How a company segments the market says a lot about its management's belief in marketing-led change. India's top car maker Maruti Suzuki has managed to seek loyal customers in the premium segment. Case in point, Maruti Suzuki India's strategy for NEXA. Yes, hiccups are to be expected and are nothing to be ashamed of. The S-Cross's failure to launch will be remembered but the simple market diversification strategy is one to be lauded. Mr Randhir Singh Kalsi, Maruti's Executive Director of Marketing & Sales responsible for NEXA launch said in July 2015; we expect about 100 NEXA showrooms across India over the next 6-8 months. The strategy to ensure that the NEXA premium retailing network evolves as a model to offer updated merchandise to customers and grow existing relationships while ensuring higher than average levels of customer experience is starting to show results. I recall many opined management executives and business owners; that the NEXA model is wrong to give away key dealerships to existing dealers of Maruti Suzuki across Metros and Tier-II cities. They could not have be more wrong. Maruti has gone strength-to-strength with subsequent launches of the S-Cross, Baleno and Ignis exclusively on the NEXA platform. While moving the older Ciaz to NEXA was not seen as a good decision; it is starting to seem like a promising move that may paying dividends in the future. The folk at Maruti Suzuki started simple, using the feedback provided by existing customers and market surveys they took the bold step to target and satisfy a finicky segment of buyers spoilt for choice by European and American automotive brands. A segment that prefers driving experience, attention to detail and ownership experience over pricing, spare & service costs; was not going to be an easy win for brand known for price leadership and frugal ownership cost. Yet, the premium segment strategy has struck the right notes, WRT improving service quality across a service network present in every nook and corner of India. I recently made an emergency stop at a Maruti Suzuki a dealership and service center to change wiper blades. The folk at Mandovi Motors on NH 48 in Uppinangadi, Karnataka were glistening with promise and customer service was better than I've received, ever. Even when the car I was driving did not wear a familiar logo on the bonnet. If willingness to listen and providing appropriate solution to the problem doesn't count as customer service, I'm not sure what does?
When launching a new channel, product or service aimed at a segment you've failed to convince before; brands must be willing to invest existing profitability to aid its growth and sustain by improving customer experience across the board. The goal to achieve 20 million in vehicle sales by 2020 doesn't seem distant nor unimaginative. A simple lesson for business owners and leaders concerned with strategy is to understand and realize that segmentation goes beyond managing brand perception and is all about delivering quality and embracing organizational change. A recent news snippet caught my eye; Maruti Baleno drives past 200,000 sales milestone in India. Bravo NEXA Experience. |
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