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Old 29th August 2004, 13:13   #1
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I believe a car/automobile company has to be headed by automobile lovers. So like a lightning bolt this topic struck me.
Assume you were made the CEO's of auto companies here. What would you do to improve your companies brand image, increase sales etc. Also assume you have all the powers - introducing new models, axing low sellers, budgets, marketing etc. so here goes:

1. MARUTI SUZUKI : A good company to take over. Problem areas: low sales of versa, esteem, baleno, grand vitara.

2. Hyundai India: another good company to take over. Problem areas: Pricing and positioning of Getz, Low sales of Elantra petrol, Sonata and Terracan.

3. TATA: Good in sales but quality sucks. Problem areas: poor quality of all models, Sumo victa was intended to entice private owners - thats not happening, introduction of indigo marina and poor quality of safari along with low sales. Also pathetic Dealers and after sales service etc.

4. Ford India: Increasing sales of ikon specially after introduction of NHC , pricing & positioning of Fusion , low sales of Mondeo , Maybe crdi for endavour, and whether to bring in the focus.

5. GM - opel: low sales of all models! , high maintainence, poor brand image etc. ( i see this post as the most difficult one here!), Should Vectra be re-introduced?
*GM - Chevrolet : Low sales of Forrester, Improving nos. of dealers, ramping up tavera prodn to meet demand.

6. M&M: Scorpio's refinement and handling, increasing petrol model sales.

7. Honda India: a easy job really! problem areas: keeping customer's happy even while they wait months together for the NHC, Accord V6. increasing CR-V sales. New models and positioning.

8. Toyota India: introduction of new qualis - positioning and pricing, almost zero sales of Camry.

9. FIAT India: low sales of all models, new model introductions, improving fiat brand image in customer's eyes, dealerships and After Sales service etc. Easily the second most difficult job after the opel CEO one!

10. Diamler-Chrysler India: easily the most prestigious CEO post in India! Not much to do! Merc cars sell easily since they are alone in their segments.
how about reducing the price of C class, pushing the competition from superb away...hmm.. not much to do i guess.

11. skoda India: introduction, positioning and pricing of Octy blitz, new octy, octy auto, fabia launch, fabia combi, superb sales push.



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Old 29th August 2004, 14:00   #2
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1. Replace the Esteem with the Liana asap
Improve the gear Shift in the BAleno and change the rear end , put wider rubber, add some beige color in interior to give it luxury feel.

Improve the gear shift of Wagon R too

Grand Vitara , reduce price ,and get in a CRdi with manual and Auto box options

Replace the 1000 cc in Zen with the 1.1 liter from the wagon R
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Old 29th August 2004, 14:08   #3
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2. Hyundai doing fine with the santro
Accent doing just above average.
Rear suspension needs improvement in the accent.
CRDI can be made less noisy and deliveries quicker.
Sonata can be given a CRDI and a slight improved ride (current ride Q is not so bad either)
Terracan just need to be made cheaper. OR an alternative model can be launched.

CAnnot comment much on the Elantra and Getz as of now.
If u can give a 150 hp engine in the elantra at the price of corrolla , its definately bound be get a fair share in the segment.thigh support needs to be enhanced in the elantra, and the blackening of headlights should be stopped and a new grille required for the elantra.
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Old 29th August 2004, 14:16   #4
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opel- localise vectra and launch it....
introduce new astra with a different name and lower price
give corsa a PROPER face lift... make it look sportier but while still retaining its ride..
launch a diesel version for the people down south in all its vriants
boast about its strengths and make proper comparisions in the areas its good in

fiat - relaunch palio gtx but at a cheaper price withut goodies and a higher version like what we see today....
boast about it all strenghts
make proper comparisions not like the shitty ones they have now..
and make the car appealing to the young crowd and the old...

petra - the 1,6 shoul be launched at a cheaper price without the goodies n i higher price as a sports model
a face lift wouldnot hurt
also some ads for the petrol omparing it with oters and also pull up their dealers who suk
they should also launch their panda asap and some auto options wont be bad...
if they launch a face lifted petra get the new interiors and colour it up like beige with wood or dark black with a silver centre console etc..
and also launch the jtd diesel for themselved first then give it to others

i will post for remainin later
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Old 29th August 2004, 15:02   #5
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Maruti Suzuki :
Modern products. Period.
Modern diesel engines.
1.3 L Zen with alloys, sporty suspension etc. as the new power-hatch.
Avoid confusion and cannabalisation within products in the 2 - 4 lac bracket.
Dump Esteem and bring in Liana.
Start developing local capabilities of R&D. Very cost-effective. If Tata can do an Indica, Maruti can do a lot more than changing lights to existing platforms.

Hyundai India:
Launch Getz!!
New gen of Accent.
Smaller SUV.
Diesel CRDi Sonata. *
Enter MUV market.

TATA:
Quality, quality, quality.
Outsourcing Petrol engines.
Turbo charging diesel engines with intercoolers.
Entirely new MUV.
Launch stripped Safari for 6 lacs as a stopgap till new MUV.
More professional dealerships (atleast in Metros)

Ford India:
Sporty (mechanically) variants of the Ikon.
CRDi engines for the Ikon.
Relaunching new Mondeo backed by a proper marketing campaign.
Getting the price right with the Fusion.

GM - Opel:
Shut down Opel. Focus on Chevy.

GM - Chevrolet :
Forrester is an enthusiasts car. High-end variant with Turbo engines.
Dont launch outdated Matiz. Instead bring in modern small car.
Change engine of Tavera and increase suburban and semi-urban dealer base.

M&M:
Urban Dealerships (quality and quantity).
Sort out handling of Scorpio.
Offer a full blown loaded 4x4 variant (a la Rio Designs green Scorpio).
Release non-turbo extremely base version for rural sales and economies of scale.
Develop CRDi F-A-S-T.

Honda India:
Launch Civic in ex-Vtec pricing.
Accord V6 with manual option (available in Coupe in the US).
Improve dealership quality.
After gauging market response to the Getz and Fusion, consider premium hatch.
Diesels options.

Toyota India:
Introduction of new qualis.
Reprice Camry with marketing blitz.
Improve ride quality of Corolla.
Must enter small car segment (Yaris etc.)

FIAT India:
Marketing, Marketing, Marketing.
Image, Image, Image.
Professional dealership chains.
Customer Service orientation.

Diamler-Chrysler India:
Quality & Reliability! Also a global issue instead of a local issue.

Skoda India:
Well-priced powerful petrol version of Octavia.
Modify rear seat angle for comfort. Fabia.

Thats it off the back of my head. Will edit as I think of more.

Amit, Superb topic

GTO



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Old 29th August 2004, 16:25   #6
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Maruti
1) dump the 800 and the esteem and the versa
2) get the liana hatchback to challenge the getz and fusion
3) let the alto be and offer the 1.3l zen ( as GTO says) in a limited edition
4) offer the new look baleno
5) localise the content of the vitara and offer it at a lower price

Hyundai
1) launch getz asap
2) position the santro against the alto
3) keep only 1 variant of the petrol and crdi accent( topline preferrred)
4) launch the smaller suv ( crdi )
5) elantra...hmm not quite sure what to do ...
6) sonata my heart says dump it!! but offer it on demand

Ford
1) launch the fusion priced competetively
2) get a sporty ikon ( as GTO says) something like the rally sport
3) localise the mondeo and relaunch
4) get the focus in to challenge the elantra and the octy
5) improve the diesel technology..offer better engines

the rest later
im tired of typing so neatly

cheers
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Old 29th August 2004, 16:33   #7
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Oops, we left out one:

HM - Mitsubishi

Burn the buildings down!!

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Old 29th August 2004, 16:48   #8
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Ok here goes my action plan:

1. Maruti : 1. Agree with GTO. Introduce Zen 1.3 but will continue to sell Zen 1.0.
2. Bring in Liana ASAP.
3. Keep the Esteem in the market but make it the sporty variant. Temper with the ECU and give the Esteem with about 90hp or maybe try and shove the baleno's 1.6 engine in a "limited Edition" esteem - 500 units only.
4. Bring in the Baleno with a new design specially the rear tail lamp. Also have a proper marketing campaign for it. Bring out comparo adverts of baleno v/s Ikon v/s Accent petrol.
5. Axe versa. Cant do much since indians havent taken to MPV's yet.

2. Hyundai India: Not sure what to do with low sales of Elantra petrol. It's diesel sibling is it's biggest enemy and the car is too new to reduce prices!
Bring in Diesel CRdi sonata. Strip Terracan and bring in lower priced models.
Would go slow and be a little conservative with GEtz. STill not sure if big sized and big engined hatches have a good demand in india.

3. TATA : focus on quality of all models. basic stuff like even panel gaps and proper shut lines. Can't do much about sumo in its current avtaar so would accelarate the new sumo programme. Axe safari.

4. Honda India: ramp up production of NHC and try to reduce waiting times of ACcord V6. Improve some dealerships and appoint new ones. Will push sales of NHC in semi urban and small towns.

5. Toyota India: Try and reduce price of Camry. Bring in the auto ASAP. have a proper marketing campaign for it.
Bring in new qualis ASAP. Improve corolla build quality and suspension. Tinker with the corolla ECU to give it about 140bhp and launch limited edition corolla with spoiler , bigger tyres etc.

6. M&M: improve handling and stiffen chassis of Scorpio. SUV's in india don't sell with petrol's. Will go slow on petrol scorpio. improve dealerships and After sales.

7. Skoda India: launch octy blitz with a lower price tag. almost 16 lakhs is stupid with the current octy. Also, bring in the new octy fast. New octy will replace the old one and i will not sell both side by side. try and get diesel superb.
will write more when i think of some more ideas.
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Old 29th August 2004, 17:11   #9
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I think one of the best positions would be as CEO Fiat india. This company has the most suited products for india and they are making a blunder with their cars. Even more shocking is that they can easily turn around the company here. so here goes my strategy for fiat india:

1. People aren't sure of Fiat india's committment of staying in India. GET VOCAL!! Be Seen all over the place. Shout from hoardings that Fiat is no. 3 in J.D.Power SSI this year. IF this doesn't tell the car market about a companies committment then what does? unfortunately, subtleity doesn't work in India so SHOUT!
2. Organise a Palio NV mileage rally. this will tell future customers that the company is now sure of the palio's mileage and are backing the car whole heartedly.
3. Marketing , marketing, marketing and marketing. 2 strategies here which i had spoken about on indiacar.com too.
1. Watch your car being manufactured: customer goes to the dealer, gets invited to fiat plant to watch the palio/petra getting manufactured. what does this show? company is transparent and confident of it's quality. let him see first hand the stringent quality controls that a palio/petra goes thru. give him the engine no and VIN and tell him he will get the same car he saw being manufactured from whichever dealer he chooses.
2. watch ur car being serviced: get the customer into the service area. don't know why all service centers have the board "customers are not allowed into the service area". ppl aren't sure of good fiat after sales service. let him come in. tell the engineers to be with the owner and tell him exactly what is being done. for example : the engine oil is now being changed, the air cleaner is being replaced/cleaned etc. this way customers will be sure that when the bill says rs.xxx for engine oil change, the oil was actually changed. imaging the goodwill it will generate.
3. Tell people about fiat legacy. I will bring in "the great fiat roadshow" courtsey ford! bring in international models like panda, stilo, punto, alfa romeo 147/156/GT, Ferrari too! even the F2003 F1 ferrari! Maserati and lancia models can be brought in during the 2005 fiat roadshow!
4. Invite Hormazd Sorabjee and other auto experts to italy and let them drive the panda, stilo JTD and other brilliant alfa romeo cars.
5. take the first plane to turin and convince bosses there to give green signal to panda and idea. remember, one high selling model has a positive effect on sales of other models. if the panda takes off so will palio/petra.
6. Convince the turin bosses not to give JTD to MUL first. Let us bring in palio , panda JTD first in the market.
7. increase dealerships specially in south.
8. kick the dealers backsides. give them more leeway to give freebies and discounts on products.
9. Re introduce palio 1.6 GTX with a good marketing campaign. Had already emailed fiat with a advert. for palio 1.6 which i duno what they doing with. bring out full page adverts in papers. on left side a pic of Rajdhani Express with the words top speed 140kmph under the pic. Next to it the pic of Palio 1.6 with the words top speed 185kmph. same way, a pic of a cheetah , underneath top speed 120kmph. Next to it palio 1.6- top speed 185kmph. Thats it. don't say anything. just these pics with the words FIAT in block bold letter below and addresses of dealers and a toll free number for booking test drives printed.
ok i m exhausted, will get back with strategies for other companies soon.
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Old 29th August 2004, 18:20   #10
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Irrelevant of what companyi join as the CEO, the first thing I would do is:

1.> Offer all models with sporty variants.
2.> Offer a huge range of accessories at pretty reasonable prices.
3.> Sporty colors for all models (i wonder why D-seg cars arent offered in red, yellow etc etc)

Company-wise strategies will come later
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Old 30th August 2004, 17:51   #11
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Lol, if the real CEO's took these suggestions, they would be fired!

As a site full of enthusiasts, we would love these to be incorporated, but realistically, it is just not feasable.

Power does not sell in India. Period. If a car has more power than another one, people will see that as a bonus, but it will never be the main point of purchase for 90% of the car buying public (that does not include you or me).

The number one reason for buying a particular car will always be price, followed by FE and service backup. Power comes into play in the higher segments. Again, if you take the old City as an example, most of the Vtecs etc were just bought because it was the most expensive - hence had the highest snob value- of all the cars there, and the owners sat in the back and were driven around town.

SUV's like the Safari and more so the Scorpio are bought for their looks and ability to haul people. The 4x4 versions never ever sold and are only available on order. So MM launching a top-of-the-line Scorpio with 4WD does not make sense.

However, cars like the Zen 1.3 are completely doable! The components are there, all thats missing is the Maruti's will to do it! And relatively speaking, not many of them would sell.

As much as I would love to have sporty variants available, the sad part is, if you or me were really the CEO of any company, our hands would be tied. I feel the luckiest CEO and the one with the easiest job is the dude heading DCIL. Benz have almost no competition here, unbeatable brand image and their products will sell at any price they lay down! So really, no pressure on him at all!

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Old 31st August 2004, 12:42   #12
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Quote:
Originally Posted by [b
Quote[/b] ]
Lol, if the real CEO's took these suggestions, they would be fired!
Rtech, the suggestion of adding more powerful variants form only a small percentile of some Team-BHPians suggestions. The rest, even analysts would agree, is what the specific car companies really need to do. Take Fiats dealerships and marketing, Marutis outdated products, positioning of the Camry or GM's handling of the Opel brand. The truth is quite the opposite of what you stated...If the CEO's dont perform on these counts, they will be fired.

Contrary to what most people think, power does sell well in India...if marketed correctly. And its not limited to only the D segment. How else do you explain the Honda 1.5 outselling the 1.3 (both older gen) by more than 7 times? Or the Esteem versus the 1000? Or the Ford Ikon 1.6 against the 1.3? Some were underpowered and some were outdated (push rods) but "keeping up with the Jones'" is a very popular sentiment in India. Do you know that the one of the many reasons the Matiz did not take off was because its 800cc engine was perceived as "puny" compared to the 1.0 liter option in the Santro? And that Mahindra has still not launched the non-turbo variant of its Scorpio even though its an extremely simple job for them, and one which would help lower the price immensely.

The Zen 1.3 agreed would not sell much. But the move is not for profits from sales at all. Think of it as a marketing exercise, to bring the enthusiasm back into Maruti. Would any of us car guys ever have cared about the Palio if it wernt for that 1.6 liter engine? Its plain image.

Quote:
Originally Posted by [b
Quote[/b] ]The number one reason for buying a particular car will always be price, followed by FE and service backup.
Theres another important component to this equation - SIZE. The reason small cars sell so much in India aint because people want a small car. They want a cheap car. And more car per car. Example Indica.

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Old 31st August 2004, 12:48   #13
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Quote:
Originally Posted by [b
Quote[/b] (rtech @ Aug. 30 2004,16:21)]Lol, if the real CEO's took these suggestions, they would be fired!.... .... Again, if you take the old City as an example, most of the Vtecs etc were just bought because it was the most expensive.....and the owners sat in the back and were driven around town.

I feel the luckiest CEO and the one with the easiest job is the dude heading DCIL.....So really, no pressure on him at all!

Rt
true most of these suggestions wont work. the auto industry (in India, US, Europe, Japan etc.) is one of THE HARDEST to work in. It has one of the longest reurns on capital as well as one of the highest risk/return ratios.

true most Vtech and higher powered sedans are bought by guys who are chauffered. Count me as one of them. the object here is (a) if you can afford a rs. 8L+car you can afford Rs. 60-80K per year to be driven around (b) most driving is done in trafffic and what pleasure that gives anyone beats me.

Lastly the luckiest CEO is not DCIL but maybe someone at Daewoo, GM or other sinking ship. (a) CEOs love a challenge (b) you make a name turning around Chrysler, Nissan etc... © if you screw up a company that is going smoothly....*you guys know the rest*
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Old 31st August 2004, 15:04   #14
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Hey GTO, I wasn't refering to all the suggestions, although it may have appeared so. But...

Quote:
Originally Posted by [b
Quote[/b] ]Contrary to what most people think, power does sell well in India...if marketed correctly. And its not limited to only the D segment. How else do you explain the Honda 1.5 outselling the 1.3 (both older gen) by more than 7 times? Or the Esteem versus the 1000? Or the Ford Ikon 1.6 against the 1.3?
Well, the 1.5 Honda outselling the 1.3 is exactly what I mentioned. Its to do mainly with the ego thing. The guy who lives in the building opposite mine bought a 1.5, not because of the extra 10 Hp, as I doubt he even knows what Hp stands for, but because it was MORE expensive than the 1.3, hence carried a higher snob value! hehe...i remember telling him that he could have bought the 1.3 and stuck on a 1.5 badge and saved a load of money!!

Same with the Esteem. Remember, when it was launched it was really the only car in that class and Maruti did not plan on continuing with the 1000cc engine anyways. Hence the departure of the 1000 was part of Maruit's plan. *

The Ikon, well, it's first 1.3 engine really developed a bad name for its harshness and bad FE. In India, thats enough to make or break a car. I think the new 1.3 is selling much better.

Quote:
Originally Posted by [b
Quote[/b] ]Do you know that the one of the many reasons the Matiz did not take off was because its 800cc engine was perceived as "puny" compared to the 1.0 liter option in the Santro?
If I remember correctly, the Matiz put out close to the same power of the 1L 4-cyl Santro engine. Where it really lost out was that it had a 3 cyl engine, which Hyundai made a point to tell the public. That, and the uncertain future of Daewoo at the time did it for the MAtiz.

What I am saying though is that India has not reached the stage where power is on the top of the list for most of the buying public. Look at the case of the Fiat Petra. Now the 100Hp petrol engine is a whole lot LESS than the underpowered diesel engined Petra. I think we can all agree that the diesel will sell better as it is cheaper to run. So here we have a case of a faster more powerful car costing LESS than a slower noisier car, but yet the diesel will outsell the petrol. Same goes for the Skoda...nobody really buys the more powerful petrol Octi even though it is cheaper (with the discounts offered).

While a powerful car makes for good press coverage and magazine reports and we all agree they would raise the companies image (not a sure bet though as we see from Fiat), it is not possible for auto manufacturers to seriously invest in more powerful engines as options, as the costs are just too high. Taxes on a 1.3 Zen would cause its price to increase to a point where it just does not make sense to buy. Would you buy a 1.3 Zen for 6 lakhs? no way. The Govt. taxes auto manufacturers depending on the power/capacity of the engines going into the cars as well. This i got right from the horse's mouth so to speak (someone very high up in Maruti).

Quote:
Originally Posted by [b
Quote[/b] ]Theres another important component to this equation - SIZE.
yup, I missed this one out. Indian's do want as big a car as they can get for as less a price as possible.

The biggest area where a CEO can make a difference to the fortunes of a car company (in India especially) is ensuring that the customer is taken care off...pampered and made to feel like a king. If they can do this, they are a winner even if their actual product is only average.

Rt



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Old 31st August 2004, 18:53   #15
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Quote:
Originally Posted by [b
Quote[/b] ]
If I remember correctly, the Matiz put out close to the same power of the 1L 4-cyl Santro engine. Where it really lost out was that it had a 3 cyl engine, which Hyundai made a point to tell the public. That, and the uncertain future of Daewoo at the time did it for the MAtiz.
Also that the public realised it wasnt actually making 52 bhp. Its only after some recalibration and some changes later in its life that it actually turned out a true 52 bhp.



Quote:
Originally Posted by [b
Quote[/b] ]Look at the case of the Fiat Petra. Now the 100Hp petrol engine is a whole lot LESS than the underpowered diesel engined Petra. I think we can all agree that the diesel will sell better as it is cheaper to run. So here we have a case of a faster more powerful car costing LESS than a slower noisier car, but yet the diesel will outsell the petrol. Same goes for the Skoda...nobody really buys the more powerful petrol Octi even though it is cheaper (with the discounts offered).
Simple petrol versus diesel engine thing. Prominent at most places in the world where diesel fuel is cheaper. Including many parts of Europe.

Quote:
Originally Posted by [b
Quote[/b] ]Taxes on a 1.3 Zen would cause its price to increase to a point where it just does not make sense to buy. Would you buy a 1.3 Zen for 6 lakhs? no way. The Govt. taxes auto manufacturers depending on the power/capacity of the engines going into the cars as well. This i got right from the horse's mouth so to speak (someone very high up in Maruti).
Taxes as a percentage are exactly the same on a 1000cc car and a 1300cc car.

Quote:
Originally Posted by [b
Quote[/b] ]The biggest area where a CEO can make a difference to the fortunes of a car company (in India especially) is ensuring that the customer is taken care off...pampered and made to feel like a king. If they can do this, they are a winner even if their actual product is only average.


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