; I would be happy if my car is treated well at the A.S.C

Thanks

AD

Last edited by ad3952n : 13th March 2014 at 00:35. Reason: spellcheck
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Old 13th March 2014, 06:23   #21
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Default Re: Maruti to set up 'Brand Centers' at upmarket locations across India

Maruti, please give each customer a discount of ~8000 in your car than frittering money like this. Brand centers are required when you have a strong premium portfolio. The Kizashi is history - the Grand Vitara never took off and with petrol prices where they are, neither will fly even if you put ten stupid brand centers or hundred for that matter. till there is a strong premium portfolio, esp with diesels, brand centers are pointless.

and I find it funny that the mass market products' sales (alto/swift etc) will pay for this 1000cr adventure! Nice job Maruti

I'm curious about this concept too - I mean outside of niche high end customers who would want to feel pampered in exclusive environs (read BMW studio) - the average customer's perception of a brand would hardly be affected because of a brand cafe somewhere in town. This reads like an expensive band-aid solution to take a brand upmarket, which requires so many more things!

And relax, Maruti - India loves you anyways.

Last edited by phamilyman : 13th March 2014 at 06:32.
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Old 13th March 2014, 07:17   #22
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Default Re: Maruti to set up 'Brand Centers' at upmarket locations across India

Looks like this time Maruti wants to leave no stone unturned to get into premium segment to repeat what Hyundai achieved.

I wish they display some of their international offerings like Swift Sports (1.6ltr/136 BHP), Jimny, APV etc and also offer performance tuning/upgrades for existing offerings, mainly the Swift.

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Originally Posted by GTO View Post
Is it so? The Indica & Vista and the Indigo & Manza do outsell the Liva & Etios (respectively). The Innova sells because of its indestructible reputation, but the regular passenger cars have proven that the "T" badge isn't enough to get orders.
IMO that's not the correct way to look at the badge value.
Breakup between 'personal' & 'commercial' usage will clear up things.
Also sales figures does not define badge value

Last edited by HammerHead : 13th March 2014 at 07:20.
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Old 13th March 2014, 19:26   #23
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Default Re: Maruti to set up 'Brand Centers' at upmarket locations across India

Brands have known to succeed without any brand centers. IF brand centees were the order of the day, even Premier Rio and Force one would have brand centers and sales would be on par with EcoSport and Fortuner. Hyundai, without anyone's collaboration have succeeded.

The Tata thingy about Indica is that many models are combined into Indica namely Vista, indicab and so on. So If i were to rename all Tata models with an Indica prefix, I could show mindboggling virtual sales numbers indica Safari + indica sumo + indica grande + indica Aria + Indica Storme + indica nano would be a super sales number for Tata.

As Aria does not sell well - here is a tactic - Rename the aria as Indica Aria or Indigo Aria and club the numbers with that of Indica and portray that Aria sells in super numbers

I personally feel that one name per model should be used to get the true sales number.

Last edited by GTO : 19th March 2014 at 14:35. Reason: Typo
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