Maruti Suzuki which has a behaviour traveling pocket on the Indian rider auto marketplace is desperate for a part inwards the premium auto market. While the companionship has huge Pb inwards the mid too small-scale auto segment, it too so far has non been able to interruption into the premium segment ( 10 lakh above). Maruti had tried before with its Grand Vitara, Baleno, too latest Kizashi but failed to replicate the success of its affordable auto range.
Maruti Suzuki is instantly trying to larn through the channel road to tap this segment. According to reports, the companionship is opening a premium channel named ( internally) equally Nexa. Maruti plans to launch its premium cars beginning with S-Cross through this channel. All cars which are inwards the premium segment volition henceforth available solely through Nexa.
Further , Maruti believes that at that topographic point is a perception that the construct " Maruti Suzuki" is really much linked to " affordability" too thus it volition non live on able to sell a premium car. Hence all the novel premium cars volition instantly incorporate solely Suzuki mention .
This is an interesting flush because the companionship is instantly finding its greatest forcefulness ( construct ) equally a liability. So likely S-cross volition live on Suzuki S-cross too the companionship believes that Indian consumers volition reckon it a premium construct because at that topographic point is no Maruti tag on it !!
What may live on pain Maruti Suzuki administration would live on that premium brands similar Honda are instantly making huge volumes past times down-ward stretching ( launching products at lower price) too threatening merely about brands of Maruti.
Maruti is instantly trying the play a joke on of Japanese brands non bad the premium American auto market. They accept done through creating novel brands similar Lexus, Accura,Infinity which was positioned away from the volume marketplace brands.
It is truthful that an affordable construct ( perception) would detect it hard to motion upwards the value chain using the same construct name. So it makes feel when Maruti wants its premium brands to live on kept away from the volume marketplace brands. Here the supposition is that inwards Maruti Suzuki construct name, Maruti business office is creating the perception too past times removing the Maruti part, the affordable tag tin live on eliminated. I wonder whether that supposition holds true. Unlike Honda, Suzuki does non accept that premium ikon inwards the Indian market. Suzuki construct inwards the 2 wheeler segment is non inwards the best cast too is non inwards the premium segment either. Hence merely past times launching a premium auto sans Maruti mention is non going to practice the trick. As auto-expert Hormazd Sorabjee points out, the final result is to a greater extent than of pattern that positioning . None of the premium offering of Maruti had the wow constituent expected out of a premium offering.
How ever, the novel channel strategy would practice goodness the premium force because the premium construct is non sold amongst its inexpensive companions too meliorate service tin live on delivered to the premium customers. The downside is that at that topographic point is a possibility of channel conflict because existing dealers volition non live on able to sell high-margin cars using their electrical flow infrastructure.
According to reports, Maruti Suzuki has created a course of didactics organizational construction for the premium category. It would live on an interesting flush to lookout how Maruti volition live on able to interruption into the premium segment with the novel strategy.
