Maruti tweaks launch strategy to score over competition

Cars are no longer only about ‘kitna deti hai?’ (fuel efficiency). So, market leader Maruti Suzuki changed its launch strategy early this year.

Showcasing a vehicle weeks ahead of the launch and without talking about pricing and mileage is getting important, to communicate in detail the evolving features and design to the target segment, in a crowded market.

In December, Maruti showcased its to-be-launched car, Ignis, to talk at length about its positioning, design, safety and entertainment features, engine type and the like. The details on price and efficiency were left to be discussed at the launch event, a month later.

Companies usually open bookings for a car a couple of weeks before the launch. However, there is limited information and buzz in the market about a car when bookings open. Price, the key deciding factor is also not known. Showcasing the car and communicating about it before opening the booking helps in plugging most gaps and leaves only one blank information – price — for those looking to book. A preview before launch also helps in building buyer appetite and takes away volumes from competition, is the contention.

“Marketing is changing day by day. It used to be a linear process. You identified the model, went for the launch and declared the price to sell in the market. Now, our approach is multi-dimensional. Before the launch, you need to show it to select people for feedback, go to digital media and create the buzz. This builds a sense of anticipation among customers about the model. People still ask for mileage but it is not the only consideration now,” said R S Kalsi, executive director (marketing and sales) at Maruti Suzuki.

The company, with 47 per cent share in the domestic market, has repeated the Ignis strategy for DZire, the full-model change of its best selling compact sedan, the Swift DZire. Last week, the company did a preview event for the DZire, seeking to create a buzz while communicating about its features and design. The launch, when the price will be announced, is on May 16. Experts say the agenda of a launch event gets largely hijacked by the price announcement and comparison with other models in the segment. Therefore, it makes sense to communicate about the style, features and positioning before the price launch.