Analytics for High Performance Organizations

make connections • share ideas • be inspired India’s Largest Analytics ForumMr. Mayank PareekManaging Executive Officer - Marketing & SalesMaruti Suzuki India Limited Copyright © 2011, SAS Institute Inc. All rights reserved.

make connections • share ideas • be inspired India’s Largest Analytics Forum“Analytics for High Performance Organizations” Mayank Pareek Managing Executive Officer (Marketing & Sales) Maruti Suzuki India Limited Copyright © 2011, SAS Institute Inc. All rights reserved.

Why we need Analytics Analytics? Why India NeedEnvironment 10 Growth Story of India 8.5 8 7.3GDP Growth (%) 5.6 5.7 6 4 3.5 2 0 1950s-70s 1980s 1990s 2000s 2004-10 Fastest growing economy Copyright © 2011, SAS Institute Inc. All rights reserved.

Why we need Analytics Analytics? Why India NeedEnvironment Not a homogenous Market Income Population Incom (US Income Population e class PPP) Million % Country (US PPP) (Million) Highest 46212 8 0.7 Singapore 48520 5 High 30050 16 1 Australia 33400 21 Upper 7522 73 6 Thailand 7880 64 Middle Lower 3046 286 25 Indonesia 3580 226 Middle Lowest 1081 748 67 Sub-Saharan Africa 1870 800Copyright © 2011, SAS Institute Inc. All rights reserved.

Why India Need Analytics? Incredible but Diverse India States- 29 States & 7 Union Territories Population – 1.21 Billion Total Languages – Over 120Copyright © 2011, SAS Institute Inc. All rights reserved.

Why we need Analytics Analytics? Why India NeedEnvironment Rural Urban 70% of the Population 30% of the population Rising farm and non farm Top 10 cities make up incomes around 10% of the population but generate 30% of income Policy measures like NREGA reducing unemployment Increase in migration Villages->Towns->CitiesCopyright © 2011, SAS Institute Inc. All rights reserved.

Why we need Analytics Analytics? Why India Need Consumers Share in world population, Population below 25 years, Countries 2010 (%) 2010 (%)Africa 15.0 60.5India 17.6 50.1China 19.6 36.8USA 4.6 34.3Europe 10.6 28.1Japan 1.8 23.1 Young Consumers need young and new products Copyright © 2011, SAS Institute Inc. All rights reserved.

Why we need Analytics Analytics? Why India Need Consumers100% Necessities Discretionary Savings As incomes rises Discretionary75% Spending goes up50%25% 0% 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2009-10 Copyright © 2011, SAS Institute Inc. All rights reserved.

Why India Need Analytics?Consumers Aware Bold, Expressive Spontaneous Ambitions Demanding experience Indulgent Choice seeker Brand Conscious Empowered Attention Seeking individualityCopyright © 2011, SAS Institute Inc. All rights reserved.

No Single India Nation of Over a Billion Dreams. Wide Geography , 29 States 70 % of the population in Rural India. Social Transition, Urbanization .Copyright © 2011, SAS Institute Inc. All rights reserved.

Why we need Analytics Analytics? Why India NeedScale is Changing In 2010-11 Maruti Sales Enquires :55 Million 1200000 1000000 Sold : 1.3 Million 800000 Insurance :2 Million 600000 400000 Vehicles Serviced : 200000 1 Million 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Entire Scale of operation is changing for Maruti & Industry Copyright © 2011, SAS Institute Inc. All rights reserved.

Why Companies Need Analytics? Scale + Competition 3 19 Number of Players in 1980’s Number of Players in 2011 5 107 Number(~) of models in 1980’s Number of models in 2011Copyright © 2011, SAS Institute Inc. All rights reserved.

Analytics @ Maruti Suzuki Single View of Customer Sales- Alto 01st Nov 2005 Finance: ICICI True value Bank Name: Mr R K Gupta Mob :9832626333 7.9 Million Add: B-10/1234 , Vasant Kunj City : New Delhi Service 10 Tiimes, Avg Pin Code : 110070 Extended Warranty Nov Customers DOB : 21st Feb 1967 2005 Spent 35000 Sex : Male Marital Status : Married Corporate Auto Card Bharti Points: 2443 InsuranceCopyright © 2011, SAS Institute Inc. All rights reserved.

Analytics @ Maruti Suzuki First Time Additional ReplacementCustomer Retention 29% 44% Vasudha Goswami Delhi 27% Exchange M800 Purchase - 1998 Customer tendency to Alto Purchase - 2006 upgrade to higher models, Additional Next : May be Swift Exchange A-Star Purchase - 2010 WagonR Purchase - 2006Copyright © 2011, SAS Institute Inc. All rights reserved.

Why we need Analytics Analytics @ Maruti SuzukiDrive CampaignsBeginning of the last year•Competition launching new cars•Price war through price cuts•Increasing fuel prices Maruti decided to play on mileage Top Reason To buy Model A Model B Model C Model D Style - Looks 2 3 3 2 Mileage 1 1 2 1 Comfort 3 2 1 3 Copyright © 2011, SAS Institute Inc. All rights reserved.

Analytics @ Maruti SuzukiBrand Positioning Engine Capacity -1197 cc/1248 cc Engine Capacity - 1197 cc/1248 cc Platform- Same Platform- Same Average Age 39.9 Average Age 32 Average Monthly Income Rs 56,000 Average Monthly Income Rs 60,000 Target Customer: Family Car Target Customer: Urban Buyer Price :4.46 lacs Ex Sh Delhi Vxi Price :4.82 lacs Ex Sh Delhi Vxi No Cannibalization Copyright © 2011, SAS Institute Inc. All rights reserved.

Analytics @ Maruti Suzuki Separating wheat from chaffCustomer Period Vehicle Purchased Qty 1997 Omni 17 1998 M800 28Mahesh Agarwal 1999 ZEN 10 2000 WAGON R 2Customer Period Vehicle Purchased Qty 1997 Omni 3Renu Agarwal 2001 M800 7 Actually an SMECustomer Period Vehicle Purchased Qty not anKiran Agarwal 2011 Omni 1 IndividualCustomer Period Vehicle Purchased Qty customerSuman Agarwal 2011 M800 1 Copyright © 2011, SAS Institute Inc. All rights reserved.

Analytics @ Maruti Suzuki Exchange Average Replacement Cycle is 5 years Data set of workshop Result :Sold 2800 2800 Vehicles customers exchanged with vehicles Vehicles more than 9 year old Exchange Penetration :23% Based on data Filters & Tele calling 1,71,000 14,000 Prospects vehicles evaluatedData set of workshop customers with more than 9 year old vehicles contacted. Copyright © 2011, SAS Institute Inc. All rights reserved.

Analytics @ Maruti SuzukiExchange Trends Mr T raghunathanMr Himanshu Porecha City : ChennaiCity : Jamnagar Age : 39Age : 47 Occupation : ServiceOccupation : Service•Kilometers Run : 52000 KM •Kilometers Run : 35000 KM•Services : 16 times •Services : 11 times•Insurance Claims : 4 •Insurance Claims : 1Exchanged with Swift Exchange with SwiftNov 2011 Nov 2011 Non Metro Customer Metro Customer 6 Yrs 3 Yrs 10 months Non Metro customer replacement cycle is long vis-à-vis metro customer Copyright © 2011, SAS Institute Inc. All rights reserved.

Way Forward- KnowledgeInformation Knowledge from Information “MAR-TECH” Marriage between Marketing &Technology Customer Knowledge is Competitive AdvantageCopyright © 2011, SAS Institute Inc. All rights reserved.

Way Forward- Converting C2LC Analytics Customers Loyal Customers Loyalty Program is more than a card Create exit barriers for customers Prevent customer flight- Emotional engagement with customersCopyright © 2011, SAS Institute Inc. All rights reserved.

make connections • share ideas • be inspiredIndia’s Largest Analytics ForumThank YouPlease note: some of the images used are copyright property and should not be used further Copyright © 2010, SAS Institute Inc. All rights reserved.

Analytics for High Performance Organizations

by SAS Business Analytics India on Feb 17, 2012

Accessibility

Categories

Upload Details

Usage Rights

Statistics

Analytics for High Performance Organizations Presentation Transcript