According to the document, Maruti launched the Versa MPV in India in 2001 positioning it as a luxury vehicle at the price of two cars. However, poor initial sales of only 808 units in 2002 showed it was priced too high between 5-6 lakhs. Maruti reduced prices in 2003-2004 which boosted sales but other issues like features, appearance, and lack of economic value limited its success against competitors. Recommendations included improving features during re-launch, making the exterior more appealing, and providing better mileage with a diesel variant to increase value.

1. Maruti Versa

2. Automobile Sector in India
E > According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to
increase to 4 million by 2015.
> Global Players > resulting in price reduction
S > Price sensitive customers
> Fuel efficient cars
T > NATRIP (National Automotive Testing and R&D Infrastructure Projects)
CONTEXT

3. Automobile Sector in India
CONSUMER BEHAVIOUR
DECISION MAKING PARAMETERS:
SOCIAL
• Road
infrastructure
• Life style
ECONOMIC
• Income
• Loans
POLITICAL
• Govt budget
• Taxation

4. Automobile Sector in India
CONSUMER BEHAVIOUR
DECISION MAKING PARAMETERS:
PRODUCT &
TECHNOLOGY
• Road
infrastructure
• Life style
DEMOGRAPHIC
• Gender
• age
GEOGRAPHIC
• Population
density
PSYCHOGRAPHIC
• Interests
• Opinions

5. SEGMENTATION BY UTILITY
Family car
Premium car
Utility vehicle
In 2001, the segment MPV-Multi Purpose
Vehicle was new to the Indian customers.

6. Maruti Versa

7.  Petrol engine
 5 seater to 8 seater
 4 variants std, DX, DX2,
SDX
 1298 cc engine
 Twin AC
PRODUCT

8.  5.15 Lakhs to 6 lakhs
 Matched the price of
entry level sedans,
Maruti Esteem.
PRICE

9.  Well established
distribution channels
and show casing
 Direct sales
> exchange offers
> discount for large
families
PLACE

10.  Advertisements - ‘BIG B’s
in 2001 costing 8 crore INR
 Promoting test drives
 Road shows + Exhibitions
 Print media ads - leading
national newspapers
PROMOTION

13. PROBLEMS

14. 1. PRICE
Basic model Versa std - 5.15 Lakhs high price !
High end model Versa SDX - 6 Lakhs
• Poor initial sales 808 units/year in 2002
• Average sales of M800 then 95,924 units/year
PROBLEMS

15. Price reduced
June 2003 - - - 4 Lakhs INR
April 2004 - - - 3.27 Lakhs INR
1950
4291
0
1000
2000
3000
4000
5000
2002-03 2003-04
SALES (UNITS)

16. 2. POSITIONING
Initial Launch 2001:
“Two luxury cars at the price of one”
TV ad endorsed by Amitabh and Abhishek Bachan
PROBLEMS

18. Re Launch 2004:
" Travelling in company in a car has its own
kind of fun"

20. RECOMMENDATIONS
1. During Initial Launch

21. RECOMMENDATIONS
2. During Re-launch:
Only price change and no feature change. So
features could have been improved
3.External appearance: Not Appealing
4. Economic value to customer:
with more mileage, diesel model launch
5. First mover advantage