Q2:Discuss the implications of MUL’s premium compact car ‘swift’ priced at Rs. 3,87,000 for its competitors. Also, given that its compact car, wagon R, is available in the same price range, discuss the steps MUL must take to prevent the cannibalization of its sales. A:
Swift was launched with price competitive strategy
Direct competition with Hyundai Getz (Rs. 4,50,000)
As both brands are known for their value price offering Swift
definitely has an edge over its direct competitor Getz due to: - Brand image & strong service centre Steps to prevent cannibalization:
Focus on advertising based on benefits to differentiate themselves in the market.
Swift was a hatchback model so MUL should position swift as an next value product in between compact and mid size car
Q3: MUL prides itself in providing the lowest priced car(M-800) to its customer, Tata motors intends to launch the Rs. 1,00,000 car by 2008. What, in, your opinion, would be the implementation of this launch for MUL?
If the car has contemporary design and Euro 4 norms it will the only car available in mini car segment as Maruti has euro 3 norms
With this Tata will penetrate towards the lower segment of value pyramid which is providing maximum market share to Maruti
Steps to counter Nano effect: New contemporary design should be launched Reduce the engine capacity to make it price effective and milegeable
Q4: Refering to the availability of pre-owned cars, an industry analyst said, “If the customer get a santro or wagon R for the prices of an 800, why would he prefer the small car?” In light of this statement, how can MUL differentiate its promotional campaigns between its new and pre-owned/used car market? A:
Maruti should launch advertising campaign to arouse feeling in you or reminding your dreams of a new car