make connections • share ideas • be inspired India’s Largest Analytics ForumMr. Mayank PareekManaging Executive Officer - ...
make connections • share ideas • be inspired  India’s Largest Analytics Forum“Analytics for High Performance Organizations...
Flow of Presentation                              Why India Need Analytics                              Analytics @ Maruti...
Why India Need Analytics?                                                            Change           Environment         ...
Why we need Analytics Analytics?               Why India NeedEnvironment                 10                               ...
Why India Need Analytics?EnvironmentCopyright © 2011, SAS Institute Inc. All rights reserved.
Why we need Analytics Analytics?      Why India NeedEnvironment                                                     Not a ...
Why India Need Analytics?                                                            Incredible but Diverse India         ...
Why we need Analytics Analytics?      Why India NeedEnvironment                                                 Rural     ...
Why Companies Need Analytics?                                                            Change           Environment     ...
Why we need Analytics Analytics?         Why India Need   Consumers                                               Share in...
Why we need Analytics Analytics?        Why India Need  Consumers100%                                Necessities          ...
Why India Need Analytics?Consumers      Aware      Bold, Expressive      Spontaneous      Ambitions      Demanding      ex...
No Single India                    Nation of Over a Billion Dreams.                    Wide Geography , 29 States         ...
Why India Need Analytics?                                                            Change           Environment         ...
Why we need Analytics Analytics?       Why India NeedScale is Changing                                                    ...
Why Companies Need Analytics?  Scale + Competition                                      3                               19...
Analytics @ Maruti SuzukiCopyright © 2011, SAS Institute Inc. All rights reserved.
Analytics @ Maruti Suzuki                     Single View of                       CustomerCar Purchase                   ...
Analytics @ Maruti Suzuki                 Single View of                   Customer                                       ...
Analytics @ Maruti Suzuki                                                                                                 ...
Analytics @ Maruti Suzuki               Results                                             Direct Mailers were sent to   ...
Why we need Analytics         Analytics @ Maruti SuzukiDrive CampaignsBeginning of the last year•Competition launching new...
Analytics @ Maruti SuzukiBrand Positioning       Engine Capacity -1197 cc/1248 cc                                  Engine ...
Analytics @ Maruti Suzuki                 Separating wheat from chaffCustomer       Period                                ...
Analytics @ Maruti Suzuki          Exchange                                                                               ...
Analytics @ Maruti SuzukiExchange Trends                                                                            Mr T r...
Way ForwardCopyright © 2011, SAS Institute Inc. All rights reserved.
Way Forward- KnowledgeInformation                                                    Knowledge from Information           ...
Way Forward- Simple Solutions                                                            Is Analytics an expedition       ...
Way Forward- Marketing for OneCopyright © 2011, SAS Institute Inc. All rights reserved.
Way Forward- One Size Does Not Fit All eate                                                            •Every Customer is ...
Way Forward- Converting C2LC                                                            Analytics         Customers       ...
make connections • share ideas • be inspiredIndia’s Largest Analytics ForumThank YouPlease note: some of the images used a...
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Analytics for High Performance Organizations

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Mr. Pareek from Maruti Suzuki India Limited shares his views on the criticality to embrace analytics in organizational decision making and the role it plays in high performance organizations. He also discusses its need in the India subcontinent and the way forward for enterprises to propel - the usage of analytics for competitive advantage in today's dynamic market place.

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Analytics for High Performance Organizations

  1. 1. 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.
  2. 2. 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.
  3. 3. Flow of Presentation Why India Need Analytics Analytics @ Maruti Suzuki Way ForwardCopyright © 2011, SAS Institute Inc. All rights reserved.
  4. 4. Why India Need Analytics? Change Environment Consumers ScaleCopyright © 2011, SAS Institute Inc. All rights reserved.
  5. 5. 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.
  6. 6. Why India Need Analytics?EnvironmentCopyright © 2011, SAS Institute Inc. All rights reserved.
  7. 7. 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.
  8. 8. 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.
  9. 9. 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.
  10. 10. Why Companies Need Analytics? Change Environment ConsumersCopyright © 2011, SAS Institute Inc. All rights reserved.
  11. 11. 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.
  12. 12. 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.
  13. 13. 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.
  14. 14. 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.
  15. 15. Why India Need Analytics? Change Environment Consumers ScaleCopyright © 2011, SAS Institute Inc. All rights reserved.
  16. 16. 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.
  17. 17. 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.
  18. 18. Analytics @ Maruti SuzukiCopyright © 2011, SAS Institute Inc. All rights reserved.
  19. 19. Analytics @ Maruti Suzuki Single View of CustomerCar Purchase Continuous Engagement Up-Sell Copyright © 2011, SAS Institute Inc. All rights reserved.
  20. 20. 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.
  21. 21. 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.
  22. 22. Analytics @ Maruti Suzuki Results Direct Mailers were sent to 5 lakh+ prospects Foreign Holiday for young prospects 25%Copyright © 2011, SAS Institute Inc. All rights reserved.
  23. 23. 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.
  24. 24. 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.
  25. 25. 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.
  26. 26. 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.
  27. 27. 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.
  28. 28. Way ForwardCopyright © 2011, SAS Institute Inc. All rights reserved.
  29. 29. Way Forward- KnowledgeInformation Knowledge from Information “MAR-TECH” Marriage between Marketing &Technology Customer Knowledge is Competitive AdvantageCopyright © 2011, SAS Institute Inc. All rights reserved.
  30. 30. Way Forward- Simple Solutions Is Analytics an expedition to cluster formation? Advanced +Smarter Algorithms Simple Business SolutionsCopyright © 2011, SAS Institute Inc. All rights reserved.
  31. 31. Way Forward- Marketing for OneCopyright © 2011, SAS Institute Inc. All rights reserved.
  32. 32. Way Forward- One Size Does Not Fit All eate •Every Customer is Different •Laser sharp precision to understand customersCopyright © 2011, SAS Institute Inc. All rights reserved.
  33. 33. 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.
  34. 34. 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.

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